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hi everybody, and welcome to "power lunch." alongside morgan brennan i'm tyler mathisen a blockbuster jobs report this morning and the markets react with a whimper is that a good sign? the markets no longer fearing a more aggressive fed? we'll dig into what could lie ahead with the economy, the fed, and stocks plus stocks off to a very hot start to start the year. speculative names seeing huge games. the stock has, get this, tripled this year. but is there anything real to support this or could the stock slide back into reverse. but first a check on the markets with the major averages lower this afternoon for the most part on pace for gains for the week the exception being the dow. the s&p is down 1% right now let's get over to dominic chu

and kristina partsinevelos >> we're down. it's been a pretty decent turn around only to lose some momentum you've got shares of american express and caterpillar alongside apple helps to the upside for the dow you've got home depot, honeywell. let's get a check on shares of nordstrom, you can see up d decently the high end department store is target of ryan coen, who is building in the retailer and plans to push for changes at the board of directors level that's according to a report from "the wall street journal. nordstrom stock did hit the highest level since 2016 so, let's head over to chrkrista partsinevelos with a look at what's happening with nasdaq that tech trade is a big focus

for investors. as of yesterday's close, the nasdaq is up 16.5% that's the best start of the year since 1975, the year the who split up it's also on a 5-week win streak, so not all bad news. and we haven't seen that kind of action since november 2021 let's talk about those big tech earnings that we had yesterday apple shares are about 3% higher right now, turn around from earlier losses after missing estimates. amazon's aws growth slowed more than expected. shares are down 7.6% you've got alphabet's google revenue coming in light, shares 2.4% lower at this moment. morgan >> kristina, thank you it could be or should be the worst nightmare, the jobs report coming in scorching estimates across the board -- compared to wall street's 187,000 estimate this should be a sign that the fed might not be cutting rates

any time soon. markets don't seem to care too terribly much. let's bring in mike santoli to discuss. mike, i say that noting that we are lower right now in the markets. but the fact that this report was so strong, unemployment rate actually ticked lower. the response here, why hasn't it been worse >> well, yes definitely worth asking that question just because we're conditioned to see such a dramatic show of unexpectedly good news to translate into a rougher time for stocks. and we are still in the s&p 500 well above where we were above that fed decision on wednesday so, that's a good benchmark. a few things we could point to, a perceived fluke factor in the beat on payrolls, not to say it's all seasonal adjustments or it's all one-off factors, whether it beillness or other things it just seems that it's a little bit high yes, it reinforces the idea the labor market is tight, but not necessarily something we can plan on this being the pace going ahead from here.

the other part of it is what jay powell did on wednesday was in part to delink the unemployment rate from immediate fed policy decisions. in other words, he didn't sort of say, we're targeting a certain amount of unemployment before we think the job is going to be down against inflation and the wage growth performers were pretty much as expected and pretty much on trend where we've been in the last few months. that's moderately encouraging, i would say. the final piece of it, morgan, i guess is, this stock market has a little bit of traction right now. get activated right now. and the bond market did not reprice what it expects from the fed dramatically two-year note yield, it did bump higher, but right at the level of two or three weeks ago. not really saying that the story has changed about the expected fed path >> just to factor in the tech piece of the puzzle, the mega caps we've got reporting after the bell, largely disappointing or cautious reports, whether it

was alphabet or apple. last i checked apple was trading higher amazon is 6% right now, and alphabet is lower. but the fact that the reaction there hasn't been potentially stronger given some of the commentary we've got from all three of those companies right now. how does it speak to the back and forth in terms of the rotations we've seen >> well, yeah, that's a huge part of it i would say, essentially, one, they're down a ton from their highs. their valuations are no longer as demanding each of the companies in its own way is going out of its way to make investors say we're getting costs in line, we're trying to figure things out from profitability from here on out so, there were laggards. they actually performed very well this year everything that was blasted out last, defensive stocks have been suffering. i don't know that this is where you want to look to say these are the groups that's going to gather the indexes up for a stampede higher. and also, you know, they're

holding in okay, but they're not exactly getting bought aggressively amazon, alphabet, interestingly, are pretty much down right on the range of what they gained yesterday. >> i was thinking of that as i looked at those numbers earlier today, mike, that yesterday those stocks looked like the golden children of the market, and today less so. mike santoli, thank you. what's better for stocks stronger economy and higher interest rates or maybe a weaker economy and lower interest rates? let's bring in senior investment strategist with edward jones, cnbc senior analyst and co-ceo of capital contrast partners nice to have you in the house. >> nice to be here >> good to have you back what do you make of the jobs numbers today? are they too hot are they sustainable what do they tell you about the state of the economy and what we should expect? >> i think it reinforces the message we've gotten all year in the last month of the year, that the soft landing is still on the table.

with the unemployment landing of 3.4%, a recession is clearly not imminent the other thing that is supportive as well is the wage growth figure. at 4.6% or so, jerome powell told us woenz he's look at three buckets of inflation goods inflation, that's come down housing/rental inflation, that's showing signs of weakening and the wage growth component. that's been a little bit stickier, but we're starting to see signals that's coming down as well. certainly better inflation numbers have been driving this market as well >> ron, walk me through the week as you review it and as you look forward, what did we learn this week about the fed, about the economy, potentially about the future and i'd like to have a comment or two from you about the state of liquidity in the market right now. >> well, liquidity seems okay, tyler. we're not hearing so many complaints about bomb market liquidity as we have in the past there's cash on the sidelines driving equities higher.

with respect to the state of affairs, the rate of wage inflation is beginning to slow it's up -- if you analyze the six-month rate of inflation, wages are growing faster than inflation. so, there's no danger of a wage price. i think the markets seem to be digesting that reasonably well if anybody was in the bond market was losing their minds over inflation, you'd have a much higher yield on the 10-year note than 3.5%, particularly with the fed engaging in quantitative tightening. it's selling bonds and bonds aren't selling to the upside as consequence of this data >> i know it's a down day for the markets, but for the most part it's an up week for the major averages the nasdaq is up since the start of the year. have we moved too far too fast >> everything that underperformed last year is lifting higher this year

that's not only the nasdaq, parts of nasdaq, consumer discretionary up 20%, so back in bull market. we've talked about the speculative parts of the market, bitcoin complex all up 40% plus. so, there is a valid question that investors are asking. are we moving too far too fast and as we know historically, markets don't go up in a straight line forever. and when we move up this fast, it leaves the market vulnerable to down side shocks. what are some of the shocks that could happen maybe it's earnings again. if you look at earnings expectations for q # and q2, back-to-back negative quarters expected maybe that transmits to gdp to some extent, but we're getting an earnings slowdown ahead of us on the good side, when january is this strong, historically, the year does do well as well. as goes january, so goes the year >> ron, let me come back to liquidity for a moment i guess one observation might

well be that one of the reasons we had such high inflation is that we had really high liquidity in the market. we had the federal reserve injecting cash into the market we had the fiscal stimulus coming into the market we had all that spending that seems to ahhave abated a b. we can't get inflation under control until real rates are positive, some say are we there yet yeah, they are and how sustainable is that positivity >> well, i think what's going to drive inflation in the second half of the year -- you know, almost immediately after jay powell said disinflation on wednesday, you had a cohort of economists come out and say the second half of the year we're going to see rising inflation. does it come from? china reopen sng maybe, maybe not. energy clearly not. it's falling amid worries of another offensive in ukraine by russia and all energy components are down sharply this week with

europe having stocked up on natural gas that could carry it all the way through next winter. it doesn't seem to me that many people are thinking about this in a nonlinear fashion there's very linear thinking going on and extrapolating old trends into this year. i don't see any further increases in inflation i don't see any inputs for those. i think to answer the first question you guys raised was i think slightly higher rates in a stronger economy is better than the alternative, which would be a collapsing economy and plunging interest rates. it might be good briefly for the markets but not for the average american >> where would you be putting money right now? >> great question. if we do get any pullback period of consolidation, that is ally the opportunity, especially if you missed the last month of rally, to put money at work. what we say is take a balanced approach, cyclical parts of the market, small caps, large caps, longer trades the value trade with rates this high and not

going back to zero bound, important to have the diversification element in there too. so, use those as opportunities we do think there's a period of more sustainable recovery coming ahead. >> all right mona and ron, thank you for joining us to kick off the hour. >> thank you for more on today's blowout jobs number and what it says about the overall health of the labor market, let's bring in tom ghimable great to have you on i want to get your thoughts on more than half a million jobs added this past month. in a month, i might note, that it tends to be seasonally weak in part because of the weather are you, given what you're seeing at your firm, surprised to see it come in so much stronger than expected >> where are the streamers, the bah balloons, and the champagne? >> the wind balloon is over montana right now. >> it doesn't get any better than this. anybody saying anything other

than yahoo, let's go, is crazy we're seeing small and medium sized companies are hiring as much as they ever have and the numbers indicated that people got scared off from big tech who thought that th pandemic behavior would last forever. and they overhired now we're seeing small and medium sized businesses that have always been the fuel of this economy are going to drive this thing for the next year >> the weekly claims data has not shown any signs of the churns in the layoff sector and big companies. does it speak to the fact that people who are getting laid off are finding jobs elsewhere very quickly right now? >> yeah, absolutely. what small and medium sized companies couldn't afford to keep up with the way salaries mid and senior white collar talent was going when big companies lay off those people, they're able to snatch them up. at the same time, big companies aren't putting a hiring freeze on they down size people. they still have attrition. they're still hiring people.

and they're hiring people at more reasonable salaries is what our research is showing us even though we've had over 4% wage growth over the past year is that it's no longer an employee-driven market when it comes to compensation, and things are becoming a lot more traditional of this is what the job is, this is what it pays, and employers aren't going to be held hijacked by candidates who are such a short supply. we're really starting to see the labor market even out in that way. zblf what you're saying is so crucial to what the market has been focused on. we saw high put rates and we got the jolt number yesterday too with 11 million job openings there had been the sense, at least until recently, that people could leave one job and go to another job and see a significantly higher salary attached to that are those days over? >> they're not over, but it's the way it should be if dwrour the best of the best,

you're always going to have an opportunity to make more money we were seeing the rank and file folks saying, hey, i can do this too, and companies were paying now it's settling back it's saying, wait a second, not only can we get people back in the office, which is happening more and more and more and more every day and every week, but also saying, we're going to pay you a fair wage. if you deserve a raise, maybe we pay that but we're not going to hand out 20%, 25% increases in base salary to people i think those days are gone for people i think to the earlier conversations for interest rates, what are the interest rates in 2004, 2005? that wasn't high i think we're setting into a more normal world and the previous years was more abnormal and we're showing our government and economy can function when

the interest rates are more level. >> 85% of employed respondents considering quitting in six months that doesn't mean they plan to quit it's a fuzzier metric than that, that they would consider quitting am i understanding that correctly, as i simply do not believe that 8.5 out of 10 workers are actively planning to quit their jobs in six months. don't believe that >> correct, tyler. 85% responded that they would consider leaving their job >> so would i if somebody came along and said here's $3 million you know >> well, i think there's got to be some level of perspective and tyler, i'd keep my options open on that $3.5 million. >> make me an offer, brother i'll be right there. thanks a lot go ahead >> i think the number is high, tyler. there's no doubt about it. but what it means is the lack of engagement that exists, especially with people being in a remote work situation isn't as high as it once was. and that people would consider leaving, whether it's a bad

manager, bad company, bad industry and a lot of times, when you have people working together towards a common goal in the same office, that number goes down quite a bit there's a lot more continuity in the workplace. >> and i think you have to say it reflects some confidence that the people feel that they could move on to another job reasonably quickly if they were to leave the one they're in. thanks very much >> always good to be with you. coming up, a couple of heavy weights each taking their shot in upending the pharmaceutical industry the latest on separate efforts by amazon and mark cuban to cut out the middleman. plus we'll get the trader reaction to today's big job report live from chicago we'll be right back. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed.

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. welcome back, everybody. some financial titans are looking to shake up the market for generic drugs. "the wall street journal" highlighting how amazon and mark cuban of "shark tank" fame joining a list of disrupters aiming to cut out benefit managers, a fancy term for industry middlemen, by offering lower cost options at much smaller markups. joining us now is the author behind that piece today. david, welcome good to have you with us i have to tell you that you have delved into one of the most opaque areas in all of health care to me i don't understand how it works,

and i have only the that some of the -- big word here -- opacity is intentional am i wrong >> absolutely. i mean, you're absolutely right. i mean, you think about this industry, right, you've got drug companies that make the drugs. and then you've got to us, the consumers. and you've got people in the middle and the pharmacy, they're in that middle. and they're supposed to negotiate the drugs with the drug makers, get a discount, and then sell it to us at the cheapest possible costs. what's happening is a lot of these pharmacy benefit managers are keeping those margins. they're discounting those drugs and then they're holding onto those rebates. and that's why we're often seeing those high costs. >> so, if a lot of their income stream derives from rebates paid to them by pharmaceutical companies, paid to the pbms by pharmaceutical companies, aren't those pbms then incentivized to

buy and pay for higher-priced drugs because therefore the rebates they would get would be bigger than they otherwise would be >> that's exactly what's happened and sometimes that's why we're seeing the list prices on drugs being driven up so that then there could be a bigger discount that the pbms can then pocket and not pass on to the consumer. keep in mind, this doesn't happen with every drug a lot of drugs do some at affordable prices. but every once in a while, drugs are very expensive to bring up mark cuban's website, what they're doing there is being transparent, showing every drug, what's the price, what's the mark up? and you can compare that to other retail prices and see the huge gaps. >> david, this has been going on forever. we've seen a lot of the pbms gobbled up by insurers as well and the verticals. there's been attempts to disrupt this, regulate this, whether

it's mark cuban's startup or whether it's amazon. can either of these companies have a meaningful impact, whereas no one else has up until this point >> i think that's a great point. you think of the big names that made splashy announcements that they were going to change health care you're absolutely right. i think mark cuban and amazon, they're both doing the cash consumers. they're not working with insurance. remember, as you just mentioned, there's been this vertical integration in the system, and insurers own the pbms. so, they can very easily keep mark cuban and these others outside of this system that they control. i think the difference here is that, you know, employers are taking notice, and employers are the ones who pay a lot of these health care costs. and they can push the insurers and pbms to either work with mark cuban, or, as we have seen in some places, to be more transparent about their costs.

so, united is up they recently announced a tool to allow people to consume insured drugs, drugs that are just cheaper at retail price so, there's pressure in the system who wins at the end is what we're not really clear on >> david, thank you very much for being with us today and for taking on a very important and very complicated topic we appreciate it >> thanks for having me. take care. well, still ahead, we are looking into one startup that's looking to attract a -- of investors. how? by letting iivuandidls buy shares of commercial real estate that's today's working lunch stay with us customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

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welcome back to "power lunch. we are just 90 minutes from the end of the trading day and trading week as you can see, major averages are firmly in the red right now, with the s&p down more than 1% 4135 is level there. we're seeing pressure to stocks, as we see yields to treasuries first to stocks, where what seems like a lack of reaction to the jobs report is actually a big reaction so, let's get to bob for more. hi, bob.

>> yeah, we're at the lows for the day. i still think it's modest given the disappointment in the tech gains and the startingly strong report i want to show you the week in the laggards it's obvious technology still holding up very well who would have thought apple, up 20% for the year, would still be up on the day, even when they had disappointment on their earnings report. that's remarkable. but bank stocks are having a good week. jp morgan is up, am exis up. even intel is up about 7% this week so, tech is strong at the same time, the laggards for the week continue to be the consumer names we had some disappointments in some of the pharmaceutical reports this week, but johnson & johnson, coke, generally have been selling off honeywell a little bit of a disappointment the s&p is up about 1.5% on the

week now we have the fed being done and working through the earnings seasons, the vix has dropped it is rare to see the vix below 20, but we have been there for the last several days. and that's rather interesting. that shows a lot of complacency in the market. finally s&p 500 up about 9% this year and believe it or not, that is the fifth best start to the year through february that has been since 1926, guys, almost 100 years. fifth best start to the year >> thanks bob. thank you very much. we're seeing a bigger reaction to the jobs number in the bond market, so let's get to rick santoli >> you know, big pop on rates when we saw the jobs report. but look at this one-week chart. we're up a dozen basis points on the day. we closed under 340 yesterday. but we closed at 3.5% last week.

we're only up one on the session. the last move was in october when it made a 4.25 high yield close. it's dropped bob just alluded to it not only under 20, it's under 19 it looks like this fed fund futures hovering around 95 even which means they're pricing roughly 5% their low, 90, 46.5% that was pricing around 513 paul, we want to talk to our audience regarding big jobs report what did you see with regard to preparing for it yesterday and what are you seeing today? >> rick, it's been a really interesting week with the uncertainty coming back in the market first time all year really the jobs report this morning kind of runs counter to what we were observing earlier in the week after the press conference. yesterday, record volumes -- >> like record, all time record? >> single record volumes driven

by single stocks >> what did that mean to you how were they prepare sng where did that volume go yesterday >> retail buying was in the big tech that drove price action in the market up. >> and then the jobs report came out. maybe the rethinking your thoughts? >> today is actually much slower it seems like everyone is trying to digest this number. luckily we don't have too much longer to wait because powell speaking on tuesday. that's going to really be an interview that everyone's going to be -- >> turning quite potentially maybe the market and the fed get on the same page we'll see. morgan, back to you. >> rick santelli in the bits love that. thank you. oil trading about to close for the day. it's down more than 2% for the day. let's bring in stevens for more. >> another losing week for commodities. more aggressive action from the federal reserve could lead to

curtailment. eu leaders have agreed to a price cap on russian petroleum products that goes into effect on sunday and is meant to limit russia's revenue without creating enormous disruption in global energy markets turning to nat gas, seven straight week of losses, at its lowest level since december 2020 just looking at henry hub doesn't tell the whole story because california, more than five times the average we're seeing on henry hub. that's because of a confluence of factors, including colder temperatures than expected in california as well as pipeline issues, the el paso pipeline that carries gas from the perm yen basin to southern california still offline. so, higher prices for californians >> quick question on china how is the oil market factoring in the reopening of china? or is it >> i think the issue with that is that it was such a big

catalyst and all they could talk about was china, china, china. we have yet to see the rebound everybody was pointing to 2023, q1, we'll see the demand rebound. we didn't see that now people are talking about the second half of 2023. but there is a lot riding on chinese demand so, all the oil bulls are saying it's coming. but we've yet to see when. let's get to bertha coombs now for a cnbc update. >> here's what's happening at this hour. the pentagon says a chinese surveillance balloon has drifted east and is now over the central u.s. the pentagon is also rejecting china's claim that the balloon is a weather research mission or on a weather research mission and that it has blown off course officials say it is expected to stay in u.s. airspace for several days two suspects have been arrested in the shooting deaths of six people in central

california last month. police say both are gang members, but the motive for the shooting remains unclear the victims included a teen mother and her baby. one of the suspects was in a shootout with federal agents before being taken into custody. and designer -- has died he was known as a rebel who started out using unusual materials, including metal and plastic. cocoa chanel reportedly called him the mettle gist of fashion, dead at the age of 88. >> bertha, thank you very much ahead on "power lunch," caravana nirvana nothing compared to the stock's 200% climb so far this year. ats xt cebk?ng theomac th ine bark-ery.

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welcome back to "power lunch. risk is back in vogue on wall street the nasdaq is up 15% and that's nothing compared to the rebound we've seen in big names like

caravana it's up 200% to start the year keep in mind it is still down 90% over the past 12 months. is there anything fundamental about the company that is leading to this massive rebound? or will this end in tears for some investors let's bring in brian nagel, senior analyst at oppenheimer. brian, too far too fast? >> well, good afternoon. look, it's hard to say you know, i think your opening was perfect because i'm getting a lot of questions on caravana from our clients the stock has essentially quadrupled off of its recent lows but we also have to keep in perspective, this is a stock that was trading $370 back in later 2021 so, it's still well off those highs. but, look, as i think about fundamental -- think about caravana as a fundamental analyst. i don't see much improving for the business right now one of the bigger questions and one of the reasons i'm not recommending our clients right

now is in my mind, there's still what i call significant funding gap here this is a company that will need to raise additional capital in order to sustain its business model. you know, i think to a certain extent, obviously the caravana stock prices rallied with similar-type names, but i think the market is getting less concerned on that front. the capital markets will open, will alaw caravana to garner the cash it needs. it's a difficult stock at this point. >> it's difficult and there's been a lot of concerns around the possibility of bankruptcy, as it has been pinched for cash to your point. it raises questions not only about caravana, about sort of this quote, unquote dash to trash, and some of the other names that have been beaten down, some of which i know you cover, that have been seeing huge rises since the start of the year as well talk to me about peloton >> it's a very similar dynamic peloton, we are recommending i've got a $20 price target. the way i look at these names --

this is a longer-term type approach i take. i think peloton, there's a lot of concerns that are near-term that company is also going to have to raise money. they're fighting now what i think is a rather significant wave of gym goers going back to physical gym lifetime fitness, lth is one of my favorite names here with peloton, i think the clients -- i do see a spot within the broader fitness sector, longer term, for well-run, much more cost-conscious peloton nearer term, it's harder to call because there's a lot of near-term risks right now. >> peloton's future may be in the monetization of its app more than the selling of its gear, if i had to make a guess on that. back to caravana why in the world would it be up four times from its low? what's the mechanism by which

that happens other than irrational exuberance? >> well, i think it's hard to explain. to a certain extent, it's simply a function of how far this stock fell you have the 2022 chart, stock ended '22 with -- the stock had moved significantly lower. and a lot of that was in a very, very tough market against very negative mccarthy sentiment. but really i think the primary concern was is this company going to survive as we look at the market now, this is a much bigger question with rates and capital markets and such the chances for caravann going out of business are probably now somewhat less. that's why i think you've seen the stock and significant bounce off its lows i want to emphasize, it's still well off the highs well off the highs >> we're looking at a chart over the past couple of years it looks like the matterhorn up it goes and then down it comes. and even though it's tripled off

the lows, you can barely detect the move against that matterhornish kind of chart. brian nagel, appreciate it still to come, john fort will bring us his interview with the ceo of the real estate investment cadre in today's lunch.

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making it harder for many commercial real estate investors to make projects pencil out. at the same time, there's opportunity. john fort brings us up close with a founder whose technology is making real estate more accessible and efficient >> that's the idea ryan williams and founder and executive -- of cadre. companies raised more than $130 million and has done more than $5 billion in transactions since 2015 williams cut his teeth at goldman sacks and black stone before striking out on his own he grew up working class in louisiana. he became an entrepreneur early starting a sportswear business on a shoe string when he was 13. his development accelerated when

he got into harvard. the housing crisis had just hit and he saw deals in real estate. >> pitched classmates on buying foreclosed homes in atlanta that i thought were dispriced, in distress, renting them out to people in the community, giving them the option to buy it back, and selling to two or three x-type multiples it became a nice way to have passive income on the side while my day job was doing banking at goldman. we ended up buying nearly 1,000 residential units in atlanta from 2008 to 2011. >> williams' mission is to democratize real estate investing. i asked him about icebergs he's watching out for in this v volatile economy here's what he's making sure not to do. >> we want to scale our secondary marketplace because we're the first platform ever to

build an exchange to let people create stakes of real estate buildings. but we don't think about, you know, redemptions and thresholds on redemptions and guidelines around that. so me it's loosening standards in exchange to try to grow that's, like, the biggest iceberg and the biggest risk that i foresee but it's also one we're all over and one where as long as i'm in charge, will not be the expert that takes us out. >> i checked in with ryan this morning, and he told me the main thing cadre has done since we talked a couple months ago is capped all of its floating rate debt he says the portfolio is doing well because it's tilted toward multifamily, not office. and he's looking to play offense soon in areas like hospitality creates uncertainty, guys. >> really fascinating. i think the point you made at the end there is probably the most crucial, especially for anybody looking to invest in commercial real estate right now, which is that floating debt, which is a big question

mark for broader commercial real estate in general right now. >> important i think to note also, it is black history month. and access to real estate has been an issue and redlining and other things and he's flipping the script >> how does he get what markets he's going to concentrate on >> they've got a very data-focused approach to that, where there are gaps and where he sees opportunities. they actually put out a list of the high potential areas they just sold some office in colorado, right? they're tilted toward multifamily. they just sold some office there at a pretty good price, appreciation-wise for them that's part of what makes this unique there are lots of real estate markets online, but they're data focused in their approach. >> thank you very much appreciate it. up next, bored to tears? deutsche bank downgrading, the stock is down more than 7% we're going to trade that and tomorrow in today's news talk.

welcome back time for three stock lunch sipping on today's biggest movers ford lower on a downgrade by deutsche bank.

starbucks lower after weak international demand hurt its latest earnings and match group is laying off 8% of its workforce. victoria green is cio of g squared private wealth and a cnbc contributor let's start with ford. >> yeah, i'm selling ford. i don't want to touch it right now. i think it's reversing back down to the 11. they're stuck in this operational hell and left $2 billion on the table they'll have more costs with the evs taking price cuts to keep up with tesla i don't think they'll get it done in q1 a sell for me. their chart is ugly. they bounce off a fibonacci level. >> sell on ford. let's move on. what are you seeing in starbucks these days >> starbucks is all about a china story. they had a 29% decline in chinese sales but 30% of their stores in china were closed during that period so i think we'll see china re-opening and

see that pick back up. i think the stock has good legs. it could leg back up to the highs around 126 i think they have strong leadership right now they've got ways of growing revenue. average spend in the u.s. is pretty strong working on keeping a cap on labor costs but i think right now this is a big play on china re-opening and for me i think it will get it done and see revenues normalize and see that 15% growth they want to see. >> yeah, of course, meantime, people will pay more for their starbucks. >> absolutely. >> match -- >> people don't want to pay more for tinder they're a sell their chart is super ugly. their players, they don't call necessary users, declined and they'll see cannibalizer between tinder and hinge tinder still the number one revenue source for them and about to launch a marketing campaign, never done it before could be a huge spend of money with not a lot of pickup match is just mired. their margins aren't as good as bumble high debt load and chart for me, they're pretty stuck right now

so for me i just can't buy it. >> all right victoria greene, thank you. >> i think she had a few more cocktails she would have changed her mind on match group. i don't know victoria, thank you very much. it's time for our weekly tracker and we focus on technology according to track insight net flows were close to flat on the week etfs soared and a general risk on mentality gripped the market. looking at specific funds, the qqq of 3%, communications services secretary spyder and for a great week, it was a great week for arc innovation, up 6% as well. big gains for internet and fintech funds. more information available on the hub. >> the arena group becoming the latest to enlist a.i that's all the rage these days

the company that publishes sports illustrated and other magazines seeing its stock pop today. but keep in mind the market cap is just about $200 million that is tiny "wall street journal" reporting that arena will use a.i. to help produce pieces for its properties including men's journal, one example would be pulling information from its own library for a list of workout tips i guess generated by a.i., arena group saying it is not looking to replace human journalists neither are we and actual human producer in fact did write this script. >> which hasn't always been the case >> yeah. most of the producers here are human. >> i'm just saying you did do an experiment not so long ago >> very interesting. we end the week with the dow down 200 points. it was lower earlier and higher earlier as well. so what do you know we'll watch for the next hour, the most important hour of trading coming

up on cnbc thanks for watching "power lunch," everybody. glad you could be with us. >> "closing bell" starts right after this quick break power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

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your dedicated fidelity advisor can help you open those doors. by working with you on a retirement-income plan designed to balance growth and guaranteed income. because doors were meant to be opened. stocks pulling back today in the face of disappointing earnings from megacap tech

s&p 500 on pace for solid gains. welcome to "closing bell." i'm sara eisen where we stand in the market, lower down 1.16% the only sector higher is energy the nasdaq down 1.6% as far as what's working apple turned around, higher. tesla strong as well amazon, microsoft, alphabet and nvidia holding back. the dow down half a percent as we speak so clearly some weakness but overall, pretty resilient, considering that strong jobs report and a move up in treasury yields, 3.5 is your yield. the key tech earnings movers alphabet lower, off its worst levels and soft youtube ads hurt them, down 3.5%. apple, up 2.4% pretty remarkable comeback, now higher despite a profit and revenue miss we'll talk about all these names in just a bit. also ahead, national economic council director brian deese