landing priced into the stock market. >> that's the question you and i have every day, what's the number next year for s&p earnings >> a serious recession, 20% happens all the time we haven't seen one of those really since 2009. remember that year, of course. >> i do. >> that was a serious move to the down side. we're not priced in for that, but flattish we're priced in for. >> that's going to do it for us on "squawk on the street." time to send it to "techcheck. ♪ good wednesday morning welcome to "techcheck" i'm carl quintanilla with jon fortt deirdre bosa has the morning off today. more with what to do with amazon and shopify. plus is the real figure behind tesla's down fall the fed? elon musk seems to think so. we'll discuss. finally, call it a golden ticket youtube reportedly beating out apple, amazon and others for the

battle for sunday nfl ticket don't miss the latest on that perhaps this hour. jon? >> we want to start with the ecommerce warning you might have missed fedex reporting results overnight, and warning it would cut additional costs after profits took a hit a key factor of slow down here in the u.s. is ecommerce there may be more pain ahead if pre-pandemic numbers are anything to go by. take a listen. >> i think the main macro issue in the united states is really the ecommerce reset. if you were to just follow along here, prior to the pandemic, ecommerce represented about 16% of retail. during the pandemic it peaked at 22%. and ever since, it's been kind of going down. we are probably 18 or 19% right now, it's still higher than 16, but not quite at 1622, that's part of the reset going on in

the u.s. domestic package business. >> i don't know that we should take from that there's an expectation it goes back down to 16, ecommerce still gaining share but at the same time, overall consumer demand slowing down that hurts this pop, 4.5% in fedex this morning seems less like a top line result and a bit sobering for some. >> especially if you broaden it out and start thinking in a manner that companies are going to continue to report like this in the weeks ahead, jon, that they see dark clouds ahead, they'll cut costs in advance of that to stay ahead of it it's not necessarily a long-term bullish picture for corporate earnings but raj has talked in the past about the longer term structural move. we talk about it, the amount of detail that's digitally based. over time that's going to grow and you're going to have more goods shipped to your house

nchts nchtsz. >> right now i'm caught between what costco told you on "squawk on the street" yesterday, which is sobering about christmas not being that exciting and a slow down in things like furniture and apparel, et cetera but then on the nuike side last night your prestige retailer working down their inventory so is this just a nike thing are they exceptional in that good news or is the grinch lurking in the background we'll see. >> for more on the ecommerce landscape, let's bring in tony who has previously held executive roles at e bay and nike we can start with nike and ask if you think there's something unique about their footprint that allowed them to do what they did. >> i don't have my grinch costume, so i can't follow up to john jon's comment

but i think we need to slice out the consumer segment in particular and nike does target a slightly more premium consumer. as we've seen for the past 12 months even with the turbulence in the market, the premium consumers do seem to be more resilient to the downturns so i'm not surprised about nike. i think there's other trends as well the fact that people are getting back out and sticking to staying out now, that's a benefit for nike the general trend on help benefit to nike, gyms are back open again so i'm not really too surprised to see some positive news coming out of nike given some of the other news we've heard recently. >> north america up 31 that beats the street consensus by nine points and i have to imagine that in terms of cycles you'd want to be in a period where you have growth returning or at least some sort of resilient consumer

base and inventory to match it, right? >> no question i think there's a few things that nike has done to benefit and well position them the expansion of the body types and sizing so going after a broader consumer, not just people who have an athletic body. i think the trend fashion wise towards street wear and the popularity of a lot of the sneakers you've seen that slow down with folks like stock ex, but the trends seem to be here today, the casual way people dress to return back to the office. one of the perks is i don't have to go back and wear the clothes i wore so i think all the trends together helped to position nike i can't emphasize enough that nike does target a slightly more prooem customer as well. >> let's step back and look at broader tech stocks talking

about consumer demand, and enterprise grade software to help businesses capture what they can if m&a turns out to be a key growth ingredient in 2023, who's best positioned to buy out there the tools that companies are going to need to serve consumers and under what conditions should they buy looking through, companies like cisco, which is rumored to be stocking hashing corp. oracle, seemed to be digesting well maybe in '23 ready to go out again. even ibm are those companies in a position to do m&a, fuel growth in '23 with the valuations coming down, even among public companies sub-10 billion >> the greatest thing when someone is a deal maker is having a lot of money and everything being on sale the behavior of consumers is no

different in many instances for the behavior of corporate buyers, strategics or financial equity folks, financial buyers i think on the strategic side the folks that are best positioned we should look to who has made acquisitions, especially in the back half of this year. many people would likely point to the fact that the corporates have bigger issues on their plates but i think there's a little bit of separation within the walls of a corporate especially those that are positioned and currently doing well, if they have a large cash base, cash on their balance sheet. there is the ability to focus in on the macro headwinds, focus on top line growth or maintaining top line and then focus on cutting expenses to manage to the bottomline i think also there's an entirely different group, the corporate acquisition group, the corporate development group and those folks typically have their eye towards strategic acquisitions that are going to fill a product

gap or be able to add to an existing product offering. and i think eye is towards the price. that's the key right now in this market is price. sellers don't realistic expectations right now. >> what's that going to take to truly take off if you look at the coupa and bravo deal, it said hold out for the 90s and it took 81 is it going to take another downdraft in '23, q1, where companies go we can't expect a stock price rebound or late stage private companies saying there's no way we're going public in '23 or possibly even '24, let's look at the buyout? >> that's the way to think about it in the case of coupa when it was rumored that vista was looking to make that purchase, that's when the existing shareholders wanted to hold out for a higher price. again, look, in this

environment, i think these existing shareholders are thinking about this the right way. they're like, wow, we're an incredible company we have an incredible position within our market. we're looking at growth for this year and potentially growth next year so it's really hard to digest the valuations that we've seen hit based on all of the macros i think it will take a little longer for a lot of these sellers to accept the fact that this might be the best outcome and not continue to see the valuation degrade over time. however, i would say we're going to see some important feedback from the economy probably around mid '23. so end of q2 and who knows, these -- if the economy starts to come back, depending on what happens with the recessionary fears we may see these companies increase their valuations maybe not to the highs we've seen over the past 12 to 24 months but closer.

so right now a game of who is going to be able to make that offer that still provides the discount, whether it's a strategic buyer or financial buyer and those sellers willing to accept that offer. >> that's interesting. it might explain, certainly, what some of the buyers in the mix right now are thinking that maybe this is as good as prices get. although i do wonder whether or not you think price or regulation will be the biggest impediment for m&a in '23. >> thanks for saying that. we've been talking about this since i've been coming on, and i think in the biden administration in particular, we've seen both signals and actions showing that there will be increased scrutiny and these deals are not a slam dunk. i would say even the deals that have already been announced are not slam dunks looking at the scrutiny that meta is even receiving for their proposed acquisition in the vr space. these are the types of deals that i would argue 24, 36 months

ago, those deals would have completely flown under the radar. but now we're seeing increased regulatory scrutiny. so i think that's true it's 23409 only a matter of can a price be agreed to to get the deal proposed and papered but will the regulators actually allow that deal to take place. that's the bigger issue. and we'll look to microsoft and, you know, activision blizzard. those will help give us some signals. >> certainly the tent pole of the moment lo great stuff as always, look forward to talking again soon. >> thanks for having me. turning to tesla, shares on the move in a tough month for the name and a report this morning another wave of layoffs is coming next quarter at the auto maker, along with a hiring freeze shares hit a new 52-week low as criticism continues to grow around the impact of ceo elon musk's twitter obligations

if you ask musk, the stock's fall can be blamed on the fed with the ceo reporting, in simple terms, as bank savings account interest rates which are guaranteed start to a3r0e67 stock market returns which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing the stocks to drop does that mean the fed was also responsible for tesla's meteor you ic rise over the past couple of years? >> indeed, anyone who wants to cast apuspurpgss would point to government subsidity and free capital, but it's hard to say, hard to be one reason for anyone's success or failure. >> he was fortunate to set up the arrangement he gets the windfall of tesla stock if the

stock reaches a level. if fed action has such a big impact on tesla's share as he seems to imply. >> embattled ftx founder sam bankman-fried arriving at court in the bahamas a few moments ago for his extradition to the united states. he should arrive in the u.s. later today where as you may know he faces eight federal charges including wire fraud, securities fraud, and money laundering a picture of him going barck to court in the bahamas >> a lot of people looking backward to seeing what happens to him reports this morning the battle over nfl sunday ticket might be over and the winner is not apple. we will discuss next "techcheck" is just getting started.

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holdings and door dash the firm calling amazon the best play on global growth in ecommerce advertising and cloud services and alphabet a bullish picture when it comes to revenue growth and overall revenue ambitions. carl sunday ticket could be coming to youtube tv cnbc is reporting they're close to inking a deal with the subscription only package of games long head by directv while the journal reports an announcement may be made as soon as today it supposedly will not include nfl media, and the league had been shopping alongside sunday ticket rights trying to figure out the price tag, terms still being negotiated but directv has paid $1.5 billion a year since 2015 and the nfl was seeking even more for sunday ticket between 2 and $3 billion annually john, i got to know what you

think this means for alphabet overall? >> let's talk about it not just alphabet but there's talk in the streaming space about the end of this bull market in golden age in scripted content, right there's pull backs happening there. we're not going to buy everything apple is still buying more but they were conservative to begin with so if the nfl can get more money for this live content, what does that say about the next few years? carl, four or five years ago, the nfl was in the toilet, or so it seemed. they were wrapped up with trump and kneeling it seemed like go woke, go broke was the story. but they're not going broke, carl >> definitely not. referee was a controversy. but that said, others are definitely staking out their spot on the board. by that i mean netflix and their willingness to try to make this work, even if we are in an age

of peak television without live sports >> it's -- things change so quickly, though, and you wonder if some of the streaming content was kind of like meme stocks, crypto, a lot of opportunity out there to watch a lot of stuff but what has the real staying power? you know, things like that immaculate reception from franco harris, rip, about to get his number retired by the steelers, just passed away those are cultural moments meantime, software, get back to that, a key area of focus for tech investors headed into 2023, given so many discounted names sector falling more than 30% this year while most bet on big names like microsoft, our next guest highlighting smaller alternatives worth watching as well calling out cloud fair, gitlab

those are among his top picks going forward. sterling audi joins us now great to talk to you tell me about what some of the smaller picks have in common that distinguishes them in a tough economy. >> a common thread in terms of our top picks and it's focused around our -- our thought is that you're going to see tech budgets are going to be down next year. we had to put an estimate to it, down 3 to 5% in light of that, the things to get green lighted, the projects, are the ones that are quick to install and quick to save companies money. when you look at these companies that's what they do. they can give you pay back on the total cost of the project in less than 12 months. that's the type of thing that not only gives your cio comfort but your cfo comfort. >> i noticed a couple of different things about the name.

if you look at them, they're horizontal things you use for any business to make it more efficient. but look at samsora and pro corps those are industry focused. construction management, logistics, is that a decent way to look at it if you're an investor thinking about what the back office stuff, the cyber security stuff that everybody is going to need and then are there industry specific digital transformation stories that are succeeding >> there are there's a couple of industries and construction is probably the easiest one to wrap your head around it's the last industry in our entire economy to go through a digital transformation that's why we like pro corps they're going to help that industry unlock billions in trapped capital. they're going to make businesses a lot more sufficient so they can hire, invest in tools and take that industry to a new

level. you might say if we're going to go into a recession or in a recession, why would you want to be investing in something that tailors to a cyclical industry like construction. we're so early in the adoption of their technology that they can continue to grow the other common theme among our top picks are, they're really centered around things that are not licensing, gitlab is the only exception the reason why we focus on that is if we're going to see continued layoffs and unemployment tick higher the next couple of quarters we'd rather invest in names that are tied to pricing models that are not head count related. >> what about fin tech i don't mean fin tech for consumers, i mean fin tech for smb and possibly enterprise. names like build out come, intuitt, which has had a good quarter just a couple weeks ago. are those names you specifically

don't name because you're expecting a rough year coming up or are they worth keeping an eye on >> they're worth keeping an eye on my partner is the one who does the -- work into it, and he likes the name i understand why it's one of the best compounding assets in software over the last decade or so you have tax, which is a durable franchise and profitable as well as they continue to expand not only what they're doing in the back office but bridging the gap to the front office with mail chimp, so there's room to grow so you want to pay attention to them. >> your point about head count and software budgets is interesting. in general, would you expect budgets to be inverse liquor l - inversely consrrelated with head

counts or do you move with your head count >> you have to peel back the onion another layer because a portion of the budgets are geared towards the head count so they tend to be highly correlated that mix of spend when you see the head count go down, there's an increase in spending on some of your tools, software ap applications, et cetera, to increase automation and productivity because you have to do more with less you'll see that across a lot of different industries this year. >> that's a lot to chew on, investors to add to their post christmas list sterling audi, thank you >> thank you. big tech regulation fell flat for many this year, will 2023 be the same we'll discuss that as we are sitting shy of session highs dow is up 512.

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i'm jon fortt with carl quintanilla. checking in on the markets half past the hour. just a good day so far to be long all the major indices up about a percent and a half which translates to just over 500 points on the dow. a news update now. >> here's what's happening right now, nike shares on fire, up over 10% and on track for the best day since june of 2021. that follows better than expected profit and revenue for the apparel and footwear giant they trimmed excess inventories during the quarter existing home sales fell 7.7% in november, according to the national association of realtors, a low supply of homes for sale kept prices high and rising mortgage rates discouraged buyers higher interest rates are an issue for auto buyer elevated car prices and higher

interest rates have pushed the average payment for a new vehicle loan to $718 for december that's $47 higher than a year ago. and the firm says that will result in a sales decline for the month. two major movie theatre chains talked about joining forces amc said in an s.e.c. filing it held talks with lenders to bankrupt city world about a takeover. amc said there are no talks happening right now and it's uncertain whether those discussions will resume. carl, back to you. >> contessa, thanks so much. 2022 began with big hopes for tech regulation. "the washington post" forecasted a watershed year and others calling it the do or die moment for regulators to take action. that said aside from ftc challenges to deal like microsoft activision blizzard, there hasn't been alot of action and while some were holding out hopes for news members in

congress with the new spending bill, maybe there's next year. ylan mui joins us with more. >> reporter: that's right. no coal in big tech stockings this christmas several major proposals were left out of the sprawling government funding bill that congress is vote on this week. those include the american innovation and choice online act, the open app markets act, and the kids online safety act that would have required special rules and tools for children under 16 the emission of these provisions is a win for the tech industry, they lobbied against them and the chamber said today the bills didn't move because no voters were marching on washington demanding people make changes to amazon prime or their iphones. but lawmakers swear it's not over marsha black burn and richard blumenthal, cosponsors of some

of the bills said make no mistake we're resolved to reintroduce and pass the legislation in the next congress on behalf of young people who continue to be traumatized online and app creators stifled by big giants. and a bipartisan group of senators today unveiled a bill to make sure algorithms and data content available to the public and provide more transparency to independent researchers. the short version of the story is the grinch can always come next christmas. >> but can it come next christmas? next christmas we're less than a year away from the 2024 elections. and i mean, is their attention going to be elsewhere. we had the weird midterm cycle where the sitting president's party actually did pretty well so that's a lot to get done in 2023, what does history tell us about the likelihood >> next year the dynamics are going to be interesting. the reality is the reason the

bills didn't move this year is because democrats weren't on board with it. there were divisions within the democratic party how to move forward. so that's one of the reasons the bills ran into sticking points even though there was bipartisan support. next year you have a house controlled by republicans who made tech regulation and going after big tech one of the hallmarks of their corporate oversight. could there be more strange bedfellows that come together to push these bills forward perhaps. but we'll have to see what the relationship between republicans in the house especially and democrats in the senate look like in 2023 it could be a weird issue that gets everybody on board but we'll have to wait and see. >> who likes social media and hates it depends on who owns it. i don't know thank you. despite a slow year for tech regulation and legal action we saw movement in this week.

mark zuckerberg took the stand this week and epic games reached a $520 million settlement with the ftc over children's privacy. will '23 be the year of action joining us now cnbc contributor casey newton of platformer what are the odds they get something significant done on the legal or regulatory side in '23? >> i'm really a pessimist about this stuff, i hate to say it if we wanted congress to act, this was the year to do it you have one party controlling both the executive and legislative branches there had been an 18 month investigation into the companies, a lengthy report that laid out a road map and nothing got done so all of that becomes more much difficult next year and republicans and democrats are still in different places on this stuff. >> it seems like, doesn't it,

given elon musk's release, collaboration whatever you want to call it on the twitter files. that gives fodder to a republican led house to do some hearings and investigation but are they going to do something that then hurts elon musk's twitter as a result of it or is it more about getting the political points off of having put this stuff into the spotlight? >> i think it's going to be more the latter i think you're right we are going to see a hearing next year i think republicans would be extremely happy to bring up elon musk and, you know, tweet little video clips of themselves interacting in the halls of congress but ultimately it's going to be theatre because at the end of the day, republicans have not really put forward a proposal to regulate tech that could pass both houses of congress. >> that's interesting because, you know, one of the -- i guess optimistic if you're looking for regulation theories was this was

one area of government where there was -- that there was overlap. that there was ways in which you could get regulation that would make both -- actually the extreme left and right happy but you're saying you don't think that's going to come together >> it just seems like it hasn't so far this year now what i would say is we are still going to feel the effects of tech regulation no matter what happens in the united states because europe has stepped up there was a ton of action in europe this year i think over time it's going to have a trickle down effect where the phones we americans are using are greatly affected by what's happening there. >> have you been impressed by the way in which the senate and state governments have been aggressive on tiktok do you consider that to be the tip of the spear of regulation for the moment >> it's one to watch you have republican governors stepping in and saying don't put that on our government devices

the senate recently passed a vote saying the federal government should do the same. i don't know exactly what's going to happen there. we know that bite dance, which owns tiktok has been in lengthy negotiations with the council on foreign investments in the united states over what to do. if i were bite dance i'd try to get the deal signed as quickly as possible. if not i think we'll see more of these state level bans. >> am i the only one that finds it weird that you're allowed to have tiktok on a government phone? that seems like the last thing -- like clash of clans can you have that on a government phone? is this perhaps sort of a giveaway that doesn't mean much? a red herring, straw man for them to say no tiktok on government phones, who cares tiktok will be just fine without that it's the rest of the phones in the u.s. that matter, right? >> i think there's a lot of truth in that. i think that for the most part

this is empty posturing. but look, at the end of the day, it is true that we don't -- we cannot say for certain that the chinese federal government isn't doing something nefarious with user data, it's not using it for influence operations there are some really legitimate questions about the effect that a large chinese owned social network within the united states could have so i think it's appropriate to at least be asking those questions. >> all right casey thank you. carl can you have candy crush on government phones? i guess you can. >> i have to ask on that one, do some digs. still to come, where in the world is sam bankman-fried after days of hearings, a reported nap in the courtroom and more, the latest on the ftx saga as the ceo makes his way to the united states reportedly demr r oc up 530, the best day inecbefostks another busy day?

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welcome back embattled ftx founder sam bankman-fried set to fly back to the u.s. today to face what's now multiple criminal charges tied to the collapse of his crypto exchange. mackenzie joins us with the latest >> so "reuters" is reporting that bankman-fried has consented to extradition to the united states and a court hearing is

under way now in the bahamas they have likely cleared this hurdle the next step for the ftx founder is extradition back to the united states in the next few hours. the acting commissioner of corrections had previously confirmed that bankman-fried already filed his extradition paperwork on tuesday and would be flying back to the u.s. as soon as the hearing wraps up all of this coming after a chaotic few days in court where the bankman-fried camp changed their mind whether he would surrender himself to authorities once he touches down on u.s. soil likely going to a federal detention facility or a manhattan court. usually the first step is to go to a detention center for processing but they may head right to court for an initial hearing and arraignment before a magistrate judge where bankman-fried will enter a plea to the eight charges against him, and it's when we'll find out if a judge is granting

bankman-fried bail "the new york times" reporting that bankman-fried's legal team has been discussing a deal with federal prosecutors that involves a possible arrangement for bail once he gets to new york but no word from his attorneys on that. >> i have to take notice of the affidavit that got read by a lawyer in the bahamas that he's consenting to extradition in part to make the desired relative customers whole it's like he's ftrying to frame his return as a here's welcome. >> yeah. it's what we've been seeing where bankman-fried has been on this publicity tour trying to win in the court of public opinion and make the case he made bad decisions but the int intent was never fraudulent so he's trying to hold this line about making customers whole

and he's pointing to the current ftx team saying hey, guys, american customers could be made whole today. john ray disputed that so we'll see how he can still angle himself as the hero here. >> are crypto asset prices any more moving on sbf headlines or more looking to see if there's another sbf out there somewhere? >> the first few days when there was a run on the bank as ftx customers pulled more than $5 billion off the exchange, the price of bitcoin plunged 26% but token prices have bounced back it seems like investors have priced it in and the headline risk has moved to binance which has about 75% market share centralized exchanges. just a few days ago, their accounting firm dropped them as a client plus its other crypto clients. saying it was because they were concerned about the public perception of proof of reserves

and they were putting out those proof of reserves for these exchanges, they didn't want their name attached to it anymore so a lot of questions around these centralized exchanges. >> thanks. we'll watch that of course as we keep our eye on his whereabouts, sam bankman-fried, that is wolf research finally waving the white flag when it comes to pa len tier and roblocs. you can catch the full call next "techcheck" is back in two

another gut check here this time wolf research dwoun grading a pair of stocks to underperform starting with roblox price target up 24 bucks, saying the street is overestimating roblox's near term bookings growth and similar for palantir worsening margins, price target of 450, that's $4.50 a share more "techcheck" after this.

let's turn to streaming. our next guest calls netflix one of his top media picks for '23 along with disney forecasting a spin-off in the year ahead steven, welcome back it's great to have you that espn and abc game theory you came out and said when a lot of the street has been too shy to predict what makes you think that's likely >> thanks for having me and happy holidays a few things that made us change our view on this one

the first one you gut a new ceo at disney. bob iger announced a few weeks agoe the second reason is cost, and our view is that disney is focusing harder on cost rationalization and we think that's going to improve the outlook for streaming. and as the streaming business continue tuesday diverge from the sports business we think it takes two better companies >> a few ofulse were in the room in the summer when iger spoke in code out west where when he talked about the legacy streaming business careening toward a cliff you think comments leak that feed his world view about what's going to happen to traditional tv >> i do. without knowing what's in his mind or exactly what's in the mind of the top leaders what i

think is clear to all of us is that the linear ecosystem is in a decline. we think subscribers is going to be down 8% next year it's difficult for networks like espn to figure out what's coming up next when costs are going up and revenues have a lot of that pressure and the streaming business of disney is its own intellectual property, and intellectual property is global in scope which is what makes disney a fantastic brand. >> steven, given the economy we're in and that we were likely headed into, what happens to hulu, and i should mention our parent company comcast certainly has a dog in that fight.

>> disney has said they expect to buy comcast has said they expect to sell a third of hulu both companies seem to indicate regardless of the macro economic environment there'll be a transaction probably in 2024 with disney buying a third that said investors actually think the potential for comcast to buy hulu is a lot higher than what the company is indicating it probably does solve some balance sheelt challenges for disney, but we also think disney can afford to buy hulu >> finally, steven, on netflix i mean what a move from the summer going from 170 almost to 300 these reports this week going in both directions on the efficacy of their ad tier

what's your verdict so far i knowit's early >> i would say the jury is still out and it's going to be difficult to trade netflix in the short-term based on the catalysts to come out of the advertising here i think it's going to be a call before they walk strategy. netflix, you want to be able to take this call with a long-term horizon. but bound to be a little bumpy in the short-term. >> do you think if we do get some news on youtube tv nfl that forces others to adjust their long-term strategy regarding sports >> you know, i think it just

shows there are plenty of large companies out there that view sports as an attractive piece of content that's differentiated by the form they have, whether that's tv, whether that's apple tv plus with mls and so a world in which sports rights begins come down or rationalized, i think any ceo or executive at a company has to assume it'll keep going up because you've got these well healed tech companies willing to pay it so you've got to think of a world where sports rights continue to get more expensive >> yeah, media companies, team owners, betting franchises it's definitely some hot activity in there. steven, good stuff on both names. appreciate it. >> well, micron, the chip maker, those shares having a tough

year no word from amd ad nvidia could it be the start of turn around we'll discuss next tech check back in a moment. with ge profile smarter wash technology. more care for your cashmere. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪ this is smarter cleaning. this is ge profile.

one more thing before we go, keep an eye on micron. reporting results from q1, its fiscal y1 in just a few hours. that stock up about almost 2% this morning as analysts expect earnings and revenue below previous guidance. negative free cash flow from the chip maker for the first time in two years. regardless if you look at the year to date on this, not much worse, not any worse really than amd which is down more than 50% year to date, and nvidia which is down just about as much micron warned last month in investor presentation about pricing pressure, though that's perhaps a little bit unusual for somebody to talk about pricing pressure given the environment we're in but in chips maybe not as much >> yeah, we had a discussion with cramer this morning, john, about sort of the collective action problem that exists in semiproduction right now meaning

micron can talk about trying to get these channels to clear but it's kind of hard when some of their very large peers continue to produce >> yeah, the oversupply problem at least in the near term has hit pretty hard. we'll see how long it takes them to clear that out. >> that's a key report to watch tonight as by work our way toward the christmas holiday let's get to sully today and the half thank you very much. hope you're having a great wednesday, everyone. i am brian once again in for scott. consumer confidence on the rise. so are fears about an earnings recession maybe a bit overblown? we'll talk that and inflation. that's not all that's going on in the macro markets and a rebalance of the jp morgan quant fund that could be generating some big time buying as well.