seema? >> i am now very hungry.nk you, kate rogers chinese tech stocks roaring back and the kweb outperforming the nasdaq 100 quarter to date, so why sentiment is taking a turn plus nearly every member of the energy index has hit a new 52-week high over the past three months we'll talk to a high-profile ceo about output, where prices are heading and thou how to get the little lower and travel stocks seema. seema! wake up here >> they're down! >> did you know carnival is once again the worst performer on the s&p 500 this year? tough year >> there you go. another 7%. >> yeah. >> we'll be right back >>> welcome back to "power lunch. i'm dominic chu. shares of meta platforms at this hour trading near its lows of the session on its first official day with the m-e-t-a, meta ticker. as we look back in the last year, it's fallen from $1.1 trillion at its highs last september to just over $500 billion these days it's still hovering around 12% from its april low and down 40% on a year to date basis. those meta shares again do

seema. >> that has had affect on the stock price.our big money movers and the vote by spirit airline share ho holders facing another delay spirit moving the vote to next week saying it will discuss further options with frontier and rival jetblue. both frontier and jetblue upping the offers ahead of the scheduled vote and the battle for the airline. let's talk about it with david m banmiller. you are an expert in the airline industry do you think the spirit merger moves ahead? >> something will move ahead this is like a kabuki dance. you have the music and somebody left the last chair. i don't know what is going on today. now frontier was very aggressive in going after spirit. as you know, bill frank, the chairman of frontier, used to own spirit he has his legs in both of the deals. jetblue is desperate to make this happen. they already made five bids. every day it seems to change they up their offer. what i would suggest -- one part of the offer is how much per share and what percentage of the company? frontier will have 51% and run

seema shah of principal global investors. lisa: one of the big question marks i have is leading up to this consensus, people say is not a leveraged cycle. consumers are not overleveraged, banks are not overleveraged, yet, there is money in the system. it is very appropriate. what is the reset -- recent pain of dealing with companies that finance at a 5% rate, versus 8% rate? that is a huge question mark. if this environment persists long enough, you will have real pain at the corporate level when you deal with the new, financing regime of a inflationary environment. i think that is something that is difficult to came out. jonathan: you think vacations on boats, cruise liners, that is what you are thinking of? lisa: i personally was not advertising that, but i'm thinking of carnival. they borrowed money at 6%. not that long after the pandemic because of the free money from the fed. people are speculating that there equity could go to zero. how much has the scene changed overnight, how anymore carnivals are there? tom: we are g

seema? >> tyler, steve mentioned a couple of them microsoft joining a string of tech giants that have blamed the str stronger there are and they expect it to weaken by nearly three percentage points and meta has a three percentage points impact on second-quarter results. technology companies have expanded overseas and it gives them access to more customers and just to put this into perspective, on average, the s&p 500 tech sector makes up 56% of revenue outside the u.s., but even beyond tech, the number of companies mentioning the negative effect of the there are has grown exponentially, netflix, procter & gamble, coke. one slice of the market that tends to be shielded from the stronger dollar, small caps which are outperforming large caps slightly this year and names with domestic exposure are performing vastly better than names with higher sales. take a look at that chart. chief investment officer at global wealth management, the dollar rally is short lived as they start to consider raisin

wa wall street is skeptical that it is. >> seema mody.ve interview with arnold donald after the earnings news comes out. also we'll talk to airbnb ceo on "closing bell" and get a great read of what's happening with travel demand and whether it's holding up amid all the concerns about the consumer and inflation. >>> i want to hit shares of fedex today because they're lower today. they're up about 14% since announcing that dividend increase new board members and other actions to increase shareholder value earlier this month on the back of activists. we're expecting to get its fourth quarter results after the bell today frank holland is back with another stock that he covers, fedex. what do we expect, frank. >> first and foremost this is the first earnings call for the new ceo so a lot of interest in his commentary and what he's going to spell out as his agenda going forward. the second thing to talk about here is pricing power. they're curious what kind of pricing power fedex still has. one of the areas to watch is express. that's where fed

seema mody, thank you very much. >>> now to the markets and your money. don't tell anybody we might actually have a positive week for the big stock averages with two sessions to go i jinxed it there. all ahead of the important consumer inflation number on friday and the fed next week that is pretty much a locked in thing. let's talk waboabout it with gia sanchez. she is a cnbc contributor and all around nice person gina, welcome back to the program. i blew it for the markets. we are green on a wednesday. is it inflation? is it the fed? is it earnings what will be the next major catalyst for these supermarkets? >> the fed is largely priced in. if you look at the s&p and where it has gone. the problem with the fed stimulus with the last two decades is it did not find its way to inflation until just recently it found its way into asset price inflation. if you look at average pes, it used to be at 16 around 14 to 15 times. 16 times is where we thought fair value was before the great financial crisis and before the pandemic we went all the way up to 20 now we'

seema?y, wall street analysts have been reducing their estimates for cruise lines over the past few weeks today morgan stanley outlining an extreme scenario in which the stock could fall to zero dollars a share. they point to weaker pricing trends and the upcoming winter cruise season relying on asia where restrictions still exist plus higher oil prices taking aim at margins he writes if the high yield market closes and if there is a demand shock that causes trip cancellations or weak bookings carnival plans to refinance $2 billion in the coming months if the stock continues to fall the prospect of raising more debt or issuing equity does rise at a time when it is getting more expensive the goal for carnival is to continue filling ships and explore the sale of underperforming brands like sea borne which the saudis are in discussions to buy and confidence in wall street that it is able to steer this company towards profitability. kell >> just a shocking and eye-opening thing to see wall stree

seema mody spoke to that very one earlier today. she join us today. seema?gh stakes blame game between the airlines and the faa and it is being watched very closely among the travel industry the cancellations and delays don't just pressure the air carriers it affects the hotels and the online booking platforms that have to find other solutions for their customers often having to work directly with the airlines. i asked booking holding's glen fogle who is to blame? >> it could be a government person with an air traffic controller, either way it's a shortage of people trying to get them back into space and get things up and running and it just isn't happening fast enough compared to the amount of demand that's going back. >> fogle shared that demand for travel is very strong, but that visibility into the fourth quarter is limited as many customers are using a shorter booking window and while past recessions has resulted in a drop in travel, this one is preceded by a global pandemic which he says could change the appetite for travel this winter. in a note to in

seema?ravel sites on average 140 times in the 45 days before booking a trip. that's according to expedia, and we've all experienced this, right? you keep monitoring prices on different sites before deciding to book a vacation, what the travel operators are doing now is unveiling new financial products that give customers more data that they can use to plan that trip expeed why's price predictor tool and machine learning capabilities to improve the selection of companies press ended. hopper, this is the highest travel company with the $5 million market valuation they'll pay a $30 fee, and if the room wasn't you expected, hopper will cover the difference it will freeze prices for two days for a $45 free and it comes as hotel occupancy is rising co-star data shows three-quarters of hotels in los angeles and san francisco are occupied and 82% full in new york we have a bunch of conferences this week where the price to book a hotel is over $300 compared to the $149 national average. that tells yo

thank you very much, seema mody.ler, thank you for joining us on "the earnings exchange. still ahead on the show, the players behind the plane, we're looking at some under the radar names that help us kind of help us get the planes in the air, help them fly including this one, this stock in the mystery chart is down 24% over the course of this year. it has to do with navigation systems. the name, what it makes, all of that coming up ahead after this break. wow! it's been 38 years since we were here. back then we could barely afford a hostel. i'm glad we invested for the long term with vanguard. and now, we're back here again... no jobs, no kids, just us. and our advisor is preparing us for what lies ahead. only at vanguard, you're more than just an investor you're an owner. giving you confidence throughout today's longer retirement. that's the value of ownership. lemons, lemons, lemons. the world is so full of lemons. when you become an expedia member, you can instantly start saving on your travels. so you can go and

seema, thank you very much our seema mody. >>> let's get to christina parts nevada louse >> here is our cnbc update at this hour, the january 6th hearing is underway, and former aide cassidy hutchinson is techg on everything she remembers about the capitol attack hutchinson recalls the moment she told meadows there was violence at the capitol. >> he almost had a lack of reaction i remember him saying, all right, and something to the effect of how much longer does the president have left in his speech >> the court is back in session as ghislaine maxwell awaits her sentencing prosecutors are pushing for 30 years. maxwell was convicted of helping her one-time boyfriend jeffrey epstein lure women and girls for over ten years and juul labs says the agency overlooked more than 6,000 pages of data it provided about the aerosols users inhale. >>> kelly, back over to you. >>> still ahead on "power lunch," cathie wood's safety ark, the fund manager says we're already in a recession >>> plus, clean energy messy transition, exxon's ceo blaming the energy shortage on the rush to convert to alternati

our seema mody, thank you. >>> speaking of travel, gas prices are up again.eraging $5.71 per gallon, topping the previous record high. this as supplies continue to tighten. the shipping industry and the trucking industry. joining me now is john kildee, good morning >> we are actually talking about this diesel prices at record high and past the record they set back in may. beg big jump there, are you worried about margins from these rises, transport companies and retailers but not actually revenues can you kind of explain? >> sure. >> obviously, you make something, you got to get it shipped to someone house or the store. and that's going to cost the revenue is going to be there and products are grboeing going bought handling this now and egregious input of fuel, so the diesel fuel monster is eating at the several dollars that are paid for whatever the good is and the inability to a degree to pass that on penny for penny here to the consumer some where along the supply chain, these high diesel prices are being absorbed by the manufacture of the good or the ship

seema: they need confirmation from lagarde. she's indicated this is on occasional meetings, rather than what the market is pricing in. so i think we need to see additional downward pressure. even if we were to see lagarde moving in that basis point hike, these to be following, i don't think it goes long as we have a more negative view for the european economy. i don't think they can move at these rate hikes later on. jonathan: the forecast could be dreadful, seema, looking at the current forecast for growth and 22, 3 point 7%, inflation 5.1. think about where inflation is right now, how much that forecast might have to change and with gdp 3.7%, that sounds optimistic given what that economy is facing. lisa: how do they parse out oil and gas for the rest of the components? how do they parse out how durable this inflationary move is? it is changing from people expecting a wage price spiral or something more pernicious and longer-lasting to perhaps a big question mark. is it the same in europe, do they see the transitory story wor

. >> seema, to that point, the fed can only affect so much in our economy. certainly they don't operate shipping lines, they don't operate any drilling lines. is too much expected of them? could there be some relief from other areas? >> it's a really good question. i think the fed has to do what they can. they can impact demand. they can push it etch further down to compensate for the energy prices that they have no control over. we should see some relief but some supply chain issues normalizing given that lockdowns are being lifted in china. we should see all prices, gas prices settle down instead of continue to increase. but they have a very difficult task ahead of them. so as we're hearing, they need to be aggressive. so far they have made an even bigger adjustment for themselves by being so slow. >> martha: let's talk about the market for a moment. it's in a tail spin. you throw out the charts, throw out fundamental analysis. it's a guessing game. earning estimates have come down. when it's in a free fall, what do you tell folks? they're serious about th

seema, thanks. >>> still ahead, mark mahaney on spotify's profit margin forecast that stock on the movead the opportunity earlier to ask ukraine's president, volodymyr zelenskyy, questions during the yale ceo summit earlier he had a clear message for corporate america. the dow down 222 >>> this morning ukrainian president volodymyr zelenskyy spoke at the yale ceo summit where he addressed global leaders in business and politics i had a chance to ask him questions including what action he would like to see from american ceos right now in the war against russia >> for us the most important thing is to see concrete steps, that you ask concrete people and your companies can take. these steps are related to making our lives easier in this war. i think this is our common war the companies that are represented in the russian market should leave if that is possible for them to leave russia completely. the most important thing is they do not only leave russia but do not pay taxes to the russian financial system, because this money for this russian war machine is killing ukrainians. >> given what

seema modi, will this quarter be a repeat of that one >> that's the big question, jon. commentary that we've been getting from hospitality companies is demand could not be stronger this summer for the cruise lines the demand story is still recovering and they've also had to use discounting and promotions to get people to book when carnival books tomorrow, the big question is how much are they willing to discount tickets and at what cost what is the impact on margins and this is ceo arnold donald's last earnings call he's stepping down in august and investors on the call will focus the balance sheet and upcoming debt maturities andplans to sell off some of the underperforming, and the risk of more debt raises could be in the cards with the onset of a recession and that is why the stock has been punished in recent weeks, but if arnold takes a slightly different tone, dom, on the call saying they've got the liquidity to get through the economic cycle, that would certainly be market moving and cruising, looking at past economic cycles, cruising tends to outperform because i

for more on this, let's bring in cnbc seema mody. concerns about say recession, and the markets, what do you got? >> yeah, mika and joe, good morning, after staging a very bad week last week the dow is now higher by 400 points in early trade. so a bit of a relief as investors assess the carnage that took place last week following the federal reserve's 75 basis point interest rate hike. and look to wednesday and thursday when fed chair jerome powell will testify in front of congress. he will likely face tough questions on the timing of the interest rate hike and the strategy to combat inflation. now today the key data point that will help us understand whether this rally will hold is existing home sales. that comes out at 10:00 a.m. eastern. and one of the big concerns is just how the housing industry will hold up as interest rates rise. >> thanks for that. and by the way, we're hearing there might be -- there is always something with elon musk and twitter, a change here or a change there. is there more news? >> so there is a new s.e.

perspective which, of course, is down this year the all-time high in '17 was around $18 a share >> seemaank you very much. >>> president biden meantime, along with the other nato leaders meeting in madrid to confront what they see as the increasing threat posed by russia kayla tausche is live in madrid. >> reporter: hi, mike. the alliance is distilling the threat into a summit declaration, nato calling the russian federation the most significant and direct threat to allied security, peace and stability in the euro-atlantic it's a marked change in a its approach it comes as ukraine's president this morning told nato leaders, their countries could be next. allies have or have planned to deliver. he also asked for security guarantees where allies so far have wavered insurgent stoltenberg speaking here earlier in madrid, saying nailo is prepared for a long-haul war, and it's up to ukraine to secure its independence. >> our focus now is to support ukraine. this war will, as most other wars, at some stage end at the negotiating table, but it is important that ukraine is able to get an agreemen

seema. >> $100 million in interest in bonds, dollars and euroes. that's what led russia to default. unlike greece, argentina, that have dealt with debt issues, russia's is largely symbol sanctions are preventing moscow ofrom paying the bond holders. kremlin saying it's been trying but can't. and agent, belaey blaming the egg. the question is what happens next they could take legal action exbrts we poke to say that is unlikely given the country is in the middle of a war with ukraine. and a think tank says this will hikelyfect russia's reputation and heighten cost cans in the long term. the impact will mount once russia's revenue from energy experts >> so the factor could be the price of oil >> absolutely. >>> coming up, bitcoin down 70% from the all-time highs. is the bottom in sight or not? that's next. andf our trader has three bois and one bail to consider ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla

seema. >> take a look at the manations hiking rates the euro zone, under esb japan, which continues to ease, creating dislocation in the kurns canny market the yen at a nearly two-decade low resulting in higher loss and calculating gains for portfolio managers invested in japan if you're invested, which does not hedge against the yen, you'd be down 21% over the past year, which does hedge against the yen. you can see it's up 4% in the same time period city economist says firms operating overseas, it hurts them being less competitive because their dollar-demom nominated cost we look at the companies with high exposure to japan names like philip morris and edward's life sciences and applied materials, apple with 8 to 10% of sales in japan the real effect will be in the bond market as they loose on the cap that is put on yields. and if that were to happen, that would sengd yields likely higher and that's amazing they have 10% exposure >> that's what i mean but the sales. that's a significant amount, totally. and we know the potential ramifications or we don't but we can guess how ugly it

here is seema shah yesterday >> we are not seeing a drop in the growth numbers this is the first leg and as we start to see the economic data, the growth data starts to turn that's the second leg of economic declines. i would not say 30% drop from the peak is impossible >> joining us now is piper sandler's craig johnson. craig, good to have you back on this morning i know from reading your notes, the technicals do not look great right now. how bad do they look in the near term >> brian, everybody is trying to put it in perspective is this a bottom or a bounce i think the answer is this is just a bounce. there is not enough technical evidence to say a true bottom has been set and when you go through, you look at the charts. look at the microsoft and apple and adobe and large cap names. they are all in definable down turns, brian as i look at the market, i look at the setup it looks like another 7% to 10% downside we have been hovering around 3,500 as we likely will find support and footing. right now, the fed is not our front and interest rates are not our friend at this point in time

. >>> i'm seema modi here is your cnbc news update at at this hour a man hunt continues today for attackers0 people at a catholic church in nigeria. explosives were used in the coordinated attack on worshippers inside and outside the building authorities have not yet identified the suspect and no organization has claimed responsibility for the attack. >>> 82 million covid vaccine doses have been discarded in the u.s. disdecember 2020, that according to nbc news. one-fifth of them came in the past three months and it comes as less than half of fully vaccinated americans have received a booster shot and as many poor countries struggle to get supply a variety of factors have contributed to the waste including unused doses from open vials and expired vaccines and spoilage due to power outages. >>> the world's largest trial for a four-day workweek began today in the uk. 3300 workers across 70 companies will work one fewer day per week for the next six months. they'll still get their full pay with expectations that their productivity won't change. researchers will attempt to learn about quality o

. >>> thank you, seema and tyler we've got red across the board as investors await tomorrow's crucial cpi inflation report nasdaq is down more than 1.4%. we're near session lows. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand isn't the market the s&p is off a little more than 1%. you've got every sector in the red. consumer staples are holding up the best communication services down 1.5% along with financials, technology and materials the nasdaq as i mentioned down 1 spo1.5% what's weighing particularly, some of the big cap tech players like nvidia lower. small caps down 1.25%. here's a look at some of the most actively traded names right here right now nio at the top of that list, down 7%. we'll talk about that later in the market zone with phil lebeau chinese internet names giving back some of their recent big gains. carnival cruises down another 8.3% it's been slammed all year long. coming up on today's show, tech fund manager kevin landis says it is time to put your shopping list together, even as th

we talked about this yesterday seema mody has been doing great reporting on intentions. the idea that you have to test to get into the united states, how much do you think that is hurting demand for travel into and out of the u.s.? >> i think it hurts demand to some degree because it's quite frustrating. we were talking the other day, the fact that you have to sit at home, do a video test, upload it and fill out different forms, that's out of step with the rest of the world it's easy to get into europe and that's why demand into europe is booming. london is back, paris is back. new york is doing quite well but it's domestic in orientation right now. >> what about pricing? we talked about how you guys have pricing power, the demand is there how much of it is driven by higher costs you're having to pay higher wages to attract people and prices for energy and everything else is up how much is just the fact that you are able to do so because demand is so strong? >> it is the true basic economics. the demand is so strong in so many markets that we're having the ability to pri

mistrial back in december and a march retrial resulted in a hung jury scott, back to you >> appreciate it seema>> wolf research, as we note that oil right now, crude is at 118, almost 119 a barrel the big focus on nat gas as well up 9% today north of 9 bucks many wolf wants you to play offense and defense and want you to play it the same way you've been playing it, i.e., doc, stick with commodities and classic defensive plays but let's talk commodities first. halliburton, schlumberger, diamondback calls and what do you think given your exposure in the space here >> well, there aren't a lot of alternatives that people have right now, scott obviously evs are a growing part of the way that people deal with not having to buy crude -- fossil fuels but that's a very small percentage it'll grow but it's small so the alternatives are just not there. secondarily, the sanctions that we and other nations have put on russia make it really tough for europe in particular so they're drawing a lot more energy to europe from other areas that normally we and the chinese and others would be buying from. and i thi

seema mody has the breakdown for you. >> china cutting its quarantine for overseas travelers is seen as a big move for the country they have been on a tear up about 17% on pace for its best month sin june of 2020 court to -- in addition to loosening reindustry, strict profits fell less than make. the central bank governor also signaling a focus on boosting credit growth. alibaba, up 25% this month, the first positive month in four, currently has 86% buy ratings on the street, with an average price, that's 27% implied return credit suisse writing that we still like alibaba on its valuation and improve profitability. wen event that investors will be watching is president xi's visit to hong kong, where the rumor is he could create a pathway for secondary listing like alibaba into the stock knecht. >>> while the worst is over narrative, it is gaining momentum -- joining us is ben heartburg. good among obviously the market is taking it as good news, getting some traction in recent weeks was it that long ago that -- macro concerns, so how does it look as continues opportunities to invest i