out there and we run through them "power lunch" begins right now >> and welcome, everybody, to "power lunch." kelly evans i'm r mathisen climate change, tw today. president biden discussing it at the north american summit. fed chair, jay powell, talking about the fed's role in fighting it lots of people talking about the news that ozone layer may, in fact, get this, be healing plus we'll talk to an analyst who has ideas on how to make money off of our clean future. and forget the cpi, the ppi, pmi, all the data points we have our eyes squarely fixed on the american consumer we will look at some alternative economic indicators that may paint a different picture of the economy than what fed and the markets seem to be focused on. very much looking forward to that hi, everybody.

let's look at stocks in the green right now, although they were slightly negative earlier on the dow up 114, the nasdaq up three quarters of 1% we're seeing big movers there. check out, for instance, warner brothers discovery up for the eighth straight day now up 30% this year. talk about a turnaround for wbd. bank of america adding the stock to its u.s. one list credit a lot of deal making hopes for a little bit of the rebounding there now coinbase also building on its recent rally, now cutting another 20% of staff seven months after making a similar cut the first time around, wall street cheering that event and we turn now to thebig news event happening this hour. president biden meeting with the prime minister of canada, trudeau, and president obrador of mexico. let's go to kayla tausche for a look at what's on the table. kayla? >> kelly, the three leaders are in the same room for the first time in 14 months during which time migration has ballooned, the economy has softened and, of course, there is a lot of

uncertainty across the board u.s., mexico, canada today announce something concrete policy actions to try to tackle some of those issues setting up a website, an in-person processing center for migrants, coordinating splchs for semiconductors and critical minerals and also establishing some clean energy policies there's also some tension behind the scenes long simmering trade disputes on agriculture, dairy, energy, auto manufacturing with each country staking out its own position while those specific disputes will also enter the discussions alongside some of these more macro issues, officials say don't expect a breakthrough. kelly? >> wow we also know climate, kayla, will play a big role here. what kind of role? >> well, it's one of the three cornerstone issues that's on the table for these leaders alongside migration and trade. already the allies announced a goal to cut methane emissions and waste by 15% over the next seven years to develop a clean

hydrogen market in north america and to install electric vehicle chargers along the international borders. the challenge that the leaders are already facing, is how to pursue these goals in a way that each country can create jobs and bring business back to its own companies without the other allies crying foul that's what's led to some of the trade dispute theirs' currently discussing and it's been a really difficult situation to navigate since the usmca. as leaders discuss climate as part of their discussion this week, jay powell noting in his remarks the central bank should not be in the business of litigating climate issues. here's what he had to say. >> without explicit congressional legislation, it would be inappropriate for us to use our monetary policy or supervisory tools to promote a greener economy or to achieve other climate-based goals. >> so as the chair deflects to political leaders to address the issue, the united nations out with a report today on some improvements in the ozone layer.

diana olick is here with more and the latest what's happening and how >> well, kelly, the united nations announcing the ozone layer will be healed in 43 years thanks to the montreal protocol in 1987 when literally every nation in the world agreed to stop producing what they called color row fluorocarbons, chlorine and pro mean used in aerosols but that does nothing for global warming and fight for it it sets a precedence okay, if we have this regulation and agreement, we can actually fight something and heal likts the ozone layer. we need to do more when it comes to global warming. we are nowhere close when it comes to global warming. in fact, world resources institute just put out a study saying that of all the sectors we talk about, they are so far away when it comes to power, buildings, industry, transport, forest and land and food and

agriculture, they are not acting nearly fast enough to get us to that 1.5 degrees celsius of global warming that is the goal of the paris agreement kelly? >> i guess the positive thing here is the proof, i suppose if you can call it that, that enlightened policy can cause change in the environment, so that if you take what was done with the montreal accords or the montreal protocols and apply a similar model to addressing greenhouse gasses and global warming, you could have a similar result, right? >> exactly and that's what we're talking about. the issue, though, is, you know, we saw a lot of progress at cop26 and again at cop 27, but not nearly enough to get us there. you know, we talk about all kinds of technology and solar issues and a lot about the solar industry and i want to use that as an example because when you look at how far solar has come -- for example, from 2019

to 2021 solar generation and wind by 31%, but because total electricity generation continues to increase, the share of electricity from zero carbon power sources has experienced no change whatsoever. zero net result from that. so as we talk about move toward cleaner fuels, cleaner energy, cleaner technology, cleaner ag, it seems like we need to go farther and get more policy and actually probably more regulation involved as they did with the montreal protocol. >> in layman's terms, why is the hole in the ozone layer important to us? >> it's important, i'm not a scientist on this, but from what i read, it is protective and has to do with heating, et cetera, from the atmosphere. but again, it is not global warming and it's not directly related to the fight against global warming so we really need to put the focus there when it comes to global greenhouse gas emissions, what is coming from the earth, not necessarily protecting, whether, you know,

it's from the sun, et cetera, or greenhouse emissions going up into the ozone layer it's really we need to reduce our own emissions here on earth because that is what is warming us. >> at the same time all this chaos in california. what can you tell us there about the climate conditions >> it's all directly related when we talk about global warming so much people think about sea level rise, right. they talk about more intense hurricanes but really, one of the most devastating effects of global warming is the amount of rainfall we've talked about this in our rising risk series a lot as the earth warms, the clouds can hold more moisture and that's why you're seeing so many of these devastating rains or up in the mountains when you hear four feet of snow up around tahoe, that's just abnormal. you're seeing the deluges, whether in new jersey a couple years ago and what we're seeing now, that is all tied to global warming an the fact that we're seeing much higher levels of precipitation. >> the atmospheric river thing is -- do we call it a new thing or just a more common

phenomenon >> i think more common phenomenon when you see with so much more precipitation in the rivers and one after the other, like we kept seeing hurricanes one after the other in record numbers, and the last eight years have been the highest records of heat of global warming in history. >> wow diana, for now thank you very much we appreciate it all right. and with climate change in focus, wells fargo looking at how the u.s. could generate its energy by 2050 and which stocks could benefit. let's bring in neal callton, equity analyst at wells fargo. as the world and america transitions to electrified cars, your a going need to generate more power to power those cars where is that power going to come from? who has the pole position on that is it renewables is it nuclear? is it natural gas? what >> hi, tyler i think it has to be all of the above. at least in the near term.

so every year we return a generation outlook that takes a look at what the mix will look like by 2050, keeping in mind the industry has a zero carbon goal by 2050 what is it going to look like? renewables are in all likelihood going to be a big part of the equation we see them growing to about 15% of power generation to well above 50% by 2050. now, renewables, as you know, have some limitations around storage, the sun doesn't always show, the wind doesn't always blow, so we need to backstop that with other sources. in the report this year, one thing that we highlighted that we think nuclear is going to play a bigger role relative to what we would have told you a year ago now -- >> why is that >> well, to be clear, the -- this is more about the extending the life of our existing assets. one year ago we feared that a third to 50% of our nuclear

fleet for economic reasons could be retired over the next 20 to 30 years what happens since then? the inflation reduction act. there was a production tax credit for nuclear that runs from 2024 to 2033 that provides a floor on earnings. we think it's likely the tax credit will be extended over time again so this creates tremendous value for the existing assets that are in the ground and the owners of those assets we also think there could be some new nuclear in the future, small modular reactor, however, this technology has yet to be really commercialized so we're not counting on that the story here really is the existing nuclear fleet we think will last long. >> does the revealed precariousness, let me put it that way, of energy supplies through nat gas and oil and other conventional means that has been exposed by the war in ukraine, does that play into the

nuclear narrative in any way >> it helps. during the 2010s, natural gas prices really influenced power prices, and during the teens, with nat gas being low, that suppressed power prices. that's why we feared for many of these nuclear units, their ability to generate reasonable turns to stay alive. right now, power prices they have been quite elevated and that's helpful, but the important point to remember is that even if natural gas prices were to decline, the nuclear producers now have a floor on their earnings which gives them more certainty with which to make an investment. >> neal, the rub on nuclear in the u.s. has always been that these big projects are a complete boon dogle that cost too much and never get off the ground and never achieve anything like what france has. do you think we can change our stripes overnight? new york is banning or thinking about banning nat gas hookups in

apartments and we need electricity sources from somewhere. the need is there, but it's not clear that this can well adapt to the u.s.? >> yes so nuclear currently provides about 20% of our power out we think that's going to remain fairly static with renewables and advanced storage filling the gap. but i think it's important that nuclear can remain static. to your question, we have a long history of big nuclear development that's resulted in project delays and cost overruns i don't think we change our stripes any time soon. i think that's too much risk for most utilities to take on. where there is a chance is small modular reactorrs, not the big nuclear facilities if we can commercialize those and do it in a way that reduces the risk, that could be a additive right now we're in the feasibility area, that's a 2030s

and beyond story. >> yeah, it is like you said, the need -- if we're ever going to try to get there, we're going to try to get there now for sure appreciate your time thank you so much. >> thank you. a developing story in the crypto world kate rooney has the news. >> digital currency group is putting out a lengthy shareholder letter just now defending some of its business practices as the crypto company comes under fire from others in the industry it's the latest in a battle playing out between high-profile crypto executives on one side, winklevoss twins, and barry silver, the founder and ceo of dcg, digital currency group, parent company of bitcoin trust. sillbert says he's looking to address the speculation about dcg, some of which is reasonable and some that is baseless and false. he goes through the business model and lending relationships with subsit dairies including

genesis. he said loans were always structured at an arm's length basis and were priced at prevailing market interest rates. this morning cameron winklevoss tweeted an open letter to dcg's board calling the removal of barry sillbert accused him of fraud and making false statements to the public dcg responded calling the comments malicious, false and defamatory and said it's another desperate and unconstructive publicity stunt from cameron winklevoss to deflect blame from himself and gemini at the core of the issue, the gemini earned interest bearing account, that relied on the back end that happened through dcg and one of the subsidiaries there, the lending arm has shut down there's company money locked up there. gemini is being sued by its own customers in a class action lawsuit. the latest in that saga playing out there.

>> it's been as complicated as it is, it's pretty clear how everybody feels about the matter and getting more pointed as go thanks so much coming up, biogen getting a boost from the fda to approve its alzheimer's drug we'll speak to the commissioner about that everyone looking forward to thursday's cpi report. but we're looking at alternative indicators that might get you an even better picture of what's going on "pow lchwi brit erun" lle gh back wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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welcome back to "power lunch. let's turn to the health care conference in san francisco. meg tirrell is standing by with the commissioner of the fda, plenty of news on that front meg? >> absolutely. kelly, dr. califf, thanks so much for being with us >> great to be with you. >> i want to start by asking you about the news friday night, the accelerated approval of a new drug for alzheimer's disease from biogen and eisai. how would you characterize considering how many millions of patient have alzheimer's doze disease right now and nothing for them, where this field stands in terms of solutions >> it's been so depressing you have such a serious disease growing rapidly because we're living longer and affecting so many people and their families now we have a treatment which lowers of the risk of progression of your ability to think and calculate and all the

things that are important to life that's not a cure for the disease. it just slows the rate of progression according to the clinical trials. there's new hope it's very exciting we have a lot more data that needs to come in, though, before we'll know the full extent of the benefits and exactly who should get the treatment and what the risks are in the long term but there's a lot of reason for optimism. >> so the situation right now is this drug is approved, but unfortunately very few people will probably be able to access it because medicare is not covering drugs that cover amyloid. a lot of people interrupted that decision as a he rebuke of the fda's approval of the previous alzheimer's drug how did you interpret it >> people like to talk about contests and competition and rebuke and all that. the fda as a mission, safe and effective. the cms has a mission, reasonable and necessary and the home approval, the first

drug for alzheimer's was approved on the accelerated pathway, had limited data, and this led to a lot of good discussions with cms i think as it relates to the new one just approved, there's going to be a lot going on with that and remember the company just submitted their data for full approval, not the accelerated approval that's going to be coming up so i don't expect the cms policy to be a totally fixed policy we have a lot of communication and i think they'll reach a good spot it is important for me to always point out, fda has a mission we don't tell cms to do. cms doesn't tell us what to do i liken it to a relay race, where we need to make the baton handoff a lot smoother that's not a new problem but this has really brought it to public attention. i don't think that's a bad thing. >> i want to ask you about

covid. of course where we are right now, there's continued discussion around what should happen with the vaccines there's a meeting later this month to talk about them we talked with re again ron's ceo about a new antibody drug they have which they think could stand up better against variants the fda moved so quickly during the emergency phase of the pandemic it seems unreasonable to ask it could continue to do that but is the urgency still there around covid and how are we looking at that >> we're losing hundreds of people a day in the united states to covid. we're still in a state of emergency. we'll respond quickly. there's a lot going on in the industry, both, you know, in the vaccine area and the antiviral area, in the therapeutic antibody area, all this is moving of course it would help if we could have more government funding to stimulate this, but so far we've been unsuccessful with congress and getting that to move along.

we're ready, and helping the industry think through this. but as always, we need good data you know, there are a lot of great ideas and like an all of drug in therapeutic development most things don't work, and so you have to prove that it really works before you move forward. >> tyler >> dr. califf, the story of the vaccines for covid and the speed with which they came to market is one of the great sort of miracles of medicine and science and commerce over my lifetime, i suppose, but at the same time, i wonder if you feel that -- i've been vaccinated five times i believe, i wonder if you feel some of the efficacy of the vaccines was slightly oversold in other words, a lot of people, when they think of vaccines, think that they are going to be inknock date accumulated from getting a disease, polio or measles or chicken pox or smallpox, whatever it is this is a different kind of vaccine. it didn't seem to inoculate as

many people as maybe we were led to believe against getting the disease, but rather, against getting a severe variant of the disease. could you comment on that? >> well, i think that's great question, and i think we look back to the beginning -- of course, i was not in the fda, i was on the outside -- it did protect against infection to a fairly large extent. over time that impact wore off and as new variants came the protection against infection, per se, became less. so i think it's fair to say that communicating with 320 million people is hard to do and maybe that communication could have been better. what's really important, i mean, remember, i'm a cardiologist, i'm used to dealing with life and death, in my experience, not dying is one of the most important things we have beyond that, not getting sick enough to have to go into hospital is really important every update we've done with the

booster has protected against the risk of being dead or in the hospital that's the most important thing. while people focus on infection, understandably, we need to bring our attention to the fact that if you want to stay around and be around for the next holiday, you don't want go in the hospital and burden the health system or be terribly sick, best thing you can do is get your updated vaccines. >> i didn't know - >> also want to mention that doesn't mean -- i'm sorry, go ahead. >> i was going to ask you, it occurred to me, i did not know you were a cardiologist and i have to ask you, as you watched and reflect on what happened monday before last in cincinnati with the buffalo bills ballplayer, how did you feel as a cardiologist knowing what outcome was and knowing how quickly people responded and knowing the life-saving abilities of cpr must have affected you >> oh, i just felt tremendously proud of all the things we've accomplished together in the profession and, you know, in the

technology you know, i'm 71 years old so when i started my career, we were just really beginning to use defibrillation and how we have these devices which are all over the country, so literally if that case of comotio coredis, i used to see that five or six times a year, i ran intensive care units, flew on helicopters and picked people up, and when people get that blow to the chest due to bad luck, if it's at the right part of the cycle of the electrocardiogram, your heart stops and can't beat, give a shock, the person is back to life otherwise they would be dead i think the team that was on the field it was amazing, but, you know, it's actually a true story. why did i go into cardiology i was working as an yords early in a hospital, thinking about going into medicine and saw someone get defib lated and thought, wow, this is like amazing you can save a life like this

now look at all the things we can do so it's very exciting. we need to have more defibrillators around. it's still really the leading cause of death, is sudden death, not from a blow like that, but due to heart attacks, due to intrinsic disease. we also, i want to put in my plug here, we need to get naloxone out there too, opioid overdose is similar in the way it happens. >> dr. califf, thank you meg, thank you forgive me for sneaking in the last question. i was just overcome when i heard he was a cardiologist and i beg your indulgence there. thank you both very much for an interesting interview. meg tirrell and dr. califf. still to come we will dive deeper into the health care area first you'll hear from the ceo of medtronic in today's working lunch and serrat sethy, joins us to explain why pharmacies could be a good value play

. welcome back let's get over to the bond market where we've seen major action lately. rick santelli with the latest. rick >> yes we had a 3-year note auction that went well usually short-term are hard to push on investors because of how

closely they follow the fed. 2-year you can see around 1:00 eastern rates dropped a bit. something else interesting, let's do a double, two-day of 2s today the yields didn't quite take out yesterday's highs, but notice a two day of 10s they did. even though it's subtle there's more steepening dynamic to the markets today and long dated treasures seem to be finding more sellers, something to pay close attention to look at 10s minus bunds, the spread is the tightest its been since october 2020 let's call it 27 months. and finally, here's a dollar index going back to jobs friday. we can see how the market dropped like it did in interest rates but not a lot of bids coming back in the dollar index. something to pay attention to if we close under the 103 mark. back to you. >> thank you. let's check on stocks right now. the major averages slightly higher the nasdaq leading the way russell small caps 2,000 as well we're seeing the nasdaq up 1%, dow up 131 to contessa brewer for a news

update. >> hi there, kelly a federal agency is considering a ban on gas stoves because of their link to health issues, including childhood asthma in an interview with bloomberg the consumer products safety commissioner called gas stoves a hidden hazard but said there's no plan to ban them at this moment the commission says any option remains on the table if products dangerous. a few report shows 12% of childhood asthma cases can be tied to gas stove use. that's shocking. climate induced extreme weather caused at least $165 billion in damage in the united states in 2022, according to a federal report the year was not the hottest on record, but it marked the most billion dollar weather catastrophes in history at 18. those catastrophes led to 474 deaths in this nation last year. and multiple reports say short stock carlos correa is nearing a

six-year, $200 million contract with the twins after the deal with the giants fell apart talks with the mets fell out he could earn up to $270 million if he remains healthy. for these athletes that's always the goal. >> all right contessa, thank you very much. ahead on "power lunch" do powell and the markets see the same things consumers are seeing in no one can seem to agree on how bad things might get for the economy. we'll take a look satome alternate indicators when "power lunch" comes right back.

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

. yesterday we talk spoke about the divide between the fed, markets and consumers view the economy. economists point to data to indicate when that's set in. the market reacts to the early warning signs and with the snap of your fingers you get market turmoil but consumers are left on the sidelines and feel the pain before the recession gong is struck. we decided to take a look at alternate economic indicators and see what they're telling us about the real economy for instance, more and more americans are relying on credit cards to get by. even for everyday expenses

35% carrying debt month to month and buy now, pay later a technology meant to help make items more affordable but reporting more than half of the top 100 items users buy are grocery and household goods. morgan stanley see 401(k) contributions shrinking and vanguard reporting hardship withdraws. here to discuss is marshal lux, senior fellow at harvard university and the university of pennsylvania's wharton school and a financials services consultant for 30 years and formerly chief risk officer for chase bank what do you watch to figure out how much pain consumers are really feeling >> first, thanks for having me and believe it or not, i'm an optimist with that all said, let me give you what i think is the tale of two cities first is the average, despite what people are saying about the

worker talent, the average pay increase is about 4.5% if you compare that to the inflation number, people are earning less, not more three out of ten americans say they have no savings they have no emergency savings, so living paycheck to paycheck we talked about buy now and pay later. another time i'll tell you why i think it's a dreadful product, when offered, it's unregulated -- >> is it -- let me stop you there, one thing i wondered some of the data points you mentioned we've heard before they've been true cycle to cycle. something like buy now pay later hasn't existed before. when i watch people looking at charge off rates an the rest of it, are we capturing some of the new technology that's maybe stretching consumers more than we realize, buy now, pay later one example?

>> yeah. buy now, pay later, is financial dynamite it's the most -- i could go on with this forever, but i don't have the time. it's -- it's the most common form is four payments or more. truth in lending laws apply to five payments. coincidence? i don't think so technology has enabled people to stack, so a large number of people have five, ten products that -- they're simply hard to keep track of. if you look at the common websites, they say we may or may not report you to credit bureaus, we're not sure. and the bureaus don't know what to do. >> where does, marshal, this reliance on debt, whether it's through buy now, pay later, or

rising credit card balances being carried month to month, where does that lead us as an economy, as a society? >> it leads to tremendous distress the average consumer is going to see their mortgage payments this year up 34%. it also means that -- i mean the jumps you're seeing are unbelievable, considering the credit cards - >> that can't be true, marshal, because 34% of people did not take out new mortgages this year at higher rates. >> no. but their mortgages are adjustable, right. so as interest rates rise, the amount that they're going to pay simply increases and in fact, in the real world -- >> those with adjustable rate mortgages will see their rates go up 34% year over year i buy that but if i had a fixed rate mortgage at 2.8%, or 3.2%, the

rise in interest rates, presuming i didn't do anything like move, is going to be a nonfactor for me, right? >> it's anonfactor for you, bu it does mean that the unintended consequences, you're probably not moving to larger home, right, because - >> right. >> because if you move it a larger home you're going to get another fixed rate or maybe an adjustable rate, which is why you're seeing that to be -- the number of listings of new homes is down 24%, and the number of people taking houses off the market is up 75%. >> i buy that. because you sit there and you go wow, why would i ever move if i'm going to have to now take my very low mortgage and flip it into something that's twice as high marshal, thank you very much we appreciate your time.

>> sure. my pleasure. >> see you again soon. still to come, jon fortt will bring us his interview with the ceo of medtronic in today's working lunch. nertowoing. the first time you connected your website and your store was also the first time you realized... we can do anything. cheesecake cookies? [together] the chookie! manage all your sales from one place with a partner that always puts you first. godaddy. tools and support for every small business first.

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medical technology having a bit of a tough run inflation, labor shortage squeezing profits and procedures are below precovid levels. jon fortt brings us up close with the ceo trying to balance cost, cuts and growth investments at a company we all know about. >> yeah. tyler, geoff martha ceo of medtronic with a $100 billion market cap since the stock hit all-time highs a year and a half ago, supply chain disruptions, currency headwinds have been a drag they're shifting capital investment to higher market businesses to a valve replacement business to open heart surgery but cost cuts are cutting. a year and a half ago geoff told me about his experience the toll financial shifts can take on families when he was a teenager his dad's business failed and one day he was on his way to his child's

birthday party when he got a call, his job was being eliminated. >> well, i wouldn't recommend the path i chose, you know the path i chose there was to keep it to myself. i didn't tell my wife, i didn't tell my family, because i had recommy own father's failures because he went bankrupt and it was a business bankruptcy that turned into a personal bankruptcy that created chaos, divorce, it was just bad, and -- but he's still my idol but it really changed him. i was thinking about that, and i thought, i can fix this. i will fix this, and i kept it to myself. in many ways, i got lucky. >> his case, lucky meant getting invited to interview with omarishrack at ge health care, he had been at ge capital.

ishrack would precede him as ceo of medtronic today, martha told me he's trying to make sure medtronic gets the most out of a reorganization that centralizes operations to drive efficiency and wants to fuel growth by investing in high margin areas. >> things like, you know, heart valve replacements, minimally invasive techniques to replace heart val of ves. another one diabetes another hot topic is atrial fibrillation, has caused roughly half a million hospital admissions last year in the u.s. alone, and the medical technology is getting to the point where in some cases it's considered the frontline therapy for atrial fibrillation ahead of current drugs these are the areas, robotic surgery is another one, where we're prioritizing these are large patient pools around the world where technology has a big impact and improving the efficacy,

improving access, right. >> medtronic does have self-inflicted wounds here the diabetes unit had quality control problems and is in turnaround mode after getting a warning letter from the fda a year ago geoff believes the balanced approach is a way to grow earnings and get margins back up. >> does cost cuts mean staff reductions of the sort that he got caught in a decade or so ago? >> they haven't said, but initially with the reorg back in 2021, there were some head count reductions and at jpm yesterday, they did say they're working on variable and fixed costs and that often means there would be? >> i'm sure his story is going to resonate with a lot of people going through these rounds of cost cuts and layoffs one after another. >> tell your spouse. don't -- >> yeah. >> don't keep it a secret. >> doesn't sound like a good recipe jon fortt, thank you. >> thank you. up next, with growing economic uncertainty, the path ahead could look perilous for

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we'll get there together.

(vo) wells fargo lets you know where you stand with your fico credit score. what if you knew where you stood with everything? like your future in-laws... (boyfriend) hope you like cats... (hero inner thought) i hope your parents like me... they're whispering. (father in-law) the kitties like her... (hero inner thought) can they tell i'm allergic? (mother in-law) tears of joy... (father in-law) welcome to the family! (hero inner thought) whew! (vo) like knowing where you stand? when it comes to your credit score, you can with wells fargo. welcome back to "power lunch. our next guest says the market is looking for companies with solid cash flows and says those with resilient earnings selling

at reasonable values will do better in this environment let's go value hunting with sarat sethi, managing partner at dcla and cnbc contributor. let's start, sarat, with your first name, cvs, why do you like it >> so this is a self-help story. if you look at the stock, it trades at ten times earnings, comps at 17. they're restructuring the stores up front and they have a merger with aetna the combination with the two will give them the operating leverage they need, the earnings gr growth you're going to get that not many companies are going to have in a downturn i think you've got a lot more upside here than downside in terms of cash flow and capturing the earnings resilience. >> i think of them increasingly as a healthcare delivery and payments company that has a store attached to it am i wrong >> you are absolutely correct.

and that's where they're kind of trying to do everything. they're tryinging to get people to go to the store and then kind of do the combination of delivery and now if you look, they're trying to make an acquisition to get more into the physician side that is a little bit of an overhang on the stock. at ten times earnings, you're getting paid to actually wait for them to do something and that could be critical to earnings i do like the whole -- >> i'm sorry, i was saying to tyler how many times we heard people with cvs being a recent pick tell me about nix, ed son. >> it trades at 14 times earnings what you got here is earnings growth of 5% to 7% of the distribution of transmission side that is regulated. that's pretty much what we say in the bag plus 4% dividend yield in an environment today where you can get earnings plus 4%, you're looking at high single digits to 11% on return, and overhang here is that it has

been almost four years to have the severe storms out in california so people are still a little bit scared to invest but once that -- once we get to the fifth year, you don't have the payments going forward, which are already built into earnings so, again, a stock that has resilient earnings in a volatile market where, you know, where can you expect growth, especially when you see what is going on with the fed and other companies kind of cutting back on earnings. >> what about the argument of why be in stocks at all when you can get 4% on cv in a very uncertain environment? >> i think one thing that changed is there is an alternative and you can get cds and even treasuries and corporate bonds. the question is what is your risk tolerance and your profile, what are your objectives if you're a long-term investor over time, 3the returns have bee high single digits, sometimes double digits. we don't think that's going to happen that's better than 4%. 4% is good if you're retired or

looking for capital preservation you're keeping up with inflation. the combination makes sense at this point so take some low risk on the equity side, look at some of the companies like cvs, edison, some other value plays, marry that with bonds and you can have a diversified portfolio that gives you downside protection in an environment where we're going to get some pretty good volatile earnings surprises coming up. >> marry stocks and bonds for this kind of year we're heading into sarat, thank you so much we appreciate it >> exactly >> sarat sethi. we're going to look under the microscopes at the hot jobs -- are there hot bsjo for 2023 i bet there are. dom's going to find them [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪

♪ dreaming is free. ♪ accenture, let there be change.

it's time for the return of under the microscope, dominic chu is looking at the top jobs for 2023 i hope they're going to be right. >> this is all very subjective, right? there is all different kinds of criteria, people have different characteristics for what they think is a good job. so, this is according to research done by u.s. news and world report early in the year, we know that the job market is relatively tight still, but what are the top jobs where do you want to work in 2023 it turns out there is a plethora of factors the ones we want to focus on for this particular study revolve around things like work/life balance and what not if you look at the criteria, they are important you see median salary, always something to consider, how much money are you going to make.

and what the unemployment rate is just how stable are our job could be and the expected growth will we see more people entering the field, will we have more people populating that kind of industry and then the stress level. we want to find that balance, right, we want challenges, but not so much as to overwhelm us and then the last criteria there, that work/life balance, that's so important. among the top ten we kind of put up the top five over here. number five goes to information security analyst number four is a physician assistant. number three is a medical and health services manager. number two, nurse practitioner i've seen a couple of those this past flu season. and number one, a software developer. if you kind of take on balance, those particular criteria, those are the ones that kind of factor into this particular move here and that's the reason why a lot more people are emphasizing the work/life balance as opposed to just straight up, hey, here is the money, here is where i got to make it and this is what i got to do. >> these are high skilled jobs,

though these are not just come in off the street out of the cold >> no, no. >> and become a physician assistant. >> no, for many of these you need a bachelor's degree at the very least, but don't need to be a ph.d. or md to be a nurse practitioner so you can get that experience for healthcare and what not, but don't necessarily need an advanced degree. what is curious about this, though, if you look at some of the other top jobs out there, number ten is actually a per se dentist. so one you actually need an advanced degree in medicine to do those types of things >> the other thing that strikes me, a lot of the jobs you can't work remote. we look at different surveys now what candidates are looking for, they want jobs where you can work from home can't do that for a -- maybe you could be -- you can't do that for a nurse practitioner, all the rest. >> so here's what i would say. i looked at the top ten. and i put the rest of the top ten on my twitter feed because we couldn't put them up on the wall all top ten are in there theme matically speaking of the top ten, five are in

healthcare-related fields. four are in technology as we see up there and there is one in finance. a financial adviser type that also makes the top ten. >> i had some interactions with the medical establishment and mine have been all telemed lately there is a case where -- that person was at home, i think. >> i've seen a nurse practitioner more than i've seen a doctor the past two years. >> good to have you back >> dom, thank you. >> thank you for watching "power lunch," everybody. >> "closing bell" starts right now. modest gains for the major averages after an up and down session as investors look ahead to inflation data thursday and bank earnings later this week. this is a make or break hour for your money welcome, everyone, to "closing bell." i'm sara eisen look at where we stand broadly in the market. higher on the dow by 90 points, higher today up 151, the low of the day was down 95. visa, goldman sachs and amgen adding the most. the s&p 500 is up .4%, driven by

communication services some of the media names bouncing back str