hi, everybody. welcome to "power lunch" along side kelly evans i'm tyler mathisen who's right about inflation? markets rally because markets

think it's slowing jay powell kind of agrees but ceo of nestle says more price hikes are coming. stocks get off to a hot start. a repeat of meme mania jumping in on speculative names. latest who is trading. first a check on markets down across the board well off lows dow down more than 230 points noun only 30 trying to make a turn positive. >> mike santelli watching it all from the new york stock exchange good afternoon, mike. >> hello tyler yeah half percent decline in s&p 500. put it the in perspective where we've been so far year to date, modest s&p down now about 2% or so from intraday high a couple days ago. trying to contend with implications of a hot job number friday yields and dollar higher declines in dollar as yields tailwind for stocks. market overexcited in more

aggressive colonels o scorners . russell 2000 and semiconductor index moving in sync with priv lent declines big out performers people rush to grab on to exposure to higher risk, higher bid areas of the market. >> come along, happens often last shall be first. last year's loser become at least out of the starting gate this year's winners? >> yeah. without a doubt. that is actually the classic definition of the january effect, which is just kind of reversion of prior trends. it has been amplified this year, though i think because of extreme level to which most investors are defensive and expecting a bad first half of the year so created a lot of force repositioning once the market actually started out to the upside and maybe that soft landing idea became a little more priced in. >> anything else as we await chair powell tomorrow >> i think the key is how the market contends with these

tests. bears all last year were able to say, look, don't fight the fed don't fight the tape right? fed tightening slowdown. tape in persistent downturn. fed acknowledges inflation getting to end of where they're going probably and writing the tape, not bullish. turned that trend somewhat broken tentatively to the upside. in the zone of a new trading range and key an eye on volatile parts of the market so outperformed they're not leaders of the next real uptrend but not unusual for them to get one of these really ferocious bounces in here. see how the overall s&p. settle on this pullback below, i mean above 4,000 it's okay. >> mike. thank you. michael santelli. and key overhang for every market move, inflation there you are. supposed to look over here

showing starting to slow inflation that is. jay powell using the word "disinflation" during his press conference last week ceo of nestle says that company will have to hike prices more this year. plus target and others reportedly pushing suppliers to lower what they are charging bring in steve liesman for more on the sort of murky inflation picture. what are you seeing, steve >> not surprised to hear what nestle is saying companies stip raising prices this year. some playing catch-up. some of those. in preparation i looked for a particular index they have in the national federation of independent business, looksality small business and intention to raise prices's down from the peak but still elevated relative where it was still going to be companying coming along kelly and i had a nice discussion last hour that needs to be brought up the following-ish -- profit mars

one of the things companies did, tyler, in run-up with prices a raised margins or prices more than their input costs big debate about why that happened there's the greedy corporation debate and there's the prudent corporation idea, which was that you tell me if you have, you know, $4 gas in the ground, and your gas station, are you selling your gas for $3.80 or $4.20 because the think the next tank you have to fill is $4.20 a paper out says, companies raised prices more because they were anticipating further price increases down the road. whatever the case, there's scope for those margins to come down and saying part of the inflation problem are the, is the profit margin problem okay now when i listen to target i take that idea and plug it into that theory and say, okay. what has to happen is, the companies got to pressure manufacturers back up the chain and that can actually help

inflation down the road. that pressure with a big caveat, asterisk, circle it, make if red, how competitive are the markets talking about? if target is not feeling the competition from other people or from consumers, that can't buy, it's not pushing back on suppliers. if it is, it will, that's part of the process. >> remember the story? whole foods pushing back on suppliers. >> positive for inflation story. >> especially. a segment of the market less price sensitive than some lower end absolutely. >> are we seeing -- there are certain kinds of goods, and i guess services as well, where you don't merely see a reduction in the rate of inflation, but you actually see price declines. it has happened in gasoline over the last year. one can hope it may happen with grocery products like eggs. >> beef with tyson thissing morning. >> right if the market is competitive go back to normal profit margin. first thing i learned in

economics higher than normal rate of return shall not stand in a competitive market. making five and can be made pay for three, then somebody's going to do it for three the question is, there are -- >> profit? >> return, real return i'm talking. there is work done to suggest in this economy it's less competitive than before. that's really why globalization is a big story here. are we going to feel the competition of global suppliers or not supplying globally to us as well b big questions to figure out. coming back to a question we keep coming back to. has the pandemic altered supply chains and ply routes? may bring it them to make it but may be higher pricing. >> a quick postscript to all of it least competitive segments, education, health care, those types of things, also the ones we're seeing so many price pressures even now show the doctor's office,

additional surcharges things happening you're seeing that wage pressure pass through even with everything you're describing it may be there's this segment of the market most's consistent sort of 4% 5 percent upside pressure? >> 100% right. parts of the market more competitive than others. you have to haggle >> can't do that. >> some we don't go to the doctor and say, you know, i'm getting a $15 co-pay down the road would you do $10 that's not how we do that. by the way, bought a car recently didn't haggle. which i kind of like except for the fact, haggle on price of the used car trade-in but didn't haggle on the price found a car, bought the car. that has to do, by the way with yore expect a i find most interesting part of economics but also the most boring inventories. inventory levels will determine pricing. >> yeah.

>> not buying the car on the lot. buyings car on the way to the lot, in the manufacturing thing and that's where you get pricing power. >> did the same thing. bought a car recently. the price was the price. price was the price. >> found it guy, nice to sell it to you that may change. >> yeah. >> absolutely. steve, thanks, pleasure. tomorrow before we hear from fed chair powell we will hear from minneapolis fed president leo kashkari at 6:30 eeastern, 6:30 a.m. eastern, folks and speaking of markets wrestling how the fed moves rates going forward, our next guest shifted from high how and how long changing the narrative from there is no alternative to saying bonds are back. bring in dryden penske chief investment officer capital management good to see you. rewind here for a second what do you think is going on with the markets here into this fed speech tomorrow? >> well, i think the markets

have probably had this january effect, gone up quite a bit. people trying to get their handle around really what's going to happen with the fed and is this -- is it going to be 25, 25-25, or 25 and 25 when do we hitbutton >> when do we hit the pause button shifted out as far as you're concerned >> i think probably -- the pause button shifted out probably to march or may and then it's a very long pause. not a short pause. that's bringing us back to the asset allocation there >> i look at your stock picks, dryden, and they interest me raytheon, lockheed, two defense companies. exxon/mobil and chevron, two big multi-national oil companies those feel like 2022-style picks. am i wrong >> well, you still have a war going on in ukraine and you have

the folks in europe and nato always going to 2% going from nine countries to 19 countries spending a lot of money, due to what they have to spend that on, really falls right into lockheed martin and raytheon war's not over and have to replenish inventories, and then for fuel prices oil's going to probably stay north of 80 for about extended period of time and companies make a lot of money at that point, one of them made $55 billion most recent quarter. pretty nice money. i guess the impetus for my question is that a lot of the bigger movers have been less, so far this year, have been less defensive choices than those. >> well, i think that what we're going to see is so far this year you're having this recovery activity everybody's glad to be done with 2022, but the narrative for both asset allocation and everything

else is changing a little. we see this first part of the year will continue to be volatile markets go up and down great so far but we think still important to maintain some -- some conservatism in this, because i don't think the inflation story is completely over with. >> finally, dryden, back to the energy, a couple big picks exxon and chevron. oil price not behaving well lately why do you think that is and does that worry you that there could be more down side? >> well, i think oil prices probably will firm up, because you take a look at china coming back online. a huge consumer. consumer of things then again, overall, the whoa issue tina what we call baby there is no alternative and turning into the idea that bonds are back, y'all. >> baby. >> baby. bonds are back y'all, baby. >> bonds are back, y'all. >> thanks, dryden. appreciate it today. coming up, has the day trader disappeared even with this year's rally?

retail activity at the lowest level in something years we'll discuss that coming up plus, everyone is talking about china's red balloon but the companies reopening after covid and now the lunar new year could all combine for a huge impact on the world economy. that's coming up on "power lunch. stay with us. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

sflo. welcome back to "power lunch," everybody. a shift in retail investing. maybe not surprisingly last month's trading activity among retail investors hit lowest level in more than three years according to the firm manda research wrote an article looking at retreat of amateur investors here with us now, the lead writer for "market live" at "wall street journal" as well as cnbc contributor welcome. good to have you in the house with us. where did all the retail investors go just scared off? decide, well, now bonds are paying more. i'll put my money there? what >> i really think that t bims, i bonds, money market funds are the new meme stocks. we've seen a lot of individual investors hanging on but shifting strategies. putting money into cash for the first time in a a while.

cash yielding something, 3%, 4%. in t bills cash is yielding something again. put my money there instead of trying to buy the dip a lot have gotten purn burned on the past year. >> remarkable. meme stocks -- if retail activity lowest since january of 2020 who is in the stocks? wasn't it the same community whats going on here? >> esau retail investors come back to the market in january but important to note while a lot left the markets overall activity is still above 2019 levels for example, i was looking at data in the options market showed that retail investors made up around 22% of options activity below 27, 28% peak we saw past few years but above 2019 levels. seeing a similar trend play out in the stock market. >> i want to ask about robinhood but tell us a little sort of the

thumbnail version. an interesting story about a guy who made a lot of money, and you've verified in fact he did, made a million and a half or something like that but blew it all. one of the reasons he blew it all, kept chasing losses down. >> right what an unbelievable story really grateful to this individual investor for opening up about the emotional aspects of trading, which i think a lot of investors had been confronted with yes, he amassed around $1.5 million in 2021. and, you know, started taking a lot of leverage, what he told me started making riskier options. >> investor or just a bettor >> interesting distinction he did get into sports -- >> got into sports betting to try to recoup market losses not necessarily the market -- >> to a lot of people watching now -- >> what happened over the past few years.

seems easy to make money i think people are like, let me get into the options market. buy momentum-based stock sports items seemed similar and had bad bets and what he told me started chases losses and taking more risk to kithnd of recoup the losses and spending a lot. a few things going on there but an extreme example of a lot of what we saw during the pandemic. people got into riskier and riskier trades he was tradesing auctions contracts that would xpexpire within hours. >> everything you touch turns to gold why wouldn't you? why settle for 10% when you could get 40%? to me comes back to the fed. put this much, the fed, fiscal government, stimulus into the economy, yes win at the stock market and sports betting still win incentives, win at everything and now seeing

reversal fascinating to watch markets bring the narrative back to life in the past five, six weeks and i don't think there's anything we can glean now from the staying pow whir conditions are different supporting that. >> totally one unvester said trying to buy the dip early last year and stopped when i realized how serious powell is about raising interest rates, because how many times can you get burned buying a dip before you say i'm getting out of the market? >> what, if anything, can we infer from this change in behavior about robinhood which rode the individual investor, the trader trend, the meme stock trend, sew such prominence two, three years ago? >> monthly active users in robinhood third quarter hit i think lowest level since the company went public. never reclaimed the highs since they ipo'd tells you everything you need to know made trading cool. made it easy some of those -- >> gamified it in some way. >> they did.

reflective -- >> in your reporting did you find the same said by a discount brockerages like charles fidelity seeing the same declines in trading? >>. >> point morgan stanley and charles schwab has seen decline lowest level in 2020 and poit nt out above 2019 level investors, some, sticking around brokerage investors tell me some opening accounts to take advantage of high yields on idle cash interactive brokers offering 4%. their founder told me some are making accounts to take advantage of those deals. >> yeah. >> makes sense bonds are back, baby. >> yeah. just learned >> baby. >> thank you nice to see you again. >> great to be here. >> terrific. up next, salt-free taxes and irs loopholes saving wealthy americans a lot of money and could cost the government billions we'll explain. plus, a fish out of water start-up story

today's "clean start" one company producing plant-based, oh, yes, salmon. we'll be right back. money mans are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when our clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different.

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wealthy investors in more than

30 saints finding a work-around to escape the state deduction and could cost the government billions robert frank is with us. >> a creation state started to do 2018. let's create a pass-through entity tax basically transfer tax obligations of the individual ton the company companies, by the way, are not subject to a salt cap. what you do is, the entity pays the tax and entity gets full deduction from the federal government then passes that deduction on to the individual so basically if you own a passthrough, llc, escort for a partnership you don't have any cap on your state and local tax deductions if done through a passthrough. 30 states and growing. new york city became first municipality toy do it write off your state and city tax. >> oh, now 0 blessing this move? let's not joke ourselves they are blessing this move by allowing more people to do this? >> irs in waning days of the

trump administration said, this is okay. every other work-around, all charities, not irs ex-prex-explicitly blessed s one. >> the trump administration. may i ask whether principles of the trump administration might have benefitted from this? >> they may have interesting, benefits are much wider than anyone expected $40 billion in income so far in new york and california. estimate by a professor at nyu $50 billion of income of revenue lost at the federal level by the time the salt cap expires in 2025 it's a benefit that basically benefits hedge funds, private equity guys business owners, those who make more than $1 million are the ones this benefits most. and it's very unfair look, most of us are subject to the salt cap but if you own a pass-through and get your income --

>> get your income through it? get your income paid to you through that llc it's a separate thing. real estate tax. right? an amount to deduct? >> you can not only deduct all business income you get, most income, but you can add on to that up to $10,000 in property taxes. so you get benefit no cap on income, plus keep up to $10,000 in other income or property tax. there's a plus-plus for those who are lucky enough to own a pass-through. >> as we roll our eyes go, what a shock. >> yeah. >> what was the original for pay cut in jobs act? remember it came to drfruition pay for something? >> salt tax paid for the corporate tax cut. many other individual components of the tax plan 2017 this expires in 2025.

question is, what will happen just broadly to the cap, depends who's going to be in charge. do we have a divided congress? all sorts of scenarios that are possible depending who's in charge of the white house and congress, because all of these components of the individual side of the tax -- lower rate, 20% reduction on businesses. all the individual components including salt will expire we could feasibly go back to the old, no cap in 2026. >> interesting. >> no cap sounds like something the kids say these days. thanks very much appreciate it, robert frank. to contessa brewer for a cnbc update. >> happening now thousands of rescuers in turkey and syria frantically searching for survivors from two massive ea earthquakes. officials expect both numbers of deaths and injuries to rise. turkey's president declared

seven days of national mourning. in ohio officials plan control release of toxic chemicals s s from five cars o train that derailed reducing risk of explosion. release begins 3:30 eastern time and lasts we're told between one to three hours. in minnesota an explosion tore a home in half. three people pulled the wreckage rushed to the hospital one of them by hospital. no word yet on their condition the house appears to have been under construction and then the garage section ripped away from rest of the house. that's also terrifying. >> yeah. >> kelly >> contessa brewer. ahead on "power lunch" might be 99 red balloons only one went by the u.s u.s. and china tensions reaching new highs after the white house shot down the suspected spy balloon. discuss political and geopolitical ramifications in just a moment. because you've got the next generation in global secure networking from comcast business, with fully integrated security solutions

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i screwed up. mhm. learn your way. not theirs. td ameritrade. 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. welcome back to "power lunch. 90 minutes left on the trading day. dow down only nine points. caught up across the board with stocks heading lower on the day. a small decline now. nasdaq down nearly 1%. remember, nasdaq coming off a 15% rally kicking off the year material worst performing

sector gold and steel selling off down after an offer from newcrest decline in home products whirlpool, stanley black & decker, 2% to 4% drops oil, prooices higher by 1% afte last week's big drop focus on china reopening more on that in a minute. first a check on bonds right now yields are just a little higher. ten year at 3.62%. continuing the move higher we saw last week after the fed decided, then chair powell's news conference. tomorrow powell will speak again, and bond markets will, of course, hang on his every word right now 3.62 on the ten year the u.s. military is searching for the remnants of the chinese surveillance balloon it shot down off the coast of south carolina over the weekend as china continues its reopening process, could this incident

bring more stress to an already strained relationship between the u.s. and china for more on what it all means to the global economy bring in marko popitch partner and a chief strategist i assume say nothing to improve an already prickly relationship with china, between china and the u.s. >> for sure. that's actually the takeaway and understand right now everybody's watching from a u.s. and chinese perspective. we live in a very, very big world and other countries are involved in geopolitics. chinese nerve targeted just at the u.s. targeted the rest of the world as well. they're going to continue doing that whether the u.s. is pushing against them or not. so i think that's really an important point. changes seen in chinese foreign

policy progress will probably continue. mildly positive for chinese assets. >> talk about the biden administration it's not unwound some of the more punitive steps that the trump administration took. vis-a-vis china and tariffs and other call them sanctions. this event does not hasten the day when those tariffs get lowered or taken away. does it? there isn't economic impact here one way or another >> well, i think that that impact is going to stay there. at least until the next u.s. presidential election. we're entering presidential season in a world where the u.s. incumbent president lot domestic legis legislative initiative because republicans have taken the house. very difficult for the u.s. president to spend time on domestic policy which means go abroad for relevance seen that story before

china's issue becomes the only thing the biden administration can campaign on for the 2024 election we've seen how the balloon incident almost become a talking point in d.c. between republicans and democrats. biden administration has -- >> absolutely has. yeah gop side says what were you waiting for? let it transit the entire united states, and the administration said, well, waiting for it to be a safe spot for, to shoot it down it is already a talking point. >> but that also tells you, though, a very important point more political than geopolitical the impact on chinese equities and assets, chinese rally, really about the reopening really about chinese moving away from zero covid from real estate, crackdowns as well regulatory crackdown on loans begins 2021 is still in place. the balloon is not going to pop the equity market rally in china. i'm more worried, more worried about what happens at some point

in q2 if all this chinese stimulus starts to hit against leverage levels in the private sector in china. the biggest risk. >> explain that? you have been bullish on china saying policy makers are pushing for growth at all costs. ed risks you perceive? >> interesting you say that. i have been bullish. cnbc saying china best performing equity market in 2023 and literally a day later chinese equities rift. a lot i expect to happen throughout 2023 already happened wa worries me is that the private sector in china is leverage household debt in china, percentage disposable income higher than the united states of america. so they could get into a point where pushing on a string. remember when we did that 2009, '10, '11, '12. interest rates down, stimulate

but nobody willing to borrow we need evidence that chinese private sector, households and corporates are actually willing to borrow at lower interest rates with stimulus in place we don't have clarity on that and why i think there could be congestion in the china trade as soon as q2. >> we talked a few moments ago that as china reopens, and world growth kind of reacts to that, it, can china be a ploroblem in terms getting inflation under control here in the united states as china grows and puts more demand on commodity prices and so forth, could that ripple through here >> i think on the margin, yes, but, remember, the biggest source of disinflation over the next six months, that rent component of the cpi, which should, always has in the past, should reflect the lowered housing cost in the u.s. so i think that on the margin

china will add some inflationary dynamics but there's way too much disinflationary the bigger risk is geopolitical risk emanating from the middle east if there's something that investors should be concerned about over the next six months it's potential conflicts with iran could be a black swan event that causes oil pry prices to jump and restart the narrative inflation is here to stay. >> always fascinating to talk to you. marko, thanks. >> thank you. next, today's clean start highlights a start-up that cleans its plant didn't based salmon, looks, cooks, tastes and flakes just like the real thing. that's next. as we head to break during february celebrating black heritage through stories of some of our cnbc teammates leaders and contributors in business here's one now >> i'm most proud to be my father's daughter.

my father howard croft civil rights activist went down to mississippi, helped r ed regist voters, a foot soldier in the civil rights movement not well known at the time. i think about everything i've been able to achieve in my lifetime because of people like my father and all of those civil rights activists black history month is that month where i sit back on all of those radical individuals both known and unknown that sacrificed so much to bring about such profound change in this country.

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welcome back, everybody. shares of beyond meat down another 8% today after a 43% rally kicking off the year over a three-year basis stock down 84% and a roller coaster ride as competition heated up in the plant-based wars now a new contender, plant-based fish diana olick joins us with a look at the competition and investors cash on the line in a continuing series on climate start-ups.

>> kelly, ocean trolling dragging nets across the ocean floor for fish actually produced more carbon dioxide than air travel and overfishing of salmon putting the species at risk. while the plant-based meat business obviously has seen significant growth, fish alternatives not so much, until now. >> beyond meat and impossible foods nearly household names but the plant-based fish category still in its infancy names flik plantish, sofsophie's kitchen specializing in plant-based salmon. >> spent the last two to three years developing this completely new technology allows us to create muscle fibers entirely from plants and assemble that into larger structures like full cuts of meat. >> reporter: claim it looks, cooks, tastes like real wild salmon can't confirm.

it's not for sale. unlike plant-base meats formed into patties or nugget, this is whole and raw. >> cook it in your kitchen and watch it transition from raw to cooked unlike most meat alternatives out there today. >> reporter: including plant and akwaek ingredients, alge, soy enrichments soy and hemp investors hope it will appeal to those already buying plant-based meats. >> plant-based seafood can get even 1% to 2% category penetration in north america and europe certainly talking about a multibillion dollar market with, again, very few competitors in that space right now. >> reporter: noting unlike fake meat usually more expensive than the real thing, fake fish could are cheap are for consumers since cost of real fish skyrocketed. >> certainly that cost has a big impact on consumer behavior. >> reporter: niin addition to

this, joined by others total funding $12 million. new school will launch first in restaurants because roughly 70% of seafood is consumed in restaurants. saying the collaboration with chefs fine tune the taste and preparation before it hits the supermarket shelves. back to you. >> tyler, you first. >> i love salmon had it last night. probably again tonight if i had to guess did you get a chance to taste any of this, diana >> no. it's not for sale yet and wanted to get it into restaurants first. no taste test. going by what we saw. >> okay. all right. >> it's weird, diana sort of like the whole point of eating red meat is, we're told, not so good for us and all that. point of eating salmon it is good for us. >> right. >> is that an argument >> it is maybe good for us bus t not the

planet. >> it's bad for the salmon >> it's not good for the samlmon or carbon emissions. $178 million invest first half of last year continues, surpass previous years investment of $306 million and estimates are this fake fish could be a $1.6 billion industry very soon. >> just think it's a harder sell to say, do this, and, because it's good for the planet do this because it will lower your blood pressure. >> what if, do this because it's cheaper. >> true. exactly right. >> the price of fish crazy high. crazy high. >> $15 a pound. >> gosh, yes absolutely ty -- di good to see you. tyson foods, down 4% following a key earnings this week trade that and other move, in today's "three stock lunch."

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or live chat at calhope.org today. welcome back, time now for three strok lunch. tyson foods sinking after their first quarter miss lockheed martin rising with other defense names, and nvidia flat today after being on an

absolute tear up 45% to start the year here to help us trade them all is eva adoss, chief investment stra strategist good to see you, let's start with tyson, what do you do with the stock here >> it's a fourth generation family of business, and based on the research, again, we invest in publicly traded entrepreneur companies, and what we have seen over the last 20 years is that when it comes to family business, the first generation tends to create wealth, the second tends to preserve it and then the third and on tends to destroy it that's a company that's following this pattern with corporate values and corporate culture deteriorating. we see a sense of entitlement and we are seeing key family members promoted to the top despite their behavior, which wouldn't be tolerated in other places this is a company that has underperformed in market for the last five years. it's expected to continue to

underperform in the future. >> let's talk about lockheed martin one of our earlier guests liked it a great deal. do you >> i like the fact that so well a established defense provider, 80% of the revenues come from defense. one of the major suppliers to the u.s. military, also supplying ukraine now with fire jets so there are a lot of things to like it's a good, steady company. however, it's not an outlier we expect it to continue to perform consistent with the res of their category. we saw also their margins drop from 15% to 13% and they're well below other key competitors. so that's why it's a hold and not a buy. >> a couple of companies that you think are the weak links in their categories i doubt you would extend that to nvidia, but i'm curious what you make after this big rally to start this year. >> nvidia is a buy it's been one of our heaviest weights for many years now, because they have a strong mold. they're behind most of the

exciting key technologies out there such as gaming or cloud or autonomous vehicles and ai they're behind the most exciting development received this year which is the chatgpt running on nvidia gpu that's a great example on how nvidia has been an outperformer. they've had strong growth and we did not see that coming down anytime soon we expect them to continue to outperform the market for the long-term future >> all right, and intel by the way, what would you do with it >> i would say it's a hold just because, you know, again, we think growth will continue to outperform the market this year. so that's why it's a hold, but due to the recent announcements we have, we wouldn't buy more. just hold what we have. >> sure, yeah, stock worse than the dow, again today, down almost 4%. thanks, good to sea e you. a smartphone, smart move, china retailers ttcuing iphone prices to spur demand. we'll talk about that and more as we wrap up "power lunch."

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$1,300 but customers can save more than $100 through a third-party retailer this obviously doesn't sit well with apple which does fight to defend its prices. clearly they're trying to spur demand. >> sure, last week's quarter is still leaving a little bit of a poor taste in some investors' mouths they had an extra week in their fiscal, still they had iphone sales down, max sales down, services growth slowing, all the rest of it i say all of this with the experience of having to just upgrade my phone the watch is free. i'm not the only one the last couple of weeks. >> they gave you the free watch? >> yes, yes. >> wow >> it's not cheap to buy a new iphone >> i want the kelly evans plans here. >> it's not just me. i was talking to one of our colleagues today, same thing you wonder when they get to the point of giving away essentially stuff that for apple is quite unusual. what does that tell you about end demand. >> underlying demand >> exactly. americans are spending

through the savings we built up during the pandemic. t"the wall street journal" citin goldman numbers reports americans have spent more than a third of the extra savings through the pandemic two-thirds of it will be gone. two reasons for that, the end of government assistance, and of course inflation higher prices for just about everything are eating into that cash >> and also, we had pent-up spending demand. >> true. >> people wanted to get out and not that they didn't buy things online and buy things while they were home during the pandemic, using some of that to do so. now they're back out traveling now they're back out spending in restaurants and bars. >> and the question is what is kind of -- how does the consumer look, in real terms, consumer incomes haven't gone up since about the end of 2020. this is the real versus nominal thing. you might have gotten a wage increase if you're not keeping up with inflation, this whole idea that people making $100,000 are now living paycheck to paycheck. that's the kind of adjustment we're making to these higher prices. >> you're falling farther and farther behind you're on the treadmill. the treadmill is kicking you off

adds you go along. inflation has come down to the point where there are real rates now, the fed funds rate is higher than the rate of inflation. >> the only problem with income and wages starting to keep up with that is what our audience worries most about is corporate profits go back to what steve is saying under pressure. >> my wife just texted me. i'm having prawns tonight for dinner, not salmon, and they will be real prawns. she also asked how much processing does the stuff have to go to to pretend to be salmon. >> you have to imagine it's quite a lot. >> it is a process, the whole thing. >> this is a perfect segue to final point to mention shake shack we haven't talked much about it. i just realized you're supposed to read this >> it's bringing a taste of fine dining it says to your restaurant right here. on friday the burger chain will start selling burgers and fries made with white truffle sauce.

wow, the company says they are always trying to highlight flavors and ingredients that you don't usually find in fast casual establishments, and while white truffles are expensive, the items are not all such, they have some starting prices under $10. >> that was my next question after we've talked about stretch consumers and all the rest. >> all right, folks, there you go it. i'm having the prawns tonight. >> i'm coming over. >> "closing bell" starts right now. stocks starting the day lower but firming out a bill throughout the session the dow erasing most of a triple digit loss as investors weigh more earnings and a speech tomorrow from fed chair powell this is the make or break hour for your money welcome to "closing bell," i'm mike santoli in for sara eisen the s&p 500 has been sitting around this half percent decline most of the day. you see the russell 2000 has got worst of it. down 1.4%. that has been one of the big outperformers going into today the s&p abou