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 fed's james

bullard a short time ago we're watching shares of unitedhealth, the highest priced stock on the dow, and down $11 a share or 2%, that's partly why the dow is seeing these losses silver gate capital is also plummeting they reported digital deposits of $3.8 billion at the end of their fourth quarter, down from nearly $12 billion at the end of the third. the shares are down 42%. the ceo saying the ftx collapse caused a crisis of confidence among its customers, tyler >> we begin today with some conflicting jobs data and headlines ahead of tomorrow's big labor report adp private payroll growth coming in hot. there you see it the figures in december climbing by 235,000 versus the estimate of 153,000 that was a big surprise given the fed's sort of attention to payrolls and so forth compared to those wall street estimates of 153,000 the fed is attempting to slow

the economy just a bit but big tech firms are continuing their recent string of layoffs amazon today announcing it's going to cut 18,000 workers, and here to discuss that are steve kovak and deirdre bosa i assume i'm supposed to walk over here to join you. are these cuts a tech problem, steve, solely, or is it a sign of something deeper? >> well, right now what we've seen is it's a tech problem, unique to tech, right? we saw them overhire during the pandemic there was this exuberance around technology that we're going to be stuck in our homes forever, buying new laptops and computers and phones every year forever. obviously didn't happen. and now we're seeing the pullback here. and i look at the hiring rates of the big tech firms, and you look at amazon at one end of the spectrum, over doubled their staff during the pandemic. >> during the pandemic >> now we're seeing them come

back to earth. apple on the other end grew by 20% or so during the first couple years of the pandemic so they were more deliberate in hiring and of course we haven't seen them do max layoffs yet >> deirdre, don't you agree, we have to put these in the context of how many people were added in order to understand the significance of how big and how deep these pullbacks currently are? >> absolutely. amazon is a great indication of that as steve said they were one of the biggest hirers and now they're cutting 5% of their corporate workforce, 1.2% of their total work "forbes. so it's not going to move the needle much in terms of the broader job market all tech jobs make up a tiny percentage of that but the question, is it a leading indicator? are blue-collar or warehouse jobs going to follow that may move the needle more. there's also the question if you look specifically at tech, is this enough? salesforce had 10% of their workforce? these are small numbers by

comparison for an amazon you take a look at an alphabet which hired a lot and spent a lot on data centers and office space during the pandemic and they haven't cut at all. they're still net adding jobs. >> tyler, to her point, we heard from evan last hour from recruiter.com, they're seeing big job cuts at the warehouse, the single biggest place that was shedding jobs other than technology >> what do we know about where those cuts are coming at amazon? are they warehouse cuts or corporate and h.r. and balk-office kinds of things? >> they're corporate, they're h.r., and they're also online stores none of these companies so far doing any major cuts in places like cloud, still very much a growth area. they are some of the fastest growing businesses in these companies, but that growth is decelerating and there's a lot of questions on the street, how much are those businesses going to decelerate. it's easy to cut marketing and ad spend, but that enterprise spending is a key question for

the year ahead and a lot of companies are figuring that out right now, january, the start of a new year so a lot of this remains to be seen, and that's why there's questions, do more cuts need to come. >> the fact that salesforce -- if you want to know about enterprise spending, salesforce does not make you feel great about them the other thing that's happening right now unnerving everybody is the fact twitter cut thousands of employees with no discernible impact on the customer product if you were wondering if you could make deep cuts, you have this staring you in the face >> in effect elon musk gave the rest of the companies to rip off the band-aid now, get the costs under control. there was a headline before we came on air he laid off a bunch of his advertising employees so it's an ad company, an ad-supported company and he's laying off those ploys last i checked, twitter is still operating so proof right there you can cut costs drastically and give permission no the rest of the industry. >> what did salesforce -- go

ahead. >> also to the point, it goes to the point twitter is cut bug look at meta, which has done a massive round of layoffs, but google and meta, these are the most projective companies in the world on a revenue per employee basis. that's why jobs, tech jobs may not make up a large number of the overall workforce in america but in terms of that productivity, in terms of revenue, they make up 10% of gdp. you can see that will have a complicating effect and could hit other jobs along the way >> i know this is a topic we'll return to over and over again here, the whole year in 2023 steve,deirdre, thanks very much >> our next guest has a pessimistic outlook on stocks based on the fed and has been warning to watch jobless claims since the middle of last year. he said jobs won't find the bottom until pmis does

housing, orders, employment, it still points to bad news for earnings and stocks. the chief investment -- where is the beautiful backdrop it's great to see you again. welcome back >> hi, kelly hi, tyler. how are you? >> good. so tell us, i mean, again, tip of the hat because you were one of the early ones looking at these pmis and, you know, numbers rolling over and saying this is bad news what are you seeing now? >> we're seeing the story continuing to evolve as the calendar year turns, we're moving into the next chapter of this same story it's not a new story so, yes, our h.o.p.e. freshg, housing orders, profits, employment, housing and orders got knocked around last year and that's continued into this year and we expect it to continue throughout much of this year now the focus is going to become increasingly and has become increasingly on earnings and employment

we're all talking about employment cuts, we're starting to see them and we expect that to broaden out especially pick up sharply in the second half of this year. >> i'm going to assume, michael, you're going back to the office after the beautiful backdrop let's talk a little bit about where you see -- how you see the economy you predict affecting stock prices this year i believe you have a rather aggressive downside prediction >> you know, it depends on how you look at it and what your framework is and our framework led us last year to have a pretty low target as well. it's 3,400 we got about 91 points from that at the september lows in the equity market, then we got a bear market rally. that's the tricky thing with bear markets they're far harder to predict than a quiet and grinding bull market so, you know, i'm not sure if we're going to end the year at 3,225, but we think we'll see that number before all is said and done and we do see the

economy recover. i think the key message that, you know, we're telling clients is, you know, last year we saw a bond bear market really bang around equities for lack of a better word, and now we're going to see the lag effect of this bond bear market where everything the fed has done and will continue to do with show up in earnings and employment, following this framework >> a hard landing is coming in late 2023, you say, and it's not priced in. so that means that we've got the earnings wrong and we've got the multiple wrong >> yes you know, i think last year again was all about multiple compression because of higher rates and what happened with inflation. that's not the same thing as pricing in a recession clearly we could see in the credit markets that hasn't been the case this year should feel a little more -- i don't want to use the word normal or fundamental to investors as it becomes more

about earnings, and everything we've seen in the rates market has its long and variable lag and, you know, this is going to be the year it starts up >> i remember early last year goldman was in your freamework and the metrics and we thought it was strange, and boy what a struggle they've had and are having let's talk specifics before we let you go what stocks are a buy here what names do you think investors should be really worried about? >> yeah. so we approach stock selection from both a quantitative and macro approach, so it's not specific fundamental analysis. again, we like to give examples of stocks that show up and overlap in both our fundamentally driven or quantitative models as well as where we want to be avoiding in terms of the macro outlook so today, we'll talk about two stocks, hamilton, allstate, those are two stocks in our fundamental long model, so one

of the fundamental stocks that have lower beta, higher probability, better realize and current earnings revisions they're growing. they're not super cyclical they're also countercyclical on the sell side of things, block inc., or sq and comerica, which has been a name that's been in our short model for some time, these are stocks with i would say red-flag fundamentals that are also very cyclical. so combining micro and macro is our approach, and these are stocks that pop up to the top of the list >> come back when you have better news. i guess booz allen and allstate, some better news for them. michael, we appreciate it. thanks for joining us today. >> thank you bye-bye. coming up, we're going to talk to the ceo of roku, the company announcing it has passed 70 million accounts. is it the right way to play the streaming surge? >> and walgreens boots, the worst performing dow stock today and one of the worst in the past

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we have breaking news on yet another vote on the speakership of the house of representatives. ylan mui has the story >> tyler, this to eighth vote for house speaker is expected to end the same way the previous seven did with kevin mccarthy falling short of the 218 votes

he will need in order to win the top job. currently mccarthy is down six republican votes he can only afford to lose four. he has been trying to work members on the floor and talk to them off the floor as well but some hard-liners are holding out and saying there is no deal, and, in fact, trust has been broken because details of their negotiations have been leaking out. so for right now, the vote is still ongoing, but the end is likely to be the same with no one elected as speaker of the house after this eighth round of voting guys >> and no work to get done in the house as long as there is no speaker. ylan mui, thanks very much no matter which service eventually wins the streaming wars, roku is hoping to stay above the fray the company introducing its own brand of smart tvs saying it now has 70 million accounts. boris julia boorstin joins us with the ceo of roku in las vegas julia? >> thanks so much, tyler that's right i'm joined by anthony wood, the

ceo of roku. thanks for joining us here today. the big news out of ces is you have these new tvs this is one of them right here why is roku making a bigger push into hardware when this is a money-losing part of your business >> well, roku's business model is to distribute our platform. you know, we just announced we passed 70 million active accounts, which is almost half of u.s. house hold dying to have a roku to watch with the way we reach those households is by selling our roku tvs and by streaming players. roku tvs are primarily sold through our tv partners like hisense but we are selling our own designed television. it drives a platform for innovation that we then give back to our partners >> it sounds like in a way you

see these hardware devices as being loss leaders, but you're launching them at a time when there's concern about consumer demand there is inflation there's talk of a recession. isn't this a particularly tough time to be doubling down on the hardware side of the business? >> roku is a service company we generate billions of dollars a year in revenue from advertising, from distributing services, and we have a great platform to do that. but the core of that business is the market share of our platform so 70 million-plus active accounts, we get that through selling tvs and players, and that's the big focus for us. >> let's talk a little about advertising. you generate revenue from advertising, and obviously there's been concern about an ad contraction, a concern that some of the streaming players aren't really spending and perhaps spending less on marketing, which is important for you talk to us about what you anticipate in this economic environment right now? >> you know, roku streaming

hours were $87 billion hours of streaming last year, meaning our viewers watched 87 billion hours of streaming that was up 19% year over year the world is moving to streaming. all tv is going to be streamed, that means all tv advertising is going to be screened and roku is the number-one streaming platform in the united states so, you know, it's just -- there's temporary headwinds obviously in terms of that, it's affecting us like it is everyone, but the world will continue to move the streaming the ad business is cyclical. it will come back. roku is extremely well positioned >> in addition to those ad headwinds, if fax you have new competition for ad-supported streaming from netflix as well as disney, what are you seeing so far i know that both of those businesses, those versions of their streaming services are relatively new do you think they'll really eat into your revenue when it comes to the roku brand? >> you know, going back to the big picture, all tv ads use to be on traditional paid tv.

those viewers are moving to streaming. we're still early in that process. most viewers have not switched yet. as tv ad dollars move to streaming, it's becoming mainstream >> anything specific you're seeing as ceo of roku with your advertisers and your clients >> we're seeing that, if you look at our overall ad business, you know, obviously the ad business, the industry is hurting right now, but the traditional tv, paid tv ad business is a lot lower than the streaming ad business. if you look at where the ad dollars are going, they are moving to streaming. we are seeing that in our business and, you know, the big picture also is that in times of economic uncertainty is when businesses make hard decisions and the biggest obstacle to the growth of our ad business is just all those tv dollars moving from traditional tvs to streaming. this economic downturn in advertising is accelerating that >> and we are unfortunately almost out of time

i just have to ask you a quick final question on m&a. does it make sense for roku to be a stand-alone business? we've been speculating about it as a potential target or partner for a deal what does the future hold? >> like i just said, the world is switching to streaming. it's huge opportunity. most of the opportunities are in front of us, and that's what we're focused on, building our business >> so, no comment on m&a but you know i have to ask anthony wood, ceo of roku, thanks for joining us. >> thanks. >> back to you >> julia boorstin and anthony wood, thank you. up next, tech struggling again today with some key chip stocks back in the red nvidia down more than 2% we'll break it down next and further ahead, 2023, a search odyssey microsoft looking to unseed google's search dominance, betting big on av.i. to get the job done and the ftc proposing a ban of noncomplete clauses. more power potentially this the hands of wkeorrs ly! welcome to d bark-ery.

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welcome back to "power lunch. i'm kristina partsinevelos the inventory buildup, demand correction, inflation, china tensions continue to take their

toll on chip stocks, especially in 2022, but unfortunately the sell-off continues today we're seeing it across the global boundaries, marvell, nvidia at least 2% lower qualcomm, micron warned that the first half of this year, 2022, would actually be pretty weak. that's why piper sandler analysts are playing defensive for the next six months for a name like broadcom for its lower valuation, and bernstein's likes names that have guided lower, cutting their capex and earnings estimates like nvidia, qualcomm, and amd. they say avoid intel quote, the business still runs off a cliff. guys, obviously still a difficult environment for chip names out there. big debate on when the rebound comes. running off a cliff is not mincing words. >> i pulled that i saw that was an interesting quote in that report >> wow >> are these actions, the chipmakers are talking about slowing, this is all

macroeconomic, isn't it? the presummings that china's not going to come back as fast, that the economies around the globe are going to slow? >> yeah. so those that i listed, the other interesting thing, you spoke about it at the beginning of your show was possibly this looming drop in enterprise spend and capex spend. that still hasn't hit the chip sector yet, so that could be another looming threat in the near term. you saw it with salesforce cutting. facebook at the end of last year will that be the next major ball to fall? not only cloud names, which is part of the weaker names on the nasdaq 100 today, but also chip points >> kristina partsinevelos. let's give get to bertha coombs for the cnbc news update >> at this hour, doctors from the university of cincinnati medical center ceda mar hamlin showed substantial improvement over the past 24 hours hamlin's medical team confirming

that his neurological function appears to be intact and he is waking up. he still undergoes intensive care >> with the joe biden is expected to send bradley fighting vehicles to ukraine in the next u.s. aid package. the decision to send the combat vehicles could pave the way for america and its allies for providing more powerful western tanks in the future. disney's "avatar: the way of water" topping $1.5 billion globally, becoming the number ten highest-grossing film of all time james cameron's latest blockbuster also overtook "top gun: maverick" for the top spot in the worldwide release from 2022 "avatar" is expected to continue rising through the ranks in the days and weeks to come i heard that some of these people who trained could hold their breath under water for, like, six, seven minutes

>> wow >> amazing >> amazing >> right >> nuts. bertha, thanks very much ahead on "power lunch," we have more on today's market downturn the dow off the lows but still now about 300 points oil moving higher meantime, while everything else is suffering. we'll talk with the ceo of pioneer natural resources shortly. heading to a break, check out couple of today's big decliners. applovin niche year to dated as a sell sentinel one

we have 90 minutes left in the trading day and we want to get you caught up on the markets -- stocks, bonds, and commodities. we'll head to the energy conference to talk with the ceo of pioneer natural resources in a moment bob pisani, markets are down at this hour, 31 points on the dow. >> everything is down about 1% we did get a modest lift midday as bullard made mildly dovish comments, inflation is still too

high but has come down that doesn't change the trend. microsoft has had a terrible week, down about 7%. semiconductors have had a rough week apple is stable but down on the week another group that did really well last year, health care, is under a lot of pressure. seeing the managed care names like united health, that was a big mover for the dow last year, been under a lot of pressure this week. humana, also in the health care group, all of these under pressure this week so growth and some of the defensive names under some pressure energy is up today, but remember, we were near a 52-week low in oil yesterday so a little bit of a bounce today but that was the big winner last year so the s&p 500 has been in kind of a trading range for the last couple weeks we can't really break out of it, and we really need some help, ty tyler, on that jobs report tomorrow, particularly on the wage component we need to see wages coming down a little bit or wage growth coming down. that would help the markets. >> thank you very much to the bond market and rick

santelli, who is tracking the action rick >> hi, tyler well, there's been a lot of various crosscurrents today. we started out this morning with initial jobless claims maybe a little too well behaved. we saw the service sector ism down for the sixth straight month in contraction territory, but yet yields moved higher. look at the 2-year note yield and you can clearly see that yesterday's fed post minutes up incited the market but then again steve liesman's interview you see right around 1:00 eastern there made a difference, bringing rates down a bit. the ten-year, you could see the ten-year is a whole different look to it the half-life of this tough guidance from the fed, at least based on the minutes, doesn't seem to last long with regard to the longer maturities. finally, the fed fund future, the pivotal point, the june contract of this year, you could see how it dropped down. the lower it goes, the more fed we have. but it's starting to come back and bullish comments made a

difference around 0.035 before the minutes. the guidance did affect the markets. but they affected the short end, which means, yes, the yield curve inverted more, which is probably what happened if the fed stays tough and the economy looks as though it's going to go into a recession right now we're very close to minus 90, the most inverted it's been in 22 years, and all of that is good for one area, the dollar index it continues to do pretty well in 2023 and many suspect that no matter how it turns out, our fed is more aggressive than other central banks, the dollar will be that benefit. >> oil is closing for the day. pippa stevens joins us >> oil is steady after declining 9% in the first two trading days of the year. but natural gas is once again the big mover, plummeting 11% to a one-year low

this is wholly weather driven. warm temperatures sweeping the country are upending this market with january off to the warmest start in more than 15 years. the weekly report today showed a large decline in inventory last week although it was smaller than forecast. now, despite this, the energy sector is up 2%, the only group in the green one name to watch today is exxon, the company saying yesterday evening in a filing that lower oil and gas prices reduced q4 earnings by about $3.7 billion compared to the prior quarter, but exxon posted a record profit during q3, so it is all relative. back to you. >> thank you very much, pippa stevens. speaking of oil, let's head to brian sullivan live at the goldman sachs energy conference and clean tech conference in miami beach with an energy power player hi, brian. >> hey, tyler. thanks very much yeah, with maybe the energy power player i mean, a great way to wrap

things up today. pioneer natural resources ceo joins me we lost 9% in oil the first two trading days of the year before today. i could probably make ten bullish cases for oil and maybe one or two bear cases. the bears seem to be winning what is up with oil at $74, $75? it doesn't make a lot of sense >> always great to see you it's been a while. and i firmly believe y'all bring on people like jeff curry, i'm firmly in their camps. china is coming back strong 2023 once we see demand pick up a couple million of barrels a tay by the end of '23, there is no supply left. the u.s. shell model has changed. abs and saudi arabia, as mentioned, they have little supply left, along with the uae. this is the first cycle in 45 years i see very little supply left in the world, and once demand picks up a couple million barrels a day, things are going to get very, very tight. >> why are we at $75

>> a combination of what happened in china with zero-covid policy, scr, we're down inventories in the u.s. with all the releases by the biden administration and then we have the recession discussion so it's a combination of all three weighing on oil prices it really should not be there. >> there's this pretty -- whenever somebody says that's an easy thought, i think to myself, uh-oh, maybe we shouldn't be thinking it. when we have to refill the 234 or whatever million barrels to the spr, natural demand, there you go but others say no, because of shale, we don't need the spr like we used to, and there's no rush to refill >> yeah. the only issue is shell is down in its growth rate it's only growing in '22 about 500,000 barrels of oil per day i'm predicting it will slow down to about 300,000 barrels of oil per day over the next two or three years, and eventually --

permian is the only place to go. that will be slowing from 8 million barrels a day that we've been giving out by 2030 to about 7 million. so it's really the slowing down of the oil shale for all the various reasons we discussed over the last several years. >> you were the keynote speaker this morning at the event. you lowered that -- it's not yours, it's all the players, permeating forecasts from 8 million a day to 7 million why? i thought the permian was growing. >> it is it's the only oil shale growth in the u.s it's combination of inflation. we're seeing significant inflation in '22, '23 for the producers. it's combination of consolidation as the publics acquire the private companies. we're slowing the rig count downs. it's a combination of product divining we're developing all zones at the same time, so we're producing less oil per rig so it's combination of all those

factors that's lowering the decline rate to 2030 to seven. >> kelly has a question. >> sure. thank you. we had a guest last hour, i asked him if he would buy energy stocks and he said the reason he wouldn't is because he no longer knows what the sort of right or normal price for a barrel of oil should be. how would you answer that question >> we'd have to put it out on our i.r. presentation, but we showed the predictive capability of the oil futures curve over the last 30 years. and everybody has been wrong and we've gone through about six cycles over the last 30 years. we're moving into a new cycle. my best argument is that there's no extra supply. the next five to seven years demand is going to come back i cannot change the volatility of oil oil is always going to be volatile but we do know that

supply/demand is going to be very, very tight over the next several years. >> so to finish it up, and i want to quote the late great boone pickens. he'd never give you a price forecast but say 100 before 60 kind of give you that range. is 100 more likely than 60 >> i'm a firm believer, 100, 150 is more likely than 60 i think -- >> 150 >> 150 that's where i think we'll have demand destruction around $150 a barrel >> we'll love threat scott sheffield of pioneer natural resource, appreciate your time. >> great to see you. >> a cool day in south florida but it feels kind of good. it's hot in the oil market, maybe in six months, as it is here, if scott's right, maybe $100, $150 in the next seven years. >> great interview thanks for bringing that to us brian sullivan with scott sheffield. still to come, a.i.-generated gains

some bullish on microsoft with a.i. but the stock is lower again today and has had a bad run lately but shares of lamb weston are gaining, jumping 10% that's not small potatoes. the stock hitting an all-time high ithn is market. is there room to run

welcome back to the world of competitive search engine technology where the age-old rivalry between google and bing takes on a whole new face as the two powerhouses fight for dominance in the search engine market, bing has invested in artificial intelligence and chat technology, could this with the chance to threaten google's stronghold that's pretty good >> i think we're toast >> why one firm is bullish on microsoft, even though the shares, they've kind of been toast lately joining us is d.a. davidson's technology strategist. he initiated coverage of microsoft today with a buy rating and a $270 price target what's their strategy with a.i.?

>> well, in the long term, at the very least, there's an opportunity for them to incorporate generative a. sbooismt their bing search engines. so if you think about google's market share, it's about ten times bing's market share and probably most of its market value over a trillion dollars, if bing could get better than google by incorporating a.i. better, there's a chance for a very significant transfer of wealth from google shareholders to microsoft shareholders. >> it strikes me that it's not so much about making bing better, it's that gbt itself could displace google. we've used it a lot already for simple -- not trying to get an answer sometimes to perform a function for instance, google can't tell you we did a scavenger hunt the other day and said make up a clue about how it's hiding behind a bench in the laundry and make it rime google can't do that should microsoft lean into that interface? why worry about bing

>> because we're still -- there are some things search engines in the way they are positioned right now can do better like finding fares for flights, for hotels and things like that. you have to start pointing that generative a.i. at the internet. what we're using is not online it's using old data that it's been trained on. as it gets trained on more and more data, it will get more powerful but when it gets really powerful is when you start pointing it at real online data, and that's when it really starts replacing search the way we use it today >> what can chat-gbt do that google really can't? and how is that going to translate into microsoft being able to scale that enormous hill that -- and moat i guess that google has created >> chat-gpt answers the question

you ask it if you think about what you do with a google search, you put in a question or a search term and it gives you the place where is you may find the answer. that's a longer way of getting to an answer than if you ask chat-gpt a question and get the answer so that's a really big difference and if you think about when we started using google, we switched -- >> but i may not ask the question the right way i may ask a bad question or a question that i think is clearly put but truly isn't. i'm thinking of an example in my life from last night i asked -- i asked something but i didn't know how to express it. >> well, chat-gpt is surprisingly good at understanding what you're trying to ask as well it's not perfect, but, hey, google search isn't perfect either you can put searches in there and get the wrong response or the wrong pages. no technology is perfect

but chat-gpt cuts you to the answer as opposed to making you look for it yourself and that's big advantage. one of the points i'd make is google had moats for sure, but don't forget how easy it was for us to switch to google from other search engines 15 and 20 years ago if, indeed, bing becomes a better way of answering questions, people would switch almost instantly away from google search. it's not a -- google still has a.i. technology of its own, but for the first time there's a chance for this market to be competitive. >> very interesting. i can't wait to see how it plays out. appreciate your time today gil luria, appreciate it coming up, three big moverings in today's "three-stock lunch." see that a.i.? that was simple. i can't even read that >> the humans can write too or maybe they can't -- >> oh, i can't read that writing.

only our producer gino could write as well as this. i'm lost we'll be back.

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all right. let's see if we can get through this one we're going to take a look at some of the movers of the day. walgreens down 6%. the company posted a net loss because of the big opioid settlement that it agreed to delta air lines up 2%. argus upgrading its stuff to a buy. lamb weston up after a beating earnings estimates let's bring in our cnbc contributor victoria let's start with walgreens what do you think? >> they're a buy for me. they're pivoting their company they're really changing from a pharmacy to total health, and then they've also reached out and they're getting into both emergency medicine, urgent care, and primary care so the company is evolving and changing, the stock is

reasonably priced. the earnings weren't bad minus the one-off buys for me it's a buy. i see it growing from just a pharmacy or where you go to buy your cigarettes and your coke. >> it's a buy. let's talk some delta then, victoria what do you do with this stock >> it's pretty wi-fi, right? let's buy it they came out with a partnership with t-mobile. they're the only one who have first-class on all their planes. they get a lot of revenue from add-ons. they're not lease owned for me, we see some slowdown on travel from the asia area. they're less exposed than some of the other major carriers. i really like delta.

if you have a travel play for me, it's delta. >> let's move on to lamb weston, a great stock, but it's too expensive. >> it is average street target, $94 30 times pe. it's just priced to perfection even they admitted to potential slowdowns and the restaurant business may affect it i think it's well executed they've been passing on all of the inflation costs to their consumers, but i think it's too well priced. remember what warren buffett said, buy low, sell high you're selling it not because it's dumpster profit but to take a profit, take a breather. you might look at these signals and say what are the catalysts for the stocks to go up another 90%. there's a high probability it might stumble especially if there's a recession.

>> thank you very much we appreciate it. and up next, control, alt, noncompete a big change could be coming weee s the corporate world the whole way we do things we'll explain. the details are next don't go anywhere. >> announcer: catch the market zone today and every day on "closing bell" sponsored by etrade and morgan stanley. le scs with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

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have a ripple effect across most of the area. there's a ban on so-called noncompete clauses eamon javers has more. >> they could expand career opportunities for about 30 million americans. the rule would make it illegal for a company to enter into a new noncompete agreement with a worker or maintain an existing noncompete, and companies would mostly not be allowed to tell workers they're subject to noncomplete clauses. it applies to all paid an unplayed employees as well as independent contractors. it would require companies to cancel existing noncompete agreements and tell workers they're not in effect anymore. the ftc's rule-making is unlawful, and they told me today it's already contemplating legal action against it. so we're still someways away from this being implemented in

full >> why is the ftc contemplating this action now, number one, and, number two, i may be wrong here, but my sense is that often noncompetes do not hold up well in court. >> yeah. well, the answer to your first question is the ftc is on a borderer sort of what they call antitrust negotiations you're right the legalities of this is interesting. the ftc says they have the authority to do this under the statute that governs the ftc the u.s. chamber of commerce says not so fast, we're getting ready to challenge this in court. the really interesting question to me, tyler, is that all of the ceos of the companies who make up the chamber of commerce stand to benefit from this, right, because noncompete agreements among ceos have skyrocketed in

recent decades all of those ceos would be free to jump ship and be free agents if this goes into effect and you wonder how hard they're going to want the u.s. chamber of commerce to fight this. >> what do you think the case is for fighting and winning this? do you think this economy has somehow changed to the extent that a lot of jobs need to be protected with noncompetes >> when you talk about the debate over this, the u.s. chamber itself acknowledges that there are cases where noncompetes are appropriate and in their view cases where they're not appropriate. they're particularly talking in the noncompete area where you have smaller wage earners where they don't have a lot of sensitive information. maybe engineers, that would be important places to have noncompletes this also applies to nondisclosure agreements what the ftc is saying is if you

have a nondisclosure agreement that's overly broad that could be a noncompete also, so they'd block those two. a whole sweeping change to the way we do work in this country. >> fascinating stuff thank you very much. and thank you very much for watching "power lunch." >> "closing bell" starts right now. the major averages giving back wednesday's gains as investors focus on jobs data and the latest messaging from the fed. this is a make-or-break hour for your money welcome, everyone, to "closing bell." i'm sara eisen the low on the day was down 457. we're still three-quarters of a percentage point decline the s&p 500 is down almost a full percent the nasdaq is down a full percent as we see tech getting hit today. yields are a little hi