and relatively speaking, that's a stronger performer >> and the beige book reports show the activity flat consumer spending up a lot the soft landing versus recession. >> nice to have you back >> thank you >> thanks for watching "power lunch," everybody. "closing bell" starts right now. >> stocks pulling back sharply, with indexes not far from the session lows the nasdaq on track to snap a seven-day winning streak this is the make-or break hour for your money sara is in davos, switzerland. the nasdaq is still slightly outperforming. you see the ten-year pressurery note, making new lows, below 1.4%

inline with the s&p at the moment check out the s&p sector heat map at this hour pretty much everything -- absolutely everything is red right now. interestingly, consumer discretionary is not really the locus of the weakness. weaker retail sales was one of the reasons we're down today communications services and basic materials, materials finished strong, gives some back signs of optimism from davos an interview with a pair of ceos, with a ros rosy outlook. first, a sitdown with ramone laguarta, on the one indicator that is giving him open. and ceo bill mcdermott and why he is optimistic about 2023. let's look at the s&p 500 and where today's pullback places it. it's essentially unwound a few days' worth of upside. we were up 4% in the first two

trading weeks of this year on a little bit of a run, since right before christmas this is that area we spent a lot of time at, 3,800, throughout the first half of december so far, that seems safe. look at the early december highs. 4,100. we're at a little no-man's land, between the support levels and what would be the levels that would mean some kind of escape velocity by the downtrend. look at the u.s. dollar index, too. this is one of the macro gauges that is trending the other way a pretty big peak. this is a two-year chart it takes you back to springtime, basically. a huge run, as the fed started hiking rates the u.s. seemed like the beacon of growth in the world and a big unwind as you had a series of cooler macro data coming out investors keeping a close eye on a number of economic releases.

for clues about the fed, steve leashman has what we learned so far today. steve? >> yeah. haven't learned good stuff an ugly series of economic reports, suggesting an economy that's contracting and a beige book that acknowledges growth is flat across the district economic activity was unchanged. there were slight increases. six said there was no change and one had a significant decline. that was the district of new york little growth was expected in the month ahead. consumer spending up slightly. some retailers said high inflation, reduced consumer spending the pace of price increases does appear to be slowing on the ugly economic data, retail sales, 1.1% worse than expected. gas station sales fell sharply because of lower gas stations. you had declined in autos, food, drink accompestablishments

the ppi, the wholesale price index, falling more than expected delclining 6.2. take out food, energy and trade. it was up 0.1% and industrial production, maybe the ugliest of all, down 0.7% with a massive decline in manufacturing output fed officials noted progress on inflation but continued to call for rates to rise above 5% what happened here the gap between the pricing of the market for year-end 2023 and the average fed forecast, it widened. it's now 79 basis points equal to the highest gap we had since the fed hiked rates in december markets continue to expect rate cuts this year the fed insists it's going to hold rates at a high level the data today, lending support to those thinking the recession could be in the offing but fed officials continue to say, michael, that is not in their forecast >> yes and to be fair, it is not quite let the consensus among

economists maybe it is inching in that direction. and the bond market response to this was pretty profound as you've been tracking for a while, fed still holding to this idea that they're going to target above 5% on the fed funds rate while the ten-year yield, is a full percentage point below the fed funds rate sending a clear message. the fed thinks inflation was last year's problem and now it's about risk to growth where do we see the argument going from here? what's the market expecting just in two weeks from the fed? >> it's interesting. the market, it's like saying, you're going to do what when if you look at that tenure i was looking at it today, mike. when fed chair j. powell gave his speech in jackson hole, you were about 3%, 3.05% on the tenure he was able to ratchet up rates to -- 4.70%.

only about 20 or 30 of that jawboning from powell, along with the higher rate, is left in the market the market and the fed continue to go their separate ways. and it comes down to a difference for the outlook for inflation. i think the market understands the fed's reaction function. and only one of two things can happen, mike, which is either the fed eats a little crow, reduces its forecast, comes to see the world the way the market sees it. or the market adjusts to the fed and that latter alternative, that latter outcome, is going to be, i think, painful here, if you think that you see the two-year has to rise um p near . stocks have another leg down >> of course, the fed keeps pointing to the other part of the mandate, employment. that hasn't budged just yet. if they are benchmarking the risk of the economy on the labor market, they're not going to find a lot of room for a lot of turn >> it's the only thing that hasn't turned yet, mike. and that's why guys like mike

england from action economics, he says everything is in place now, for the nber to meet and call a recession, but the jobs decline. and he expects that to begin to happen this year >> interesting moments steve, thank you very much while the weak economic data out this morning could be a sign that a soft landing remains possible and according to goldman sachs ceo david solomon, those chances seem to be increasing. >> i think the sentiment is softening a little bit and the view that the chance of a softer landing, in the u.s. and europe, is increasing. our economics team has been pretty soft landing over the last six months. i was in a position -- because i was talking to ceos who were more cautious, that i was more uncertain. but i see ceos softening a little bit >> let's bring in paul hickey from bespoke investment group. defining a soft landing is in the eye of the beholder on some level. one of the bigger questions

might be, what is the market currently, seemingly positioned for? does it have a hopeful, implicit message about earnings being able to hold up? or will it be a harder landing so far >> the market is definitely taking a more cautious approach, which, the fact of the comments this morning, that, you know, he was saying that inflation is not going to fall as fast as the markets expect you want to defer to the market, rather than any individual, you. and the market is telling us that when you were steve were talking about, the ten-year, 100 basis points by the fed funds rag rate and the three-month yield it's only been this inverted -- it hasn't been only this in inverted, less than 2% of all trading days throughout history back to '62. it was during '73, '74, and '79,

'81, that we see more aggressive yield curves that's a concern the weaker-than-expected ism reports, the services report, that kicked off this rally a week and a half ago, that was thought of as a good thing weak economic data, maybe taking the fed. now, we're seeing too much of a quote/unquote good thing, as we've seen as steve says, ugly data this morning. so, this is the concern, the more positive aspect of things is there's two things that are different here you touched on it earlier. employment has been holding up when we are seeing the weak ism ratings in the past, employment has always in the past turned negative and we're still at plus-200 monthly prints for the last two years. that's an optimistic and overall, consumers have more money in their bank accounts right now. brian brought that up on the

conference call last week, that that's cushioning the blow but the fed waits until we see negative prints on employment, and the hopes for a soft land willing be pretty much exti extinguished >> in that context, paul, we saw a big push into risk assets. markets performed very well, broad rally first couple weeks are earnings achievable? and that support the market while we wait to see if the landing is soft or not >> so far, what we've seen is the result, we've seen just since the banks kicked off earnings it's a small sample size less than half of economies have exceeded eps forecast. and barely more than half have exceeded revenue forecast. that's a really low number the positive side to that aspect is, the fact that we've seen the markets hold up, up until today. we've seen relatively good performance, even from the company's reporting. that lends credence to the idea that the buy side was ahead of

the sell side, and had lower expectations analyst sentiment, into this earning season, like the last two earnings seasons, was very weak we've only seen a handful of other quarters that saw weaker sentiment. when you have the low bar set, you tend to see strong performance. your point -- go ahead >> we have to run. but it seems like the market has been a little ahead of the consensus and maybe even, you know, where this whole economic debate might be right now. it's going to lead at some point. we'll see if that point is now, paul appreciate the time. we'll talk again soon. >> great thanks talk to you later. after the break, a rare interview with the ceo of one of the world's biggest consumer companies. we'll hear from pepsico bass ramon laguarta why he is more optimistic about the consumer after his conversations at davos, than when he arrived.

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breaking news on the fed steve liesman is back with the details. >> philly fed president patrick harper saying it is appropriate to raise rates, federal reserve interest rates a few more times. he says 25 basis points is appropriate, going forward says the days of 75-basis point hikes are done he expects to hold the policy rate there, during the year while the fed continues to shrink its balance sheet the goal of the federal reserve, is to slow the economy modestly,

with supply. he's seeing unmistakable signs of a slowdown. housing, the economy, he says, remains relatively healthy he expects modest growth and he is not a lot like other fed officials. he is not forecasting a recession. he expects a slight uptick he calls it slight, uptick to 4.5% the current rate is 3.5% he sees americans continuing to spend. starting to see inflation come down and supply chains healing a fact that was noted in the base book that we talked about inflation at 3.5% going down to 2.5% it will take 2025 to get to the fed's goal he is concerned about commercial real estate, specifically office space. one note, it's an underrated advantage of the fed they are fighting inflation with the labor market in such a healthy state. that's the way the fed looks at

things >> pretty consistent with what we're hearing. the down sconsumer as december d november sales and sara sat down with ramon laguarta and she asked him about the global consumer. >> it's interesting. there's one macro debate and one micro debate that's what i'm seeing in davos. macro debate is a lot more negative than the micro debate my colleagues are surprised they are doing better than they thought. and actually, this is a case for many of the people in developed markets. there's going to be a difficult 23, a lot of honest things

that's something we've learned in the last two years. something we need to expect for the unexpected i'm seeing more optimism that i had before coming here to davos. the consumer is -- there's little unemployment when you look around the world. there's low unemployment that to me is a very positive. what i'm seeing, we're having good harvests across the world that would also have a positive impact in the economies. we're seeing china opening to me, that's a positive i think we'll see. we're starting the year with some kind of degrees of gray but i'm seeing optimism in a lot of the people i'm talking to >> any big distinction in terms of the health of the consumer between u.s. and europe? your two big markets >> probably the european consumer is feeling more the cost of living adjustment than the u.s. customer. the good news in europe, is energy prices have gone down, as well we're seeing some consumer

optimism around energy prices going down there's obviously the big impact of the war, they're closer to the war in europe, than we are in the u.s but i would say, the unemployment levels, i'm seeing in every country and the u.s. at all-time lows. countries where i come from, spain, historically high unemployment levels. and it's very low levels today to me and for the categories with the mainstream categories that are bought by everybody around the world, unemployment is the critical factor and so far - >> as long as it's low >> it's very low people have jobs and people have multiple jobs. they're strategizing around the budget what to buy and where to buy those are the categories we're seeing they're resilient. we're seeing growth in the categories consumers engage with our brands that's positive.

>> you're pretty defensive, in times of downturn. people need to eat and drink how do you characterize your fort fo portfolio >> our categories have been resilient through positive economic times, negative economic times there's different reasons why that happens consumers make adjustments they socialize more at home. we're normally preferred in that occasion people look for affordable treats we're part of that we're seeing positives in that change we feel good about our categories we have a lot of knowledge how to make our brands affordable in difficult times. give consumers entry points and ways of continuing to be engaged with our brands, in spite of a tighter budget >> affordable maybe. but less affordable than they have you have been seeing double

digit price increases. is that still happening? >> it will not happen. obviously. >> it will come down >> the way we approach the inflation was very clear he wanted to put consumers at the center of any decision that we're making we wanted to lead with efficiency and cost control. that was our first go-to i think our productivity was very strong this year. it was because we were continuing to be very strong and obviously, we had to price -- the way we price it, is having consumers at the center, affordable ways to stay in our brands >> at the pricing story, we're trying to figure out what's happening with inflation and food inflation has been stubbornly high, in particular what's the outlook there >> i have been talking to some of the big agra companies in the market there's good news in that crops are much better than last year

we will see better prices. >> commodity will go down. prices are stabilizing at the levels we should see a decrease in commodity costs. the labor market gives me optimism wages go up. unemployment is very high. probably labor is going to be the biggest source of inflation, versus commodities probably going down we'll see bottlenecks in transportation some key elements might have inflationary trends. but commodities, a big part of inflation in the past, are going down >> if pricing comes down, the story becomes margin preservation on wall street. and there's layoffs in

corporate. what is the story when it comes to cost cutting and belt tightening, and yhow much you'r doing and expecting? >> if you put the consumer at the center, we have to minimize pricing and maximize the things we can control efficiency is one lever we can control. i would put that in the context of, we are trying to make pepsico more agile, more flexible, throughout the company. and some of the changes we're seeing and some of the layoffs that became public, that were very small, compared to the 300,000 employees in the company. we're continuing to transform the company to be more agile, more digital, more efficient, than in the context of massive fixed costs and transform, than in our case, is more of an ongoing process. >> we could see more of that >> every year. >> not on a wide scale >> every year, we do adjustments of our cost structure. the adoption of technologies or

thinking the company, again, with the principle of becoming a very agile, flexible company, that is strong at the local level. you see, we have to continue to be looking at the external market the external market is changing every day. our companies need to become much faster, more fluid in the way we allocate resources all the time it's a reality of external world. >> and more sustainable, that's front and positive for you we're talking about the idea that you're going to put it in everything you do. in the farming to the packaging. where do you stand on progress at this point? >> we talk about a year and a half ago, when we launched i think it's one of the -- it's clearly at the center of our strategy it is how we think that we can create value, and continue to be a high performing company. in the last year and a half, i'm super happy the way the company has embraced and adopted this. i've been traveling in asia and i was in saudi arabia a few weeks ago. and our employees have adopted

their way of thinking about how they're going to create value for the company. i'll give you examples of how we're progressing. if you take the u.s., one of our biggest markets, lays, 100% of our potatoes are sourced sustainably. our modesto plant has reduced gas emissions by 90% in the last two years. a massive change there we have plans in the system that can produce potatoes with zero fresh water consumptionfor 150 days they've been running the factories 150 days with no water. we've been testing biodegradable packaging. we have now new vehicles that will have low emissions or zero emi emi emissions, as we transport the product. >> the moves that you're making, are they inflationary? >> they will be inflationary in the short-term we can make adjustments. long-term, and we just had a

meeting with a partner in the area of recyclable plastic if you think about how i see our beverage for the future, they will be nonsugar hopefully 100% of the business is nonsugar. >> even drinks >> yeah. >> nonsugar. that's what we want to do. 100% nonsugar long-term and 100% recycled plastic >> zero sugar pepsi replaces pepsi? >> ideally, long-term. that's the vision. i was referring to the plastic cost nonsugar is less cost. that's positive for us now, recycled plastic is more expensive than virgin plastic. if we can lightweight our battles, the net of this is zero so, we can have more expensive but less plastic per bottle. that's how we're thinking of the future of the categories our vision is we can have a

positive portfolio with very similar costs or maybe incremental costs that can be absorbed within our full cost structure. this is how we're thinking about -- >> it doesn't have to be permanently inflationary for consumers. >> if you think about electric vehicles there's a cost what we're doing with tesla, there is a cost for pepsico, being a mover in that technology i think we're willing to take that cost because we'll help reduce the cost of the vehicles and it will be good for society and good for pepsico we'll have, you know, new ways of supporting our products with zero emissions at affordable casts for the company. that's how we be prime movers and leaders. we want to be leaders in some of the transformations. it's our responsibility being a large company, that operates globally it's good for consumers. it's good for the people good for the communities and it will be good for our stock price. >> pepsico stock price is up

roughly 58% since ramon laguarta took over in 2018. and outperforming coca-cola in that time. more from sara from davos, interviewing bill mcdermott. the dow is down 1.4% and bumping around the lowest of the day. s&p 500 down 1.2% also near the earlier lows microsoft says it's laying off 10,000 employees accelerate we'll talk about how microsoft's ai investments could be involved in the decision. "closing bell" will be right back [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪

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cloud software stocks are underperforming. up next, ceo bill mcdermott on

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indexes slipping to the lowest of the day. the dow down about 535

and the s&p down about 2%, where it was trading a week ago today. the nasdaq, in jeopardy of breaking a seven-day win streak. tech is one of the better sectors. sara eisen sat down with bill mcdermott. she asked him about the state of i.t. spending. >> if you think about digital transformation, which is the business we're in as service now, it will grow eight-times faster than the economy. this is one of those very special marketplaces and we're very optimistic about 2023 >> so, no recession for i.t. spending >> not a chance. >> what about in general for the consumer you're not seeing companies pull back >> the consumer is obviously under a lot of stress. you know, if you go down in the value chain. especially if you look at retail as an industry everything is value for money. from the person that is driving

an uber, all the way up to the ceo that's running a bank. it's value for money and everybody has to optimize the real solution and the real impact to the consumer but i do believe that i am slightly more optimistic than most people. >> some of the tech executives have been, which surprises me. that's the area where we've seen belt tightening, layoffs and one of the competitors salesforce, is cutting is that what you're doing? >> we're hiring. we've become the end-to-end transformation it's about the employee experience how you service your customer. and how you build new applications on a pmodern platform to innovate and change the world. >> what is happening in the broader cloud industry is it a giveback from overturning and overcapacity

during the covid boom? >> you have to run a great company. i think a lot of companies were staffing up on the prospect that growth would continue and that would be a paradigm that went on endlessly. we took more of an intention approach because we are grgrowi through organic innovation we prefer engineers that build the software on our platform and we have professionals that team up with our partners to grow a great business. and we were intentional then and we're intentional now. but we are hiring. in fact, we added about 12,000 people to the payroll through covid. and every one of them is gainfully employed >> you're hiring the people that are laid off at other tech firms? >> we continue to hire the best. we don't source from other companies. we don't have to we're admitting 1% of the actual people we interview. that's not counting all the

resumes that we get and the people that are interested in being in servicenow. the best people want to work for the best companies, that have the best competitive differentiation, and a culture that wasrmultipl s compressed we are growing in the rule of 6 i'm unaware of others doing that >> you are have seen leader cycles what does this remind you of >> it's nothing like 2008.

and it's not like the dotcom bubble bust. this is a moment in time where they are doing a great reprioritization customers are sitting down and strategizes and saying what are the platforms that matter. we're not going to invest in something that is not a platform that matters so, when things were going great, people would have two, three, four of similar things. now, they're saying, i want the one winner in a category. and everything else is going to lose and that's what's happening. the great reprioritization >> how about you in your own investing? how are you feeling about acquisitions values have come down in the cloud sector >> they have, sara our strategy is clear from the beginning. we're growing organically. we recoded to the now platform we never will pass tech debt on

to our customer. our strategy is different. we like to think that we're playing chess and other people are playing checkers >> what does that mean for deals? your holding >> we're not interested in deals, you know, because we don't need them. that's the big thing >> we'll have much more from davos tomorrow sara will discuss the outlook when she spoke with ken moelis here's where we stand in the markets. near the lows for the day. 3933 on the s&p 500, down 1.4% the dow, the underperformer today, down 1.6% coming up, asset manager tells us which retailer she thinks is a bargain right now.

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s&p down about 1.5%. the dow down 0.75% we're going to have more on the late-day sell-off when we take u si t mkezo, next 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. i am here because they revolutionized immunotherapy. td ameritrade. i am here because they saw how cancer

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we're going to break down the trading day. and meg terrell, on oppenheimer and tim moran on microsoft we have a late day slide, barb we're hitting three-day, four-day lows. we're getting a jump in the s&p the first couple weeks of the year was that just a quick snapback was the market correctly sniffing out a benigh economic outcome to the soft landing outcome? >> a couple of things going on everybody still does have ptsd from last year how many false starts did we have there's a difference this time we have more inflation data that's come in for instance, you saw the ppi number it was slightly better inflation coming down. last week, we had the cpi for a sixth month in a row, showing inflation rolling over we had a set of new economic indicators, adding to the increasing weakness we're seeing yesterday, it was the empire state index, which was down

dramatically and that's a precursor, a lot to the ism number, due to be reported in early february and you saw manufacturing down this morning, retail clearly, there's continued signs that the economy is weakening. that, of course, raises hopes, as inflation comes down that the fed will not be as aggressive in their policy, despite what fed governors said today or fed presidents i think that's the market is really cautiously -- there's more data. and inflation can be tamer and you have full employment wages are softening but not contracting. i think it's a got start you don't chatsse it here you have to be patient and watch. >> a wait and watch scenario here let's get to moderna the race for an rsv vaccine is on its experimental vaccine proved effective in a clinical trial. and it would apply for u.s. regulatory approval in coming

months and pfizer developing its own rsv vaccine, that's under priority review with the fda moderna and pfizer ceos sat down with cnbc at davos earlier >> we're starting phase one for the vaccine in january 2021. just after the covid vaccine was approved we're announcing phase three >> we're going to submit it. we're going to get it when the fda will provide approval. we have priority review because we have a strong data set. and there is not any vaccine >> meg, tur how big of an opportunity is this? how big are the products in terms of uptick? and how close are we >> we're getting really close, mike it's amazing rsv contributed to the terrible winter, respiratory viruses we

had. morgan stanley estimates this could be a $10 billion market in adults alone in the united states by 2030 of course, there's a big market in children with this disease, as well and these companies are working towards getting to younger age groups pfizer is looking at this in pregnant women to protect newborn babies i important indications. the first one from pfizer and gsk get on the market later this year moderna close on their heels in 2024 >> it's impressive, the speed that this is happening barb, you were involved in moderna. what's the thesis you have around that one? >> it's interesting, mike. i did not buy moderna during the vaccine race for covid it was one of the things where it seemed to be a one-time effect the stock was expensive and get getting more expensive they had the news in december

about the joint effort with merck's etruda it's a phase "b. but the fact it showed a reduction of death and recurrence of melanoma of 43%, showed the potential of the mrna platform for many more products. to me, that's a real potential this could be a huge stock it had a big run and technically, it's expensive. it's one of the things you don't look at the p/e because this could be a stock over time >> 9% off its high meg, thank you very much for that microsoft, meantime, the latest tech company undergoing layoffs. confirming plans to eliminate positions to a weaker economic backdrop microsoft joins amazon and meta, among others tightening costs. tim moran of oppenheimer joins us now it's a buy rating and a $250

price target tim, to some degree a lot of the companies seem to be doing deferred cost maintenance. they bulked up a lot during the pandemic what does it mean for microsoft for the future for the financial performance? >> we think it's cyclical. l longer-term, they have a massive growth story they're huge investors in a.i. we think it could be just as transformative as the iphone was 15 years ago, or the internet 25 years ago. they're in a position to dominate that. they're continuing to invest longer term. they are investing in data centers. and you got to remember, they tripled the headcount in the last seven, eight years. we're only looking at a 5% reduction, which i'm sure there's a lot of excess in the company. this makes a lot of sense. >> certainly, the stock became stoutly valued at the highs and the premium. where are we going to see the

a.i. efforts in terms of microsoft businesses will it be internal productivity at microsoft or more public facing products that will catch on, do you think? >> we think they're going to create a platform and open this up for anyone to use and if they do that, they can kind of get the cycle going. the more users you get on it, the more applications and improves because it's self-learning in a lot of ways clearly, they will try to make teams the digital assistant for the business market, which could be an incredible game changer. at a minimum, what we see out of chat, it's improving programmer productivity by 50%, maybe in some cases 100%. this will be a game-changer for writing programs they will use it to improve the products across the board and integrate the products a lot more it's a combination of everything, really >> got it. just in terms of how the stock is situated, it was pretty expensive. it's still 24ish-times forward

earnings it's not expected to be a fast forward growth for them. longer term, is this going to be a decent level to own it >> we think we have the '24 calendar year, close to 22 we like to buy it 18 to 20 times. we think the grow earnings in the 10% to 15% range you have to remember, you have the optionalty of a company that can dominate artificial intelligence, that's is the growth the next decade we think globally this is a game changer and a massive productivity improver. they can dominate it >> yeah. certainly a new leg to the story for microsoft, fundamentally see how that goes. thanks very much appreciate the time today. stocks are hovering near the session lows the s&p 500 down a percent and a half barb, you said it's not a place to chase it. does that mean you will be looking to add exposure here and

there, as we go along this year? thequestion is, in what parts of the market do you think opportunities are popping up >> mike, that's the question you have to be selective there's sectors that you need to be selective and the recent comments at davos, this could be a game-changer people are deeply skeptical about the chinese political situation that they can turn on a dime there's a lot investigating, whether it's materials, industrials that the companies can benefit. in the u.s., one thing i will talk about is walmart. you look at walmart, costco, or unh, things that will do well in a possible recession nair environment, even though consensus is a mild recession. the outcomes are so wide we don't know. the effect of higher interest rates, et cetera i'm looking, i have been adding to names like walmart. walmart is a classic defensive play i mean, it has done well throughout many recessions

and weak economies and the company is even stronger today. they have a superb management. they're the largest company in the world by revenues. they're the largest by far in grocery in the u.s they have not rested their lawyers. they have continued to you the omni channels. you see that in the last quarter numbers. sales up 8.2%. even though the stock is not cheap, it's not expensive. it's in line historically. 15% upside longer term, this will continue to be a winner >> yeah. there's no doubt, you always have to pay up to play defense in environments like this. does that apply to other areas outside of walmart for you >> well, i'm not chasing the consumer staples there's been a big run there even though i think if you own them, they're a good, safe place to be for now. if they are dividend providers, which is also walmart, by the way, a 1.5% dividend names like coca-cola, seeing

great growth a lot of names to be in. i would not be initiating new positions. the beaten-down growth this was true last year. we had a whiff that inflation was cooling. the fed might pause or do something positive, the growth stocks took off. that's part of the interest rate situation. but also because they've been so beaten down. so, i would continue to look in there. and i've been adding meta, amazon, these kinds of names >> barb, appreciate the time today. talk to you soon >> thanks, mike. s&p 500 down 1.6%. pretty much at the lowest for the day. we're going back to early last week levels. it's been negative strong breath to start the year. today, giveback there. you have 4/1 declining to advancing. volume, massive rally in the band market after the soft economic data. the treasury down to 3.37. and down massively inverted, as well gold has had a good run.

it hasn't been a lot of time above $1,900 per ounce ever. just a few months, about a year ago. then again in 2020 it's backing off from a recent rally there. and the volatility index has perked up. it's above 20. keep in mind, the s&p 500 has remained in a decent range we're around 3,800 for much of december still above 3,900 righ now to "overtime." welcome to "overtime." i'm scott wapner you just heard the bells the we're just getting started at the stock exchange i'll be joined by eric jackson not only believes the tech bounce from the beginning of the year is real, he recently bought a new stock that just might surprise you and we will have details ahead we begin with the talk of the tape out of steam that's how the markets acted today. the pullback, perhaps, pushed along by more fed hawks ta