we've noticed that, temperatures dropping about 15 degrees since i started reporting this morning, and then there is the wind, and the concern is that the wind with the snow will cause those whiteout conditions and lead to treacherous conditions on the roads. you're seeing delays and cancellations by the thousands in the airlines and that's the concern that they're seeing as this winter storm continues to make its way through >> shaq, thank you, we expect to hear more in the next 24 to 48 hours as the fallout, 18 degrees the high here on saturday. that does it for "the exchange." "power lunch" picks up coverage of today's market selloff and it starts right now it's cold, it's wet. the market is down there's your forecast, folks welcome to "power lunch," along with kelly evans, i'm tyler mathisen, we are in the midst of a big selloff on wall street david tepper is bearish right now, and he's right at least for today, and micron's result wreck the chip sector, just wrekdcked

it worries about the holiday season for retailers. we've got it all covered it's all contributing to this down day, and we have all of it and more for you the next hour first, over to kelly for alook at the numbers. >> yes and again, get your umbrellas out. if you want some shield from this rain, the dow's down 70 9 points the s&p is down 102. the nasdaq has been the worst performer because of those chip stocks down 3.3%, earlier approaching a 4% loss. let's look at the semiconductors they are getting crushed after may micron's results the materials makers down 10%, nvidia down 9% as i mentioned, micron's decline doesn't seem so bad, even in comparison to what some of its peers are doing. carmax is thinking as they missed on earnings and revenue this is a huge watch point for the markets and the economy

right now. carmax, it's been a tough stock down 5% again today, and speaking of autos, got to look at tesla down 10% earlier just off those levels right now it's $125 stock. ford and gm, though, are also down about 10% in a week gm's down 11%, ford's down 15%, and tesla is down 20% r. apple says david tepper is leaning short the equity markets right now. he expects more rate hikes and thinks you shouldn't fight the fed. >> ecb and the fed have -- and the boe have future tidings, so yeah, we're going to have a lot more tightenings as i told you once before ten years ago, sometimes they just tell you what they're going to do and you got to believe them i kind of believe them. >> are the markets doubting the fed or underestimating the impact of rate hikes it looks like today they're looking at it and maybe not

underestimating. how can you make money in this environment? let's bring in jack ablon, hi, jack, welcome. what do you think? how do you react to what david tepper said, and are you similarly leaning short or negative on equities because of what you expect the fed to do? >> well, first of all, david tepper and i worked together many years ago he was a smart guy then, and he's a smart guy now yeah, we are still cautious on the market our growth strategy, which is typically equities, we still have 10% allocated to gold and 10% allocated to non-correlated we call hedge funds. i'm looking for evidence that there's, you know, it's safe to get back into the equity markets, and i'm actually shrugging off a lot of the data that we're wringing our hands over today because if you think about the four possible

combinations, i don't mind strong growth with higher than expected inflation certainly better than weak growth with higher than expected inflation. so yes, i do think that the fed is going to, you know, continue to fire my monetary policy at us i also think they're going to flap their gums and really, you know, ramp up the rhetoric, but i also see evidence that economic activity and inflation pressure is slowing as we move into 2023. >> what about earnings what do you see as you look ahead over the next 6 to 12 months with corporate earnings and then i want to come back and talk about something i guess yesterday said about p/e multiples in relationship to those earnings. >> yeah, so i mean, really if you're looking to try to ascertain fair value in the majority, it's sifrpmply a matt of what's earnings growth and what's the treasury, the triple year bond going to be.

you get both of those, you're going to get a prettygood number of what the market is doing. we will have a session next year, q1 and q2. i also think it will be a mild recession. if you look at earnings growth estimates, we're looking around 4% for a lot of next year, and if we do have a mild recession, that probably is a negative 10% or so on the earnings front. we have a long way to go on the earnings side. >> so you think -- let me just stop you if i might, jack. i want to make sure i'm understanding. the consensus is earnings dgrowh may be 4%. you are saying if there is a recession, albeit a mild one, that is way too high. >> typical recessions are somewhere between 15 and 20% year-over-year declines in earnings we're calling for, like i said, q1, q2 mild recession, perhaps a 10% decline in year-over-year

earnings and if you think about just changes in earnings growth, all other things being equal, it's essentially one for one so a 15% decline from current expectations, all other things being equal, the ten-year treasury yield doesn't move, that would equate to roughly a 15% decline in the s&p from where we are right now that said, though, i also think that the ten-year treasury yield will decline in fact, the number of tools that we look at most notably copper, gold, suggest that the ten-year treasury yield should be a lot lower than where it is today. if we can get that ten-year treasury yield down to close to 3%, rather than call it 3.6, that means that maybe the markets off, you know, low single digits. so within what i'd call kind of the wiggle zone of where we currently are. >> you've got the earnings multiple, the p/e ratio, and that is sort of the speculative part, what people are willing to pay for each dollar's worth of

earnings and we had a guest on yesterday who said, i believe she said that she was looking for the p/e multiple to expand next year. >> wow >> as investors look beyond falling earnings, look beyond recession, and look to the next expansion and start to pay up for stocks do you see that as a -- therefore, she thought that the market might have a positive year in 2023 how does that strike you >> that's plausible because, really, p/e multiple is really just the reciprocal of the earnings heels, right? it's just price over earnings instead of earnings over price, but earnings over price is perfectly moves in lock step with the ten-year triple b bond yield. if you told me what the ten-year triple b bond yield is at any time i can tell you what the p/e ratio is likely to be.

in order to get a p/e expansion, we're needing to have the ten-year yields come down, and that's certainly plausible >> jack ablin, thank you very much have a good holiday season let's dive in on the chip stock getting crushed, and they're laying off 10% of their work force ismicron, amd, qualcm down 5% or more, lam research down 10% why did this take the market by such surprise? >> yeah, thanks for having me. i would probably say that what micron is going through is a typical memory down cycle. i think what is different is just the pace of, you know, the collapse in demand, increase in supply, flooding of inventories, actually from price cycles you're seeing the demand slow

down one by one. plus you saw, you know, pc's and smartphones, you're seeing like slowdown in data center, hyperscale a lot of the end markets are slowing down, and on top of it, you have excess inventory. i think with micron specifically, you know, they've been kind of telegraphing or signaling the weakness, pretty much on a consistent basis i think that's one of the stocks down 5%. if you look at some of the names, down much higher because what micron kind of implied is that the weakness in capital spending could last into calendar 24, which the market is not expecting. >> it's not that people didn't anticipate some weakness, but it could go on for all of next year, and that was worse than it anticipated? >> yeah, exactly i would probably say that the magnitude of the down cycle is worse than what people expected. the reality is that no one really has, you know, clarity on

demand beyond i would say but the expectation is things could improve in the second half of calendar '23 over the next six months the customer inventory could get worked out and that actually is a positive in terms of pricing, but today we have excess inventory with the suppliers like micron, excess inventory with the customers with hyperscalers slowing demand, massive supply. >> one additional question, when we see names like amd and nvidia, which were some of the top performers, last decade, and we see them down 9% today, does that seem justified? are they even more exposed than the likes of micron? >> it definitely seems a little bit of a stretch to be completely honest. the reason people are using is the demand scenario is really weak i think one way to think about it is if you look at the end

market for chips, amd is a cpug, micron is a memory company, and micron was one of the first ones to actually in early june to report weakness in demand. so memory actually has been leading us into the downturn so there is a view that memory would lead us out of this dow downturn and if that downturn is getting prolonged that could mean like the other guys would take a longer time to recover so. >> am i wrong or have we gone very at lightning speed from chip shortage to chip sure plus? is it as simple as that? >> definitely. you've seen pockets. there's still some parts of the chips still in short supply. i would say like analog components, et cetera, and then some is definitely in short supply but memory, you know, i don't want to use the term commodity, but it is viewed as a commodity,

kind of fungible if you have multiple suppliers, the customers tend to, you know, kind of use them or mix and match them i think that's one of the reasons why memory went into an oversupply situation faster than many of the other specific ana analogs, specific chips. clearly you're definitely seeing what was under supply last year, massively turn into specific chips like memory and hard drives >> krish, where do we go from here so the market has taken micron's comments now adjusted what it thinks is i guess in store for earnings for the next year for the entire sector could there be more downside still? >> yeah, i think that at this point a lot of the weakness, to me it's more of a macro call if you end upgoing in a deep recession, any kind of demand recovery potential is going to get delayed. i think it's more of a macro like i said, seen the inventory

get worked on. again, it's going to take a good six months before the inventory goes to the system then you can at least say that demand remains stable, inventory's low so things could start coming back up if you end up in a recession, that demand pushed beyond the second half of 2023, and in that case there's probably more downside. >> we'll leave it there for now. thank you very much for your time krish sanker with cowen. it's already been a rough year for retail stocks, will the holiday season save them or will a cautious consumer and inventory overload make things more challenging. amazon, expedia, match, for amazon it's the lowest level 'll 0.march of 202 webe back with more on this market selloff stay with us

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welcome back to "power lunch," everybody. retail under pressure along with the rest of the market today high inflation combined with recession fears weighing on consumers with christmas just a couple of days away. earlier on "squawk box," the retail legend and former j.crew ceo weighed in on some of the challenges facing retailers right now. >> i'm not very optimistic and i think that discounts are rampant

starting with pre-black friday the margins will have to get hit. >> let's get some insight from conner flynn, ceo of kim co. realty, it owns and operates more than 500 u.s. shopping centers. welcome back, good to see you as always what are your tenants telling you about sales and there we look at some of your top tenants, which include petsmart, home depot, tjx, ross, and so forth, and walmart. >> pleasure to see you the environment right now is a bit mixed. you look at the consumer today, and obviously you're seeing some pockets of strength and some pockets of weakness. you saw nike's results and obviously footwear has done phenomenally well. we're seeing the same in categories like beauty, fitness, and services as well, as well as food and grocery so it really depends on the demographic you're talking about and the location specific but the consumer itself is obviously still a question mark on the strength of the consumer

what hasn't changed is the retailer demand. that still is quite robust across the entire portfolio here. >> what do you mean retailer demand in other words the retailers wanting space? >> exactly the net new store openings far outweigh store closures today, and there's virtually no new supply we're at a decade low of any new retail supply, especially in the markets where kim co. is positioned where we have high barriers to entry. and so the net demand is quite, quite strong for our product today. >> where is -- where are things a little bit more weak, conner, and what are your concerns about 2023 >> what we're watching closely is really the small shops, so t typically a kim co. center is a grocery anchored shopping center with small shops around it and maybe a t.j. maxx. the small shops is what we're watching closely, the pizza place, the salad bar, the nail salon, the hair salon.

we feel like that will be really the indicator of where cracks may occur in this economy. we haven't seen it yet, as you know, the collections are quite strong and demand for small shop space is robust. but we feel like that's where probably the first crack will occur, and we're watching that closely. >> it's really interesting, we're always kind of looking for those anecdotes, in a byway to you, this could be the eye of the storm. the past couple of months have been a good setup. real wages outpaced inflation. gas lprices coming way down just yesterday we spoke with an analyst who said his numbers indicate, especially for low income consumers that their spending is going to be way down year on year why is that, and is that itself a red flag that there's not a better response to the improving conditions of the past few months >> the lower income consumer i think is really being pinched by the inflationary environment when you look at the holiday season, national retail federation has a 6 to 8% retail sales growth for the projection.

icsc has 6.7% retail sales growth projected there's a lot of different data points out there -- >> conner, one second, so sorry to interrupt sam bankman-fried is walking out of the courthouse where he posted a $2.6 million bail it's one of the biggest we've seen from a situation like this. where the funds came from, they are in part secured by real estate owned by his parents. his parents also had to cosign for this bail. this is the blue suit he's been wearing is by all reports so many of these appearances lately, but here we seem to be getting some of the first pictures of him back on u.s. soil. >> and the terms of his bail as i saw in the last hour include a tracking device, a forfeiture of his passport and other location monitoring, home detection, so on and so forth that could -- and i assume he'll be restricted to probably the tri-state area

who knows. >> i think she said northern california >> is that right >> and the understanding is i believe he's been living with his parents in the near-term, but again, it is a very, very large bail. >> huge. >> that he has just posted and now we're able to finally get a look at him after only seeing and hearing reports about his demeanor throughout the course of this extradition period in the previous days. >> yeah, all right, shall we go back to conner flynn, why don't we go back to conner i was going to ask you a question, a lot of your big tenants are grocers. walmart is certainly a grocer, but we think of them as general merchandise and grocer what is the kroger deal, are there going to be store closings or what? what are you anticipating there or is it a non-event for you >> it's actually a net positive, if you think about the combination of kroger and albertson's, if it were to be approved, that has to go through a litany of different hurdles to get approved it's a credit upgrade for kim

co albertson's are both top ten tenants for kim co kroger would be the surviving entity the combination would help us. there are no store closures tied to that merger what they're doing, it's an interesting structure. they're doing a spin cowhere the overlapping stores or the ones where they feel like they have too much concentration or too much dominant in a trade area would be spun off into a separate public company that would be low levered and be in a position hopefully to compete. that's an interesting structure that i think is unique to that deal we're watching it closely. we think it will take some time to go through the review process. >> would those spun stores continue to operate under their familiar brands, or would they change brands? >> it's likely they would probably remain the same brands. it depends, it's likely they'll remain the same brands, but the key is that it will still be guaranteed by the parent so the credit behind that lease

is not the spin co, it's still the parent kroger that would be behind that least. it's still a very strong credit behind the spin co. >> thanks for anxiouswering, co flynn, have a good holiday. we have more breaking news, this time in washington, it's on that omnibus spending bill let's get to ylan mui. >> the senate has passed that $1.7 trillion deal to fund the government through the end of the fiscal year. this bill passed with strong bipartisan support the final tally was 68 for, 29 against. in addition to funding this bill would also provide $45 billion in aid to ukraine. that has been a priority for lawmakers, especially following the address by president zelenskyy before both chambers of congress yesterday. the senate also added two amendments to this bill including the pregnant workers fairness act and an increase in ftc merger filing fees for the largest transactions now that the senate has pass the

omnibus bill, it will go over to the house. leadership in that chamber has said they plan to stay in session until this gets passed remember, the deadline for funding the government is tomorrow at midnight so the senate now taking that first step to fund the government for the full fiscal year guys >> all right, ylan mui reporting. thank you. the dow off its lows down just 663 points coming up, home fried. we just saw sam bankman-fried posting bail as two executives plead guilty we'll discuss more next here on "power lunch."

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sam bankman-fried appearing in court in new york city moments ago. this comes as two key people in the case plead guilty. let's bring in our cnbc.com mackenzie saga lows for the latest what is the latest here? we just saw him leave the courthouse after posting a colossally sized bond. >> he's got an ankle bracelet on what we know about the terms of his release, he had to put up a $250 million reconnaissance bond what that means in practice is that his parents had to cosign on it with him

they also had to put up equity on their family home in palo alto as collateral he's not putting down that entire amount. he's putting down a percentage i hear that sometimes that's around 10% we won't know that for sure until we see the filing. other terms of his release, he had to surrender his passport and he will live with his parents in their home in palo alto his travel in the united states limited to the northern district of california. he's got to stay in his parents' house. he also has other terms of his release. he can't open any any lines of credit he has to submit to a mental health counselor in terms of the mood in the courtroom today, we had a producer there both his parents were in the room they were nervous, but they seemed supportive. bankman-fried as you said, he was in that blue suit and tie, you have to think it's the same one he's been wearing all week as he showed up at court hearings in the bahamas and the u.s. >> part of the collateral was the parents' homes in northern california where would the rest of the money have come from if he is

bankrupt >> well, that's the thing. that's exactly what everybody's wondering. he said in an interview he was down to his last $100,000, but at the same time, a lot of his wealth was in this ftt token it was in property, property that the bow hemian regulators would like to claw back, $2567 $256 million of property in the bahamas. >> what do the fguilty pleas of the associates mean for bankman-fried and his defense that basically apparently as far as we know it, i was just a dumb ceo. i wasn't a fraudster. >> yeah, i mean it's not good for his defense. it seems the prosecutors intentionally withheld the information that two of his top deputies, caroline ellison, a former love interest, also the ceo of alameda research and gary wang who was a co-founder of ftx it wasn't until bankman-fried

was in the air about how they were cooperating with prosecutors. there are also a lot of other top lieutenants in sam bankman-fried's crypto empire who haven't been named yet there's a question as to whether conversations, back channels are going on one thing about the hearing, we thought there would be an arraignment but it didn't happen because the presiding judge was out. he has not put in a plea that won't happen until january 3rd. the discussion of the day focused on bail and scheduling. >> the judge was out must have been something pretty important. >> weather, covid, who knows >> mackenzie, thank you very much for all your roeporting. let's get to bertha coombs for the cnbc news update. >> secretary of state antony blinken is urging all countries including china to share information on covid outbreaks this as health experts become increasingly concerned about the lack of data of new covid infections in china.

the u.s. stands ready to help other nations battle covid, but beijing has not asked for assistance. u.s. life expectancy fell to 76.4 years the final numbers mean americans will only live as long as they did in 1996. at th deaths related to covid remain high and fatal drug overdoses surged as u.s. life expectancy fell behind that in other developed nations. heart disease remained the number one cause of death in the u.s. and winter storm elliott has caused temperatures to plunge as much as 50 degrees in just a few hours in parts of the north plains in much of the country, it could be the coldest christmas weekend in decades, snow and ice are hampering travel tracking flight aware says nearly 2,000 u.s. flights have been canceled today. parts of iowa are like 50 below

zero, guys >> oh, my goodness, and put the windchill on that. that is just devastating. wow. ahead on "power lunch," a massive snowstorm on the way, w just heard about that, investors and consumers alike bracing for travel issues and higher energy prices we've got more next. plus, we will continue to watch those markets. the dow now down, let's see, what is it there bring it in. >> 614 >> 614 points. we will trade some of the biggest movers in datoy's three stock lunch, a negative day for equities zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

welcome back, everybody. 90 minutes left in the trading day. the picture's looking a little better than it was an hour ago dow is down less than 600 points we'll start with bob pisani at the new york stock exchange. bob, what's the latest >> well, that's where i am we're coming off the lows but don't kid yourself look, there was concerns about the economic numbers this morning, but what's happened today is a takedown of the tech earnings for 2023, the s&p's down 2.5%. big tech names down 5, 6, 7% we've got a lot of names at new

two week lows. it's sifrmple, to the extent tht micron is a tech leader because we have all of these d ram chips, they're in everything, they're in pcs, cell phones, data centers so this concern that that inventory glut is going to apply to the rest of the market, i'm just taking down estimates across the board speculative tech, same situation, a lot of cathie wood stuff sitting at or near 52-week lows zscaler, roku, teledoc, they're within 1% of a new low you want to look at the proxies for growth it's interesting that oil is only down fractionally, but the big oil names are down 5 or 6% to me that's a sign of growth concerns out there, overall concerns with the what extent of any kind of recession we're going to get out there finally s&p 500, remember, everyone was expecting semiconductors were going to be bottoming in october, we'd be coming off those lows. now of course you see we're

starting to move back towards those october lows a long way from that right now. that's the concern retesting >> well said, bob, thank you very much. meanwhile, in the bond market, yields down today. the yield curve a little better. rick, what do you say? >> you know, i say that we continue to see a softer equity market, but what's interesting is the digest process of that is being lost on the treasury complex. look at a one week of two-year notes. they're at 425 they're up seven basis points, but they are the leader today. they're up four and a half basis points today alone, much of the rest of the curve is unchanged look at ten-years, they closed under 350 last week, which means right now 366 they're up 17. but on the day they're nearly unchanged. what is that telling us? it tells as we talked about earlier, the yield curve spreads, and today's inflation data with respect to the gdp

price index, it was as expected basically, but it was still 1/10 higher in the rearview mirror as was core pce quarter-over-quarter, so the fact that they're much lower is not necessarily the dynamic here the dynamic is that they're sticky and sticky isn't good when you add in all the other tech issues. one would have thought interest rates would have been a little bit more self-serving with lower, but they're not if you look overseas one of the reasons is we're getting a much more hawkish guidance coming out of the ecb they settled today at 236 in boons. if you look at a year-to-date chart, those new highs above 240 since october, the highest since 2011 the fulcrum where they stop going down and start going up is june of '23. there's a two-week chart it's basically sideways. that's important because none of this is really changing the market's view on fed funds and

what the central bank's going to do >> great point, rick, thank you, rick santelli. most things are down, but oil up 5%, and it's getting all the more wintry outside. >> up on the week, but oil did reverse early gains today and turned lower alongside the broader market as traders focus on central bank's tightening that's outweighing optimism from yesterday's bullish inventory report as well as the potential rebound in chinese demand. now, the winter weather hitting much of the country also having an impact here, more than 3,000 u.s. flights have been canceled ahead of the holiday weekend due to the storm conditions. that's according to flight aware. and if people decide not to hit the roads, that will cut into gasoline demand. let's check on prices here, wti is down 6/10 of 1% at 77.484 with brent crude a loss of 1%. natural gas is actually down today, and that's because the market is already looking ahead

to a coming warm spell at the start of next year a trader telling me that some spot prices across the country are surging, especially out west and in the rockies where they've had 50 bucks, and btu. this is a buy the forecast, sell the storm event. >> it is interesting some of those regional jumps we are seeing, we'll leave it there for now, thanks. as the broader market debates recession versus soft landing oil has been kind of caught in between. my next guest sees a fed pivot let's bring in b of a securities head of global my bearishness on oil must be a sign that prices are about to take off again, what do you see? >> hey, kelly. we agree we think prices are going to be higher we're still targeting $110 a barrel on brent for next year, probably sometime in the third quarter of next year but obviously it's going to be a little challenging for oil over the course of the next few

months as hospitals in shanghai and other parts of china essentially build one a lot of covid cases and likely pull back demand in the short run. we think after the chinese new year demand will start to pick up there. >> francisco, the oil price collapse has been pretty spectacular and we had ed morris on the other day, he kind of called it and is still pretty bearish. what is the case for this not being a new normal, you know why don't you think we could have prices stay down here around these levels into the first or second quarter of next year >> well, these levels are generally elevated anyway, right? and compared to history anyway so i think $80 oil is historically a record price

compared to the last ten years or so. i do think the upside is coming from the china factor. also from the fact that inventories are pretty low generally across the world also, we have opec cuts production to try to support prices and remember that the u.s. government has committed to or at least announced they're going to be buying oil if prices dip below $72 a barrel and we traded close to that level and bounced back up. so i think, you know, there's little downside, and yet you have all the china reopening ahead of you, which is likely going to have at least 7 to 800,000 barrels a day of price demands to the market. >> dial back the clock, francisco, to let's say april or may of this year would you have suspected then that oil was going to close the year closer to 70 or $75 a barrel or closer to 125. >> i can tell you our forecast

was our forecast was oil was going to end the year at 95, brent, wti a little lower. so you know, it's definitely been a little more negative than we anticipated and i think part of it has been that russian flows have continued to -- have continued to hit the global markets despite the -- >> how is that and why is that is that a failure of sanctions what is it >> well, essentially it's -- the price gap. i mean, the price gap was an instrument devised to keep russian oil flowing into a market because european politicians have committed to stop buying russian barrels and then the u.s. treasury, i think treasury secretary yellen came up with the idea of a price cap instead, so flows continue and that's what we've achieved we have more oil than we need, and at least from russia in

reference to our forward balances -- >> and we want that russian oil to come to the market because d dot dot dot. >> because russia is the number one exporter or used to be the number one exporter of oil in 2021 and number one exporter of gas, so we want those supplies to come in order to prevent tightening of global energy markets. that's exactly what a price cap achieved it avoided a policy mistake in europe to essentially limit those energy flows >> yeah. it's been -- francisco, i don't know if you want to offer a parting word on natural gas or the whole global energy picture. on the one hand it seems so much better than we could have thought a few months ago on the other hand we keep hearing about how europe's running down its storage levels and wait until next winter it's going to get so much worse. what should we think >> i think you were highlighting it earlier, and we've seen california prices hitting 50

plus dollars per mtu in the last couple of days, and part of that is that the global gas and power crisis is coming into the u.s. regions that are well-connected to the world internally to domestic pipeline system in the u.s. are now having to pay world prices these world prices are 30, 40, 50 bucks mbtu, you have to pull gas out of china or korea or japan at very, very high prices. that's kind of what's going on there. i do think gas is going to be extremely volatile we are looking at a commodity that's been exceptionally volatile all year and global gas prices with a range of 20 to 19 per mbtu the global gas and power crisis remains front and center of the energy cries crude oil has never really been in a crisis. we've had ample supply

we had regional supplies throughout the year, including the release of the strategic reserve. gas and power have been the problem, and now it seems know california consumers are facing the same problem that europeans and northeast asian consumers are suffering from >> francisco, it's great to have you. thanks so much >> thank you. all righty, still to come, recapping what's tdragging us lower today. "power lunch" will be right back . >> announcer: the bond report is brought to you by pimco, the global leader in active.

the dow down right now about 600 points, the low of the day for the session for the dow was down 803 boeing the biggest drag on that index right now. but it has been a hot stock, up 55% in the fourth quarter. not so much today, down about 4% microsoft a drag also, kpiend w combined with boeing, those two taking more than 100 points off the index. and as we say, the dow is down about 600 e. we're going to be right back with a look at mored of day's big movers. stay with us on blunch

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welcome back it's time for today's three-stock lunch. with the sell-off we're focusing on carmax whose results were hit by the used automobile market.

kraft heinz is holding up, and amc entertainment, the stock plunging as they have announced a new capital raise and proposed reverse stock split. scott nations, is president and ceo of nations, it's either a tough or easy one. >> this was easy as you pointed out, they posted horrible reports they're blaming inflation -- welcome to the party, pal -- the trader in me hates that, when they're going to buy stock when it's expensive it's not too late to sell, but given that inflation is a problem, there's no reason they couldn't be down a similar amount next year every time.

>> there's not that much there there. $58 a share. >> so there's $58 a share of there there. kraft heinz? >> this is a buy it's consistent with a theme i've had low beta, 3.98%, which is wonderful. quite a bit higher and inflation is the problem, a name like kraft heinz could actually benefit from a bit of inflation. >> in that case, what about amc entertainment? >> it's a mess it doesn't even deserve a regular buy, hold or sell. be careful what you ask for what you watch your stock become a meme stock they're now going to converse

these redib his shares into a common share, they're going to -- and the worst financial engineering, down 13% today. if that doesn't convince you, how about this more than $10 billion worth of debt i feel sorry for the movie theaters, they got crushed by the pandemic, but that doesn't mean investors have to take the ride. >> scott nations, we appreciate it thank you. >> thank you. the four cs moving the markets -- cars, chips, casinos and cruises. wee talk more about that, after this 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

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results. finally, casinos and cruises, two more cs, karnial down 8%, royal caribbean down 5%. caesars is also a c. look at all the cs out there nor weeken is down about 5.5%, a rough day after a couple pretty good days. >> i think it goes back to the question -- we know what cars and chips are telling us, that it's turning into a glut prices are coming down that's what brian reynolds told us a couple weeks ago. what does it mean for the rest of the economy are we all facing deflation? recession, all the rest of it? or will it be contained. >> and there you see the dow right now, as we're headed off to a closing bell. was that the lows off about 800,

so some mitigating of the decline down, just 1.5%, but the nasdaq is lower by a more substantial margin, by almost 3% for now, we'll hand it over to the sixth c. >> that would be the "closing bell." thanks for watching "power lunch. >> "closing bell" starts right now. so much for a year-inderally bearish comments from david tepper, a mixed bag on the -- though we have come off the worst levels this is the make-or-break hour for your money let's look at where things stand, as well, down about 113, currently holding 3800 biggest decliners in the space, you'll find tesla in there on pace for the worst quarter ever. we're going to be all over