i don't know where that ended up on the day and microsoft. i'm comfortable owning those i don't know if they are overvalued or undervalued by a lot, but over time i think they will create value. if i thought microsoft was expensive, then i would have to figure out when do i get out and when do i get in and then you have to pay the taxes in between. i can't see that i am going to hang on and see if they continue to grow value, and i think they will. they have done an extraordinary job. >> what say you or what would you do >> i think you have to look at the prevailing trend and figure out what is going to happen over the next couple months rather than one day i see the evolution of the growth scare is over from the narrative of the third quarter small caps are breaking out in particular looking down the list you see good momentum in those areas of the market that's not to say some of these quality growth names can't do well i think they can i think the market is looking towards some of the things i see. i saw containers were down 30% auto chip

okay like microsoft at 34 times which i own. i'm not sure what your point is. >> no, no, no. so you -- you're okay with the high valuation stock as long as it's growing earnings which is my premise stocks that are growing earnings fasterthan the market should trade at a higher valuation so you don't seem to have a problem with valuation with tmo, and i don't either, by the way the stock looks amazing, but i think you and i agree, actually, on this concept more than you think we do. >> i think that's probably right. let me concede that point that we do agree more than we concede. there's something in the way you and i interact which sometimes has a friction to it, josh, for which i feel bad, however, i will point out back to the top, i still own google at 26 times forward earnings and at the same time i own gm and here's another point of agreement you own it, too, at eight times forward earnings it has a lot to do with the growth rate, but i think where you and i disagree and i think this is important is i think you believe more than i do that the market gets priced right i st

so microsoft is investing heavily. they said before they plan on going after zoom with all they have and eating their lunch. so zoom, i would not -- i'm in the camp that rallies had to be sold versus buying the dips. i think this story has done a complete 180 and there's no growth and the valuation's probably still too steep, the stock down another 8% today. >> i guess the hope there would be there is going to be this model, this hybrid model for a while, if you go down south a lot of people in the office, but in the northeast a lot of people pushing back will there be a market longer term for zoom in it's not going to be what it is but we're not going to delete the app off our phones or computers, it's going to be a hybrid situation where video communications have a role. >> exactly 100% but i think the difference is, as you said, and in fairness to zoom, i think the last quarter was better than many expected. but with smaller customers being a top piece of the revenue pie that's going to lead to a volatile metric. yo

is that a positive sign for microsoft? >> microsoft has been a great performer. it's not exhibiting the same characteristics that apple is. i would rather be in microsoft than the s&p i would rather be in microsoft than broker dealers or other cyclical stocks showing real distribution if one had to choose between apple and microsoft, by my work, apple is the winner. >> carter, thank you would you make the same choice, karen? >> well, i have them both. i don't know i guess not then i have them both i keep them both i think they're both great it's not a terrific answer, but that's my book. >> i guess it's like asking which child you love more. >> exactly i do have a favorite >> dan, will ask you >> just kidding. >> i think the more interesting question -- carter said he would rather own microsoft than the s&p 500. i would rather own the s&p 500 for a lot of what we have been talking about is the poor breadth. we have a lot of stocks that have been marked down. there was a stat about how many stocks -- more than 50% of the s&p 500 are down more than 10% from their r

we have been a long-term holder of microsoft but our view is that microsoft is a top choice when companies are consolidating. i get they have a lot of smaller companies, but that has been declining in terms of growth rate it has been decelerating so they need to go up market so from the technicality, if you are trading zoom itself, shares are down 26% since second quarter print. i wouldn't be going against anybody long here. i would say stay neutral if you are trading zoom because there is a risk of a short squeeze, but i am most interested in learning about microsoft from the zoom call. >> guy, what are you setting your table with? >> dutton. dollar tree had a big move to the upside prior they report next week. i am watching to see if their earnings release will hold up and keep the stock at these levels i think it will be fascinating to see and then i will go downstream. i don't want to give away my final trade. >> good one. dan? >> best buy is interesting to me the stock is valued at about 35%. it feels like it's in a straight line expectations are pretty high what they have to say abou

were already partnered on microsoft azure, onedrive and microsoft office and it sounds like they're going to continue building these partnerships as they expand into the metaverse what else, john, i know you're a skeptic. >> anybody else forget that facebook workplace was a thing i think they got 7 million paid subs while microsoft teams has around 150 million is this capitulation when i see, i don't know, we'll see how quickly they can grow from 7 to more than 10 and maybe upwards into 20. >> john was on your page, john, when it came to the use of the word metaverse. >> a lot of marketing dollars behind metaverse a lot of marketing dollars >>> check out shares if palantir downgrading the company to sell after revenue growth slowed those shares down5% today. but it's a stock that is down 40% since february still up, though, 150% since its ipo a year ago more "techcheck" is straight ahead. stay with us you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candid

it's not going to come out of microsoft or nvidia. so it's the names people know. do you think what people want to rotate into value they're really juiced up getting into a dow, a d-o-w, or some of the names i'm long they don't know those names. people go back to what they know, what they're excited about. i think it's the end of the game for the high valued stocks that everyone just found out about. >> i don't want to pick on kathy wood over at arc but throw that one in because it has been a rough ride. they are symbolic of that retail trade and what was amazing about that report -- and we ever highlight reports to this extend but, pete, it is still heavy in this market. they're still in there when it comes to daily active traits, to call option, and that tells me they are suffering, weathering, you used word from this pullback, whatever we're seeing from the past month or so. >> yeah, i find it interesting because i wondered when the time would come we started to go after the high multiple stocks it's a combination of a lot of different things going through this

microsoft's up 51.5% year to date and microsoft is the outperformer of the group, josh, at 69.5% rather than try to read into the minds of these big, famous investors, just what about the idea, as you view the market, josh, these stocks have gone up a lot this year. they've been the place to be in large respect. is it time to re-think these things when you look at a horizon where you see rates moving higher? >> so i don't -- i guess i don't look at it as a rates play up or down to own the best companies in the world, and i understand why you would see some money out of amazon and if you're running a hedge fund comp theetitively it's a lot of pressure in a large position in a mega-cap stock going nowhere. most people don't feel that pressure because they're not playing the same game. they shouldn't be reacting to filings of 45 days ago as though there is some requirement that they play along. a really great example of why this isn't important we would all agree that one of carl icahn's greatest trades of his whole career is apple. he correctly identified it was a way undervalued, mispric

that big tech is still underowned as you suggest it's over owned and she said it's not that apple, microsoft and amazon's active portfolio weights are one to two points below the s&p 500 waiting indicating shares are still under owned. >> right >> so, i don't know what you do with that, but this seems to be a very interesting piece of research not to mention the fact that it's almost like you can't discuss apple and microsoft in the same way that you talk about other tech stocks because yes, there are valuations from a historical standpoint may be higher or the highest that they've ever been. they're still deemed by some to be cheap, if not value stocks and at the same time, defensive, and that's why money's going continue to go there >> well, you have to say free cash flow. >> microsoft is 6.4% of the s&p 500 and that's a big, big weighting. >> apple say 6% weighting and i still own a lot of apple, but i'm not going to be overweight i don't think that's a prudent thing to do as a portfolio manager. i don't want to become a faang portfolio. that's just not my style, so yes, i agree that they

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microsoft is growing about 15% over this time google is at 23. netflix is at 27 amazon is at 28. and facebook, given all the discussion about the metaverse, they've grown revenues compounded at 34%. you can buy both facebook and google at a lower multiple than apple. and don't forget, apple is a massive pandemic beneficiary and so, for them, their iphone revenues over the last five years, fiscal 15 to fiscal 20 were down 11% over five years before you had this pandemic benefit. ipad, mac sales were also down year over year before the pandemic hit so, you know, for me, it's -- we like facebook a lot. we like google a lot they're growing 2 to 3 times faster and buy them at a lower multiple with faster growth rates in the future. and we haven't even gotten into the risks around privacy and what that does to their app store or take rates. >> right, dan. how much weight do you put into the services piece of the apple story? still a relatively small portion of revenue, but if you think that during the pandemic, they were a beneficiary and were able to grow that installed user base, cou

but microsoft overtook apple in market cap which kind of happens every once in a while. one might argue arguably on the strength of its enterprise software and cloud business and, of course, we also had last week report such strong growth and that's a software enterprise collaboration and dev ops company. when you're moving bits and not atoms you don't have the same. >> it's a virtual chain. no physical chain to deal with john, you and i both watched this the market has been seeing this play out for a while now one of the reasons why you've seen a lot of the enterprise technology names really outperform some of the key parts of the hardware market not that investors have been kind of ignoring it. they have been the exact opposite they have been pouring money into many parts of those markets and they've been doing so especially in the mega cap-type names. the ones that provide the most safety cushion or perceived safety versus some of the smaller names out there. so, yes, enterprise software is key, but size is also a big part of that trade so far it has been those mega c

absolutely i would think that companies like apple, you know, obviously facebook, obviously microsoft, twitter by the way is probably one company that no one thinks about but they probably know this space better than anyone in terms of what the players want and how to engage that audience because twitter is very much engaged in the block chain ecosystem. when you talk about metaverse, really you're talking about nonfungible tokens you can take with you in game and across metaverses obviously nvidia is big one as well i think twitter is the most underlooked, i suppose, in this space as far as public companies go >> underlooked or underrated i was actually rahul going to mention snap they're developing all of these augmented reality tools and letting users use them right now. they're also capturing, you know, younger generation >> yeah. i mean, sure you know, i just don't know that snap has kind of a clear vision about how this space will work you know, how exactly what is the metaverse, although years ago i think they acquired a company that did glasses they created their snap glasses

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stock surging post earnings as activision and zillow plunge later on, microsoft enters the metaverse. netflix launches its games >> we will start, though, with the massive melt up in tech stocks the nasdaq looking to continue its longest winning streak since august of last year. still hovering around the fly line at the moment mike santolli with us looking at whether stocks are too hot this is the question of the moment, mike >> it is i would argue we're in a reheating phase, maybe not yet to an overheating phase but it has been quite a month a munt ago tomorrow that we did bottom and the nasdaq 100 up 10%. a lot are moving even faster this is the five-day chart remember the buzz etf. the social sentiment basket of stocks that are really being talked about a lot online. tesla is top of the list and affirm and a lot of the other ev names apple, as well essentially a lot of those stocks that basically have a lot of carry on social media are running, as are small cap stocks this is important to note. this is the time of year where there is a grab for the riskier parts of the market and i

you know, i don't see why you would choose zoom over microsoft. >> microsoft teams a lot of us use it that's a great point microsoft currently trading just down fractionally on the day gina and delano, thank you. >>> seema, thank you very much. >>> up next, boston market calls thanksgiving its super bowl. the company is here to talk food inflation and holiday demand >> announcer: and now, the latest from trading nation.cnbc.com and a word from our sponsor. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage. >>> welcome back, everybody. in case you hadn't noticed, food prices are going up just in time for thanksgiving wheat prices up 13% over the past month highest level in about nine years. that was hit earlier today there you see corn and oats also up sharply that explains why the av

microsoft from the tech side of things and then walmart. take us through why those three are your top picks >> so exxon oblviously related, we believe there's plenty ofup side in today's move by the administration to release reserves it's a temporary fix we're not producing enough oil and as a result, there's going to be price increases. it's a global commodity, but the opec plus group has no real impetus to increase their production as long as they're not losing share and right now, they're not. exxon mobil is incredibly cheap, a 5.8% dividend yield. microsoft is just a great story, executing on all cylinders we love the azure business we think they're taking share from amazon web services when we think about corporate america, if you're thinking about outsourcing to the cloud, microsoft is a trusted business partner. amazon is a potential competitor we can see their growth quarter by quarter they're gaining share. and ultimately walmart, which is executing incredibly well here mark talked about the supply chain dynamics clearly the big bo

we're talking about the microsofts, the facebooks of the world. they've done an amazing job in terms of the an execution standpoint they announced milan x, the mi-200, the gpu that goes against nvidia their next generation data center chip comes out next year. not only is it about the market share that has already been established but its investors will look to subscribe to that multiple i'm sure amd is not planning on stopping on 20%. their number one competitor is clearly wounded while amd is able to leverage and adapt ahead. everyone on this show has talked about bricks and mortar. you look at the entire supply chain, taiwan semiconductor is amd's largest producer these chaps aips are massive, wh we can get into. >> in terms of what the spend could be on metaverse chips, and how much of that is actual new spend or replace spend in other words, you know, no longer spending on whatever prior generation chips and shifting that spending forward >> for sure. so if you go back to facebook's announcement in terms of them increasing, they're up to $34

you may look at alphabet, amazon, microsofts and the like. we have used some structures consistently on the show recently because of implied volatility i am talking about call spread/risk reversal i think it's a good name to use in this as well. why not just go ahead and buy the upside call spread in this name, if we are going to buy an upside call spread, what has to happen is the stock has to go above the call strike by at least the amount of money you pay. before you see profits, you will see losses at any number below that if you sell a downside put, particularly if you can get it to pay for all or the premium of the call spread, essentially you will see profits if it rises or not see losses unless it falls below that put strike. i think i was looking at the 3.80, 4.50, if you just bought that call spread, about a 31% probability of profit out to february if instead you sold the downside put, you could put that trade on for just about even. that downside put is nearly 13% lower than the current stock price. so for one thing you will see p

actually exploded to the upside particularly in microsoft, scott. so i had to take them off. just trying to be disciplined. i was buying short-term options anyway they moved rapidly as microsoft fought against some of the moves other places so i just determined, you know what, i'm going to take both of these off then reassess this week. so i'm already starting to see some interesting paper in other unusual option activity in a monster big cap tech as well so i'll give that one for you when we do the unusual later on. >> meta platforms. still got to get used to that. all right. pete tesla. >> yeah. >> the momentum to beat rolls on another new high today up 45% in a month and you bought more calls just going to keep riding the momentum all the way up? >> i am. item i'm going to continue roll with with them. in october, it was 853 bucks and it's gone up every day the monster we've seen in there, buying more upside has been right, right, right. eventually, it will be wrong, but for now, they continue to roll up. last week, we had two monstrous hits in t

they call microsoft, the gold standard of the bunch. stocks up 50% year to date deutsche sees upside of further 20%. still ahead, dee. >> more dollars for that market cap. >>> meanwhile, regulation could be on the way for stable coins, popular type of crypto currency values peg two traditional currencies is like the dollar. president biden's working group on financial markets releasing report on the space calling on congress to, quote, act promptly to enact legislation so that stable koins and stable coin arrangements are subject to more oversights specifically the report recommends stablecoin i issuance to be limited to ensured banks giving regulators more control over the coins. one of the biggest stablecoin issuers circle releasing a report joining us now ceo and co-founder jeremy alair. walk us through a worst case scenario what are regulregulators and las worried on i realize circle has different transparency standards than tether which is twice the market cap of circle. what is the worst case scenario? >> well, i mean, there are a

microsoft is a powerful opponent >> microsoft is a great money on list, everybody loves it they basically can spend as much as they want you can never outspend them. it is like going up against the u.s. government when you are -- >> that's what i was going to say. i think zoom has an installed base that is consumer. they need to go up cisco wants to go up, too. but teams is building to -- teams reminds me a lot of when you used -- remember the browser with microsoft, the browser used to pop up and there was nothing you could do. >> yeah, yeah. >> then what happened after that >> there was this answer trust thing. >> david is right. they are so powerful they are like the government. when the government hears that are you trying to get something going against them. >> microsoft no, they are down the list a little bit. >> they have been avoiding any -- >> there are investigations going on, the d.o.j., and alphabet, and the ftc and meta they are trying to come back even though they were shot down. amazon. >> did you ever notice there is a company you would have to pay $200 million to run this

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microsoft was up a percent home depot was up. exxon was up jpmorgan was up. under the hood, there's devastation. some of the other high valuation names that have hung in there. smarter market cap were getting destroyed too. it felt like a lot of bad action the stuff they were crowding in and the stuff they were selling, there was no low low enough for. >> talk about crowding apple and microsoft are up 10% in the past month. it's not just today where apple hit a new record high. tim and bk, both on our 12:30 ampbs call said this is a huge day for the market i'll start with bk why do you think so? >> well, dan hit the nail op the head when he said you expected that growth wads going to be better they are going to slow the growth of the economy. that's why you see that today. you saw the bond market move that translated into the high pe names. the names that aren't going to do well in a slower growth environment and that's what we're seeing this is a bit of a change in the guard. when i look at the bond market and take the ten year, once you get the ten year abo

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. >>> welcome back let's get a check on the morning with philip mena in new york >> good morning. the jury will continue deliberations today in the homicide trial of kyle rittenhouse. critics pointing out the unusual move to have the defendant randomly

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. want more from your vitamins? at nature's bounty, we give you more. more immune support. with the only vitamin c that lasts 24 hours. more restful sleep. with the first-ever triple action sleep supplement. we put more of our brains into helping your heart. we give you more wellness solutions backed by rigorous science than we ever have before. nature's bounty gives you more, so you can live bountifully. >>> welcome back time for your big money movers three stock stories of the day here we go shares of next door holding surging on their first day of trading yesterday and higher in the premarket now after going public through a spac with coast venture acquisition. the deal valued next door at 3.4 billion, generated 376 million in gross proceeds. that

i think these big cap names that are still relatively fairly valued like microsoft, apple, facebook, google, to a certain extent even amazon, believe it or not, i think they'll continue to do the grind. i apologize, dan actually asked me to go to the application forum to buy the skype thing i wasn't able to get there there was too much traffic i apologize to our "fast money" audience >> the lines are real long for the applications these days. that's popular >>> steve grass so, what sectors? is there a seasonal trade sector wise to your end interview >> yeah. i mean one of the names that i hold is still sonos. i think a lot of their headwinds where you couldn't get products on the shelves you couldn't get products for them to actually get in the hands of consumers those are, have gone by the wayside. i think names like that, i think travel names will be up. names like costcowill be up. there will be a chase still for some portions of retail. other portions as we've seen that don't have pricing power will fall out of bed i don't think you are going to see. i think you will see vacation

amd, microsoft, very strange flight to safety, call it flight to apple apple is getting huge volume and up, the only big tech stock trading on the upside. also we've seen heavy volume in technology, all of the big etfs, the heaviest traded etfs are tech names the tech spyder, vanguard, the qqqs is tech stocks, the russell 2000 small cap names have trouble if interest rates move to the upside. we have a problem, tyler traders were worried omicron would hurt investor confidence, hurt the supply chain and hurt margins. now powell has come along and said wait a minute, we're going to get more hawkish, not less hawkish on the omicron concerns and that was something nobody was quite prepared for so everybody's trying to figure out what's the right playbook here and that's why you get heavy follow for example in technology stocks where nobody's quite sure how to play that right now tyler? >> thank you, bob pisani >>> next our guest says the fed will likely start hiking rates september and move six times before the end of 2023 let's bring in bruce kazmin, head of global economic research and ch

you bought microsoft and why take profits in the other? >> microsoft just got way too big. it has been our largest position for years. it just got too big and we had to trim it down. we are overweight large cap tech for just a host of reasons, you mentioned some of them, but the technology adoption in the post-covid world has only been accelerated and these are the leading companies that -- that are basically participating. collectively they've done about $130 billion in capex over the last 12 months so we should expect new innovations, new products, new markets coming out from that capex. if you look at their free cash flows, roughly 4% to 7%. that's against the market and the s&p, x, and these large cap techs is roughly 6.5%. so while they're trading at higher multiples of cash flow their growth rates are double the market the margins are double the market and every investor has to recognize that with the growth of indexing, roughly 25% of all monies going into the s&p are going into large-cap tech. so you have to have an overweight in these names. >> why did you -- why a

. >>> uber now getting smoked this morning as wells gets bullish on microsoft. both of those stories are next "techcheck" is just getting started. ♪ it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. look, if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better—xfinity mobile. now, they have unlimited for just $30 a month. $30. and they're number 1 in customer satisfaction. his number? delete it. i'm deleting it. so break free from the big three. xfinity internet customers take the savings challenge at xfinitymobile.com/mysavings. or visit an xfinity s

clearly microsoft has done really well, up selling their office suite with the e3, e5 bundling and we think teams continues to get better over time so, you know, i think the competition in this market is picking up for sure. >> tyler, different industry sort of. but i remember when qualcomm didn't get nxp and people thought, oh well, how are they going to get into cars this is a major problem. the stock is down. zoom didn't get 5-9, but they still have this focus on enterprise, i imagine they have a build out more salesforce, more process along that but they have a product that's been not only business tested but consumer tested at this point. so at what point have investors underestimated zoom again? >> yeah. i think certainly as you point out the stock is down more than 50% from its highs and you know, still up from pre-pandemic levels. so we could potentially be getting closer there i mean, my target is 250 post this most recent quarter i think the thing that, you know, you need for a stock to turn around is when you start to kind of get some better news flow -- and the challenge i

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it's below a hundred right now it's even below 99 >> i was looking at microsoft and apple, both down session lows 1.5 to 2% it might be interest rates, might be something else. still, "closing bell's" got a lot to talk about. >> thanks for watching "power lunch," everybody. "closing bell" starts right now. >>> a lot to talk about. welcome, everyone, to "closing bell." i'm sara eisen here at the new york stock exchange. red hot inflation translating into red screens on wall street. losses are accelerating throughout the session the nasdaq seeing the sharpest declines as we head into this final hour of trade. down 2%, tech is getting crushed today. >> it is indeed. good afternoon, i'm wilfred frost. let's have a look at what is driving the action rising 6.2% in october versus last year. the fastest pace since 1990. fuel oil prices were up more than 12% for the month speaking of fuel, energy, the worst performing sector today as oil and natural gas pull back, tech also falling hard and evs are a bright spot. rivian surging on its first day of trade after pricing above its initial price

. >> unsung heros of the bull market and the one that is most is microsoft. today wells fargo out saying listen, next to 2.5 trillion, cyber security, operation margins expanding. this is microsoft. >> i love we put up 20 years or 10 years, story. >> i think this is an argument potentially index fund because i think that this is they've put together an amazing team my travel trust owns it. i'm saying it's untouchable. you can't sell this thing. it's too good. >> i mean, market is -- has already historically leaned on mega cap tech, but especially last week, right >> last week was incredible because what happened is that all the money went to mega tech. the nasdaq was up almost every day. the dow was terrible but what's happened there's a group of stocks, by the way, met -- meta does well, apple has broken out to all-time highs >> apple almost equal to the s&p's performance of the year. lagging by a half. >> lagging terribly. next will be amazon. >> made that up in the last week and a half. >> the car >> waze it -- what is it >> microsoft keeps going up and th

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. the outlook came in. rdblox, 30%. affirm, 28%. thankfully, to be honest with you. they are not in the s&p 500 benchmark. otherwise, i would have to pay attention to them. a small piece of the market overall. if you want to play in those names, go for it but those are not trading on real fundamentals. but to move in these kinds of ways is really -- it's a little disturbing i'm paying attention to it, brian, but it is not something to invest in >> no. it's gambling. or it's guessing even worse gambling, you might be able to put the odds if you buy a stock and it falls 30% after hours, there is something to be said somebody said what's the bull case for stocks, that's my friend and that's kind of how he sounds the market has been cut by half even more

i expect that to continue to work microsoft is in a land of its own, showing us 45% margins. expect to see margin pressure. google has given 1500 basis points of margin expansion since second quarter, 32% last quarter. when you talk about pricing power, what we're really talking about in this environment is ability to maintain margins. the market will be focused where we are seeing market degradation. >> let's back up for a second, talk about where you think inflation is going because you have been in the camp saying janet yellen said 3% this summer, you were saying more like 6 where do you think we'll be middle of next year? >> right i don't enjoy being right on this forecast. i was certainly not in august when i called for 6% cpi this year, and 5% pc this year, see if we get that later in the month. 5% cpi all the drivers are still in place. we still see shutdowns and disruptions at the manufacturing level, in some part due to low vaccination rates at some of the manufacturing companies like vietnam and indonesia. still see capacity constraints in terms of shipping with the

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. >>> welcome back i'm rahel solomon. here's your cnbc news update at this hour. the justice department is charging two iranians with trying to create confusion by intimidating u.s. voters ahead of last year's presidential election the men are accused

the future cash flow is worth less, sforz, apple, microsoft, and nvidia all weaker. >> it might explain some of the selloffwe are seeing specifically in the nasdaq right now, bob >> now to the bond market overall, custom is grappling with the inflation number and a weak 30-ier bond auction rick santelli is tracking the action from the cme group. rick >> you talk about a tail wagging the dog, 5.5 basis point tail on a 30-year bond auction what does that mean, the auction went off at 1.94%. the when issued market was trading 1788 percent, 5.5 bassis points normally a tail at 1.5 is bad. 30 year bond auction was definitely not good. it reached a height of 196 big u-turn even at 191 it is up 11. why the u-turn you can see it in the two year note as well, right now at 48 basis points, up half a dozen. they were as high as 50. i will tell you why. stocks stocks buying treasury, that channel, is in a layup when stocks become a bit nervous or investors a bit nervous holding stocks that is why we see the u-turn. and remember, resteepening of the yield curve as you see, 30s minus twos it skyrocke

microsoft is on the back end to leverage the infrastructure. i think we'll see the same you have conversations with how many metaverses will there be? it's unlikely we'll have one universal metaverse that's intero intein interoerpable across the board so i think it's very real. i think this is long-term in na nature this is not something that's going to happen overnight, the montization is not going to happen overnight but the investments associated with it are absolutely real. >> i would like to tilt away from the metaverse we know what's going on there. the upside momentum is there i had mentioned some of the big payments provider s and payments networks as being extreme underperformers over 2021. there was a time when payments in fin tech were front of mind for many tech investors, i think paypal, square, yet they've both under performed immensely. is there a value trade in your mind >> fin tech has been the most difficult sub sector year-to-date the market is on all-time highs and the fin tech names you highlighted they're underperforming w

> i might go against the grain here if you look at the united communications as a service and where microsoft seems to be the one that's destroying everybody and teams are rolling through, i think the enterprise market is so strong. i think zoom, too much i think the valuation is not where you're getting too excited, this isn't just a stay at home story. i think it is a platform that continues to grow and i believe there's plenty of enterprise they can compete with microsoft. on peloton, there are problems with that result that were not just suddenly trying to carve out a new demographic, price cuts, this wasn't new to that result, but when they talk about recalibrating fiscal output, i don't know what that means in the context of an earnings report doesn't sound good to me i am happy to be back at the gym. if it is not obvious, i am happy to be back at the gym. >> it is obvious. >> peloton down about 35% today. kind of bad timing on the heels of this. these moves are largely punctuating the trend we've seen it is not the day the pandemic is over, it has been going on as a grind for some time

nasdaq a record high as well, microsoft once again is on a tear yields come down and people rush into tech. >> yes, they go to adobe, which isn't talked enough about. i find it over and over and over again, even before microsoft, of course they have no supply chain issues, no issues. i don't know why the stock doesn't get respect that i expect it to get i don't understand that. >> well, we have -- and we've all pointed to obviously incredible performance >>> guys, something we haven't talked a bit about is spacs. it kind of points to things that are still going on, what was still one of the biggest trends earlier in the year, rather than later -- >> uh-oh. >> you can't resist that don't know if you noticed, there were four termations this deals, double what we saw in october. automatic terminating their deals, talking about market conditions, inflation, and we spent a lot of time talking about the performance overall of spacs, those that have yet to announce deals and those that have closed, including pay safe last week, which i noticed had a three in front of it ever so briefly. ther

we're buying some of the growth in megacap again we saw google and microsoft earlier last week and their earnings were strong on advertising in cloud and as you mentioned apple and amazon, which the market didn't responds r respond to positively with their earnings and different headwinds there. there's opportunities in those stocks when you look at apple and amazon i think ecommerce makes a comeback as we look toward the holiday season and you look at amazon's cloud business still growing really, really strong. i'm buying more of the growth and megacap still. but stronger, overweight on the mega cap brian. >> we have the graphic up next to you and it says meta platforms. hi to do a double take and remind myself it's facebook. i'm going to call google google, i'll never call them alphabet. meta platforms is facebook you say it's like survey says and the thing flipped. anything you don't like, in a police sta place you're avoiding putting money? >> a couple of areas investors want to make sure they're staying in their allocation there. i do still like facebook and that's are an area we're

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ >>> good morning, if you are just waking up or just rejoining us here on "worldwide exchange." that graphic is not incorrect. we are seeing a selloff across the board across all asset classes with the exception of treasury bonds across the world as well. we are seeing dow futures down 700 points right now nasdaq futures are down about 1.7% as well all on concerns of a new super mutation of a covid variant that has been identified insof south africa, a passenger in israel getting off a flight has been identified with it as well the

that's not a broad rally all the power is in the tech stocks apple, microsoft, salesforce, it's cisco, it's intel but all of the consumer names, merck, disney, verizon, for example, r all a lot weaker. this is not a unilateral advance that we are seeing as for the rest of the market semiconductors are the strength in the technology sector nvidia is complete round trip. 246 thursday, 214 friday, back to 330 a round trip for a lot of the semiconductors energy is up, there are concerns about travel-related movements as we deal request new variant all of these are nice ounces but it is not close to where they were at the close on thursday. no exactly a round trip for energy finally, melissa mentioned some travel and entertainment stocks. the cruise lines and the airlines are notably underperforming other parts of travel and entertainment the hotels are doing a lot better and the companies that provide live entertainment are outperforming. what this tells you is people are not sure about going on long trips but are still interested in going to hotels even if it is just on a local level. ba

if i'm looking at the others, microsoft, apple, google, amazon, tesla, all of those have something that masses of consumers are directly engaging with as an end product and, yeah, nvidia has graphic cards that people buy off the shelf, but usually that is to stick into something else. that is different. maybe needs to continue to go even bigger in his aspirations to create profducts for consumers. >> i think he's got things i don't think that we can understand them yet. they are involved with physics, fluids, equations, speed, involved with trying to solve -- he is trying to solve the world's problems there are very few people who do that he takes a 20 year view. and by the way, i misspoke when i said that he has had no setbacks there was a quarter where he had these terrific cards and they were hijacked by people who were mining and he couldn't tell whether people were mining with them or gaming with them and it led to a shortfall. and he said that would never happen again so now the only people who use their cards for bitcoin mining are people who recognize that the cards aren't as fa

netflix, microsoft, home depot, lowe's, among those companies making record highs in trading today. check them out we'll be right back. >>> welcome back vir biotechnology and glaxo smith klein announcing today they will sell $1 billion worth of their covid-19 antibody drug to the u.s. government vir stock is down nearly 40% in two months as merck and pfizer get ready to come out with their own anti-viral drugs to fight covid-19 so joining us now is george, the ceo of vir biotechnology along with our own meg tirrell meg, over to you. >> dom, thank. george, it is nice to see you. thank you for joining us today on news this billion dollars worth of contracts with the u.s. government dom mentioned the stock move over the last two months i think what a lot of investors are wondering about the antibody drugs now is as the anti-viral pills are working their way through the fda what role do your drugs play, the antibody drugs, when we have easier to take pills for covid >> that's a great question i think the important thing to remember is we had good data last week on an intramusk collar ap

microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. >>> well, my vision is to use disney plus as the platform for the metaverse. i think it really blends our physical beings with our digital beings and creates a three-dimensional canvas otherwise it's a park experience or a movie experience or it's a book experience. i think those all come together without boundaries, without borders, without constraints, and our creatives are just biting at the bit to get into the disney metaverse >> seems everybody's talking about the metaverse these days including disney's ceo bob chapek i want to find out to my committee members and find out if they're even thinking the metaverse. are you playing this yet >> of course i think first of all defining the metaverse is like defining transitory it's a different definit