welcome to "power lunch. alongside kelly evans i'm tyler mathisen hope you're having a good monday new details on the failure of goldman sachs' consumer banking venture marcus and what it has ceo david solomon on the hot

seat and we'll discuss his future this hour. warren buffet says critic of buybacks are economic it literates. a reformed buyback critic himself, he'll tell us what changed his mind a check on the markets stocks off their best levels last week was the worst week of the year for all three major averages and today half percent gain for the broad markets, 1% for the nasdaq. >> a closer look at some of the stocks making moves with dominic chu and kristina partsinevelos dom, you first. >> all right it's the planes, trains, automobiles market check today for the planes side check out what's happening with boeing up about 2% or so roughly, making it one of the best, if not biggest point contributors to the dow industrials. the commercial jet defense contractor trying to bounce back from bigger losses on friday tied to federal aviation regulators saying boeing had halted deliveries of the 787 dreamliner the shares down 9% since it hit

a 52-week high february 14 for the trains, union pacific, up 9% or so, and that's off session highs making it the best performer in the dow transports. ceo lance fritz is out and he will step down this year amid pressure from activist hedge fund soroban capital partners clearing the way for a leadership change and we'll cap it off with automobiles of the electric variety fisker surging higher about 25, now 30% or so after it reaffirmed its production targets for the full year and reported quarterly results fell shy of estimates bud said costs were lower than expected in 2022 now for a check on the tech trade, let's head over to kristina partsinevelos at the nasdaq market site in times square. >> thank you, docm. "the wall street journal" reporting pfizer is in talks to acquire seagen in a deal worth more than $30 billion. seagen's stock on your screen

soaring over 10% right now and this is happening even though the deal is in the early stages and would still have to overcome tough antitrust reviews. it's still not a guarantee components of the biotech are jumping on the notion there could be other takeovers in the biotech space, celdex and intellia up 4 to 5%. morgan stanley analysts feel investors have been too negative on cyber security name crowdstrike and increased their price target to $150 the stock trading at $121.68 they argue the firm can leverage a.i. and that's why you're seeing palo alto and david dog, other names moving 2% higher in sympathy right now. >> thank you very much we begin with the story of goldman sachs ahead of the investor day tomorrow, a rare but important event. ceo david solomon's leadership being called into question with

under performance of marcus and the apple credit card under the spotlight. joining us now to discuss what this means for the future of the company and for solomon as its ceo cnbc.com banking reporter hugh san good to have you with us as you look at goldman's foray into consumer banking, checking, credit cards, and the like, is this a -- just a simple case that goldman is not suited to be in this business it's not what they do. >> it's not in their dna what the old guard of goldman sachs partners, you know, have said from the beginning, all the way up to gary cohn the number two and the president of goldman sachs tofor a while. when like at the story of marcus i have to say there were bright spots and it was, you know, succeeds at a certain point and things went south in 2021. so, you know -- why?

>> the death blow was that goldman sachs -- i'll step back. one of the surprising things in my reporting is the extent to which the decisions ceo matt rosendale had an impact on the story of marcus, and its failure. he had done a series of reorganizations, shifting the walls around - >> and shifting people for this organization in 2021 you had a partner, omarishmail, one of the original architects of marcus, well regarded, an he felt like he had been looked over for this promotion that happened in late 2020 one of his peers got it, and he leaves for a place, a welcome backed fintech named one and this sets off a series of disastrous things for marcus waves of people leaving. lack of discipline leading to a boom and bust scenario and things went south. >> one of the things, kelly jump in a second, one of the things your reporting seems to be this,

that there were a lot of people who felt that initial credit card deal with apple was very poorly engineered from the standpoint of goldman sachs. >> one of the delicious details in the story for sure is, you know, a meeting which you have a credit card veteran many decades, barclays, citi, one of the folks who got hired to inject retail banking talent at goldman sachs, shows up, finds the contours of the deal which had been verbally agreed to and says -- paraphrase what the hell happened here, who agreed to do this the feeling was they gave away the store to apple and that essentially goldman executives were so eager to get this deal with a tech giant they gave away the store. >> i forget who it was, was telling us in the last week or so, if you were going to make a consumer bank, goldman approached in the worst possible way because they went after credit card and sort of high-cost, online loans, which two not traditionally great ways to build a sticky and loyal

customer base. the ways to do it to open brick and mortar locations in other countries or here, create relationships, low-cost checking accounts, for example. are they going to try a different tack or the consumer thing history and david solomon history as a result? >> that's a bridge too far one thing i would point out, david solomon was a proponent of the digital checking account he was enamored of the success of chime at the time, huge valuations for the startups. the fin technology, valuations have seen a collapse and pulled back on the point about david solomon, i have to say there is a lot of chatter, if you speak to goldman ex and current folks, there's chatter he is at risk. he has to focus on one, creating for consensus among partners and stakeholders, two, to agree on the path forward. >> for marcus, for the consumer banking or the company >> the entirety. goldman sachs at large

as it pertains to marcus, to your question, they've slid down the ambition saying we're going to be the behind the scenes partner and just like with apple and the apple card, we're going to provide the balance sheet in tech but not being to be the leading brand. it's more, you know, a smaller ambition for this going forward. >> and their investment day is tomorrow, so presumably we will learn at least something more about goldman sachs. >> they're going to provide deep dives into what's the growth engine we know the growth engine is not consumer anymore that was the story from three years ago. tomorrow they will say what is the new growth engine, asset and wealth management. >> i mean they get into that now, they can't get into that now. how are they going to be the 45th player or acquire somebody? >> we've had this discussion on this show. it's too mature. basically they can't buy their way into it. how will they grow into it i suspect they'll convince -- try to convince people this is

how we're going to grow our way into it. acquiring huge asset management players too difficult in this environment. >> fascinating >> fascinating day tomorrow. thank you very much. by the way, goldman sachs ceo david solomon will be, where, "squawk box," tomorrow, 8:00 a.m ahead of the company's investor day. i am sure that he will get lots of very spicy questions. >> i was going to say, set your alarms but hopefully people are up thank you. the back and forth debate on buybacks continues over the last few weeks. companies have found themselves under washington's microscope over these practices, the white house slamming chevron last month, that being the latest example. famed investor warren buffet calling critics economically illiterate, but if companies become more hesitant on the buyback front could it pull the rug out from under the market. herb greenberg, reformed -- we have reformed broker reformed buyback critic? >> yeah. reformed buyback critic, that's a better way of putting it

never was a broker. >> let's -- i'm referring to josh let's nuance warren's views. he says you can't call them all good or all bad. you have to look at the price. anyone who has been through a cfa course or anything knows, if they're creative, fine, dilutive, not great. how do you approach the issue? >> i approach it that it's really just, you know, it's another form of capital allocation and it's really a test of how good the management is or is not investors want to know the capital is being, you know, put somewhere and the reality is, it's another form of investing that's what buybacks are you want to be in companies that are doing it with good cash flow and that have good balance sheets and can actually have looked around and they really do feel that's a good use of their money. look, i have some companies in the portfolio of one of my

newsletters and when they say investors are pushing them to do buybacks, the companies will say look, we've got a lot of money, generating a lot of cash, we have a priority list, buybacks are at the bottom. i love seeing that other companies historically keep buying back stock the stock has not done well, they're just like, you know, like a -- you know, they're static and, you know, that's a great use of cash. there's a company i like, i mentioned it in the past, allison transmission, bought back over 50% of their stock over the past ten years. they're taking themselves private. boring as heck company. >> herb, your view of buybacks is rather more benign than that of some critics of buybacks, some of whom would say it is a convenient way for managements to restrict, compress, contract the share float and thereby, in part, artfully manage eps, to

which often not only stock price, but to which often executive compensation is tied how do you answer those who say, this is really financial engineering? >> you know, don't confuse financial engineering with sound financial management for some companies, you know, you can say that could be whittled down to one question, the share repurchase create value for shareholders if a company is buying back stock purely to offset options that are being excised, i wouldn't, you know -- that's an issue. but if they're doing it because it is the best use, and yes, they're basically giving you a bigger share of the company, what's the problem i don't see a problem with that, tyler. as i looked at it back when i was somewhat of a critic, it was an easy mark and when i look at the politicians and the politicians saying this is -- it's an easy scapegoat when i looked at the state of the union address, i tilt left,

so this is not a political statement, when i looked at the state of the union address and everybody was cheering, cheering when biden was talking about let's get rid of those buybacks and tax those buybacks, how many of those people know what a buyback is and, you know, because you know that many don't. and it's - >> if they raise it from, you know, 1% to something 5, 10%, what is the net impact going to be on the stock market, do you think? >> well, assuming it went through, which it probable won't, i don't know what the net impact would be. i would suspect some companies might hold back, but the stock market, i hope the stock market is tied to much more than buybacks again, companies that do buybacks the right way and can afford them, that's good for that company i'm most interested in the company, not the market. i know that's a sort of my way to wiggle out of that question, but i think you have to look at each company independently because this is not a one size

fits all. >> what would this -- take your favorite one, what would the companies do where buybacks were costlier would they turn back to dividends? what would they do >> yeah. they could end up -- this company pace a bigger dividend that's more of a tax hit on investors. ultimately they're going to pay tax on that. some investors would prefer dividends. there's a mix. i like to see some companies that don't do both buybacks and dividends. you know, what will a company do hopefully it won't -- it won't set the cash afire doing something stupid. >> raise executive pay you can think -- if you have some - >> go ahead. >> and that's the other thing. you know, when you see people talking about it, it's a way for management to enhance its own wealth it's actually a way, again, in many companies, for management to enhance shareholder wealth because remember, it's about all shareholders in that case and by the way, if you look at

compensation and you look at how management is compensated, you know, you don't want to see just earnings per share as a bonus structure for the bonus structures one metric, earnings per share that's horrific that's not a good thing but, you know, it's easy to point a finger at it it's another thing to actually go in and do the work and understand how management is compensated for that specific company and how management is done and the performance is. i come back to, is this a company that's generating a lot of cash and that has a really solid balance sheet. boils down to that. >> appreciate you joining us today. >> sure. >> herb greenberg. coming up, we will get more clarity on the consumer. tomorrow target reports, lowe's wednesday. we'll talk to stephanie link twitter announcing layoffs as elon musk tries to turn around what he calls the world's largest nonprofit. all atndorcongp th a me mi uon "power lunch."

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investors will be watching key economic data due out this week including consumer confidence tomorrow. that's on top of a slew of retailers reporting. here with more on what to expect and some important names to watch, stephanie link, chief investment strategist and portfolio manager at high tower and a cnbc contributor let's start. welcome number one. the economic data this week. what are the two or three data points you'll be watching and

what do we expect from them? >> yeah. so it is a busy week i think the pmi and isms will be interesting because you get the services component as well as the goods component and i think services is going to continue to be the bright spot north of 50, which is expansion and on the goods side, i think you're going to he see continued contraction. that's exactly what we've been seeing all year, actually for the last couple quarters, but we know that services is about 70% of the consumption, u.s. consumption. we root for services but we're hearing that very consistently from companies as well. then we get a big number fourth quarter labor costs and that number 1.5% growth month over month is likely still too high and another reason the fed will continue to be hawkish and continue to be raising interest rates. >> let's move on to a couple of consumer names that report this week target and lowe's. these are stocks that you have your eye on, not necessarily

ones that you own or favor as buys right now talk us through them. >> yeah. well, i own a small position in target, and i am inclined, if it does fall, what options are pricing an 8% move either way. fit does fall on the -- if it does fall on the news tomorrow i am inclined to be a buyer. as you progress through 2023, this company is going to clean out inventory and that margins actually, as they clean out that inventory, will recover. i mean, their goal or their target and guide for tomorrow is low single digit it negative comp and also a 3% operating margin i think that's a low hurdle, tyler. but again, the key is going to be inventories it was 14% growth last quarter and 43% growth in the first quarter of last year they made progress but have a long way to go. >> lowe's has a lower bar now, what do you think? >> yeah.

i would say definitely lowe's has a lower bar, and it also trades at 14.7 times forward versus home depot at 18 times. big discount to its competitor the reason it does is because 75% of their revenues is do it yourself and that, we know, has been under enormous pressure, versus the pro business. home depot has a better mix. inventories are going to be key. i thought home depot did a pretty good job sales to inventory spend narrowed to 12% versus the 19% prior quarter, but it's still high. we have to see that. then, of course, these guys have a self-help story component in terms of cost cutting and operating margin goals their goals are to get to where home depot is today and their goal is to get to 14.5% operating margin by 2025 they have a long way go. i'm not involved in this one i prefer the home builders i like dr horton as you know. >> all right

finally, broadcom, i guess the question is, can they make the case that they're deeply enough into a.i., which everybody wants to see these days? >> yeah. i know i know a.i. and data center is about 30% of their total revenue they have pretty good exposure we know that from nvidia, it was, obviously, the positive, the guidance was the positive, so we'll see what they have to say there. i think that's going to be the bright spot. enterprise and cloud under pressure, not surprising, what nvidia gave us a sense on. i think their totally revenue semiconductor business can grow 19% and infrastructure software about flat they have industry leading margins and that's important and a backlog of $31 billion that's also very important. tyler, this stock is only up 3% on the year. smh is up 17%. i like this one, given the valuation that it's a discount to the group. >> stephanie, always great to have you with us stephanie link, thank you. >> thank you. coming up food for thought for today's clean start we'll

take a look at a start-up that turns food waste into chicken feed and sells it to farms we'll be right back. getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more.

welcome back to "power lunch. let's get you caught up on the markets where the dow is up 121

points the nasdaq continuing to lead the way. we'll hit bonds and commodities but begin with bob pisani at the new york stock exchange. >> kelly, it is right in the middle of the trading range, but it's interesting to see fisker move so much the ev makers have had a terrible year, generally having trouble hitting production targets overall. they missed on earnings but made very positive comments about deliveries they've been waiting for the suv for a while now, and it's going to be called the ocean they talked about 46,000 deliveries this year that would be a huge target if they were able to make it. they're still losing money and projected to lose money but a possibility they could be cash flow positive maybe and that has a move in the names up 20% for fisker most of the other ev makers haven't. the thing for fisker is, they are having this manufactured in europe they're a contract manufacturer. they don't have their own plant. they will help them out again. that's the biggest gainer at the

new york stock exchange. elsewhere, closing out february down 3, 4% on the s&p 500. not a lot of big gainers, but some of the aerospace and defense stocks have done well today. down a little bit, but northrop grumman has had a positive month, lock ahead, nice month, boeing down a bit. that's one of the few adefense aerospace companies. the hot thing on wall street is bonds. short maturity treasury bonds, treasury bills i should say. those generally around 1-year to 2-year maturity, the etfs that own these like the ishare short treasury spider short term, vanguard, huge inflows everybody loves this 2-year treasury yield at 4.8% my mother brought it up to me over the weekend if your mother brings up something to you, pay a lot of the attention. >> it's true. >> it's seeping in. >> everybody is paying attention

to bonds these days for a change bob, thank you very much let's go to rick santelli in chicago. yields are falling rick >> yes you know what, these high yields are deflg capturing many investors' imaginations. be careful whether in a fund or hold a security, if you're holding a 2-year and happy with the rates, you might have to hold it to maturity should there be change to rate structure and therein lies the rub you need to be happy with the return 2-year by the way is the star for me today as well let's look at a 2-year over two days how it just flew on friday friday was a huge day if you're a technician if you go to the charts longer term, you can clearly see that last fall we had a high yield close for 2s that was 4. 725 friday was the day we finally closed above it, and as you look at the spread between 2s and 10s

over a couple of weeks, you can see that it had been less inverted now all of a sudden, 2-year on friday, changed that even though today, 2s and 10s are about equal distance so there's not a lot of curve implications, we're still close to a fresh four decade, dream on 2s to 10s and the main reason, whether you look at 3s, 10s, 30s, only 2s closed above their fall high yield close and that's important to pay attention to. 4.65 is for three years so you want to watch that level very closely. kelly, back to you. >> all right thank you, rick. let's check out commodities now. pippa stevens, what's going on with oil >> oil is lower off the worst levels of the day. it is the macro factors dollars, strength, what more rate hikes might mean for the demand. we got a call from goldman sachs yesterday pounding the table on triple digit prices. they see the market flipping

into a deficit by june, and they said even if opec and its allies unwind those production cuts come june, the boom in chinese demand will offset those new barrels. however, this boom in chinese demand has really yet to materialize, despite people pointing to this as a key catalyst for quite a long time. >> it's china is what they're counting on to drive >> everyone is counting on china. seems like china is what could meaningfully push prices higher. we've seen oil in this range 70 and 82 and there has yet to be a strong catalyst in any direction. china demand is the one everyone keeps pointing to, all the oil bulls. for the bears, it's the point that hasn't materialized yet. >> may i ask what's going on with lithium prices? we talked about the decline but is it picking up speed >> chinese prices are down more than 20% with global prices down about 11% this year. part of that is thanks to an increase in inventory.

we've seen catl, the battery maker, cut their prices in an effort to gain market share. that is weighing on prices right now. of course they are up more than 800% over the last three years there's many who say the pullback could be healthy because it could mean a faster rollout of evs because when the battery prices are so high it does impact the demand potentially a positive, but we'll see. >> pippa, thank you. good to see you. >> let's get to bertha come coombs for a news update. >> the biden administration is launching a major crackdown on companies that illegally employ migrant children who have come to the united states without an adult. that according to the "new york times," which published its own investigation that found it has been happening all around the country. the "times" says the labor department may try to stop the interstate transportation of goods when child labor has been found to be part of the supply chain. sources tell nbc news that

congressional leaders and top members of the senate and house intelligence committees will get their first briefing tomorrow on the investigations into classified documents found on the properties of joe biden, donald trump, and mike pence and an internal government watchdog will reportedly look at transportation secretary pete buttigieg's use of government jets for official trips and his office said he made 18 flights for seven trips and in all but one instance it was less expensive than having him and his staff fly commercially tyler. >> very interesting. ber that coombs, thank you very much ahead on power lunch, twitter laying off more staff. amazon expanding same day delivery and cathie wood weighing in on nvidia. we'll break down today's top stories in our tech check featur e.

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welcome back time for today's tech check, joining us from san francisco to talk a few topics in the news.

deirdre, welcome let's begin -- we couldn't begin on bad news but the layoffs, more so at twitter what are we hearing? >> it's happening. hello. welcome to the new tech check. as kelly said, the layoffs continue in the industry as it continues to reckon with the slow down. palantir out just this morning, the latest to announce it is cutting 2% of its workforce and over the weekend the story the layoffs at twitter more reports that meta will do another round. for investors, the takeaway here, it's got to be the cost cutting, focus on margins, has worked for tech stocks, able to regain market leadership but the question is can more cuts sustain the gains or do investors start looking for a transition back to top line growth kelly and tyler, that tech trade is working coming off the worst week of the year for the nasdaq 100, you but back on track to start the week midway through monday. >> let's return to a frequent

topic, cathie wood on our air this morning, out chopping wood, stacking it, in her flagship fund up 25% this year. what's going on? >> yeah. po poster child of the unprofitable tech trade a lot in that interview. the ark etf rebounded to start the year february performance has fallen off with the speculative tech. here she is on nvidia. >> we own it but for a flagship fund where we consolidated towards our highest conviction names, part has to do with valuation. nvidia's valuation is very high. >> so, even there, cathie wood is saying that valuation is high which is saying something. but interestingly, there is actually this bullish note on nvidia today bernstein saying that chatgpt, a.i., could be huge for nvidia he tried to size the chatgpt, a.i. opportunity estimating 100

million queries per day would require 1 to $2 billion in annual sales up to 10 to $20 billion for a billion queries a day. the current number of searches on google per day is about 8.5 billion. only needs a fraction of that for the bull case for nvidia >> wow. >> i mean, it makes sense. >> a lot of chips to drive this bus. >> a lot of computing power. deirdre, at amazon many companies cutting costs but investing in a way to try to make even faster delivery a possibility? >> yeah. so amazon essentially trying to balance the two major themes right now. efficiency and growth. while sales have weakened across its major businesses, e-commerce, cloud, advertising, it's doubling down on same day deliveries and amazon is essentially using its broad logistics network it expanding during the pandemic to compete with retailers like walmart that can lead on its thousands of

physical stores to fulfill same day orders and comes at a tricky moment for amazon and ceo andy jassy. shares have shed half of their value last year but amazon has never been one to go on the defensive. they're always offensive in some way. andy jassy is carrying the torch. >> don't mean to put you on the spot and forgive me in advance for asking this question, but do you have any idea roughly what percentage of amazon's deliveries are handled by amazon -- from -- from origin of order to delivery at door, handled by amazon as trucks, delivery people, planes, as opposed to others? >> well, it's logistics network has grown so much over the last year. >> so much. >> i don't know the exact number, but it has doubled over the pandemic, right. andy jassy, someone who would say they had to lean in. they over built, have too much capacity, but that was to take

advantage of this massive shift to e-commerce that we saw during the pandemic the result they built too much too quickly, but he would rather be in that position. now they're getting back to things like same day delivery, what they're trying to do here they have the program called fulfillment by amazon which a lot of their merchants use which simplifies the process, but you give up the privacy and data in return it's up to the merchant. this idea of the same day delivery amazon would own and operate that whole process, which can be more expensive. certainly, until you get to scale. the hope here is that you do get to scale and better compete with the walmarts and targets of the world. >> to me it's a marvel i ordered -- to bore everyone here, i ordered on friday night some coffee machine descalar, it arrived saturday morning it was all - >> do you seat option, do you want it between 4:00 and 8:00 a.m., overnight. >> yeah. but i mean -- and really, the

reason i ask, i see so many more amazon trucks on the road and amazon delivery people working to deliver the goods it's amazing. >> yeah. i mean prepandemic, one day delivery was kind of off to the races. they scaled that back during the pandemic to better deliver more products to more people, but now they're getting back to that one-day delivery for that prime flywheel, what it's about. >> the machine is now completely descaled it's all good. come over and half v have a cappuccino. >> glad to hear. >> thank you, deirdre. not your run of the mill start-up we'll take a look at one company turning your food waste into chicken feed and profits we will explain in today's clean start.

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with t-mobile for business, save more than $1000 versus verizon. and with our price lock guarantee, we'll never raise your rate plan. ever. more than one third of the food produced in the united states is never eaten and all that wasted food is contributing to global warming. there is an easy remedy. diana olick joins us with a look at the new competition in

composting in her continuing series on climate startups hi. >> hey, ty each year wasted food produces the same amount of greenhouse gas emissions as 42 coal fired pour plants according to the epa that doesn't count the emissions from all of it rotting in landfills. composting is a way of reducing that but it can be time consuming and messy until now. wasted food makes up nearly one quarter of both landfilled and burned waste, contributing significantly greenhouse gas emissions. composting can eliminate a lot of that. and now, the competition in that space is heating up. names like lomi, reencle and a start upcalled mill. >> no one likes their experience with trash at home, fruit flies, rats, it's like a problem wave come to accept but frankly doesn't have to be this way. >> reporter: rodgers who

co-founded nest smart home systems, says mill differentiates itself among composters keeping food as food, turning night chicken feed. >> we sell our feed to farmers as an ingredient to chicken feed. >> reporter: there's price for all this at least $33 a month for the service which includes the kitchen bin and prepaid box every time you send the milled results back to mill let them know in the app when your bin is full investors in the company say they don't see the fee as a problem. >> there are millions that compost across the united states what mill does is upgrade the experience. >> reporter: mill's plan to start in consumer' kitchens and expand to local municipalities and do this on a larger scale. it's backed by energy impact partners, lower carbon, prelude and google ventures, funding $100 million we asked some consumers if they would pay to do this when they

don't get any fertilizer back like traditional composting and the responses mixed, but mill says it's sold out its first subscriptions and launching its first test pilot with the city of tacoma, washington, residents using mill can supposedly reduce their city waste bills by around $25 a month. back to you. >> so basically, simply put, why do so few people compost. >> it's like you said, messy, it's a pain, it's not like recycling where you get the bin and the municipality takes it away it's to the required there are only nine states that restrict sending food waste to landfills and one state vermont which bans it. >> fascinating thank you very much. $100 million they have raised a lot of money. all right. thank you very much. exclamation point. still to come, key movers in to u t glpse stock lunch. yogea ime. we're back after this. ]

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it's that time for three-stock lunch. today we're sip on big movers. enphase to buy at janney montgomery scott the fisker pacing for its best

day on the news. they will bring delivery of evs and teledoc down 3% and here to help us trade all three is courtney garcia, a cnbc contributor. start us off with enphase. would you be a buyer here? >> i would really solar and clean energy in general. it's long been seen as a future of energy and hard to invest in properly that's why something like enphase stands out not only is it profitable but tear gross margins are above 40%. they have a strong balance, $1.6 billion in cash and less than $640 million in liabilities. plus, they have a lot of free cash flow so it will really lead them into more growth opportunities as we move forward. lastly, they have the ability to pass on their price increases to customers as they face things like supply chain issues or chip shortages that have affected

them when you're in a higher inflationary environment, when you have the ability to pass on those costs to customers that's really important which it has proven they have for those reasons i'm optimistic. >> let's move on, courtney, to fisker what do you think? >> fisker, i'm not as optimistic on and there's a celebrating here profitability is going to become really important, especially if a higher rate environment. they are not profitable and they don't have any revenue to show currently. there is news they will deliver vehicles earlier than expected, in the spring and they will be facing a lot of supply chain issues, issues with chip shortages, and they have really not a lot of room for breathing in their balance sheet so they basically have enough cash to cover this year's worth of expenses but not by a whole lot of margin. so they don't have the demand that they are expecting or if there are any supply chain issues not a lot of room for environment. >> and then this one going the other way today.

teledoc, buyer of the weakness or seller sticking with the trend? >> seller sticking with the trend here t teledoc sun profitable and won't be profitable until 2025, but i really think this is a company who was benefiting from the trend during covid, but now they face a lot of competition, not only from smaller competitors but the likes of amazon who just bought one med call, and they are currently -- they are a -- their free cash flow is deteriorating and not the kind of company i'll continue to be in and while they had not a bad quarter, their guidance was not optimistic for future growth so i would avoid this one again. >> courtney, great to see you. thanks for all your picks today. >> thanks. >> two years after a bombshell report showing that hollywood is losing $10 billion annually from racial inequity, the industry is actually moving backwards. during february we sell black heritage through the stories of some of our cnbc teammates,

contributors and leaders in business here's roger ferguson, former federal reserve vice chair and a cnbc contributor ♪ >> my heritage and culture as being an african american male has a major impact on my career, and the main thing is that it has focused in on areas where blacks have frankly been disadvantaged with a real focus on financial security, financial literacy and retirement savings, those major topics, and i think it's really important for everybody, but it's particularly important for african-americans who, you know, have been, you know, forced to be at the bottom end of the income and wealth spectrum, and anything we can do to overcome, you know, all of that years of heritage and discrimination i think is really poant.

welcome back, everybody. much like other parts of corporate america, hollywood made some big promises to improve diversity, both on screen and behind the silver screen, but two years later little or mo progress has actually been made julia boorstin now with more hi, julia. >> reporter: hi, tyler two years ago mckenzie dropped a bombshell report that declared hollywood was losing $10 billion annually from racial inequity in the industry due to failing to serve of the audience and also lack of funding for profitable content from diverse creators. now annenberg inclusion

initiative has said that diversity progress has reversed. hollywood employed fewer directors of color last year than the year before, 20.7% down from 27.3% the prior year and women directed fewer than 3% of the top 100 movies. >> we're seeing the disconnect between the audience, right, and the talent that are given the opportunity to tell stories, and we know that this is about access and opportunity, not a talent pool issue. there are lots of folks that are ready to go and want to tell these big stories. they are just not given the opportunity to do so >> we saw the lack of diversity reflected in the fact that no of the directors nominated for an oscar this year and none of the film-makers nominated for best picture are black, but there has been progress in one area, women of color are gaining ground on screen a record 16% of the 100 top grossing films last year featured a woman from an underrepresented racial or ethnic group in a top role, up

from 11% the prior year, but that increase in diversity did not appear in the oscar nominations. only two of the ten acting nominees are black tyler? >> you know, i've got a couple of questions here. are some studios making more progress than others do we have a measure at that level of granularity >> reporter: there is, and there's a fantastic study out of usc from the inclusion initiative that breaks this down in fact, tyler, cnbc's sister studio ron by a woman donna langley, they have produced more films led by someone from an underrepresented group, that's one film studio showing progress and it's not a coincidence it's run by a woman and that's very important to point out. >> the numbers that you cited speak for themselves but they seem to be largely one year to the next kinds of numbers. do the longer term trends tell a more favorable story because it could be -- i don't mean to

ascribe it this way, accidental that the number of directors went down that much? >> reporter: a seven percentage point drop is nothing, tyler, but over time there has been progress but it's been on a small base. >> we appreciate you being with us to watch "power lunch." >> "closing bell" starts right now. >> thank you very much welcome to the "closing bell." i'm scott wapner this make or break hours comes with stocks trying to hold on to gains after an up-and-down session. hereates scorecard with 60 minutes left to go in regulation volatility the name of the game again today. interest rates remaining at multi-month highs which is capping the action in stocks which are trying to rebound from the worst week of the year, and that brings us to our talk of the tape whether it's once again time to be bearish as so many are or bullish like some of the most steadfast optimists are attempting to be let's ask victoria green, g-sq