that sharp rise in bond yields. new high today around 4.8. we haven't seen that level in 16 years. and it is having, as you will see momentarily, a big impact on stocks. plus, the trial of sam bankman-fried begins today. the man began the face and hair of crypto corruption is accused of defrauding ftx customers and investors out of $8 billion. we'll get the latest, kelly, from the courthouse. first a check on the markets as tyler mentioned diving lower, the dow down 468 points now 1.4%. fresh session lows here. we hit just in the past half hour or so. the s&p is down 1.5% to 4223 and the nasdaq is down 2%. the 10-year yield continues to climb today. it was before the economic data. the jolt showed more job openings. it continued afterwards. it's continued in spite of relatively dovish comments.

4.789%. meantime, couple of stocks to tell you about. mccormick, the spice company, reported today. earnings were lower than last year in line with estimates. sales also fell missing estimate. that's why the stock is off today by 8% and 17% so far this year. airbnb also lower. key bank downgrading the stock saying the tail winds have been helping the company are starting to slow. airbnb still up 50% year to date, tyler, but down almost 6% today. >> all right. thank you, kelly. we begin with breaking news at the capitol in the effort to ois kevin mccarthy as speaker of the house. it is coming to a vote, several votes likely here right now. let's go to emily wilkins on the hill. emily? >> reporter: hi, tyler. well, yes, speaker kevin mccarthy's speakership is in a very perilous position right now. we know there are at least six republicans who said they will back an effort to oust them and we have a number of democrats as well who seem to be doing the

same. i mean, just listen. we spoke with a number of democrats this morning as we left a big caucus wide meeting. this is what they had to tell us. >> we encourage our republican colleagues who claim to be more traditional to break from the extremists in the chaos, in the dysfunction, in the extremism. >> reporter: so that was speaker hakeem jeffries. he has come out and said that democratic leadership will be voting against mccarthy. so not saving him, potentially going to a spot where we're not even going to have a speaker of the house. now, right now, the house is taking a bit of a preliminary vote. they're deciding on whether or not to move forward with that actual vote to oust mccarthy. if they do decide on moving forward, that vote could occur as soon as this afternoon. then we could be in a spot like we were a little bit back in january where you're seeing roll call votes and republicans trying to figure out who the

speaker is. now at this point, it's not clear who, if anyone, could succeed. mccarthy, a number of republicans told me they will continue to back mccarthy even if he does get ousted, but at this point democrats -- and we talked to a number of them, listen to what they had to say. they just say that there's really no trust left with mccarthy. >> this is someone who betrays his word on pretty much a daily basis. that's not someone we ought to trust to one run of the most important institutions in the country. i'll be voting against him. >> he is not trustworthy. and i think you can see that within his own caucus but can certainly see it the way he's treated us and the american people. >> we are following our leader. and we are not saving kevin mccarthy. >> reporter: as you can see, a lot of trouble for kevin mccarthy. he's lost the trust of many in his own party. he's lost the trust of democrats. and even though a number of republicans still support him, it just doesn't seem at this point that it will be enough.

of course, we'll be monitoring the situation throughout the afternoon but there is a very real chance that by the end of the day this house could no longer have a speaker. >> and what happens, emily, if that happens? >> re emily, did you hear my question? what happens if there is no speaker of the house? >> reporter: hello? >> looks like we don't have emily's return there. so we'll let that question just linger there in the air, kelly. >> we should add it's not helping market mood as we move towards that outcome. stocks are falling sharply as yields continue to jump and yields are jumping in part because of fiscal problems in washington. the ripple effects hitting not just the traditional interest sensitive groups but really lots of different kinds of them. bob has more from the floor of the new york stock exchange. bob? >> reporter: and kelly, rising rates creating havoc in the stock market across the board. now, there's obviously the traditional yield plays that are having a problem, simply put,

reads and utility, they really can't compete with 4.7% treasuries. but there's a secondary group getting hit. there are plenty of capital intensive industries out there that have borrowing costs that are going through the roof. two simple examples. clean power and bio tech. look here, next to renewable energy subsidiary, they just recently announced they were reducing their growth expectations downward because of higher borrowing costs. you see how that is craters affecting the entire area. borrowing costs going up for renewable energy deals a t this point. another one to look at is bio tech stocks. what would they have to do with higher rates? bio tech is very capital intensive. they have to borrow a lot of money. that is affecting them. many of these stocks new 52-week low for the bio tech etf, many are small cap stocks affected even more because banks are more reluctant to lend to smaller cap companies. this is creating a very

unusually rich environment for yield-hungry investors. look at these traditional yield plays. for example, verizon, at&t, simon property group, these are now yielding 7, 8, 9% yields. is this a lot? oh, yeah. this is twice what these yields were just a short time ago. most of them were in the 3 and 4% for many, many years. bank yields also going up rather dramatically. key corp. for example, truist, co-america also in the 7 to 8% area. tyler, great environment if you want it. go out and get yields, but a little bit risky because obviously prices moving down means you're not really getting as much of a return as you think you are. tyler? >> bob, stick around. i'm going to lean on you for a little history here in just a moment. as bond yields continue to rise to levels we haven't seen in many years, the setup for the markets is reminding a lot of seasoned wall street professionals of what happened in, yes, 1987. let's bring in chief market

strategist with be riley wealth management. welcome. i don't mean to overstrain that analogy because there are a lot of things that are different between now and then, most especially perhaps the presence at that time something called portfolio insurance, which contributed to the unwinding of stock prices. but, the things that are similar are that there was a rising market during most of 1987, as there had been up until the last month and a half or so here in 2023. and the other thing that was similar was a rapid rise in interest rates which has certainly been the case here in this country over the past year and a half. so, how far off is the idea that conditions are not totally unlike what was at hand in 1987? >> yeah, tyler. that's a great question. i think it's worthy of looking into but i certainly think it's important to remember where we were in '87.

so coming into october of 1987, markets was at 44%. it was up nearly 250% over a three-year basis. so flash forward to today and say, okay, we're flat. the market is flat over two-year basis and up single digits on a year to date basis. clearly the market hasn't sort of followed that similar pattern. we didn't have interventions that existed in the mid 80s culminating in the month of '87. the treasury yields went up is also a major difference. 6.3 to 9.2 in 40 days. when you talk about the markets largely, we learned that the markets went up while that was happening. i would argue right now markets are in lock step with yields. we're not ignoring what's going on in the treasury. we're actually pinned to it. so for the market in august and september, look at one thing and one thing only what's going on the 2 and 10 year and that the

driven market activity. to me the difference is polar opposite. we're paying hyperattention to what's going on. >> bob, art has skillfully demolished my metaphor. would you like to pile on or add anything? >> the concern -- if you want to go back 40 years, the concern for the markets in the late '70s and into the early '80s was stagflation. we had a weak economy and we had high inflation. i don't see that right now. the jolts report may give the impression we have a really strong jobs market. at the very least, the economy is very stable right now. might be concerns about where it will be six months but it's stable and inflation is coming down. not with standing the strong jolts report that we saw today. so, these arguments that somehow stagflation will be around and come back and haunt us for a long time, i don't see that right now. i just see us repricing interest

rates to where they were back before, into 20 years ago, which i don't think is necessarily a bad idea. i don't think it's a bad idea for sabers to get a little above the real rate of inflation, which is where you're doing it right now. you're getting 5%. you're getting roughly 2% real return. i think that's probably the way it should be. and even though i know the stock market is having a hard time adjusting to that, i don't think that's necessarily a bad thing. that's much more normal, historically if you want talk about history than what we had in the prior ten years. >> art, one missing piece of this which is why i find the washington machination so fascinating right now that we haven't had 5% when we had the deficit this large and the debt as large as it is. investors are looking at unless they hear the fed or some big buyer coming to the rescue of all this treasury supply, they'll test how high yields need to go both at the level with the fiscal backdrop and the speed at which the move

happened, i'm not sure we have seen a full reset of this in the markets or in the economy yet. >> that's a really good point, kelly. order of magnitude how much debt we accumulated. the pandemic piled on a lot of that. then massive fiscal spend after that. o i think the important thing to remember is that when -- to bob's point, we have been concerned about stagflation or recession in the front half of this year to being concerned about the fact that the economy is actually too strong. that's what's driving in a real sense that's what driving yields higher. at some point in time we get out of this counterintuitive good, economic data and probably stop watching -- [ inaudible ].

[ inaudible ]. very quick five-word answer if possible, last weekend we asked investors like you what they think the best investment for the last quarter of this year will be? treasuries, equities, there was oil, there was real estate, there was several others on there. if you had to say on there, best investment for the remaining three months of this year, it would be? >> equities. i think equities will out perform the back half of this year. i think we're set up for a fourth quarter -- >> the poll results indicated

treasuries, but with equities close behind. thank you. keep an eye on markets because the yield on the ten year is about to hit 480 and the dow is down 500 points. coming up, we'll go live to the courthouse in lower manhattan where the trial of sam bankman-fried is beginning with jury selection. as we head to break, here is a look at treasuries right now. we have the 20-year, by the way, more ill-liquid over 5.1%. not even on that board, but the more important 10-year just a hair below 480. 30-year, just a hair below 4.95. stocks are reacting quite poorly. we'll be back after this.

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welcome back to shoi show. with the dow down now more than 500 points, jury selection beginning today in the trial of ftx founder sam bankman-fried. kate moony is live outside the courthouse in lower manhattan. >> reporter: so the jury, potential jurors broke for lunch. they're now back inside the courtroom. jury selection is under way. sam bankman-fried watched all of this today from the defense table. he had a new haircut, see the court sketch there. he's in the front of the courtroom there. potential jurors, they're back and we have heard a little bit about some conflicts of interest. they dismissed some potential jurors. one works at a venture capital

firm that invested in ftx and inside partners. there's a lot of talk about some of the media coverage. one potential juror said he listened to a joe rogan podcast about it. there's a lot of awareness about this story ahead of the trial. judge cap lan saying that these jurors are going to pretty much have to live in a bubble for six weeks. no googling, no reading news, can't listen to the radio. so they have to not consume any media or news during the span of this trial here. the list of questions he plans to ask on that, you've got do you have a negative opinion about crypto currency? also the crypto company fails, you feel that only the owners are to blame? and then, questions around do you have any negative opinions about amassing wealth to give it to charity. effective altruism as it's known. sam bankman-fried having adhd. they plan to ask people if they never had any personal or professional experience with adhd. they say it will potentially

affect sam bankman-fried's mannerisms in the courtroom. over the collapse of what was once a $32 billion crypto exchange ftx. he has been in custody since august. he didn't know about some of the financial issues going on at ftx despite being ceo at the time. prosecutors need to prove intent here. four of the top lieutenants have pleaded guilty. it will make it hard and challenges for the defense here. at least three executives do plan to testify. we'll see if bankman-fried actually testifies. the judge addressed bankman-fried directly at the start of today saying you have the right to testify, even if your legal team advises you not to. the judge said raise your hand if you want to testify, essentially stand up at any point, but really directly was speaking to bankman-fried there. kelly, tyler? >> so, of the former ftx executives who had pleaded guilty, did i hear you say that all of them are expected to

testify at this trial? and how damaging, i assume, would their testimony be to bankman-fried? >> so -- yeah, three out of four tyler plan to testify from what we know. so you have caroline ellison also bankman-fried's former girlfriend. we're expecting a more personal accounted from caroline ellison. gary wang, other top executives and sam bankman-fried's inner circle. he had a close knit group of executives living in the bahamas with him. they have pleaded guilty. they're working with prosecutors. ellison said she knowingly committed fraud. it's an uphill battle for the defense team. i think the fourth executive brian salem pleaded guilty, but we do not expect him to testify. >> all right. thank you very much kate rooney, we appreciate it. social media's new revenue

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welcome back to "power lunch," everybody. the dow is down 504 points right now. nasdaq off 2% as stocks get hit hard by a sudden surge in interest rates. the dow utilities average down more than 7% in a week. but not all utilities are equally impacted and pippa stevens explains. >> it's been a tough run for utilities earlier today it fell to the lowest since may of 2020. yesterday it dropped 5%. we don't usually see that big of a swing for the utility sector. as we discussed they're getting hit on both sides. the first is that they have a lot of debt because they are very capital intensive. when rates go up, their costs go up. then also they're seen by investors as a bond proxy and investors want those dividends. so, the pace at which rates are going up certainly accelerated but we have been dealing with higher rates for a while now. so the question is why have we suddenly seen this big selloff.

john bartlett from reaves asset management told me it all started with last week now we have a crisis of confidence within the industry. so last week a drop down of one of the assets, to a subsidiary, they were not going to do it anymore because they got too expensive. then the market took the next step of saying, well, if they don't get money from that, are they going to have to raise more capital to fund their operations. the energy partners cut cash distribution outlook because they no longer have that asset so they're not growing their rate. and so there's just a lotof head winds for the industry right now. but he said you can still focus on companies that have good balance sheets, so that's names like dte energy, cms energy and nisource. the whole sector is coming down with nextera. >> pippa, thank you very much. pippa stevens. high-yielding parts of the market have not been a place to be lately. ahead on "power lunch," spinning wheels. why the uaw strikes put a dent

in car sales. or could accelerate them for now at least. we'll get the last rd teeaon the auto market after the break. this is spring semester at over 13,000 us school districts, which have become top targets for ransomware attacks. but there's never been a reported ransomware attack on a chromebook. which is why thousands of schools like the fairfield-suisun unified school district switched to google tools for education. so they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure.

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automakers today reporting their september sales numbers. of course, the strike hanging

over the entire industry right now. let's bring in phil lebeau with some numbers. hi, phil. >> reporter: hey, tyler. you know, the strike was only last two weeks of september, so impact on september, limited. impact on q3 sales not seen. let's start first off with general motors seeing increase of 21% compared to q3 of last year. more importantly inventory is at the highest level the third quarter of 2020. that will be important if this uaw strike stretches out and impact on inventory levels for gm. foreign automakers all posting healthy increase in q3 sales because the supply chain has improved dramatically compared to last year. as a result, sales are up across the board really for everybody. and when you look at where we are for 2023 annual sales, mostly we'll come in at 15.2, 15.3 million. if that happens, it will be the highest annual sales since 2019. guys, back to you. >> all right, thank you very

much, phil. phil lebeau reporting from normal, illinois. and the uaw strike may not be putting a major dent in u.s. auto sales yet, but there are ripple effects emerging as ford and gm laid off another 500 factory workers combined. in total more than 6,000 workers across the big three have been let go as a result of the walk-outs. current estimates, well, they show the strike resulted in $325 million in direct wages lost. let's bring in a former auto insider now to discuss the impact as well as the tightening ev race, mark fields, the former president and ceo of ford. he is also a cnbc contributor. mark, great to have you here. would you have done anything differently so far? >> well, from an automaker standpoint i think they're doing exactly the right thing which is, listen, they don't disagree that a raise is in orderer for their employees. the issue right now is the size of the ask. and you know what they want to do is make sure they have a fair agreement for both their employees but also the company

so it doesn't really cripple them with uncompetitive labor costs, particularly as they face off with evs, with folks like tesla and some of the other new startups. so, i think they're doing exactly the right thing. they're getting more aggressive with their communications because, you know, the uaw has been out there with a very unconventional approach on talking about the status of the negotiations and, you know, usually do have a degree of rhetoric during negotiations, but this has been over the top. and i think the automakers now are starting to fight fire with fire and lay out their view of the status of the negotiations and how important it is to keep their business competitive but also make sure there are employees rewarded with record contracts. >> i was surprised to see in the requests of the uaw that the companies return to a traditional pension plan, a defined benefit plan. how unusual do you think that is? does it have any chance of

getting through? it feels so, well, 1970sish? >> well, you're exactly right, tyler. i mean, these are benefits that were done in a different time. but with a different number of competitors as well, as you have seen from the likes of tesla and other ev competitors which really is the future of the marketplace. but listen, going back to define benefit plans, that would actually add billions of dollars to the cost structures of these automakers. and they just can't afford that. they cannot be uncompetitive and at the same time, you know, where is the win for the uaw if their employer becomes uncompetitive and gets marginalized over time? i see that as one of the lower priorities in terms of the uaw, in terms of their non-wage demands, but if they stick with that, you know, this could be quite an extended strike because i think all the ceos in the detroit three, they lived through the great recession. they've seen what some of these

excess benefits versus the competition can do to their business and they don't want to recreate the past. >> mark, so to quote kind of analyst dan i'ves we spoke with on the program yesterday, he's quite concerned if all the demands are met, the big three won't be competitive in the ev race going forward. do you think he's right? >> if you take it face value, all of the demands that the uaw is making -- keep in mind, kelly, this is about negotiations. of course you put all of your demands out there, understanding that you won't get all of them. but, you know, if hypothetically if they were to get all they wanted in their demands, it would make the automakers extremely uncompetitive versus the like of tesla. right now you have $20 an hour difference in the labor costs between the detroit three and tesla. that's only going to get widened. and if you go full monty on all of these benefits, then it becomes a very, very difficult

future for the automakers. but i don't think it will end up that way. but, clearly they're going to have to find ways to offset in other parts of their business. >> how do chinese competitors figure in to these negotiations? >> well, you know, right now, tyler, as you think about it, there's no chinese vehicles that are sold in the u.s. and obviously you're well aware of the geopolitics involved in this going forward. but i do think the detroit three are global automakers and have to compete around the world. and what the chinese are doing if you look at dyd, for example, they came out with their sales results. they're second to tesla right now in gaining on them. they're profitable. the chinese market is extremely competitive. their domestic market. when you're competing at the cold face of these very, very competitive makers in china,

they're going to take those cost advantages and take them to other parts of the world like they're starting to do in europe where they've gained considerable share of the ev market and now, of course, the europeans are waking up to the fact that that could potentially damage their domestic automakers. we'll see how that plays out. but nonetheless, you know, they are kind of setting the pace, if you will, for ev costs around the globe. >> yeah. it's a really interesting time in the business where you made your career. mark fields, thank you very much. we appreciate it. >> you bet. >> thank you. a worsening selloff on wall street right now. the dow has been down more than 500 points, now down about 480 but what's 20 points among friends. nasdaq down below 2%. so let's bring in mike santoli now for more on this selloff. mike, what do you make of what's happening today and why? >> well, tyler, it's still this sort of three-legged race where bonds sale off at indiscriminate

way and drags stocks along with it. you have this very across the board repricing of stocks in line with the losses in bonds which, of course, means yields going up in bonds. today, you had that extra little push from the jolts numbers as we have been talking about. august, stronger than expected. labor market tighter than we anticipated which is an extra piece to i think the assemblage of things driving the weakness in treasuries which has mostly been a focus on supply, the fed's message which has been consistent higher for longer and the economy is stronger than we thought, responding to fundamental inputs as well. all of it to me computes into finally the stock market getting closer to more comprehensive wash out. that's a short-term tactical thing. that's not telling you whether the economy does well or markets priced it correctly. i do think we might be getting nearer to one of those points as we get around 4200 of the s&p. >> this morning, i forget where it was btig, mike, the nasdaq

hasn't had 2.5% down year all year and look at the actions today, well, maybe it's today. maybe the better if it were today at some point that's the trading activity people are looking for as a flush. >> yeah. we do get to that stage, kelly, sort of like we need it so bad it's good type of environment. you know, nothing ever lines up everything all at once perfectly. but, it's starting to build. i was noting on friday and yesterday that last week's conditions came just toward those levels everybody was watching. we got -- everyone says, oh, we need 20 plus vix. we got to 19.7. we need to get down to 200 day average. we came within a percent of it. so people overanticipate the tactical relief rally. obviously if bonds show no quit in terms of the selling and the rise in yields, it will be difficult to really get something going with stocks. but i do find it interesting that it's now combined with, hey, maybe the economy can

handle it for now. things need to get restrictive enough and the long-term bond yields are trying to get a spot that gets restrictive enough to where the economy won't be okay. that's to me what the market struggled with. >> this conversation just reminds me once again, michael, something i have to think about. and that is that rising bond yields does not mean that bonds are doing well. >> that's right. >> it means that bonds are selling off. >> absolutely. >> and so what you have here is bonds selling off and stocks selling off at the same time. >> bonds have done worse than stocks this year if you own the s&p 500. in terms of your total return. and it really is a return to the pre-2000, year 2000 days when they more or less did run in lock step as opposed to being offsetting factors in a portfolio. we'll see if that continues. but you're right. so this idea that, oh, stocks are going to have trouble with high yields. everybody will flock into bonds. what happens everyday, more

sellers than buyers in bond. >> those flockers. thanks, mike. appreciate it. >> all right. let's get back to emily wilkins for the latest out of washington. emily, what can you tell us? ♪ >> reporter: hey, kelly. well, as we speak, the house is taking a critical vote. now this isn't the vote that will oust mccarthy. but basically what has happened is matt gaetz has come forward. he has tried to make that motion to get mccarthy out of his speakership. an ally of mccarthy has moved to block that. the house is now basically voting on whether or not to proceed. it wouldn't be until this afternoon at the earliest that we get to that critical vote that mccarthy's future hangs on. but at this point, things aren't looking good for the speaker. sort of a test ote, testing the waters. so far and nothing is finalized yet, but we are seeing ten republicans who have voted basically keeping mccarthy in his speakership and they so far have been joined by the entire democrats, any democrat who has voted at this point is voting against mccarthy.

that was the sense we got when we spoke with democrats this morning. a lot of us said, look, we can't trust mccarthy anymore. he has gone back on numerous promises. their unhappy with some of the things he said over the weekend trying to blame democrats for a potential shutdown. just a lot of frustration at this point. congressman from michigan said, look, republicans are in a chaos state right now and it's not our job to save mccarthy. at this point mccarthy is still speaker. he will still be speaker after this vote. but he is really in a perilous spot right now and that could absolutely change by the end of the day. >> so if this vote does not carry and the people on the sidelines line up against it, that means that there will be a vote to kick out kevin mccarthy, right? >> reporter: that's absolutely correct, tyler. this is something that the house really has not seen in at least a century. and not in the way that it was brought up. this is very unprecedented to see the moves that we have today. and, of course, if mccarthy is

ousted from his speakership, then we basically revert to what we saw way back in january, where you have a bunch of members sitting around, roll call votes trying to figure out who the next speaker of the house is going to be. at this point it's just not clear. number of republicans said they are still going to try to back mccarthy. at this point you're hearing other names being brought up. certain lay lack of confidence, a lack of trust and frustration and confusion about what the rest of this week and potentially what the rest of this month will look like here. >> thanks very much, emily. we appreciate it. cnbc is launching a new initiative to recognize women blazing new trails in business. we'll reveal the details of first-ever change makers list. cnbc celebrating hispanic heritage. here is frank del rio, president of oceana cruises. >> first generation cuban american, both of my parents

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cnbc is launching a new initiative to recognize women making waves in the business world. senior media and tech reporter julia boorstin is here with the news. hi, julia. >> hi, tyler. i'm very excited to announce that we are launching cnbc change makers, women transforming business. this is a new franchise, annual list of trail blazing female leaders. this list of 40 women will be unranked. it will focus on accomplishments in the past year and it will feature women from companies across all sectors of the economy, including philanthropic organizations. and we're going to be publishing this list in january. we have put together a stellar advisory board which will be

joining me and the cnbc editorial team to determine the weight of the qualitative and quantitative metrics we're going to be considering to put together this list. the advisory board includes sheryl sandberg, ken frazier, chris jenner and harvard business dean. applications for our list are open as of today. for female leaders, the criteria to be at private company or organization including philanthropic ones with at least $25 million in revenue and at least one of the past three years or enterprise value of at least $100 million. for those at public companies, the market cap should be at least $250 million. for more about our inaugural lists and the process by which we'll be putting it together, you can find the nomination form at cnbc.com/change makers or you can scan right here to apply. i'm really excited to have this opportunity to service the stories of new icons of innovation and leadership.

tyler? >> very, very interesting. we want to ask you about reports that meta also and tiktok are both considering charging users for an ad-free experience. streamers have done it. could it also work for these companies? >> well, tyler, the social media players are, of course, looking for new revenue streams but for meta, it's also looking to comply with eu law, the digital markets act which goes into full effect in march. meta and others should not show personalized adsbased on online activity without user consent. so offering a subscription service or the choice of a free service with targeted ads could be a solution to that. now meta shares did decline today on this report. down about 1.5%. and the company did not comment specifically on the report, but a source tells us that "the wall street journal" report is accurate and that the company is considering charging $14 a month for ad free access to instagram on mobile devices or $17 for

instagram on facebook on the desktop. now that pricing would be roughly in line with youtube premium. meta did share a statement with us saying, quote, meta believes in the value of free services which are supported by personalized ads. however we continue to explore options to ensure we comply with evolving regulatory requirements. meanwhile, tiktok is reportedly testing an ad-free version of its app with a $5 fee. testing this in just one market. tiktok did confirm to us that they are testing this but unclear if they're launch. they said they test a lot of different things. kelly? >> all right. thank you very much, julia. and we look forward to the initiative with the women executives. appreciate it. and coming up, we will get some technical support. we need it in this market. with the read on some stocks showing attractive entry points on the charts. we'll tellou y which ones when "power lunch" comes right back. ♪

welcome back. let's get back out to emily wilkins in washington as the first vote on the speaker's fate is over. emily, what's the result? >> reporter: well, kelly, it has failed, which basically puts kevin mccarthy's speakership in very big peril at this point. now that vote was a prelude

basically saying should we go ahead to vote to oust kevin mccarthy. what happened is 11 republicans and alldemocrats said, yes, we're going to move forward with this. it's so important to note that mccarthy does have the strong support of the vast number of republicans, but because margins are so narrow, that doesn't matter. the fact there are 11 republicans is more than enough than what is needed to oust mccarthy. it is clear unless something major happens in the next hour, democrats are not coming to help him. a debate on the floor will go on for about an hour and we would see that vote that could remove kevin mccarthy from his speakership. there are procedural processes that could take place. it could take more than an hour to get to that vote. it does seem increasingly likely by the end of today the house and congress will not have a speaker, and that's going to really delay a lot of work congress is trying to do funding

the government, passing really critical legislation will all come to a halt while republicans have to figure out internal politics. kelly? >> emily, thank you very much. the afternoon will get more interesting. the dow down only 427. time for technical support to look at names and see if they offer any opportunity. jay woods, chief global vat gist. first up xlu, utility sector. what does the chart tell you here? >> this chart is ugly. you want to look for opportunities, and i will give you opportunities. i apologize for the moving averages. the weekly chart and what we want to focus on are two moves we've seen. this move back in 2022 is between july and october. what happened? the ten-year yield went from 2.7% quickly. what are we seeing now?

a major breakdown over a quick period of time where we went from 22% drawdown this first time and now we're about 17%. now let me clear this up because it's a little ugly when all these lines are on the chart. what we're in the middle of is we're puking it out. the rsi is oversold. there are 30 stocks in this index, and of those 30 stocks only two are above their 200-day moving average. >> i love when you use technical language. what happens next, though? when you puke, sometimes you feel better. you feel better after you puke. what might happen here? might it go back up? >> for a trading opportunity you want to probably scale into this trade because where i think it will come back is to the $60 level. so for a near-term trader, you may want lower bids under this

because we do have a consolidation area. this is not a trade i would want to be in for the long term. the average dividend is about 3.7%. for a trade you may want to leg into it. it's getting overdone quickly and there may be a snap back rally. >> let's move on to united health care. what do you see here? >> i see opportunity here. the cmt community will mock me. i will point out something that is a lagging indicator. we had the golden cross. the 50-day moving average went above the 200 day moving average. it trended higher. for years we finally broke down, we sold off and now what are we seeing? we're seeing a golden cross. we're seeing opportunity.

this is the biggest weighted stock because, as you know, tyler, it's price weighted. it's coming into resistance but the trend recently, this is wonky, this i-pad, higher lows and over the fourth quarter a 40% rally. we had a 28% rally. last year weonly gained 4%. for this to rally back to the 550 level is about 7% from current levels, is not a bad return. i think unh is the way to go. >> "the golden bachelor." >> don't get me started. fantastic. >> palo alto network, tradingality an all-time high. >> we're looking for opportunities. this is on sale and an old adage is it's the only market in the

world when things go on sale people rush for the exits. you want to possibly by. we have a nice support level. a nice breakout. it's flagging. it's trading around 230 right now. back to the 225 level, a good entry point. if not you have more support down here at a rising 50-day moving average. i like it. it's best in class. there's crowd strike and z scale are looking okay. i want best in class. i think it will lead and another fun stat, it's setting up to a nice rally.

>> great tactical advice and technical analysis. >> good stuff. a final check on the markets as the dow is off session lows. we'll be right back on "power lunch." power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

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down more than 500. >> down 500 points. and what is particularly interesting the nasdaq reversing a four-day win streak and with a basically 2% decline here. the nasdaq has been a stalwart. >> 4.802. the ten-year yield keeps marching higher, the first time we've been above that level since 2007. >> thanks for watching "power lunch." "closing bell" starts right now. welcome to "closing bell." i'm scott wapner live from post 9. this make-or-break hour begins with wobbly stocks. it's doing it right now. 60 minutes to go in regulation, we'll start with yields. that's what we're showing you now because that's where the pressure point really is. that's where it has been and that's where it is yet again today, the ten year, continuing its climb to fresh cycle climbs. all three of the major averages under pressure throughout the session. transports, utilitie