yields that they offer are higher because of a higher risk of defaults. you can see just over the last three months or so all of these are up they were up 1%. j & k up half a percent with hyg up over 1%. >> it's such an important warning for those thinking about high yields. thank you, kristina partsinevelos. that does for for "the exchange." coming up another prediction, gasbuddy's patrick de haan tells us where he sees gas prices next year "power lunch" begins right now. "power lunch" with kelly evans. welcome to the program here is what's ahead, a winter freeze but we are not talking about the weather, we are talking about home sales pending home sales down nearly 40% from only one year ago that is the second lowest monthly reading in 20 years. so who is really to blame? is it the feds for raising rates or is it the government for helping spike inflation, which

forced the fed's hand in the first place? former fdic chair sheila bear is here on this and why the fed may have to pause sooner rather than later. that's all ahead on "power lunch. let's find out how your money is doing at this hour kelly evans, long time no see. >> welcome, brian. hi, everybody. here is a quick look at stocks, we were down 315 the lows for the dow just under 200 point decline, the nasdaq down about .85% according to bespoke if that decline holds this will be the nasdaq's worst december on record bond yields moving higher, the yield on the ten year at 3.877, right now, highest since mid-november apple off the lows of the session but breaking some key technicals, just offer 127 a share, it's a 30% drop this year, a loss of $800 billion in market cap and with apple now looking down at a potential recession, investors want to know what could the growth

catalyst be in the new year. steve kovach joins us. >> here, i am. >> a $3 trillion company 11 months ago apple shares hitting fresh lows again today and wrapping up what's likely going to be the worst year since '08 covid lock downs, protests in china weighing on the stocks but potential growth catalysts coming in the year ahead services an important segment to watch in the coming months and fintech will be the big one, apple expected to launch its buy now pay later service apple pay later which will also offer a high yield savings account for apple card customers meanwhile, advertising is another area we're expecting more from apple. this year they launched new app store ads offering prime real estate on the homepage of the app store and apple is likely to look to other surfaces across its platform like the apple maps app and apple tv lus for more ads. apple is a hardware company after all. the big question can iphone

demand hold into next quarter after missing all the shipments in time for the holidays this month. we will have to wait a few more months to find out if apple can pick up the slack. we're also expecting that long rumored augmented reality headset, we keep talking about it, in the second half of the year that will be the first major new product from apple since the apple watch in 2015. there's more pockets of worry ahead, the dollar is expected to remain strong at least for the first half of next year and that hurts apple's services business, and especially app store spending which has been falling, apple blaming that on a drop in gaming sales. >> i'm going to give a hot take, kelly evans and a challenge to you. >> i'm ready. >> you said apple is a hardware company and it is, but they are increasingly becoming -- i'm going to issue a challenge -- >> i can't believe steve uttered that phrase, usually he's telling me that they are a software company. >> they are not a software company, either. they are a subscription company now and i will tell you why. if you use apple one which is sort of their basket, 32 or 34

dollars a month now, let's say you have apple itunes match which i use to match my library, you have apple cloud storage. >> yeah. >> i bet you many of our viewers are dropping 75 bucks a month with apple and they don't even think about it. >> no. no no >> no. no no no >> brian, you missed something's there, too. >> she's saying no but you're saying no in a different way. >> i'm saying yes and, how about that. >> always an and. >> yes, and there are other subscriptions that you get through the app store. if you subscribe to hulu or disney plus that's also within and apple takes a slice of all of those when you go into the subscriptions tab -- >> thank you, but also the ones that only go to apple. >> correct. >> and let's say your kids they buy or rent two movies a month, you're at a 75 to 100 bucks maybe a month with apple. >> no one is speaking from personal experience.

>> that kind of recurring revenue is going to be maybe a big new business for apple. >> this is why we always hear apple talk about we have approximate 00 some odd -- i don't remember the number off the top of my head, 300 some odd million subscriptions, no the all pure apple subscriptions like apple one, they include the third parties, their whole thesis around the app store and services, we get a slice of all the economic activity that happens on the phone, that's what they've been doing. they've been squeezing more and more, 75 bucks a month, 80 bucks a month, whatever it is, more revenue per user out of the iphone that's been the ios story for the last five or six years. >> she has baby einstein. >> no. no our boat is similar but the place it's going is different. i'm doing google photos for all the stuff, what's app for all of my messages. i take your point. i don't do music at all, i guess we have youtube music in the house. yes, there is a huge --

>> casey kasem. >> and this one goes out to kelly in lexington, virginia. >> i don't use apple podcast platforms. i use almost any other platform or software available. i don't even use their built in mail app because i don't think it's that good. >> they're still getting slices of that. >> terrible. >> i use the outlook app to your point they're getting a little bit of that anyway. this is why they're insomuch trouble in the eu because they have, you know, power over everything that happens on the phone and that power is weakening and that's the real risk in the services business. >> it's sort of like a lose-lose for them if they retain the power they will get into regulatory trouble and if they lose it they lose all the power. >> go to that account, subscriptions and see what you might have. >> you will be horrified. >> yes yes. what is plant snap and why are we spending $2.99 a month on it? >> now i have to check

fair point. >> good stuff. >> thank you very much. >> plant snap is a pretty cool app. while you may not care -- don't do this -- while you may not care about apple itself we are guessing if you're watching or listening to us right now you either accidentally stumbled upon us or you do care about the broader market many strategistsand investors say that apple's pain may be bad news for the macro market. according to etf.com apple is in more than 400 etfs and more than 6% of the s&p 500's spy etf. let's bring in the portfolio manager at dcla and cnbc contributor. probably a subscriber to plant snap as well let's talk about apple how much does -- maybe not -- does apple mean to the macro market >> so break it down in two ways, brian, apple means a lot to the market if you were invested in the market, if you are in an index fund or etf that mimics the s&p you have a big, big exposure

here actually a lot of funds are overweight apple so in this way you are seeing when the market comes down and apple comes down with it even more than it's pulling down the market we had this happen with the big boys, the faangs a year ago, they all lost a lot of their muster, microsoft 4, 4.5%, but apple is the bellwether. if you see money coming out of it as you do now people will use it to source funds or just need tomorrow could out of the market. >> here is my hot take poor apple, this isn't about their business model, this isn't about -- this isn't about any of it, it's not about apple, it's not about meta, it's not about amazon $12 trillion has come out of the stock in cryptos based over the past 12 months it's no individual stock's fault is, is it, it's just a fence story. they injected huge liquidity along with the federal government, now they're throwing that process in reverse, that's the whole story isn't it >> i think that's a big part but not the only part of it. i think also when you talk about

interest rates and that's the part where the fed put all the money in, yes, all the momentum stocks took off but what people are looking at and you were talking about at the top of the hour, where is the growth going to come from if people are a little bit scared that, hey, apple might not be the same company it was two, three, four years ago, couple that with the interest rates, you're going to get money coming out of a stock that's 6%. that has been a winner for everybody. if you are looking at your portfolio and you're saying, wow, this thing is becoming a really outsized position, i have losers on one side, i can offset them against gains, where am i going to get my gains? i can down side apple. now there are other opportunities in the market as well i don't just necessarily have to be in momentum growth stocks and technology. >> all right so let's talk about where we should be, what we are going to do the rest of this week i think is find some opportunity you brought cool new names as you normally do. we all want to smell nice or we want other things to smell nice, like the streets of manhattan to smell nice, smells like

cannabis sarat international flavors and fragrances down 30%, they make everything sound better including perhaps our portfolio next year. >> yeah, it's not a household name, they bought dupont biosciences, merged the two companies. they are the ingredients that go into perfumes, ingredients that go into your food. even into pharma so they are like the area that will grow with the areas that we think will do well when the economy is slowing it's a company that trades at a market multiple, what they're doing is deleveraging and spinning off different divisions that aren't going to be added -- adding value to the core of the business and we think this is kind of one of the least unloved, not sexy, but it's a cash flow company that's going to pay down debt, doing its own lbo, 3% dividend yield and it is providing essentials to people that want to go out and buy products and buy food and pharma. >> the other pick we didn't have time to get to is ge, general

electric we got international flavors and fragrance ps and ge. sarat, thank you see you soon. >> thank you. the one major issue hanging over the market and growth stocks is the fed and its fight against inflation. our next guest says it's time for the central bank to take a pause and assess the impact of rate hikes here to explain is sheila bear the former chair of the fdic, founding director of the volker alliance >> i appreciate that you are coming right out and saying they should stop hiking now what gives you the confidence to say that that's the right thing to do here >> i'm saying hit pause, not necessarily stop i do think -- you have to look at where they started which was near zero. over 4.25, that's a 6,000% increase, a pretty dramatic increase in borrowing costs and we have an economy that's much more lnchd than it was back in the fall volker era when i was fighting the great inflation

i do think there's some different circumstances that need to be taken into account. yeah, i do think it takes a while for these increases and interest rates to flow through the economy, we don't know the full effect, we're seeing positive signs i think it would be pru didn't to hit pause and see what the impact is before they go further. >> do you think they need to pay more attention to yield curves and what the financial markets are telling them should chair powell couch what he's saying, i pay attention to these forward looking markets and they're telling us we will be in a deep recession within maybe a year. >> i think he should worry about that between now the great inflation days, they are basically paying banks and other big financial intermediaries not to lend if you park your money in a reserve account or reverse with the fed you're getting an increasingly higher rate, juicy returns, risk free, you don't

have to lend into the economy to earn a decent return i think that is a very powerful tool that they're using now that they weren't using back then another reason to stop and pause and evaluate before they go further. but, you know, talk being the yield curve, there's been tremendous treasure on short-term rates which is why i think you're seeing these significant yield curve inversions over the past several weeks. yeah, he should be trucked by that. >> what happens if they don't pause right now, do you think? >> well, look, you know, it depends. if they do another 25 basis points the next time, maybe that's okay. i do think there are fragilitie in the system, i cited elevated levels of debt we now have in our economy, that doesn't even count the tens of trillions of debt you are not seeing. liabilities that are based on derivative exposures throughout a balance sheet that reside in the shadow sector, another difference between now and back during the great inflation days.

so i think they need to see, look, i don't have -- private funds take losses, fine, but all the college endowments and pension funds ands others who have gone into those risky investments because they couldn't get a good strong yield on lower risk investments, they could get hurt, too, and that's another thing that i think argues for going slower. >> how much -- because the blame game is already beginning as you know, we've seen politicians going after the fed, the economy will probably go into recession, the finger pointing will accelerate, but to my intro at the top of the show, how much is -- and not on one party or the other because they both passed the original bills -- how much was government spending, stimulus, ppp loans, et cetera, in your mind responsible for the current inflation? >> so i don't -- look, washington has an inflation bias and i don't think you can really havea clean separation between fiscal spending and monetary policy the fed bought trillions and trillions of federal debt, they monetize that debt, they don't

say they did but they did, but to feed all of that deficit spending that, yes, spun into inflation. i don't think you can separate the two. look, you know, everybody wants to be a crowd pleaser, make it cheap to borrow, spend money, increase more subsidies, forgive student debt, you know, those are crowd pleasers and because of this long protracted period of low interest rates the government has been able to get away with it but can't anymore i would say there is a fox in everybody's houses there is an inflation bias in washington. >> you're right. you get elected by promising to give people things not to take things away and there was huge amounts of need for all the covid relief at the beginning. >> yes, there was. >> but a year later when half the country was basically operating almost as normal and we did a lot more than any other industrialized nation in the world, so forget about just blaming the u.s., sheila, we can look around the world and say why did we do so much more than these other nations. that had to have played a major role and now the government is trying to do things to, quote, combat inflation you just wonder if spending more

in an inflation reduction act is going to actually reduce inflation. >> right so that's right. so washington still isn't showing much restraint in their -- >> no, they're spending more spend more to combat the problem that spending more created >> exactly no i'm not disagreeing with you but i think there are things that don't cost money that are due to help with inflation. housing inflation, i was watching your show earlier, you know, zoning restrictions, permitting bureaucracy, why don't we get on that and build more housing to bring those prices down as opposed to putting it all on the fed? immigration is another third rail, but, you know, if you are worried about labor cost, more immigration could help there, too. so i don't -- there are things that don't cost money that we could do from our elected officials, we're just not getting any kind of a leadership or focus, it's all on the fed and the fed has a big role in this but shouldn't have to do it

all. >> we will leave it right there, you know. >> okay, great. >> we will leave it right there. sheila, thank you so much. we appreciate it thanks for joining us today. sheila bair. >> she's right on the point. we talk about renewable energy and hitting climate change, but it's hard to get a wind farm built because nobody wants the power lines or to look out and see a wind mill 20 miles of sea. >> or grid steel batteries it's hard to find places to put it. >> you heard not in my backyard, the new one is bananas, build absolutely nothing anywhere near anything >> that's bananas. >> that is bananas, but that's why it has appeal. coming up -- i'm sorry is a housing collapse coming for much of america? the big bad numbers on home sales ahead. plus some good news, that's right, good news on gas prices gasbuddy is coming up. as we roll to a quick break here are some of the s&p 500 docks stocks that are down right now,

eqt, your buddy to bey rice down last night down 6%, solar ridge, backpacks, solar panels and natural gas. are some of the s&p 500 docks as we roll to a quick break here

welcome back to "power lunch. from red hot to ice cold the housing market seeing a brutal end to 2022. november pending home sales were down 38% year over year, the second lowest monthly reading in 20 years home builder stocks down today,

down 20% or more this year as higher mortgage rates have taken a toll let's discuss what's in store next year with george raatu of realtor.com. this report surprised people is it overstated >> kelly, i think that in many ways what the report highlights is the housing market is definitely in the throes of a winter freeze. in fact, when you look whether its pending home sales, existing home sales, you're seeing demand from home buyers really plummet. it's not surprising. we started the year at about 3, 3.10% for the 30 year fixed mortgage rate, we hit over 7% october/november we've pulled back a little bit, but bottom line for the typical home buyer today their monthly mortgage payment is about $700 to $800 higher than a year ago and the key here is inflation has eroded even what otherwise would be outstanding pay increases to the point when adjusted for inflation most

people's wages are actually negative. >> right. >> so that combination is not surprisingly impacting housing markets. >> george, here is the thing, it would be one thing if we said the data was horrible but rates have come down since then. no, the ten year yield has been going the other way to close out the year, we will see the mortgage rate surging again. i don't know what kind of shadow that's going to cast we will start to head into the spring selling season pretty soon with a pretty grim picture. >> well, and to your point, kelly, not only is the ten year treasury obviously rebounded so mortgage rates are likely to see a rebound as well. when you look at the fundamentals in housing market on the supply side, we started this year already undersupplied, even population growth given construction we don't have enough homes really to satisfy how many households over the last decade. more importantly since the late summer homeowners who might otherwise have sold have in a sense gotten worried, they missed the market and they

pulled back. realtor.com we've been tracking new listings weekly and we've seen this pull back, double digit pull back week after week for several months it's obvious that homeowners who contribute normally to the supply are also spooked by the rates. naturally some of them have 2.5, 2.8 mortgage rates right now, they don't want to trade those for a 6% mofrt and a higher home price. >> so where does it go, george, in two years how does the american housing market look >> we have several forces really working right now in the market. number one, we're seeing prices come off the peaks i think that's key since the peak of summer we're down roughly 10% for sales prices to me what that says is we are moving away from the feverish price of the overcompetitive markets of the last year number two, on realtor.com we track listings with price reductions and we've seen that share hit 20% in the last three months, which tells me we haven't seen that number since about 2017 when the market was

decidedly very different that tells me the market is already beginning to rebalance the trouble is we definitely need more supply and there's no getting around this we simply have more people in the country and most cities around the country over the last decade have taken a not in my backyard -- speaking of the nimby mention earlier. >> bananas. >> i like bananas even better. i think that's perfectly seasonal but the trouble is there's no getting around it. we're trying to solve a problem and the solution is rather simple to fix in effect the zoning look at lumber prices that's $1300 per thousand board feet in march, they're and you $400 right now more or less in line with pre-pandemic prices construction costs have come down in a sense supplies many ways are constrained by zoning and it's hard to get around it given how many municipalities control the codes directly >> and that brings it all together here, doesn't it, from housing to the fed to the

economy and all the rest of it we will see if they're listening. george, thanks so much we appreciate it coming up on "power lunch," trip to pain and, no, we are not talking about more stuff in your christmas turkey, we're talking about flight disruptions hitting travel stocks. much more on that, but first instacart's valuation getting absolutely whacked according to some new reports and this isn't even the first cut this year what is happening with instacart and delivery we will tell you coming up

welcome back grocery delivery startup -- not a startup, ten-year-old company instacart is worth a lot less than it once was according to the information, which is a paid research company, instacart's internal valuation is now about $10 billion. that is a decline of about 20% from instacart's $13 billion valuation in october but it was worth roughly $39 billion last year. you see the trend, 39, 13, 10. >> ouch. >> the startup had confidentially filed documents for an ipo earlier this year but

plans were scrapped due to market uncertainty the sent sans itf, down 58% this year you just wonder is it down or should it never have been worth what it was. instacart not the renaissance. >> both. for instacart these are the companies i remember so well the previews we did last year, here are the big ipos that are going to happen last year. they're probably kicking themselves for not having gotten out the door is it closed for a while probably what do you do now how do you liquidate what if you've borrowed against the value of those shares. >> and your employees expect to be paid. >> right. >> in a red hot equity which may never happen. >> exactly listen -- >> here we go. >> i've used it with costco priemt aerl. >> instacart. >> yes. >> how do you instacart with costco. >> costco is such a pain,

getting there, instacart does deliver from costco even without a membership, if you are a member it saves you the fees that you hate so much for instacart. >> is that true? >> it is. >> you go through -- >> yes, it's like a back doo powered by instacart. >> it's the same person. >> i think so. >> just -- >> yes. >> same pool of people. >> yes, but to your point a lot of people look at those high fees are turned off by them while the other half is thinking i don't know how we could ever live if we had to go back to the grocery store again. therein lies the quandary. >> the only way i can get miracle whip into my house, my wife hates it, i love it, i always substitute the mayonnaise for the miracle whip because i can't buy it myself. >> you don't put tuna fish with miracle whip okay you're not substituting the usage of mayonnaise for miracle whip or are you? >> i'm feeling really judged right now. by the way, either one is no

durky's sandwich spread. that's a whole thing. >> i'm going to say it you don't. let's he get to seema mody for the just update. >> president zelenskyy says ukraine's flag has become a symbol of courage around the world. he made the comment during his annual speech to ukraine's parliament zelenskyy credits ukraine with helping the west, quote, find itself again as it came together to oppose russia's invasion of ukraine. in california prosecutors have tied four more slayings to a suspected serial killer, wesley brownlee is charged in the deaths of seven people since april of last year a lawyer has not responded to a request for comment. and the man accused of being the mastermind behind the plot to kidnap michigan's governor has been sentenced to 19 years in prison. the judge described barry croft jr. as the idea guy who convinced others to join the scheme to kidnap governor whitmer. kroft's attorney says he will appeal brian and kelly. >> you weren't invited anyway,

seema. >> there you go. >> thank you by the way, my wife is a fantastic cook that's my preference we will discuss this later on, evans. ahead on "power lunch" could we see gasoline prices fall below $3 nationwide, they already are in many places gasbuddy's patrick de haan will join us next. plus keeping up with the rule of threes, three stock new year, just three days left in the trading year and today we will take a look at three month to date winners. stay with us

over thanks, kelly. less than 90 minutes left in the trading day and we want to get you caught up on the markets, stocks, bonds, commodity, gas prices, apparently my lack of a future let's start with kristina partsinevelos who is at the nasdaq rescue the program what's going on in technology land >> well, like a band-aid let's rip through these negative statistics the nasdaq right now is tracking on for its worst year since 2008 and look at the disparity that we are going to show you among the nasdaq versus other averages in december. the nasdaq is double the dow's drop right now even worse year to date more than triple the dow's losses nasdaq is seeing its biggest

underperformance versus the dow and s&p 500 since the dot-com bubble burst in 2000 nasdaq stocks are more likely to have debt and therefore be negatively impacted when yields rise over the last few days we've seen the indices hit hard. biggest movers lucid and tesla after tesla made another 52-week low yesterday by the dip action you can see lucid and tesla over 2% higher. chinese tech names are the biggest lag ards despite easing of covid restrictions in china i wanted to focus on this, a little rebound from inn individual can a today after its 7% plunge yesterday. still in the red today, but semis and investors focus on an oversupply of chips. how far we've come. >> and worst stock in the s&p 500 this year it's not tesla it is lucid group thank you very much. let's get to the bond market some word on rising yields, let's find out what is driving t rick santelli is at the cme with

more the china factor, a lot of stuff going on, rick. >> a lot of stuff. i will tell you what, when we talk about all the issues, speed should be the one we concentrate on today because yields have gone up but they've gone up quite fast look at a two week of ten year note yields as you see, we've basically gone from under, right around 350 up close to 390, 391. and you talk about a quick 50, okay, the low yield close recent low yield close was december 7th, pearl harbor say, you you closed at 341, quick 50 basis rise from december 7th to today. that low was the lowest level open the chart up since mid-september. you can see how quick this is all occurred and part of the reason of the selling in ten year is reversing the yield curve spreads. look at twos versus tens, it is the least inverted in two months

and, remember, that started inverting in march of '21, so it took a long time to get that inverted think about how many purchases of tens and sales of two year were mixed in with that. and finally when we talk about our two year and ten year we know that rates have gone up, but look at how fast they've gone up in europe. their two year today closed at a 14-year high and their ten year at an 11-year high yield that's called fast selloffs because the two year was negative not that long ago brian, back to you. >> amazing turn there. particularly in germany, rick. thank you. oil is down a little bit for the day. let's find out what is going on in the commodity complex pippa stevens has that. >> brian, oil is falling alongside the broader market here and if we take a look at brent specifically the front month contract which rolls tomorrow is trading at a discount relative to the march contract and trading firm ritter bush and associates saying this

reflects the fact that russian crude is still being absorbed into the global market, but that the sanctions and price caps will begin to bite in a couple of months. natural gas, though, is today's big mover tanking about 9.5% as the cold snap ends and forecasts call for warmer temperatures that contract also does roll today. exxon in focus after two of its european affiliates sued the eu over the wind fall profits tax, the company saying the tax will undermine investor confidence, discourage investment and increase reliance on imported energy and fuel products ex on adding future investment in the region will depend on a stable and predictable investment climate brian, back to you. >> thank you very much. so with crude oil prices down again today, although up a little bit from where they were, gasoline price right side sitting at their lowest levels of the year. but what will next year bring to consumers? patrick de haan head of gasbuddy just published their outlook for

last year. patrick, long time no see, it's been like 12 hours, by the way, but in that time you have the outlook. what are we looking at for, i don't know, maybe the first three months of next year? >> well, brian, some good news on the totality of 2023, consumer is going to spend close to $50 billion less on fuel we project in 2023, but as you mentioned, gas prices right now hovering at some of the lowest levels in 18 months. we could drift a little higher into the new year as china starts to reopen their economy, more oil consumption likely occurring, that pushing oil prices up. oil prices next year likely to be a little bit lower than what we saw this year but, again, for consumers the yearly national average next year in 2023 likely to be 50 cents a bgallon or so below 2022 that's going to amount to about $50 billion that sticks in americans' wallets that they won't have to worry about

spending. >> if it sticks, patrick what happens if the china reopening pushes oil and gasoline prices higher again >> well, certainly part of china reopening is a factor in our forecast, but the biggest factor likely is a boost in refining capacity, not so much in the u.s. where we're going to add close to 280,000 barrels of refining capacity as exxonmobil's blade project opens this year, but more so refining capacity coming online in africa, asia, the middle east that will provide badly needed diesel and gasoline supplies in the months ahead >> right so i guess the question is, again, if we see -- there are sort of two big possibilities for next year and bob pisani talks about this, i know people who have forecasts of $40 a barrel and $60 a barrel oil. will we have to be beholden to that if the worst case scenarios don't pan out and china comes on line oil spikes again and if not

and we are going into a recession, i guess you have the answer there. >> certainly a lot with china reopening i think they will go through what we saw in the united states, covid cases could surge into the spring and that could keep oil prices under some selling pressure for the next couple of months until they get that under wraps of course, russia producing and exporting oil is a key element to this as well. as long as exports continue to countries like india and china and turkey, that could keep oil prices under pressure, but if china suddenly reemerges at full force here in the next couple months, then we could see certainly upside risk in oil prices hitting the triple digits yet again. that combined with opec plus policy will be the key elements driving prices and certainly could be upside risk if the optimistic situations pan out with china certainly i don't see it, i think we'll see a slow reopening, covid cases will surge and that could keep chinese demand a little bit less going into the summer months. >> all right

it would be great, like you said, great news for the consumer, maybe a win-win even patrick, thanks so much. we appreciate it. >> although as we talked about last night you could make a case for $50 oil as easily as $150. it is spectacularly confusing out there. >> i wonder if that means we won't get the psychological benefit of consumers going what if this goes back up again, if we don't get quite the confidence boost -- >> listen, it's great, gasoline prices down, saving money. i would venture to guess the majority of viewers are spending more on their home heating bill than what they are saving on gasoline. >> bingo. >> maybe not in phoenix. >> not yet could flight and travel disruptions permanently change how consumers book vacations we will skut that and the stock implications next. plus amc seeing the light, the company's ceo asking to freeze his salary ncsie shareholders are hurting details when "power lunch" returns. my name is douglas. i'm a writer/director

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welcome back frustrated travelers say they will never fly southwest again the shares are down 4% today, 10% this month the ceo says he's optimistic they can get back on track before next week as they drop more scrutiny from washington.

the stock is down 18% this month, but the holiday meltdown is also having a broader impact. seema mody has a look across the travel sector. >> a rolling effect. if you can make it to your destination, you're not checking into your hotel, your vacation rental or able to jump on a cruise ship. one silver lining, hotels in close proximity to major airports typically see a boost in occupancy when disruption occurs according to sdr there's preliminary data that shows 16 of the 56 u.s. airports submarkets are seeing slightly elevated levels of occupancy on december 25th and 26th jfk specifically, hotels around there up 16 percentage points from two weeks ago so there are some areas where you're seeing more demand going into the new year, though, truist analysts are bullish on booking holdings in expedia, he has a hold rating on airbnb as rates are expected to decline next year along with the broader economy. this holiday season will be crucial really for the cruise

lines that have been seeing their stock prices come under pressure this year, carnival on pace to close the year down about 61%. that is the worst year on record brian and kelly. >> wow >> that is rough see if it turns around, seema mody, back off a flight recently yourself. >> that's true. >> thank you >> i don't think it was southwest, though. >> no. >> first of all, i love the people who say they are never going to fly an airline again, you're forced to flien a airline depending on where you live. >> travel is essential, not a luxury people need to understand that. >> you live in new jersey -- i will never fly united again. okay guess what, you're hitchhiking. >> move. >> seema, thank you. still to come, a rough month for stocks just a few trading days left, we will trade some of the outperformers in today's three stock lunch.

- life is uncertain. everyday pressures can feel overwhelming it's okay to feel stressed, anxious, worried, or frustrated. it's normal. with calhope's free and secure mental health resources, it's easy to get the help you and your loved ones need when you need it the most. call our warm line at (833) 317-4673 or live chat at calhope.org today. it's time for today's three-stock lunch. there's been a couple. nike, feels line ancient history. let's trade them todd gordon joins us, founder of new age wealth advisers. good to see you, todd. let us begin with boeing do you like the stock here

>> hey, kelly, happy new year. i do, except we moved in a resistance here. it's had a great run from october. we have a $180 price resistance from march, so we need totes through there. plenty of good news, a hundred 770 order from ual, another option and they've taken on long-term debt due to the max shutdown here i also fear with the big move, it's kind of buy the resume ore, sell the news. with china opening, they lifted restrictions and carriers like ual says they're cautiously observing the scene. so on top of that, we are birdie continued supply chain of airbus aunts nod they were going to miss their year-end deliveries

>> with that technical resistance, we're going to say sell or don't tough right now. stock number two is nike a real nice pop, what are the longer or medium term trends on nike >> a big beat of eps was 30% above consensus. margins are squished here. inventory is increasing i don't think nike has as much pricing power. technically speaking, the stock is both low, that's resist yarns from august. if they can get through that, they have another set of resistance from june plus the stock i think is as expensive. they're expected to make $3.11 in fiscal year '23, which they're already in

6.6% revenue, so for me it's a bit expensive. my clients know i'm more of a crocs kind of guy. i like that one better. >> southern company -- feel free to show us your footwear now, by the way. >> yeah, my trading crocs are under there. yeah, i like it. good rotation in utilities with this big move into value interestingly, as rates have moved up we haven't seen as much of a response as we might expect personally i don't own this one. i have exxon they have two nuclear power

plants to come on line in '23. reports i read in and out until '24. but also, this one is not cheap. you prefer duke and exxon. >> todd, thank you we appreciate it today enjoy the crocs. todd gordon. all right. more "power lunch," next >> just wait. more miracles. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

sgleef another story we're watching today, amc's ceo asking for a phi freeze next year after a painful year for the theater stock. he's also calling on the company's most senior employees to forgo a pay raise, saying no increase at the top is the right thing to do. appeared amc got a credit downgrade this is basically near the bottom of the credit barrels. >> so, also, i believe it's something like $18 million in salary or total comp in the past this is a gracious move, but perhaps hardly going to be one of his choosing if this company's fortunes don't turn for the better soon and they end up what they have strategic

options to explore. >> you wonder if some of the oil -- are going to hang on? >> they didn't do enough to hold it up. >> that's because the thee was heavily shorted, you're going to squeeze did, how many shorts are left in the $3, $4 stock i've got to look at the data it can't be nearly what it was. >> absolutely. >> by the way? about an hour, we'll see how stocks are faring. the knack dak is down 1% names like apple, by the way, something saturday is breaking key technicals apple hitting another 52-we'll low, $800 billion in market cap loss speaking of tech, kelly, last night it was energy. tonight "taking stock" is about tech we'll talk tesla, musk, apple and other stuff that's not tesla, musk, apple. >> apple is around the $125, it

falls below a $2 trillion cap. it's actually amazing there haven't been more blowups. brian, thanks for watching "power lunch," everybody. >> "closing bell" starts right now. it has been called one of the most important stocks in the market this is a make-or-break hour for your money welcome to "closing bell." apple is taking the biggest hit on the dow jones industrial average, which is down about 200 points or so the low of the day was down 315, goes as high as 137. another 1% slide in the nasdaq, another painful week big tech