good afternoon. welcome to a busy monday on "power lunch" alongside kelly he

vans i'm tyler mathisen. we'll look at one positive development and also the area many are looking to as the next trouble spot. plus, tim cook visits china and is welcomed with applause. he praises the country for its innovation, but with tiktok's ceo getting grilled over his ties to china does apple get a free pass? let's check on markets with stocks higher right now. the s&p hanging on to a ten-point gain and the nasdaq down half a percent. >> some of the stocks on the move at this hour. dominic chu and kristina partsinevelos covering that for us. >> the banks, shocking i know, but the headlines are big. let's talk about first citizens bank shares, a north carolina company, a bank a lot of people haven't heard about but know about it today because they're going to take over silicon valley bank, a substantial number of their assets and loans. because of that we've hit a 52-week high in the shares. up 52% near session highs.

silicon valley bank is now going to be enveloped by first citizens bank out of north carolina. big move there. let's talk about the other regional banks. first republic up 10% right now pack west, 4% for western alliance, the west coast banks that got caught up in the failure of silicon valley bank. even charles schwab, broker dealer/bank holding company up 2.5%. first republic has lost 90% of its value since february. if you look at the regional bank stocks and etf that track those moves. the spied are kre has lost ability 30% of its value since that february high here. keep an eye, it's a long way to go. the major u.s. banks, jpmorgan chase, bank of america, citigroup, wells fargo and others positive on the session, although losing a little bit of steam intraday right now. for more on what else is happening let's go out to the nasdaq where kristina partsinevelos is standing by.

>> thank you, dom. the crypto crackdown continues. the commodity futures and trading commission filed a complains against crypto exchange binance causing crypto exchange coinbase to fall in sympathy. shares are over 10% lower. this is after the stock already fell 10% last week after the sec issued a wells notice it plans to file a lawsuit against coin over securities law, but the stock, we zoom out, 3% higher on the month. shares of roku up 5% after a susquehanna upgrade. roku which makes streaming devices and software, the analysts argue the bottom is in and that connected tv markets will only continue to grow. the stock is having its best quarter since q42020 but still 55% off its recent high. lastly, shares of carnival cruise lines are falling over 5.5%, reversing earlier gains this morning. the company posted a smaller than expected loss from q1 and a

big jump in bookings but investors are more concerned about the weak outlook for the quarter happening right now and full year losses. ty? >> thanks. great to have you back. news alert from the fdic on the banking industry and steve liesman has it. >> thanks very much. the fdic chair in testimony he will deliver tomorrow to senate banking says the financial system is sound and says it continues to face significant downside risk. those risk comes from inflation, importantly he says they come from rising interest rates, as well as geopolitical uncertainty and credit quality and profitability could weaken at banks due to these risks. as well banks could tighten their loan underwriting standards and slow loan growth. makes a point of saying more interest rate hikes could heighten unrealized losses at the banks. the fdic chair talking through senate banking to the federal

reserve. decline in deposits he says but the vast majority say there's been no material outflows. he says the banks are prepared to access discount window and bank chair funding program lending as needed to meet their liquidity needs. banks he said responded to zero interest rates by, quote, reaching for yield. what's important about this, he's pointing to the fed's monetary policy as part of a problem at the banks. michael barr, the vice chair at the fed for bank supervision didn't do that in his testimony and says regulators should review capital liquidity and interest rate supervision at banks with assets of $100 billion or more and regulators should review the methods of resolving banks of that size. as i reported today there's some question about whether or not the fed is thinking enough about the impact of the banks of its monetary policy and whether supervision is kind of like a poor relation to monetary policy at the fed. the fdic chair raises impact of

fed monetary policy on the banks and why we are where we are right now. >> interestingly, the phrase in there that banks were reaching for yield, right, usually when you do that it doesn't end well. >> no. and it hasn't. and sometimes, tyler, i remember from the 2008 crisis, sometimes people lost everything when they were reaching for an extra quarter or half point. the fdic chair points out the period of zero interest rates that followed the pandemic caused banks to take actions and those actions had to be reversed when the fed started hiking aggressively. we remember, only one fed official dissented during that aggressive rate hike period which was the kansas city fed, no longer at the fed and among the reasons she dissented was her concern about the banking industry. >> all right. steve liesman, thank you very much. after weeks of fallout and uncertainty in the banking system and space, silicon valley

bank, svb, finally has a buyer, but let's start with how we got here. two weeks ago, silicon valley bank over exposed to bonds, short of funds and experiencing a surge of withdraws collapses, gone. the fed backstops deposits, the fdic closes the bank, transfers all assets to the silicon valley bridge bank and now the fdic accepts an offer from first citizens bank, a north carolina institution, to purchase about $72 billion of svb's assets at a discount of $16.5 billion. let's bring in cnbc's.com banking reporter. how and why did first citizens get svb and were there other bidders in the process? >> there were other bidders. bloomberg reported on friday that, you know, valley national was another smaller regional player in this. the sense is we didn't dets -- there was an overwhelming rush of demand for this auction in that actually, you know, there

were a few, you know, auctions, you know, in the pipe. first republic is another ailing lender that had to be eventually had to get capital infusion or sold and so my understanding is that there are a few bidders out there that wanted to wait and bid on first republic because they found that pref ran shall versus svb. let's just take a step back and say, however, it is good that this auction got done, even at the price it did, and, you know, there was confessions that fdic needed to make to get this deal done and that's what it shows. >> how big is first citizens and we can look at the stock reaction of first citizens. it is way up today. how big is that company? >> that tells you everything you need to know because, you know, they got to cherry pick assets and don't to take $90 billion of the long dated bonds the fed is holding on to. they got a loss share agreement and a discount on the loans they did get, other assets still

reporting out. it's a top 40 bank now a top 20 or 25 bank. they are in the big leagues with this deal and kudos to them and what they accomplished. >> are they going to do a name change or anything? there's been a lot of sass about the fact that this north carolina institution is the place where all of these start-up people have to do their banking. do you think there's a risk of further deposit flight or first citizens going to make an effort to say the culture of svb as deirdre talks about you might have liked and enjoyed we're going it try to keep that culture? i'm curious. >> they made sounds about wanting to cater to the vc community and folks that were svb's bread and butter. is there a risk of deposit flight? there must be. as part of this deal they got a rather large credit line that is, you know, created to help deal with the potential flight of further deposits. the issue being a lot of these are still over the 250 fdic cap

so when these businesses and vcs bank with them they have too much to be covered. >> is it clear whether those uninsured deposits are protected? the fdic's press release made it sound like only the existing 250 k cap would still apply to all of those deposits. >> it's unclear because, you know, on sunday, march 12th when they announced the depositors would be made whole is there a time limit on that? would the entity, is that now elapsed? it's unclear. >> yeah. >> i think that's some of the uncertainty why they created that line for citizens to have. >> great point. >> the fdic was going to cover the uninsured deposits for the time being but the clock may have expired is it. >> that is possible. i only say that because why else would they create the special credit line in anticipation of potential deposit flight. that's certainly a concern here. i don't want to get ahead of our skis here, but that's a risk. >> yeah.

it's well said and hopefully find out more in the next couple days with more of these regulators on capitol hill. hugh, thanks for now. if the withdraw slowdowns is a good sign, office in particular where values have been falling, diana olick is here with the latest. >> reporter: kelly, most commercial real estate has dropped in value simply because higher interest rates make borrowing costs higher limiting investors' ability to make deals. the expectation is that value will drop further and that, of course, hits the banks. fdic insured banks hold the largest share of cre mortgages at $1.7 trillion, 13% how the cmbs. 70% of this is held at regional and community banks. this year and next, there is a huge pipeline of commercial mortgages hitting maturity that immediate to be refinanced. the biggest concern, of course, is office. of the $270 billion of bank held

cre loans maturing this year, about $80 billion, 30%, are in office properties according to trepp. property owners who need to refi are up against higher borrowing costs and lower property values as investors lose their appetite for real estate loans. deal making i'm told has ground to a halt and the cmbs market is largely shut down due to lower values and fear of more bank failures. experts tell me there is no capital out there for office. back to you guys. >> wow. thank you. our next guest also concerned about this area warning commercial real estate and office in particular could be the next shoe to drop. greg zuckerman a writer at the "wall street journal." good to see you. only thing i can hope is that there's way more due diligence being done than perhaps there was for the other loss and those issues. when i asked a friend of mine on wall street, okay f we have the losses on office what should the banks do? i don't know. they can't hedge it. if you sell it you realize the

losses which becomes a problem and perpetuates the cycle. raise cash, that destroys profitability in the long run. so, you know, yes, it's an unknown, but it's not clear there's a lot vulnerable banks can do about it. >> veterans like steve and yourself, we think about 2008, there's issues with housing and concerns on the part of banks and others but probably baked in. that's what the bulls said. then a realization there were concerns. similarly, now we're looking at interest rate risks at institutions and commercial real estate. the issue is, you've got two big lenders, signature and svb in the market, higher rates, people have leases coming due and realizing they don't need as much space as they expected or needed a few years ago, so is that the next shoe to drop? that's what savvy investors are looking, where the, po -- exposure is. >> you may end up with rising

vacancies, but rising refinancing issues. how are lenders going to confront that? are they going to be able to? and then in the secondary market, will there be enough investors to buy packaged loans to keep this whole machine running? >> well, the market we're looking at to see where things are going is the debt market and how open is it for lenders and borrowers and investors. there's concern. we haven't had investment grade rated bond deal in over a week. junk bond spreads are wider. they're not at levels where it suggests real credit risk, but you get concerned in terms of the impact for the market if it goes to a credit risk. >> so there's names analysts always kind of look and say who has the biggest exposure in terms of their loan book to office in particular here, and i

think bank of marion comes up, bank of the ozarks, [ inaudible ] on march 1st the companies which both have a significant amount, merge. so does that fact make it less likely there's going to be a shoe to drop here, that everyone can kind of pore over this and executives and the rest are thinking through what to do about this exposure and how to manage it? >> yeah. i think so. a lot of stuff is priced in. talking about it. not a shock to investors. yet, i think the analogy of 2008, not exactly like 2008, there are different risks but took about a year for some of the risks to flow through the system. and i believe that we're going to have about a year or so of concerns that maybe it's a bank or a broker one week, and insurance company or different type of institution the next week, and the issue isn't necessarily just stabilizing the system, but the impact on the overall economy.

so if you get lending that's pressured, investors getting kind of concerned, maybe the system stays stable and we're all hoping and our fingers crossed so far so good. the market is up for the year which is great. in an economy that's pretty strong on unemployment is great, but you wonder about the impacts and already you're seeing in terms of the start upworld we did a good story today about how the impact of svb is impacting the start-up lending and those kind of companies, so you worry about the economic impact as the next domino. >> with caterpillar and united rentals downgrade today. >> take us through a couple numbers that might come to mind on how exposed some of the regional and mid-sized banks are to these commercial real estate loans? >> well, commercial real estate but also just a general idea of ultimate maturity. you don't worry about these things, just like svb, you always have a concern that they are holding long-term debt but a

whole in the balance sheet to tell, people get exposed and investors start seizing and focusing on it. all kinds of names people are suddenly e-mailing. you have to look at this one and that one. big names i don't want to mention them frankly, environment where you want to be a little bit careful, kind of spreading concerns and rumors kind of thing, but the kind of thing where savvy sophisticated investors are pouring over the balance sheets and seeing and focusing on concerns a few weeks ago they weren't. >> the risk officers whether a bank or insurance company or endowment fund, they are digging through their portfolios to see what their risk exposure is. >> what we've learned from svb, sometimes it comes too late for those guys. >> always good to see you. "wall street journal." coming up, elon musk, you've heard of him, says twitter is worth less than half of what he paid for.

one of his key revenue plans seems to be backfiring. we'll explain that. oil rising lifting energy stocks how do we show strength and stability? (eagle call) a mountain? a tree weathering a storm? (thunder) lions? nope. (lion rumbles) we do it with our people. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back to "power lunch." it's time for tech check and we've got a bunch of tech to

check with deirdre bosa today. starting with twitter where elon musk is claiming to have lost more than $20 billion already on his investment but users may be lose something more valuable the blue checkmark. is this the way to jump start the valuation growth to $250 billion he promised? >> that's right. that says where he says where twitter could be in a few years from now. the latest valuation, $20 billion, so far cry from that. in terms of the blue check marc it's the legacy, you and i, organizations, people who got that for free, and this is sort of indicative of where he's trying to turn the platform. not for us really anymore it's for mainstream users. i was listening to an interview, an influencer creator that has 140 million subscribers on youtube, 20 million followers on tiktok saying he actually likes the blue checkmark you can pay for it because his comments he can sift through them. people who will pay are likely to leave substantial comments

and not abbott. i understand what he's trying theerds, $250 billion eventually is a steep price for twitter. steep valuation considering where the rest of social media is like a snap at $18.5 billion valuation with many more daily and monthly active users. >> what's your backup blue check plan? what are you going to do and supposed to do? >> nothing. what are you going to do? >>. >> i don't know. am i supposed to care? is it a problem? >> i don't know if we're supposed to care. i don't, sorry to say. >> all right. >> i would say the problem goes away if you're not on twitter, which i'm not. >> tyler will be right in the end. >> let's move on to a.i. which is topic deli reports out that microsoft is concerned that other search engine providers like yahoo! and duck, duck go might be using bing's search results to aid in

creating or fortifying their own chat bots. explain this. >> so this has to do with search engines essentially a map of the internet that you can scan in real time. so, obviously, it's bing and it's google that have access and run these. some of the smaller chat bots like you mentioned duck, duck go, yahoo! u.com they use the search engines. google has more restriction so it's harder to do so, so then they go to bing, microsoft. now microsoft is saying hold on, we don't want to let all of our competitors have a leg up even if they are smaller so they're saying it's going to be against the rules for them to do so. the bottom line here, is that the a.i. race for search, it's on. it's on. we knew this. we know that microsoft wants to make google dance and they will be protective of what they have and let others use. >> finally we have to mention

the interesting sentiment undercurrent going on with tiktok. after the ceo was on capitol hill and everyone said a terrible hearing for him, on tiktok there's this kind of wrath of people coming out in support of him, u.s. users, implied he's getting a bad deal and congress is out of touch. i'm curious what that will mean for the crackdown of tiktok? >> this should have been evident before the hearing started and what is surprising is that there weren't some lawmakers who wanted to go out and be on the side of show zi chew. you know, obviously, it is a huge phenomenon among a younger generation that will be voting in the next election. there was a lot of influencers a lot of supporters, someone here even, i won't say who, said their friend group was saying, you know, he's kind of a celebrity now. people were talking about how charismatic, looking at him right now, that show zi chew is, who has been able to defend tiktok, not very well, but, of

course, that goes back to the product and the younger generation still loves it. >> the theory is maybe for democrats in particular, because young voters are more of their base maybe stlefl a softer touch here, i don't know. >> you've seen a few come out and say, you know, that it doesn't make sense or walking back a little bit or adding more nuance. >> all right. deirdre, thank you so much. deirdre bosa for "techcheck." further ahead on the program tiktok's ceo was grilled on capitol hill as we were discussing, the company's china connection, apple ceo tim cook spent the weekend visiting beijing touting his company's relationship with china and face nothing pressure from lawmakers, nothing pressure from lawmakers, spurring new debates over the

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market flash on chipotle. it's great to see you again. welcome back. >> kelly, thanks so much. chipotle workers united announcing this morning it settled with chipotle for $240,000. this after the national labor relations board found the company violated the national labor relations act when it closed an augusta, maine, location as workers sought to organize last year. workers will receive pay based on their hours work, longevity and prooir to the store's closure? response chipotle said we settled the case not because we did anything wrong but the time, energy and cost to litigate would have outweighed the settlement agreement. we respect our employees' rights to organize under the national labor relations act and committed to a fair and just working environment that provides opportunities to all. so far one chipotle store in michigan has organized successfully with the teamsters union and the stock higher by 2% today. back to you, tyler. >> great to see you. big jump in treasury yield today. let's get the explanation from

rick santelli in chicago. >> he yes. tyler, big jump in all yields up over 25 basis points in the 2-year and as you look at the intraday chart you can see around 1:00 eastern a very soft 2-year note auction pushed yields up higher at a time where there's a lot of nervousness out there, but nobody stepped up. that's interesting. and if you look at what's going on in 2s in a bigger picture after the big jump in yields we are still hovering at areas we haven't been at since september. if you look at the 10-year, well, it's the same scenario, sent for on the other chart on the left we started right around 3.25, how much they moved today. 3 months to 10s what everybody is paying attention to at minus 123, six basis points away from the recent extremes. four-year database has never been as inverted in my database as it is now. kelly, back to you. >> just incredible. after all we've been through. thank you.

oil rising by more than 5%. the energy stocks too. this is a huge jump. what's driving it? >> huge jump seems to be a broader sentiment in the market but goes. they had disruptions, about 450,000 per day. it does seem to go beyond the supply and demand scenario and over at private wealth says this has to do with negative gamma in play on the way down and in play on the way up. dealers have to sell as crude went lower and buy more as it goes higher and those are exacerbating the price swings we're seeing here. energy stocks are in the green and the best group today. this volatility does remind me one thing pioneer natural resources said which is that over the past two years hasn't seen generalist investors enter the energy space because of swings in commodity prices. and with oil going from 70 to 130 and then to 60, back to 72 in the span of a year, it kind of just means that general

investors will say i don't want to bet on the direction of oil. >> how about natural gas? >> down big today nap contract does expire. the more actively may contract holding up better as we head towards expiration, but comes down to production. production is higher than last year and we are seeing a slight response from producers. they create their budgets months, years out and since the price decline, they haven't been able to meaningfully adjust their production. to contessa for an update. >> here's what what we're looking at right now. a rough scene in nashville, new details about a school shooting that killed at least three students and now we know that at least three adults have been killed as pell by the shooter who is dead. the shooter identified as a 28-year-old woman. she was armed with at least two assault rifles we're told and a

handgun. it marks the third school shooting this year according to nbc news. president biden has been briefed on the shooting and in touch with the justice department according to comments from press secretary karine jean-pierre a short time ago in her regular briefing to reporters said the president wants congressional republicans to step up and support an assault weapons ban biden expected to address the shooting at a previously scheduled jooents lucid motors recalling about 600 air sedans over a defect that can result in the loss of power to the electric vehicle's motor. we'll follow that for you. >> thanks very much. and ahead on "power lunch," the dow rising near the highs of the day. the day. but the nasd is stillaq lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected

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welcome back. markets breathing a sigh of relief as we made it through the weekend without a worse move for banks. it's not a rip roaring relief rally for the regional banks

either. >> we've called down. the volumes are lower which is good. the vix has been moving down which is good we need a new paradigm here. remember what's happened this morning. tech has been a big advancer, tech a decliner. yields moving up and tech is under a little bit of pressure. nvidia, microsoft, apple have been gigantic movers this month up 8 to 15%, but that's looking like it's running out of steam. as kelly mentioned banks have been big losers down 25, 30% some of the big regional banks, moving up today but damage still being done. what we kind of need is a new paradigm in a way. a lot of stuff in the middle has been languishing. a lot of cyclical sector, big industrials have had a terrible month. caterpillar, deere, you know, your usual global narnlgs they were down 6 to 10%. this sort of looks like we're languishing in recession fear land. same with other cyclical names,

material stocks, your usual suspects. mosaic or steel companies, newcour down the same amount. this is not reits. we're talking about important parts of the core of the stock market. what we need here, we're going into the second quarter, we need to sort of get some kind of new idea going about where -- what, if any, recession we're going to be having and i think the bulls are hoping a little bit more stabilization in the cyclical names. >> thank you, bob, very much. while stocks are trying to add to last week's gains we're not seeing a re leaf rally today. the s&p regional bank index up 1%, down close to 30% over the past month, so is the coast clear nor banks and what does it mean for markets in the future, let's talk markets with lisa, head of the public markets group at u.s. bank wealth management. lisa, welcome. good to have you with us. in your words, you are cautious

on u.s. equities. why? what's the biggest factor making you so? >> we're really cautious on the back of tough, overall factors both in the economy as well as with what's going on policy wise, so if we just break it down briefly when we look at our trend indicators across the u.s. as well as globally what we see is the activity remains muted and we're not seeing much pick-up in trends. if addition while inflation has come down to some degree it still is valtsed and that's really -- elevated and that's leading us to the tough spot in terms of policy where fed officials in need to be biased towards tightening and watching the impact on some of the financial stresses that we've had lately. >> if i buy your case and want to play cautiously in the markets today, what is a solid sound way to do that? is it to go with defensive

equities or is it to tilt more into t-bills and treasuries? what's the more savvy way to do it? >> we're really recommending that clients look at a diversified source of cash flowing investment so that would include their ongoing solid commitment to fixed income where we have some very nice rates right now offering income and then in addition to that, another category called real assets, which really represents underlying bets on both real estate as well as global infrastructure. sects that offer very attractive dividend yields and a lot of times more stable ongoing income flows just because of the nature of their businesses. >> so you don't think they're going to start cutting rates here or it doesn't matter? >> certainly in terms of what may happen in terms of rates, it definitely looks like we're closer to a pause or a pivot

certainly than we were months ago. and so what we really think that means is while we've got some very attractive rates on the short end of the market, to not just stay too short, but really look at making a maturity structure more close to that, that as a benchmark, so if the fed does again pause or pivot, you can capture some of that positive price action on the back of session action. >> absolutely. you know, short term looks great until your 6 month bills mature and you get half the rate. >> thank you. >> tim cook toeing a fine line visiting beijing when u.s.-china relations are on edge. we have more details and we'll discuss that next. throughout march we're sharing those of our teammates and contributors. here's rebecca.

>> i always thought someone else would notice something we needed, but what i realized we have to demand what we need and we have to have a bit of fearlessness about it even if we're scared, whether that's demanding better work environment or a better pumping environment or equal pay for, you know, the same amount of work and experience. no one is going to do this for us. we have to be a little bit uncomfortable, stick our necks out and fight for what we wtan

tim cook making his first trip to china since the pandemic. he was one of several american business executives attending the china development forum. meanwhile, congress grilling the tiktok ceo over ties to china. let's talk about this with technology correspondent steve covac. i guess some would say there's maybe a little bit of hypocrisy that congress doesn't spank tim cook for doing business with china and it is very inclined to spank tiktok over its ties to china. >> exactly. >> they're not -- >> let's keep with the spanking

metaphor for a second. china has been spanking our apps and services for now. >> spanking our apps. >> you can't use facebook in china. i guess the question we wantí!cj want to be like china and ban tiktok or is there another solution and middle ground? >> we're not banning tiktok. what's the other one? three of the top five -- >> this would open -- >> it's not like we're not open for business or chinese technology. we can't ban the -- >> don't forget three or two and a half years ago we we chat, th would be almost more significant of a hit. >> wechat -- >> you asked me too fast -- >> meta. >> whatsapp is not there but wechat is their facebook. >> this is a big question, how does apple guarantee that the handsets that are made in china

are safe and not -- >> i was talking -- >> contaminated. >> we talk so much, tyler, about the software, right, but don't talk about the hardware. there are processes throughout the supply chain so they can track each component and make sure it's in the right hands from the time the chip is spun up in the factory in taiwan until the time put in your iphone. they have processes in check to make sure that doesn't happen. >> so let's go back to the thing we started with, that is, cook making his trip to china. what was the development forum and how was he greeted is this. >> he went to the beijing apple store last friday, people cheering and smiling. he does this photo ops any time he goes. eunice was at that conference in china behind closed doors, and he didn't do a keynote speech. he -- eunice described it as almost a ted talk of tech in education. you can't think of anything more safe for him to say in china. his goal to go there was to say

nothing. nothing that would anger -- >> he knows his appearance there itself is the most important and the chinese paint that as a great victory and they're using it as part of the propaganda issue. a lot fewer ceos have shown up this year because they're concerned about the optics of u.s. u.s.-china relations aren't at a great place. it's more significant he would choose to go. i don't know if it can't help to come off to the rest of us they are dependent on china right now because it serves the chinese more than it serves our interest. >> where the money comes from. 20% of their $117 billion in revenue in the holiday quarter came from china not mention most of the phones are made there. china needs them too. tens of thousands of jobs every year are provided for manufacturing in china by apple. so they kind of need each other at the same time. if we can't to get into is there going to be a tit for tat if the u.s. blocks tiktok does that mean they'll hurt apple? probably not. they need apple and those jobs.

that's a huge stability for their growing middle class there. >> absolutely. >> spanking our apps. >> that's a new one. >> i love that metaphor and keep using it. >> still to come, we'll talk about caterpillar's downgrade at baird, slow down in (woman 1) i just switched to verizon business unlimited. it's just right for my little business. unlimited premium data. unlimited hotspot data. (woman 2) you know it's from the most reliable 5g network in america? (vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today. asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®.

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it's timefá for "three stoc lunch," and today we're sipping on some big analyst calls, epocially caterpillar, which was downgraded to underperform at braid. roku, higher, and pinterest, higher on an upgrade to buy at ubs. is the managing director and chief market technician at oppenheimer.lp let's start with caterpillar, a host of reasons cited for this one that aren't exactly encouraging fromxd ahmgcro poin of view. and the stock is down. >>d 'fá an equal weighted é@■basis, the sector i coming off a multi-decade relative high, so there are some exceptional strength in this sector that argue that macro q8onditions weret( stronger tha many have let on to.e1

i'm not sure if those excesses have fully reset. for those reasons, i would be more selective onçó thisñr pull. caterpillar's not necessarily the onexd i'd be keying on righ here right now, but i 'ew1 argue that correcting the 200-day average, the tactical opportunity is probably even to upgrade the stock. i know where i'mñr wruéú,jf $21 that support, use+■ that as you stop. i would be lookingu$k to reducì% a bounce in the $240 4hñresista. >> let's move on to roku. whatko■w3 do you thinkçó there? >> yeah, so, here's one that is now underperformance in 2022. to me, this is aok beta trade. you got to bug@%t right, sell it right. that sounds like a headache to me. so, be i don't have much conviction on this for the long-term. here are the levels to watch if you're fundamentally inclined. above $67, that would be añr breakout in the stock. that would put it above thexd

200-day average for the first time in over açó year. conversely, a break below $60 would be damaging and indicate some trading riskc has risen. >>ñi finalvye we turn to çó pinterest, some momentum. what would you do? >> this one's farther along the processi] as we think about the names that have fallen sharply>o from their + k levels from xd 2021. i would@jq+hpá these levels, to manage risk. the stock is coming to a test of its january peak, marking $29. the trend argues for a breakout over theok coming daysñi to evee coming months. with that said, here's a stock that could trade all the way down to $23 and still uphold itd 200-day average so looking to buy this one on a fádip. >> all right. thank you. >> thank you very much. lp all righty, another potential dowide ofns

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americans azm hunting for yield, but that could bir hurtig the economy. dom chu has the why. >> if you take a look at the overall picture, there is this view overall that if you look at the positives as a way to talk about what's happening, it is a little bit curious to look at some of those moves. what we're going to show you

right now is deposits as a share of gdp, and this is basically comin■i from the chief economis private equity firm. that red trend line, and what you're seeing in that red trend line is the overall move tha,do we've seen in deposits as a look at #tf over time, it follos that line. the spike is the pandemic when a lot went into deposit accounts. nowñr we'vexd driftedok below t trend line, and what it might suggestt( is that you're seeing more peopls3 take moneyfá out o bank accounts and put theme1 in money market funds as a way to take advantage of what's happening right now withr and for theokiapercdkved safety those deposits as opposed to beinge2rxd in bank accounts and rather in u.s. treasury securities. if that were to play out, one of the things that he observesxd i tha2á it might actually increas the marginal difficulty of

consumer s0w 9 not immediately liquid. you can go to a checking account and just use a debit card, swipe, and all of a sudden, everything k but overall, if you take a look at the picture for the reason why itq matters is, is there going to be a bigger slowdown in consumer spending because people have to move money out of money market accounts because they're mutual funds. you got to put ae1 sell order i them. >> take a few days. >> everything else happens, does that sloww3 down or tap the bras on that consumer spendingi] picture?xd qzez gdp.ñi rising, rising, rising. >> if you look at the chart, y( bottoá dot com crisis, around the peak in 1999, and ever since that, it mightq actually -- and some people will debate this -- it might indicate propensity for people to save more,e1 be lessúo

riske1 savvy. >> it's hard when people say kd8sidelines? >> what happens now is whether that casp■á isi] deployedfá for investing or consumer spending or just moves toward money market fundsé@?ñ( as a general orñi paradigm. >> michael tweeted aboutw3 this. u.s. wealthy saving as well, pandemic accelerated that. 1z>> good to be bac. >>ht■ thanks for watching "powe lunch," everybody. welcomeñi to the closing çó, i'm scott wapner. this make-or-breakt( hour begin with stocks and bonds telling two different i]stories. yields have been fallin!]i] as e recession si2g equities, on the other hand, showing resiliency. here's yourt( scorecard with 60 minutes to go in regulation. green across