looking to get more return on their money when interest rates at the time were at historic lows that's on the blockfi side ftx catered more to hedge funds and high-proefile traders. >> kate, thank you very much thank you for watching "power lunch. "closing bell" starts right now. protests in china, some hawkish fed signals sending a chill across markets today the major averages firmly in the red. we're near the lows of the day as we head towards the close this is the make or break hour for your money well, everyone, to "closing bell." i'm sara eisen down almost 500 on the dow jones industrial average it looks like taking the biggest chunk off the dow is goldman sachs, home depot and boeing the s&p 500 is down more than 1.5%, every sector is lower. the weakest link today, real estate, energy and materials the nasdaq also down 1.5% and,

of course, this comes after a week when the s&p rose more than a percent. take a look at a it's near the bottom of the dow again today amid concerns that protests in china will further limit iphone production. more news on that for you straight ahead. also coming up on the show this hour, we'll discuss the rising tensions in china and how the web's wide -- how widespread the protests could become and we're joined by former u.s. ambassador to china and former season max baucus. plus, david zervos will break down the political unrest on the economy. let's get to the market dashboard with commentator mike santoli. discretionaries holding up the best. >> tesla is to the upside, at least the last time i looks. helped the discretionary sector. very hard to tease out a very clear story line pause it started out with a bit of a shadow of global growth fears. you saw oil down bond yields lower.

of course, the concerns about what was happening in china gave this very much a feel of we're worried about the growth story, and then oil picked up early afternoon. you also saw some of the tesla china tweets got apple to the downside the net effect is it brought the s&p down a little bit less than a percent or about a percent and a half right now it's essentially back to where it was a week ago. we've been in this very narrow range. the market has acted pretty fatigued i would say after this rally. we've gotten off the mid-october low so my point is the if you're above 3900 it's not breaking the short-term trend but we're on alert for catalysts, jay powell speaking, pce data as well as jobs on friday you see there, kind of sideways for about ten or 11 days at this point, 10 or 11 trading days the percentage of stocks above their 50-day average in the entire world, all country world index and then above 509-day this one here is not quite

decisive as you can see. topped out a few times in the last year so you haven't gotten escape velocity but there's better strength underneath surface of the index with the resetting indexes in europe breaking to the upside it seems as if value is being created but you can't say that you're kind of out of the woods on this measure. >> s&p up 2.4%, two more days of trading left we'll see you for market zone. let's go live now to china as protests flared over the weekend sparked by the country's strict zero covid policy. we're joined from by joining with our eunice yoon what's it like there month were there more protests. >> reporter: there were no more protests security is very tight after the weekend protests which were arguably the most open show of defiance against the communist party since the tiananmen square crackdown. the protests erupted in multiple

cities including here in beijing and were triggered by a deadly building fire in the far western city which many people was worsened by covid controls the bulk of the public anger has been directed at the zero covid policies however, there are indications that there are more wider spread grievances many people were holding up blank sheets of white paper to indicate their frustration with censorship also in shanghai people were calling for the resignation of president xi jinping beijing has so far indicated that it's going to stick by its zero covid policy, mitigating some of the most excessive curbs, but also interesting tonight, sara, is that shanghai residents have now been saying that police have been conducting random cheques of their phones looking for vpns and foreign

apps, including twitter, instagram and telegram and searching for the udumxi >> thanks for that report. let's bring in anna ashton, director of china corporate affairs. clearly investors are watching this very closely. what are you telling your investor clients as far as how big this go get? >> well, you know, sara, we've been mainly telling them not to get overly excited that this means there will be a more appropriate to us lifting of zero covid measures and not to -- not to embrace sort ever overblown initial takes on these protests that liken them to tiananmen square or even the 2019 protests in hong kong, and

it's -- it's sort of a confirmation of that, that eunice reported, that indeed the protests seem to be quieting down that's pretty much what we were anticipating, although that's actually faster than we first expected >> and to be clear, you think they will quiet down because beijing will completely clamp down on them and send the police up >> so we actually think that there is -- there's other evidence that the central government would like to loosen the zero-code of policies. the trouble is exactly how to do that without ending up in a situation where there's a super disruptive outbreak because there just aren't enough people vaccinated right now for the population to be able to withstand opening up that doesn't create a serious outbreak, but we have the science. the release of 20 measures earlier this month indicating that crackdowns -- that

lockdowns should be more targeted and also xi jinping's appearance at the g-20 where he wasn't wearing a mask and that was pretty high-profile. that being said, you know, we don't expect that there can be any immediate lifting, and i guess our -- our speculation about the protests is that they may be allowed to continue to some extent, especially if they are focused on the covid measures themselves. it's a little different matter when they are overtly critical of the central government and xi jinping himself as we've been seeing in shanghai and there may be pressure on local governments to limit the lockdowns. >> so ultimately you do think this leads to more relaxing of policies which is i think the way the market is interpreting it because some of the biggest winners are the china-linked stocks the w-web china etf is up today in a down market

anna, my question has to do with u.s. companies that operate there, nike, apple which is under pressure because of supply chain. they have been dealing with the zero-covid lockdown, rolling lockdowns. now the protests do you think that american companies will get dragged in here not just from a supply chain perspective but a political one if the protests do indeed grow? doesn't it make it harder for them to explain being in that country? >> i mean, certainly it does create reputational risk as do many thingsp between the u.s. and china right now but probably in most cases no more so than has been the case over the course of the covid pandemic i think that the greater concern is not reputational risk even though we do have the example of the fox con protests as a big high-profile one the bigger concern is real, you know, the disruptions to business operations.

>> right, which they are dealing with and figure out. anna, thanks for shedding some light on this for us appreciate it. >> thank you >> anna ashton were eurasia. adobe says online spending on black friday did hit at record, but will cyber monday see the same type of strength. we'll ask the ceo of apparel platform good and david zervos will break down new hawkish commentary ahead of fed jaire powell's speech on sunday. the dow is down close to 500 points an hour from the close. 'lbe back.

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. welcome back stocks under pressure on wall street losing steam throughout the session. a live look at the s&p 500 sector heat map this hour. every sector is under pressure right now. who is getting hit the hardest, real estate, energy, materials and technology consumer staples and discretionaries are faring the best but both down names like ultia, smuckers jam and walmart and coke higher, amazon and tesla both higher and target, advance auto parts and wynn are helping out it is cyber monday, and the early results for the holiday shopping weekend looking promise for retailers. a report $9.12 billion was spent online on black friday up 2.3% from last year our frank holland joining us now from a best buy fulfillment center in the new jersey how is the action there, frank >> reporter: yes pretty busy here, sara, if only

you can hear the noise people shipping out online orders today we're getting data that the top retailer searched for on this szish monday are walmart, target and home depot with the top pick being amazon as estimates for spending on the cyber monday have increased just this morning and as black friday spending accelerated over the plaque friday weekend so take a look at this on friday alone the average spend per online checkout, it was $101, and if you count whole weekend, friday to sunday, the total was $113 on average showing a strengthening consumer over the weekend discretionary spending also on the rise, luxury spending up 26% year over year during the black friday weekend other categories like toys and games, also shoes seeing even bigger gains also this was a bit of a tech year savvier monday and mobile spending on cyber monday over the black friday weekend that reached a record up 52% of all spending, only 48% the year before and then also a higher

conversion of social media to mobile checkout. 22% rise on that as more and more people look to shop on their knows. back over to you >> frank collins some healthy numbers there thank you very much. higher prices for everything as well more on what the consume remembers buying this season let's bring in the ceo of the go group. everybody knows you as a sneaker re-several, but you've expanded i know into apparel and others things how is the online shopping season this year relative to what are it was last year and previous >> sara, our favorite time of year, of course, and this year was big and better than ever so excited to announce that on both sales and engagement we had an amazing black friday season had almost 2 million members attend our event and they shared over 56 million times on the social media platforms for our raffles and our drops and auctions. >> is that a reflection of a consumer, a u.s. consumer

that's-ins good shape financially or just more action in the sneaker market? >> well, a common misconception with good is we only sell high-priced sneakers, but we sell the whole gamut a big percentage of our sales are under retail price so we have something for every single consumer on our are platform today. >> under retail price. >> under msrp of a sneaker given that we're marketplace sellers, sell kers choose to sell at whatever price points they want and if they want liquidity they will sell for under retail prices. >> reporter: how are the prices right now? >> of yeezys >> they have come down and sales have gone up and consume remembers choosing with their wallet saying i might not support this but i'm still a sneaker enthusiast so i'll buy other silhouettes and so we're

seeing a surge into new balance that has gone up 90% because people like chunky comfortable styles and new balance has real helped that. >> prices up, sales down just wondering, were you conflicted at all when it came to the decision of whether to keep letting yeezys be cold on your platform whatever he said >> first and foremost, goat does not condone hate speech. kanye is not a direct seller is. our platform is to connect our buyers and sellers in a safe and authentic manner and what we're seeing is customers are choosing with their wallets to buy other brands as well. >> real interesting. what about i'm just thinking the protests in china are front and center a majority of sneakers in this country are still made there do you worry about the supply chain issues as the zero-covid policy continues sneer. >> intersnags a big focus of ours and what we're seeing with the strong dollar is internationally there's a lot of sales into the u.s. from outside of the country so it's not just

china, but we're seeing sales from china, singapore, japan, et cetera, selling into the u.s. consumer because of the strong dollar. >> but what about the supply chain and china and access to sneakers >> we haven't disrupt our supply chain because we're mostly single parcel versus container loads so for us we're still seeing strong exports from our chinese sellers into the sgu.s. >> good to see you in person, the ceo of goat. show you where we stand, got a selloff and it's accelerated in this final hour. down 525 on the dow and 1.7% on the s&p 500 and 1.75% on the nasdaq as well nasdaq getting hit particularly hard by apple, microsoft, nvidia, meta and awful bet amazon and tesla remain higher, just barely. still ahead, venture capitalist has had success in companies like airbnb, sofi and palantir

the ten-year yield gets the most interest as usual. seeing 3.7% on the ten-year so there's buying today yields under a little bit of pressure, a little bit of a reversal what have we saw earlier in the session yields up a little bit higher so the red actually reflects the price. yields higher, apple in there, wti crude which has reversed higher now, slantea d amazon we'll be right back.

check out today's stealth mover. imbev. investors are brewing up a rally for the stock after jpmorgan doubled it from overweight to underweight. the firm says they see scope out performing performance there's a rebound of domestic light beer in the u.s. and sustainable momentum in latin america. the stock went beerzerk on the

upgrade. up a stellar 2%. thank to you my brilliant producers. after the break, former u.s. ambassador to china max baucus says china's xi jinping has put politics ahead of science and facts as we discuss the zero-covid policy when we come back hi, my name is tony cooper.

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. frustration over chip's zero-covid policy has boiled over into protests across the country. a rare showing of nationwide unrest as arrests prompt lockdowns in many cities and regions in china joining us now is former ambassador to china max baucus and former senator from montana, mr. ambassador, mr. senator, i guess mr. ambassador for this conversation, good to have you, welcome. >> thank you. >> how big of a deal, how big of a problem is this for president xi >> it's a huge problem i mean, he,s in a big, big box. on the one hand his strategy to curtail covid has worked let not forget that we in america have had 100 million cases of covid and 1 million deaths whereas in china, population of four time the size of the u.s., there have only

been 1 million cases of covid and only 5,000 deaths, so covid policy, zero-covid has really worked really well in china, but at a huge cost to the people of china and also to the chinese economy, and because the lockdown has caused -- is continuing so long and because a lot of people say why in the world will we keep the lockdown? watching the world cup, qatar beam not wearing sglasks right. >> it's really bothering them but to be honest about them president xi knows if he opens up too much because so much -- so much of the country has not been exposed to covid or any of the new variants it's going to be an explosion of cases and there's not bed in china, not the vaccines in china. he's too proud to take a pfizer or moderna vaccines so he's in a real, real box it's a real problem that's facing him >> you said zero-covid policy worked, i guess, if you thought

that covid was sort of one and done but it's not. it's going to be with us for a long time so i don't understand what the plan is for opening up an economy and not exposing their population largely unvaccinated to western vaccines to covid, so as an investor trying to figure out whether more lockdowns or less lockdowns, which is it >> well, you put your finger on the problem. i think the lockdowns are going to essentially continue for a while. i think the rise in covid cases due in part in china to the relaxation has caused president xi to lock down to where he was in the past. you have to think long term to invest in china. they will start to open up a little bit but it might not be until the second quarter probably of next year. he has to moderately do this, open up and has to find ways to get vaccines, figure out a way to vaccinate his people especially the elderly who is

not vaccinated need to do what needs to be done so they can open so the economy can percolate to where it was before. >> how does this affect the u.s. and the u.s. relationship and dealing with china now with xi facing his own domestic crisis >> well, it's hurting the relationship a bit first of all, american business hikes to do business in china if it can china is taking it up a little bit. a lot of american businesses are doing okay in china, not great, but this has a dampening effect probably on the relationship the real tragedy here is that several years ago when covid came on the scene, there's opportunity for the united states to work with china. we had vaccines. we could have helped china vaccinate their own people they didn't do that.

that's really too sgbad. >> why won't they buy pfizer or moderna? >> they want to develop their own vaccine fanned they peel like if they have to buy other country vaccines then they show that they are in some way inferior most of it i think is pride. >> thanks very much for weighing n.appreciate your perspective here somewhere. >> yeah, thank you >> former u.s. ambassador to china, max baucus. heading into the close, continuing to move lower, dow down 535 the s&p 500 is down about 1.7% we're sort of resting at this level right now. again, every sector is weaker, real estate energy materials getting hit the harder even though weaker oil prize, weaker on the chinese selloffs. oil prices are a little bit firmer on wti krumptd up next

we we'll talk to jih ha boze-little on where he is about the big ipo drought. bitcoin taking a another leg lower as another crypto firm goes bankrupt. blockfi has filed for chapter 11 bankruptcy in the wake of the collapse of ftx saying they have more than 100,000 creditors. we'll be right back. 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. ♪♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place

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losses in the nasdaq really picking up this hour sitting at session lows, down 1.8% kristine ann partsinevelos is live not the yield which would

usually signal the tech pain. >> reporter: they have come down a little bit obviously it's a proxy for china given the number of lists companies who investigation posh you're to the country and the current protests right now represent uncertainty, and we know markets don't like uncertainty, so speaking of china, apple down almost 30% right now on problems at fact police china as well as lower demand for the iphono14. other names with exposure to china, semiconductors and also contributing to some of the biggest laggards right now on the nasdaq 100 nxpi, micron, qualcomm down 3.5% and wolfspeed is another name, down about 7% right now but running contrary to that china narrative is the chinese e-commerce firm up 13% and the biggest winner on the nasdaq 100 after a strong q3 profit and revenue beat just hate one-year high. can you see it climbing on your screen and jd.com, another tech

firm rising in sympathy as well. we do have some names, not many, but some names in the green on the nasdaq 1 is up ross stores could be some bleed over from cyber monday, black friday and lululemon in the mix as well as amazon, but notch those names are even half a percent higher >> thank you, kristina. it has been a positive month so far for the tech sector but not for the ipo market down 7% and with rights rates and fed tightening what's next joining us is the co-founder and are manager of bracket capital you're the perfect guest to talk about the interplay between the public and private market because of your time at the credit desk and what about the nervousness and tech stocks and i'miest and the public market? >> thank, sara, very similar to

what we're seeing in the public markets. the ipo window is effectively closed it's closed for the great companies because they are well capitalized enough and have enough leverage to wait out the volatility in the current markets, and so they choose to chart their own course and it's effectively shut for all the second and third tier buses for obvious reasons that you mentioned earlier. this is much more of a time of deployment for the venture capital industry i think the period for harvesting was the last 24 months these things flow in cycles so we're focused on acquiring buses and acquiring shares in companies, you know, where we feel like there's been an overreaction but certainly we expect the ipo window to be shut for the foreseeable future and we don't expect that to change and there's more stability in the rates market with respect to expectations >> like. what where are the opportunities, where are the overreactions? >> you know, one of the interesting things about venture capital is companies raise money so infrequently that the

valuations are punctuated by infrequent rounds that happen every 24 months. we tend to focus a lot on the secondary markets and any space or sector because the sellers that you look for are either early employees or investors, companies that are well capitalized won't raise money into this downturn, high quality ceos and c suite teams, understanding the era they were in the mast 24 hours most of them are all well capitalize and now in a race hoping that the growth outpaces the volatility in the markets. chaps need to come to markets will take serious haircuts to the last rounds and we've seen some of that happening over the last six to nine months. >> what are we talking about, serious hairsghuts does it match up with -- nasdaq is it down 30% this year. >> absolutely. high toast low, moves are more commensurate with the higher growth markets, spac market, some on the secondary market are

down 50% to 90%. those are typically concentrated in businesses where the path to profitability is less clear where the human economics haven't been proven out. essentially investors are less willing now to value future cash flows at the same level they are willing to value future cash flows. you look at some of the category leaders, spacex and esg-levered names and solar technology, et cetera, businesses where previously there were very well-funded second and third-pier players coming in with easy money from essentially very large mega cap funds creating pricing wars, forcing them to price down you know, we're seeing a lot less of that now so we're seeing the second and third order effects of this will be a consolidation of capital around some of the incumbents which will actually benefit the market leaders in the next 12 to 24 months but currently, you know, i think that the correlation is actually relatively 1 for 1 on the private said. >> you mentioned space yes, and

i know you're an investor, a longtime investor there. i was curious if you have any insight into the leadership style of elon musk given we're trying to figure out what he's going to do with twitter, how he's managing all of the companies that he's the ceo of, if you could shed some light on that >> yeah. i don't have any insight per se into the leadership style, but what i will say, is you know, he's -- he's proven the naysayers wrong with tesla spacex is the most highly valued private company certainly in the u.s., and the leadership is very broad-based there so spacex is the most idiosyncratic name in private markets, a fed fund rate of 4% is not going affect much they have it much more down to the execution and technological innovation that they have been very effective doing over the past 20 years. >> we appreciate you joining me.

thank you very much. p. >> the talk of the town hall, bob iger's first gathering of employees since taking back the top job and that plus apple's exposh tour china and david zerfoss on the fed when we take you inside the "market zone. we're told that success is all about making it on your own. the truth is... need some help? c,mon, get in. nothing great gets done alone. that's why there's shopify. with shopify, you can set up your

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power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity we are now in the "closing bell" "market zone." cnbc market commentator mike santoli here and steve kovac on apple's exposure to china and julia boorstin with the highlights of bob iger's town

hall we'll kick it off, mike, dow down more than 500 point, nasdaq down 1.7% and the s&p 500 down 1.7% sure, we've got china out there. we've got hawkish fed speak. the market kind of say wear of those issues i guess the china unrest is a bit of a new wrinkle we're also coming off of a strong period where the market has rallied on hopes, mike, that the fed might be ending sooner rather than later. >> yeah, i mean, last week you did get just a little bit of a levitation sometimes that happens during the thanksgiving week. i don't think today's action completely undoes the basis for the lift we've gotten the last several week, at least since the last cpi number, so it's not as if the market is in a fed-induced panic. not seeing yields reacting in a way that would say that's going on but the market has been really unable to build on the gains for more than two weeks right now, and you had semis very overbought coming into today. they are backing off

a s&l a big weight on the indexes that does seem more specifically china-related and iphone demand-related, so a lot of those issues coming together in a market that has real just been churning around these levels for several days. >> let's talk about apple then because it's falling today on disruptions that its fox con factory in china might lead to a production shortfall of 6 million iphone pro units that factory has been the site of worker protests strirgd by the strict covid restrictions in the country. steve kovac joins. steve, is this proof that a s&l too reliant on china where do the numbers come from >> yes and no, sarah either way you look at t.yes, in the sense that when the zero-covid policies take place we saw the reaction to that from the employees there. they protested the images coming out of china the last several days they have just been harrowing to look at and highlights the human cost that ghoos building these phones at the same time china is the

only place with the infrastructure where they can spin out factories when they need to and dial things back when they need to based on supply and demand pressures. for example, a few days ago they needed to hire 100,000 more people at that factory to make up for the covid lockdowns some people were running out and escaping, and they were able to do that very quickly and then the protests happened because they weren't getting the bonus paid so it's a pr nightmare for apple to have, you know, the people making these phones and assembling their phones in the most important quarter ever, it looks bad on that sense, and then from the investor standpoint they might miss revenue growth targets for the iphone business, especially in china which accounts for 15% of all their sales. it's kind of yes and no, but at the same time, sara, they are making efforts to take away the reliance on china. we see them creating more iphone 14s in india, for example, but none of those extra production facilities can make up for just the behemoth that the china operation is >> while we're talking about

apple, steve, i wanted to ask you about -- >> i know what's coming. >> elon musk at twitter picking a fight with apple, threatening them with censorship, calling them out for pulling advertising. where did this come from >> yeah. would i look at what started this conversation, sara. aal has not responded to any requests for comment on this, but, you know, elon is claiming here that apple told him, you know, they are going to yank his app off the app store and didn't give him a reason why. i do know that's not how the app review process works they will highlight problems with the app they will send it back for fixes before they yank it down just look at what happened with epic and the fortnight removal a couple years ago they didn't just pull the app for no reason until the company came out and said we deliberately broke the rules and with elon musk saying over the last couple of weeks they want

to moderate and keep things brand safe for advertisers and that's the kind of stuff apple hikes to see going through the review process so the chances of yanking the app unless something drastically changes and the way they moderate the content, if they remove more of the safeguards, if they remove the human moderators or any kind of, you know, ability to block people who are harassing you, then maybe it could be at risk of being removed, but right now there hasn't been anything that i've seen at least that would make apple want to remove, it so it seems to be a lot of bluster, maybe perhaps he's upset about the drop in add spend. >> exactly. >> i was going to say. it's almost more interesting just to watch the relationship and the tension there between apple and -- >> all one-sided now apple trying to stay out of it. >> let us know if apple weighs in i feel like it was a fraught relationship when musk went off the 30% charge on the app store which is something that other

companies have accused of violating antitrust laws i just want to point out thank you, steve kovach, at new session lows down 540. most dow stocks are lower. the only two bright spots are walmart and merck. disney weighing on the dow down 3% and in the weeks since bob iger's return as ceo iger holding his first employee town hall this afternoon julia boorstin here with more. what did we learn about iger's plan >> reporter: he said he would stick with the plans that bob chapek laid out in terms of doing a hiring freeze, and he said, quo, we have to take a very, very look hard at the cost structures and very much laying the groundwork for some sort of cutbacks and talking about the restructuring he wants implemented. doesn't have a specific time line but he wants to move forward with the restructuring

quickly. when it comes to the all-important streaming business that they are no longer going to be chasing subscriber growth at any costs. now they will be focused on profitability. that's the key thing to keep in mind as we watch the content decisions which films they may be sending to theatrical first. >> good intel, julia thank you. mike, disney, korb a china angle as well. shanghai, disney is real important to them. how has disney been trading since iger news, with the media stock or roughly its own animal? >> yes there was an initial pop the day after the news broke a sense of retlaef there was some urgency on the board. the street was clear-eyed about the fact there was no particular switch that bob iger could flip and it was all of a sudden going to overcome a lot of the challenges that is facing disney and the entire industry so it's been a tough road, yet a pretty rough box office weekend in

general, including for a disney release, and just a broader sense out there that it's not the best time to be reliant on advertising growth, so all those things mixed together. i mean the stock is basically trading in the same range above 90 where it has hit the recent lows >> mike, one of the few that saw "strange world" at the theaters weekend. >> they are forecasting no cuts until at least 2024, listen. >> we need to keep restrictive policy in place for some time. i would expect that to continue through -- least through next year so i think, you know, when i think about the future path, i do see a point probably in 2024 that we'll start bringing down nominal interest rates because inflation is coming down >> meantime, st. louis fed president james bullard how the

with hawkish comments as well saying the fed will immediate to keep raising rates into 2023 and may need to go higher than 5, all of this ahead of the closely watched speech by the fed chair jay powell at brookings on wednesday. let's bring in david zervos, jeffrey's chief market strategy. any of this fed speak come as a surprise, david? >> i don't think so, sar a. you pointed it out in some of your remarks a little bit earlier on the show saying the fixed income market have not opinion in focus much at all. the ten-year note has moved and we are at some of the most inverted levels since the late '70s or early '80s this is really i think a pullback in equities after a pretty hectic run run for not the top, top end of the range but for the upper half of the range that we've been in since june, and i think people are rightly a little bit nervous going into jay's speech at 1:30 on wednesday he hasn't been very friendly for

the market lately, so i think it makes some sense to be a little bit cautious. >> and i think what might be a little more nerve-wracking there's a q&a portion according to the agenda to take questions and he'll have that opportunity to talk at the last news conference where he put a real hawkish spin on what was a dovish statement what do you expect >> he did. i think the audience at brookings will be very similar to the audience that he gets in a typical press conference there won't be that much difference in the types of questions he's going to get, so nothing is going to throw him off. it's really an opportunity i think for jay to set the stage and tell us, you know, is he learning more towards a jim bullard type view, or is it something a little more main street. >> i think one of the concerns for the market, david, is that the fed is not seeing enough

progress on inflation and not open enough towards pausing or poe fencely cutting if we real start to see the damage come through as that monetary policy lags, and they have done a lot off tightening in yeah, look, they put those new words in the statement last time which everybody got excited about before the press conference they are looking at the lags and looking at the cumulative amount of tightening so they have the ability to kind of fall back on that if they want to go towards much lower rate hikes or even towards a period of waiting and seeing at some point in the early or mid-2023 which is probably what they are going do, burks again, i think they are hedging their bets they are waiting and seeing what inflation does what, you know, how quickly it comes down, and i think they are also looking at expectations they are looking at what happens in break evens and in the strength of the dollar and the inversion of the curve and they are looking at their credibility

in fighting insgligs what are the expectations showing something they are most nervous about is getting ahold of inflation expectations haven't they been relatively tame lightly >> we've talked about this a lot on the show as well as write begun at jeffries. five-year break evens haven't budged in two years and i lacked at them before the show, they are at 2.71% they have top what they wanted, the dollar is strong the curve is inverted and gold hasn't been able to get out of its way, 7% last year and over 7% this year so i don't think the fed has an unanchored inflation expectation problem. what they have is a speed with which they will get back to 2% issue and how to calibrate the rate structure to get it the back there in a way that doesn't disturb the anchoring that they have in play, and i think that's really -- that's the art, not

science, the art what have they are going to try to do in 2023 it will be -- i think it's going to be more of a fine-tuning exercise, but there's certainly potential for mistakes and missteps. >> right david zervos, david, thank you very much. always a pleasure. mike, there's also the recession question a lot of the strategists like morgan stanley, equity, goldman sachs today, equities, bash on the view that we haven't seen the bottom because the market hasn't priced recession. >> right, or at least hasn't priced in a somewhat higher probability for recession than they perceive is out there in the world. it's pretty much the whole decisive answer. the only reason a fed pivot would be bullish is because you're avoiding a recession or making it an extremely technical shallow >> unwhat do you see in the internals? >> pretty negative as you might expect kind of wound down across the day in terms of the breadth. you've gotten 5-1 to kheining to advancing volume take a look at financials as a whole relative to the real

estate sector. they were mapping each other pretty well until recently you see the outperformance by financials, commercial real estate, plus some cell phoners to and things like that in the real estate sector they ever leveraged. they obviously don't have quite the pricing power as many thought they would and they are lagging behind and the volatility index has perked up, now above 22 got down to the year's low end of the range here 20, and now you have the catalysts that are coming are jay powell's speech, pce, jobs numbers too. soon to say that it's bottomed and is rebounding for good. >> mike, thank you as we head into the close, where is the pain today? the real estate sector in particular, some of the retail investors and reits are at the pom to the construction, engineering, luxury ail peril getting hit hard, gold, semiconductors and a lot of technology areas are hit. that's why the nasdaq is down somme so much. nasdaq 100 down 1.4%, apple,

microsoft, nvidia, alphabet. you have some winners. amazon remains higher at the close and so do the chinese stocks jd.com and baidu despite the protests we saw over the weekend. s&p 500 down 1.5% at the close that's going do it for me on "closing bell. see you tomorrow, everyone now i'll send it into "overtime" with scott wapner. ♪ >> a at post nine at the new york stock exchange coming up in a little bit, elon versus ale the latest on musk's mid-afternoon tweet storm and what the twitter boss is accusing the company and its ceo of doing case and alex, you know who they are, back with us as the social soap opera takes another turn. we begin with the talk of the tape the big slide in stocks, protests in china over covid lockdowns bring those risks back