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how their customers' behavior has changed as inflation goes higher courtney let's give you a check on the markets. stocks are lower here, but the dow jones industrial average is down just about a third of a per sent walmart, of course, is in that index. s&p 500 down .2 of a percent and the nasdaq pulling up the rear, about half a percent united health is weighing on the dow, one of several health cares hit by blue shield of california more on tie-up is coming up. as tyler mentioned, of course, walmart shares are trading lower despite beading on top and bottom line for second quarter the retailer raising its earnings forecast, fuelled by growth in grocery and online sales. earlier on "squawk on the street" i spoke with the cfo to talk about the strong quarter. >> it is one of the exciting things about our performance this quarter, is the share gains that we had. it was broadly across all categories we have seen for four, five

quarters here we have been gaining share in food and grocery but we expanded into general merchandise and consumables in the latest quarter. it demonstrates our value proposition is resonating with customers. >> let's get reaction from greg malick, retail analyst at evercore isi he has outperform on walmart and there $175 price target. when you look at the quarter there's a lot to like if you are bullish on the stock, but the stock is lower in the session, if modestly so is this a sale on news that expectations were so high going into the quarter >> i think you nailed it target is losing some share and walmart has been gaining some share. i think people were positioned into the support, you know, very much in that direction this is a little bit of an unwind for both stocks frankly yesterday and today. i would say for walmart what we were really impressed which was that consistent and slightly

accelerating traffic growth, and as they get those new customers and they come more frequently that's how they can reinforce them to me that was the real underpinning positive out of the walmart print today. >> greg, it just seems to me that to that point grocery is just really what is going to make the difference here in many cases, to get that guest traffic frequenting the store more and then hoping to move into some of the other categories because discretionary was still soft for them like target but unlike target, they saw an increase, at least from the prior quarter. >> i think you hit the nail on the head if you've got the customers, if you have traffic, it is always better to have a chance to at least keep it. so, yes, general merchandise might be down for everybody right now, but if you are winning more customers and you are winning on not just value, and i think your great interview with john david before, you know, he also mentioned convenience. it is not just value anymore that walmart is going on, it is convenience. as they broaden their e-commerce offer, as it gets better, as

delivery speed gets better, as they add sellers to the marketplace, they are finding customers are willing to shop with more in more than just grocery. right now cyclically it might not be great, but you're building it for when it comes, whenever that recovery is there and then that could give them the extra boost in sales and profitability. >> greg, you mentioned earlier walmart is attracting some, quote, new customers who are the new customers? it is not as though walmart hasn't been around for a while >> yeah, it is a great question and i think what it is, is they spent upwards of five or ten years now really doing a lot of underpinnings to make their omni channel offering really differentiated it is coming together now as a point where as consumers are searching for value you've always had that at walmart, but as they're getting the rest of the e commerce system working well consumers want to go there. they realize the assortment is great, the delivery times are getting better and better, and,

you know, the beauty about e-commerce and we have liked amazon for a long time, is that it does unlock you to a different customer base. so, you know, walmart has 90% of america shopping there at least once a year, but they have very few super centers in a lot of more densely populated areas or even suburban areas in california and the northeast as you start to develop e-commerce you can unlock new markets that are effectively white space. >> very interesting. so in other words it is that e-commerce customer who is the new customer maybe in the new york metro area, maybe in new york city where there aren't so many of the super centers as compared with maybe virginia or north carolina those are the new people who are coming in? >> they're certainly a big portion of that. i don't want to say exclusively that >> right, right, right >> but i think what it is showing you is looked at another way, if walmart's market sale in u.s. retail sales is 10% nation

wietd wide, those states with the best super centers their market share might be 15%, 16%, 17%, and other parts of the country the share might be only 4% or 5% as e-commerce was growing almost 26% in this quarter, that's almost more than double overall usd commerce growth. that shows you how they're getting it >> they're always compared to target what does target need to do to close the gap, let's say >> well, you know, it is funny i just looked at the numbers the four-year comps for walmart are up 30 and for target up 31 i think what you saw this quarter is what had been a gap of about 1,000 basis points where target had won so many new customers during covid, what you saw was this year so far a lot of that, if you will, going back they want to look at that simply more importantly, i think what they're doing is they're getting the whole omni channel right, which is you're focused on value, you are focused on

assortment, and i think for target it is really more of an issue of, granted, they've had their own merchandising mishaps that they've talked about and i think it has hurt them you know, not having the right product in the right stores that your guests want doesn't help your traffic >> yes, and obviously the stocks are di verging here as the results are starting to differ pretty markedly this quarter thank you for joining. >> thanks, courtney. target becoming the latest brand to report a hit in sales after a social media backlash, this one involving pride month merchandise. what it was, how and where it was displayed, et cetera and bud light, famously became a target of anger and boycotts following its partnership with a transgender influencer today analysts at bernstein writing about how companies should handle the tough situations that emerge when brands get involved in social issues joining us now is nay desarwat, bernstein analyst covering

european and american alcoholic beverages. nadine, welcome. good to have you with us i guess the key question is how can companies thread the needle between trying to attract customers who may be members of minority groups just to use a broad term, whose membership in that group may not be popular with, for example, their core customer how do they thread the needle? >> i think you nailed it on the head right there if we take the bud light example, blow it out, look at it more generally, i mean it is not the first time that we've seen companies miss out on a core demographic and it actually coming back to bite them so, for example, if we go back 20 years diversity, inclusion, esg perhaps less part of the mainstream discussion, but beer missing out on appealing to female consumers is actually one of the reasons it is losing

share today. what we can take away from the experience is that diversity and inclusion from that angle of esg actually has real financial consequences so if we apply that to the bud light scenario today and if we look at the demographic splits of, let's say, lgbtqia+ community exists, bud light for example in particular, one can understand why abi would want to appeal to that type of consumer, especially seeing bud light has been declining for years crucially, you know, what can we learn for cpg brands more generally in america today that you simply cannot move faster than your core consumer if we look at nielsen scanner data we see bud light is disproportionately consumed on a per capita basis by men in republican-leaning states. if we also look at research, for example, by the pew research center, we know that republican-leaning americans view greater social acceptance

of transgender individuals more negatively than their democratic counterparts gr regardless of your personal opinion here, choosing something that does not gel with your core consumer, you are absolutely right, is a challenge. >> i hear you on that and i hear you saying very clearly to brand managers at whatever companies, never forget who your core customer is and remember that their sensitivities and sensibilities may be of a certain type and you don't want to alienate them but let me ask you this. in the case of target, we had on jen niffen yesterday, a retail specialist he pointed out that target, which as courtney reported, mentioned the backlash over their lgbtq+ and transgender merchandise. jan niffen pointed out that target has been carrying and

celebrating these kinds of days for a decade or more why did it bite them this time today? what's changed in the culture or in what target did to cause the backlash that they received? >> well, i think, you know, more broadly when we look at these issues or situations, whether it is target, whether it is bud light, there are two pretty big things that are a little bit different now days first is the huge presence of social media you know, when we look at the bud light scenario and very similar for target, what happened was the incident occurred, partnership with an instagram influencer or a tiktok influencer, i should say, or a display in target was picked up by consumers and blown up by celebrities before even management decided to step in, calm it and clear up the situation. so i think that's the first difference the second big difference, let's bear in mind, we are headed into an election year

at least when it comes to these hot-button topics that means you will have politicians getting involved with bud light we had senator ted cruz, we had governor ron desantis all weighing into the debate that makes the situation different. >> nadine, you bring up interesting points and i think about the companies that are coming out with what they believe are good intentions to help bring in customers that maybe didn't feel as good as they were before, but when they switch sort of mid campaign, target has told us, brian cornell told me yesterday they made adjustments and that once they moved the merchandise or removed some of it in some stores that they saw business normalize, both in sales and traffic. so then doesn't that sort of send the reverse message >> well, it appears when it comes to the cost of switching, if i'm used to doing my weekly, monthly shopping at target because it is close to me and convenient, switching to another retailer is actually far more

costly, whether in terms of time or my preferences than just showing up at the beer aisle and saying, you know what? instead of bud light i'm going for coors light. i think that's the key difference here, switching beers is far easier a decision than switching retailers. >> this is a fascinating conversation i want to leave with one final question and that is this. do you think that the experiences that target has had and that bud light has had will make other companies more hesitant, let me put it that way, to feature products or do marketing that is aimed to attract people from so-called minority or marginalized or other controversial segments of -- sometimes controversial segments of the population >> let me give you the typical analyst answer, it depends if you are doing those

initiatives that lean into those either minority or underrepresented groups and that is part of your brand identity, that can actually drive better a classic example absolute vodka has been leaning into lgbtq ai plus communities for year. it has never been negative for them because it is part of the brand identity you have to ensure it comes back you cannot move faster than your core consumer. >> interesting in. in some cases it won't affect them at all because it is a part of the brand identity. in other cases it may not be part of the brand identity and there the corporate management has to be a little more savvy, a little more subtle, a little more nuanced perhaps nadine, fascinating conversation i hope we get to have you back soon >> thanks for having me. >> yeah, that's certainly not the end of that conversation and it is one worth having former bed bath and beyond sister brand buy buy baby is getting a new lease on land.

the group that bought the rights to the name plans to reopen 11 stores this fall with many more potentially to come. joining us is the reporter behind the story gabrielle, it is great to have you with us. give us a synopsis of what you have learned and, of course, we will drive folks to our website to read the full report. >> absolutely. the operator that bought the buy buy baby trademark at auction, they realized doing it online only isn't going to really work. it is going to be really hard to differentiate themselves against the other retailers online, amazon, walmart, that all sell baby goods once they finished up the clothing, got the trademark and the data they decided to start with reopening 11 stores they had secured 11 leases that buy buy baby had had during their lease auction. there were a lot of auctions during the bankruptcy process. now they want to get up to 100 to 120 stores over the next three years which is a really ambitious plan. >> if you are a consumer that previously shopped at buy buy baby and you go into the

new stores, do you have a sense of what may be the same or what may be different, what their strategy is? >> yeah, absolutely. so in the 11 stores where they will be reopening, those are former buy buy baby locations. so they're going to be about the samesize the locations to come, they're leaning into a bit of a smaller model. they don't need to be as large if they're opening up one in manhattan that will be a bit smaller and they will lean a lot more into experiences, displays events instead of walking in, trying out a product and walking out, they want it to be a community-building space which is really integral for the market and the new parents coming in there. it is also so important from a competitive standpoint you know, people could walk into target and walmart, buy a stroller and walk out. what they're going into buy buy baby for is the expertise, the community, the knowledge, that kind of space where it is just for new parents. >> very interesting. in is, of course, after babies r us reopens under new owners, at

least one location at the american dream mall. sort of a reemergence of baby brands and retailers gabrielle, thank you for joining us if you want to read the full story go to cnbc.com to read her entire report. >> i have to say i miss storts like buy buy baby because it was a point in time in your life you go in and you're going to miss this. >> i'm going to miss this, i know it is going too fast and my daughter is not even walking yet. >> yeah. the baseball bats are a lot more expensive than the strollers, man a shake-up at the pharmacy a big move by california insurer. what it means nor the stocks and for drug prices. plus, shares of hawaiian electric falling sharply once again today. why one analyst says the latest incident should change the way investors look at investing in osstier companies. the ors coming up on "power lunch."

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shares of cvs health plunging today new fs blue cross of california dropping the company, dropping it as its pharmacy benefits manager. turning to two pharmacy disrupters to save on drug costs. this is big news bertha coombs has it bertha >> it is part of the trend we are seeing nonprofit insurer blue shield of california has used krfts as the manager for years and the pharmacy networks for 20 years now it is shifting to low-cost payers to help its 4.8 million

members save money they're signing with mark cuban's dug company which sells drugs at 15% over wholesale and amazon pharmacy which this week launched a $35 insulin program paul markovich says it will save customers money and the transition will start in 2025. >> i expect we are going to -- when this ramps up completely we will be saving $500 million a year i think if you apply that, we spend more than $600 billion a year as a country on drugs if this were to be applied across the country the savings could reacheasily $100 billion >> what is interesting is amazon has signed about half a dozen blues cross blue shield companies. blue shield in california is the second health insurer to sign with mark plus i asked mark cuban how hard it is to win them over. he told me there are bad habit to break but they need to realize the prices are transparent. the industry will have to

adjust blue shield will continue to use cvs for specialty drugs which account for about 50% of drug spending, but shift to prime therapeutics for the benefits side of the contract analysts estimate losing that will represent a 2 to 6 cent hit on cvs earnings in 2025, which is not a significant amount but you also have to know that cvs already lost a major account starting next year, rival cigna and express scripts are taking that and that is ten times >> if you start to see erosion here, a pattern, then the 2 to 6 cents isn't just 2 to 6 cents. >> 2024 will be a bigger hit for them, but overall the pharmacy benefit managers and when you look at the three big, cvs health which owns cvs care mart and then you have cigna which now owns express scripts and then you have united health which owns optima rx they handle 75% to 80% of all prescriptions. they are sort of the middle men

there. there's a lot of push back from smaller players like this trying to find better prices and in congress there are three bills in the senate trying to get at their business models for them to be more transparent, not take as much of a cut and to pass on the savings directly to the consumers. >> can i ask really quickly, mark cuban's is usually generic drugs and i thought the business model was we are cheaper than what the cost of drugs are with insurance. how does this change the price >> it will just pass on those prices to those customers and so if you can buy it with your insurance, then it goes toward your deductible. so even if -- you might have a generic, that could still be $300 which would be less than buying it at some of the other drug stores, but if it goes toward your deductible it is more helpful than if you are doing it in cash and you can't put it toward your deductible. >> it won't necessarily lower the price even further, it just goes toward the deductible

good for me to know, too >> thank you very much, bertha coombs reporting hawaii's power authority accused of years of mismanagement which may have led to the devastating wildfires on the island of maui we will get the latest details when "power lunch" returns what'? or what if i can do diabetes differently? (avo) now you can with once-weekly mounjaro. mounjaro helps your body regulate blood sugar, and mounjaro can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7%. plus people taking mounjaro lost up to 25 pounds. mounjaro is not for people with type 1 diabetes or children. don't take mounjaro, if you're allergic to it, you or your family have medullary thyroid cancer, or multiple endocrine neoplasia syndrome type 2. stop mounjaro, and call your doctor right away, if you have an allergic reaction, a lump or swelling in your neck, severe

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welcome back to "power lunch," everybody. the ten-year yield rising to the highest level since october. rick santelli joins us now with more october was a multi-year high as well, wasn't it, rick? >> absolutely. and we're talking intraday because if we are looking at the closing, which most technicians consider the priority with respect to inputs on their charts, we are potentially looking at the highest yield close in 16 years. let's start at the beginning, shall we let's look at a chart of the s&p 500 on top of ten-year note yields what i found interesting all session today was as we continued to move higher and hit key levels, when it popped above 430 or popped above 432 you could see the damage it continues to do to some of the equity side of the equation. and if we look at just the chart of ten-year note yields referenced by tyler to that october 24th level, you could

clearly see there we have moved higher let's zoom, zoom, zoom to the closing issues i referenced. we are now comping back 16 years. basically the fall of 2007 should we close at current levels what is really fascinating, of course, is that the inversion in the yield curve that was caused by short maturities doing exactly what long maturities are doing now. they were leading the chart but it has all reversed. as you look at this chart we are the least inverted on twos to tens in three months that's a three-month chart at minus 66 basis points. finally, listen, there's a lot of things i could put up that are showing prices and inflationary pressures within the economy that may have a channel in the ten-year note yields or treasury yields in general. this are is gasoline on top of ten-year note yields for three months they're definitely shadow boxing each other there's a lot of moving parts here but all prices seem to lead to higher rates as we see so many parts of the economy that

are stubbornly moving higher in prices from energy all the way out to the service side. courtney, back to you. >> interesting stuff, bill the least inverted we have seen in a while thank you, rick. as the death toll from the hawaii wildfire continues to rise, hawaiians are trying to understand what went wrong and increasingly they're looking at the local power company, hawaiian electric, for answers joining us now with the story, i know it is developing and it is tough, what have you learned here >> well, courtney, the fall out is continuing with shares down 65% this year. though the fire's cause has not been determined, indications that the company's power lines may have been involved have led to multiple lawsuits hawaiian electric is now reportedly in talks with restructuring firms as it explores options to address financial and legal challenges according to the "wall street journal. hawaiian electric declined to comment. amid heavy losses, analysts at guggenheim said the stock is

untouchable, adding there's little way to build a bull case with so much evidentiary and legal uncertainty. meantime barclays said the company's bond could be cut to junk in near future. taking a step back analysts at wells fargo noted it is the latest example of risks around operating electric utilities and wildfire-prone areas, particularly with aging infrastructure in the last few years utilities in california, oregon and colorado have been implicated in wildfires which the firm said could ultimately lead to investors imbedding liability risk for utilities that operate in high-risk areas wells fargo said edison international, sempra, norther western and xcel utilities is among the most exposed >> what are the lawsuits alleging >> i spoke to michael watts with one of the firms firing the case and it alleges gross negligence, specifically around failure to up great their equipment, essentially to harden their grid when they knew it was going to

happen that's one of the lawsuits other ones allege that hawaiian electric should have cut the power when they knew the high winds were coming amid very dry conditions hawaiian electric declined to comment on that and saying it would violate their internal policy we have yet to hear from them on that front >> pippa stevens, thank you very much let's get to julia boorstin for the cnbc news update that's right i'm julia boorstin here is your news update at this hour how judiciary committee chairman jim joshd an issuing a subpoena to citibank. he wants to know whether the bank turned over to law enforcement any information about customer transactions in the days surrounding january 6th. a source familiar with the investigation says several other big banks voluntarily complied but citi did not hawaii's governor is vowing to protect landowners in maui from being victimized governor josh green saying he will announce moratorium

tomorrow, one which would put a long-term ban on the sale of land that does not benefit local people he says he is going ahead despite the potential for legal challenges a small team of tree experts working every day in lahaina to help save the 150-year-old banyan tree. the state's lead arborist says he sees good indications from the tree and will know more in three to six months. but he says ultimately is a tree is a tree and the focus should be on all the people of lahaina. tyler, back to you >> all right, julia. thank you very much. we already discussed how inflation is squeezing customers, maybe me especially as a walmart customer, but what about luxury consumers what better place to find out that the hamptons? we will take you there for a live report when "power lunch" returns. the bond report is brought to you by --

are we in a rich session cost cuts and lay-offs seem to have largely hit bic tech and banking so are luxury consumers holding tighter to their crocodile skin wallets where better to look than in the

hamptons eastern end of long island, morgan brennan is sitting down with several morgan, take it away >> thanks, tyler i am joined by harvey and bonnie thank for being here i should note, no relation but a great last name, bonnie brennan. i want to start in a week where the consumer is particularly in focus as we talk about the stronger-than-expected data coming out for the economy, just want goat your sense, both of you, on your sense of the health of the consumer, particularly the higher end consumer which i know both of you service with your companies harvey, maybe start with you on the services side with equinox >> we see no slow downs. the data is strong but we are seeing record performance. for the first six months of the year we had our best six mons in terms of new membership sales in history of the company july was our best month ever by 25%. in the last day of july was our best single day in the history of the company so we're seeing absolutely no

slowdown and nothing from our perspective that would suggest there's going to be slowdown for us it is probably a combination of things focused on living a healthy lifestyle, we talk about it as a high-performance lifestyle, people's focus on experience over products, and so all of that and then one community. when it all rolls up, so far we see just strength throughout our business. >> yeah. i mean if this is more of the services side of the economy, i think of christie's and collectibles and some of the alternative assets as more of the good side of the economy what are you seeing? >> you know, in our first half we had $3.2 billion in sales at christie's, that's over five years an increase. it is down a little bit, morgan, from last year, but last year we had a record sale. you remember, we were talking about the collection which sold for $1.6 billion so anything looks a little smaller. where we see great growth is in luxury we had our best first half year ever, we sold almost $600 million in luxury which we consider watches, jewelry, wine, handbags that's a growth area and collections.

people love buying from a famous person, from an established collector. there's really no slowdown there at all >> has the demographics shifted in terms of who is coming to christie's to make purchases >> absolutely. we've had in this first half of the year we had 31% of new buyers and almost 40% are millennials or younger. >> i mean i think whether it is auctions or whether it is fitness and wellness, i mean these are two individuals that at least before the pandemic i always thought of as more brick and mortar and more physical what has happened is the pandemic has forced both of these industries to become more digital in nature. i wonder what the new normal is, maybe starting with equinox, what the new normal is in terms of the new mix >> i think the new normal is like the old normal, people want as in real life they want to be with their community, with their instructor, with their trainer they want inspiration. we see that. with that said we have something called equinox plus and we do

tens of thousands of classes digitally. what is interesting is about a third are being done in club people are bringing phones or tablets and streaming to use it in class in the location generally speaking it is people want more in real life you see it in concerts and other ways, in travel. ore equinox hotel at hudson yards is a top luxury hotel in the city we are seeing it show up in a lot of ways, more in real life than the digital offering. >> swre interesting it is what is attracting millennials to christie's as well >> we had to change to more of a tv style in covid and what we gained was a tremendous number of new buyers. we are trying to do a hybrid where we keep the new buyers but welcome people back as well. as a result we've had more and more people engaging with christie's digitally we had almost 7 million people use the online tools in the first half, and 80% of our bids

in the first half came from people bidding through online tools which i think is a really exceptional step >> i think of fine art, i think of fashion when i think of christie's, but as you see younger customers and younger bidders come to your platform and come to your company, are you thinking about what you're offering a little bit differently? i mean like trading cards and comic books for example, even sneakers seem to be having a moment right now how do you address that? >> i think we always have to be what is relevant and interesting to the young consumer. we have great heritage we started in 1776 but we have to focus on innovation you remember we told that one for $69 million. christie's launched the art world into selling nfts and digital art so we're doing that. that has a tremendously young audience but young people love luxury they love watches. they love photography which is another great entry point. making sure our sales are reflective of what people want people want diverse artists,

artists of color, they want to support women artists. we are focused on changing our platform and giving sort of a global stage to those voices >> of course, equinox is expanding and has been expanding for ma number of years now beyond just the gyms and brick and mortar and digital exercise plat norms you have the hotels and hudson yards in manhattan you have plans to develop more in other markets in other parts of the world as well right now how does the wellness service aspect of equinox continue to grow and what does it mean in an environment where you see a lot more hybrid work and work from home and office buildings that are emptier? >> so our goal is to have the most engaged community in the world, and so what you will see from us, and we have done a lot of this but we're now actually ramping up to be more aggressive on the go side, is you will see us building out our ecosystem for unique experiences that's the club. that's the digital offering. that's the hotel offering. so you will see more and more of that through other program

spotter services, you know, over time the office piece is very interesting. so the class a office buildings do very well the corporate community has come to us and said, we need to have more lifestyle, more experience and obviously take care of mental health issues as well as other aspects of their life, can you work with us so what is happening is a lot of the office buildings are now coming to us and saying, can you activate the lifestyle experience in the office buildings. so we actually think not just in class a like hudson yards, one of our most successful clubs in the history of the company, but we actually think there's a bigger opportunity in front of us to do more of that. >> okay. >> also, part of that is the community aspect every time we add lounge space, more and more people spend time and longer time. >> interesting look forward to hearing how it evolves. thank you for joining me tyler, i'll send it back to you. >> thank you to all three, bonnie and morgan brennan and mr. spevak we will be watching for more later. court. a crash course on supply and

demand college students are heading back to school to find prices for off-campus rentals are through the roof we'll explain why. as we head to take a break, take a look at the dow here, falling this afternoon right near session lows hope it is not on us "power lunch" will be right back

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back-to-school time for college students across america and for many that means even more expensive off-campus housing as high demand pushes prices through the roof. diana olick is here with more. parked the pun, diana. >> court, courtney you may have heard apartment rents overall are cooling off but one type of apartment is doing the opposite, that is off-campus student housing apartments not dorms but apartments built specifically for students by developers like american campus communities, gray star and landmark student housing rent growth depending on the region of the country is anywhere from two to ten times multi-family rent growth according to cbre, up from 7% year ore yver year in t northeast to 10% in the southwest. the ceo of landmark says it is all about supply and demand. >> if you look at the top 200 or so universities in the country which are the universities in

which we target, you know, you are seeing very stable enrollment growth. at the same time there's only a limited amount of land close to these universities that can be developed so there are significant barriers to entry. the net result of this has been very consistent and stable cash flows over a long period of time >> one more barrier to entry right now, of course, is the cost of capital. now, for investors looking to get in on the growth there are no longer any publicly traded student housing reads. american campus was acquired by blackstone last year but landmark and acc are part of b read which is blackstone's non-. back to you guys >> diana, you showed video there and those looked like nice housing situations are there a lot of amenities that come with that? what are you getting for the higher prices? >> you are getting everything from granite countertops, flat screen tvs, infinity pools, there are simulated golf simulators, tanning studios. i don't even want to get into the ridiculous of it but, you

know, parents are willing to pay. they're very close to campus it is what the students want if they can afford it they're going to do it they've got the health spa there, too you have all of that nice stuff, foosball, all of it. >> these students are getting a little spoiled if they have a first apartment in new york city, my floor was slanted, 400 square feet, shared it with somebody else. >> with cinderblocks so there you go >> not to mention the other inhabitants, the eight-legged inhabitants. >> of those shorts, sure >> di, thank you it is good to be in college, we can all agree on that. still ahead, crude oil, chips and the cloud. we are trading big movers of the day in a fresh fe ocrestk lunch. you don't want to miss it. we will be right back. guys, c'mon! mom, c'mon! mia! [ engine revving ] ♪ ♪ my favorite color is... because, it's like a family thing!

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time for today's three stock lunch. chesapeake energy that will join the s&p mid cap 400 index next week replacing mercury systems and got a fresh target increase from ubs that sees the potential upside of 21% for the stock. up about 5% on the session here with our trades is danielle shay, simpler trading vp of options. what do you say on chesapeake?

>> so, tyler, i like this stock. i like the energy space in general. i like the way that crude has shifted off the lows i think that positive momentum will carry us higher and, of course, the international sector now, looking at chesapeake, chesapeake has broken up above some critical resistance zones, which is what i love to see for trend continuation so with this one, i am eyeing a resistance zone around $90s a share and expecting a little bit of pause at that point if we break through we can trade knew 100. >> not far off at 87 we have cisco beating the street on top and bottom lines, up over 3% today danielle, what would you do with this stock >> i like this stock here. i like the way it's behaved over the course of the past several quarters we've had really positive earnings beats and we've had positive moves post-earnings as well with this one it does have some resistance at the $58 price

point, but i think that if we can continue along with this upward momentum, especially due to the bullish weekly and monthly chart patterns we can see the stock trade up into about 64. >> our final name today is the chipmaker wolfspeed, tanking down 16% after the earnings missed expectations on the bottom line and disappointing guidance coming out of that company. what do you say, danielle? >> so this one is on a downward trending spiral. any time you have a company fall post-earnings four quarters in a row and substantially as well, most of these moves have been more than 11%, this is the kind of company i like to look at earnings destruction and trade it to new lows i will note it has some high short interest, so you need to be careful on how it stops f there's positive news you don't want to be caught on the wrong end of a short squeeze i'm looking this to trade down into 38 and if we end up breaking 38, then 27 is the next

target. >> interesting stuff right now sitting above 44, but down sharply on the day. thank you. >> all right we have only a few minutes left. >> that's it. >> i'm going to be sad. >> went by so fast. ts yeah. lo of stories to tell you about. it's closing time when we return power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley.

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gas prices rising to a 10-month high $3.88 per gallon according to aaa and now hurricane season citigroup writing about the possibility two of major hurricanes landing on u.s. shores with the potential to disrupt supplies for an extended period with the wild weather across the country, i'm kind of surprised they're only predicting two. >> yeah. there's one thing that people judge inflation by, and that is gas. of all things. >> always. >> it's the one thing that they -- you know, maybe it's not part of the core inflation rate but it is core to people's budgets. >> people always know the price of gas it seems. >> we talked to mary barra yesterday. the automakers in the uaw facing the possibility of a strike by 150,000 workers that could cost the economy $5 billion in just ten days according to a study by the anderson economic group. we shall see what happens there. i believe phil asked mary barra yesterday the union asking for a very substantial price wage

increase. >> we've seen a lot of union strikes and discords recently it does seem, so i wonder how this one is going to play out. >> ups settled ahead of the strike. >> look at the writers and actors they're still going on here, too. more proof that rich session could be real. we talked about the number of millionaires in america yesterday, now there's new data from bofa that shows workers earning $125,000 a year are laid off at three times the rate of low and moderate income workers mostly in tech and finance they sort of are looking at their accounts and that's how they're seeing it. 70% increase versus a year ago in the number of those receiving unemployment benefit into their accounts >> i was speaking to a person who is an executive in marketing for a major consumer products company, and her take was that job market in her band of earners and professionals, is not all that good. that companies are laying off. because a lot of tech companies are laying off, financial companies are laying off

if you're a young on the upswing middle manager type, it's not as good an economy as it might be in health care or hospitality or construction and some of the others. >> it seems like it's hard for the middle we talk about how it's hard for the middle income consumers or those stocks where you see strength at either end. >> finally you've heard about workers being concerned about a.i. taking their jobs and now you can add managers to that list a new survey from paris poll and the american staffing association found that 44% of workers in managerial roles believe that automation could easily replace their jobs. middle managers feeling a little bit insecure these days. >> yeah. i guess so i think that segment that brian sullivan did on "last call" where he interviewed himself via a.i. is interesting and when i think about job replacement i think about that he was good but not as good as

the real brian sullivan. >> the a.i. person. >> yeah. >> thank you for watching "power lunch. interesting next hour ahead, the dow moving towards the session lows, down 225 points or about two-thirds of a percent. thanks for joining us today. >> it's been nice to be here consumer discretionary is the lagging sector the home builders are the lagging in the group "closing bell" starts right now. >> thanks. welcome to "closing bell." i'm scott wapner live from post nine at the new york stock exchange this make or break hour begins with unsettled stocks. there's your picture whether this market has turned from buy the dips to sell the rips, summer suggesting and if it has, what that could mean for your money in the weeks ahead. your scorecard with 60 minutes to go is getting a little bit uglier here. there's the lows of the day for stocks walgreens and united health not doing the dow favors today both of those stocks dragging the industrials lower. apple, that's been a story and it's not helping either. that stock conties