>> the city where they make a lot of this stuff, they have a major shutdown in fact they have rioting now because people are running out of food. that's a totally different issue. bigger issue than the iphone, christmas is terrible. steve kovach thank you, ebenezer. that's great >> i prefer grinch >> god bless us, every one that does it for t exchange. er lunch starts right now. welcome, everyone to "power lunch," where we charge a lot less than a ticket to a taylor swift concert. i'm tyler mathisen along with contessa brewer the fed says the inflation fight is far from over the benchmark rate may have to go a lot higher than previously thought. is the risk of recession rising, and is it priced into the market plus a bargain hunters holiday, or will consumers pay up for high end areas. we'll see which stocks could come out winners

contessa >> tyler, stocks are way off the lows of the session. the dow right now in the green just barely. but it's hanging on in there, where it had been down 314 points at the low. the s&p is off a quarter of a percentage point and the nasdaq off a ten of percentage point. the yield on the 2-year trading about 4 had .46% and oil prices down more than 4%, closing in on $80 a barrel, $82.06 right now, down more than 30% from the june highs. >> contessa, thank you very much the rate hikes are having limited impact so far. bullard spooked the markets today where he suggested the worst case scenario where the federate hikes to as high as -- sit down for this -- 7%. rising rates are slamming the housing markets. builders starting to pull back

earnings season, we're hearing all about inflation. let's get into all that right now. steve, we begin with you james bullard, once again, he's not afraid to speak his mind >> no, he's not. and he did say that he warned today that his models that he's been using show the fed funds rate could rise as high as 7% to bring down inflation pour a bit of cold water, and he said the current funds rate of 3.75 to 4% is not, quote, sufficiently restrictive to cool the economy and bring down inflation. here's the chart he brought out. in his model, bullard said the fed fed rate could stop seemed to like somewhere in the middle of the conversation he had with reporters later. comments lead to higher treasury yields in markets and the rise in the estimate for the peak funds rate in june 2023 above

5% you can see once again we'll see where new boss and fed president susan collins stands on all this. i'm going to talk to her tomorrow on "squawk on the street" at 10:00 a.m contessa, back to you. >> thank you for that, steve bullard says rates may have to rise further from here, but where they are right now is enough to slow down the housing market let's go to diana oleg for that piece of the story >> you have to look no further than the -- single family housing starts and building permits. they're now down to the lowest level since may of 2020 when everything ground to a halt at the start of the pandemic. and it's of course because of rising mortgage rates, not to mention inflation and home prices mortgage rates dropped back last week on that better than expected cpi number. but they're pushing back higher this week, and that has builders having to drop prices and push incentives and there was a big jump in those incentives just this month. all of that has the home builder

stocks having their worst week in a while, since september in fact the itb is down now about 3 1/2 percent on the day not a great picture for the stocks, tyler. >> diana, thanks very much if you want to know how the economy is doing, just check out earnings, why don't you, the reports to see what big companies are saying mike santelli has been following all of that for us amidst all of this, amidst rising rates, high inflation, midterm election, we've got a lot of earnings reports. tell us where we stand, mike >> well, tyler, at the very broadest level, the top line in the economy is still growing pretty robustly. in fact, 10%, 11% sales growth across the s&p 500 shows you that 9% growth just among retailers it does tell you that revenues are not scarce right now the problem is a lot of that reflects inflation, not real growth a lot of the commentary, especially from consumer goods and retail ceos are that consumers might be getting at

their limits, at their ability to tolerate and absorb those price increases. so, they're not betting on too many more to come. therefore the focus turns to cost cutting, preserving margins, working down inventory, and preparing, perhaps, for the economic slowdown that is broadly anticipated but isn't really showing up just yet in the overall numbers aside from some areas in housing. services over goods has been a theme as well, and capital spending has really remained pretty resilient and therefore industrials have done fairly well people feel as if you have to invest to sort of make things domestically as the supply chains have been tested. >> let me turn back to steve leishman with a question how out of the main stream, steve, is president bullard when he says 7, 7-plus percent, maybe the terminal rate for fed funds? my sense is that most of the consensus on the fed

what do they call it, the modell outlook, the most likely outlook, that is true. most fed officials are in that 4.6%, i think, and by the way, let's be clear powell in the last fed press conference said that the peak funds rate is higher than estimated in september we'll get another look in december at where they stand here's the thing bullard wasn't giving you that modal outlook, he was giving you a range saying if i put these assumptions in, i get 5%, if i do another one, i get 7% i don't think he's saying it's going to be 7% i think he's saying look out, this is possibility. >> good to clear that up because i would have walked away thinking he's saying it's going to 7%, but in truth he's saying that would be the upper bound of a range of possibilities >> exactly

>> so if that's a range and that's a worst case scenario, mike, how much of this is the market factoring in? >> nor would you expect it to go to the furthest extent of where short rates might go the market has roughly priced in that kind of broad consensus outlook that the fed has conveyed to us the fed funds rate getting up toward 5%. really what's weighing on equity sentiment is the fact that longer term treasury yields are much lower than the short term ones what that reflects to some degree is the rising perceived risk that the fed will have to engineer a slowdown, a recession, something that will not only undercut inflation but erode the growth outlook i don't think necessarily the market's adjustment has to happen in terms of where short rates go as we can foresee them over the next several months it's what is the effect of that policy beyond that point >> diana, where do rising rates

pinch the most in terms of home buyers >> well, they pinch the most in affordability, of course, because home prices were already inflated, up 41% just since the start of the pandemic. that is ten times the historical home appreciation rate so when you have prices up for the homes that high, even as they start to come back a little bit and they're coming back very slowly, it's that higher interest rate because everybody buys a home to look at the monthly payment. you don't buy the price, you buy the payment. with that monthly payment significantly higher and adding to costs, that's what's causing buyers to pull back. now as we see prices start to come down, you would think buyers say okay, i'm going to get in there, but there's a fear, if i buy now and prices come down either further, then i'm losing money immediately it's like walking off a car lot, a new car lot and your car suddenly is worth less that's not supposed to happen with houses. that's another fear that's keeping buyers on the sidelines. >> i'm curious, though, and you

have been looking at the real estate market for a long time, diana. you know, i remember my parents paying a ridiculously high mortgage rate that i never encounters when it came time for me to buy a home, i was looking at rates around 5% >> right that's what most people in their memories have. that 3% range over the last two years or 5% when you bought. but look, i bought when it was 9%, but home prices are not that high >> we didn't see a frozing housing market for decades people got used to the idea that you were going to pay a higher mortgage interest rate whatever the house cost >> because the monthly payment was lower. and that's even if the mortgage rate was higher, home prices were not so high that that monthly rate was not so high back in the 1980s when mortgage rates jumped to 18%, you saw the housing market freeze. over the past, you were able to do with 5, 6, 7, even 9% mortgage rates because the price

of a home was lower. >> now the rate is, what, 6.6%, did i see? >> over 7%, now at 6.65% it did drop wack last week, but that's more than twice what we were at the start of this year >> diana, thank you for that, steve, mike, really appreciate the conversation what does this say about the state of the economy and the risk of recession? let's bring in bill lee from the milken institute for more. how fast, how high, and for how long do these rates keep rising? >> contessa, those the main questions chair powell wants to focus on where is the rate going and how long are we going to have to keep it up there the message from the fed has always been since jackson hole the tune is we're bringing inflation back to 2%, and every speaker we have had so far has had a different variation, different tempo, but they're all saying the same thing. don't expect a pause until we see inflation come back, and that may require that the unployment rate goes up to beyond 5%.

so that's the kind o unemployment hit that the fed is trying to prevent by being credible and having people believe they're serious about this if people are serious about that, they should stop spending and rather than being laid off to stop spending, they should anticipate the fed is going to be serious and keep conditions very tight until we see 2% inflation. >> that's hard advice for all of america to say, hey, if you don't stop your spending, stop going to las vegas, stop rolling the dice, that you're going to start seeing these rates go even higher how much of this is also pressure on the fed, bill, because they see what happenwise the markets? every time there's an indication inflation is declining just a bit or softening just a bit or the rate is coming down just a hint, you see the market rallying is there sort of a parent's prerogative to say, no, i told you i was going do this and i'm going to stick with my word.

>> that's a problem with modern policy the fed has become much more transparent and the market refuses to believe the fed will take on the cost of 5% unemployment rate. so every time there's a turn in the numbers or we get a good cpi number the markets are complaining, oh, my god, no way the fed is raising rates and they're going to pivot and that pivot talk has made the fed policy making so much harder in some ways i think president bullard has really put a high note out there and said look, if you don't cut this out and believe us in our main tune of bringing back 2% inflation, we may have to raise rates as high as 7%. i think that's the message that is supposed to shock the markets into believing we're serious, we're not going to pivot until we see 2%. >> do you wish the fed and its policymakers would talk less >> well, i wish they would be clearer in how they talk i think the fact that some people have said, well, we need to take into account the

cumulative tightening. we have to take into account policy lags. the markets clearly are interpreting that as a sign of a potential pivot. i think the speechwriters at the fed have to be aware of that and ease up on use of these terms that imply pivot or at least qualify them very clearly and say we're not going to do it now. we may do it but not now >> i think -- have you seen these things called lantern flies? they're very invasive species. you see them there and they're very beautiful i think of them like inflation you try to step on them, but they're very fast. they get away from you when you step on them, you better crush that son of a gun because if you don't, they're going to get away. that's what i think. i think the fed sees inflation as a lantern fly, and they're going to step on it, and they're going to keep grinding their foot in. >> beautiful >> beautiful, beautiful invasive species. >> beautiful metaphor, tyler

and i think the fact that we have so many lantern flies now is because the fed got bit by these flies during the transitory talk period and the transitory talk really has hurt the fed credibility and i think right now, they're trying to rebuild it by saying forget about pivot until we see a clear path to 2% >> bill, do we have insidious optimism to go along with insidious inflation? if you're looking at the market, and we have been through this, nothing is going to keep us down, we're going to keep the little engine that chugs away. are you -- do you think this market participants and the nation at large, the willingness to spend even though we may be facing recession, is it just american optimism at work? >> i think it's also a failure of reporting on what the condition of the american economy is everyone is talking how we have trillions of dollars worth of savings potentially consumers can spend. those trillions of dollars belong to the upper half of consumers. the lower half are pulling

credit card debt, they're getting second jobs. they're barely making ends meet. i think the bimodal economy is something we haven't focused on enough there's a lot of suffering, but somehow this notion that american consumers are going to spend because they have so much savings is a misnomer and i think that's the image we have to get rid of because that's what the market is feeding on. the market is feeding on that notion, my god, that strong consumer is going to keep inflation up it's only some consumers that are doing that >> that's a great point. and anybody who walks through a major american city right now can see the other side of this and see where the other half is living, and you raise an interesting point. bill, thank you. >> thanks for having me. >> all right, coming up, we're following the money this holiday season will the dollars flow into luxury or the discounters? we have the bull case for both of them. plus, hunting for value. a veteran investor found two names that are getting clobbered with strong cash flows that he says are worth owning right now.

he will name them in just a few minutes' time. as we head to a break, take a look at shares of alibaba which are higher despite a mixed earnings report. the company beat on the bottom line but saw its cloud services revenue grow at its slowest pace on record. more "power lunch" in two minutes. thatto u7%hove sckp , wer. what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture

to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you. let's create cybersecurity that keeps your business on track. ibm. let's create

the closer we get to the holidays, the more questions emerge about the consumer.

some retailers saythy expect spending to be strong. others see cracks. so where will the money be spent? on luxury brands like burberry, capistry, or will shoppers look for bargains at polices like dollar tree, costco, and more. here to discuss the outlook is oliver chen, columbia business school professor, and scott, an analyst at r5 capital. oliver, let me start with you. you see a bright sky ahead for the luxury retailers, the tapestries, and others why? >> we're excited, great to be here happy holidays luxury is well positioned to continue to win on pricing, power brands, people are going out again. and these brands are achieving pricing gains, and people love it people do want magic in their lives. they wand handbags and fashion that makes them feel great, and there's lot of great innovation. our top idea is lvmh, louis

vuitton. a $350 billion market cap company. they spent $7 billion on advertising and marketing. u.s. brands spend between $300 and $500 in marketing. that's an idea we really like. consumers are bifurcated they're really buying luxury and they like luxury and we're getting pricing. and they're also looking for extreme value. i'm a big jewelry shopper at costco i buy caviar at costco that actually has 50% of their customers are above $100k there. so don't count that out as an idea >> you count costco as part of the luxury sort of category? >> i think costco has an amazing premise. and all people love value. and costco is a really fun treasure hunt. they are one of the biggest fine wine importers they're also one of the biggest diamond retailers. and their quality is second to none and they have a fixed margin so you're getting a great deal no matter what it's a members only model.

very well thought of merchandising organization, premium jewelry. >> darling, i got it at costco >> he bought it at kous co doesn't have the same ring >> tiffany is part of lvmh, and diamonds are a girl's best friend really thinking about value and this treasure hunt i like them both >> well, scott, let's talk about the -- i mean, i love our headline on this story, bougie versus bargain are you more of a fan for bargains going into the holiday season >> i think, by the way, costco is one of the best retailers out there. so you know, they'll probably have a decent holiday. the challenge you have right now, and i think your last quest was talking about is the bifurcation that's going on in the economy. i mean, the necessities of life are up so much we do a lot of field research, whether for our consulting clients or for research. the government is saying up 12%, 13%. we're tracking up 20% in some

markets. we know what's going on with some of the utilities and that's putting enormous pressure particularly on the lower to middle income consumer so definitely think the wall marts of the world are going to do well during the holidays. and other people will struggle as you get up the income, as oliver was talking, that's almost a whole different stratosphere, but we think there will be cracks there too we're not optimistic about retail generally walking stores with a client of ours last week, and they run a retailer and they still can't find labor lowe's saying they're going to raise labor, look what the fed is doing we're likely, if history is a guide, to push into recession mid to late 2023 that's just not good for retail. >> i see on your bye list that you have names like whole earth brands, sprouts farmers, natural grocers. when i look at those kind of names, i think, well, those are

splurges in that particular segment, that if you are going to a natural food store and you're willing to pay a premium for organic or whatever, you're still choosing luxury. do you think that's likely to change as we head maybe closer to recession >> yeah, we'll hear from natural grocers today. small cap name based out of colorado we were a little more cautious on that because of exactly what you're saying. sprouts, we think it's more of a discount we think there's a lot of work to do with that company. we like how they're running their stores we think there's an opportunity for them to improve how they go to the consumer. i would say it's more of a special fit, special situation rather than everything is going right for them but you have to watch the consumer there's no doubt about it. we have gotten a lot more cautious on the food at home sector, especially after what walmart said on their call about we could be deflationary >> a little tight on time but i

notice both of you have in your coverage universe target oliver, i'll give you the last word what happened with target and is it a one off or something deeper >> target had a tough time the back half of october was very difficult with softer consumer so what we're hopeful is that they have done a good job further flushing out inventories, offering tons of great value and promotions, and that should be helpful going forward. however, scott's right, there's so many cross currents right now in october, the slowing traffic is something we're watching a lot. and we're expecting a very promotional holiday season so shoppers will get great bargains what people are doing is waiting. waiting to get better bargains and that's something we're paying attention to. and inventory levels are higher. last year, we had trouble getting leggings and necklaces this year, there's plenty to go around we'll see, but handbags are it, beauty is it, luxury still lives. you do have to be selective. >> oliver has given you your

christmas shopping ideas >> the world is happy i had trouble getting leggings last year i'm sure we'll see you before the holiday is over. meantime, happy thanksgiving to both of you. >> coming up, the new ceo of ftx is not mincing words he called the company's situation and the former leadership a complete failure. we'll have more on that next plus, further ahead, one start-up, the grass, is definitely greener today's clean start diving into a company making electric self-driving lawn mowers and we'll be right back. zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.

that's decision tech. only from fidelity. [holiday music] ♪ for people who love their vehicles, there is only one name on their holiday list... weathertech... laser measured floorliners that fit perfectly in the front and rear... seat protector to guard against spills and messes... cargoliner, bumpstep, and no drill mudflaps to protect the exterior... and cupfone keeps phones secure and handy... [honk honk]

surprise!! shop for everyone on your list with american made products at weathertech.com... (vo) verizon small business days are back. and there's never been a better time to switch! shop for everyone on your list get our best offers of the year on business internet. help your business stay ahead with the reliable connection your business deserves. book your appointment today. and switch to the network america relies on. verizon. ♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people

from all over the world. instead of talentless people from all over my house. welcome back to "power lunch. some stark new words out today from the new ceo of ftx, john wray, who was appointed to help oversee the company's bankruptcy in a federal filing today, the ceo said never in my career have i seen such a complete failure of corporate controls and such a complete absence of trustworthy financial as occurred here, from compromised system integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a very

small group of, and again, i'm quoting, inexperienced, unsophisticated, and potentially compromised individuals. this situation is unprecedented. well, for reference, john wray helped oversee some of the biggest bankruptcies ever, including enron's. tyler. >> that's going to take years to unt untangle what a mess. >> let's toss over to brian sullivan cnbc news update >> yeah, hey, tyler and contessa this could be a mess in buffalo. all right, winter starting with a vengeance. parts of pennsylvania and new york are about to get crushed with snow. buffalo may get up to five feet beginning tonight. a state of emergency has been declared in 11 counties. >> in arizona, defeated republican kari lake has refused to concede the race for arizona governor she's assembling lawyers and evidence of election irregularities nbc news and others have called the votes for katie hobbs. >> a big win for fishermen and

native american tribes in california regulators have approved the largest dam removal project ever $500 million demolition project will take down four dams on the california river, opens up hundreds of miles of salmon habitat. the dam's hydroelectric power units are outdated and seen as no longer needed to return the river to its free flowing state in more than 100 years contessa, i know you went to syracuse five feet of snow for you is like spring. >> i might go out wearing my high heeled sandals. no problem >> brine, thank you. >> ahead on "power lunch," hunting for value. we'll parse through this volatile market to find some names that are just too cheap to ignore >> plus, the consumer stocks are one such group experiencing pressure as purse strings tighten. we'll trade three key muovers.

"power lunch" will be right back you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠.

90 minutes left in the trading day. we want to get you caught up on the markets, on stocks and bonds and commodities and a little value hunting.

let's begin with the markets, still lower after hawkish comments from james bullard but a sharp leg higher this afternoon, some attributing that spike to technicals. only two sector higher today, tech, health care. united health and merck and amgen helping prevent the dow from bigger losses and alibaba higher, despite posting results that showed slower growth, as china's strict covid policies weighed on consumer spending. it's up more than 6.5% hopes that those policies will be eased may be behind some of the stock gain today now to the bond markets where rates are rising following hawkish comments from fed presidents, especially james bullard. rick is tracking the action for us hello, rick. >> hello, contessa and all you need to do is look at a two-year note one of the shorter maturities, to see how james bullard's comments affectedthe market. maybe they would have been higher because yesterday was one of those days there was so much

short covering the treasury comp flex, we saw yields drop dramatically, but he had a big effect on the shorter maturities but the further down the curve you go, the less of an effect it had. and if you look at an october 1st of hyg, sand i picked a hig yield etf for reason the high yield or less investment grade securities usually deteriorate which means you want to see the hyg go down for deterioration, up for less when you open up to 2008 and look at the effects of the credit crisis and what happened in march of 2020, you can see the hyg is not doing all that well but it's trading in an orderly fashion. finally, three months to tens, everybody is preoccupied with yield curves and inversions. that particular two-week inversion is the 15 1/2-year most inverted it's been, although it's less inverted than yesterday. and the final analysis, james

bullard's comments mean a lot to short maturities if you look at the normal yield curve, what you should see is a steep yield curve, where short mat maturities, the rates keep going up what happens when the fed starts to raise rates is the curve starts to flatten and ultimately, the shorter matures do better in and the longer maturities do worse. that's the dynamic driven by james bullard's comments maybe you get a 7% fed funds rate but you might only a 4.75% ten year >> that was pretty amazing use of television props. well done. thank you, sir >> oil closing deep in the red right now, let's head to pippa stevens for those numbers. >> oil is tumbling today with demand destruction the primary concern here we have heard from fed speakers including mary daly who said pausing is off the table and then we have china continuing to take aggressive measures to curb covid cases, and both of these are demand

destructive for oil within the two largest economies in the world. wti is down 4.7% at $81.61 that front month contract which does roll on monday got within less than 20 cents above the january contract, and that's the tightest since december 2021 and really illustrates this drop-off on the demand side, according to mizuho's bob jaeger but he adds it's hard to believe the response given the upcoming december 5th deadline when the eu ban on russian oil goes into effect gas is moving higher today, plus colder temperatures expected for this weekend is also supporting demand contessa >> thank you for that. time now to go value hunting. we may be in the red, but stocks have been on a nice upward trajectory the past month. 9 out of 11 sectors in the green, the dow is up more than 10%. so are there still names you can pick up that look cheap? with us now is the manager

partner and porfolio manager at dcla, also a cnbc contributor. it strikes me, fidelity put out this note that says on average, 401(k) amounts have dropped 23% year on year a lot of people, even those who are in it for the long term, have got to be looking right now for how do i make up some of what i have lost are there plays for them to consider >> absolutely. and again, one of the things to just know is even if you're down this much, what you don't want to do is try to time the market and get out and say i'm going to come back when it's lower. we have looked at a couple stocks for example, paypal. paypal is down over 15% this year the growth rate of paypal for the next year and going forward is 15% on its earnings and the stock is trading at 18 times earnings it is completely one of those stocks put in the kind of bad basket because they have missed over the last three quarters their earnings estimates and a lot of that had to do with kind of pull forward during

covid. a lot of that had to do with management having issues in terms of buying new customers. but i think paypal has religion now and they have a couple new things that just happened. one is a partnership with amazon using venmo, and also with apple pay. i think the company now is going to increase operating eff efficiency, grow earnings 15% and we haven't seen a multiple of 18 on paypal i don't think ever the stock always traded in the 30s, 40s, and sometimes higher >> let's move on to svb financial and why you think that's a value >> tyler, it is one of the stars out west this company, a lot of venture capitalist and life scientists, early tech use them to fund their investments. what happened was those companies are now using all the cash to fund their investments at the same time rates moved up so high, so the net interest margin hurt them much faster than they could.

this is one company trading at 14 times earnings. they have such a huge space ahead of them, and now they're also in the wealth management and investment management business it's a really premier company that has been kind of correlated with tech. but they have really diversified their businesses, and i think you buy this stock here, it's down over 60%. they don't have bad loans. they don't have credit quality issues it's just a couple things happened at the same time and you had growth investors who were in the stock that has now become a value stock, and the rest of the financial world is trying to figure out what they really are >> i guess diversification is they're lucky they did it because the deal activity out there is pretty sparse right now. >> the deal activity and also the -- exactly, for the venture capitalists, for the warrants they had, so compared to where they were five years ago, they're a very different company, but they're being treated as if they're the same company, and i think as the rates stabilize, they're doing to make money off interest

margin, especially as more and more deposits come on, and they have to lend at a much lower rate >> all right thank you very much. have a good holiday, my friend >> you too >> up next, we have gas and grass guzzlers traditional lawn mowers emit as much co2 each year as 900,000 cars i'm feeling guilty but one company has a solution clean start is next. new customers get our best deals on all smartphones. that's right! but what if i'm already a customer? oh! no problem! hey, cam? wow! same deal! yeah! it's kind of our thing. wow! that's a great deal! what if i'm new to at&t? cam, can you? nice! hey! but what about for existing cust- it's the same deal! it's the same... is he okay? “it's not complicated.” with at&t new and existing customers get our best deals on every smartphone.

♪♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? ♪♪

you hate mowing the lawn i kind of like mowing the lawn but let me tell you this the environment probably hates it more than you might hate it gas powered lawn mowers just as bad as gas powered cars, and electric mowers haven't really stepped up, until now. diana olick, she does everything here she's on the real estate, on the economy, and she's on the clean beat with a look now at a company empowering landscapers literally in her continuing series on climate start-ups. >> hi, ty. it's because real estate and climate are all connected. gas powered lawn mowers emit

about 40 million metric tons of carbon a year. now a start-up called scythe is making commercial scale electric mowers that not only cut the carbon but can run on their own. >> we enable the landscaping industry to transition from gas to electric mowers by using autonomy to sort of sneak that technology in and eliminate the emissions with a different business model >> it's kind of like a roomba for a lawn scythe has built what it says is the first fully autonomous electric lawn mower that can run on its own for 8 to 11 hours at a time depending on the grass length >> if the person doesn't have to ride it the whole time, they can go off and do other work and take better care of the outdoor spaces, which ultimately will lower the cost of maintaining outdoor spaces and help us cultivate more green space which cools our cities >> scythe doesn't sell the mowers to landscapers but leases them so clients don't have to make a huge investment while the

technology is still improving. >> the leasing model gives us the flexibility to measure it up against how we normally operate to move it up and down and to really work with it as we learn and develop the kind of the a.i. and technology and work it into our operations >> scythe robotics is backed by true ventures, inspired capital, zinc capital, and lemnot total funding so far $18.6 million. so far, these are only commercial mowers for landscape companies, but you can imagine the potential for consumer market he also says the recently passed inflation reduction act gives tax breaks that will benefit the growth of his start-ups. >> so it knows where it's been before, in other words, it can see where it has cut >> it can absolutely what it has cut and it can see where it's going. as you saw with the dog, it can be very careful. if you see something in the path or it sees something in its path, it will stop

it's also run off an ipad. you can have the person who is the maintenance contractor there on the ipad kind of telling it where to go or it can follow a model that's already preloaded onto the ipad. >> it's not -- i guess it's not like powering or driving a drone. i don't have to sit there and steer it with a joystick >> no. >> it knows. >> it knows. >> diana, thank you. here it goes a roomba for your lawn >> really cool sign me up >> still to come, paramounting pressure paramount hosting some solid subscriber numbers and it's sending netflix shares lower we'll discuss rlfuth in today's three-stock lunch.

- [narrator] if your business kept on employees through the pandemic, getrefunds.com can qualify you for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds.

but it's only available for a limited time. go to getrefunds.com powered by innovation refunds.

it's time for three stock lunch. looking at some of today's big movers netflix a pause from the recent run up after competitor paramount said it saw the biggest sign-up day this weekend. macy's soaring on the back of strong earnings. bath and body works on pace for the best day since 2020 and the retailer raised its outlook.

great to see you today let's start first with netflix i was under the impression that the later commerce were struggling more and yet paramount seems to be gaining steam. >> yeah, no. the later comers have been growing rapidly. look at what disney plus is doing, paramount plus is doing, paramount is doing, they are growing. that is putting pressure on netflix. more variety is not a good thing in the content space because you only have so much time in the day to watch content with netflix you have increased competition which hurt the stock. if you look where they are trying to penetrate internationally, that bodes well they have had high penetration u.s. and canada. looking at aipac, india, for their growth and that's a strong thing for netflix and also the ad supported tier. i think that will bode well for the company. still holding on there is positive trends for netflix as they had a strong

quarter last quarter. >> they don't have "yellowstone." >> how much of this is "yellowstone" if not at all? i know it's a paramount property but i don't know if it's parent plus. >> i think it's a lot of things. if you look at what a lot of other streaming companies have done with live sports, netflix has stuck with the model with just documentaries a lot of other companies are going with live sports you see amazon prime video drawing in a lot of people and that's, you know, going to put pressure on netflix. bringing content, you usually have a strong slate in the last quarter especially over the holidays i would think that would bode well for the company. >> macy's is stock number two. you are positive why >> the big thing here is on fro two fronts inventory management and consumer health. management said on earnings they have increased inventory they are ready to meet demand, whatever that demand is, in this coming quarter that's a strong sign for the company. also if you look at what the

national retail federation has as far as expectations for q3, excuse me, q4, for retail sales they are pretty strong we talked about the bifurcation of consumers, talked a little bit about consumers are stronger, you know, we still have employment and all those i different things but people are spending whether on cash or credit and that bodes well for a company ready to meet demand and macy's has done that they had 31%, digital, which i think is a strong sign. >> bath and body works what do you think of this? >> this one is some good things and other things it's neutral it had a strong trading pattern today and i think it was, you know, pretty much if you looked at their earnings, they still have a primarily a conscious consumer and demand is kind of going down, they have guided lower. surprising move with the stock, kind of volatile i think they are going to be in a situation if they meet inventory it would bode well for the company. the trading kind of interesting.

>> it's interesting because to me it's like a necessary luxury. it's one of those little things you can splurge on is higher end hand soap or lotion and for a lot of people that feels like, all right, i can still indulge in luxury. thank you. >> thank you up next, taylor swift, that's all you've got to know. we'll be right back. 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.

taylor swift is once again telling the world she is a music industry powerhouse. the pop superstar sold more than 2 million tickets on the first day of her tour's presale. it's a record number and it came in spite of the ticketmaster glimpse. they caused outrage among her fans and it's sparking warnings from lawmakers ticketmaster faced a lot of criticism about its influence in the entertainment industry and liberty media's ceo, ticketmaster's biggest shareholder, blames demand from its 14 million users, including bots for the fiasco. we heard some of that today about the way that that caused a meltdown i think that there could be potentially a risk when you have leading lawmakers saying, hey, here's a reminder, this has outsized influence, it's a dominant -- >> live nation or live nation

owns ticketmaster. live nation is the promoter and ticket seller and, and, and. so it seems to be a vertically integrated operation that night attract the attention of the trade mission or whomever. >> and they have the lion-'s share of ticket sales. when you say that you are going to give fans an opportunity to have a first chance to buy taylor swift tickets and then it all goes wrong, there are real questions about -- >> i am not sure i don't want to speak out of turn, but i believe they are active in the resale market through ticketmaster or some subsidiary of the same at any rate, taylor swift sells a lot of tickets. >> she is an anti-hero. >> hart. you will soon be able to buy stock in the atlanta braves, speaking of liberty media. it is planning to spin the stock to a publicly traded company a rare opportunity for a pure play sports team stock now, rogers communications owns

the toronto blue jays but it's part of that broader con grom rit, "mad madison garden sports the knicks and rangers and the manchester united also on the new york new york stock exchange as well. the atlanta braves have been part of a publicly traded company before when they were p part of turner media and sold off and are part of liberty media now. you can buy the braves, you are getting a pretty good team. >> people feel like they have a right to manage the team what about the green bay packers? you can -- >> they are owned by the police brutality. >> you can't resell those shares but it's a big bragging right in wisconsin to hang your - >> hang your stock certificate -- >> i think they play tonight this evening, the tighttans. >> a quick check on markets. you are seeing the dow turning

negative once again now, down 0.2 of a percent the s&p 500 is off by 0.5% and so is the nasdaq as james bullard offered potentiallyish scenarios for interest rates oil is falling energy stocks lower. that wraps it up for us on "power lunch." >> thank you for watching. "closing bell" starts right now. thank you, tyler and contessa stocks under pressure following the hawkish fed commentary and trump in treasury. this is the make or break hour for your money welcome, everyone, to "closing bell." i'm sara eisen right now only one sector higher now and that's technology for a change but it's not the sexy part of tech it's the more boring part like cisco, jumping 5% off earnings nasdaq off half a percent now. the s&p 500 down half a percen