kristina partsinevelos here with me at cnbc hq with the fallout of u.s. esrestrictions on chip sales to china, and steve liesman with one of the most important jobs reports not a small city >> reporter: is not a small city at all 21 million residents have been ordered to stay at home for the next four days, masks and testing. it's unclear if the stay at home order will really end. intel says that its chengdu plant is in a closed loop system chengdu says other factories with make similar arrangements where workers live on site the chengdu is the latest of several series of covid curbs. the port city imposing a targeted lockdown. chengdu has urged its people not to leave the city and then the port city has had four testing rounds since the weekend this is a sensitive time where the beijing leadership will be meeting in just six weeks. they are likely going to be choosing president xi jinping to take an unprecedented third term and authorities want to make sure nothing, including major outbreaks, distract from that. >> thank you very much the restrictions th

kristina partsinevelos has qualcomm's angle on this >> meta and qualcomm, they're not strangers.y've been collaborating the last seven year, but the new long-term chip deal will include the snapdragon technology. the relationship is becoming even more intertwiced especially since meta hasn't successfully designed these chips on their own. i must reiterate this again. these chips will not be exclusive to meta hardware, which pays into qualcomm's pivot from end user equipment. they're trying to turn it into a broader provider of semiconductors, rather than just the go-to smart-phone chip maker. it's not it's first extended reality deal in july samsung partnered with qualcomm for the upcoming phone. microsoft and bytedance are working on platforms as zuckerberg said, they're still in the early stages of the metaverse, but vr headset demand is growing that means qualcomm can get a piece of that pie. >> that's key. so what does this partnership mean let's bring in dan ives. you say this is a step in the right direction for meta, but everything we just heard kind of says maybe the oppo

overhang, especially for companies like amd, nvidia as well as equipment makers and tools. >> kristina partsinevelos, thank you. it's a group that's already 41% off its highs, dan so how much more bad news is there to come? kristina laid out a few of the reasons why investors have been down lately on the chip stocks >> well, i mean, if the producers can pull up a chart of nvidia over the last three years, the question can be answered how far can it go down. how far did it go up in 2021 it massively overshot all expectations about orders and about all the enthusiasm around emerging technologies that they were selling their graphic chips into this is a great company, great management they have great products but just as it overshot late last year, it's probably going to do that to the downside also this stock has a $330 billion market cap, down about 65% from its all-time highs. so the question is how exposedse to go for a name like nvidiae bs this stock has traded at a massive discounting to the market and its peers because it is a massive ly commoditized product here we don't have any idea what the

they plan to build them out in stages depending on demand growth >> thank you kristina partsinevelos guy? >> 42 is a low in the summer of 2020 and sold off. we do a round trip i do tell you what concerns me a little bit you look at operating margins 25%. last year 37.1% why margins are contracting. not a good quarter the stock sold off from 99 or so valuation you can't trade this on valuation never really adds up but 42.5, 43 level makes sense. >> guy talked about the rally of last year and massive moves and when names like this lack visibility and we really just don't know how it shakes out with the spending on fabs this stock as it overshot it is likely to do so to the downside also to me i don't find it nearly as interesting. i find that far more interesting because the brand and the valuation are defensible and rather play 23 times for nike than 7 times for micron down 50%. >> i look at semiconductors and we talk about this cyclicality of the space semis made new relative lows to the s&p today. this was leadership we followed for a long time and today that's concerning i don't th

people start driving electric vehicles, the demand for lithium is only going to increase kristina partsineveloslooking at the lithium spike and what it means for investors, kristina >> reporter: lithium is inching closer and closer to its all-time high. that means the batteries are expensive. there's no substitute right now. prices in the chinese market, the most liquid market you see on your screen, have more than tripled in the past year alone that's helped drive up the stock price of producers, and then albermerle is up and analysts and experts expect supply won't be able to catch up in the next decade the prices could be sustained for even longer. citi analysts say there are environmental permits and in california there's even a new lithium extraction tax making it harder for newcomers to enter the market so supply is expected to stay stagnant while demand moves up automakers are pushing out like you mentioned, seema, even more ev models and government policies remain supportive these are all -- it bodes very well for demand for lithium. on cnbc pro we screened names expected to outperform

government imposed restrictions on chip sales to china kristina partsinevelos joins us.the green light to continue developing some of its chips in china what does that mean for the company at this point? >> it is a little bit of a positive you have to think that nvidia has two major chips that revolve around artificial intelligence one is currently in the development stages the other one has been on the market three years the one that's in development stages, nvidia did get the green light to continue developing that chip with chinese partners. the other one, though, the a-100, that one will need licensing requirements in order to export back to mainland china. however, if nvidia wants to sell this to france or italy, they would just do so through their hong kong hub. overall this is news that comes after gaming revenue as a little weaker and data center sales are anticipated to grow but it's growing at a slowing rate. definitely news that put pressure on the stock. we're seeing lows close to march 2020 it's not just nvidia, amd also pointed out they may not have as sign

but where do the workers come from kristina partsinevelos in ohio today, watching intel, huge story. >>> pretty good action continueses, dow is up 300 s&p up 50 points off of session highs, 8-1 upside "techcheck" is just getting started. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. >>> nasdaq gainers there, meantime let's get a gut check on amazon. morgan stanley calls the stock a top pick within advertising and it's also morgan stanley's top internet pick. the firm sees more than 30% upside from here, they also expect amazon's nearly $40 billion ad business to grow at a 22% rate in the next few years, stocks still down on the year, but it's up nearly 15% in the last three months. analysts behind that call is going to join us monday, jon, highest level, at least so far this month, also bernstein talks about higher ad margins, surcharges in the peak season, higher prime fe

kristina partsinevelos, good morning. >> this is the single private investment in ohio industry.be two manufacturing hubs, the marching band is here to celebrate, but it's stuck they have promised to spend billions while cutting back on billions for investors, $2.1 billion just in ohio, 100% tax abatement not even include the potential of 6 billion coming from the chips act, so the pressure is on for intel to build quickly. the goal is to get these fabs by 2025, but this morning pat gelsinger said it could be later, 2026, about 3 1/2 years or so that puts intel in a position where they have to spend billions, but also cut back i asked him that this morning. he said, though they are cutting knelt capital by $4 billion, all of the incentives they're getting will offset that a little listen in. >> that's allows you to keep our capital just down 1 mill on, but keep the net capital down 4 billion. however, you say you're still down a billion most of that is related to equipment delays, where we could spend the money that fast, because the supply chan chain has been challenge as well.

. >>> let's go and welcome back kristina partsinevelos for the cnbc news update kristina >> thank youd afternoon, everyone a judge has just denied senator lindsay graham's attempt to avoid testifying before a georgia grand jury looking at efforts to overturn joe biden's 2020 election win in the state, but the judge put restrictions on what graham can be asked about. it goes back to an appellate court. >>> donald trump's request to have an none decision maker review the documents seized by the fbi during its search of mar-a-lago the justice department opposes the motion saying it isn't necessary and would delay its investigation. a supporter of donald trump could be facing up to eight years in prison after pleading guilty today to spraying a chemical irtaritant of capitol hill police officer brian sicknick on january 6th. sicknick died of natural causes soon after, but they played a role in his death. >>> the government investigated properties including a park avenue apartment the doj is looking at allegations of bank fraud. tyler, back over to you. >> kristina, thank you very much her

. >>> let's get to kristina partsinevelos for a cnbc news update kristina >> tyler and good afternooneryone within the last hour a judge struck down michigan's long d'or ma dormant 1931 law because it violates the state's constitution the supreme court is deciding whether a proposed amendment guaranteeing abortion rights should be put on november's ballots. just an hour ago the official port the ras of barack and michelle obama were unveiled during a ceremony hosted by president biden. unveilings like this have been held during the next president's term, but it didn't happen while donald trump was in the white house. one day after asking liz truss, queen elizabeth has canceled a ceremonial meeting part of the transition to britain's new prime minister buckingham palace says the 96-year-old monarch has been told by doctors she should rest. back over to you >> kristina, thank you very much >> thanks. >> ahead on "power lunch," a losing average the nasdaq positive after seven negative sessions to see what might happen next. with fears over a rough fall for stocks, what are good low volat

why activists are reversing course on the push to spin off espn first, a news update with kristina partsinevelosg at this hour, lawyers for former president trump say a criminal investigation into classified documents found at mar-a-lago has, quote, spiraled out of control. they say a former president should have an unfetterred right to access presidential records this despite explicit rules governing the return of presidential documents and the handling of top secret files >>> the biden administration is urging railroads and their unions to reach a labor deal to avoid a shutdown of the u.s. rail system. eight of 12 labor unions have struck tentative deals but key quality of life issues including vacation and sick days remain unresolved negotiators face a friday deadline >>> the fraud trial has begun for nikola founder frederick milton their market cap topped $33 billion after it went public in 2020 the company's stock is now worth less $2 billion. quite a job. carl >> kristina, thank you >>> disney making a number of events at its fan event. activist dan loeb has had demands. >> disney's ceo se

kristina partsinevelos >> from ohio. >>> the chicago bears at soldier field. a year ago they signed a agreement to purchase land outside the city. it could be a new stadium. here's what the bears are proposing. the front office release these images this week. they show a domed stadium and what they call an entertainment district. last night tim officials met with the people who lived there to go over the proposal. the chairman said the new stadium would be a big win for the team and community. >> when it is completed, what do we get? a world-class home for the chicago bears after more than 100 years of searching. what do you get? a world-class facility. parks. housing. restaurants. hotel and other community improvement. >> if it happens, the bears sherman said it will be one of the largest development projects in illinois history. this is terry rest him. >> reporter: for the last 100 years, soldier field has been home to the chicago bears. it is the oldest stadium in the nfl at 98 years old. even with renovations 20 years ago, it remains the smallest. the bear

but first, let's get a news update with kristina partsinevelos. >> hi, carl.e's what's happening at this hour housing starts were up big in august, even as mortgage rates rose however, housing starts are still down slightly over the last year, and building permits sank about 10% during august new york city is lifting its covid vabz mandate for private workers. the change goes into effect on november 1st city employees will still be required to get shots. >> uk prime minister liz truss says a free trade deal with the united states won't even be negotiated for years to come her predecessors both said free trade with the united states would be one of brexit's key benefits >> chief operating officer of beyond meat doug ramsey has been arrested for allegedly biting a man's nose police say it happened this weekend after a university of arkansas football game after a car made contact with ramsey's vehicle, ramsey was charged with terroristic threatening and third degree battery. ramsey and beyond meat have not responded to cnbc's request for comment. carl >> thanks v

kristina partsinevelos is here -- she's at the nasdaq. >> reporter: yeah, i'm at the nasdaq underperforminging closer and closer to the yearly bottom not just one but you have several names, broadcom, amd, applied materials, western digital. the list goes on all of those companies you see on your screen are about 1.5% or less off their 52-week lows. those i named dragging down the stocks as well as the smh, on pace for the fifth negative week in six the broader market sell-off and higher interest rates, you have consumer demand for electronics, similar trends we're starting to see in the cloud now the higher rates that hamper growth and lastly an inventory correction that is under way forcing companies to reduce their orders and that's why we're seeing more and more analysts trimming their estimates. morgan stanley lowering to $95 today. they say it will be even worse than amd predicted goldman sachs for micron and western digital for memory chips in particular. they cut in august, just in august, and said today we clearly did not cut enough and then i wanted to add some positive notes web

. >> welcome back, i'm kristina partsinevelos.he chairman of russia's second biggest oil company died today, the latest in a sudden deaths. two sources are saying maganov died after falling from a hospital window in moscow. the company said he died following a serious illness. >>> soon russia's negotiations to end the fighting. >>> the u.s. labor department reports today that newclaims for unemployment insurance fell to their lowest levels since late june. that would be 232,000. the government will release its august jobs numbers tomorrow morning. >>> and twitter is testing a new feature many typo prone users have been waiting for, some paying customers will be able to edit a tweet within 30 minutes of posting it. it will be labeled, and readers will be able to see past versions to, in the company's words, protect the integrity of the conversation carl, back to you. >> kristina, thank you very much. >>> dow was down 300, now 100. watch disney, reportedly working on its own prime-like subscription service julia boorstin has more de

one of the biggest moves we've seen this year lets get over to kristina partsinevelos with some of the are today >> let's talk about the fed having to get more aggressive with raising rates, and that is bad news for tech stocks, especially semiconductors. the smhs and stocks are down over 2% in the last three months or so. every constituent of the smh down today roughly by 5%, and that's for the past month. but i can't say the same for the soxx, and that's because of one company carrying the pack. that's wolfspeed evercorps analysts said today that that chip maker is one of the greatest ways to invest in the electric vehicle transition. speaking of ev transition, wolfspeed said they'll be building a chip manufacturing hub in north carolina just two days ago and we stick with that same time frame, intel is the one really hurting, down over 20% and possibly on a roll to hit a fresh new 52-week low. i want to switch to micron, negative on the quarter. if it finishes q3 lower, it would be the longest quarterly losing streak, that's three quarters in a row since 2016 and demand, unfortunate

. >>> welcome back i'm kristina partsinevelos here's your cnbc news update at this hour.ticizes the charges as phony and politically driven the manhattan district attorney has been investigating his role in a charity that raised money to build the u.s./mexico border wall his comments after a "the washington post" report that says he plans to surrender to new york authorities tomorrow. >>> utilities in california are once again urging residents to conserve energy. this morning, though, in austin, texas, air travelers were left in the dark for more than two hours. power has been restored. roadways to the airport remain closed. >>> and vladimir putin and xi jinping plan to meeting next week in uzbekistan back over to you, leslie. >> kristina, thank you apple holding its annual launch event today. here is what the street is watching for today we will get more from rosenblatt's barton crockett, he has a hold rating on the stock barton, it categorizeses these announcement as anything truly wowy are teensy weensy is there northbound that apple can take to. >> look, i'm covering

. >>> thanks, robert kristina partsinevelos has a news update. >> hi, carl and everyone else. reading skills of 9-year-olds fell to the lowest level in decades. it was the first time we saw declines in math scores since the test was first given in the 1970s. results for other age groups are expected later on this year. >>> in northern spain, a fierce hailstorm killed an infant and injured more than 20 people. the hailstones were up to 4 inches across. many buildings and cars were damaged in the storm. >>> the broncos are paying big money to make sure russell wilson staying their quarterback. he gets a contract extension worth $165 million already guaranteed wilson is set to earn only, only $24 million this season under his existing contract. chump change carl, back to you. >> second highest paid qb by annual value incredible speaking of wilson, tomorrow morning, don't miss the big show russell wilson will join us live here on set in the 9:00 a.m. hour, fresh off signing that contract extension c'taingo lkith him. we'll be right back. ♪ ♪ wow, we're crunching tons of polygons h

. >>> welcome back i'm kristina partsinevelos here's your cnbc news update at this hour.ts of four regions in ukraine will vote to join russia. if successful, the referendums would pave the way for russia to annex about 15% of ukraine. >>> in new york debates have started at the united nations general assembly the head of the u.n. given a stark warning of the urgent challenges facing them >> rough seas, a winter of global discontent is on the horizon. the cost of living crisis is raging, inequalities are exploding and our planet is burning. we have a duty to act. and we are gridlocked in co-loss so will global dysfunction >>> and in the caribbean, fiona has strengthed to category 3 hurricane. it's nearing the turks and caicos with winds up to 115 miles per hour and is on track to become a cat 4 hurt before approaching bermuda on friday. morgan, welcome back and back to you. >> thank you, kristina hopefully that is not what happens. >>> about an hour into trading let's get a check on the markets. we have all the major averages trading lower. the ten-year hitting fresh high

that is not small change let's get to christina partsinevelos for a cnbc news update kristina >> hellopeople have been charged with allegedly stealing $250 million in covid aid federal prosecutors say the group claimed to be serving meals to thousands of low-income kids but instead they used the money to buy luxury cars, property and jewelry >> the scheme that began with a simple idea in march of 2020 grew to become the largest pandemic fraud in the united states as alleged in these indictments, over a short period of time these 47 defendants engaged in a brazen scheme of staggering proportions. >>> the white house is accusing russia of holding sham referendums in parts of ukraine in a bid to absorb those regions into russia. national security adviser jake sullivan says the u.s. will always recognize those areas as belonging to ukraine >>> and in las vegas the local official charged with murdering a journalist who wrote articles -- or one article critical of him has been arraigned. robert telles was assigned court-appointed attorneys. he was not asked to enter a plea back over to you >