good afternoon, everybody, and welcome back to "power lunch" along with morgan brennan i'm tyler matheson, glad you can join us for this hour together the record rally rolling on, dow, s&p, nasdaq, new highs one year after the covid peak, those indexes have pulled back just a bit. bitcoin, wow, you can't even believe it more than 50,000 for the first time, it has pulled back a little bit but the

cryptocurrency is front and center for regulators. how big a risk is it, that fact to the crypto rally. later natural gas, gasoline soaring as wild weather sweeps across the u.s. hitting texas especially hard. we will have the latest details on that as "power lunch" starts right now. good afternoon, as tyler mentioned all the major averages hitting all time highs today, fading those gains in afternoon trading as we've seen treasury yields jump higher one year ago, though, markets were also at record highs and then covid happened. looking at how far we've traveled since that pre covid peak. >> the setup rhymes versus where we were february 19th of last year, specifically the anniversary is friday was that peak in the s&p 500 before the crash. so what you saw this is a year and a half long chart from the six-month prior market was up

16%, same thing right here, 16% since mid-august of this year. so it shows you the cadence of gains is similar, you have pretty orderly uptrends separated by this massive v bottom that we had in march. we also have high yield spreads very similar treasury yields as well, not quite a round trip yet, it was 1.6% let's say a year ago, 1.5 was the general trend. here you have 1.3. you are kind of getting back up to what would have been considered more normal levels, volatility index similar levels as well coming from different direction. the difference is where we are perhaps in the cycle take a look, too, at financial stocks, really responding to this higher yield, steep thing in the yield curve if you want back 20 years you would see this is a major potential new high coming here marginal high but you have to go back to 2006 and '7 to see further highs. it seems like it's manifesting through the system, again, as i said, similar market conditions but arguably the backdrop is just totally changed because of

where we are with employment, fed policy and even the profit cycle, guys. >> all right, michael, thank you very much. so with the market at record highs should you keep buying stocks and if so where are the best opportunities for your money right now? ryan jacobson is multi-asset strategist at wells fargo asset management and rachel aiken is vice president and portfolio manager at rockland trust. welcome to both of you rachel, let me begin by asking you one of the things you say is if you look at the broad inddexe you can't help but notice that they feel stretched. they are by traditional measures if you look at the ten biggest stocks, if you look at the general s&p, but below those market big barometers there are pockets of opportunity explain that argument and explain where the pocketsare >> sure. tyler, thank you for having me on today yes, at the index level you are looking at valuations that look

topee, again, i think one of the things we look at is to try to look under the surface at the sector level and company-specific level there you still see pe multiples a little bit higher than historical averages, but not nearly as high as the distortion i think you see from the top ten market cap names in the s&p 500. so, again, there you're looking at valuations that are maybe 120% of their historical averages instead of 140 or 160 perhaps when you factor in those high market cap ten top stocks in the s&p 500. >> you like a couple of energy names and we will come back to them in just a moment, but, brian, let me turn to you and get your thoughts over the market's relative level compared to history and also where the ten-year bond is going and what it could be telling us about possible inflation down the road it's up -- the yield is up decidedly today. >> yeah, it has been quite a

move higher in the yield and if you look at what's been happening with the ten-year treasury over the last few weeks and even the last few months, most of the move higher has actually been driven by an increase in inflation expectation as measured by the break-even rate of inflation what hasn't really moved that much higher has been the real interest rates after you adjust for the inflation expectations and we think that that's actually what could help move yields slightly higher from here is that improvement or an increase in the real yields. that's important because we think that not only will it obviously pose a little bit of a challenge for investors and treasury securities, but it is typically for rated with better expectations of growth, which could bode well for the more credit-sensitive sectors of the fixed income market like higher quality high yield, lower quality investment grade, but then also for the broader equity markets because if yields are moving higher because of the

growth outlook is improving and not necessarily just because inflation is picking up, that should bode well for those more cyclical parts of the market that we like, like small cap value and emerging markets. >> i get that argument, that's the reflation trade we've been talking about, but, rachel, one of the key things here and you could make this argument just looking at the market action today and the fact that the dow is trading up 150 points, then went negative, now it's up a little bit again right now, it's the velocity by which we've seen those yields increase. we had another pretty dramatic day again today. how worrisome is that and at what point does it stop being about a reflation trade and you actually potentially see a dee coupling >> so i agree it's much more about the pace of rate moving than perhaps where the ultimate rate number is i don't think when we're sitting at close to 1.3, 1.4, even 1.5 that that's going to challenge

traditional arguments as far as relative value, the attractiveness of equities over fixed number, but it may start to raise the question, a, you know, will the fed continue to remain on the sidelines, will it have to perhaps look atits policies and then also we have to look at what that means within the internals in the market as far as the attractiveness of certain sectors, mainly long duration stocks like tech, dividend plays and really with rates rising at these levels we're starting to see a bit of a testing of that relative value >> brian, let's talk bitcoin for just a bit, and i'm reminded of those old certs commercials is it a breath mint or candy? i can't decide whether it's a currency, collectible, a store of value, a cash proxy what the hell is it and where, if anywhere, does it fit in a normal person's portfolio? i'm not suggesting that people

have bitcoin are abnormal in any way. >> no, i certainly hope no i know plenty of people who do have some bitcoin and they seems perhaps a bit more normal mimi and are obviously smarter than me given the incredible rise that we've seen in the cryptocurrency i think that it's neither a bit more a coin and so as far as thinking about where it fits in a portfolio, it's more about the risk/return and then also correlations where one of the things that when we've done some of the analysis and granted it's a very limited history that we have to go based on is it does tend to be highly correlated with, say, momentum in the broader equity markets it doesn't serve as a very good hedge against inflation necessarily b you that remains to be seen because we have had such mild inflation since bitcoin has come out, maybe it will improve its merits if we get significantly higher inflation. if it is going to be part of a

portfolio, you know, consider its role, not necessarily don't just assume that it's like real estate in the pre housing bubble years where everybody thought, hey, just buy real estate, you know, the old maxim was they're not making any more of it, same thing with regard to bitcoin, it's limited as to the amount that will be outstanding but as the global financial crisis showed us housing prices do go down and bitcoin obviously does go down but a lot of the volatility has been to the upside but a lot of our clients that are interested in it but it doesn't seem like they're really all that comfortable with really understanding what it is it's not clear that it's currency, commodity, maybe more like a collectible with some sort of block chain payment system attached to it. >> right all right. brian, thank you very much we have to leave it there, brian and rachel morgan >> very feisty today, tyler. i'm liking it on this monday

afternoon. energy price right side rising today, especially natural gas as a huge winter storm pummels texas wreaking havoc on the state's energy infrastructure let's bring in brian sullivan who has been watching the storm and impact of it on energy so closely today. brian? >> yeah, morgan, first thing, you know, giving a shout out to you all my friends and all the people in texas that have been suffering. 4.2 million people -- or households without power right now. now, thankfully it has warmed up a bit, guys, i think it's in the mid 20s in houston still to tyler's point damn cold, but not as cold as it was. it was the coldest in 72 years earlier in north texas not ever, but pretty doggone close. 4.2 million still without power, you've got the sort of rolling blackouts but you've also got blackout blackouts which is the inability to produce power rather than the choice to slow power down here. so you can have more power there. now, the government is starting to get involved. they're wondering what exactly happened here.

there is a lot of things that are going on well, the house speaker for the state assembly of texas now calling for hearings to try to figure out exactly what's going on and luckily as we noted the temperature is going to warm up over the next couple of days not hot, it's going to be in the 30s but it's not going to be in the 5s and the 2s. that's the good news still going to be very, very cold all right. what happened today? well, you showed the natural gas price, morgan, on the way in, 3 bucks or whatever on the my next there was a trade done today, maybe more than one, but i know of one for sure, in oklahoma, spot natural gas market, $999 per million btu. not 3 like we see, same unit, 999. now, this chart a lot went on here, it's not a map of, i don't know, wales, whatever it looks like the numbers are too small. point is this, the power for wholesale electricity at cost, went up -- there was a trade done today, guys, at 8750 per

megawatt hour. a normal price would be about $40 per megawatt hour so it was $8,750 per megawatt hour somebody has to pay that, whether it's the buyer of the energy or the consumer who ultimately gets stuck with a bill if you've got one of these you pay what we pay type plans which got very, very popular with a number of startups. so still trying to figure it out, but power starting to come back a little bit more, guys, th thankfully but not anywhere near where it needs to be. >> the numbers are bananas. tyler, it's tuesday. i said it's monday, but it's tuesday. >> feels like monday, though, doesn't it >> it does. >> the long weekend -- >> every day feels like monday. >> yeah, especially if you are freezing like they are down in texas. the shortest month seems like the longest month, right, guys

really does sometimes. >> yeah. >> all right coming up, bitcoin breaking through $50,000 as micro strategy doubles down on t but could more regulation put an end to this crypto rally we have details on that. plus, walmart the first big retailer, i mean really big retailer set to report earnings this week,e ll sak wwipe to the former u.s. ceo on why he thinks there could be a retail renaissance. more "power lunch" after this. it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care, to be hope-sided. we're never divided, when we live to give, we always live united. ♪ irresistibly delicious. ♪

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bitcoin trading right now just below 49,000, it passed 50 grand for the first time today and it is up 6,000% from its lowest levels of the past year and that has caught the attention of the fed let's bring in steve liesman for that side of this very complicated story. steve? >> hey, yeah tyler, fed officials are watching the surge in bitcoin closely but at the moment they don't see it as a rival to the dollar, they see the dollar remaining as the unrivaled currency of the nation and the reserve currency of the world. >> you don't want to go to a non-uniform currency where you're walking into starbucks and maybe you will pay with ripple, maybe you will pay with bitcoin, maybe you will pay with a dollar that isn't how we do this. we have a uniform currency that

came in they civil war time, a dollar is a dollar. >> another fed official see bitcoin and cryptocurrencies as a competition to gold, an internal asset with no intrinsic value that is a speculative play on a store of value. an asset but the fed is watching the technology carefully and study whether to issue bank currency and conduct experiments at mit fed chair jay powell sounded a note of caution on private entities creating their own currencies >> private sector actors can create the equivalent of digital money, we know that in the past when private sector money and public sometimes just thinks of it as money and at some point they find out that it's not money and that's a really bad thing we need to avoid >> fed is in no hurry to step in with either regulation or its own digital currency

think of it as a five-year effort and happy to watch and benefit from private sector developments one thing is clear, neither the fed nor the u.s. government will let any cryptocurrency replace the dollar as the nation's currency. >> i asked in the last segment, steve, or i'm perplexed whether bitcoin and similar currencies, commodities, collectibles, cash, money. how do you see it and how does the fed see it do they see it as money? >> you know, tyler, i hear you sort of struggling for the three points we all learn in macroeconomics 101, the store of value, a means of exchange and a unit of account. those are the three things money is supposed to be. i don't know -- there are days that bitcoin is all three of those, there are days that it's none of those. imagine, for example, you got paid in bitcoin or you were paying in bitcoin with the volatility of the currency i think the lack of stability is

something that argues against its sort of currency as a hedge, though, against what's happening to the dollar, as a hedge against energy or inflation, maybe it serves that purpose. there's a very long way to go to establish itself as a currency that you want to write a contract in or save your -- put all your savings in. right now there is a one-way trade so everything looks good when it goes down you can ask people how much they want to be paid in bitcoin, tyler >> all right thanks very much, steve. steve liesman. morgan >> all right so for more on the regulatory landscape facing cryptocurrencies let's bring in petal walker petal, i think we are going to start with that same question to you, commodity, currency, a different type of asset class here and i ask that because from a regulatory standpoint that is really going to dictate potentially how those rules are drafted. >> right

so as you note the real question that comes in these times is whether or not they are a commodity or security. security we think of as being a black box, the person who is selling it knows a lot more about it than the person who is buying it. so we have regulations that require disclosure so that the person that is buying truly understands what they're getting. if it's a commodity in this case a digital currency then everyone knows what it is, it is an actual meaning of exchange technically bitcoin has been fine as a commodity, it is a currency used on an established network and it is used for the purpose of exchanging -- exchanging funds, exchanging value. so that means that technically it is a commodity and so it's not treated in the same way that a security is. >> interesting i mean, as bitcoin and some of these other cryptocurrencies continue to gain traction, you see more institutional money

coming to this commodity as well, if you will. is it just inevitable to think we will see legislation drafted. >> we've already seen several bills proposed attempting to establish a new regulatory framework. the issue with regulations that our securities regulations, securities and commodities are really defined in response to crises so they're very good at dealing with risks that were raised -- raised in the crisis that they are now regulating towards the issue with something like bitcoin that's new is that then you have to put this very new innovation on old framework. what i mentioned prior is that it's important that the regulation not be fear based by fear based meaning that it's not just in response to something that's new and just pushing back on the new and

trying to force it into old boxes, but really regulation that's really based on risk. figuring out exactly what are we concerned about? are there entities within the market that are significant, that could really lead to knock-on effects in the market and as such then, you know, what is that risk who are those entities and then what is the widest, most reasonable way to defend against that risk without killing innovation because we don't want to have americans who have great and brilliant new ideas going offshore or being stymied because regulation is broad brush and not focused on the risk it's trying to prevent. so i think that there have been many discussions about regulation, it's very likely given the possible heads of agencies who have a deep tech background that there could be regulation my hope is that that regulation,

however, is based on the data, on the risk. it's targeted and not just based out of fear. >> i wonder what you think about another trend we're seeing take route. micro strategy is in focus again today, those shares are under pressure after the firm revealed plans to sell convertible debt to buy more bitcoin, it now holds billions worth of bitcoin instead of cash for reserves you saw that news last week with tesla. corporations replacing dollars with bitcoin or other types of cryptos, is there a trend we are going to see more of or is this something that could potentially be an area where regulators do take a much closer look? >> i think whenever you have significant players in the market who have -- who could affect the overall economy potential, right that's how regulation is largely designed, a lot of it is based on making sure that those who are significant individuals that there's enough oversight into

what they're doing in areas that could lead to risk because their risk could lead to risk for other people so i do think that being that you have these significant players who are demonstrating a commitment to bitcoin it's likely, i can't say for sure, it's likely that you will see more of that as it becomes more accepted so i do think that that -- that that can be a trend. as you can see people -- or entities of significance having more holdings nationally the regulators that are focused on those entities will take notice. but i think in doing that it's important that the regulation is targeted, it's facts and circumstances based. what exactly is the concern and how can you mitigate against it? do we need more disclosure do we need some demonstration of proper collateralization if appropriate. you know, to ask the reasonable questions based on the risk, but work backwards from the risk to the regulation, not just the

regulation to prevent something that seems different, new and therefore scary, but rather to start there. >> all right petal walker, thanks for joining us today. >> thank you for having me. okay still ahead, texas is just the latest example of wild weather sweeping the nation. up next we will take a look at how the home building industry is working to rebuild faster than ever after catastrophic events plus february of course black history month and we are honoring some of our cnbc contributors here is cnbc contributor courtney gibson with her take on closing the racial wealth gap. >> in order to close the racial wealth gap in america that sits at around $10 trillion access has to happen, opportunities have to occur and people have to sponsor not just mentor our young people to help them to get

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well, we'll all remember 2020 as the year of the pandemic, of course, but it was also a year of a record number of hurricanes that made landfall in the united states and the most active wildfire season in history. now we're learning how to rebuild better and faster and diana olick has the story of a business opportunity that rose from the ashes literally >> in 2017 the tubbs fire in northern california burned more than 6,000 homes, half of them in santa rosa where richard hicks had built his home three decades before >> well, my home and all my neighbors' homes were reduced to ashes and we essentially lost everything >> reporter: hicks did not want to leave the community he loved but the enormous task of rebuilding thousands of unique homes was not something santa rosa's construction workforce could handle hicks worried that it would be a

very long process, as did nearby resident nicki peckett, but she saw an opportunity. >> i watched the community around me burning down and we quickly assembled a team of friends and family who felt like we needed to find a better way to get the community back. >> reporter: she co-founded homebound, a custom home building company but with a large production builder model the goal, make it possible for a devastated community to put up unique custom homes at the same time and in half the time custom usually takes. >> there were thousands of homes that were lost and so all of the trades were overwhelmed. >> instead of relying solely on local labor that's available we have a team that builds a proprietary network within a multi-hour radius of where we're building. >> reporter: homebound also helps clients most of whom had never built a home with design, budgeting, even choosing the more than 500 finishings

required. >> what we built is a platform that allows our homeowners to see at any stage of the project exactly where they are in terms of the selections that they have made to go into the house, in terms of their schedule, their budget. >> reporter: homebound is backed by some of silicon valley's biggest venture capitalists. pechet wants to scale her model to be able to move into markets at risk not just of fire but hurricanes and river flooding. >> the reality of climate change is we're going to continue to see more natural disasters creating more damage and so we've got to be prepared for how we can respond more quickly. >> reporter: richard hicks moved into his homebound home last year, faster than he ever expected. >> being back among my neighbors and bringing the neighborhood back to life i feel like i'm back home again. >> reporter: not only is this company building faster it's also building more resilient homes and communities, that means more defensible landscaping and managing vegetation, adding exterior

materials that prevent fire from getting in, venting systems that are more efficient at blocking flying embers. there are actually a lot of things that can be done to make a home if not fireproof, at least far less vulnerable, tyler. >> i've got a million questions, di, but let me ask you the simplest and most direct one, what is the argument for rebuilding in exactly the same place that you know may be fire prone, i guess you can say lightning doesn't strike twice, sometimes it does, or hurricane prone, just ask the people in lake charles, louisiana. >> reporter: argument to say the least, it's a huge debate in the real estate community, but, look, a lot of these people they lost their homes but they still own the property so there is an investment there they're also very invested in these communities, they want to live out in nature, people want to live by the water, but the other big issue is insurance if insurance companies are going to continue to cover homes that are at a growing risk from

climate change then people are simply going to keep rebuilding. so, again, that is the biggest debate i see around climate change in the real estate industry now. >> di, where you are is my hometown we have 16 inches of snow on the ground where i live. you've got no snow there i'm amazed it's amazing >> reporter: we had plenty of ice. plenty of ice. don't worry. >> all right thanks a lot diana olick. morgan >> that was awesome. ahead on "power lunch," walmart quick off retail earnings this week, set to report on thursday what can we expect to hear from the company? and how will retailers more broadly be affected by a prospective hike in the minimum wage the former head of walmart u.s. is going to join us. stay with us

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i'm rahel solomon and here is your cnbc covid update at this hour. the white house is increasing shipments of covid vaccines. each week the states will receive 13.5 million doses that's up from 11 million last week and doses going directly to pharmacies they will double to 2 million each week but the biden administration does acknowledge that shipments will be disrupted by all the severe weather that

has hit, fedex and u.p.s. hubs in tennessee and kentucky. new numbers from the cdc show that more than 55 million doses have been administered so far with almost 40 million people getting at least one shot now the pace did slow over the weekend but that was due to the storm and the holiday. still, however, above 1 million a day. and covid vaccine shipments are finally arriving in japan, that's welcome news to olympic organizers who still plan on holding the games in tokyo later this year. over the weekend that country approved the use of the pfizer/biontech shot, it will be going first to front-line workers and hospitals. it looks like japan is saying that it will not require athletes and even spectators to get vaccinated so i think a lot of people will be watching to see if they can successfully pull this off. >> rahel solomon, thank you. retail gets a temperature check this week. tomorrow morning we will find out how much consumers are spending after the latest round of stimulus checks when we get the january retail sales report and a major retail bellwether

walmart will report earnings on thursday morning that stock is up today 1%, more than 20% over the past year. with us now bill simon the former ceo of walmart in the u.s. good to see you today. >> how are you >> seems like we are poised for maybe perfect storm isn't the right phrase but just for perfect moment in terms of retail we have covid cases coming down, vaccine distribution coming up, increasing right now we have those stimulus checks that have gone out to a number of americans with more potentially on the way right now. how does that set us up for 2021 in terms of recovery >> well, i think you hit the nail on the head i do really think it's going to be an exciting year in retail. as cases come down and vaccinations become more available for everybody i think what we're going to see is this unleashing of a tremendous amount of demand that has been pent up for travel, leisure, restaurant segments and apparel,

things that have been really beat down over the last year consumers have held up pretty well, but i think people are itching to get on out. so i think we will have a good year. >> yeah. and e-commerce has been such a big part of the story, the ongoing growth there what are your expectations for walmart when we get those numbers later this week, especially since it's getting even more competitor, whether it's amazon, whether it's target, whether it's some of the other smaller retailers becoming more immeshed in this type of infrastructure >> yeah, i think covid -- and i've said this before -- i think covid accelerated the online retail development probably five to ten years it was growing pretty steadily at about 1% of retail a year until the pandemic hit and it's jumped up pretty substantially what we see is, you know, clear winners and those who have really succeeded, amazon of course, i think walmart has done really well. in the case of many retailers, walmart, target, it's a struggle for them to deliver that growth and you will see growth, i

think, in their fourth quarter results and deliver the operating income that they have been, you know, historically so the cost both in labor and in process of delivering the digital sales that they're delivering, you know, will probably show up in their operating income line so that's something i would be looking for. >> bill, i want to shift gears a little bit to another retailer and that is game stop. i know you sit on the board, i know the company is probably in a quiet period right now ahead of earnings but i'm curious as we gear up for testimony in congress later this week, what those conversations have looked like at the company. were you taken by surprise was the company taken by surprise by everything we saw in the last month and basically the fact that it became a poster of child of what was a populous movement of day traders and retail investors >> well, the whole retail investment phenomenon i think is something we all watched together and saw how it

developed. as far as gamestop goes, you know, i'm excited about the direction that the company is headed in, we recently added three terrific new board members that are going to help accelerate that strategy and we are in a quiet period, so that's about all i can say. >> let me ask you a follow-up, if i might, bill, that might enable you to answer as you look more generally at what happened in the frenzy of retail trading that was spurred by social media, by reddit, does it -- as a concept -- concern you that social media can be such a powerful force to move the stock of individual companies up or down >> well, i don't think anything is going to surprise me about social media anymore we've seen it impact everything in our lives from what we will watch on television to presidential elections so that the fact that it impacts, you know, the stock markets and individual stocks doesn't surprise me at all

>> all right bill, thank you very much. we appreciate your time today. bill simon, former ceo of u.s. for walmart. that's a little company you might have heard of. all right. we've talked about the everything rally taking place where everything, stocks, commodities, bitcoin, they are nl rising upext we're going to look at some big-named stocks with record highs and ask whether you should buy them now. that's next on "power lunch. before inv esting consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. good morning! for a prospectus cothis is where everythingn. started. the four way is engulfed in history. you're sitting in the place where giants ate. the four way is the heart and soul of the community. ♪

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welcome back to "power lunch," i'm seema mody a handful of big names hitting all time highs in today's session, jpmorgan, deere, qatar pillar, paypal and microsoft rising to records with the broader market following the vix's break below 20, often viewed as a risk on signal are there any names we're chasing? we have your "trading nation" team today what's your top pick >> i like paypal we talked about it, you like to highlight your winners and we talked about it earlier, i paypal and square being some of my picks for 2021 and paypal is

up nearly 20%. we're seeing a move to contactless payment solutions, that theme is paying in these times. also we're seeing the crypto craze and with paypal being one of the places where people can buy and sell cryptocurrency i think that plays well in their hand, still trusted, watched by the public, i think those are some of the things we're looking at i also like microsoft that we talked about, many reasons why as we talked about the gaming, the hybrid cloud, those things still stand strong, but those are some of the winners and i think that you still have opportunity to get into those names. >> bill, let's talk about paypal, the shift to cashless payments and bitcoin seems to be already priced into this stock so do you stick with the winners or look for some of the underperformers for opportunity? >> thanks, seema and, you know, paypal as well as microsoft are two of my top holdings and i do think this market -- my upside target rolling 12 month upside target

is 4625. if you look at the s&p 500 if you look at what happened over the last two weeks it makes -- you think it's very possible before the end of the year ultimately, though, as straight shot this market has been there are pull backs that capitalize and i think that's where it's important to have a shopping list i was out in october calling for the ten-year yield to go from 60 basis points to 1.25 and it's there now, it hit that for the first time today but that was the time to be buying banks. i think right now as you're seeing jpmorgan maybe a record high, paypal surge on the cashless payments and bitcoin, a lot of the narratives have already played out last week i'm trimming names, trimming off microsoft and trimming off paypal and then i want to know where to go shopping for these again listen, the technical charts anybody who ever said you can't draw lines on charts and be accurate is wrong. take a look at deere, for instance, since may this has been a nice steady climb you draw a trend line on something like that you know where to go shopping or like at microsoft, a wedge breakout over the past couple

weeks, wait for a retest back into some of that range. there are good technical charts to take a look at. what i can emphasize is have your shopping list for a pull back, i think volatility will continue as we make our way up to 4625 in the s&p 500. >> and deere set to report earnings on friday bill and delano thank you. head to our website where we break down some hotel names that are set to report tomorrow, that's on "trading nati nation".cnbc.com. >> thank you. still ahead, palantir plunging, pot stocks soar. we are all that and more in today's power movers right after this break >> announcer: and now the latest from "trading nation".cnbc.com and a word from our sponsor.

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market rick santelli is tracking the action at the cme. hi, rick. >> hi, tyler indeed, we are guns hot in all long-dated sorchs, especially this the u.s. treasury market. look at the intraday of tens and 30s. at 128 up 8 basis points in tens and 7 in 30. beginning of 2020, all around 2% we busted through 2% we have momentum here. when it comes to 30-year, let's go across the pond 30-year bund overseas are now positive they are at 16 basis points. if you go back the september of last year, that's the last time they were positive february 4th is where they started to go up and finally, the pound versus the dollar we know the dollar has been doing better as of late. right now the pound is near a three-year high against the

greenback, as you see. remember, right now we are at 1.39 and change. prebrexit vote it was at 1.48. it improved but it is not up to the levels it was in mid-2016. morgan, back to you. >> rick santelli, thank yo>>u. > another record-breaking day on wall street markets hitting all-time highs "power lunch" will be right back hi, i'm a new customer and i want your best new smartphone deal. well i'm an existing customer and i'd like your best new smartphone deal.

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welcome back, everybody. today we have little bit of bitter sweet news about one of our own. with a 32-year history of cnbc, no one's name or face has become more synonymous with the network than sue herera. sue herera is stepping back from her day to day on air responsibilities to take a different role she was the first woman -- among them to break into the broadcasting of business news. she has been part of every story from the.com bubble, 9/11, and covid-19 she has done it all being the nicest, friendliest, nicest colleague. sue, welcome from an undisclosed location where i think it is warmer than it is where you were last week? >> indeed it is, ty.

it is so good to see you thanks for having me on. >> so, sue, i know the question everybody wants to know is, apart from me, who was the best anchor you worked with >> you know, i was -- >> kidding >> i was so blessed -- i n.o.w. know you are but all the gentlemen that i worked with, you, bill griffith, ron insanaa -- i worked with so many great people, so many talented people. i have really had a charmed career, as far as i'm concern asked cnbc will always be close to my heart. >> you have made all of our careers the better for it. it is something you can't avoid, sue, and that is the farewell package. though this is not farewell. this is just a move to another kind of thing. let's take a look. >> okay. >> this is the new home of cnbc, now under construction we are building more than just a

studio this is a broadcasting first, a network designed to help you cope with your life. >> let's bring sue herera -- oh -- let's bring sue in here. >> barbara boxer will win in california >> absolutely soar. >> leaner and meaner. >> dow 10,000. >> month, march 9th, 1999. >> intel was the stock of the day. the insurance company wouldn't talk on camera welcome. now consumers have an even wider choice >> the most fluchks businessman in india. >> live from the new york stock exchange with sue herera and ron insanaa. >> horse power reports its earnings it is going to go over well on the expense report >> thank you my love >> there you are. >> okay. >> i love this it's cotton candy. >> cnbc's sue herera >> we introduce you to our extraordinary global headquarters, a building we are very proud of run by people we

love to work with. >> sue herera. >> how are you muah. >> yeah. >> wait, hold on >> mmmm. >> this is "nightly business report" w tyler mathisen and sue herera >> good evening, everyone, and welcome. >> largest trading partner >> we celebrate sue's 30th anniversary with cnbc. >> that's what the cake is for. >> yes thank you, guys. >> i'm sue herera. sue herera sue herera, cnbc tbusiness news. >> sue, one of your funniest lines of all time is that it is all about the hair morgan, i think we just proved that. >> yes, i just have to say, sue, it is an honor and privilege to work with you every day. feel the same way, morgan. >> i know i am not alone in saying that. and certainly, i think -- i look

forward to continuing to work with you in this new capacity as well that video does not do justice to how much you have done over the years and how much you have covered. i am wondering if there was anything that was your favorite in terms of a story? >> i don't know if i could really pick a favorite the kids are all still laughing at my hair in the video. they are all sitting beside me here i just want to say thank you to everyone at cnbc i love you all and i am going to try and use my time to not only be with my family, but one of my passion is to get more women on corporate boards that's one thing that i am going to be focusing on, as well as virtual events, until we all get back to normal but cnbc is in my heart. it's in my dna i'm not going away i'm just transitioning so i will be seeing you all soon. >> sue, we love you. i was going to say, we will miss you but you are going to be around sue herera thanks for everything

you have been a real model to many of us. >> thank you, ty.