this is a win for powell, sherwin-williams, so maybe we send him some cans of sherwin-williams next meetingit's pretty good for him >> whether he not be immune from what we expect to be a challenging environment. visibility beyond the first half of the year is limited they specifically point to existing homes >> right and it's true. that's where the leverage is of course, interest rate -- mortgage rates aren't higher at the highest, but this was reassuring from the point of view of sherwin-williams, but the idea that there is some cooling of a part of inflation that was very bad for the working person it's not eggs, but everybody has the right to be able to try to own a home, and we were losing that in this country maybe it's coming back >> let's get the opening bell. the cnbc realtime exchange, at the big board, it is latin finance in celebration of the latin america capital market summit at the nasdaq, freightos celebrating its public listing via spac does that mean, jim, that -- are you firmly back in the 50 camp here for next week >> no, i'm saying there will be chatter because when you

what are the one or two metrics that cause you to find a sherwin-williams, a hub group? what are you looking for on your screens or in your research that leads you to those >> i have a screen process i use to screen out companies. that's thefirst thing i do what i'm looking for, especially for the smaller names, i'm looking for free cash flow yield, companies with strong free cash flow, strong balance sheets that rank high in the database we're using they rank higher than others that way at least we can get a head start on finding companies that we think will do better over the next year >> if the important thing you just said to me is it's as much about eliminating the bad ones as it is about finding the good ones >> you have to screen out the bad ones >> you eliminate the 80%, 90%, whatever percent that don't make it and then drill down and concentrate on the 5%, 10%, 15% that do. great to hear from you >> thank you >>> we'll argue about this, i think he's right about everything, but not chat gdp he's casting doubt on it we'll have to talk about that. >>> ahead on "pow

sherwin-williams now through to another one on the consumer side of things. look at what macy's is saying. based on current macro economic indicators and our proprietary credit card data we believe the consumer will continue to be pressured in 2023 particularly in the first half of the year. this is "techcheck," a tech name asml saying there continues to be a lot of uncertainty in the market due to a number of global macro concerns around inflation, rising interest rates, recession and the geopolitical environment. the results are now beating lowered expectations but still beating, that's a good sign. but you have people trying to set the expectations a little bit lower especially in the first half of the year >> that's the area i want to deal with, there are three months in a quarter, and macy's talked about a slow december, after black friday, cyber monday, all of that. really tepid on the buying side, microsoft said something similar and the guide is where microsoft, at least at first really good hit. we get these gdp numbers, there's no guide in those, we

stuart: sherwin-williams is down sharply. >> forecast for your profits below estimates, this is what the ceo said after earnings, housing will be under significant pressure this year and continued high inflation via head wind on the potential side so the years not looking good for the people who spruce up your home. >> we spent a lot of time talking about layoffs but as i understand it, chipotle is going to be hiring people. is that accurate? >> 15,000 and soon because they are gearing up for burrito season, that's what they call it, there busiest time of the year, march to may so they want those hires ready, the busy season. stuart: will they split the stock? 1500? >> all the other guys that want 1000 eventually split. stuart: more approachable for retail investors. >> picking up on the e-cigarette maker jewel, i know they are in talks with big tobacco companies to do what? lauren: we don't know, the wall street journal is reporting they are talking to phillip morris. austria has a 35% stake. japan, tobacco. austria has a 35% stake in jewel. stuart: lauren: is jewel worth one more p

got dedicated home builders but the big sort of related stocks -- that's home depot, lowe's, sherwin williams, nothing short of a disaster. downtrend in effect since the high i think we're fading here. >> mike? >> this is a situation when you're thinking about the suppliers, bear in mind that lumber prices have gone back up. not to their all-time highs but elevated from a historical perspective. copper prices, too but maybe the biggest issue in addition to seeing higher rates in tof resistance in home -- ten months of new home inventory was a level that we had only seen once before, and that was during the housing bubble crash in 2009. >> wow brian? >> yeah, i mean, mike mentioned that lumber prices, lumber futures ticking up significantly in just the last couple days, last few weeks when you take a look at the home builders, i'm cautious myself. i think there's downside pressure some of the activity we're seeing suggests that maybe it's got not so much room to run. one thing, the tenure following down to 3.5% people that did buy six months to a year ago are now going to be able to refinance

home builders continuing higher but the big sort of related stocks, like home depot, lowes, sherwin williamsh earnings that were nothing sort of disaster. you can see that we're up against the down trend line in effect since the high. i think that you fade it here. >> mike. >> yeah, i mean, this is a situation when you are thinking about the supplier, bear in mind lumber prices have actually gone back up. not to their all-time highs that we saw in the pandemic, but elevated and copper prices too. but maybe the biggest issue in addition to seeing higher rates and some resistance in terms of home purchases is home inventories. new home inventories did fall a little bit about nine month supply down from ten but think about that, ten months of new home inventory was a level that we'd only seen once before and that was during the housing bubble crash in 2009 >> wow brian. >> yeah, i mean, mike mentioned lumber futures ticking up significantly in the last just couple days or weeks here. so when you look at some of the home builders, i'm a little cautious myself. i think that there is down side pre

sherwin-williams getting hit really hard. the guidance for this year is coming in light. this is purely housing play. it's about peyton and fixing up your home. mccormick makes spices. their operating profit was down 10%. it feels like a consumer read through story. ibm a similar story. the free cash flow fell short of estimates for the fourth quarter. how long can a market hold up when you have individual sectors that continue to roll over in some respects? then the news that dow is going to cut workers. guy: are we at the point where we are using ground ginger as a leading indicator? alix: why not? are you really going to go buy it if it's eight dollars for ground ginger? maybe not, you're going to go get chicken or eggs. guy: the question in europe, i guess it applies to the united states also. tesla is a case in point. i find the tesla story incredible today. some of the spots in this earnings season are quite positive. tesla stands out it is up 50% off its lows. that's quite a run. guy: does it have more juice to go? alix: we spoke to the head of european strategy at

sherwin-williams, the stock on place for its largest percentage decrease since 2020.t has fallen 9%. the paint manufacturer expect sales and profits to decline in 2,023 as the construction market could get very tough in the back half of the year. tractor supply company topping estimates with fourth-quarter earnings report, the seller of farm products reported sales growth rising 8.6% due to demand for every day needs bates merchandise. farm equal it appears to be selling like a hot cake if that is meaningful, i never knew hotcakes sold well, orange farmers in florida are struggling with a historically tiny crop. the sunshine state expects to produce 18 million boxes of oranges this year, less than half of last year's crop, 93% decline if you compare it to 1998's peak output. orange juice futures up 32%, the price of a gallon of oj at retail rising to some $6 a gallon. ashley webster live ash and orange grove in florida with all the details. ashley: this is a typical florida scene, beautiful blue skies, the sun shining on these gore interests oranges but pictures are d

there's a lot of boring reports coming up from the likes of sherwin williams, right, like who is paying attention to that. >> how much paint did they sell be. maria: tesla is number nine, reporting record revenue. the stock is up this morning, not following other tech companies in terms of issuing layoff announcements, it says it's actually hiring, tesla up 7%. your thoughts. >> very interesting. look, i think it's a very bold strategy for them, given this economic climate, to be loading up and hiring talent and increasing distribution while everyone with else is tightening the belt buckles and pulling back. long-term, that's typically a good move for businesses because you get to pick up market share during that time but short-term, investors should punish the stock. the problem is, that stock has never traded on fundamentals, ever. it's just got a cult-like following of investors that love it no matter what. so they could make no money. >> neither of us on the panel love it. maria: right, right. >> thank you, thank you, lou. [laughter] maria: there's also oil. i want to ask you about

the others i am looking at -- sherwin-williams, the paint company, gave some negative guidance, downw much this is tied to homebuilding and what is going on there given all the concerns around what will be happening with mortgage rates. chevron, talking about them earlier. those cheers up about 3%. ibm, to your point about intel, where is the bar? has it already been set? ibm hurdled over a lot of the expectations on both actual profits and guidance, lower 2.3% because they outperformed last year, so the bar was different, the valuation higher. that is the takeaway. >> are you done with earnings? >> this is important. this is about the humility and what we do with our guests. when you have on a legit legend, whether you agree with them or not, like lizzie and saunders -- she was on wall street week. you have these people there with a lot of experience. what they are seeing is strategic plans and models blowup like mr. roberts and comcast now with the losses they are publishing on paramount plus being brutal. $8.9 billion is the takedown there. jon busts my chops about the dow. it was