problems we see plaguing twitter. for example, he's calling out apple and some other brands saying they don't like free speech because they won't pay for the ads. >> although remember that time long ago when everyone was like oh, twitter's going to shut down tomorrow remember that? >> still going >> it was like three weeks ago it's all over, and still here. nobody said sorry. steve, thank you appreciate it. that does it for "the exchange." "power lunch" with seema mody and some other guy starts right now. welcome to "power lunch. i'm seema mody here's what's ahead. the bounceback china-related stocks and commodities rally. from steel to oil to copper. and emerging markets, this despite the ongoing protests but how much exposure to that country should you have in your portfolio? we will discuss. plus waning confidence the outlook gloomy the likelihood of a recession elevated the head of the conference board, he's here to discuss

inflation, rising rates, and challenges they pose to growth heading into the new year. brian? >> all right, seema. thank you very much. well, overall stocks there lower for a second day the dow, the s&p -- well, you know what? i said it and it's wrong i'm sorry, america the dow is now actually up by .05 of a percent we're in the green the other ones are coming back as well. looks like the s&p is about to turn positive as well. energy inside the market, the best performing sector led by halliburton, apa, catera and others apple, among the most volatile stocks in the session, on concerns of reduced iphone shipments due to the protests in china. i think maybe we should be more focused on the human stuff in china than iphone shipments. but hey, it's a business story >> it's a great point. speaking of china a big rebound as investors bet on the loosening of covid restrictions. the hang seng rising more than 5% the shanghai, the shenzhen up over 2%.

chinese-related etfs getting a lift as well there's the k web etf up 6% and then china's large cap fxi up 5% with names like jd.com, alibaba, pin duo duo. steel, copper, emerging markets all higher as well how much exposure to china should investors have and how much is too much joining us is patrick shibanek economic adviser at silver crest asset management patrick, good afternoon. >> good afternoon. >> so the resilience we're seeing in chinese tech today and yesterday despite the growing protests on the mainland, does that tell you investors are looking past the protests and are sort of banking on a reopening in the economy >> well, they've been hoping for that for some time i think one of the reasons you have a lot of people rooting for a comeback in china is that china's an important part of many indices, many global

indices. and so you know, investors have to justify why they are under weight on china if that's what they are so they'd like to see china come back but china's death with a whole host of issues that go well beyond the protests over covid that raise some real risk factors that people need to be aware of >> yeah, i see here that you're pretty bearish on china. so i guess the question is what would it take for you to have more confidence in putting more money to work in china is it rising vaccination levels? i was just looking at the latest data 32% of china's citizens who are above the age of 60 have not received their third vaccine dose and that number jumps to 60% for chinese over the age of 80 >> i wouldn't say i'm bearish on china but i've been critical of china for a long time in terms of being conscious of risk you go back a couple of years and there was a feeling among most investors that hey, a rising tide lifts all boats, china's growing, the risks that people mention are kind of

negligible or they just haven't realized themselves. but things have really changed on a corporate level, on an investment level on a corporate level, you know, all the consultants who i knew back in china when i was there who were advising companies on how to increase their access to china are now -- they've changed the business model and they're all advising them how to limit their china exposure on the investment side, you know, it's not -- there's the threat of lockdowns, obviously the protests that have arisen from that. but there's also the overall direction that china's taking which is much more closed. >> patrick, sorry to jump in but it's brian sullivan. not that many years ago we kind of wanted to invest in china because we felt like they were opening up, they were maybe coming a little more toward the west, capitalism was kind of creeping in. now it appears that they're going the other way. i mean, human rights abuses, work camps what we're seeing with covid,

sort of these inhumane treatments is there a question here about even if there were a lot of money to be made should we invest in a country like china until their government changes its course for me i view it as why would i want to invest there when i feel like i'm just going to be helping them do bad things >> okay. so from a practical point of view, you raise some moral questions, which you can ask about many different markets around the world but from a practical point of view a lot of these issues have raised tensions both from activists, with the u.s. government and the west in general, the prospect of sanctions, whether it be about hong kong or xinjiang or any number of things, that has to be on an investor radar screen. and if they're not asking the question what if, what if this happens, what if there's a real conflict over taiwan, what if a number of sanctions affect the tech sector or other sectors, if they're not asking that question what if, then they're asking for

trouble. >> yeah, hearing these risks, it's very convenient for people to say, well, then these companies, they just have to diversify away from china. but you know what? it costs a lot of money and countries like vietnam and india, which are doing all they can to ramp up their manufacturing capacity, they're still short of highly skilled labor and that's one of the reasons big companies like apple, right can continue to diversify. >> people have been saying that for some time, and you're right. there hasn't been a movement away there was china plus one everybody talked about china plus one and they looked around and said, well, i don't really like the plus one option, so i'm just going to stay in china. but i think covid has dramatically changed, that the lockdowns and drift away in u.s.-china tensions, has made it that it's something companies can no longer ignore and i don't think -- the fact that these protests are taking place right after the party congress i don't think is a coincidence because you know, up until then you could kind of tell yourself a story that, well, maybe things will change

but i think even within china there's a feeling like the party congress just slammed the door and there's not going to be a lot of change in china's direction for the foreseeable future and that's weighing heavily on a lot of people's minds. >> yeah. and everyone's reading the tea leaves in the meantime pat-r thanks for your expertise today. appreciate it. patrick chovanec >> meantime, as we showed you at the top of the show stocks overall are mixed the dow has actually gone positive again s&p and nasdaq are still a bit lower here but let's talk about the overall markets and whether or not there may be a silver lining forming our next guest points out that despite the four biggest u.s. stocks underperforming since the end of september the s&p 500 is up nearly 9% he says that is a good sign that a bottom may indeed -- a longer-term bottom may be forming and it's bullish for stocks overall for more l welcome in chris grisante, chief strategist at

m.a.i. capital management. we'll call it the jennifer lawrence market. give us the silver linings playbook >> i'm not pounding the table on stocks here but i think you can make a good case that we're in a bottoming process around those september lows and you've got theour biggest stocks in the country, apple, microsoft, google, amazon, they've done pretty poorly since september 30 the best is apple, up 4% amazon of course is down almost 20%. yet the market's up 11%. i like to say the market is hurting in all the right places. so we're seeing the market leaders for the last five years finally take it on the chin while at the same time the market goes up that's a good sign moreover, under the radar screen, there's lots of industries and sectors that hit lows months ago and have been building the auto stocks hit a low in july the housing stocks, the perennial whipping boy, they hit a low in june when mortgage rates were 2% lower than they

are now. and they're up about 10%, 15% since then so it looks like a healthy bottoming process that we're observing. so far so good >> so then where would you be looking for opportunity? clearly some nice moves in certain sectors in the month of november the s&p 500 has gained about 10% since the low we hit on october 12th where else do you think there could be gains going into december >> well, today, seema, i brought with us two iconic companies that are right in the middle just in the last few weeks are switching their focus from growth at all costs to focusing on profitability for a change. those are -- these are widely owned companies. one's amazon amazon doesn't have a competition problem. they have a cost problem it's just spending way too much money. so again, in the last month they have started layoffs they are cutting streaming content. they are canceling expansions. if they can continue to slowly

grow the revenues, the sales, to think they can, and just cut these expenses, profit can really explode i think higher than investors expect. the second company is disney so there's no better entertainment assets anywhere than disney. yesterday the news flash old ceo bob iger said that he would now focus much more on profitability of the streaming rather than subscriber growth. that's what investors like us have been dying to hear. so both of these stocks are down about 50% from their highs a year ago, and i think they're fertile long-term investment opportunities. >> on this radar we have the core pce deflator on thursday, and before that we have powell speaking tomorrow followed by the jobs report on friday. what would you say is most pivotal to investors going into this week, chris >> well, if i could know the answer to one question, seema, it would be how high is the fed funds rate going to get? and right now consensus is about

5 to 5 sx1/4. i think the fed thinks about that also. and if that's true, we're two to three rate hikes away from being at the top and so if we have a base forming like i mentioned, if we have the end of rate hikes approaching and investors remain pretty pessimistic like they are now, that seems like a pretty decent environment for equities, especially if i'm kind of a lonely guy saying that so that makes me feel good >> that's it for me. chris ghrisanti, we're going to leave it there we like it we got the disney in there with the new old ceo. chris, thank you very much chat with you soon >> thanks, brian coming up here on "power lunch," jenner ack's competition is intensifying and it's coming from an unusual place. on pace for its fourth monthly loss in a row. we'll speak to the analyst who says it is time to sell. plus is cash king in this market we're going to trade three stocks in three very different sectors with strong cash

balances to see which could be a buy. and as we head to break a look at shares of carnival cruise line, popping here the company revealing that cyber monday bookings were up 50% from the same day in 2019 more "power lunch" straight ahead.

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welcome back let's talk power not "power lunch" but actual power. shares of generac are on pace for a fourth consecutive down month. off about 70% this year. now, jeffries downgrading the stock to an underperform today and for a really interesting reason they're citing rising potential competition from ev biodirectional charging. what the heck is that? it's effectively using your car, your electric car, to charge back into your home. siri boroditsky is the analyst behind that call and joins us now. it's an incredibling concept, sari but i guess the pushback i would give you is if i use my f-150 lightning or rivian or whatever it is to put power back into my home because a tree knocked down a power line, then i kill my car effectively. so there seems to be -- in some way you're losing power nonetheless, are you not >> yes thank you for having me.

look, i think you're right i think there will be some cases where you still need a generator like if you live in a remote area however, the average power outage is only eight hours so you could essentially power your house and still have extra. if you do have that f-150, which does allow you to power your house for up to three days another example, you could power your house, you could drive where there is power, charge it up and come back so i think there are a lot of use case forz bidirectional charges which is going to limit penetration for generators over the long term. >> we talk to generac, they'll say we're like tesla, we've got the battery packs on the walls they're kind of getting also into if not the ev space at least sort of on the fringe of it like a tesla. that's been the bull case. it doesn't sound like that's enough to convince you to not downgrade the stock. >> no, look, 60% of their sales are from home standby.

they have 75% market share it's a very good business for them you're right, they spent over a billion dollars on acquisitions in the clean tech space. however, there's a lot of competition there. as you mentioned, you have tesla, you have google it's not where it -- >> we saw sales of generac grow by 50% last year, sarree how fast do you think ev can start to hit sales of this company? is it a fourth quarter hit or are we talking a year from now >> no, listen, i think this is going to take time we ran analysis that suggested by 2037 you should have enough battery power on the road to power every single u.s. household for one day. but you know, it's going to take time i think in the near term you're going to see negative earnings revisions just from overearning over the last two years on housing and work from home trends this is -- the bidirectional charging is more of a question on terminal value than near-term. >> there's also been some talk

about rising inventory levels of these generators why do you think that is is that tied to the economy? >> i think you had a period of time you had very strong housing market, you had work from home trends they increased their capacity. so they shipped a lot of inventory into the field and what you're seeing now is some lower orders and having to work through that inventory. they came into the year with a billion dollars of backlog and that's going to be largely depleted by the end of the year. you'll have a lower starting point in 2023. >> all right saree boroditsky interesting call on generac. been a tough, tough year but an interesting theory. i think this is the first time we said bidirectional charging on the network and i'm proud of that >> probably not the last >> visually speaking i like the idea of a ford f 150 pickup actually powering a home one day. >> this segment brought to you by ford. you know how i know it's not the last time we say biodirectional charging biodirectional charging. >> there we go >> all right up next, is seema reading this

tease? >> the blockchain. it was supposed to be at the forefront of technological innovation but now it's home to a growing number of megafrauds with some estimates pointing to more than 4.4 billion in arejdlleged scams this year. plus green backed buys we'll look at some names rolling in cash and trade them in today's three stock lunch.

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welcome back cryptocurrency investors have lost billions over the last year in declining asset values and in several high-profile collapses add to that several mega fraud cases stealing even more on that note eamon javers joins us with the latest on this story. it just gets worse and worse when it comes to crypto, eamon >> that's right. the crypto analytics firm trm labs tells cnbc that it has identified seven fraud schemes operating on the blockchain that have each take nen at least $100 million just so far this year. now, the largest alleged fraud they've spotted here has take nen an astonishing $700 million so far this year there you see entity 1 on the left-hand side of your screen. the smallest has taken in just over $100 million. trm says investors or others have sent as much as $4.4

billion to this group and a handful of more widely identified frauds that exist right now on the blockchain. so some of the fraudulent investment opportunities they say tuesday returns as high as 2% per day and in many cases trm says the investors into these crypto schemes may not yet know that they've been taken advantage of and many of them may not be able to get their money back the firm says it identified these entities as frauds based on a number of indicators including advertised returns above a realistic threshold, advertised source of profits, pyramid-like referral structures, purported operators of the scheme, and also the website's own meta data. now, trm labs says it's not naming these organization that's are behind the alleged frauds so as not to interfere with ongoing investigations the firm says it has communicated what it's seeing to law enforcement and that's for the people invested in these steemz, there's no telling when they'll see their money back if they ever do, seema. >> the question is what are lawmakers doing about this clearly not enough if we're

continuing to see more fraud year over year >> yeah, absolutely. there's a lot of interesting crypto on capitol hill both from a regulatory perspective but also, seema, frankly from a fund-raising perspective over the past couple of years crypto is he seen as the big new money bags coming to washington, opportunity to raise a lot of money so a lot of lawmakers are looking at it as a fund-raising opportunity as much as a regulating opportunity now we'll see sort of where everything shakes out in the wake of ftx. i think that dynamic might be changing pretty dynamically here in the next couple weeks >> i think safe to say that will be the case. eamon javers, thank you. appreciate it. >> you bet >> you wonder when we're actually going to get an update on ftx >> right >> where is he what's going to happen where are we in the process? it's just gone almost xlootly silent >> i believe he's speaking to our co-worker andrew sorkin. >> at the deal book conference but from an authority's perspective every day weshould get some kind of an why upt. >> but because it's related to

crypto -- >> hundreds of thousands or more than i amillion people including some small investors that are out of money every day. where's my money at least can i get an update on my money if you're out there, regulators, let us know something. all right. bertha coombs is going to let us know something she's got a cnbc news update bertha >> hey, brian. here's what's happening at this hour within the last hour the white house said president biden is confident that there will not be a nationwide freight railroad strike next month. after meeting with biden today congressional leaders from both parties are saying both chambers will move quickly to impose a settlement the unions say washington's intervention would sicken, infuriate and disenfranchise railroad workers a survey of last week's walmart shooting -- or a survivor rather of last week's walmart shooting is suing the retailer for $50 million the store worker's suit accuses walmart of continuing to employ the shooter as a supervisor even though he, quote, had known propensities for violence, threats and strange behavior

and british royals are coming to america. prince william and his wife kate will attend an award ceremony tomorrow in boston a few days later prince harry and his wife, meghan, will make a high-profile appearance in new york reuters says the british press will be comparing the u.s. popularity of the two brothers after their falling out. meantime, prince william has to mop up being very enthusiastic about rooting for england and getting grief because he is the prince of wales. >> and right now wales and england -- and by the way, nobody tell us the scores. usa is playing as well but the other game is england vs. wales. so how do you, bertha, root against -- if you're rooting for england you're also rooting against wales. you hope for a tie >> i think he was trying to just sort of say hey, we're all behind you but the folks in wales were saying wait a minute, what about

us it gets tough when, you know -- when you're talking about football, soccer people are very passionate >> well said no, you're right by the way, popularity contest, it's hands down going to be prince harry and meghan over prince william and kate. don't you think? they just have -- they have that star power >> what? >> yeah. >> in a good way or -- a reverse popularity contest >> i'm just saying if you were to rank -- >> over kate middleton you know kate middleton, by the way, used to date one of our former colleagues before she got married. >> good to know. >> did you know that didn't know that i'm sure he appreciates you just shared that. >> i think it's public all over the internet thing random but interesting ahead on "power lunch," the consumer conundrum some signs pointing to a relatively healthy consumer but at the same time more red flags as well, seema >> that's right. plus today's working lunch we will hear from the head of amazon's aws business about the future of cloud and the business opportunity there. "power lunch" will be right back

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90 minutes left in the trading day. we want to get you caught up on the markets, stocks, bonds, commodities and the state of the consumer let's begin with the markets, though stocks are lower no rebound from yesterday's big

sell-off but we are off the lows. edging -- waiting for fed chair jerome powell to speak tomorrow. the dow is currently down 54 points apple helping lead tech lower. concerns remaining about production in china and whether apple can recover those lost sales. now to the bond market, though rising yields. that continues to be a story at least over the last 24 hours. ahead of fed chair jerome powell's speech. rick santelli tracking all the action in chicago. hi, rick >> hi, seema indeed, yields are moving higher and they're moving higher in a way we don't normally see. look at a two-day chart of two-year note yields you can see they're slightly higher up four basis points but the further down the curve you go the bigger the yield gains get. look at the two-day of tens. they're up over seven basis points so we are actually seeing some steepening for a change. and even though the twos to tens curve is inverted it is a positive sign. now, if we look at bunds you can clearly see that they were down

seven basis points to a yield of around 192 that isn't far from some of the lowest yields they've in the last couple of months. and one of the main reasons is that we see that various parts of germany's inflation rates are coming down. and they're not coming down quickly but they are coming down as a matter of fact, month over month changes were all negative. the blended yar over year was 11.3 vs. 11.7, which was the high water mark. if we look at what's going on 2s to 10s you can see the third day of light steepening is today considering where the markets are trading and that is coming off four decades of the most inverted the yield curve's been at minus 78. the gains are small. we're at minus 73 currently. and finally here's a two-day chart of the euro vs. the dollar the reason it's interesting is with less inflation in various parts of germany we are seeing some jump to the conclusion we've reached peak inflation

so the euro is coming down in price. and do remember this is the first time from an intraday basis that we are starting to see some serious selling in the euro currency which really has taken away many of the gains in the dollar index recently. seema, back to you >> euro at 1.03 against the dollar let's turn our attention to energy where oil slightly higher on the day the markets doing a balancing act between demand from china and output from opec pippa stevens here with the full story. hi, pippa. >> that's right, seema, this is an uncertain market with opec deciding today to make sunday's highly anticipated meeting a virtual one rather than in person as initially planned according to a source. that's fueling speculation around what the group might do, whether it will roll over the current policies or implement deeper production cuts amid the recent weakness in oil rbc's halima croft saying opting for no drama seemingly increases the likelihood of a rollover decision she added that it shifts the

focus to monday, which is when the eu ban on russian oil goes into effect. now, ahead of that members are still trying to agree to a price cab which would be softer than an all-out embargo but so far they haven't reached an agreement and time is running out. let's check on prices. wti up 1.7% at 78.54 brent crude at 83.52 for a gain of .4 of 1%. with nat gas up about 1% seema? >> there we go pippa, thank you now to waning consumer confidence the u.s. consumer confidence index fell to a four-month low in november while inflation expectations jumped to their highest reading since july is there any turnaround in sight? let's turn to steve odeland ceo of the conference board and a cnbc contributor it's good to have you on what would you say is the biggest move here behind the confidence number dropping i mean, is it inflation? is it rising rates >> yeah, it's inflation. clearly, seema

thanks the confidence index declined again. and as we know that there are two components to it, the present situation index and then the future expectations index. both of them declined. but the biggest worry for consumers is the future and what's going to happen all of this ties to inflation and as we know food and gas are front of mind for all consumers. ironically gas prices and the consumer confidence index have been tracking very closely over the last six months. so we saw it decline very heavily during the summer when gas prices rose. then we had consumer confidence bump up a hair in september when gas prices came down a little bit. now the consumer confidence index has gone down again. the interesting thing here is you see differences in demographics so people who are 55 plus rate their confidence lower than the younger generations. and of course people who are making less money, the lower socioeconomic groups, also are much lower in confidence than

the other groups one other thing is this is very unusual to have such great confidence in jobs, which is, you know, typically where you see in a recession, you see the jobs get killed. it's not happening so even though consumer confidence is down they're having great confidence about the job market so there are some mixed signals here >> is it the confidence in the labor market that you think is behind some of the record spending we saw, steve, over the holiday weekend for not only black friday but cyber monday as well that's tearing a very different story about how xurmz feel about the economy, you could argue >> well, it absolutely is. but you see differences by retailer too so the high-end retailers are all doing great, as we know. the walmarts of the world. amazon are doing well. it's the middle that are getting killed from a retail standpoint where you're seeing declines we're seeing overall sales for the holiday season and for cyber monday up about 2.3 to 2.5%.

in a 7% to 8% inflationary period that's actually lower volume which also is driving bigger discounts you see retailers putting more of their items on deeper discounts than they did in prior years. but if you would expect to see if inflation was reflected all the way through you'd expect to see 7% to 8% increases and you're simply not seeing that so the question is how sticky is this inflation going to be, and consumers expect it to continue. and for food prices and gas prices to stay particularly high >> got to get your take on china. as former ceo of office depot, we're clearly seeing analysts bring down their q4 iphone estimates for apple. but what do you think the impact could have on retail, especially big names like office depot that import from china? >> well, you have these protests, which last time we saw protests like this as we know was tiananmen square in 1989

you know, the chinese have a history of putting these things down but the reason is because of the shutdowns. you're starting to see some reaction to their zero covid policy the problem with this for all of us who are in america dependent on china as our manufacturing source that's she's shutdowns continue to roil the supply chain. so you don't know what's going to happen to whetherit's parts or whether it's completed goods like iphone 14s. but these are causing great shortages. ceos are very concerned. and i think what you see as a result is ceos moving very quickly. as quickly as they can to more friend shoring or near shoring meaning moving manufacturing out of china as quickly as possible. but that's going to take, many, many years we're still going to have a period of time over the next couple of years where it depends what the chinese policy is and whether you're going to have any product to sell. >> i guess, steve, why now china's record on human rights has not been great we talk about it all the time.

i understand ceos are concerned about supply chains. maybe if i'm a ceo -- and i'm not trying to be moralistic here but maybe i'm more concerned about 500 people including children being welded inside their own apartment building for ten days potentially with no food or water. right? at what point does business take a stand to china and say listen, until you clean up your act we're not going to give you any more money or business is that even possible? >> you're exactly right. and these are the conversations that are happening in every boardroom that has businesses in china. in coastal areas you don't see so much of that. in the interior you see more of it a lot of of people are manufacturing only in coastal areas. so they're seeing we don't -- the issue is, though, we know now what's happening and they've got to move. but to move a chip plant it takes many years and $100 billion, as we know. the u.s. government has stepped with up with a lot of money for incentives you go down our entire supply

chain every part of every electronic, everything we make using china. it's going to take a long time to make this move. >> you've got a lot of companies that will say a lot about political stuff here, you've got all this stuff going on in china with the uighurs and forced labor camps and people getting locked into homes, literally taken away in the middle of the night and they've gone silent. >> ceos are speaking out and businesses are moving. but it is very hard to pick up a factory and to move it and then what do you do? do you do a russian style exit which is another thing that is being discussed in all of these areas. so these are big ethical areas of discussion but they all are happening, brian >> at least there's a little light there steve odland because i think business and money's going to be the only thing that forces real change steve, thank you still to come, it is today's working lunch. mr. jon fortt is here to bring us his interview with the head

of amazon's aws. and for more ideas done not miss the second week of cnbc pro week that is today at 3:00 p.m. eastern time tom lee will join frank collin with his thoughts on the market and more take questions sign up at cnbc.com/protalked. by the way, tomorrow is leon cooperman. >> which you are moderating. >> thank you leon and i will take your questions. we'll laugh and we will cry. it's going to be a great event sign up today. we're back after this.

all right. welcome back amazon's annual cloud conference is back in full force for the first time since the pandemic. and aws, amazon web services, is introducing features it hopes will keep customers loyal in a slowing economy. this week jon fortt sits down with the unit's ceo. >> yeah. that's right, brian. it's been 364 days, actually, since our very first working lunch with adam slipsky. things have changed. aws is absorbing spikes in the cost of energy and tech labor, making the case that its scale and experience in cloud technologies make it a port in

the storm of a volatile economy. it's alsonearly 18 years since lipsky first joined the company to work on aws after an executive recruiter called him with a wild-sounding idea. >> she was explaining to me something about turning the guts of amazon inside out so others could use it and i didn't really understand what that was all about. i was thinking are they going to let small -- e-commerce merchants use aws's -- i'm sorry, amazon's e-commerce abilities? so i talked with her and i guess i didn't completely mess it up because then she had me come in and talk with andy jassy and after that talked way number of the other senior leaders at amazon it seemed like one of those a-ha opportunities where i don't know if it's possible or not but if it is, if we can do this it could really be of enormous benefit to customers and turn into a really significant business at amazon so that was the promise of it. that was the dream of it at the start. >> yeah. and it has turned into a

significant business today selipsky's announcing new aws features including clean room, a service that will let two companies run analysis across their sensitive data and draw out insights without sharing the proprietary information. he's also announce aws supply chain, software to help customers better track goods and balance inventory. >> amazon.com does have over a couple decades of experience managing a very sophisticated and complex set of supply chain issues and of course aws has deep expertise in infrastructure and also machine learning. and i think bringing together all of that experience with all of thattechnical capability is unique one example of that is machine learning so we're able to look at the data that you're bringing in from lots of different systems for this new supply chain offering including data from s.a.p., for example, a lot of other sources, other e.r.p. solutions. we're able to run machine learning over it to really

figure out how to build the right data models and how to harmonize and normalize that data so it can all be analyzed, you can figure out what you need to do with problems like balancing inventory across your system >> selipsky also told me aws is in a temporary hiring freeze right now, they'll be closely watching the economy for the next couple quarters these announcements today part of a broader shift where customers seem to be getting more excited about software that soflsz a problem today vs. affordable tools they can use to build their own solutions, guys. >> the fact that they're investing in aws and bringing in new innovations, does that tell you they're confident about growth going into 2023 >> well, they're confident, selipsky said, about the continued adoption of the cloud. this idea that the big spike in cloud adoption is over he says that's not the case. but they're trying to tamp down on hiring more people. he said they hired plenty over the last couple years, so they're taking a pause for now he wouldn't tell me how long of

a pause. that's why he's waiting to watch the last couple of quarters. >> they don't break out how big they are, right? does amazon say how much it does in sales because i wonder, if aws roughly was its own company, like would it be like the 20th biggest company in america probably? >> it would be way up there. it's actually one of the biggest enterprise technology companies out there on its own and right now it's the profit center in amazon when they do earnings they break out. that's where a lot of the profit's coming from and it's subsidizing retail during this difficult time the profit margins have come down a bit it's around 26.3% operating margin i think compared to 29% a year ago they're absorbing a lot of that inflation spike on behalf of customers saying we can be that port in the storm for you. >> interesting he's sort of anime mai guy he led tableau's acquisition by salesforce, right? >> that's right. and came back to amazon. he was there, left and came

back >> jon fortt thank you. coming up, today's three stock lunch. we will lay out some of the names with strong cash balances. do you hide in these cash kings amid sloown rrs wdwoieor should you be cashing out that's next. ♪♪ energy demands are rising. and the effects are being felt everywhere. that's why at chevron, we're increasing production in the permian basin by 15%. and we're projected to reach 1 million barrels of oil per day by 2025. all while staying on track to reduce our carbon emissions intensity in the area.

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it is time for a three stock lunch. today we are talking about cash trade. according to morgan stanley, paypal, merck, and broadcom are three stocks that are flush with cash they've got sufficient liquidity, and they offer a hedge position with potential for growth is it time to buy into thinks name quinn at th tetro is with us. here's the thing about paypal. anytime you buy anything online, paypal pops up, but the stock can't get out of its own way what is the issue? >> that's a good question. it's not just online, but most of payments between people and friends. obviously they're using venmo as well they have the brand power. they're facing a couple things, sully. first, they were ridiculously

overvalued, as well as some significant headwinds regarding regulation and that's going to be happening there now i think the risk will reward is now fantastic trading at a valuation that's attractive, 16 times forward, e.p.s. set to grow at 16% we're talking about almost $10 billion in cash and a very attractive balance sheet. so risk/reward i think is phenomenon all we're a buyer of the stock, and certainty will give it time and room i don't think this is an overnight sensation. it's going to take time to repair, but one to buy here in the trash can. >> what about merck? >> yeah, so flip to the other side, right? this is a company in a bull market this stock has been on a tear this year, most importantly for

the technical analysis folks will you there, breaking out of a multi-decade base. the longer the base, the higher in space as luis always said this is also great, also about $10 billion in cash. they can continue acquisitions, and also pays a 2.5% yield so a very attractive name. maybe don't chase it at these levels, but any pullback i think is a buy >> finally, different from either, thesis on broadbroadcom? >> i'm not a fan they're basically trading around 13 times forward, but their growth rate is not attractive. the biggest concern for me here is the debt levels the debt to equity is almost 2

to 1 so they've got an attractive yield, but they seemed to have financed that yield over time. so this is not one i'm interested in. i would stay away. i think there's better opportunities out there. quint tetro, three-stock lunch, thank you very much. up next, we have the nasdaq breaking below 11,000, and also travel in focus. it's costing the economy billions billions we have that story, next ♪♪ we all hav.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,

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welcome back to "power lunch. it's been about a year since the u.s. lifted restrictions on international visitors, but that has not opened the floodgates for travelers. that's because, on average it takes 400 days to get a travel visa to the u.s. brazil, india, mexico are experiencing the longest wait times. that's a lot of money left behind they tend to stay longer at hotels, and it's why travel ceos are urging the biden administration to speed up approvals. >> the travel industry is working closely with our allies on capitol hill as well as the biden administration, to help them understand the consequence of these massive visa wait time delays we're seeing in too many markets around the world we're losing millions at a cost of $12 billion >> i spoke to the ceo of trip

adviser, he sells me clearing up have issa backlogs is a big part of return to go a strong and robust travel and hospitality economy. the states that rely most -- florida, new york and california this has been a big topic. even american airlines mentioned delays on is earnings call >> steve has been doing this thing on legal immigration i get it, but so much of this stuff is supposed to be automated, right is there still so many humans involved shall. >> a lot of humans are still involved in visa approvals what the state department is doing, sending more officers to the consequence las in different parts of the world so they can get more people approved to come to the u.s >> it's an unbelievable story, because it's so necessary from an economic perspective, from a healthcare perspective, about

nur nurses -- and now people can't visit. >> that return on investment changes, right, when you can't get individuals here in the u.s. a lot of fun. >> always fun. i'll be back tomorrow. >> so am i. >> yay >> that does it for us on "power lunch. "closing bell" begins right now. stocks stuck in a range a. investors look forward to the fed speech tomorrow from jay powell welcome, everyone torque "closing bell. take a look at where we stand in the market right now, dow is down at 53 at the low of the day we were down 187, so it's been a choppy day, the nasdaq taking a hit again. the s&p 500 remain