they saw operating margins expand, which is what we wanted to see down 27% from its highs. i think it's a buy >> they raised prices for the third time in a month. prices and volumes are going up with the end of the uaw strike what's not to like >> good stuff. thanks for watching, everybody "the exchange" is now. thank you very much, scott welcome to "the exchange." i'm dominic chu in for kelly evans. just over 24 hours on the fed's decision on interest rates, so will the committee hold steady in back-to-back meetings for the first time since early last year we'll look ahead to tomorrow and what it means for stocks and bonds. plus, mortgage rates remain near historic highs, at least for this cycle but one stock is riding that wave to become the nation's number one servicer, closing in on a $1 trillion portfolio with

balances the ceo of mr. cooper group joins us coming up and in the spirit of halloween, we're looking at the scariest hypothetical bear cases in technology. think alphabet, amazon, netflix and even meta platforms. the scenarios would trick investors and treat the bears. we'll explore those. as we head out to the market action today, check out what's going on right now it's been a generally down day for stocks overall but the major indices have crept into positive territory. the dow and the s&p 500, the nasdaq composite, slightly higher, 0.1 of 1%. and at the lows of the session, the broader s&p was down 13 points it's up about 11, 12 right now the dow and the s&p are below their longer term trend or 200-day moving average the nasdaq is sitting just about on top, right a little above

that 200-day moving average. so keep an eye on that semi conductor stocks in focus a couple of diverging stocks, but reporting a smaller than expected quarterly loss. on the other side of things, you have a 16% drop for lattice semiconductor after better than expected quarterly results but a disappointing revenue forecast lattice down about 16% and nvidia, the biggest chipmaker by market value in the s&p, dropping roughly 2% today but what's noteworthy here is that brings its overall market cap to below the $1 trillion market so we'll get a check on nvidia shares, currently $403.42. we'll end with shares of apple, down a day after making a series of product announcements involving new chips, pro laptops and a new laptop computer model. apple trading slightly below its

200-day moving average so let's begin the discussion with the fed's decision on interest rates beyond the market and economic impact, there are growing concerns around the size of the federal deficit and the cost of servicing debt amid this higher interest rate environments steve liesman has the results of cnbc's latest fed survey hi, steve. >> yeah, dom, it's like the fed has taken the number two spot among concerns the size of the debt, the growth rate, and the cost to service it have now become significant concerns among participants in the fed survey but there are differences over what to do about them. let's go through the data here 87%, very or somewhat concerned over the size of the debt. 100% are worried about the speed with which the deficit is actually growing and 90% are concerned about the cost of servicing that debt. moving on, the federal government should cut spending 42% say that's how to deal with

it 7% say raise tax revenue 45% say do both. the philadelphia trust company writes in through the survey -- this is realistic and provides investors an opportunity to receive a good return. however, consumer borrowing costs have been increasing in tan tell that makes the huge federal deficit even more worrisome, reflecting the view of a lot of the participants but there is an offset when it comes to the fed and rate hikes. 65% say that a 5% sustained for a while should make rate hikes less likely. 23% say no effect, 13% say it could make fed rates more likely what is responsible for the high yields fs i was gratified by this, a third say strong economic growth, a third say increased debt, a third say higher for

longer strategy. that's what my reporting has revealed the survey found no hike expected tomorrow or even in the foreseeable future the next cut -- the next move, a rate cut but that doesn't happen, dom, until september 2024 so don't hold your breath, sir >> all right, steve, what's curious about the fed data that you have collected, the survey data is that in the past we have talked about how much people have been talking about the possibility of a recession what is it like this time around is one coming any time soon, according to the survey? >> well, you remember, dom, another news outlet made a big deal of the fact that the recession probability had fallen below 50% in their survey. it fell below 50% in our survey several months ago, and remained right there. 49%, remember, it was elevated at 55%, even 60% that's come back down. we asked two questions -- what is the probability of a recession? what's the probability of a soft

landing? it's 42% for a soft landing. 49% for a recession in the next 12 months. >> staeve liesman, thank you ver much the fed expected to pause tomorrow, leaving rates unchanged for the second consecutive meeting. is this enough to halt the surge in bond yields, especially if the longer end and spark a rally for the stock market so here with us to discuss are tom lee, a cnbc contributor. and michael shchuschumacher gentlemen, thank you both for being here so much michael, i'll start with you with the bigger picture. we have all ends of the funnel covered at this point here steve laid out the economic case, is there a compelling reason why bond yields should stay where they are, the ten-year around 5% or so or longer >> steve hit the nail on the head he talked about concerns about the deficit, about treasury

supply, and by the way, tomorrow morning at 8:30, tune in u.s. treasuries going to announce supply increases. people are worried about this, dom. in the last three months, client after client has talked about this it's not only investors, it's issuers. most reviewers have a guess that doesn't go away quickly. >> has it been absorbed relatively well in this early stage of getting investors on the bond side of things, used to this idea that the treasury will sell more debt >> they get the concept, but the speed with which treasury has ramped up issuance is a bit scary. and the deficit is 8% of gdp that's the sort of number we see in a crisis, in a war, in covid, something like that. we're not in those situations now. people are concerned, and i think it's weighing in the back of their minds, thinking maybe the deficit goes up even further. there's even more supply than we would expect that's much worse. so that comfort zone is just not

there yet. >> there is a comfort zone for the stock market generally speaking, there has been this year if you look at your comments in the past, you have been right, things have been generally more bullish. but ha about the last few weeks? do you think that we're set up for a year-end stock rally if interest rates continue to show at least some signs that they're stabilizing on the long end? >> stabilizing would be very good i think, dom, for a year-end rally, because we're getting through -- i think the data is going to lean soft on the jobs, which is good because it takes some of the pressure off the fed having to do higher for longer and could pressure yields lower and sentiment is so negative now that if we are in a situation where bad news probably is good news for equity. so i think the setup is good, but this is a really critical week >> what about this notion that we have interest rates maybe stabilizing, and this overall

story in the markets about a certain subsection of stocks, the magnificent seven, whatever you want to call them, being the engine behind the market, is the fall in yields or hypothetical fall in yields that much more of a point for stories in the stock market because of those magnificent seven? >> yes i mean, for a lot of reasons the magnificent seven, as you are pointing out, really powered the equity returns this year they kind of took it in the gut during earnings season, but there's still very good secular stories. if interest rates stabilize or start to fall, that has a positive influence on pe so i think it is -- again, i think these stocks lead into year end but they are highly sensitive to what rates are doing >> with rates, michael, it's about how they set up for corporate fundamentals we talked about the strength of the u.s. dollar specifically with regard to the japanese yen. we have seen some real weakness

in certain parts of the currency market versus the u.s. dollar. rising yields are part of that story. how does that then set up big picture wise for global economic flows? is it a situation where the u.s. can continue to help maybe power other parts of the global economy as well, or is it going to be a headwind for everybody not the snus >> the currency story is interesting. we think the dollar rally is just about played out, but not necessarily against every currency the yen is a great example there was a confusing statement out of the bank of japan last night, sort of raised the cap on yields but not exactly the yen has weakened so i would probably set that one aside. if you think about other currencies against the euro, canadian dollar, et cetera, the dollar's recent strength has been propelled by the u.s. economic data being comparatively better than data overseas not great but better we think that's about played

out. so that last push for the dollar is about done, unless the fed sounds hawkish tomorrow, i think the dollar is going to hang in to perhaps weaken over the next month or two >> how big of an impact is the economic story in the u.s. driven by the interest rate picture right now? is the fed maybe perhaps justified in holding off on interest rate hikes in the next couple of meetings to see how things play out? do you think it's an appropriate path of action >> we think holding off is appropriate. we talked about it, steve talked about it it's been very center for a lot of people, so you can't get past that we think that's done a lot of work for the fed probably the prudent path is to hold off but the tough scenario for the fed is if it holds off this meeting, perhaps a couple more and if inflation sits, doesn't come down, then the fed is in a very tough spot. does it come back in six months and hike again it doesn't want to go down that road, so i would say tomorrow,

december, yes, pause give it some time to play out. but you can't completely discount the fed having a comeback again >> tom, there's been a lot talked about with regard to the participation of other stocks outside of the top 10 or 20 top market caps in the s&p 500 it's been a big divergence starting in the spring of this year do people just buy index funds tied to the s&p 500 because it is just ten stocks that drive it or is there hope for stock pickers out there, can value oriented sectors participate year end >> that's definitely weighing on investor's minds, but there haven't been inflows into equities this year, so i'm not surprised that the large-cap names are leading. if interest rates stabilize and we're getting into a decent seasonal period and stocks show some resilience, and if the economic data this week in particular comes in a little soft, i think you're going to see inflows into equities.

that would be the equal weight stocks, as well. >> tom, before we let you go, a quick last word, is the american consumer in a good enough position to power the holiday shopping season? >> umm, well, you know, they've been resilient so far. so i would say it's been a mistake to kind of -- to write off the consumer but that's important, too. >> they drive 70% of the economy. thank you both for being here. we appreciate it >> thank you, dom. well, higher rates continue to enter things like mortgage demand and consumer spending, they might provide a silver lining for our next guest. shares of home lone servicer mr. cooper group are up 40% this year, even with mortgage rates trending toward the highest levels we have seen in decades joining me now is chairman and ceo of mr. cooper group. jay, thank you very much for being here i don't know, jay, if you heard some of the conversation that we

just had with my guests, but the economic concerns and interest rates have been front and center for so many folks out there. is the home industry in a good position right now with interest rates for 30-year fixed rate loans hovering around 8% well, first of all, thanks for having me, dom i think, look, with our balanced business model, there's two segments there's the origination and servicing segments with rates where they are at today at that 8% level, the origination mark is very slow. our view is it will continue to be slow, because we think interest rates are going to be higher for longer despite the most recent communication there. you know, if you think about most customers still have interest rates in that three to four range, so rates would have to move significantly for it really to be meaningful to the origination business for us, with our balanced business model, we have a giant

servicing portfolio of $937 billion in servicing and that is killing it we've made significant profits this year in that segment. i think that's one of the leading indicators of our performance, because customers are just staying in their homes longer, because they like their interest rates, and, you know, that leads to a stronger earnings growth for us it leads to higher cash flow and higher profit in that business >> we're just showing viewers right now some of the stats around mr. cooper kind of at a glance the $937 billion in unpaid principal balance, so-called upb, that's what a lot of services look at because you collect a fee on remaining principal balances take us through what exactly is the driver behind how big you've gotten, and what exactly is the path forward to getting that trillion dollar market and beyond >> well, it's really exciting.

we've grown this year considerably we have acquired over $160 billion in new upb, and we just announced a new subservicing client of over $80 billion we think we will cross that trillion dollar tresh hold in the first quarter of next year there's a couple of factors from a macro standpoint impacting that one, if you look at the banking sector, given some of the potential new capital requirements, we think that's going to lead banks to be sellers of mortgage servicing rights, or upb, and we'll be one of the buyers of that. and then you look at the independent mortgage bankers just given the low level originations and the low level profitability, they are sellers of servicing, as well. and we have been the beneficiary of that. we're a huge acquirer of servicing. we think that's going to continue

candidly, we think for the next two to four years, more servicing will come to market and more upb get sold than we have seen in decades maybe ever >> and what's interesting about the story overall is there are also other sides of the business zoman is one that people don't know as much about it is a platform, e-commerce, data and analytics driven, where people can buy, sell data, auction type data that sort of thing. is there anything within that business that you're seeing that indicates a direction overall for the housing market could be going, given where interest rates are, especially for that 30-year fixed rate home loan >> well, you're right, dom i view it almost as a thin tech play it's really an exchange, a marketplace for buyers and sellers, you know, to acquire servicing. and the short answer is no, we're not seeing a significant amount of activity there,

because the housing market, as you know, the housing supply is low. the transaction levels are low, and one piece of the zone platform is helping the government sell foreclosed homes. we are a big provider of services there, and delinquencies are at all-time lows, as well. so we are not seeing any real, call it green chutes or significant activity there yet we think that will come, and we think we have one of the best marketplaces out there so there will be buyers and sellers that will transact, but right now there's not a significant level of activity. >> jay, one last word before we let you go do lower mortgage rates, if we hit 7%, hype teothetically 6%, s that kickstart the housing market >> i think, dom, slightly. we have a balanced business model, so we're very, very focused on our servicing

business we think that's going to continue to grow we see massive opportunity there. but even with that level of movement in rates, you just -- i don't think you're going to see, you know, a real significant takeoff in the origination market it will increase, and you will see some level of activity there beyond what you are seeing today. but, again, given where rates are for most consumers, it's not going to be what we saw. certainly not what we saw in 2020 or '21. >> jay gray, thank you very much come and see us soon >> thanks for having me. coming up on the show, we're hitting the deck with the ceo of trex we have all kinds of housing stories in play. we'll get the latest home improvement trends with shares on track to snap an eight-week losing streak at this point. plus, another view of the consumer with the ceo of retail -- we'll ask how he's

navigating this environment for retail and stocks are well off session lows in fact, arguably right now just about session highs. the s&p 500 is up 1/3 of 1%, 4179 the last trade. "the exchange" is back after this ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. at ameriprise financial, our advice is personalized, based on your goals, whatever they may be.

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welcome back to "the exchange." shares of trex are higher after reporting strong sales growth and improved profitability so what's behind the boost the company citing operational efficiencies and, of course, a resilient consumer demand picture. for more on what this could say about the consumer and the state of home improvement, let's bring in trex ceo brian fairbanks. thank you very much for joining us here on cnbc. this is something that i have a limited amount of expertise on, but i know something about it, because i have done a decking project in the last few years. lumber was a concern composite is a step up then there's full pvc. take us through the demand picture for trex on a composite basis when it comes to home builders and home imimprovers. >> great to be back on the show. we operate in a segment of the

repair and remodel segment that focuses on outdoor living. that model has held up quite well over the past six months. we have seen a big increase during the second quarter, as well as the third quarter. that's throwing through to the strong sales numbers we have been able to show. we expect that to continue well into the fourth quarter. >> now, you also mentioned in your report that a lot of this was driven by unit volume growth, that people are consuming and using more of your decking products what exactly does that say about where the home improvement budgets are going right now, and whether or not people are willing to pay up above lumber for what they're doing with their projects >> that's correct. we have not taking any pricing since the beginning of 2022. so anything coming through this

year is all based on volume. we have product lines that fit any budget the consumer might have so anywhere from $2 a linear foot, which is about two times the price of wood, up to $6, $7 a linear foot for our premium series, which mimics the look of real hardwood and provides superior performance >> brian, any time we talk about the housing market or housing related products, interest rates invariably become part of the discussion they have to be when it comes to home improvement as well, because often times in the past, people have tapped home equity to then pay for projects as arod the house. are you seeing the effects of higher interest rates on end user demand for your products, and do you think it will be a hindrance if rates stay and what the fed tells us all higher for longer >> yeah, there's two impacts for

the trex company people are staying in their homes longer because it's more difficult to move up when they stay in those homes longer, they stay in the home longer there are 50 million to 60 million decks in america half of those are at or beyond their life span. there's no better way to add value to your house than putting in a trex deck >> there's the product pitch, i get it i'm going to give you the last word on a more open-ended question here on your end. do you feel as though the interest rate environment as it stands today can lead to longer term performance for your company or what happens if interest rates do hypothetically go lower from here >> i think there's going to be an adjustment period for the economy here we went over a fairly quick period of time for mortgage rates, anywhere from 3% to 4%, up to 7% to 8%

it's going to take time for the consumer to get back to what we consider the new normal. let's assume that falls back between 5% and 6% over the next couple of years. we will adjust along with that it will go back to the comments i made before, that there's a lot of wood decks out there that we can replace with trex decking. we operate in a segment that is much more resilient than new home building, specifically related to outdoor living. >> all right we enjoy our deck. we sprung for the full pvc, but made a very calculated decision on that front. we looked at trex and competitors and wood and decided to go outside of wood. thank you very much, sir see you soon >> thanks. still ahead in the show, tech is trying to end october on a relatively positive note, but still on track for the third straight month of losses for the first time in over a year. coming up, we'll look at some of the scariest bear cases in that industry is iba aernge"s ckft th

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♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. welcome back to "the exchange." markets are just about at session highs as you can see here the dow up about 48 points the s&p up about 13 and the nasdaq up about 12 points. let's catch you up on some of the stocks to watch. jetblue losing in altitude after reporting earlier this morning you can see down 11%, a 12-year low for the stock. it was a wider than expected loss jetblue cut its all-year outlook. now let's turn to what else is going to happen. it's going to depend it's $3.8

billion takeover of budget airlines and vf corporation, among the worst performers, after revenues came in slightly better but it withdrew its guidance as shoppers continue to focus more on spending on essentials opposed to more discretionary items. those shares down 13.5%. and pinterest, shares are soaring, reporting better than expected profits and revenues. pinterest calmed fears that ongoing battles and wars between israel and hamas would lead to bigger advertising losses, saying some of those clients paused ad spending and have come back to the platform so shares up 18% now let's go out to tyler mathisen for a cnbc news update. good after >> thank you very much the fbi director christopher wray warned today that hamas'

actions in the middle east could inspire terror attack in the u.s. he testified that terrorist organizations have called for attacks against the west and americans in particular in recent weeks the warnings come as anti-semitism grows in the u.s. where jewish communities are being targeted by extremists across the spectrum. the senate planning to vote on whether to subpoena three republican supporters who were involved in luxury trips provided to two supreme court justices the two wealthy donors and the legal activist would be subpoenaed as part of the investigation. the 11 democrats on the panel could authorize the subpoenas without support of republicans hollywood studios and actors returned to the negotiating table today. they worked independently monday to prepare for the talks, saying the parties are still far apart. actors have been striking for more than 100 days, continuing

after the writers guild ended its strike back in september dominic, back to you >> thank you very much, tyler mathisen coming up on the show, retail is on pace for its best pace since june after raising guidance we'll ask the ceo how he's navigating today's macro economic environment that's coming up next. and now cnbc trend tracker ♪ ♪ every day, businesses everywhere are asking: is it possible?

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welcome back shares of brixmor up about 3% after upping its full-year guidance for 2023. those results were driven by continued strong lease demand

from tenants, including companies like tjx group and kroger joining me now for an interview is jim taylor, ceo thank you for being here on "the exchange." >> dom, thank you for having me. >> let's talk about the state of real estate in america it's obviously a huge person, especially on the commercial side of things given interest rates. your results paint a good picture, so are things for retail as good as your results would indicate >> you know, we are focused on the open air segment of retail so our centers are generally grocery anchored and consist of not only grossers, but apparel users, everyday uses such as quick service restaurants, coffee, et cetera. and the consumer remains strong. traffic at our centers continues to hold much of the bump that we got during covid, and tenants

are profitable they found that the store is a great way to connect with the customer in a place that's convenient for the customer. so business remains very good. one of the things i talk about on the our earnings call today, you're not seeing any new supply, because there's been no development in our asset class so when you couple that with strong retailer demand, a good consumer, business is very good. >> now, anecdotally, only because i was down in south florida just a couple of weeks ago, where there are many of those open-air type facilities some people call them strip malls, other people call them other things but the idea is, you have a large grocery store or a walmart or some kind of a home depot or something at costco, and you have starbucks, appleby's, that kind of thing with retail presence is that the right mix? is that the future of retail that seems to do a lot better

than some of the indoor shopping malls that we think of traditionally in our own minds >> i think it's a compelling formula. you're bringing the retailer close to where the consumer lives in a format that's convenient and frankly efficient for the retailer in the breadth of uses coming into those open air centers is as broad as i can remember not only do you have grocery and some of the other larger format retailers that you mentioned, you have specialty grocery, restaurants. in fact, you have many restaurants that are leaving urban centers to come out to the suburbs closer to where people live to up the quality of the experience and we already ward the customer for the time spent. so it really is a very compelling model i think that underlies the success that we have been seeing and the success that the sector more broadly has been seeing >> we're showing viewers right now a graphic, some of your core tenants. i mentioned kroger, publix is in

there, trader joe's, whole foods, ross stores, chipotle, brand names that a lot of folks understand and know about. can you give us some insight about which of those tennants, what types of tenants are showing some of the most interest in leasing space within those open-air type formats? >> that's a great question the answer really is as broad as we have seen in some time. so not only do you have demand from grossers and specialty grossers, but demand from each one of those segments. not only the retailers that you mentioned, but many more, again, who find that the store is a profitable channel with which to connect with the consumer to set the grand standard, to really serve the consumer and we are seeing great success across a wide variety of categories >> jim, one last question before we let you go. your foot print is relatively

varied are there any hot spots in particular for this outdoor retail type concept? >> you know, we're really seeing strong demand across the country. obviously in certain markets through florida, texas, some degree california, the coastal carolinas, we are seeing strong demand reflected in some of the demographic shifts that we have been seeing more broadly with that said, though, the demand is pretty broad based across all the markets that we're in and it's really a great time for us to capitalize on that, bring in better tenants at better rents and execute our value-added strategy >> jim taylor, thank you very much hope you'll come back soon >> thank you for having me >> thank you very much coming up on the show, on this all hallows eve, we're taking a look at burnstein's spookiest names in technology right now. "the exchange" will be right ba ck ♪♪ we have great benefits from principal.

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welcome back it's been a scary story for october for technology the nasdaq heading for a more than 3% decline this month, the biggest drop of the three major indices. diedra bosa joins us now for a look at which names could be running scared on this all hallowed eve >> we got the idea from burnstein. they looked at the spookiest bear tech cases. meta, what if mark zuckerberg decide to spend tons of money or what if amazon cloud growth never bottoms and google cloud takes more share these are scenarios investors want to consider for big tech, we know that this

year has been all of the generative hype ai cycle, but what if that cycle never materializes that would be scary for investors. or say it was overregulated. we know that the biden administration is putting safeguards in place. the other one we want to look at is apple it is reporting this week. it has this outsized influence on markets, $ 2.6 trillion one scenario is coming up from the google anti-trust case we know that google pays billions of dollars to apple, to be the default search engine on safari that makes up 35% of growth that could be a nightmare scenario if that goes away and then the china risk from apple, from the banning of government officials using iphones to the crackdown on huawei to the crackdown on fox comm these are all scenarios to look

at >> diedra, if you take a look at one of the tech scenarios playing out more broadly, that is the scariness happening with certain semiconductor stocks out there. just how important for what companies on this semiconductor side should investors be looking at more broadly for the health of the overall business? >> yeah, the semi space is scary right now. that relates to artificial intelligence scenarios if companies fail to monetize, they're not buying as many of those chips. nvidia price would crash if the promise wasn't there but other companies like google and am amazon, working on more powerful chips that s than nvid. and as a broad one, the promise

of this economic and digital transformation, if that doesn't happen the way it turns out, that could have ramifications across the big tech companies that big up the market >> diedra bosa, happy trick or treating thank you very much. a quick news alert right now on tesla a california jury has decided that tesla's auto pilot system did not, did not cause a deadly 2019 crash the case was filed by two passengers who accused the ev maker of knowing the auto pilot was defective when they sold that car the crash killed the car's owner and seriously injured two passengers when it veered off a highway in east los angeles. tesla continues to test the system as well as it's more advanced full self-driving system coming up next, earnings exchange will break down some of the key names reporting and set to report coming up, including health care names humana on deck

tomorrow that's a lot of movement in that space today. sarepta down 25%, that move dragging catalent down 17% investors left wanting more on its obesity drug from amgen. and pfizer lower by 41% for the year so far. by the way, jim cramer just sat down with the ceo. watch the full interview today at 6:00 p.m. on "mad money." here's a preview >> the way the stock price is performing this year, we have to understand the reason they're coming down is due to two things one is a lot of uncertainty about covid. and then there was a lot of concerns if we take the worst case scenarios -- two weeks ago

we announced several volts we had done, but now there is high certainly for everyone welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about.

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welcome back to "the exchange." we're officially halfway through the earnings season, and we're looking at one oak, yum brands and human that today's earning exchange here with our trades cnbc contributor gina sanchez, chief market strategist. so first up, we have to go one oak. the nat gas provider is 16% off its may lows but gave up early october gains and completed acquisition of mid stream partners which says will provide synergies and key free cash flow especially as natural gas prices remain relatively lower for longer gina, you would buy into the print here or no >> no, we actually own this. so i'm going to say that this is

a buy for us this is you know, something that has meant -- this is a company that managed to navigate weak natural gas prices and still kbroe its ebitda its ebitda has been very strong. and you know, the acquisition of magellan is expected to contribute that. more importantly, they actually continued to grow that ebitda through exploration. as they've done that, magellan should help regenerate more free cash flow. all adds up to a very good outlook for the company. >> all right gina says buy on one oak next up yum brands those shares seeing a bit of relief after more than 12% slide since july analysts are writing that the fast food demand is showing signs of slowing, but noting that yum's scale and lower debt risk makes it well positioned amongst its competitors and quick-service restaurants. yum brands, taco bell, kfc and

others, buy or sell? >> so we like this one as well we own this and quite frankly, when the going gets tough and the tough eat cheap. yes, there's definitely weakening in consumer demand, however yum brands are rolling out new product. pizza roll has rolled out melts. they also launched value packages at taco bell which has been growing their same store sales. despite everything that's happened over the last couple of years, they managed to maintain an impressive operating margin, 32%. that says something about the management of the overall company and we think that that's going to be kind of a big and important, you know, good point for the company. >> all right so that's two buys now yum brands and one oak and finally, we're going to key on humana, clawing back the steep june losses. analysts noting that utilization

seems elevated but unclear if there's pent-up demand or if this is a new normal overall they say that consumer downturn and competition in medicare advantage pose the largest downside risk for the insurer. gina, you don't maybe share some of those same concerns especially when it comes to the so-called medicare part c? >> well, look, that's actually been a big component of their growth and so i can see how you might be concerned that this could slow down, but this is something that would affect all of the insurers at the same time. this is a company that also managed to buy back stock and grow its ebitda that way so we actually see this as a company that has done well despite an entire sector that is getting beat up. and quite frankly, it's reasonably cheap relative to where it could go. so, we still are holding on to this stock we think it still has some room to run. >> all right so positive on humana, yum and

one oak. gina, one last thing before we let you go, is this a market right now with the current price and trading action that makes you feel a little bit more uncomfortable or more settled in >> look, we think that there's a lot of unpriced risk in this market, so if you look at the risks across the board, you just aren't seeing them there is most economists have thrown in the towel on their reception bets and are just basically pricing in a slow down but that slow down is probably still coming so we think that you probably need to remain defensive and despite that sort of general assumption that we're going to remain defensive, we actually think that there's some downside risk to that >> all right a little bit more cautious says gina sanchez thank you very much, gina. we appreciate it we'll see you soon all right. that does it for "the exchange" today. coming up on "power lunch," can't get the fed out of our head gearing up for special coverage of tomorrow's big fed interest

rate decision. we'll have live coverage from washington, d.c. beginning at 1:00 p.m. eastern time right here on this show tomorrow now, after the break, court gnu and tyler will break down what to expect for that big fed interest rate meeting. they're getting ready for the show right there as you can see there with the tyler cam, 'lsetney right next to him wel e you tomorrow here on "the exchange. this is american infrastructure. megawatts of power, rails and open road, and essential services of every kind.

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♪ welcome to "power lunch," everybody. alongside courtney reagan, i'm tyler mathis coming up, 24 hours until the fed decision on interest rates markets expecting no change. but would that just be another pause or a sign that the fed is maybe done for this rate hiking cycle? plus, hitting the brakes on the demand for electric vehicles signs of a slow down leading one analyst to ask whether a global ev meltdown is coming. we'll dig into that, court. first a quick check on the markets here with a couple