don't be sfrtrangers it's much better like this >> i'm tripling down on health care, abbvie, they have rinvoke and skyrizzi >> another reminder, lee cooperman joining us in overtime we'll get his view object market certainly looking forward to catching up with him that does it for us. "the exchange" is now. >> thank you, scott. hi, everybody. i'm kelly evans and here's what's ahead stocks are back to sell-off mode after strong jobs data and hawkish talk from fed members like esther george this morning. but is the fed focusing on the wrong data and is it working from unreliable models? one of our guests says, yes, they are, and we're in for a hard landing because of it plus, the great valuation reset. we've seen multiples collapse for names like amazon, tesla, and alphabet is there more to come or has the reset run its course we'll ask the dean of valuation

himself. and speaking of which, you may recall longtime tesla bear carter worth reversing his short position on the stock a couple of weeks ago, but it's down almost 20% since then. he's here to tell us what he's doing next but first, let's get the details on today's sell-off. bob pisani is at the new york stock exchange >> you have the fed higher for longer, talking about getting interest rates all through 2023 high and you have, of course, a strong jolts report. that's not a good combination. we haven't made any attempt to rally at all this is what you call generally down 1% day. usually, some of these indexes move a little differently than each other, but not today. basically, the whole market is down 1 to 1.5% growth, not doing much worse or better than value today. that's a little bit unusual. i want to show you some of the big growth names that are out there, though. kathy wood's arc fund. here's some megacap. apple's holding up a little bit better microsoft's just having a terrible weak. it's very rare you'll see

microsoft down 7% in a week, but that's almost where we are nvidia, advanced micro, not doing much better at all some of the speculative tech stuff, all the katy woods stuff is down 2 to 3%, z scaler, some of those other names, all, again, even down more than, 4% or so. i want to highlight some health care health care was a very big outperformer, and united health was a big mover for the dow jones industrial average, but it's been a very tough week for any of the managed care -- humana is in the medicare advantage space. but it too has been down and kind of weakened the last few days, as well. so they're selling some of the winners, comparative winners for 2022, as well as some of the ones that are losers like big tech stocks. energy stocks are bouncing because we have a nice little bounce in oil, but remember, oil was near a 52-week low yesterday, and generally, the oil stocks are not off to a great start at all pretty rough day today

not a lot of good news for the bulls. kelly, back to you >> not at all. bob, for now, thank you. bob pisani now let's take a look at the great valuation reset of 2022. we started the year at or near record highs in terms of market cap, remember, apple was briefly across $3 trillion all the megacaps were approaching $2 trillion. then came the fed, rising rates, macro risk, and you can see there, valuations plunged. amazon, the biggest loser dropping below $1 trillion apple still the biggest company in the world lost $1 trillion of market cap alphabet and microsoft, the relative outperformers, but still getting crushed. adds for their multiples, alphabet and microsoft trading down near 20 in alphabet's case, only 16 times. still for the others, above the s&p 500, now for amazon, it's still at 48 times forward earnings so has the great reset run its course or not? let's ask aswat demoterin. it's great to have you here. welcome. >> i'm glad to be on

>> what do you think when you look at -- i'll call it f.a.a.n.g., you know what i mean, megacap tech are they a buy here? >> i think that a year ago, if you looked at them, they were priced so richly, you're saying, well, something's got to happen here i think at this point, if you look at the pricing you can get them at, i feel pretty comfortable holding them in fact, i hold five of the six stocks other than netflix, because i think at the prices they're trading at now, they're much better bargains than they were a year ago. a year ago, i thought they were pushing for the skies. >> just as a side note -- not a side note for those that are bullish on netflix, why isn't that in your portfolio >> i think that the entertainment business is in for a complete shake up. it's not just netflix. you see it with netflix, you see with disney and warner the business is broken and needs to be fixed. i'm not sure where the fix is going to come from until i get a better sense of how the business is going to play out, i think netflix is off

my list. >> wow well, let's -- like i say, putting all of that aside and moving on to what else might be going on in the market, if megacap tech looks more reasonable to you, are there areas that don't we talked yesterday about the staples and some of the valuations that we're seeing there. and what about the market as a whole? >> i think the market's in a holding partner right now. last year, inflation was the big story, it dominated everything this year, the economy is going to come into play as the other big player i mean, i think we're all waiting for a recession, but none of the numbers seem to back it up. i think tat this point, the question is, if there's a recession, how bad will it be. i think this year, the conversation is going to shift, at least partially from inflation. inflation will continue to be on the table. but the economy is going to become a much bigger part of the discussion and how the market is going to behave for the rest of the year >> in other words, it's hard to even say whether the market is cheap or expensive, because the major question out there, if we're heading into a recession, how bad will it be >> market timing is always a

dicey game, and it's more than dicey than ever before if anybody claims to tell you which direction the market will go this year, they're lying. because i think that every -- i mean, you look at the indicators, they're at cross-purposes with each other at this point, i think the best you can do is buy companies that you believe are good companies and then hold on for dear life, because it's going to be quite a ride this year >> let me ask you about tesla, speaking of holding on for dear life, is that -- it's a different thanimal >> it's the danger of buying a company that's so closely tied to a personality that you're no longer buying a company, you're buying a human being in a sense, what you're getting here is a bet for or against elon musk. and i think that tesla, you know, needs to find a way to disconnect itself from personality. and that's going to be tough to do because it is a company built in elon musk's image. and i think that once a company

becomes equated with a person, you run all kinds of risk. and tesla's investors are facing those risks. >> absolutely. other parts of the market where people are interested, energy, for instance, had quite a run, but now oil prices are crashing. i don't know if you've run the numbers there, for instance, but kind of, i would just be curious, your take on all of these different sectors that are up for grabs >> i think one of the things about oil is historically, oil is always at a normalized price, where people assume that the cycle would always play out, you would return to a normal price the last decade, i think we've lost that indicator. i think if you ask most people what a normal oil price is, people have absolutely no idea so i think that what you saw in the last -- going back all the way to 2020 with oil, up and down, is essentially what you're going to see for not just this year, but perhaps for the rest of the decade. i think this is not going to be a nice, solid bet on returning to a cycle >> wow do you -- when we look at the energy transition, which is playing a huge role here,

obviously, because we don't know what that kind of terminal end point will be for fossil fuels, you know, what about some of the new tech, clean tech plays, where, talk about high valuations we saw quite a big run-up there. >> the problem is that talk has outstripped the reality. the reality whereas, dependent on fossil fuels, pretty much as we were almost a decade ago. in spite of all of the talk of the increase in green energy, we're still incredibly dependent on oil and gas for our energy. so i don't think that's going to change in the near-term. and i think we need to come to terms with the fact that without fossil fuels, we would be out of energy sooner rather than later. green energy might eventually fill in some of the gap, but it's not going to happen next year or two years from now that's more of a long-term bet >> this will be my last one then i appreciate very much -- you've got such great insight what about the financials, where, you know, you've got really low valuations, but at the same time, we could rattle off the litany of head winds, and goldman, for instance, was a

top pick at b of a this year we're hearing that name come up quite a few times, but it's got a terribly cyclical business, they're cutting back the free coffee at the office what would you say about that one? about financials in general? >> historically, financials have traded well above book value in normal years i don't think those days are going to come back i think we're going to be lucky to see price-to-book ratios close to one, simply because the capacity to generate excess returns has dropped off. so long-term, i think, this is the new reality that financial service firms face, is that competitive advantages have eroded, partly because of technology and the way in which people interact financially. but i think in the long-term, we might be in for a new reality with financial service companies in terms of price-to-book ratios and what these companies trade at >> wow we'll leave it there for now and i'll ask you about the rest of the alphabet when you come back to join us, if you would be so kind thanks for your time today

>> thank you >> let's drill down on tesla for a moment longtime tesla bear carter worth joined our werth last month. all right, love to have you back on for this. i'm sure this is this isn't unusual for stocks like this you try to get in. they're moving against you, what's the play now. >> you know, what comes to mind, there's a great id yum in the english language, it's snatch ing victory from the jaws of zpeet. what i have done is the exact opposite i've reached deep down and snatched defeat from the jaws of victory, which is to say, everything was going great, have been short forever let's cover this in nibbles small long it's not working the stock is down, as you say,

another 18 or 20% since then the question is basically, is it in effect. it was a week ago. it is now. and can one get a tradeable bunch. it certainly would have been better to stick with the short but at this point, it's just so lopsided one way, everyone loved this thing and now everyone hates it. and almost invariable in life, it's right to take the road less traveled not popular to be short when it was loved and now not popular to be long when it's abhorred >> this is why i love you. you could have been like, i'm sick, i'm not available. you're like, sure i will come on and talk about what to do here, because these are the things investors grapple with every single day asworth said, the problem with tesla is its exposure to a person and a personality and not

a company. you're not a fundamental investor, but you could imagine a major catalyst could be something like bringing in more management, yaadding a pr department i don't know if it will ever happen, but what else could be a catalyst for the stock to move higher >> it's interesting you mentioned this circumstance. think about what is a great personality, but remember what happened at apple. i mean, steve jobs, you couldn't have a bigger -- he was pushed out. they brought in jack scully, who was running pepsi. literally. he goes, i don't know anything about computers, they go, yeah, but you know a lot about business the first thing he did, he looked around and said, i have my first act, i think we feed to get rid of steve jobs. people were like, what?! sometimes it's the radical thing. gersner came in at ibm and they said, we've got to get out of the computer business. and they said, what, get out of the computer business? obviously, would a musk removal from the cult of personality, would that be bullish or bearish? i don't really know. but certainly, that could be a

catalyst >> i like that you say that you don't even know if it would be bullish or bearish though. be careful what you wish for >> here's the best one if warren buffett were to die, does the stock go up or down i have asked this for 20 years big institutional plants say, goes down 5 to 10% others say, no, no, no, this thing is going to rally. they'll break this thing up, so who knows. you can't know >> i'll take the down. i'll take the down 5 to 10%. >> or how about down initially and then up? >> we're trading heavy again to kick off the year, carter. just a thought on that >> it's a mess >> just going to leave it there? it's a mess? you told us. i remember a couple of months ago, you were like, come the turn of the year, we're going to fall you have a cliff. >> it's not good heavy is the word. and you know, ending with this, the expression doesn't act well. people don't like that expression they're like, you're personifying the market. it doesn't act well.

but people see it in sports. if a pitcher is not playing well, they take him out. the stock market does not act well individual stocks do not act well >> it's well said. well-observed. carter, thanks so much for your time today carter worth let's turn now to some tech stocks that haven't been crushed over the past year you call it tangible tech, because these are a lot of hardware names and they're holding up okay right now. frank holland joins us with more frank? >> let's take a look at this chart right here this is logitech you can see it's doing a lot better than okay it surged 38% since the start of q4 of last year and it's part of a rally of quote/unquote tangible tech that's really maintained momentum going into the new year and it includes dow component cisco, rising double digits during that same period. they rival the networking space juniper up almost 20%, actually, over 20% right now and look at this this is the maker of javer headsets, surging 39% during that same time period. in contrast, megan cap techs and

high growth names, both of them in the red you can see them down there on the bottom of your screen. the megamacro trend of hybrid work is part of a reason for this surge and those office tech makers like gn nord. the networking name is getting a big boost and that shift to the cloud. the majority of tech infrastructure is on premise and 2023 spending estimates for traditional workloads still remains robust you can still right here, it's actually higher than cloud spending companies that can provide both, think an sap, an ibm, even an oracle that's a legacy tech name. it has really jumped 36% since the start of q4. they've been the biggest beneficiaries of this inflection point. >> it's fascinating. and yet, you know, do we read too much into the trends of the recent past or is it just a valuation reset or company specific, but it does seem as though this segment of the market is holding up much better >> it's definitely a lot better, as investors have done what he call risk off.

but investors don't want to look -- are not looking for so much risk. that's why we see in the katy wood arc etf suffered. these are stable companies with stable free cash flow. something investors are really looking for during this time period >> frank, thank you. coming up, tomorrow's jobs report will be front and center for the fed. and while many investors are still hopeful for that soft landing, my next guest is telling them to brace for impact we'll dig into the data with mkm's michael garda. plus, gold prices are sitting near seven-month highs, so are precious metals the way to play this recession risk? we'll speak with one money manager who's been bitten by the gold bug as we head to break, here's a final check on markets the ten-year yield still around 372. but we're talking about 1.25% sell-offs for the dow and s&p. the dow is down, 1.5% for the nasdaq "the exchange" is back after this

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welcome back we've got a bond flash in the bond market. rick santelli has the action what do you see? >> the three months to ten year, the yield curve spread, the recession spread has turned even more inverted. you can see it there it's the most inverted at minus 89 since january of 2001, 22

years. you see the two-year chart there. we're going guns hot it's going to be on space for the highest yield close since the end of november. it heard the fed, but the ten-year is still acting lazy. that's what's driving the spread back you >> that is quite -- in fact, this is perfect timing for our next chat, rick. stick around, if you don't mind. we've got some breaking news from st. louis fed president james bullard with some remarks on the economy and some rates. steve liesman, what are the headlines? >> kelly, st. louis fed president jim bullard saying several factors may combine to make 2023 a disinflationary year among those things that will be factors are the fed's front loading and aggressive policy rate hikes he says the policy rate is not yet sufficiently restrictive, but he said it's getting closer. and he showed one of his charts, remember the one in november we talked about this idea of a range of 5 to 7% there's some suggestion that maybe 5% is closer -- or above 5% is where he thinks it ought to be. the policy rate, he says, will

become sufficiently restrictive during 2023. inflation remains too high, but he notes that it has declined recently inflation expectations are back to relatively low levels, again, crediting the fed's aggressive rate hikes for that. the second half of gdp growth, he is making note of the stronger data we've had. he said it's going to be stronger than the first half, but he does see growth slowing down to being just below potential growth the current labor market situation, however, he says, is unprecedented. and he's concerned about the possibility of increased financial stress, but notes that the markets transition to dealing with these higher rates has been relatively orderly. i'm not going to call this dovish, but it's not as especially hawkish as he might have been back in november when he talked about this range of 5 to 7% for a funds rate he's still showing a range, but that top range has come down now, being below 7 >> i'm watching the market to see if it starts coming back at all. steve, stay right there. we have to decide once and for all if the fed needs to halt

here my next guest says, we've gotten a lot of noise, but the fed is still focused on lagging indicators and they're not going to start hiking until something breaks okay, so, mike, you know, people -- okay, i don't even know where to begin. we heard from neel kashkari yesterday, who kind of acknowledged that this is a demand-driven inflation, but they are now not talking about responding to the same indicators back then that would have told them to be hiking, which you say now -- like rick's yield curve, you just told them about, which are telling them to hit the breaks is that right? >> no doubt about it if we take the fed at face value, what they're telling us the intent is is to get to restrictive and hold there for an indefinite period of time, at least all of this year that is not the set-up that you would expect for a soft landing. it is a potential recession set-up and not necessarily one

that's short and shallow rick mentioned the ten-year at a three-month t-bill spread. you have to go back a long way to see an inversion this deep. and when we have seen inversions this deep, we actually had fairly severe recessions my concern, you know, moving further into 2023 is this restrictive and hold stance until lagging indicators break, with the fed focused on service sector inflation, that's actually a component of the index of lagging economic indicators that the conference board puts out it means it follows the cycle. it doesn't lead the cycle, it doesn't even move with the cycle. and so, if that is what the fed is focused on before they relent, i think we've got some storm clouds on the horizon for the business cycle >> and steve, let's bring you in here you obviously know very well the models these guys are using, the methods, the approaches that they're watching there's many of them -- they're from all different parse ots of

country, is there anyone who you hear saying, i am going to take these signals seriously, i am going to think about how we get ahead so we don't overtighten and cause a deeper recession than needed. >> aii think they're all lookin at everything. but the emphasis that they give, the emphasis is on the labor market, and the extent to which the shortage of labor in the economy right now is going to drive wages and that will drive inflation. and what the fed is trying to avoid is to sort of permanently end up in a place where we have inflation that's higher than their target and they believe the way to do that is to bring demand down more in line with labor supply kelly, you and i have spoken about this idea that this issue of a labor shortage and labor force growth is going to be below potential for -- or below what it was for some time, this potential growth could be quite a bit lower than what we think it is. >> rick, what would you add?

>> you know, i think the labor shortage is a very complicated issue and i think we treat it too superficially. i think there's lots of reasons why 5 to 7 million people aren't back in the workforce, and over time, they will come back. but the government has made it more palatable to have other alternatives and onsee how the fed erring on the side of overbearing thinks in some way, that will really bring the skilled labor that's mismatched we have plenty of unskilled labor that's starting to come into the country, but ultimately, the skilled labor for those jobs that we can't fill, the fed isn't going to make a difference there. i think there's very little doubt they're going to hold tougher, because they see they don't want to make quote/unquote, the same mistakes they made in the early '70s. whenever i hear that, i pull my eyelashes out. the early '70s, where was china, where was the global economy it's a horrible comp and to think that they're nervous about making the mistake again that

they made 60 years ago to me makes very little sense. >> mike, that period, we also saw an accommodative fed you can read all about this in any book from the time this one has been incredibly hawkish. you saw the jolts report yesterday, from 10.5 million job openings, it still sounds like we have a rip-roaring labor market we have rip-roaring job openings, high wages why would we have paused now >> i think the fed is not going to just take the message from forward-looking indicators you know we saw the ism data yesterday with the prices paid an ex just imploding i mean, that suggests that we could have sub-2% headline inflation by mid-year. but the fed is not convinced by that, because of this overshooting that's already happened they really want to be sure. and to rick's point, i do think i agree with him the analogy to the 1970s makes no sense we went through a two-year period of hyperaccommodation that's been completely reversed,

whether it's fiscal policy, but more importantly monetary policy in less than a year, the fed lifted short-term interest rates more than 400 basis points and even if they were to stop the rate hikes now, they're still doing quantitative nightening in the background so that is a very abrupt tightening of monetary conditions over a relatively short period of time most of it was necessary, because they were behind the curve, but now this focus on backward-looking information, i do think sets us up for a difficult period of time this year and, you know, potentially moving into 2024 it's really a bad news is bad news and good news is bad news market, because that data is going to reinforce a hawkish fed, and weak data, they'll be reluctant to shift gears with this hike to restrictive and hold strategy. so that is not a conducive situation to a big stock market rally, in my opinion >> and steve, i'll give you the last word here, and maybe we can

circle back to what bullard just said is he opening the door or coming around at all to the idea of -- and this isn't just mike who's saying this, by the way, we've seen greg writing about this a little bit so, is bullard at all starting to sound flexible about a pivot, steve? >> it depends on how you define pivot. i think what he's doing is setting up the conditions or laying the rhetorical groundwork for a pause here nothing more than that i don't think the fed is going to be cutting. i do think, though, what he's saying is consistent with what outlook is, which is that the fed will be raising rates further up to the 5% range that's where he seems to want to be we talked to esther george, she's above 5% this morning, and she said that she thinks that they ought to hold it there well into 2024. i believe somebody yesterday said that they were at 540 i think it was neil el kashkari, said he's at 540 and wants to hold it there. so i think -- i'm interested --

i don't know if we have time for this, but what michael darda would do with rates right now. i don't know what the right rate is maybe it's here, mike, but where would you put it and keeping in mind, as you say, $1 trillion or more will roll off the balance sheet this year. >> i would stop the rate hikes right here the fed can always resume if it turns out that growth doesn't really slow and inflation doesn't really come down and they can keep an eye on forward-looking information, watch those bond market inflation expectations they've really come off the boil and so if they paused, and then there's a big breakout in inflation expectations, by all means, they can start again. but take a breather here and let's watch the lagged impact of what they've already done hit the economy. >> very, very interesting. mike, thank you all. michael darda, steve liesman, rick santelli. still ahead, is it lights out for real estate or could the housing market get a little boost from buyers overseas diana olick will explain as we head to break, take a look at the dow heat map with

chevron, verizon, and merck, a few of the bright spots, walgreens is the biggest laggard. more on their rngs aereainft the break. "the exchange" is back after this more you. so thank you. we hope you like your work. (♪ ♪)

welcome back to "the exchange." after the comments from the fed's james bullard, we are off the low. the dow is down 277 right now, but less than 1% declines. microsoft is actually the worst megacap name today it's on pace for its third straight day of losses and worst week since september this after d.a. davidson initiated the stock with a buy, saying it's well positioned for a downturn, has significant upside thanks to its investment in artificial intelligence the analyst behind that call will be on next hour to make its

case msft down 2.6% lamb weston hitting an all-time high they're up 10% quite familiar with them in our household. beat and raise story for both of these companies. the other two staples, not so much walgreens sharply lower after seeing a decline in covid test kits and vaccinations. that's hitting their walk-in traffic. it's down 7% and constellation brands is the worst name in the s&p after missing on earnings and lowering their outlook despite everybody saying that alcohol should be trade down and recessionproof. stz down 9%. let's get to tyler mathisen now for a cnbc news update tyler? >> thank you very much, kelly. here's your cnbc news update at this hour. the dna of brian kohberger, the man accused of killing four university of didaho students ws found on a knife sheathe at the crime scene, an investigator said, in unsealed court documents. kohberger's arrival in the state, in idaho, also means that sealed documents that could answer key questions in the case

could soon be released publicly. the south carolina supreme court has struck down a ban on abortion the measure banned abortions after cardiac activity is detected, typically around six weeks into a pregnancy, with exceptions for those caused by rape and incest or ones endangering the patient's life and michigan democrat senator debbie stabenow announcing that she will not run for re-election in 2024, opening up a seat in the key battleground state the 72-year-old stabenow had not previously indicated that she would not seek re-election kelly, back to you >> tyler, thank you very much. see you then still ahead, you haven't heard much about gold lately, but it quietly hit a seven-month high yesterday, and my next guest says it should be part of your portfolio in 2023 we'll ask him whatever risk-off trades he's positioning in now intelligent technology. courageous performance. discover a new world of possibilities in the all-new lexus rx. never lose your edge.

welcome back stocks are sliding today after those private payrolls surged in december, dashing hopes of an easing labor market. all three averages down more than 1% at the lows, but hawkish fed and recession concerns have boosted gold and silver. the precious metals rallying about 10% over the next two

months my next guest has been touting them for a while and sticking with it. michael is president and portfolio of the permanent portfolio of funds i'm so glad you're here. i haven't had time to catch up on the precious metal stories. the miners are up 30% since october. this is out of the ordinary. >> i think gold, silver, a lot of the precious metals were in a consolidation last year. the biggest was probably the strong dollar. the dollar was hitting all-time highs and multi-decade highs against other major currencies and to the extent that occurred, that was putting some risk and the aggressive fed moves on interest rates, which is a bearish indicator for gold as the market proceeds, the fed will be closer to being done that remains a question, but maybe the direction we're going in and the dollar is not likely going to sustain the levels it has. investors, i think, are taking a

fresh look at the precious metals on a longer-term basis, as they should this is a good hedge against stock and bond risk, against uncertainty and inflation and money creation and those issues are all very relevant right now they were last year, but prices didn't reflect that, and they continue to be going forward >> right so i guess now we have a situation where we say, okay, you don't want to jump in on something after the action has already happened are the same conditions that led to the rally the last couple of months still in place right now? >> well, absolutely. and i think that gold could go a lot higher, as well as some of the other precious metals. obviously, like real estate, every precious metal has its own individual dynamics. but the fact of the matter is, you know, we just passed, what, 3 trillion plus in new spending in the last six months, that hasn't really hit the economy yet. you've got potential recessionary scenario, where gold typically performs pretty well in that environment

so i think the reasons -- look, we look at it as a long-term investment, not a trade. if you're a trader and it's bumped a hundred bucks in the last week, you may want to wait until a better opportunity comes, although we would view it more as, figure out how much of this you need and stick with that and then maybe you buy on dips, but you hold it and gradually add to it versus trading >> and like you say, this isn't the whole portfolio. what else do you think is attractive for this year and for the kinds of conditions that you just described >> well, this is a mixed environment. we have a lot of environment but that -- that's and that's being offset by liquidity being pumped into the market through federal spending programs, which hasn't hit the market yet. so we may see an inflation decrease here in the shorter

term that seems to be the direction we're going. although, i think it's going to be more stubborn and much harder for the fed to get to the 2% that they're objectifying, i guess. and that makes sense to me in the recent comments from the fed about higher rates for longer. it makes perfect sense, given the environment that we have and the push/pull environment. with that in mind, diversification. we're not negative equities, but equities have some head winds, so you want to be selective. companies that make money and control their cost structure in bonds, we're pretty short duration and high-quality balance sheets >> it's a theme we hear over and over again this is the -- this is the play book, so to speak. it's what everyone's trying to scramble to catch up on. michael, thanks for your time today. >> you too >> michael cogino with the permanent funds portfolio. be sure to stick around for "closing bell" overtime, because leon cooperman will be weighing in on recession risk and reveal where he is investing right now.

that will be at 4:00 p.m. eastern time right here. still ahead, if you thought tesla was the only ev stock you should know better shares of this company are also fallinging 84% it's not stopping two luxury car makers from making a big push into the market. that's next on "the exchange." into the heart of iconic cities is a journey for the curious traveler, one that many have yet to discover. exploring with viking brings you closer to the world, to the history, the culture, the flavors, a serene river voyage on an elegant viking longship. learn more at viking.com

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and the next next trip. so wherever you go, you'll know you're getting the most out of your travels and you can keep thinking, “where next?” welcome back it's not just tesla posting dismal performance lately. that was the mystery chart blink charging and charge point are about 60% off the highs. it's still not stopping mercedes from making a big push into evs and they're highlighting it at ces this year. phil lebeau is in las vegas with that story it's a good-looking car there, phil >> yes and mercedes will point out that it is the most efficient electric vehicle in the world, according to them. we're not going to get into specifics here, but it's certainly a nice piece of eye candy. appropriate that you mention

charge point in the introduction, because charge point is part of news that mercedes has just made here at the consumer electronics show. mercedes will be setting up its own dedicated ev charging network. what will it look like the company plans to open up 400 charging locations, dedicated charging locations think of the tesla super charger network, this is tesla's answer. 2,500 high-powered chargers. they are going to start opening those this year, expect to have it all completed by 2027 here's the importance of those charging stations, according to the head of technology for mercedes benz. >> we think it's an important buying factor for our customers here we have the great range of mercedes benz. it's going up to 400 miles with one charge but now we're including a premium charging experience, with high-power charged, 350 kilowatts, located in the best locations in the u.s

>> we've talked about this for some time. more charging stations are needed by all automakers, and really by the charging companies as well. evs are just 5.2% of total u.s. sales, but they'll be quickly ramping up over the next decade and well into 2030 to 2040 as for mercedes benz, it is still weigh behind tesla in terms of selling electric vehicles, but market watchers believe they can close that gap. >> well, the intention and the clear plan is to accelerate here so the growth rate in the first nine months, when it comes to evs in 2022 were 120% in the u.s. now we are here in the next few weeks with five different models >> like all automakers, mercedes benz has suffered in the last year as there has been increased pressure on them, despite higher selling prices, the fact that volumes are under pressure, the possibility of a recession, all

of those weighing on shares of mercedes benz. by the way, mm 8 as well as charge point will be partnering with mercedes benz to open up that charge network. as you appointed out in the beginning, kelly, it has been a rough year for the charging companies as well, as you take a look at charge point, down more than 7%. >> very discount landscape from ces one year ago phil, thank you! coming up, this is the key number in tomorrow's jobs report d' fes next move, but it's not heading in the direction that wall street might want we'll dig into that, next. ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo.

the december jobs report is out tomorrow morning, and we've had multiple investors right here on the exchange tell us that wages are the number to watch. in fact, just this week, one said that a drop in wage growth is the one thing that would get him bullish for then he'll stay bearish for now because they're reporting an increase of 38% in salaries in december from the previous month. the chairman and ceo of recruiter.com joins us do we have that stat right wow. >> i know. we were pretty surprised about it too thanks for having me back on the

show we saw an increase in the recruiter sentiment from november to december out of 5 went from 3.3 to 3.6, so there is optimism among the working recruiters the other thing is 25% of the rolls that recruiters were working on were in that $40,000 to $80,000 range so not that high-end worker but that $40,000 to $80,000 salary, so we're certainly seeing that pressure on the overall salaries themselves as recruiters are being used now to go fill those rolls. >> sure. there's been all these layoffs lately, even just now, one after the other it feels like in the inbox, but can you put those in context for? do you see them spreading, picking up pace, broadening out, or is this, as we talked with some of your colleagues about, a white-collar recession where there are different segments of the job market behaving differently? >> so thanks to our partners we've been tracking layoffs and who's coming next.

while over the last two months we200% increase in reported techoffs we saw a 100% increase in facilities like warehousing and in mortgage brokers, mortgage lending. so there are certainly looming recessions affecting other industries as well those sales, sales rolls are actually where we're seeing that segment actually pick up in terms of the overall demand for sales rolls. and the sentiment among sales candidates is actually more optimistic than others >> again, the warehouse layoffs are certainly a sign that it's going to be a blue-collar -- it will affect all parts of the income strum at some point so as we kind of -- this is eve of the big print tomorrow morning, what do you think are the biggest take-aways for investors from your data, and what would you tell -- i don't want to call it a warning, but what would you tell people to be watching for >> you know, so, look, the other thing that we saw is that there

were no recruiters in our index reporting that they're working on new open rolls, that they were all working on backfills. these could be backfill rolls, meaning those left empty by someone leaving, voluntary quitting, et cetera. so that would point to not seeing a very large new number however, you're also seeing recruiters working on those $40,000 $80,000 salary rolls and that really shows the seasonal, the more transportation ore ynted, the health care workers, and those numbers. so stlr lots of open areas it's a very tight market, which is why the recruiter sentiment is so high >> lots of open rolls, fewer new rolls, and we'll parse it out as we get that number in the morning. evan, thank you so much. great to check in with you >> thanks, kelly still ahead, mortgage ratess week but still more than double from a year ago.

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welcome back want to get to one more thing before we go a potential bright spot from the housing market from an unexpected place let's get to diana olick diana? >> one word for it -- china. travel restrictions are lifting this weekend, but apparently chinese buyers have already been searching online home searches on the zillow of asia jumped 60% just after the announcement according to the company's ceo. he says more than a third of that was to the u.s. >> for the chinese investor, they love real estate. for them still u.s. is quite cheaper than where they are. even the southeast asia. so for them it's not about their cash buyer they are not interested. they are looking for good deals because this is the time where the prices are right >> chinese buyers have long loved the u.s. but dropped to

third place after the start of covid among top international buyers of u.s. properties. they are still first by dollar volume, but previously it had been more for investment properties in l.a. or manhattan. they are now searching as owner-occupants looking at larger family homes in areas like houston and austin. and he says he believes they could help juice the spring housing market as they are starting to make travel plans to come to the u.s. to go house hunting. kelly? >> i admit this is kind of blowing my mind. we have chinese cash buyers looking to buy homes in, say, texas, this because they anticipate they'll be moving and living there is this demand genuine or investment >> well, that's what he says now, we've seen investors as i said before we've been out to california where they buy up large blocks of homes and especially in manhattan and the height end but this is a little bit different to see them in texas and buying these large family homes. he says they're searching out home offices, more bedrooms,

outdoor space, which says to him they may be living there and these are mostly cash buyers so they don't care where mortgage rates are >> if i was thinking i have to sell my home, i'd love a cash offer from a chinese or international buyer -- >> list on the website >> will my own realtor or are chinese coming to places like that or do you have to get in front of and use those internet engines they may be using? >> they may be looking at villa, but juai is across asia. i've spoken to those in california, but previously when there was so much demand in california, i spoke to agents who knew all about it and were listing some properties on it. >> that is totally fascinating diana, thank you diana olick. that does it for "the exchange req coming up, the ceo of pioneer natural resources joining us to talk all things energy "power lunch" begins right now.

i'm tyler mathisen tomorrow's jobs report, the adp number comes in ahead of expectations, but amazon thouns announces it will cut 18,000 jobs on top of cuts from salesforce we learned about yesterday. so this a specific tech problem or is it broader plus, google literally synonymous with the word search, but one analyst says microsoft's investment in a.i. could help bing eat into google's search dominance. we'll see about that and we know kelly is excited to chat bot that one. >> we have some fun plans for that i'll leave it there, tyler hi, everybody. markets are sliding this hour but we are off the lows. the dow is down 285, the nasdaq down 1%, the worst performer we came off the lows after some comments from the