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 higher that could be part of the story.

3.7% better. adt private sector jobs. better data on job else claims and fed commentary in the mix. the chinese internet again continuing their strong run. coming up on the show, we've got wi-fi in the skies delta announced they'll have internet in the air. plus, we'll talk to a chart expert who has any idea of investing in other countries microsoft and apple have been under a lot of pressure lately let's get to mike santoli. he joins us. mike, with every sector now red except for energy. >> yeah, sara. the market continues to churn. there's a very strong perception coming into the year that the s&p 500 is capped, capped by the perception that the fed really wants to be aggressive at engineering a slowdown and kind of supportive by defensive

positioning as well as the fact that the consumer economy remains okay, credit markets relatively firm. therefore, we have a sideways action this goes all the way back to the middle of december not only that, the intraday low of all things is 3810. it's been choppy in a range as opposed to steadily downward we did have comment today. the market bounced around on the fed comment. a macro-oriented backdrop. take a look at this. when correlation tends to be high, it tends to be more of a macro-driven market. there it is. above this long-term average, it is more macro-driven this starts to kick up in the qe era, global financial crisis, fiscal policy, policy moves

tighten. types of stocks, categories of stocks, lots of divergence, but it wasn't individual name by name, whereas, in the '90s it was much more so people own indexes now and people trade the market as one big basket but it shows you right now we are in this mode of paying a lot of attention, sara, to fed and policy moves. >> this afternoon we heard from james bullard who seems to have changed his tune again he was one of the more hawkish ones last year saying we need to be more restring active, more restring active, more restring active now he's close to saying we're restring active enough and this could be a deflationary year. >> exactly if we get to 5% or so in the fed funds, what everyone expect. it will look relative to levels of inflation and obviously where the other kind of models would tell you policy could be he's willing to straighttown crowd rhetorically, we know that about him. this is a reminder there is a

way the fed can proceed from here and be in a wait and see-mode as opposed to inflation willing to crash. >> mike, thank you for more on the markets and the strategy, julia emmanuel joins us from evercore isi as good as inflation keeps coming down, but the jobs market remains strong we got three different points of evidence today the challenges were lower than expected it shows that the jobs market is still tight. >> good economic news is bad economic news for the stockmarket, and that's the paradigm we're in. the fed has been trying to get to 4.4% by the end of 2023, to slow things down, rationalize the labor situation. but the point of that is that

kind of jump in ton employment rate if we get there, has always catalyzed a recession. >> so you have 4150 year end price target that would be a pretty -- that would be a rally that's on the higher end i mean a lot of strategists are not feeling optimistic this year why do you think we can do that? >> for us, it's basically a question of an expectation of a shallow shortish recession to arrive around midyear, and, frankly, when you think about it from a risk/reward perspective in terms of investing, this kind of activity, and, again, no bear market has ever bothered before the recession started, so from that perspective, we don't think october was the bottom, but you get that kind of activity in the markets, the catharsis, volatility spike that clears the way for, in fact, the type of year that we expect where earnings are going to be down, but the market's up. and the thing is that that is

atypical it's actually very typical that's what we expect. >> well, if the fed then moves into loser policy in reaction to recession, which we might not get this time. >> well, so, i think part of what bullard left unsaid was, yes, there are only two to three hikes left, and that's something that the market will likely start looking toward to pause, but we still think that that kink in the curve, the expectation that rates are going to be cut, is likely an incorrect expectation particularly if you get a situation where the recession is short and shallow. but the good news here is that stocks can still do well even if we get that growth slowdown as long as inflation is coming in and we think inflation comes in at 3% this year. >> what types of stocks? >> so for us, we want to continue along the value line. we think basically value

overgrowth has worked for the last year. that's a multi-year trend. we want to stay -- >> that can work in recession? because a lot of those value stocks are also cyclical. >> interestingly, consumer staples, which is one of our overweights, health care is another one, and, frankly, energy, which you might not think works well in a recession, but the fact is the sector is already pricing in a recession at around ten times earnings that the rest of the market is not and is 5% of theweight with 9% of the earnings. >> what if we keep getting really healthy jobs data like we got today, like we're anticipating tomorrow because if that happens, then do you have to revise your forecast for not so shallow recession if the fed just has to keep going >> so that's been very interesting in these first couple of days of the new year the conversations are very nervous, and part of that strain is basically this idea that the

worst thing for the markets could be that there isn't a recession, which forces the fed to keep going, particularly if inflation remains sticky look we have sympathy with that view because it certainly would mean sort of a repeat of 2022 we just don't think that's going to happen because we do see signs of inflation starting to come in, and we think that's going to continue. >> can that continue if wage growth does not moderate >> no, but you actually are starting to see anecdotal signs of wage growth moderate. and, look. you think about the layoff announcements. you think about the competition for labor in a place like tech that's starting to moderate. to us, again, it's like everything else. it's a matter of time. >> got it. bottom line, bumpy first half, make new lows on recession, year end's higher because it will be mild, and then we come out the other side. >> exactly. >> got it. julian emanuel, thank you.

a lot of twists and turns. by the way, leon cooperman's take on this market weakness later on he'll be on "closing bell" "overtime. after the break, dell's divorce from china the pc giant aiming to phase out its use of chips made by china by the end of next year. we're going to discuss next. you're watching "closing bell" on cnbc.

if your company actually practices the values that it posts about, then, yeah... you're on team earth.

just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class

or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. delta shares in the green.

this comes as the company says it will be the first u.s. arlt to offer free in-flight wi-fi for passengers they'll be able to join the frequent flyer program to take advantage. joining us now, delta ceo ed bastian and, of course, our own phil lebeau. >> thank you very much ed, to start with the news right off the top. free wi-fi starting this year chlg by the end of next year, you'll have most of your planes equipped what's the idea. >> the main idea is to improve the passenger experience when you think about what we do for a living, we connect people, we connect the world however, it's always dawned on us the part of the world that's not connected is the sky the quality of wi-fi in the sky is not good. there's a lot of reasons why delta has been investeding in

over a billion dollars in the last three years alone to create this opportunity it will be free wi-fi. it will be free, it will be fast, it will be available to all. yes, you'll have to have a skymiles account, which is free as well, and it will be a game-changer 80% by the first of february every week we'll have international rolled out, regionals by next year 100% by the end of 2024 across every delta flight, every seat in the sky. >> i mentioned this to a few people they said, look, these people are in the business of making money on an ancillary revenue. is this going to hurt them if people are not going to have to pay for wi-fi. you're of the belief this essentially opens up so many more opportunities, correct? >> it creates loyalty. it will be one more reason why customers will choose delta as they look to fly in addition to that we're going to have a new product which we also announced this morning

called delta sync. we've got paramount plus and t-mobile passengers will have packages. i've always believed that wi-fi has to be free it was basic to a customer, but it has to work and, by the way, it also has to work sitting on a reliable foundation, a quality service and on-time delivery and a product that people do better than anyone. >> sara's got a question for you. >> hi, ed. sara here in new york. just curious for a flavor of what's happening with demand we know leisure has been super strong is that still the case, and have you seen any softening in business >> well, sara, we are in a bit of a quiet period because we have our earnings we're announcing next week, so i can't give you too much other than to tell you as you saw during the holidays, demand was very, very

strong no signs of any letdown. >> what about labor shortages? has that been dealt with we saw the problems with southwest after the storms, getting people around, supply issues, computer issues. i'm curious what you're dealing with on that front. >> well, with delta, we've got the staff. we're continuing to hire we're hiring flight attendants, we're hiring pilots, mechanics for growth coming into 2023. but the team of delta did a really good job during the holiday period i was very proud of them it was a very difficult set of conditions they were operating in, and they got customers where they needed to go. >> ed, china is such a big part of your business obviously things have changed over the last three or four years, but now you have the chinese government opening up. what do you expect in a broad sense happens over the next year when it comes to demand in traffic to and from china? >> i think you're going to see what happens in china as you've seen with every country as

countries open up. you're going to see an enormous demand of people leaving the country as well as trying to get into the country china is complicated they've had a little different policy toward protecting covid we'll have to see how it rolls out over the next three to six months but we're expecting certainly in the back half of 2023, some strong chinese demand. >> as you mentioned, while why fry is free here domestically, internationally, it will roll out over time. >> it starts february 1st. 80% of our domestic main line fleet will have it every week there will be more and more international will start in 2024 it will be 100% across every fleet we have, category we have by the end of next year. >> ed bastian, how do you like this year's vegas show >> it's crowded. i love it.

>> a love/hate relationship with the consumer guys. back to you. >> there's a lot of innovation in that success tore phil, ed bastian, good to see you both let's look at the market down 300 or so on the dow. a broad selloff. the s&p 500 is lower by almost a full percent energy is the stand jouout. you have utilities microsoft, amazon, apple, nvidia, and tesla weighing down. i it's beea ugseorn roh ct for computer chips we'll name names next. ♪

a cyber-attack can grind everything to a halt. cisco security keeps your company moving forward. because if it's connected, it's protected. cisco.

interesting move dell joining a list of companies attempting to reduce their reliance on china for chip production dell plans to stop using chips

from china by 2024 joining us is stacy rascom from bernstein. first of all, is it possible to reduce chip usage by china fully by 2024 at this point? >> it's probably possible. it could be memory or other types of chips, and there are other sources of those it's not just chips either it's not new like lots of folks in the electronic supply chain have been diversifying supply chance since the tariffs and trade stuff a few years ago, but given what's going on in terms of some of the sanctions and everything else getting placed on china, there seems to be sort of a broad-based decoupling that's happening, and they're going down that path >> i feel like it's kind of the new zero emissions target.

we're going to be out of china by x year on production. what does it mean for the u.s. chipmakers who stands to benefit most >> it depends on what they're making like, for example, on the memory sigh, you've got folks like samsung and hynix that have memory in china. they have equipment, but who knows how long it's going to last they're probably going to be moving production out of there anyway the u.s. guys, intel and lmb, that's not going to change i don't know like how much of a shift this is in terms of winners and losers it's probably more on memory and other things they're probably already buying most of that stuff from non-chinese suppliers anyway who happen to make the stuff in china. so it will just move. >> semi-conductors as you know

have been volatile and cyclical. what stands out as a buy to you amid some of the rubble from last year? >> you bet you go a year ago, sentiment was pretty positive of the space i think 2022 from a growth standpoint overall, it's going to be a decent year for semis, but certainly for the stocks, it hasn't been that good. stocks are anticipatory. one positive is investors are widely expecting 2023 to be a downturn year. this is more now on magnitude and timing and degree and duration what i would be favoring at this point are companies that have already cut ideally substantially where there is a good secular story that could play off of that once investors get confident that numbers have been appropriately resetting nvidia, qualcomm, amd, they

might fit in those are all names and numbers that have come down substantially or there's a good story that exists once invests get comfortable, the numbers will bottom. >> what about intel? numbers have come down sub substantially there. are you interested >> they also have their own structural problems. we're just getting started on that journey they've already been out in public the last couple of weeks like walking down q1 there's a massive inventory in q1 i don't think they're helping. i think they've been stopping the chattel. the economics like their margins and everything in their key businesses have collapsed. capital intensity is going through the roof and an md, i'm a little nervous. on data center, i think amd is

going to steamroll them this year. >> wow so that's a no thank-you on that one. what about the china story and the dec coupling as you say. who has the most to lose as this relationship breaks if it does further. >> you have to be a little careful. all companies will report high levels of revenue. those supply chains are already starting to move it's going to be very difficult for the rest f the supply chain to completely move out it's going to take time. from a -- an exposure standpoint around the sanctions, the sanctions are very targeted. they actually leave all of the consumer stuff and everything open still they're very targeted at high end intelligence, super computers and advanced logic and advanced semi-cap tools. that's it. the ones mostly impacted is nvidia, although, they've found

alternatives and the semikun d conductors stacy rasgon from bernstein, thank you. the company is in talks to sell shares in a tender offer that would value the company at $29 billion. the company was valued at 14 billion recently it's blown up recently. wall street is talking about a make-or-break moment for a number of struggling retailers we're going to discuss the challenges of bed bath and beyond, stitch fix, and other household names when we come back the dow continuing to go down at 1%

>> announcer: the bond report brought to you by pimco. a global leader in asset fixed income

what is wall street buzzing about? a reckoning for some of these embattled retailers. look at bed bath and beyond. the company warning it's running out of cash and is considering bankruptcy liquidity issues had me suppliers not willing to send inventory, leaving some stores with empty shelves it is down 95% from its peak in

january of that year separately stitch fix announcing it's cutting 20% of its work force and ceo elizabeth spaulding is departing she took the role back in 2021 founder katrina lake is coming back, like disney as well. meantime analysts are coming down victoria's secret ceo would be leaving in march c at gap, there's still no leader. bottom line, this is bear market we're in a downturn. interest ratesare rising the meme trade is evaporating, and many of the companies that have been struggling in retailing have to face the music. when we come back, we'll

take a look at the market. we're down a percent, at least that everything in the s&p 500 is lower except for energy. the dow continuing to lose ground here. we're down more than 350 the low of the day was down more than 450 up next, chris verrone from strategas. tomorrow don't miss an exclusive interview with bill miller and his son, bill miller iv for their stockmarket outlook and picks. that's tomorrow right here on "closing bell. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities.

while an earnings tool helps you plan your trades and stay on top of the market.

municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376.

we'll send you our exclusive bond guide free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years and offers high-quality municipal bonds from across the country. they provide the potential for regular income, are federally tax-free, and have historically low risk. call today to request your free bond guide. 1-800-376-4376 that's 1-800-376-4376.

we're watching the nasdaq. down over 1% it's been severe for the past few months one example of how severe. last summer, the big five counted for 25% of the s&p 500 today just over 18%. our next guest says those tech stocks are still too big chris verrone, a partner at strategas joins us at post 9 why are they still too ig? what percent should they make up in the market? >> microsoft and apple, those are still too large. you would never have names that big after declines this big. on 12/31/19, precovid, apple was a 40% stock. microsoft was a $170 stock, a

30% stock. >> their business grew a lot during covid. >> so did meta, alphabet i think getting through this bear market means teen best name, the names reviewed as untouchable ultimately go back to where they were precovid. >> you're looking at pure levels. >> let's look at it this way it's an important question i think the last eight weeks in particular were so revealing these growth stocks got everything they craved last year rates peaked three months ago. it should have been the perfect environment for growth to resurface. >> it hasn't happened. >> it hasn't happened. what's the worst performing index since rates peaked qqqs. >> why >> i think it's reflective that these names, what this part of the market is going through is structural think back to the 2000, 2001, 2002 period. that was the first part of the bear market. those stocks went down on the way up in the next bull

market, the big tech stom stocks went up less i think it's a two-phased event. i think even when they bottom, i don't think we go back to them as the leadership moving forward. >> doesn't that depend on fundamentals to a large extent these are businesses that are in growth mode and have been able to weather some of the issues? >> i think the market is the best procurer. surely the market must know this when the macro regime has shifted in the latest eight go 12 weeks is an important piece of information think f it this way. since the s&p bottomed in october, gold has gone up more you haven't made real money in equities remember, gold last year was flat in a year the dollar was up big and real rates were up big gold is serving its purpose here, i think, as a hedge to what is a very, very fluid

macroenvironment. >> some people look at it like apple and say that's a bullish thing from the biggest resilient stocks in the market soon it's time to buy. >> i'm skeptical i think there's no more compelling chart we showed this morning. looking at microsoft relative to s&p, we're early in this process of changing leadership i think you live with it, right? the five largest at one point were 25% of the s&p. they're currently 18 that's still really, really large. now, think about what are the geographic implications of this? u.s. market cap as a percent of global market cap is also still historically really elevated so i think what we're seeing between ecb being more aggressive, the shift in japan, you're getting capital called home to other parts of the world. i suspect that's another reason, fundamental reason why the big tech weights remain under pressure here. foreign investors are selling and bringing money home. >> what about into other parts of the u.s. market energy has expanded its role

absolutely within the overall market is. that a place you would look to >> energy is one of the few sectors that's doubled its energy weighting in two years. it's at a 5% weighting. >> it's still tiny. >> it's still remarkably small i think the sector that's benefitted from the move is probably health care, it's i intellectually better. i think it's one of the areas. the s&p ties to it we're seeing leadership there. i would suspect that would continue be a little careful within health care. there are some pockets that i think are weakening. the hmos in particular we've been very vocal about a bearish call on unh and cigna and ma melina they've gotten too big be careful. >> what do you like?

>> i like pharma and biotech look at merck. it's a 20-year base. hasn't worked in decades it's starting to break out that's where money can be made gilead is another one. >> so the ones coming from behind. >> oh, yeah. >> chris, thank you. very interesting chris verrone on the charts from strategas. look at walgreens, the worst performer because soaring costs are making investors feel sick big story. and big layoffs from amazon and fallout spreads when we take you inside the "market zone" next wherever they are... you need more than technology. you need cdw, who gets to know your business and can design and deploy custom solutions, with pre-configured hp notebooks with hp wolf security. ai-enabled threat detection and remote management protect your endpoints 24/7, giving your defenses some real teeth. bummer. hp makes always-on remote security possible. cdw makes it powerful.

good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting?

how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market 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 we are now at the "closing

bell" "market zone." mike santoli here to make brake down the crucial moments of the trading day as always. plus deirdre bosa on amazon and bertha coombs on walgreens dow down 1% on the s&p 500 everyone is weaker what stands out is energy, up 2%, mike everyone else not having a good day including technology chris verrone, not doing much to help sentiment around microsoft and apple, which he says is just a sign in the process that they're starting to correct from their size and dominance, and he sees a very different market from the other side. >> yeah. i mean, usually one of these episodes when we have a bear market that does proceed into a phase where you don't want to have havens that people are comfortable hiding out in, usually it doesn't work that way. if you look at the nasdaq's valuation of 1%, it's down a lot. it's down from 30 or so a year ago to 20 times earnings,

however, it's still at about an average premium to the s&p 500 in other words, it's not gotten much cheaper versus the typical stock. that's something that continues to have a little bit of wear and tear on those stocks, on those valuations for a while. >> i think the big news today, mike, is on jobs, right? adp, the private sector reports while it's not necessarily correlated to the jobs report, surprising strength, initial jobless claims, lower than exp expected, i think a multi-week low in americans applying for unemployment and the layoffs came in a little better we'll get more evidence tomorrow with the jobs report, but this tight labor market despite all the layoffs, salesforce, amazon this week, despite the fact that the fed is trying to crush inflation and with that put some pain into the labor market, it's amazing to see, and it also gives them quite a predicament. >> it does you know, the softening labor market conditions not happening in a timely way for investors'

preference at least. the fed needs wage growth to come down. that can happen perhaps without a big jump in unemployment it can hasp, perhaps, while you still have jobs being created because of structural shortage of labor, but the bluntest instrument is probably to stay tight enough that you start to see available of jobs go down. this's what the market recognizes we might look back and say, well, it was a holiday week. were unemployment claims really that low we might say the adp can be fluky. we'll see what the numbers give us tomorrow both on the headline and the wage number. to me it mostly tells you -- the market's indecisive, but it's very, very wary of any signs of continued economic strength of the labor market because it realizes the fed -- it feels like it can't afford to allow that to persist. >> the 2-year yield weighing in on the market. let's talk tech. i mentioned amazon planning to cut more than 18,000 jobs, far

more than initially expected one of the tech companies undergoing layoffs it also includes salesforce and meta yesterday we asked how much the job cuts will ultimately impact the economy. >> despite the surge in tech layoffs, it's now translating into layoffs economy-wide. there are those losing jobs and creating jobs. so far so good it's not translating into any significant impact on the broader economy. >> the caveat, though, is zandi expects it to carry over deirdre bosa is with us. where do you hear these workers are going? >> well, what i'm hearing anecdotally is that the tech workers laid off at meta, amazon, the many, many companies

that have announced layoffs in the last few months are finding jobs very, very quickly. yes, it does feel at odds with what you were just talking about with mike santoli, the private labor day ta even though it feels like every day we're getting more news out of silicon valley. the thing is they're finding jobs more quickly because there's still a pretty strong startup ecosystem here yes, for the names we know like instacart, some of the biggest unicorns that have raised a lot of money at higher valuations in recent years, they're the ones looking to layoffs and ways to cut koufts, but we got headlines saying open ai, the parent company is in talks for a tender offer that would value it at a much higher valuation. so there is an opportunity for some start jumps, especially artificial intelligence torsion continue hiring. they have it pretty good right now. typically they've had to compete with the googles and metas to

get the engineers. it raises the question like do some of the companies like amazon, meta, alphabet door they have to lay off more because they built too much and highed too much over the pandemic >> that seems to be a big part of it, mike. when you think about the overcapacity and year hiring and expansion during the pandemic, everything going online, it's a little distorted as we try to figure out how strong the labor market and economy is. >> it is they find themselves having staffed up too much. that's not really the case for the typical company out there. even before this little slowdown in the economy that we've had so far, the average business was saying, finding enough people was still the biggest problem. so that's why i think it can also stay for now localized or if you want to be pessimistic, say that's why it's going to

take a deeper slowdown in the economy to get the response from the labor market that policy makers want to see. >> thank you very much we've got breaking news on the house speaker vote elon y ylan mui. kevin mccarthy has lot another bid. the record is 133 times over two months all the way back in the 1850s. we'll see how long this round goes because mccarthy still does not have a path forward to winning. so as of now, mccarthy slated to lose his ninth consecutived by for speak over the house sayre ya. >> really quickly, ylan, the reporting is he's giving concessions, they're trying to

negotiate. any idea what these concessions are which i think matter to investors as we figure out what the implications of all of this is going to be. >> sure. many of them are procedural, including a move that would allow any single member that would force a vote to oust him down the road, also a suggestion to what the committees, some of the hardliners would be able to sit on this could be important especially as we look at government funding bills they're very adamant that another $1.7 trillion spending bill would not pass under their watch. those are some of the negotiations happening both on the floor and in the back rooms. but some members say it's not going to be kevin mccarthy no matter what. >> keep us posted as i know you'll do. ylan mui on capitol hill. shares of silvergate capital tanking after it saw over a

billion dollars o withdrawals. it's laying off 40% of its staff. coinbase, robinhood and block all selling off too. coinbase also selling off. and in just this afternoon we got news that crypto lender genesis is also laying off staff, 30% of its staff as it faces possible bankruptcy. kate rooney joins us what does this say about the broader crypto market? more turmoil. >> absolutely, sara. it's more collateral damage from ftx and overall pain in this sector so genesis, as you mentioned, the latest headline with some of those layoffs. that really stems from some of the risky lending that's dried up for the most part we also had some subpoenas served to head fund founders sued by the new york attorney general. a lot of negative headlines and

headwinds. for silvergate specifically. so this bank is highly, highly leveraged to other crypto companies. it really transformed to being the only option at one point for crypto changes 90% of the deposits are coming from crypto. the $8 billion reported earlier when it came to the withdrawals speaks to the money and flood of money and some of the negative sentiment around the sector. it can be seen as a proxy if people are moving their money off of the exchanges that's where it's coming from. the ceo said they've got more cash than deposits on their balance sheet. they say they're bullish long term also a quite highly shorted name 50% of the float is actually shortage risk. the average stock in the s&p is about 5% you can see the short interest is skyrocketing recently in the past month or so so this data from s 3 partners

telling us tort that was the second most shorted name out there. big payday stocks down 5% in the last 12 months. walgreens is tig best loser after walgreens reported a besser than expected profits sales. it did post a nearly $4 billion net loss because of higher costs including minimum wage hikes bertha coombs joins us what is walgreens doing to get this under control >> they're trying. part of that net loss was due to a 6 president 5% loss due to the opioid crisis. they've been able to boost pharmacy staffing, return more stores to regular hours, and that results in a boost in prescription volumes and they think will help them gain back share. another investment that's paying off is using off-duty police officers for security, which has helped reduce shrinkage or theft to the point where they might

pulling back on some of the locks shelves we've seen in places like new york and san francisco which will entice hopefully more shoppers. and in the health unit, that's where the revenues were light. they continue to spend a lot of acquisitions including $3 $3.5 billion. sara, this is really still a show-me story in the health story and there's a lot of investment they've got do. >> i was going to ask how walgreens has been performing since the new one took the reins? >> they have been performing pretty well, but they've underagain this transformation where they're trying to go much more heavily into health that's where they spent a lot in terms of a big investment. they think that's going to pay off with their primary care

strategy and having that in stores, but it's really something they've got to build right now with that merger, they've got to take out a lot in synergies and try to cut costs. >> bertha, thank you bertha coombs w with walgreens weighing in, we've got the dow down mike, what are you seeing in the market internals we've moved south all hour long. >> they're kind of soft. i wouldn't say heavily skewed to the downside a little bit noisy sloshing around the same range i keep pointing out. 3800 on the s&p has been the floor thereabouts for three to four weeks see slightly more declining versus advancing the markets have continued to hold together. if you look at the investment grade bond etf relative to comparable treasury etf over six months, it's performing better, which means the credit spreads have come in a little bit.

that sort of refreshes the market so it's maybe hitting spreads, but it shows you the capital markets are open, companies willing to lock in the rates the volatility index is perking up obviously you've got the jobs number tomorrow. therefore, it's going to put a little bit of a lift on that still knocking around the low 20s area that matches right up with the range-bound train we've seen with the s&p itself, sara. >> optimism is restricted to more limited sectors lately. you're seeing it in places like energy with oil prices higher, energy stocks high eric some of the chinese energy stocks are higher las vegas sands is high, highest since july 2021. take a look at the dow down 457 points. but the high on the day was down 78 so we're more toward the low end than the high end. chevron and others are

outperforming. if you look at the s&p 500, it's down more than 1% and so is the nasdaq it's almost down 1.5%. big heavy losses for microsoft, amazon, apple, nvidia, alphabet, tesla in the selloff today as well you have the chinese names and media names which continue to have a good start. that's it for me on "closing bell." see you later for "fast money. now into "overtime" with scott wapner thank you very much. i'm scott wapner in just a little bit, cantor's eric johnston is back with us. is he still super negative on where your money is heading? you know we'll ask him we begin with our talk of the tape the view of the markets from wall street, legend leon cooperman. he's the chairman of the