that does it for "the exchange" today, everybody thanks for your time power lunch begins right now >> welcome, everybody, to power lunch. kelly will rejoin us in just a second here's what's ahead. welcome back to the boss bob iger returned to disney. vince mcmahon is going back to wwe. katrina lake coming back to stitch fix could we see more old places return to their old places as ceo? energy a big winner in 2022. the sector gaining what can energy do for an encore should you look for opportunity, kelly, elsewhere. >> tyler, thanks the markets are seeing a nice jump, but kind of for all the wrong reasons. dow is up by 87, 100 points off the highs. all of this coming after weaker

wage growth in the jobs report, very disappointing report and a deeply inverted yield curve. let's get to bob pisani for more at the new york stock exchange bob? >> the important thing is, we're right at the highs for the day 2%, right across the board dow, s&p, nasdaq and what's happening here today is the soft landing crowd is kind of back. the people who think we can have still moderating jobs, still strong, but moderating and wages still okay, up but also moderating wage inflation that is that's the soft landing crowd. and you see that in the growth stuff. remember, it's been a rough week for some of these big technology stocks that are out there. some of the big names today, all moving to the upside alphabet has been down this week, generally, microsoft is down 6%. even with a nice bounce today. amazon was a 52-week low but it too is bouncing.

we're seeing a nice bounce in semiconductor stocks it's been a rough week for big names. nvidia has been choppy this week elsewhere, you want to look at global growth stuff. and that's materials -- materials is a good way to look at that. that's a good risk-on play and all the big material names, free port, mosaic, all are having very, very big days. small groups of stocks are hitting new highs. it's been a great week for caterpillar, that's a consistent new high recently and merck has been hitting a new high. retailers generally not doing that well, the classic discounter, tjx and ross stores hitting 52-week highs. we're up 0.6% this week. pretty good considering how choppy and difficult it's been so we're breaking out of this range we've been in the last

three weeks or so, 3800 to -- 3860, excuse me. right at the highs for the day not a bad start to the year considering how choppy and difficult it was earlier in the week. >> thank you what's lurking around the corner for clues about that let's go to the bond market. rick santelli. >> yes, historic day in the treasury complex look at this chart three-month versus ten-year spread it closed the end of the year at minus 37 it came in on tuesday with a high of minus 46 and it's now trading at minus 105 minus 105! now in cnbc, we go back to 1989 on this spread and you can see there is nothing in the neighborhood of minus 105. a little history lesson here, the 26-month bill changed in how they auctioned it in 1982.

it went from price to yield. so i was able to go back from the difference between 89 and 82 i don't see any yields or any inversions that are close to this and if we look at what's going on, the catalyst to all of this was two-fold first of all, if you look at the early morning data when we saw the average hourly earnings month over month, only up 0.3 of 1% and last time we were up 0.6, revised down to 0.4, that was part "a. the ism number, 49.6 of service, most important aspect, everybody at the fed is looking at, well, it dipped under 50, 49.6 which is the lowest since may of 2020 which i pointed out. if you take covid out, it is the lowest level since the end of 2009 and that's what traders are really talking about if you look at ten year in general, we closed last week at

388 the last trading day of the year we're down over 30 basis points so now we're over 1% below three-month t-bill rates and the dollar index which is off to a great start for '23, well, it gave up a lot of ground as these interest rates tanked. back to you, tyler. >> thank you very much. and we move on more and more in today's corporate world, investors find themselves asking a new question over and over, who is the boss tough times call for tough call and is maybe sometimes for old, not necessarily new faces. vince mcmahon returning to the ring electing himself executive chairman of the board months of retiring in order to deal with the aftermath of a scandal and pursuing a sale of the company the ceo of stitch fix stepping down, announcing job cuts of up to 20% of its salaried workforce. the company is turning back to its founder to fill the role effective immediately.

and we know all too well about bob iger bold return back to disney less than a year from completely stepping away from that company rumors circulating around amazon and founder jeff bezos potentially returning as that stock has struggled. here to discuss this growing trend, if we can call it that in corporate america, susie welsh, a professor at the university of pennsylvania's wharton school of business as well as a cnbc contributor. welcome to both of you let me begin by asking you what does the history tell us about the success of old ceos who come back as new ceos does it usually work or not? >> well, there are spectacular cases of success and we all know what they are, there's steve jobs, howard schultz, a few other cases where everybody points to them, but, actually,

in 2020, the management review published very good research and they looked at 167 cases of boomerang ceos and the numbers would show you that it doesn't really work all that well. in the vast majority of the cases, the stocks underperform when ceos come back. so there are these spectacular cases and there are cases where ceos really want to protect their legacy and they go back and that's the impetus or the board calls them back for that reason if you just look at the sheer research, it's not as good a picture. in fact, it's a negative picture. >> does your research, do your views agree with what susie just cited. there may be three or four that don't work out >> i think that's correct, tyler. what we see is, we see a self-selection sort of approach that where we spent a lot of time focusing on the success cases and we don't really here a

lot about those failures that susie is talking about i would also say that what we're seeing is very much this idea of a new sort of world where generational cohorts are demanding that ceos sort of build their own brands and come out and talk about purpose and what they stand for. so a big part of this process, tyler, is really having these ceos step back in to these roles because they have a brand, a strong brand to be able to give investor confidence and to be able really help push that comeback story whether or not that comeback story is going to be successful will depend on a lot of different factors like susie is saying. >> it's interesting in the case of wwe to look at the stop pop vince mcmahon signaled, look, i want to be a decisionmaker at a time of what could be a lot of flux for media and streaming there's reports about our parent company being involved for this asset and the entire space feels

ride open right now. so i don't know if that's a different situation where he feels as though he is uniquely the person to steer that, you know, epoch. >> this is the founder syndrome. i think howard schultz felt uniquely that way. their legacy is all wrapped up in this. they have the dna of the company in their bones and they're the only ones who can answer all the questions that need to be answered it does beg the question about whether or not these companies are bigger than their ceos if you buy into this that only this person can come back and save us at this critical time, you know, the way steve jobs did, maybe steve jobs was the only person who could do what he did and maybe vince is the only person who can do what is needed right now, but i think in the -- i remember there was a period where people were asking whether or not jack, my late husband would go back to ge. he was asked this question at a

function we were at and jack said, look, ge is so much bigger than me. it was bigger than the ceo and there's great people there that was his argument for just trying to put that to sleep right away but there is this -- there is this notion that you are the brand, you are the company and i'm -- you know, whether that's healthy, that's a question for the board to work on. >> as you often do, you have the encourage to ask yourself the question that i was about to ask you, because your husband, your late husband certainly would have been in a conversation should he return to ge during its era there where it was not doing so well. let me turn back to you and ask the question, do these situations where the hold person comes back, do they work better when that old person coming back is the founder can we extrapolate >> that's a great question, tyler. the fact that the founder steps back in so you can take an

example of sticks -- stick fix, the founder created this she has a brand, a powerful brand. she started the company in 2011 while she was doing her harvard mba, i believe she has the kind of understanding of how this thing started and has that understanding of the dna that's potentially important with respect to bringing back success when things begin to plateau even though it's a bit of a difficult stance here,because she's stepping into the notion of cutting 20% of the jobs and shut down a distribution center in salt lake city, she's the one to do that because it is her company. she can do -- make these kinds of difficult decisions because she is an authentic founder. and so stepping in, even though her tenure will only be six months is my understanding, it's a way to kind of reassure that this authentic individual who is the founder will always want to do what's in the best interest of the company. >> that's very well said

let me pivot while you're both here and ask about this new issue, if we want to call it that, the ftc trying to bar companies for allowing noncompetes. we had the ftc chairwoman about this proposal on "squawk box." here's what she said. >> when you're talking about executives and engineers and tech workers, for example, or those in finance, what we've seen is that these types of restrictions are basically depriving the market of new ideas and innovation because people are locked in, they can't go start a competing business. >> i am curious, you know, susie, i see you shaking your head what do you think about this >> it's funny. i wear two hats here when i'm teaching my students, i'm advocating for them, they're going to get jobs and then i'm also on boards and this makes it so -- i can't help it. i kind of hate this role because i'm thinking about it through my

employer's eyes. the balance of power that has shifted from the power to the employee we're going through a change in the american economy and maybe that's a good thing. maybe it's long overdue. maybe the balance was out of whack. it's hard to be an employer right now. it's hard to hold on to employees and this is -- the noncompetes go, it makes it so much harder. if you have people, great people, you pour a lot into them, invest in them and they can walk out the door and take everything you put into them and start their own company and you're not able to protect yourself at all, can we make it any harder to be an employer i get it, because i have kids in the workforce andi have students going into the workforce and i understand that they deserve to have some kind of leverage and they are getting more and more leverage, maybe that's a great thing as an employer, just to be honest, hate this very much. >> thank you very much we have news we need to get to provocative conversation. >> we have breaking news on

biogen the stock is halted. what did they decide >> yeah, kelly, the fda approving the second new alzheimer's drug in two years. the brand name for this drug is called -- we'll expect to wait and see when it opens. the stock could go above 300 we'll see if that indeed happens. in the approval, billy dunn who is the director of the office of neuroscience at the nfda saying this treatment option is the latest therapy to target and affect the underlying decide process of also instead of only treating the symptoms of the disease. we know this has been a controversial class. the first drug was priced high it ended up being a commercial flop this one has more clear data we're going to wait to hear where they're going to price this that will be the next big question and then, of course, after that,

whether the centers for medicare and medicaid services because they declined to pay for the first one, and that was for the entire class of alzheimer's drugs, guys. back over to you. >> a huge decision, hugely impactful. this is only part of that story. thank you. when biogen reopens for trading, we will let everyone know. >> stocks rising today in hopes that inflation may be peaking. energy outperformed the broader markets last year. it rallied 60% what can it do for an encore we'll find out >> announcer: the bond report is brought to you by pimco. a global leader in active fixed income

welcome back to power lunch. markets rocketing higher today after the jobs report. right now, while you see the dow is up 645 points, that's about 2% let's bring in steve liesman now. markets, steve, seeing signs of inflation slowing in this report and some of the wage gains paring back a little bit >> tyler, while the market rally seems key to the economic data and signs of slowing inflation and the economy, really the fed officials clung essentially to their really hawkish takes on the outlook for rates.

the two-year yield falling the first step was the jobs report, came in a little bit lower in expectations and the second step was that ism service. i'll take these one by one you have the 323,000 jobs report that came in, 223,000, sorry about that, and then what you have is 28,000 revisions downward 3.5%, average hourly earnings falling -- rising 0.3% but they had revised down the prior month and also this number which is kind of modest. participation rate rising by 0.2. more people in the workforce that takes pressure off of wages. services, was a huge miss. falling to 49. well below the 55 expected it's now suggesting contraction in that sector hard for me to believe, but it

is the market thought it all meant less fed, but the fed president in an exclusive interview after the numbers said he's still full steam ahead on hiking rates above 5%. >> what i think is the most important, actually, is just to hold there and stay there and let that policy stance really grip the economy and just make sure that the momentum is fully arrested so that we get to a place where demand and supply start to come more into balance. >> in fact, multiple fed officials today acknowledged some progress on inflation but gave very little on the rate outlook. markets are giving a standing ovation to the data today. the fed sounding decidedly unimpressed. kelly? >> i want to ask a quick question, if i might, steve. unemployment is at historically low levels, right? number one job growth throughout the course of 2022, the second best in

total numbers ever, why do people think the economy is not doing very well? [ laughter ] >> well, i mean in the first instance, tyler, what i learned this year -- you know i've been doing national polls for probably 15 years now, maybe longer than that, 17, is that inflation trumped everything people's views on the economy were decidedly colored by inflation and you're right, more americans have jobs now in terms of the percentage who want them than in decades. and there is a group of people who think these high rates are going to create a recession, not necessarily have one now but that is, of course, in the future right now we're looking, tyler, i want to say at gdp that could be in the 3% range for the fourth quarter, the economy accelerated gdp-wise in the fourth quarter there's an expectation it's going to slow down amid these high rates right now, it does appear as if

the economy is moving along, although with high inflation. >> steve, thanks now speaking of jobs, a new paid transparency law in california is giving us an inside look at what some of the biggest companies in the world are paying their companies most of the salaries are in the six figures with big names like apple, google and meta posting salary ranges from 120 to well over $300,000. here's the story what are you learning? >> hi. so this new law went into effect on january 1st and it gives us all a chance to look at big tech salaries, kind of for the first time. but it's important to note that these salaries don't tell the entire story especially for big tech engineers it can make up over half of their compensation, people gunning for high-end jobs need to understand that these salaries aren't your total compensation that you will get benefits, 401(k) match and other

stuff on top of that, especially in the technology industry >> well, i think the important point here is that kind of like finance, you get your base and then you get your bonus. a couple years ago, that looked a little more attractive than it did now. what would you say overall about the compensation details that are revealed here and the impact that it's going to have across the valley. >> it's very important i talked to the sponsor of this bill and part of the thinking was to reduce pay gaps and so one of the things that tech employees can now do is look at job listings with their same title and bring that to their boss and say, i'm underpaid. transparent is expected to float a lot of boats here. >> so the -- are the requirements for reporting that, that you report a range, in other words, from 100,000 to 200,000, which is a 100% difference, or what? how granular and tight are the

reporting requirements and couldn't a boss say, well, look, you may be underpaid, but we're not the same company as oracle we don't have the profit margins oracle does. so we're not going to pay what oracle does. >> there's still a lot of room for negotiation even with these salary ranges. as you said, you know, some of them have ranges over $100,000 i've talked to hr experts and what they say is, these are accurate ranges for this title, there are multiple employees at this company who are in these ranges so for people who, you know -- there will always be a negotiation at the end of the day. when the range is just a starting point for you really to go to your boss and your employer and make sure you're getting paid what you're worth >> all right, thank you very much we appreciate it we appreciate your reporting there. ahead on the program, the first trading week of the year coming to a close, kind of been

a meh kind of week expect for today, pretty good. it's been a better week than kevin mccarthy's had let's put it that way. let's take a look at the top performers so far. as we head to the break, check out shares of the solar names that are surging cadaolna sar leading the way up 9% only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership.

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♪ i'm contessa brewer. here's your update this hour the securities and exchange commission clearing former north carolina senator richard burr of insider trading allegations. the s.e.c. investigated whether burr violated federal insider trading laws by selling more than $1.6 million in stocks before the market crashed during the early stages of the pandemic one of the lawyers defending alex jones has been suspended from practicing law in connecticut for six months for improperly sharing confidential documents. according to a judge, he failed to safeguard sensitive records of the families involved alex jones has been ordered to pay more than $1.4 billion in damages after a jury trial last year and al roker returned to the

today show after being away for two months he was admitted to the hospital for a blood clot in his leg. it was the first time in 27 years he hasn't been at the helm of the thanksgiving macy's day parade >> al is one of the great guys in our business and we're glad to see him back and healthy again. thanks. ahead on "power lunch," will 2023 be the year of major market reversals? energy had a big year. can it repeat that year? the broader market struggle held investor's attention it's rare to have two bad years in a row, what can derail a possible turnaround. we'll discuss that and more in just a moment. school counselor. [lea] i'm a retired art teacher. [steve] we met online about 10 years ago. as i got older, my hearing was not so good so i got hearing aids. my vision was not as good as it used to be, got a change in prescription.

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welcome back to "power lunch," everybody. let's get a check on the markets. 90 minutes left in the trading day. here's some of the key movers. christina? >> tyler, bad news is good news for the market today softer wage data, inverted yield curve and a contraction is helping to snap a four-week

losing streak. all indices above 2% and they could close in the green if this momentum keeps up. but the weaker economy numbers helping drive up gold which is almost 2% higher today retail and semiconductors leading the nasdaq higher, costco is the bigger winner, up 7% after a strong december holiday sales report other retailers like dollar tree and ross are up in sympathy. but bed bath & beyond, down 21% after warning it was considering bankruptcy and we talked about those chip stocks, lam, broad come, micron is on pace for its best week since december 2021. and lastly with a jump in oil prices that we're seeing, energy is one of the biggest laggards on the nasdaq. down 2%. not a good week for mccarthy.

>> taking the markiets a few tries. >> that's life, right? >> 2022 was a great year for oil. wti crude surging early in the year that resulted in some record profits for big oil, but oil prices have come way back down will the same happen to energy companies stock prices let's ask the managing director at wolf research and chief investment officers at pickering. are you concerned at all >> not at all. great to be with you it's not a concern i think it's pretty much in line with expectations. demand has been a risk for ail markets for the whole year, especially when the prices -- when prices go high. and i just think we're seeing that manifest in oil bad news is bad news that's just what's moving the markets today. what helps the equities, though, particularly the majors, is that they paid down a lot of debt over the past year and a half of

really strong earnings they're entering what might be a recession or a touchy economic backdrop with the strongest balance sheets they've had in reasons and that's why the stocks are defensive, even if oil remains volatile >> and as you said, exon and chevron are your two pain picks here dan, what about you? what do you think about the idea that the oil price today is going to catch up in a bad way with stock performance in the months to come >> kelly, i think that oil is okay i'm going to take the over from where we are today, given recovering demand in china the lack of spr release. i tend to three that we're going for a three p-pete in energy stocks all of these things are playing well for the stocks. the majors are fine.

i tend to look a little bit further down market cap to some of the domestic producers, companies like devon energy, diamond back energy, schlumberger i think those are names along with an exon and chevron that are going to do well i think it's a three-pete for outperformance will we get another 60% move it's hard to say it feels good to be involved in energy. >> one of the subtexts that we've been talking about all week is whether the global economy stumbles a little bit potentially later in the year. if that were to happen, sam, what would happen to oil prices? >> well, it's already happening on both sides. i mean, i think the data that you're seeing is realistic, the economy is having some struggles in the context of rates rising and a lot of inflation and so that's coming back to oil prices by way of demand, particularly in the u.s.

china has upside because of a reopening scenario, but there's a lot of inventory in china that's accumulated as well within their lockdown. and china is ramping up their exports of refined products which could ease the supply constraints for diesel and some other factors. i think the risk that you're describing aren't actually happening right now. the fact that energy stocks are working is a pretty good sign for the future and for dan's call as well i think we're going to have year of relative outperformance. >> we appreciate your perspectives. >> thanks. a double dose of volatility, extremely rare not unheard of especially during significant wn turns we will discuss that next.

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a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. ♪ welcome back i want to bring your attention to an event taking place right now at the white house the president marking the two-year anniversary of the january 6th insurrection we'll monitor his remarks. welcome back, everybody, to "power lunch." stocks continue to climb higher today as investors see more signs of easing inflation in today's jobs report and ism

data after a down year, can the market make a turnaround in 2023 let's guess that with ron, senior analyst for cnbc. also with us michael farr. welcome to both of you michael, you characterize yourself as relatively more cautious than maybe you typically are. explain why. >> funny, tyler, i think i'm relatively more cautious than everybody most of the time but when statistically we're po supposed to go into a recession this year and earnings are supposed to go through a contraction, it's hard to go through all cash and you don't want to be in the thin branches of risk right now. but i think there's still opportunities longer terms in companies with good balance sheets and good cash flow and things that have been beaten up that you can i think probably continue to buy. but being really aggressive in

here, i think caution is probably warranted >> ron, we heard earlier some sort of back and forth about the fed and whether we should believe what they're saying. they said pretty clearly in those minutes, there is not going to be any interest rate relief coming in 2023. should we believe that >> ell, i don't know, tyler. you know how i feel about all of this we're getting more and more data that comports with the position i've had for quite a number of weeks now, we're look at the employment cost index and cpi to find out whether we get confirmation of that, and we could be heading toward a recession. it's rare that you have a yield curve as inserted as this one. service sector, manufacturing sector, showing signs of weakness and the real estate market in a complete recession without getting a general recession somewhere down the road one would expect that they would respond to those conditions if and when they occur --

>> would it be a pivot or a pause? >> i think, first, a pause and then a pivot like that's critical going forward. i think we're going to need a couple of "p"s to happen this year, the pandemic is going to have to go away in china profit recession, if it occurs is problematic a pivot is going to be required and leon couperman mentioned looking for a new bull market in this environment without help from the fed might be a mistake and a way to look at this year. >> how do we figure in, michael, the fact that the fed is not only tightening rates, but unloading content off its balance sheet? what that will mean. >> i think they're doing exactly what they -- they're doing what they said they were going to do, tyler. they're tightening monetary conditions for the past 10 or 15 years, the fed has been our backup. things will get tight, the fed could cut rates.

they've completely changed that role so they're the ones who are doing the tightening i think they're going to do it not only on the balance sheet but continue to do it on rates will they go too far yes, they'll probably go too far. but to the question you asked ron, will they really stick it out through the end of the year? probably, but maybe not. you know, if they get things wrong enough, if we have some other shock, then they have no choice but to actually stop and pivot. i'm figuring that jay powell is going to do what he says he's going to do and stick with the rate hikes and get quiet and leave the cost of money high for the balance of the year and i think we've got to see an uptick in unemployment. until you see unemployment north of 5%, you typically see wage inflation higher than cpi. they need to equal out, kind of. >> can i ask both of you what would make you at this point rip-roaringly bullish, ron >> the fed would have to pivot

i think that -- from a secular perspective, i think that's the only thing really that launched this new bull markets, you look across, you know, the balance of history and you do not get raging bull markets while the fed is tightening. rules number one and two, don't fight the fed, don't fight the tape and, you know, the tape has been erratic at best, even as of late with a positive week so i think you need that tail wind to get a secular bull market in place. >> might be able, three of your choices, i want to move on to a fourth here, rtx, defense and aerospace, google, i want to come back to a stock that i know you like to talk about, and that is j&j can j&j be j&j without band-aids? >> it's always tough one of the other stocks i like mo mondelez

and they have oreo cookies but, no, j&j can continue to grow to that, i would say valmont, in the infrastructure space, there are names where i don't think they're getting the big crowded trade perhaps that j&j is getting, though, with the aaa balance sheet and that dividend, i'm not selling it either. i stick with my j&j you know. >> that sounds like voldemort to me thank you, guys. ron and michael. >> happy new year. >> thank you and costco reporting strong sales and today having its best day since march of 2020. should you buy this stock in bulk we've got that and some other big winners this week coming up in three-stock lunch 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.

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time for today's three-stock lunch. costco higher by 7%, leading the s&p after those strong december sales numbers. delta air lines up 9% this week after a few upgrades and the announcement of free wi-fi and booking tailwinds from the southwest disaster and the copper miner up 12% this week and 6% today on an analyst

upgrade and rising commodity prices let's bring in the managing director and cnbc contributor. let's start with costco. do you like the stock here >> 31 times earnings, a little expensive at this point. but it is the preeminent brand brand in the space i think, you know, this is the story that costco is telling us, the middle income and upper income american consumer has settled into this very comfortable two-way shopping behavior pattern where everyday goods are bought at amazon and you buy everything in bulk at costco i think that behavior pattern is clearly being reflected in the sales of costco at this point. company's tremendously great executor of talent they have some of the best merchandising and selection out there. so to me i think on a long-term basis, great compounding stock they've increased their dividends 19 years in a row. going to increase it more.

it's not a rich dividend but it's all going to grow a long time it's an amazingly good stock. >> let's move on to delta, delta airlines. >> so delta is very interesting. delta had a huge upward guidance they doubled their fiscal 23 revenue. they have $2 billion of free cash flow. i think it's just a strong testament to the fact that they are probably the leading brand in the space at this point certainly they have the best -- the lowest cancellation time very, very good brand image with the consumers. they probably are, like you said, going to get a tremendous amount of flow from southwest because of the southwest disaster and they're benefitting from this frankensteinian word bleisure business and leisure travel. it's not showing up in the incomes of consumers the company is the preeminent

one in the space >> you know i can't resist that bleisure i want to dwell on that for a moment we have to move on to freeport mcmoran. >> fcx is copper if you believe in the ev market continues to take market share away, you need 2 1/2 times more copper for an electric vehicle than a regular vehicle that's why copper continues to rise, rise, rise the market is projecting about a 50 million ton shortage of copper by 2030 there's going to be way too low supply it's not just evs, it's wind power and solar. it's structurally a very, very

strong secular bull story. it's got a lot of volatility, china, no china. recession, no recession. it's an interesting story. >> i only care if it's dr. copper as an indicator if it's a secular story, i'm moving on. i'm going to find something new. >> good point. there's also the dollar, boris how does that figure in? where do you see that going? >> i think lower i tweeted out today the dollar with the ism number, it dropped after the yen. i am in the camp of it's not everybody else the fed has got to stop. has to stop for everybody's sake and certainly for their own if you don't want to drive it into the ground so i think the story is not going to be oh, you know we're going to cut rates, but i think the story is goings to be we'll wait and see the story will come much sooner than the market expects. at this point there's zero

reason for them to raise rates inflation is dead as far as the macro point is concerned wage pressures, we're relatively modest it's not like in the '70s. labor does not have the power to negotiate. wage push inflation is a story of the past. i hope he's not living in the '70s i hope he comes to his senses. if that's the case, the dollar probably gets weaker. >> a big hope to be sure in the nst market shape tee bait. boris, thanks so much. >> thank you all right. stocks continuing to rise right now. we are near session highs. look at that, 714 point gain for the dow. mu me t mke wn choronheartshewe come 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

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breaking news now on the continued drama surrounding the house leadership vote. ylan mui has the story. >> tyler, kevin mccarthy is inching towards the finish line and the 13 round votes for speaker of the house but he is not there yet. this time around his opponents didn't even bother to officially nominate a challenger. mccarthy was able to flip one more around. in a previous round he flipped 14 the current tally appears to be 214 voting for mccarthy, 6 republicans are still voting

against him and that leaves him several votes shy of the majority that he needs in order to secure the job. from here the math does get a little bit tricky. some members will have to leave town some are coming back into town and some say they're never going to vote for kevin mccarthy no matter what. bottom line, kevin mccarthy is getting closer to wielding the speaker's gavel but he has not clinched it just yet. >> how many more votes does he need and what was it, do we know, that flipped that large block? not large but maybe a dozen or so votes in his direction overnight? >> yeah, i am hesitant to give you a specific number on how many more votes he needs, tyler. it all depends on how many members actually end up voting and how many end up voting present even if they are actually in the chamber. the number can move around a little bit he will need a couple more one of the things we know that mccarthy has laid on the table to try to entice numbers is

giving them spots on key committees and ensuring that they can get on the committee that shepherds bills to the floor, agreeing to doing things like voting on a balanced budget many of these members are worried about seeing baseless government spending and that's been a real animating factor in a lot of the behind the scenes negotiations. >> the committee that is most critical there in shepherding bills to the floor is the rules committee, correct >> reporter: that's right. there's some reporting from nbc that the hard liners were looking for as many as three seats on the committee unclear where exactly they're going to end up with that. that's part of the negotiations. there was one member, representative andy harris, who flipped during this round who could be seen talking to mccarthy allies. so it's coming down to the wire. >> ylan mui, it's been a busy week >> let's take a look at the market session highs. dow's up 730 points. or up 2.2% nasdaq, tyler, up 2.7%

>> apple close to turning positive the week began soggy but it is on a decided up note there is apple up four points right now. >> i would say ending soggy data now. >> yes yes. exactly. folks, have a great weekend. thanks for watching ""power lunch."" >> "closing bell" starts right now. it is the first big rally of the year stocks are off to the races after today's jobs report showed wage growth showing. what it all means for the fed and the market this is a make or break hour for your money welcome, everyone, to "closing bell." i'm sara eisen at the highs of the day right now. the dow is up 726 points we've got more than 2% rallies across the board nasdaq surging 2.7%. bonds are rallying as well there's the 10-year note yield all the way down to 3.5. wage growth on top of the