welcome to "power lunch", everybody. literally alongside kelly evans for a change. coming up, there's one main market issue right now and that is the sudden rise in bond yields and the impact it is having on the markets. we will look at all the angles of how this move impacts your money and your investments. >> and let's take a look at stocks right now because the dow has given up its gains. we're down 50 right now.

s&p up six, nasdaq driving the gains we're seeing today, up 83 points. all of this as the yield on the ten-year has pulled back after the adp report showed much less hiring than expected last month. there's the ten-year just under 4.75% and of course, we are now waiting for the big government jobs report on friday. >> we've got all the market ripple effects covered. bob pisani looking at what this could do to buybacks which has been a balloon under stocks for a long time. diana olick on the impact on home builders. rick santelli in chicago. let's start with dominic chu on the dollar. >> the value of the u.s. dollar has risen by roughly 10% over the last three months. and with an estimated 40% of s&p 500 revenues coming from outside the u.s., that rising u.s. dollar could be a potential headwind for those u.s. companies and their profits and revenue reports coming in the coming weeks and months, now, with regard to some of the

companies that could face some of the biggest headwinds, we looked at some of the companies that have the highest percentage of their revenues from outside the u.s. borders. now, according to data from s&p capital iq, some of these names could be weighing in on the effects of the stronger u.s. dollar. from a consumer standpoint, estee lauder, 77% of their business outside the u.s. coca-cola, 64% of theirs outside the u.s. and proctor and gamble, about half of their revenue is outside the u.s. now there's also that technology consumer discretionary media. many of those companies have a lot of their revenues outside the u.s. take booking holdings from a travel standpoint. 88% outside the u.s. tesla gets over half of its revenues outside the u.s. and then microsoft responsible for a lot of the profits and revenues in the s&p. about half of its results outside the u.s. so when it comes ft. headwinds for the u.s. dollar and the 10%

rise, check out some of those names as being more effective. >> so, remind me again. this stronger dollar means what for the revenues and profits and hence the stock prices? >> so when you record revenues outside the u.s., to take those profits and revenues and pull them back into u.s. dollar, you'll have to buy those at higher higher dollar values. meaning you'll get less back than before because the value of the dollar is so strong and when you have to buy more expensive dollars with cheaper euros, yen, cheaper dollars, pesos, that starts to have a real material affect. >> is there anything, so we spoke to carter worth just at the end of the show there and he was actually thinking okay, the dollar is going to weaken now. i said undoubtedly then you think the market's going to run into year end. he said not necessarily because we've seen so many odd

bedfellows. >> it's not just that. the more recent precedent we've seen, kelly, tyler, is the massive run up we saw post pandemic. from about the early part of 2021 until the cycle highs that we've seen in 2022 this past year. remember, from those 2021 lows to the 2022 highs, you're talking about a roughly 28% jump in the value of the dollar. and yet the stock market seems to rally in the face of that. there are a lot of cross currents because there are so many factors at play. >> appreciate it. what about stock buybacks. yields threaten that. >> you were talking about how rapidly rising rates are causing

havoc. another knock on effect of discretionary buybacks because companies may -- cash rather than distribute it. america is sitting on $2.5 trillion in cash. companies with large cash flow are now getting significant return on it by investing in short-term debt and that may influence buybacks. buybacks were lower in the second quarter compared to the third. th the third quarter, we're waiting for the third quarter numbers, the buybacks partly due to higher interest rates which may cause companies with discretionary buybacks to pull back a bit to horde cash rather than distribute it. right now, there are a few dozen

companies sitting on billions in cash. this cash is very typically invested in short-term debt instruments that generated almost no income in the past but now suddenly, these companies can get 4 to 5% returns on that. this is significant when you're a company like apple. alphabet, exxon mobil. apple has over 160 billion in cash. suddenly, these are generating significant income. 4, 5%. now this is not necessarily a reason suddenly to be bullish on cash for its companies but it does provide a modest cushion against a weaker economy. in other words, it's helping them out. the implication for earnings is that buybacks are sold to investors primarily as a way to improve earnings per share so a lower level of buybacks potentially would be a modest negative for earnings. >> and that's because as you take that stock out of circulation, you are calculating earnings over a smaller

denominator. that's one of the reasons these are so popular among executives. >> there's been a lot of debate about the fact that some of these buybacks tdon't necessariy reduce the earnings per share because they give options on the front end so it's a giant hamster wheel, so for the companies that have been reducing their share count, apple is one of them. they're a big buyback monster. potentially stopping or slowing down buybacks would be an influence. >> where do companies keep their cash when they have $160 billion in cash on hand? where do they put it? >> apple, of the 160 billion, about 60 billion is in very, very short-term instruments. less than a year. the other 100 billion is generically, i can break it down more for you if you want, but instruments above a year, usually less than two years.

a company like apple with 160 billion will have a very wide mix of securities. generally, it falls in to two buckets. usually below two years. >> treasuries or what? >> there are mixes here. i'll put it on the website what apple's look like. they used to generate nothing at all but now no matter what it is, any short-term instrument is generating 4 to 5%. that's 8, $9 billion a year for nothing. just free money. didn't exist before for apple. >> all right, sir. thank you very much. rising rates have hit the housing market as you know. diana olick join us now with more on the housing stocks. >> hey, ty. i want to start with mortgage rates which are driving the stocks. after a jump yesterday, the average on the 30-year fixed moved higher today to 7.4%. on september 1st, that rate was

at 7.08% so a pretty sharp move in just one month. and really also in just the last week. builders did sell off heavily yesterday and are back in the green today, but if you look at the one month, you can see the toll these rates are taking. builders had been benefitting but affordability is kind of crushing that advantage. homebuilder sentiment is in the negative territory for the first time in five months. the home improvement space isn't doing any better. names like sherwin williams and home depot all down. zillow group hit particularly hard yesterday and for the month along with compass and red. all of these sectors are fairing worse than the broader market as they are heavily dependent on interest rates. the 30-year fixed was at 3% just three years ago, tyler. >> what does this mean for these

stocks? they had a rough year last year. a pretty good comeback this year. what's ahead for them? >> well, it depends on mortgage rates. we did see the builder stocks start to do well over the summer. they were reporting incredible earnings. because there's nothing for sale on the existing home side. we're starting to hear about more sellers putting their houses on the market right now and that's because home prices have started to tick up again. so people want to cash in on that. but it's definitely not enough to make it supply and demand imbalance level out. it's going to take a lot of time and we could see rates head up toward 8%. so the question is when does it hit the mark where the entire market stalls. >> very interesting. i know of a person in the town where i live who has put their house on the market now because of two things. the market is robust. they're afraid rates are going to go higher in the spring and

in the spring, there's going to be more inventory on the market. so they're putting it on at what is seasonally and traditionally a low point in market activity, october, november. >> a house in d.c. i know just got ten offers last weekend. >> wow. >> ten offers. >> wow. astounding. thank you. >> sure. >> i was going to ask where your friends are going to give up that mortgage rate. >> it's a long story. ultimately, they're going to relocate out west. >> yeah. >> and they want to release some of the capital. >> about the only people eager to put their house on the market for that reason. let's check in with rick santelli in chicago for the latest on rate moves here. rick? >> you know, it's been one heck of a three days. look at the charts from 460 on monday to an intraday at 488. 28 basis points and twos to tens, the least inverted in a year.

you know what else in a year extreme, the distance between ten year u.s. and ten year bunds is the widest it's been in a year. you know that reverse repo parking lot, in december, it was $2.5 trillion. today, it was 1.4 trillion. the smallest in two years and they're still paying interest on those so why did they move? nobody wants it almost at any interest rate. let's talk to a trader. dave. you've had a wild week. tell me your thoughts, what you've seen. the equity markets is moving in your world. >> well, i think that with the inverted yield curve, i think front end of the curve is going to come down. they didn't see it flattening out as in the back end going up as hard as it has. it's kind of like one of those things that's going to cause the

most pain, that's what's going to happen. >> with rates going up, prices going down and steepening a curve, that's a wild dynamic for sure. you know, the president at one point had a whole group of nobel exists say that the government spending wasn't going to cause inflation. any thoughts on that? >> it seems like everything the government and fed says is 100% wrong. for the last 70 years, every time yield curve is inverted, we've had a recession. oh, no, just trust us. it will be fine. when was the last time they were right about anything. >> we could debate as to the accuracy of inversions. here's the issue. many are saying to me today that the reason interest rates have gone up is because the economy is doing well. i have a thought about that but before i tell you mine, i want to know yours. >> when you are constantly for ten years giving out free money, eventually something's got to give and i think it's starting to give now. >> i would agree. to me, the least plausible

reason for interest rates going up is a good economy. i wonder if this world's gotten politicized. you know why it's going up? supply, debt, debt, debt and deficit and the fact that if we always elect santa claus, you're never going to have anybody control spending. any final thoughts? >> last time i was on, i basically called the top of the market. no big deal. >> now what we want to know is when the bottom is. thanks, dave. >> exactly. take care. >> back to you. >> cut you off there, rick. cut him right off. rick santelli, thank you. so how should you position your f portfolio? mr. speaker, you've been vacated. the president of guide stone

management. what kinds of equities do those moves infer? >> higher yields tend to be negative because they reduce the present value of cash flows so the current value of the equities has to fall. the other thing to keep in mind is higher yields are more detrimental to longer duration equities like the tech companies whose cash flows are way out in the future. that said, the yield volatilities concern us the most. look at what's happen ng the ten-year today. for bond managers saying we want to take out more duration, go longer because the ten-year is approaching 5%, yell, you're playing with fire there because there's still so much volatility. >> from a portfolio standpoint, what does this cause you to do

if anything? invest in different kinds of equities or a reduced percentage of equities or both? >> at this point in time given there will be some kind of economic downturn, we want to own more defensive companies. that's when you want to own growth stocks. now if yields will eventually fall if we do have a downturn. but we also like short-term and short duration investment grade credit because where the yields are today, we haven't seen since 2007. >> you hope there's no default risk when you're talking about the bluest of the blue chips. one of the confounding things to quote josh brown, the safest parts of the market have been some underperforming ones lately. utilities. a stat from bespoke says the 100

highest dividend yielders from the s&p 500 are down this year. people mightfeel like i want to be defensive and said. what does that look like exactly? >> those traditional areas you were describing, their valuation abilities aren't what they used to be. utilities is a classic example. they borrow money. they don't throw off free cash. w when you see the yield curve behave the way it has, there's no question the entire approach is under threat. if i could move you though for a second, as much people want to take on the magnificent seven in these large companies, they're the ones as your previous segment just described, they have all the cash on the balance sheets. they're going to continue to generate cash and when you look at the quote defensive three,

it's migrating towards those na names. >> so where would you put money, jerry, right now? >> right now, you look at the cash coming out of a meta, microsoft, both of them are down significantly and valued from where they were say two years ago. that's more than tracking 5% long bond environment. they just throw off so much cash. it's so long on businesses they have, i don't see how that's not the defensive play. if you want to go beyond that, why not look at the energy. >> 2:20, go ahead. >> look at the energy names that we marked down the price of oil $8 here over a fear of recession but no one's fixed the world oil problem.

the fact that we haven't put any money into the ground for so long that they have a wind behind their back and already started very attractive low valuations. take those two extremes, something that's trading at ten times has a 5% yield runway with a similar set of characteristics, i think you'll cover both risk profiles in the market itself and i think that's a great way to balance the portfolio. >> we're told we have to depart right now. good to be with you. >> coming up, key bank out with a rare downgrade of apple saying it's sitting out this iphone cycle. we'll speak to the analysts about their concerns. and the ides of october. the first ever ousting of a house majority leader sending d.c. to task. we'll diuss e teiascthpontl

impacts further ahead.

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losses. they called ftx a house of cards. a attorney called it a massive fraud. they accused him of stealing billions of dollars from thousands of evangvictims and s there was a $10 billion hole of customer money missing. also that he knew all that and lied about it. they highlighted some of the celebrity endorsements and his time in front of congress. also his efforts to gain customer trust from some of the advertising they did. the government's attorneys also accused him of funneling ftx money into an alameda bank account and creating a back door in some of the code that allowed the company to withdraw endless amounts of customer money. they said again, he knew about it and lied about it and say he took steps to hide all this. the prosecution does plan to present documents. we're going to hear from investors and some of the top executives and that inside circle we've talked about, those

are going to be key testimonies. his lawyers said he didn't defraud anyone. they claim that he acted in good faith and at the time, made what he thought were reasonable business decisions. that really played over and over again. they said he thought it was reasonable. his lawyers called him a nerd. they said he didn't party. didn't really drink. they pushed back on the imagery of him being a villain and tried to frame it as a case of another high flying start up moving too quickly and used the metaphor of building the plane while flying it and said that same plane flew into a perfect storm in this crypto downturn that happened last year. all the while, they say he didn't have the right risk management in place but they also say that he reasonably believed he was acting in good faith. for example, they said it's not a crime to run and be the ceo of a bankrupt exchange. they say it's not a crime to get tom brady to do a commercial for

you. they also said prosecutors are taking some of this out of context and tried to pour a lot of cold water on the witnesses. especially caroline ellison. her name came up a lot. a former girlfriend. they blamed her for not hedging and say that is the reason why this company failed. so it will be especially interesting to hear from her but they really used her name a lot and essentially said she already pleaded guilty and they asked the jury to really question some of her motives, but again, opening statements have wrapped up. we're going to hear from witnesses this afternoon. >> interesting, it's her fault, they claim. thank you very much. apple meanwhile is coming off its worst quarter in more than a year and there could be more pain ahead. the firm issuing a rare downgrade of apple today, taking it down to sector weight. the analyst behind the call joins us now. good to have you here, brandon. welcome. >> thanks for having me.

>> what is the trouble here? >> we really pointed out sort of fundamental reasons. we think the u.s. is going to go through a period of lower growth or even no growth. secondly, the international statement, when we unpack it, it's really only china that's growing. when you look at the competitive landscape with huawei coming back into the mix, that gives us some concern. those two points lead us to believe that estimates for apple, consensus has apple growing 6% in 2024 and we see more in the 3% range. growth is sort of hockey stick for what we expect in 2023. so we pair it all up from a

valuation standpoint, apple is trading fairly rich relative to history and other nasdaq components. trading at a discount and it's a large premium. >> so you've cited a couple of different things there. chinese competition from huawei in particular. i'm reminded of the line you're sitting this iphone cycle out. is there anything in terms of u.s. demand and things of that nature that you think is coming in short here? >> that's sort of key point number one. we think the u.s. from an upgrade rate standpoint is likely to experience lower than typical upgrades. so we've seen throughout the start of the year upgrade rates hit new all-time lows and we expect them to remain low for longer. fundamentally, it's all about care for your promotions in terms of getting customers into new iphones. we don't think carriers are incentivizing customers enough. from our standpoint, carrier promotions are pretty much in line from the last year, but

could be viewed as more constrictive because they generally require consumers to purchase a higher priced service plan. >> so are you hearing about the rollout of the iphone 15 and the pro and the pro max, number one, and would you say that it seems to me by watching a lot of tv that both the carriers and apple are being pretty aggressive at advertising this product and that the carriers are offering all kinds of inventives to get you to upgrade. >> absolutely. on the second point, we've seen for the last three years carriers put out $1,000 promotions and fundamentally, they've upgraded a lot of their customers on 5g. to your first question, our expectation is that iphone 15 builds are down slightly. part of the issue is that apple's had some supply chain challenges in terms of hitting

production. do expect mix to shift more towards the pro max model. we did raise our average selling price estimates for apple but it wasn't enough to justify estimates that were in line with consensus. >> yeah. >> all right. thank you very much. we appreciate it. >> thanks. >> coming up, oil in trouble? oil taking a pause today on its climb toward $100 a barrel. moving the opposite way but risin rising rates pose a major risk to the space as the economy is -- more on that when "power lunch" continues. when you're looking for answers, it's good to have help. because the right

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welcome back. here's your cnbc news update at this hour. another republican has announced a bid for house speaker a day after the ousting.

house majority leader steve scalise sent a letter to his colleagues seeking their support in next wednesday's election. representative jim jordan also said he would run. the man charged with murdering tu pac made his first appearance. proceedings were delayed because he didn't have an attorney present. davis was arrested last week after a grand jury indicted him for the 1996 murder. and nasa astronauts will be traveling to the moon in style. prada and a texas based start up group will collaborate to design space suits for nasa's mission in 2025. prada's engineers will work alongside the space team to develop solutions for materials and design features to make sure the astronauts are comfortable and protected in the harsh

environment. >> thank you very much. ahead, d.c. facing a serious dilemma after the ousting of mccarthy, law making is ill stat a standstill. a standstill. we'll discuss that impact, next. - cyber attack! as cyber criminals expand their toolkit, we must expand as well. don't go anywhere. next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

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republicans expected to meet next week following the historic ouster of kevin mccarthy. what does the speaker's race mean for policy going forward and does this uncertainty in congress increase the chance of a government shutdown next month? brianyan gardner is chief polic strategist at steeple. what is the possibility that democrats are going along for the days of kevin mccarthy? >> upon any given issue, probably a fair amount. certainly on ukraine funding. i think whoever wins the speaker's race among republicans is going to have to be very cautious on ukraine going forward and so it's a popular issue among democrats. but they might be in a tougher position going forward on ukraine funding. so there are other issues where the two sides have never agreed

but the distractions that are, and concessions that are going to be made in negotiations of securing the speakership may not be to the liking of house democrats. >> i think not. i think of this situation rather like a parliamentary system of government where a majority party puts together a coalition that may include some strange bedfellows or some fractious elements. then those fractious elements really have control over the majority party. is that not the case in this case where you have eight or ten or 12 members who are able, given the slimness of the majority, are able to sort of set the agenda, call the tune for quote the majority? >> let me put it in a slightly different context, tyler. it's a lot like college football that we've just seen. the pac 12, speaker mccarthy's

area, just dissent dissint grat. now we have the big competition. the big 12 is trying to get involved then not so much the aid that you were mention, i'm going to call out a group of moderate republicans from the northeast. it's not exactly a hot bed of college football but they could be determining who the next national champion is. so i think those moderates may have taken some lessons, taken a page out of the playbook of congressman gaetz and company and they're the ones that if they choose to use that leverage, can determine the outcome of the speaker's race and the agenda going forward. once gaetz goes down that road, everybody can play that game. >> and so what i'm hearing you say then is that maybe there are northeastern republicans of a more moderate stripe than gaetz and good and some of the others

who are a part of that gang of eight or so, that they may so, oh, not so fast, guys. we have the power of veto, too, here, and you're going to come up with somebody who's acceptable to us. >> the current house majority is about four members. those four are built on the state of new york where new york republicans did unexpectedly well in the last. those are the people that have outside influence in the next speaker's race if they choose to use it and i think they will. >> isn't this rather like the situation with the democrats where two members, kristen sinema and joe manchin, have effectively that same veto power of what can get done in the senate? >> yes. i think it's a great comparison, tyler. so very -- in small majority, small groups of members in each body have outsized influence.

that's what we have been seeing really going back to since the election of president biden. with the senate democrats and now with house republicans. >> brian, what would you say that mccarthy's missteps were here going maybe all the way back to january and what lessons should the next speaker draw from that? >> it's easy to second guess and criticize. i think a lot of people are pointing to the deal he made with congressman gaetz and others about the procedures about removing the speaker. government is compromise. it's dirty. it's a dirty exercise. it's a hard exercise. and that compromise was necessary for him to get the speaker's gavel. and if he didn't make that deal, somebody else would have so we'd still be in this situation. i think a little bit more outreach to democrats may be just toning down the rhetoric a little bit could have saved him.

but again, this is a lot of second guessing. a lot of rear-view mirror driving. you know, i think given the circumstances with the body of government in a small majority and a minority within the majority that's willing to torture the speaker, you know, i think at the end of the day, kevin mccarthy did pretty well. >> given the fact that government shutdown looms in six weeks or there abouts, is it more likely now that there will be a shutdown than if mccarthy prevailed? >> probably. just the tone the house is going to pick a new speaker, that's at least a week. maybe longer. that's time that's not going to be spent passing appropriations bills then we'll get to november 17th and the decision will have to be made again. going to shut down the government or do another continuing resolution. we see how popular crs are among

conservative republicans. a new speaker is going to find themselves in a very difficult situation right off the bat. >> all right. brian, thank you very much. as always, great to see you. >> thank you, guys. up next, oil. a crude reality as they post their worst day in four months, down more than 5%. wti is down below $8 a barrel. and as we head to break, cnbc is celebrating hispanic heritage sharing stories of influential business leaders. here's citi's head of investments for latin america. >> my dproots have really shape who i am today. being latino can be your superpower. i believe it generates a diversity of thought and inclusion. my advice for latinos is really to bring your full self to work, to allow yourself to not forget

your roots and actually maintain your sense of belonging to your community.

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welcome back to "power

lunch." oil sliding back below $85 a barrel on a 5% drop today. its lowest level in a month as opec left production levels unchanged. just last week, we were talking about the prospect of $100 oil but prospects seem back in focus. here to weigh in and explain how to in energy now is rob from tortoise. it's good to see you again. >> thanks, kelly. >> i'm going to skip right to a poster child today when you think, well, you know, energy stocks can still do well in an $85 oil environment. what's going on with devin, for instance? that stock is down sharply today, down sharply this month. what's going on with investors in this space more broadly, do you think? >> well, i think if you look at just the stocks that have commodity price exposure, clearly the decline in oil price today is driving stocks lower. devin is a classic example of that. it's an oil and gas producer, so 5% decline in oil

prices is going to result in devin stock declining. in the second or the third quarter, i mean, oil prices were up substantially and a lot of energy stocks rose and performed pretty well during that quarter. little bit of profit taking as well as a little bit of lower cash flow as a result of that and that's what we're seeing today. >> again, just to stick with this emblematic name, it's down 30% this year. so, you would think, okay, well, you know, i mean, this is always the thing about investing in energy. they say, well, it might move with the move in crude, but it should still be profitable in the long run at these levels, for instance. is that being called into question? is there something else going on here? >> for devin in particular? no, you know what? devin is a high-quality producer. devin has adopted what a lot of energy companies have, which is a disciplined approach to investing, which means that basically they're not going to spend a lot of cash on drilling expenditures, and so what that means is devon will have a lot of free cash flow, and it will

be able to buy back a lot of stock as well as pay a did and a variable dividend. in devon's case, it pays a variable dividend that obviously varies with the price of oil. so, i would expect them, and when it announces its dividend sometime here in the fourth quarter, the devon dividend will be a little bit higher. why is it down 30% this year? in some cases, it was because oil had a rough start of the year but there are a lot of energy stocks that have done well and are a lot less volatile than some of these commodity-sensitive stocks. >> you would think that that would signal maybe higher prices, not lower, but we've seen a stall in oil prices and a decline today to prices that we haven't seen in a month or so. why? >> yeah, right, tyler, you're exactly right. the second half of the year, we still expect the global oil market to be undersupplied, so

inventories fall. typically, when inventories fall, as you highlight, prices rise. you know, today, that's not happening, and it's always continuing to fall, but prices are falling. why is that? i think kelly mentioned it in the beginning of the segment in saying that simply what investors are interpreting today is the fact that the saudis and the russians decided to continue to prolong their voluntary supply cuts as maybe that's a signal that the global economy is a little weaker and you don't need that oil. so, we'll see. another at tortoise, we think you're going to probably continue to see higher oil prices, but that will be driven really by these declining inventories that we'll see for the rest of the year. >> you have three stocks -- i'm going to ask you to go quickly. one oak, pioneer, and energy transfer. why those? >> yeah, so, two of them are energy infrastructure. one oak and energy transfer, both offer high-dividend yields. there's a lot of uncertainty in the markets right now.

are we going to have recession, are we not? we know oneok is going to pay its dividend. it's paid a dividend for 25-plus years. energy transfer is the same way, higher dividend. it's going to grow a dividend 3 to 5% next year. we know that's pretty certain. and their cash flows at these companies won't be that long with the price of oil. another one we like, pioneer, one of the largest producers in the permian basin, really attractive stock as well. same thing as la lot of energy stocks, lot of free cash flow returning that in the form of a dividend and this variable dividend component and investors will see a higher dividend this quarter because of a higher oil price. >> and i am hearing you say loud and clear that even though they are high, these dividends are safe, yes? she? ab >> yes, they're actually going to grow. >> all right, rob, thank you very much. rob thummel, appreciate it. we will power through as many more stories tofhe day as

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>> i don't know that i believe this. this is like giving your autonomous driving vehicle the final say on whether you're going to drive off the cliff or not. i don't -- it makes no sense to me. i know you got to have humans making the final call. >> i would hope so. i would hope. >> we shall see. millennials lag prior generations when it comes to home ownership and earnings, but the data show they are outpacing their elders in retirement savings. according to vanguard, millennials earning a median salary or better should expect to replace 60% of their preretirement income between investments and social security, compared with 50% for gen x and baby boomers. presumably, this is because the millennials got the religion sooner on putting money into 401(k)'s and maybe because they're not putting big down payments on houses as frequently. >> it's reassuring. i've not always been a big believer in the doomer story,

but you hope anyone who's not doing this gets the hope they can catch up. "the wall street journal" reports netflix is planning to hike rates once the hollywood actors strike ends. no word on how much or when it would take effect. wa wa warner brothers discovery already raised prices. the content companies need the money to pay for the content. >> and maybe netflix has enough content for pricing power. the federal reserve board is launching instagram and thread accounts. i've been waiting for this one. i can't tell you how excited i am. the goal is to make its informational and educational content more accessible. the first post is a welcome video from fed chair jerome powell who will also demonstrate his shuffle dance moves. >> yeah, you know, guess they have to have a social media presence. i really don't know what. >> good for him. >> infographics. >> go get them, jerry.

how can we leave without mentioning the redesign of toilet paper? charmin will change the perforated line to a scalloped edge. >> thank goodness. >> and they say we don't innovate anymore? scalloped edge in toilet paper. it's going the change the world and society. >> welcome to "closing bell." i'm scott wapner from the new york stock exchange. this make or break hour begins with rate relief as a weak adp report sends yields lower. stocks take their cue and try to get back on track today. we'll see how it goes but there's your scorecard with 60 minutes to go in regulation. hasn't been the strongest day for the dow, as you see, but after yesterday's selloff, green of any kind is a welcome sight, isn't it? salesforce, microsoft, the big winners for the industrials today and speaking of tech, the nasdaq is outperforming on that holdback in rates, despite a rare