good afternoon, everybody, one of those trying where you can just feel spring around the corner i'm tyler mathisen seema mody will be here in a moment taking stocks for a wide, we'll tell you what it means for your money, and meme mania exploding. we are following the trends on

doge, and after a 140% jump in revenue. wyms talk to the ceo about the sports betting boom. "power lunch" starts right now hello, everyone. i'm seema mody, the -- but technology stocks there are rebounding the nasdaq is higher today, but still down more than 4% this week with certains on inflation. bob has more >> flattish on the s&p, but generally better today once those bond yields started coming down, the markets started lifting. remember february, buy the

reflation stocks tech has a laggard for moth of february, but it's on the up side today these are not tio, folks all of the hotels, look at they moves, all of its glory, but we're changing the narrative is ink chaing away from reopening toward rising interest rates and the compact on the stock market, rising rates are pulling a ceiling on -- particularly the high-flying tech stocks. they tried for 30, 40, 50 times

2021 earnings estimates. apple is one more reasonable ones that's probably e.o. 20 or so times earning estimates. but those prices have country down, as interest rates have been rising in the last couple weeks. it's still on track for the worst weeks since october. some of the biggest losers this week, baidu, docusign, peloton and tesla all down double digits for more, let's bring in gene muenster.

these companies are really changing the future. they're the ones, that despite high rates will be around for a long time. oy view these pullbacks as a major buying opportunity all of these is a big opportunity. >> let's talk about zillow today announced a new feature that allows the company to price homes. it has one of toes direct home buying platforms i looked at how the stack has down since then. it's up nearly 400%.

our investors loop is in -- and we believe in it eventually that will go to 10, 20, 30%, as zillow captures not just the economics of the transaction, but there are other asuspects as well. this is a big deal, zillow standing by their estimate most professional real estate

people, when their clients are thinking about selling their home on zillow will often talk about the company not standing by its estimates i think that would generate conversation and really gets that flywheel going. whether we would do a transaction on it or not, i'm not so thursday, but probably. a lot of things i said ten years ago i would never do, and i am now. anyway, gene, let me ask you, what are the new faangs? are -- to paraphrase the who >> i think the new faang is to

be determined. when you look at the 6% pullback more recently, this transformative group, these are the candidates, they're down about 20%, so you've seen the bigger sell-off, but they are at this point more companies with a speculative factor to it but zale on could be part of the next faang a company like unity, they are essentially building the virtual and gaming words around us i think there's some existing faang that will be part of this. i'm a big believer in apple. i think they are accelerating this digital transformation that's going on. our opinion is the next couple years, to answer your question, some of them will go away. there's going to be issue to this new class

where the world is going the next five years, it's easy to make these investments. >> tesla versus luca, but it did hire a number of tesla employees. i think you'll see traditional car companies that would will be around, but you're going to see companies lie tesla, potentially

apple getting a new car, we've talk about that in the past. it's constituent knoll 100% clear about the direction, but i really think about this matching up as apple versus tesla long term i think that's where all the sparks are going to fly. >> tesla now negative on the year, down 5%. gene, thank you for joining us today. >> thank you. we've been hear one analyst after another pounding the table on value, so take a listen >> when interest rates go up. >> i was say growth to value as well, not getting rid of all growth, but more of a balance than people had before large to small, they're all

heavily weighted toward the same things, u.s., large cap and tech, right? i think if you want to be proactive about your portfolios, you should by own stuff that's not in people's portfolios that happens to be cheaper, but also geared toward this recovery that will take place over the next couple years. >> so will the growth mike, what do you think >> let me add to the chorus.

so, i do great that as growth begins to normalize. it's a little too early to scene we're sustained, but nickingly, provide more support now >> so that sustained period of outperformance by growth is one thing. maybe it is fading, but you're not quite so confident just yet that a sustained period of outperformance is in the cards for value stocks >> i think one of the things you do need to see here. i think interest rates will need to rise. it does create some headwinds,

so we need a sustained breakout in terms of value versus growth, rates rising but it has to be a real rate removing as opposed to resetting of expectations. >> are interest rates rising for the right reason, in other words, because there is more inflation on the horizon, and how much inflation are you expecting? >> i think rates are resetting for the right reason we're starting to see more and more comments -- and also in terms of the efficacy of the vaccine, which is an important turning point. it means some of the sort dista distancing first of all, the fed haz made it clear they will not

move very quickly. so i think there will be an anchors on the short end of the curve, but as business propecs improve, we'll see a resetting process. one of the reasons why we don't see a real breakout of real and surge in interest rates, we do believe that inflation is going to remain relatively well contained. therefore, we don't see the spike above, say, 2% that would be more alarming both for equity market valuations as well as for growth down the road. >> mike, thank you very much mike ryan, ubs global wealth management. as we head to a break, check out bitcoin on track for a its worst week since march of last year, as investors are dumping riskier assets look at it, down there almost by about 4% still ahead, draftkings bet big on the sports gambling boom, and it has paid off. we will speak to the ceo jason

robbins, about what is next, when "power lunch" returns

welcome back, everyone this year already we've had 175 spacs come to mark 85 of which were in february

alone. lucid, 23 and me, and tillman fer fertitta's landry. is delivers some stronger than expected results, anouning a by beat on revenue. some of the other big gambling names moving higher today as well here now, jason robin is with contessa brewer. >> thank you, seema. hello, jason nice to have you with us today gambling has gotten a lot of attention behalf robinhood, reddit, everybody from congressional lawmakers, to

charlie munger, i'm wondering whether you see robinhood as a competitor i think people can argue whether there's similar dynamics i think most people still trade and buy stocks for long-term wealth creation, not for recreation and entertainment, but certainly i think there are some that might, but we don't see it as a competition. you had a really incredible do you think that changes once people start going back to work, once we're not so concerned about the pandemic and protection

>> first, thank you, and, you know, we did talk about this a bit on the earnings call, as we thought about our guidance last year, we did build a bit of conservatism into into the back half of the year, with the expectation there may be softening of tailwinters it's hard to determine what was actually driving some of this increased momentum i think certainly the industry itself is picking up momentum. we have come a long way in terms of optimizing our product, but you have to think at least a good chunk was coming up with some s some pent -up demand, and other categories like travel and dining out have really gone away in those sectors in though categories i have to imagine some of that is what's been driving this

incredible response and really strong activation and revenue in our customer base. that's why we built a bit of conservative into the back half, with the expectation we may see people start to get back to some of the this other activity and you said, look, part of the reason why we delivered or clover performed on our core business is because there was luck on your side. and illinois extending the opportunities for customers to sign up on mobile. we now are seeing almost 20 states considering sports gambling bills what would you tell them about the importance of looking at mobile as the potential for growth >> well, i think we have seen this even before the pandemic, that the vast majority of revenue is general rating on

mobile i think that's an important part of many states, but the vast majority of revenue will come online i think that states are noticing that that's why so many, you know, we're only a couple years ago many states were considering just brick-and-mortar. now almost every state considering it has a mobile component to it. >> jason, your revenue doesn't seem to be a problem at all, as markets expand, but i was struck in one of my notes that the revenue per active user is about 6 $65 or so a month. that doesn't sound like a month. how will you juice revenue per customer, per user, down the road what can you do to do that >> first, we will continue to innovate on production

in-game betting, for example, which represents about three quarters in uk it's less than half of that in the u.s. i think a lot of that is just the products for sports like epl soccer and tennis are built out. but you would think sports like nfl, major league baseball, with stoppages in plays are more better constructed for in-game betting. i can see a world where more than 75% actually comes from u.s. sports. i think the other things would innovate on is some of the in-house over 6775% of draftkings volume in michigan, and there's still major gaps in the market with a lot of the traditional games you see still are not available, so we're working hard on those. so the second thing that that happen is more and more states legislating allowing for i-gaming simply by launching a

state and ofrlg those products to our customers where we weren't previously able to that will grow revenue per customer the last thing i would point is is we're always looking to expand our product offering. one of the things we do very well is cross-sell we can cross-sell more than half of our customers into i-gaming, so some in the gaming space, some not as an opportunity to increase or ltv and have a more efficient customer acquisition cost. >> jason, thank you very much. >> thanks for joining us today >> thank you for having me. contessa, thank you as well. as we head to break, check out the markets. the dow, my goodness, down more than 400 points. nasdaq is still in the green, but off the highs of the day what a soggy finish to the week

for the dow. plus we are on vaccine watch. emergency use approval could come as soon as today, making it the third vaccine on the market. we've got those details and extra intelligence coming right you

we've got a news alert on robinhood. let's go to kate rooney for the details. hi, kate >> hey there, tyler. robinhood is in talk with regulators to settle probes into its options trading issues this has to do with options trading and certain outages that the company has seen earlier in 2020 robinhood says it's in talks to settle investigations into those options practices. this is, again, according to a securities filings "wall street journal" did report this first we're just getting that filing it says robinhood's conduct has to do with cash and buying power that its customers were able to get into options trading this is all according to a filing just out here they also are apparently being

investigated by states here. separately new york's financial regulator and attorney general we'll get you more information as we get that, but again, robinhood is looking to settle with some of its regulators. >> interesting thank you. let's check on some of the big movers, the dow is down currently about 390 points gamestop is slightly lower right now, but it's never a dull stock to watch it hit a high this morning of $143 a share take a look at one of the biggest movers on the dow. salesforce responsible for a big reason why the dow is down it beat estimates, but analysts are concerned about the guidance for 2020 fears around growth that it may be slowing other big tech stocks are having a nice day facebook and apple are rebounding apple still down about 13% in the past month. chips are among the biggest gainers today. we're liking at amatt, xilinx

and more we'll continue to watchle markets here the nasdaq is higher we can see it up about 102 points how should investors handle this volatility that's something we'll talk about next meanwhile, popularity of viral assets like gamestop, bitcoin, dogecoin, are these the names you should by investing in at cinupext.

welcome back i'm rahel solomon. here's your cnbc news update at this hour. the state department is revealing a new policy in response to the murder of jamal khas khashoggi. it allows of u.s. to bar anyone working for a foreign government who is believed to have threatened or harmed journalists or dissidents. in fact some are getting visa -- and a new policy is being announced alongside a release of

a new intelligence report that concludes that the crown prince of saudi arabia approved the plan to assassinate could showingist bank of america and jpmorgan chase, the first big companies to offer paid time off to employees who get vaccinated against covid-19. beer fans, look away barrels of german beers worth millions of dollars going down the drain, because they have reached their sell by dates. apparently the pandemic called weak demand. the owner you have one brewery calls it soul destroying i think that's a big extreme, but -- >> but i'm thirsty rahel, thank you >> it's friday the weekend is just a few minutes away all right. markets right now, let's look at the dow, which has been diving here in about the last half hour, down 372 points, but on its base of 31,000, that's just

a 1.1% decline s&p 500 essentially flat, but look at nasdaq bouncing back now, 127 points to 13,246. russell is up about a quarter of a percent. nasdaq is having a bad week, one of its worst in quite a few months frank holland knows the oil prices. >> oil prices pulling back today, and expectations they just grew for opecs-plus to increase output. capacity is still off-line after the deep freeze in texas last week and may be another week before all of it resumes, but today's pullback just can't overshadow the strong gains, still up almost 20% a months led by mar an think oil, up more than 50% this month. a catch -- seema, over to you.

thoughs s&p 500 energy sector lower by 2.4%. thank you, frank. with gamestop and amc shares soaring against this week, as of this morning unique mentions of gamestop surpassed 3,000 in the top 100 posts on wallstreetbets. for more on a world where one tweet or one meme can move a stock market, i'm joined by taylor lorenz. thank you for joining us today there are different overlapping sort of explanations as to why these meme stocks are gaining so much attraction, but you think it partly has to do with the rising stock influencers who are they and why are they getting so much attention? >> definitely. they're people like, you we saw roaring kitty, right big influential members of

communities online, whether it's reddit, facebook groups, telegram groups, and a lot of people, especially young people look to the large, you know, well-known influencers that kind of make bold claims about specific companies, either for or against. >> roaring kitty went from an everyday guy to now somebody that everyone watching you could argue that others join that conversation online but does the focus, from your reporting, stay on the names like gamestop? or do you think at some point they exit stage right, and we see the focus evolve to other companies? if so, which ones? >> absolutely. meme stocks have been around for a while -- and what's popular in this community is kind of ironic stocks, so they love, you know, blackberry, nokia, they love to

bring back -- we saw a boost in amc also around the gamestop stuff. it's really playing on nostalgia, and it's sometimes a joke, like, wouldn't it be funny if this defunct company that we all knew from our child hood had some kind of resurgence? those are the ones people seem interested in. looking at that data, also spacs, the blank check companies that bring some of the hottest startups to the public market like open door they've also been a big topic on weight i wonder if they're backed by some of they will prominent names. these are just some of the prominent names, celebs that have backed spacs. >> absolutely. these types of company is a huge conversation on the internet i think it adding to a allure,

and they have online followings. i wrote aboutsh even a tiktok house that went public early this year, and it's -- i think any way that a company can kind of tap into the conversation online hype, whether that's uses a financial influencer or celebrity, seems to be a working strategy. >> it may be a working strategy, a good way to market, right? there's also a danger to it, too, potentially, right? >> first of all, it's hugely volatile online hype is very fickle you have bots at play. there's a lot of ways that hype and the internet can be manipulated. you know, it's a rink in move. you know, none of these are kind of long term people say they're holding to the moon with gamestop, but often a lot of these retail investors are just looking for

short-term wins. so, you know, i don't know if it's necessarily the best long-term strategy, but certainly good for building hype. >> yeah, certainly, and kind of fun looking at the messaging platforms to see what's hot. thank you for joining us, taylor, a great conversation taylor lorenz of "new york times." case numbers are down, vaccine numbers are up more shots could be on the way, given travel stocks a big boost this week. you'll see american airlines, delta among others a similar story for the crews lines, royal caribbean up 17%, so should you get in on this trade, or did you miss the boat? "power lunch" will be right back with that story. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding]

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welcome back to "power lunch. travel ceos papering a optimistic picture >> it's murky, as we peer into the future, we can look to markets like china, where there's been terrific containment of the virus, and you see occupancy levels returning to almost pre-pandemic

levels the challenge, as we look around the world, occasionally we'll see a spike in infection rates it has a pretty significant chilling impact on demand. >> we're very optimistic for 21. we think this is the beginning of a long growth trajectory. >> in many ways these habits will likely sustain post-pandemic. that bodes well for many of the category we compete in the other thing the pandemic did is it cost consumers to move toward trusted superior brands, which benefited companies lie p & g. >> i think the digital growth was a key piece of the puzzle. it will continue to be a growth engine for us. >> product is resonating with consumers at level we have not seen in years, but as proud as we are with our results so far, wee even more excited about the future. so consumer-facing brands

you saw there, but encouraging comments about this economic recovery let's bring in the trading nation team. gina, this road to recovery following this period of hibernation, which sectors could really benefit >> lido divorce has taken a position in las vegas sands. that was an interesting stock. it was an absolute dog in january. but if you want a way to play china and the travel recovery in the united states, this is an interesting one. they hold one of only six licenses in macau, and they we the upside potential is really interesting. >> a lot of these sectors, craig, leisure and hospitality are pricing in a big recovery. have they run up too far, too fast >> i don't think so, seema if you look through some of these spaces, i think there's

still up side. first, take a look at trip adviser. instead of playing one individual hotel, play all through trip adviser i think there will be a lot of individuals looking at travel again. you have a great downtrend reversal if we go back to the old highs of 2018, you still have about 42% up side. i also brought in a chart of jets, a play for this reopening trade. you have about 26% upside to get you one of the major yore head resistance levels. those would be two attractive ways we think you can play this opening trade. craig and gina, thank you. for more trading nation, head to our website or follow us on twitter. ty the ten-year yield is still

hanging around that has crushed some of the well-known momentum stocks all of those are down more than 10% this week, so where will interest rates and stocks go next we have two people with ideas. we'll bring them to you, after this >> announcer: and now, the latest from tra tradingnation.cnbc.com, and a word from our sponsor.

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welcome back a wild week, as we've seen a dramatic interest in interest rates across the board for more let's get to rick santelli, who is following the action rick >> thank you, seema. all you need to do is look at a one-week chart of tens boy, come wednesday, we

basically jumped from low 130s, all the way up highs in terms of price, but even at 144, this thing is still up on the week, and an aggressive trade if you really want to see how l month to date charts, shall we month to date of fives at current levels up 34 basis points on the month. it starts out right around 42, which makes it up 34 if you look at 144 tens, it's still up month to data and 30s are still up month to date these are very, very large moves. many who say it is a good thing. it is. the economies are going to be opening back up. vaccines are going pretty well there is also a darker side. that of course is the debt and nervousness about all the debt created globally and finally the dollar index hasn't fared well of date.

but it turned around a bit today. there is a bit of flight to safety on the dollar and up on the day, up on the week. tyler, back to you. >> rick, you set up your next conversation perfectly as rising rates rock wall street as the bond market signaling now a major shift, perhaps, in the markets ahead? let's bring in ron insanaa, a cnbc senior analyst and commentator as well as a senior adviser to schroeder's new orth america. and michael -- michael, let me start with you in a period where rates are moving up and they are volatile how can you balance a portfolio if you don't have interest rate rough stability. >> we are watching the interest

rate rocket stocks as the interest rates go higher i talked with dr. lacquer, he said he was surprised we didn't see higher rates given all the stimulus we have seen over the past 12 months i asked him what a more normal level would be, he said easy 2 to 3% on ten-years would be more normal i am not sure where this normal s but as the market is trying to find it you are watching stocks react in a more volatile way i think you will see the ten-year will build a bottom and stocks will calm down. but it certainly builds for a case of indigestion for investors coming into a weekend. >> ron has the 5% to 10% correction you were talking about last week become more or less likely this week? or is it roughly the same? >> i think we are this the middle of it, tyler, actually. and i do think that with respect

to rates it is the rate of change that the market has the most difficult time dealing with yes, they are up but still historically low, but they have moved so quickly we are seeing pockets of leverage flushed out of the market, valuation compression. because if you bet that the ten-year is going to stay at 1% for the foreseeable future and all of a sut sudden it is at 175, that changes the math you are hearing talk about disruptions in the five-year note yet there might be structured items out there that are tied to government bonds that had a hillary clinton up in the last 48 hours that accelerated the upmove in rates and as a consequence hit the stock market but, yep, i think this is probably the correction we have been looking for and it is going to be dependent on the ten-year note yield. >> michael, let me turn to you and pick up on something mr. santelli just talked about that was the amount of debt that is bald up in our system,

federal debt, state department, all kinds of stuff custody and an amazing not just debt, but also the sort of stimulus that is in the economy these days do we need to start worrying about the amount of debt as it grows to something like 150% of gdp? >> the answer is yes, absolutely, we need to worry about it, but i -- i tend to listen to these really smart economists who tell me not yet we don't have to worry about it quite yet because interest rates are still so low that debt service costs of debt service, are not really hurting us all that much. now, the cbo, kong budget offices, non-partisan, says without another stimulus we are going to be at $29.6 trillion in debt at the end of 2022. by my math, that's just next year, tyler, you can check me on that but i mean $30 trillion in debt

and we are going to have another stimulus package, right? and we have got a $20 trillion gdp. so we are at 150% debt to gdp, first time since world war ii. right now, it doesn't seem to matter at some it's got to matter, tyler. i have got too much gray hair to think that these things won't matter forever. >> yeah. ron, let me ask you about the meme mania we had a chiron just in the last segment. i don't do manias. i don't do anything called a door buster and i don't follow anybody calls an influencer. am i smart to to do that. >> i don't know. for our job right now, no. i have been on the reddit boards all morning. i was on there yesterday i would disagree with those who say that you can find quality information on the wall street bets subreddit i have not seep it i have seen nasty language i have not seen great analysis

i have seep video that's been altered to suggest that certain stocks are going to the moon or farther. it doesn't strike me as one of our guests said earlier in the day an area where you are getting intelligent information and where investors are learning how to take losses and how to produce gains. i don't think that's what's happening. been around too long i still think this is a moment of insanity this the market. >> all right, ron, thank you insanity from insana, thank you, sir. michael, final question, short pants or lon pants right now >> i really have to take the fifth on that on the advice of counsel, tyler, but it is 81 degrees outside. >> all right, gentlemen, we have got to leave it there. >> black lulus >> thank you ty and gentlemen. worst performers, 3m, p and g and chef ron tech stocks are rebounding after a bad week more on the markets coming up when "power lunch" returns

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just like that. go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac! !mm-hm! get to know us at aflac.com. cema, it has been an interesting month in the markets. we close on somewhat of a rocky day for the dow. there you see the u.s. markets i guess that's month to day. i'm not sure whether that's today or month to date but basically, a roughened to the month of february for

stocks but the nasdaq there, you see it moving higher today. >> two months down, bring on march. i would just point out, tyler, the weakness we have seen here, not just confined to the u.s we saw it overseas as well the fxi, the large cap index down 4% on the week. emerging markets down 1% today the move in rates higher is the story overseas as well tyler, thank you for having me today on "power lunch. "closing bell" begins right now. >> great to be with you. thanks, cema and tyler and happy friday welcome to "closing bell." i'm sara eisen with wilfred frost. a frenzied february coming to an end with another dizzying day on wall street. the major averages swinging between gains and losses throughout the session testimony dow seeing its biggest decline, down as much as 490 points at the session lows down a few hundred now let's get to what is driving the action yields are retreating following yesterday's big spike.