hi, everyone. coming up on this friday, thank goodness it's friday, the latest ripple ine1 the banking crisis. stocks wm# shaking it off.

taylor swift. is the banking crisis contained >> plus, sharese1 of fá3m hitti 52-week low today. the target of a luge lawsuit it could cost the company bill yobz. first, let's get a check of th" market.xd but the loss aren't as bad as the futures indicated this morning. take a look at deutschee1 bank. the equities are down 22% in a month. now i'll show what you is going on with the credit xddefault sw. the cost of insurance against the default, this hit the liest level to the european debt crisis. you can see the spike here after the demise of credit suisse. these are five years. is. this is not that unheard of for

deutsche bank. we are nearing the levels. we haven't sen going back the way to the debtjfqe1 crisis. it's not a big surprise during periods of weakness and stress to see them pop-up again.i]xd the big u.s. banks, region will amixed picture. jp morgan downçó 1.5%. regionals we're also keeping an eye on first republic in particular. those giving up earlier gains to turn negative. they're down less than 10%.çó dion, comerica is still in the green. >> it's not this easy beingko■ green if you're a bankçóe1t( la1 joining us is stephen morexd u)u'ess the financial times in london. london. stephen, welcome g to have ywá with us. what is going on with deutsche bank and why today?c cf1 o >> there is a casualty of the general fear we're seeing in markets which started obviously

wi2(e silicon valley. and then spread and the backdrop for this extraordinaryc collaps. credit suisse over last w%"oend which we chronicled extensively in thee1 financialçóxde1 times. deutsche is a perennial underperformer. it has been on better form. however, to day it's really traded off, asok youe1e1 said, the rising share price falling. so i think it's juste1 people probing to see where the next weak link may be. there is no suggestion anything happened in last 24 hours for deutsche bank tore a particular source of -- >> in europe, do people and do bankers blame the u.s. and u.s. reguli(>rs for what they're feeling today ine1 their bank? >> i don't think anyone is blaming the u.s. it is the backdrop for what happened to credit suisse last week. i ts5z you have a structural q

and, you know, scandal related problems going on. there is a little bit of sniping to be honest in the u.s. and uk. the governor oflp the bank of england said they warned u.s. regulators about the concentration from sill con bank anticipate nothing happened. we've also seen a bit of criticism about the u.s. changing its rules to protect the positive overot/■q $250,000 silicon valley bank by arguing it is systemic. i think there is more to being on the regulatory front.ó[■ but whether credit suisseo.%11■ survive absent anything in the u.s., i think it's still up for debate. i thinklp they cause their own . >> stephen, where do wew3 go fr here? it is the european central bank raising ratesp!y .5%. why are they not more upset >> well,w3 they're worried abou inflation as they are about the stability of the banking system% and rolling back on any of the direction at the moment. they havee1lp a wider impact on

society. you have the chancellor of germany and the bank of england. the banking system is safe and secure, liquid and well capitalized. there is no reason to worry. but as you know, that's what credit witnesse1 is saying. and we proved before it collapsed, they may not necessarily be axd cure for market. >> forgive me for being uneducated on this. you know much more than i do about them. do european■nú countries have s of the same bankingfá structure that we doó[■ in the united sta? in other words, there are lots of small andhé1 mid sized regio orjf local banks. or is it much more concentrated -- or is the banking business much more cocujjjt two or three large banks in, say, the uke1 o france or switzerlande1 or germany? >> it's far moreñr concentrated.

each individual market is small. we don't have a european market. in the uk it is separate as e1 well. so what you have especially with the last financial crisis in 2008 is largely, you know, countries dominated by a few very big players. spain used to have lots of regional banks. a lot of them failed. in france, italy andxd particularly the uk. it's not the same. the banking market is not onok e same scale as the u.s. so very fragmented, country based and dominated by a few larger players. >> stephen, thank you very much for being with usu■ today. we appreciate it. >> thank you, its a pleasure. the. >> our next guest also weighing fed saying the fed's gone too far and helped trigger these t( problems. let's bring in ron insana.ñié@■ ron, good to see you. obviously we've been banging

this drum for quite some let's talk withr stephen's point. what about thee1 inflation? uk inflation over 10% this week and so forth. so for those that say well, you know, if they stop here, they'll bail out wall street and hurt consumers. what is your response? >> i'm not sure that's thexd ca. the latest data, it is higher than we have here. we have fallen into the 5%, 6% region and down 9%. inflation is coming fádown. the interesting piece thate1 wa out this week, peter being a former administration official on the economic sidee1 saying almost all of this inflation in the u.s. ise1 pandemic and ukrae related. and the fed may be going too far which is my view.lpléeyrñlet's if some of us say maybe it was the fed as overstimulus in washington, no matter whether it is one or the other, either way it's unwinding nowk:@r(t&háhp &% >> absolutely. and then as i write today,

they're taking the punch bowl away of athe party is already over. they're supposed to take it away after the party is getting startedc according to way back when. and at this junk tour it seems to be overkill. and th(—q directly responsible for putting very serious pressures on bank balance sheets at a timenen they probably don't need to. so that was what i was going to ask you. what is the damage done by bo continuing to take the punch bowl away afterw3 the partyñi i over? >> everywhere you look,e1 commodity prices are collapsing. gas which are at recent lows. whether it is agricultural commodities. interest rates are not screaming inflation. if there is a real market concern about inflation, the ten year would not be where it ise1

today. the rates are going to flip. as credit is being tightened with the con trants coming to banks, you have less credit available as we're approaching . everybody says we're six months off. >> i remember sitting on this desk inu■ september and there werennaññiu■ lot of people sayi we're headed to recession. there are a lote1i] more people >> it is 130 basis points over a ten-year deal. yúz'd it's been persistent sinc november. so ift( you believe that six months to 15-month leadxde1 tim that, mean may before we even start the process of entering recession. >>ñr and the curve has come dow. >> even though the rates have come down. >> yes. >> i put that little body n theree1 just to emphasize the point. >> i'm toofá old to use body language. >> i have too much body. >> we had this conversation for quite a long time. we long maintained that fed wil(

go until something ex% m9ñ something broke. the question now is are they going to break it further? if they do, ite1 justxd leads t i've been doingfá this 39 years you're not as long. you're not that old. every time they brokerxd something, they're forced to >> the marketehjs telling them that already. they're cutting rates. the depends on how you look at it, three, four, five times by the end of the year. the. >> yeah. i understand that there are a lot of people arguing with the markets. >> in the past when they underprized where the fed is going and then brought in -- they're going there. but this time -- >> they're going there. they know what the implication is. and the stock market predicted 11 of the last five recessions.3 bond marked is usually right. >> the question then becomes what do we do now? if you're an investor and saying, okay this sounds doom and gloom. but bitcoin is up, big tech is doing great. the you st to yourself, has the market already priced this in

because we're coming off a bad year because of inflation and all rest of it k i start chasing the trades again? >> i don't care what happened in crypto. this is a great excuse to makeo the caset(■ñi decentralize finae and this would have never happened if we just used bitcoin. i think that is all nonsense. but when you lookñr at big cap tech and leaders are microsoft and apple, light, the realok winners, when you look at the5a xd and there is a hugeñr(p(ital gan on your one year if you bought it several months ago, those are relatively safe hideout places for your money. i think 2023 is still going to be a rough year until this stuff clears up. >> i think the ,h9 people as we start talking about yields is that you can get maybe still -- the six monthi] bill, actually. it was 5% a couple weeks ago. what happens when that matures? all of a sudden, everyone is right and rates are about to come down considerably -- >> then you have a risk curve. >>e1 exactly. that'+d the okquestion. the whole idea of t bill may have worked for a couple of

weeks. but then when the bills come due in the next couple months, the whole complex is significantly lower. >> so youe1 buy those at a discounted price. you get all theeó.s personal res and then go chase risk. if we really think the fed is going to pivot and stop and then startfá cutting rates, as we ma, many, many times, as has been stated many times in the past, when the fed changes, you buy >> but also the case, i think, that historically sg(eaking we often see bear markets bottom out two-thirds of wait throughñ recession. you're saying a rehasn't even started yet. in real estate and manufacturing. we have data today that shows contraction in manufacturing.e1 part of me thinks we're in w3 recession. part of me. not all of it. we still have travel and evene1 airlines are saying later in the year may not be as great. the market here? >> i don't know. i wouldn't step out too far on a limb untilok we get some -- listen, they come out this morning and says we're going ef.

regardless. we'll go as far as we need to go. as longe1 as the fed keeps sayi they're going to keep raising rates, in my experience, there is a little gray time to buyok equities. >> all right. ron insana, have açó great weekend. coming up, as we mentioned, the ten-year yield went to 4% and back so far this year. currently just shy of 3.4. our next guest says we'll see 3.0 sometime in 2023. and netflix shares are higher, up 7%. higher, up 7%. earlyçó reports on sfx: [soft beach sounds] c'mon ref, that's a foul! jay? jay's back? gimme a time out. huddle up! i call the time outs. didn't expect to see me so soon, huh? well, i invest in a fund that fuels innovation, like next gen video conferencing, and when i saw your defense in the first half, i had to step in! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. coach, what are you doing?! this thing goes fast. before investing carefully

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welcome,e1 pleased to have u with us. concentrating on bonds these days yshgsr >> we like cash and bonds and overweight equities. we'ree1 focused on the value

portion of the xdmarket. they have had a great run here during the midterm electionxd rally from mid-october into early february. the s&p 500 wast(jf up about 20 during thatq period. we think they're going to pull back. we're taking advantage of the opportunity with low prices on value stocks to be overweightt( value. overweight equities and cash. that posture we have hereok and trying toxd hunker down and get through this situation until we get some clarity on what is going on in the market. >> when you say overweight treasuries and you're forecasting that thei] ten year yield may go to 3% by the end of the year, and in light of the fact that overweighting treasuries did no good for silicon valley bank because of the kinds of maturities durations the treasuries they had, where are you onxd the

maturity spectrum of theñi treasuries you're overweighting? >>5a■q our duration committee i roughly neutral rightce1 now. it's not au■ heroic call given 0 to 340 here in the last three weeks. what we're suggesting that the kmoe is going to u■slow. it's going to continue to slow. treasuries will perform welle1 that environment.q @r(t&háhp &h% cash right now is a realçó asse for 4.5, 5%.x6tr(t&ho and value stocks, low epsnb■, dividend yields twice the'c■ brg market. thosexa■ good places to hide out until we get clarity. >> and that said, international still places you are also looking? usually when we see global down turns, the u.s. holds upçó

relatively better. you worry about people chasing international stocks for the fx trade or something like. that high beta. trouble here? >> we do like international selling. the international stocks are 40ó cheaper thanr the yield is on u.s. stocks.e1 china reopening and coming back into the economy.fá it is important relativelylp weaker dollar versus euro pound and yen is important. so there are a number of reasons why international is here asçóç well. why do you finde1 them? >> easy, by thee1 way,çó to sayt an awful lot of the regional banks are value stocks right now. >> we like to focus on is the

more stable demandw3 categories. regardless of whether or not the economy does sort of lie towards a rocky landing or recession over the next year or so, consumers need to continue to buy health care and energy,ñi consumer staples,okok utilities. ic$rj a5a■ nice rebound rally that was t(there. again if, the economy is going to drift lower, we've got a couple of negativeglxñ gdpe1 cu coming in the third and fourth qwa[rter, the federal reserve remains i believe what is going on with credit suisse and with silicon valley bank orq symptomatic of systemic problems throughout the banking industry. these are one offs. these are companies that were poorly e1managed. they are note1 suggestive that we're, you know, see a repeat of

the xd'07-'09 financial crisis. >> phil orlando, thank you very much. good to be with you, sir. >> thanks, tyler. >> furtr he

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back. time for our weekly etf tracker. we focus on real safe funds. outflows of $253 million official the past week. this according to our partners atñi track insight. two big factors, real ( always on highxd alert over interest rates.i] and also the economy. recession fearsjf may be adding3 jitters here. commercial real estate and tracking a lot of attention. all the funds are down this week, not all of them. most of them. vanguard realw3 estate, schwab dound w32.75%. real estate sele3.04%.ront down and the ii] shares u.s. real a9. so pretty consistent down. 2%, 3% there abouts. more information availablefá on the ftetf hub. >> thank you. let's get to the bond market

now. it's been all the talk. we're closely watching key át ten year. rick santelli, what are they? >> yes. ñ year. we close above 347, i'm not sure that's possible at this point. but that is a positive. below the market, right around 323. very solid support. do keep in mind keyfá prices ar moving around likexd co%■ties. big ranges. liquidity sometimes an issue. this morning 9:45 eastern. it was better. it reversed rates lphigher. two year was over 5% this month. if you look at sv4tens, they we over 4% this month. go back to october. they never traded over the highs. high yield e1etfs with the investment grade. and that is thee1 trend chasing credit is important. when is last time you saw banks avoiding banks moving into

corporates? let's see whaul dave is up to. dave? >> yeah, rick? >> hi.e1 it's been a crazy week. what have you seen? >> there's panic. there is panic in ÷] air. they never know. going into a weekend, friday, you don't know what is going to happen.r i. it usually happens. they wait from the backage. and then monday comes around. >> they're pointing out and me included. when you look at the big vix, it barely touched 30. it is below that point. do you think options are taking a little of the thunder away from the vix? >> absolutely.ñi they're all alwaysot/■q going. thap is expiring in a couplee1ó days. >> futures, they're very good. it's a wonderful contract.

i personally■3 say it's like a bill market when things get nuts. your final thought? do you think we'll see the fed pause and then start to ease? >> absolutely. they have. to they're forced to. situation, politicians will tell you everything is okay. but if there is a real banking situation, they can't keep raising. >> always interesting to get your opinion. have a great weekend. >> all right. >> tyler,d >> all right. love that man. not enough energy there. not enough energy. love it. all right. oil falling to i do day down 1% and back eg=]■ $70ñr a barrel. we have more. >> hey, sx9king of energy, transition. yeah, so oil is off the lows of the day. but still under pressure on the renewed banking concerns. we also have fresh commentary =@ within that $67 toxd $72 range. >> why is it difficult?

>> she said the firstxd is that they still have to work through aok congressionally mandated sa. that has to take place this year. and she also said that two of the fourçó sprs are undergoing maintenance. that's why they can't resell it this year. that is a big demand boosting runup over at pbm said it ise1 major blow to the çóoutlook and that puts even more pressure on china and the rebounds in demand there. >>(

is on the sidelines for now. apart from that one that is previously mandated. >> ú it was 180 million barrel sale in 2020. that is just under two days of global oil demand. so that is a very significant amount of oil. >> i'm sorry. that is going to sell that oil, no the buy it. >> yeah. so that's -- the 26 million is selling. so the one thatt( biden has don is also selling. so then they need to buy back to replenish. the fdr is the lowest."■ levels sinceu■ 1983. that had as to be e1refilledçó some point. >> big deal. >> let's get to bertha couple for the news update. >> how you are? here's what's happening at this hour. michigan is now the firstxd s+= in decades to repealr to work law. in place for more than a decade1 weakened unions by allowing representative workers to opt out of paying union dues and fees. after signing the new measure, the democratic senator said it will help grow the state's

middle class. the house today passed what 1■ç of rights act for parents by af vote of 213-208 in response to juj who feel they're being shutout of school decisions and worried that their children are being indoctrinated with progressñi you have ideas. >> this was the parents can now know what ise1 being taught in e 9c==19ñ now the parents can look at the meeting material. now the parents can see what the money is being spent on thee1q schoole1 board. they'ree1 miserable for million and also allowing governor newsom to end some of the states water restrictions. hee1 didn't give any kmept abou the long standing drough%■ thin they had to make ae1 big he didn't, right? >> and. ♪ melt is going to add to that. >> hopefully. >> bertha, thank you very much.

sad news to share with you today. our friend and colleague andy rothman died last week after a ferocious battle with cancer. career w3journalist, he worked powerlunch and provided nightly business report and how i made my moilj a sports fanatic, long suffering a lot of them. andy covered ten super bowls, three olympic games for cbs news. he was ae1ó[■ marchu■ madness e. our oughts are withth ♪ ♪

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welcome e1back. 230,000 veterans are suing 3m claiming combat earplugsxd the company made caused hearing loss. lossé saying the company'st( liability coulde in the billions. >> this is what we're talking ñr about. these are the combat ear plugs

manufactured by 3m. we did talk to a former infantr1 officer. the 35-year-old says the ear plugs did not provide proper hearing protection. >> it's a loud ringing in my ears. i don't look like somebody who probably should have as much hearing loss as i do at my age. v> lawyer telling cnbc that ear plugs doxde1 work despite the cs from 250,000 plaintiffs saying that they caused hearing damage. >> ite1 was tested by the air force and army and others. it should havet( worked. and protected hearing in environments where it was appropriate to be using this earplug. >> 3m so far lost 10 of the 16 &háhp &hc% with a total of $25 million jp morgan saysok the legal liabilities could amount to 10 to $20fñbillion.t( 3m says any estimate at this

point is completely speculative. service numbers are accusing them of using the bankruptcy of a subsidiary to shield itself and they asked the judge toq dismiss it. a hearing on this scheduled for april. we're hoping new data will5a■ h the case. the records from the department ofe1 defense that shows 90% ofu 175,000 plaintiffs have no hearing. take a look at this stock. it is at a new 52-week low today. >> as you said,çó5a■ 52-week lo lot to unpack here. thank you. we turn to our guest, senioj■p research analyst bret lindsey. what are your and the market's expectstations as to the potential exposure here haen how quickly it can get resolved? >> xdyeah. good afternoon. thank you for having me on. certainly you have to take a view when you're talking about the investment case as it relates to 3m. twoe1 considerations,ñi operati

of the existing business and the on going ñiliabilities.t( obviously, it's aok fluid situation. t is something the comp th. more than 230,000çó military service members or veteran)1 thr are suing 3m as a function of this. most recently,t(r that the dod data, you know, sho ez that hundreds of thousands of the lawsuits that were made allegedly saying that these ear plugs weren't effective, 90% of the plaintiffs have normal hearing. so this is going to continue to play out. there's going to be a may 1stw3 trial. then there are going to be oral arguments for appeals. some of the initial bellwethers. but to your point,e1 there's be 16 trials soehñfar.xd 3m lost 13 of those. >> i think the issue as thisjf

sounds -- this case is sort of too big to settle. there is over 200,000 plaintiffs. the difference between whate1 ty want from 3m and what it can afford is so great. a settlement sounds like it wasn't on the table. q=i■ wants to be exposed5a■ now to this judge no moving forward. we saw what happened with j&j. they ruled against theirñi abily into separate companies. i can understand why investors are unsettled here. >>ok yeah. certainly. it's been an overhang for quite some time. and they're going to work through it. but, yeah, if you run the numbers, it can sprit sporty outcomes in terms of the liability number could look like. may 1st will beé@■ theeq$(rt tr and we'll continue from there. they're also5a■ working through confidential mediation with the other ?pge as well. >> what did you make of the letter sent by a largeñi shareholder last month, 3m's ceo detailing concerns theyt( had wh

not management butt(i] trajectof 3m going forward. do you think reorganization could be in the cards? >> well, i think in terms of ths to the high growth markets and really focusing on where they can differentiate value by utilizing the fundamental strengths of the organization. that is very strong positions. and if they're able to prioritys to those mostxd attractive lp hen they're going to maximize value across the portfolio. i think one of the big push backs for ae1 number of years despite 3m investing, more on research and development costs than the oucer peers, they really haven't achieved the sam■ level of growthe1e1 as those pe despite the higher levels investment. i think the question here is, you know, can they e1qredefine best,p value with a diversified portfol"wip r(t&háhp &hc% >> one of the things the

attorneys said to the clasq that some 90% of the people who areñ claiming hearing loss have totally naturalxde1 normal hear. >> well, yeah.jf certainly they're making their own argument and saying that, you know, some of the levelsw3 thatok were evaluated were not used in prim; cases. so they're developing their case. i'm not a legalt( expert. this is going to go back and forth for a number of months. i wouldn't expect any type of new announcement probably until that may trial and then the second half of this year in 2023. >> all right. thank you very much. bretv good to see you. >> thank you. >> all right. coming up, today's working software company aimedi]5a■ at technology to close the gap. and as we head to break throughout the month. 1f march e celebrate women's heritage sharing the stories of women leaders in business and those of our cnbc teammates and contributors. here's one you know. morgan brennan, cnbc "closing

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companies analyze what they're offering employees fair pay and opportunity and minimize legal risk. itñi has experience with our workplace hiring habits can limit opportunities for some workers. even though part of a5a■ team o smart chief, she said she had trouble re-entering the workforce after having hit. she didn't take no for an answer. that is something she leshd growing up in a large italian american lpfamily. >> i owe that mostly to my older sister. she is 18 months u■older. i have to tell you, it was so frustrating to be inlp her shad. she was goodfá at everything. she decides to play golf. she goes toe1 stat■ in golf. she was always on varsity and i was on the freshman team dying to catch up with her. and my dad at one point, ie1 asd ñ light over our hoop in the front driveway so i could practice well into the night. and she didn't need tot( practi. everything she touched was gold. >> in that down turn, her hustle

to experience the product offering and show how data can help companies protect the progress they made in their workforces even as they tighten their belts. that means offering customers inside health of theirçó talent pipelines and their readiness t. >> a year ago we were a point solution focused on pay equity. we recently expanded that platform to address opportunity equity. so we werexd really great chanc to go back to our 260 customers and with a role anl significance cost expand to get them embracing the whole platform. thatw3 said though, john, for u we have so much momentumq right now with pay transparency legislation and we have global companies sh we're seeing a ton of demand on thee1 new side for pay equity particularly because thwrg are so muchok compliance regulation and push toward theñ transparency efforts. >> i talked to a loti] of ceosxd they have different feelings and

approaches to diversitye and workforce development. no the all the same. but the west ones team to have a workforce philosophy theyçw% ca articulate and data they can present to show whether they're getting closer to the goals they set. they're trying to arm them with more of that data. >> this is a hard area. whilexd jobs can be the same, y can have the same job description. but people are all different. they have different backgrounds. they have different skills. u5a■ of experience. and that's whatfá one of the reasons to me why theu■ pay equy question is so difficult to solve. >> yeah.÷zn8and different indus different job categories, there are ways of very thinly slicing engineer one,q engineer two, three, four, five, et cetera. but within theu■ ca)■:uju)qák t companies haver is do youñ$rp+e equality of pay across the different employee types? and if not, can you justify it?? if youqj■can't, then that is ki back.

>> is there a risk that software servicesokxd like these are get companies to start to tighten the belt here? >> there is that risk. on the other side, there is a new compliance rules in view in certain states around pay transparency and pay equity also. if you cut that, it can come back to bitee1q you. >> soe1 how are companies -- ho do companies use the data that they get?xd what do they do with it? >> what they were talking about an opportunity equity. another area -- it's not juste1 about y$m■ you paying the peopl same in the same role. it's are you getting your pipeline -- is the next layer of management that is ready to take over, does that looke1 equitabl? companies are looking through to sift through problems that could land them in hot e1water. are they performing up to the goals they set, the promises equal. >> is there a fee for that? >> yeah. it is software that they use to

keep analyzing that data that theyokr >> she is seven kids while doing all this? >> she does. >> wow. >> you should see the christmas card. >> she has a whole household >> she has a whole household that can experiment in equity. what if you were a global energy company? with operations in scotland, technologists in india, and 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. get refunds.com powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away

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time now for today's thzev stock lunch. a u.k. regulator dropping a keynote took microsoft's activision takeover while +- netflix and match group are among the biggest gainers on the s&p 500 this week. here to trade ul aus three, shelby mcfadden, senior analyst at motley foolxd asset manageme. shelby, welcome back. let's start with microsoft, why don't we? >> sure. you know, microsoft is a buy fo■ me. that's b+;cuse they'reçó a grea core, large cap, well ok capitalized, financially strong position. sometimes they offerjfñi ai] li bit of help when the market has come offe1 a bit or oversold bu now prevailing and getting over the hurdle with activision,i] tt

tells me the management can gox along with the initial man to continue to expand, reinvest, to generate income, to generate cash flow and appreciation for shareholders. so any time we see thexd elimination of that explicit or implicit cost of changing the strategy, ofçó hustling to try find a new way to invest andq expand in the business, that tends to pick up the outlook and that bumps the price as well. for those reason, microsoft is a >> theqçó behemoth is moreqçó behemoth-y. netflix, shares up particularly this week. >> netflix is alsou■ a buy. so you know, when we seee1 that from a third party data coming out, it is definitely positive and encouraging as long as netflix can continueok to keep their expenseym■xd run rate at that is lower than the expansion ñi

scale, then driving subscribers right? keeps me positive on netflix is that it is just really excelling at what they do, strong brand advantage, priciv8c power and a cash generative business, so they are able to finance a lot of their own expansion and growth with their operations, which keeps them from having to raise substantial amounts ofe1x capital. last, theyo$ç well positioned to take advantage of what hast( be a really saturated competitivej landscape. as?;■ peers and competitors sta to offloadñi content and maybe potentially stop running business, netflix is in!u■ a gr position to pick some of that up and to use that, to continue to drive subscriber growth in the future. it's a?;■ buy for me. >> it is one of those stocks thatc feelt$to me like a gotta have. it is a product you've gotta have and if you'ree1 trying to build a core portfolio this are

a few stocks that you would kind of say that ought to be in this somewhere and i think netflix fits that bill. as does apple and several others. let'se1 go to match group. where does this fit in your rubric? >> match is going to be a hold for me. it'sñr great to see]h some of t data pointing to the fact that runway when it comes to price for them. moree1 wiggle room. but it is still a wait and see. you know, as an investor, i need a little bit more proof that the value proposition is thereñie1 the businessçó model is strong enough to get through a weaker environment for their subscribers. it is really important to differentiate between just the absolute price of the subscription and the value that it offers. so as we go into potentially aj fatigue feels extra heavy, it is a question of what's the absolute price? you know, this is a small part y

does this offer, right? so match is a hold because i really need to see how sticwé■ this service is ande1 how much wallet share it will continue to take up, as i would go into a little bit more uncertainty. >> i guess utility could be the ultimate utility, right? we find love fore1 life.e1 that could be utility i suppose for a lot of people. i liked your phrase, what was it, subscription, what was that word you used, subscription fatigue. >> subscription fatigue. i'm enjoying that right now, honest limit i've been trying to cut away, chop through someq of the subscriptions, service plans, or news feeds that i used to be subscribe to, i find iñr need less and over (■time, they add up to more. add up to more. shelby, great to see you power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis

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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 welcome back, everybody. a check on thee1 markets as we' watching, nobody likes a friday during a period of a blanking crisis, maybe this is telling you, thee1 coast is t(clear. the nasdaq is down 3. first republic hadhb+q' public throughout much of the session turned negative within the past couple of hours. look at this.

down almost 4%. all the more impressive that the broader averages are holding up. >> one year down, 92% on first republic bank. we go into this weekend at the very least with no perceptible cloud hanginge1 this really like last weekend, everybody knew that creditfá suisse was going be the topic over the weekend and it sure i had turned out to be. it has been a very busy week and we're glad you were able to join us for at least part of it. thanks for watching "power lunch." "closing bell" starts right now. welcome to "closing bell," i'm mike santoli in for scott wapner, we're live at new york the european banking sector, rom although withw3 the s&p 500 up the day, and the week, the market firming up after the european market did close which leads us to the talk of the tape. should the stock market be more worried about the message comin3 from bonds following the fed's latest rate hike this week?