over the next couple of years. >> steve >> atkore. it's down safe for no reason i'd buy. >> mr. baller, josh brown. >> simon property. meet me at the mall. i'll be at panda express >> see you there that does it for us. thank you, melissa here is what's ahead margin call meltdown how one money manager tanks some big names and exposed what could be an over leveraged banking system it's starting to cause cracks in one key area of the market and could have big ripple effects. we'll discuss. the five star fund manager who out performed the markets by betting on what he calls disruptive companies but we begin with today's market. dom has that >> trying to find some stability. that's what the markets are trying to do because of the big hedge fund implosion you think the markets would be

trying to trend lower. they have been the dow up about 60 point. that's the highs of the day. we're down about 167 roughly at the low. that gives you an idea of the trade range. just about flat for the s&p 500. these two hit records on friday. the nasdaq under performing down about one-third of 1%. chinese internet stocks at the epicenter of the massive liquid dags the train share csi internet kwev is off 1% now this particularly etf houses many of those names that we talked about possibly vip shop. possibly ten cent music. all of those names in focus here this etf is down pretty ma markedly some of the othernames that ar tied to this forced liquidation u.s. media stocks.

is this part that's touching everybody off. it's massive move lower. we'll see whether or not there are bargain pickers up there but still not a lot of transparency with regard to how much further this could go given the ramifications of ripple effects. back over to you >> seems like a bit of theme for a number of things in the market so far this year thanks as investors deal with the fall out from billions of dollars in forced selling, how did we get to this point and does the volatility signal a systemic risk to the markets? i'm joined by kate kelly reporter at the new york times it's a hedge fund trade that we didn't see coming. i want has ripple effects leading to volatility. not the first time we're hearing that in 2021 which is more significant?

>> i don't think you can say which lit will be because i thik each one is a little more of a chip at market structure each one is telling you something is off i think that this is the most -- this is the latest one even the smartest people i talk to on this and talking about friends and know the markets and know much better than i do because they participate, they are sitting here scratching their heads. they are all saying we see it coming remember, whatever is going to happen when the market goes if the market goes, it's always going to be something out of left field i've been saying that. you have people gaming the system, gaming each other. each one is thinking they won't be left holding the bag. there's always somebody coming up with something new and some other way to sort of push their

own returns in this market i thought they were long how is is there margin call. he was trying to figure it out we don't know if it's the first, the second, the third, the last for some period of time. >> i'm city trying to figure out what it does tell us because it seems like another case where there are rules that were supposed to have prevented this. they are supposed to be disclosures when there's this big of a potential impact but none of that seem to happen here, right. >> right i think one interesting thing is these banks have to do regular monitoring of their prime clients if they will be blendin them money there's a whole know your customer process.

goldman sachs said the losses they anticipate or have seen so far are immaterial not much word out of morgan stanley. there's a bit of a divergence between different banks and how they did their risk management that's one thing note. i think there probably was quite a lot of disclosure to these banks but they have so much control over whether archegos would sell off a losing stock. it's kind of early days on the archegos situation it's hard know whether that will be more or less significant than game stop. as we're sitting here now, it seems less significant there could be more things to come out of this what they both are about is

market volatility. stock market volatility unexpected drops the fact that a viocom cbs tanked in a few mere days without clear evidence as to why that happened is the kind of market we're seeing in 2021. >> herb, i think a lot of retail investors especially the newer ones might not have a sense when they buy into a stock of whether it's worth that to begin with. it seems like the baseline assumption seems to be the stock is fairly valued here and if i think it's a good company, it should go higher is this in way a warning to every retail i vester that you've got to understand fundamentals and you have to understand the story here because you never know who else is holding this or dumping it in the short term >> it is another one it's just another warning. the question is do they want to listen jason has this great story in the wall street journal over the wait a second. it's intelligence investor column about the -- this is the

bull market built on dumb money to some extent where people are saying i don't really care i'm going the buy it that seems to be this phase we have been in much of last year. it was so easy to make money people just felt, i just want to be part of this but now, now they're saying there is some risk even doing what i do, you're starting to see some discrimination you're starting to breathe again and say we can start doing real work again because people are paying attention but those other people, who think it was so easy, they are going to learn. it's not they may learn. they are going to learn. this is another indicator that is lot further than it appears >> kate if we look at the rings in the market tree to mark time, is there something this sort of groove tells us where we might be in the market herb is talking about this being yet another signal that maybe this time isn't that different

that things will get back into a normal kind of cadence, perhaps, if i'm interpreting herb correctly? that there been other times that have signalled something about where we are >> does this tell us where we are at a certain cycle whands are the historical precedences some people are comparing the acrhegos situation to ltcm i don't know if it's that dramatic i'm inclined to say no i feel what's happening with retail investors, people in this unique situation we had pandemic they have been uarantined. a lot of people have time on their hand there's been a ton of stress some who have additional disposable income and nothing to do with it in terms of going out attending ing vents and traveli. you have this cultural movement going on where there's this stick it to the man mentality. one person i interviewed when

covering game stop was my friend's 12-year-old son who got really interested in wall street bets and the possibilities of the robinhood app where you can buy a fraction of a share. he was playing not with a ton of house money but not really into it and following the story and had not done his research on gamestop just wanted to be part of the kind of action. they were investing in stocks. she would go up there to see how it's going it's interesting and unprediktsable for that reason

>> there's one other thing going on here because we start talking about structure and in addition to all the other things we talk about, we talk about the retail investors, the leverage, the regulators but we have the passive investing andpass passive investing is part of this dynamic that's going on it's so controlling. there's no discrimination in what they own. this kind of thing starts to shape that and starts to test the mechanics of that part of the market which is just had a free ride during the entire bull run. >> that's right. you might see a game stop run up as an isolated situation, which it wasn't. if you're holding a passive indexed etf and suddenly game stop is a huge proportion of your exposure, when it falls, your retirees and other less active investors get hurt

>> people who focused on the little screen with not much else to do, will they sell to go buy those concert tickets. perhaps. we'll see. thank you. >> pleasure. let's turn to the broader markets. stocks starting the day lower but climbing their way back. rates that continue to rise. let's talk about where we go from here. joining me now, barry james guys, good afternoon allen, does this archgeos situation shift at all how you look at it >> not at all.

he was able to shape some regulations. he's involved in swaps which are not required the market did not know what this guy was up to even though we know he was confirmed to have done insider trading ten years ago. this is juan off but i think it will impact regulations. it's causing some down side. let's talk about buying opportunities. dw do you think that's happening and what does it mean for how

you analyze stocks >> if you're going to be in shark week like this week, you need a nice big boat. those would be the things i'd be looking at small, medium. i like pie ner natural resources and large i like caterpillar all in that cyclical realm you would point out that covid news and headlines used to weigh on the market opinion now it's a bit of the opposite, for some stocks i look at names like door dash they are down more than 45% from

the highs. sgla i think . >> i think you bring up a good point. we're in a rerating. i'm starting to see evidence of that i went out with my family for first time in 12 months last night. the restaurant was packed. probably 450% capacity normally they would have ordered door dash but they ordered food and picked it up themselves. you see people get out of the hou house. you see human beings roaming the earth again. it's a good thing. i think value is really important. you look at this year, value stocks are up 12% the growth stocks are kind of flat. that's part of that rerating, that reopening story

>> kind of feels like we're sending out a dove and it's coming back with appetizers which would be a good thing. barry, you think volatility is going to continue. how does the investor position her or himself to benefit from that >> well, it's an opportunity that's the way you have to look at it when you see the market pull back then to do some advance. we think the market will continue to go up. i know kelly was surprised last time i said that it's been true so far. cheap money and lots of money flowing in stimulus and the like. the volatility is going to stay around you look at turnover people turning stocks over the holding period is about the lowest ever. you have nobody shorting stocks hardly anymore the vix is very low. that is going to ensure we'll see this air pockets, if you will that's the time to move in and

especially in those small stocks which have had an incredible run. let them stet. >> seth: settle down a bit >> specific advice sound advice thank you. >> i will. >> coming up, stuck. that seems to be a popular word in shipping these days products stuck at california ports. ships stuck at the suez canal. let's take a look at financials right now. yields may be rising but the sector is not. morgan stanley and wells fargo among the worst performers the exchange will be back.

right here in the u.s. that's helped it get through worst of last year's economic crisis at the start of pandemic it pivoted from making hoodies and leggings to mask for front line health care workers. it's scramble ld as demand has snapped back just talking last week i was like really got to get this conversation on cnbc.

i remember you making this pivot. you say demand has come back strong that inventory just isn't there at the level that one might expect it's something we're hearing across the economy but for a primarily digital online player like you, you've been able to be nimble >> we have some of that was self-inflicted. it's hard to remember this far back now we moved aggressively in the pandemic to cut our supply chain back to get ready for wa we thought was going to be a bead year >> you make comfortable clothes which kind of works well for people who are stuck at home or at least close to home and you had a model where you are primarily online with a few retail locations how is that going to shift coming out of the pandemic

what are you going to do with bricks and mortar? >> i can tell you our perspective. we're a believer that we will snap back quickly. we think the second half of the year be be very strong we are getting aggressive in retail we're trying to open up retail locations and we find leases that we like the underlying bet is consumer demand will remain strong. we're getting on our toes. sdp >> what has happened to that domestic supply chain in the past year. you make clothes under the american giant label they are made here from material source, cotton sourced in the u.s. what is happened to some of the mills from the different suppliers who you worked with over this period of time >> as you say, we have a very diversified supply chain all of which is dodomestic it's been a olympicsed mixed ba.

you find the smaller family operations had a hard time we had a couple of our suppliers fall out that had us to scramble we had a key factory that went out of business. it's been a olympicsed bag the people stayed in front of it and stayed aggressive about investing in their capacity have weathered quite well and poised to accelerate to the second half of the year. >> let's take a step back and talk policy. you have so much all of your supply chain domestic you have a great view on this. what's needed to really support and even grow the efforts of those vary sorts of businesses in your supply chain looking to have jobs here and looking to grow opportunity here in the u.s. >> it's a great question it's a varied answer at the core of it is, i think we

need more predictability on the supply chain side of things so the supply kchain come ponents i vest the biden administration begins to think thoroughly about beefing up supplies from the united states. retailers, you see walmart announcement, they came out about their big buy made in america initiative retailers take the leadership position and require their suppliers make things in the united states, that helps. i think consumers have a role to play as they get cautious and aware about where their things are buying i think brands need to lead. brands need to recognize it's more fragile and take the lead domestically as well

>> quickly, whatst the best technology investment you made that helped through the past year >> it's a great question it's probably investment in manufacturing engineering to get our people more efficient. we also made some investment in automation like cutting machines that have reduced man hours and allowed us to be a little more precise in fabric yields both have helped a lot and kept us doing quite well. >> a great look inside made in america for this period of time. thank you. >> thanks. coming up, the federal housing moratorium was expanded today and while it's good news for some it's having a big ripple effect across the market. we'll tell you the good and the bad. cathie woods heads the space with a new etf

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with a bang, of critical vaccinations for the world. energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business. welcome back stocks are mixed now the dow and s&p, dow is in the green. s&p just about break even. the nasdaq seeing the biggest decline but well off session lows playing a factor today we'll have more in the cdc,

ahead. let's check the sectors. you you tillties and communication sectors are leaders. energy and financials are the laggards take a look at the restaurant stocks cheesecake factory seeing big declines live entertainment stocks getting hit including eventbrite sea world and six flags. online betting stocks lower now. >> during today's white house covid briefing, cdc director made emotional plea urging every one to continue to wear a mask and social distance. >> we have so much to look forward to >> she has a sense of impending doom because of the up tick in cases is a warning sign that another surge is coming. >> we have so much to look

forward to, so much promise and potential of where we are and so much reason for hope, but right now i'm scared i know what it's like as a physician to stand in that patient room, gowned, gloved, m masked, shielded and to be the last person to touch someone else's loved one because their loved one couldn't be there. i'm speaking today not necessarily as your cdc director and not only as your cdc director but as a wife, a mother and daughter to ask you to hold on a little while longer i so badly want to be done i know you all so badly want to be done. we're just almost there but not quite yet. >> tonight on the news, the latest on the center expanding eligibility for the covid vaccine. john, back to you. >> thank you despite suffering some big losses this year, cathie wood is

launching another etf. this one focused on space expiration it will be under arkx and launch tomorrow it will invest in 39 companies, including tremble, jd.com and virgin galactic. you can head to cnbc.com/pro tomorrow you'll hear from ark's space analyst. southwest proving to be one of boeing's most loyal customers. we'll explain. the cdc extending the eviction moratorium for renters. the exchange will be right back.

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welcome back the cdc just extended its rental eviction ban set to expire in two days now go to the end of june it's leaving landlords in the lurch and could leave them without relief, at least, some of them. dia diana joins me now with the latest >> small landlords own just over half of the nation's rental homes. two different stimulus bills

have earmarked over 50 billion in rental relief but much is not getting there because the process must start with tenants. >> the critical thing here is, for these jurs isdictions to streamline what they are doing and make access to capital much easier for the residents and property owners. >> 15% of renter households or 6.7 million said they were behind on their rent more than a quarter say they have either slight or no confidence they can pay next month. as for the relief, 40% of rental owners who are owed back rent say they have not received the necessary paper work from tenants to file for it that according to the national rental housing council 11% said they have been forced to sell one of their properties. maryland has been a landlord in washington state for 20 years but she said she's lost more than $12,000 in the last six months >> it's just frustrating and i

think they're going to make it worse before it gets better by changing these rules and forcing us to keep ten nants longer. time to get out. >> blackburn says she will sell all of her nine properties but the trouble with landlords selling in today's incredibly tight housing market buyers will be the occupants reducing the stock of affordable rental housing. >> yeah, that's interesting. reducing the stock of rental housing. what are experts telling you about what this might do to landlord behavior overall? does it change their math of what it takes to get these rental properties profitable is it on a easier to refinance at a lower rate here >> no. it's not easier for them what they are telling them is that more landlords will start having much stricter guidelines for how they decide which t tenants they can take. it may be become harder to be a

ten nants. the landlord will be strict about who they will put into the home lit become less affordable to be a renter and harder to qualify to be a renter >> harder to buy and harder to rent that is rough news thank you. with approximately $25 billion in renter assistance still to be distributed, is the cdc extension of the rental eviction moratorium a good move our next guest says yes. let's bring in mark zandi. why is it good >> well, pandemic is still raging it's not over. the economy is still very weak unemployment and under employment very high still a lot of stress for renters. minority group have gotten hit hard by the pandemic renter staens is coming to landlords and tenants.

25 billion was appropriated with the december relief package and another 21 billion plus with the american rescue plan that's almost 50 billion in total. that's going to take a little bit of time to get out there i think the three month extension is enough time to get that money out and get on the other side of the pandemic by the end of june when this particular extension expires, i think we'll be in a pretty good place and the moratoriums could end at that point. >> what's to be done about that affect that diana was telling us about. harder to buy because of reduced inventory of properties because renters are buying them when they can and harder to rent because landlords might have tighter standards. is there a policy response that should work there? >> i think these are temporary problems, issues the housing market is very strong the rental market is strong in most places. i think once we get on the other

side of the pandemic and the renter assistance gets tout landlords, we'll be in a much better place i don't think this will be a longer term issue. it's important to point out that, obviously, you don't have moratoriums like this accepting circumstances under real crisis. this is something very extraordinary but we have been through a very extraordinary time i do think a few months down the road we'll be in maa much bette place. >> mornormally, it's a lot more difficult for landlords to refinance than for people who live in the property to refinance. given these circumstances, should that shift or would that not -- would that be a give away to people with capital in way this administration would be unlikely to do >> yeah.

not just renter who is are low income and not just renters who got hurt by the pandemic all renters. there's a lot of cash that's going out to landlords and tenants. it's now just getting it into the right hands as quickly as possible that's going be difficult, not easy i don't mean to belittle that because this will go through lots of state agencies and local dinties and some places are really god aod at getting money out. it will take some work i think landlords and tenants will feel good about how this played out >> we talk about stocks a lot.

what about in the real market? are the trends you're seeing in behavior strike you as being healthy or within the range of normal during this period? >> well, a single family market is all juiced up much like the stock market it should be high but i think we have gone beyond that. valuations are a stretch single family market kind of a tried and view measure of valuation. they look at household income, rent, construction cost and prices are high relative to those kind of fundamentals i do expect this market to cool off as interest raystes cool off to something closer to 4 or 5% i will say, this adjustment should be relatively minus because we have and under supply of housing

mortgage lending that been cautious most importantly, i don't sense flipping flipping was a real problem back in the ubble, the housing bubble before the crisis there's a lot of buying here but there is buying and holding. it's not buying and flipping >> that's what i was going to ask fp ask. if there were any of warning signs. you say no if there were a couple of signals, a couple of numbers or tendencies that you're watching that would give you concern if they heeded up further, wa would they be? >> mortgage debt started to accumulate quickly people started borrowing money.

flipping if people were just buying a home that they can turn around in a month or two or three and sell it at a hire price is speculation. that's a tell that the market is over done and will have a very significant correction wii not there. we'll see moderation i don't think this is anything like the bubble prior to the financial crisis over ten years ago. >> thank you mark zanzi. >> my pleasure coming up, check out this mystery chart. down more than 11% over the past month. one five star fund manage who are is up 95% in the past year says now is the time to buy. we'll we vealreveal what that in his other picks. it's time for show and tell. we show the chart then tell the story. today's chart generac. the stock lower. we'll be right back.

>> i think rirrespective of what the fed may be saying to us. we're seeing it's our business, materials, labor, logistics all those costs are going hire at some point that has to get past the consumer. it's going to be very difficult. i think you'll see consumers will be on board all these backstories?come up wh i got help from a pro. my financial professional explained to me all the ways nationwide can help protect financial futures in peytonville. nationwide can help the greens get lifetime income because their son kyle is moving back home and could help set up a financial plan for mrs. garcia. and he explained how nationwide can help mr. paisley retire early and spend more time with his pal, peyton. and their new band. exactly! yeah. don't forget the band. i haven't.

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through the rate driven volatility, small caps have out performed the dow, s&p and the nasdaq in 2021 the delaware mid cap growth fund is making some big bets on small caps it's edged out the russell 2000 over the past few months

joining us is alex eli, cio and manager of the delaware smid cap growth fund. a little small, a little mid what is promising? >> there's a lot of promising things the committee is about to reopen the pandemic will end. there's a variety of different trends and a host of sectors that are levered towards that roping that we're excited about. >> why planet fitness? >> well, i think that the number one thing people want to do right now is get back out there and interact i have kids in their early 20s, late teens they can't wait to travel and go to restaurants and interact with people and part of that is going back to the gym. another part of that is most people have gained weight during the pandemic i think people will get back out there and exercise and see other people and working out from your home is fine at home

>> how much of this is sort of like a win/lose situation. you tell that story about planet f fitness. can you go through and think about what's bad for door dash and look into the restaurant experience space as well among the small and mid caps as an area where there's promise >> you can absolutely peleton is great company they created a fantastic model they will be annualizing very difficult comps as we get into the summer and the fall. if you look at a company like p planet fitness they are in a terrific position. people want to get back out there and they will, as soon as everyvaccinated. biden is telling us every person could be vaccinated by the end

of may i don't think that will happen but it can >> that's an interesting name. they focus on spend management is that, to some degree, a reopening play do you think there will be that challenge as companies have to spend more on things like travel that they haven't spent on perhaps in a while they will need to manage that differently? >> there are a lot of other reopening plays that are more geared or levered to theroping and economic cycle just a great secular play. sdplp how have they been basiced by the period they've been in and why are the ones you think

are so well positioned >> when we think about health care the area we're most excited about are those companies that are levered to procedures. procedures have gone up for the past 40 years but they were down by 10 to 15% last year as people were reluctant to go the hospital, reluctant to see their doctor because of the pandemic that's going to end pretty soon. people will go back and get the procedures done. we have companies, as an example, something like prodginy which should see a bump up and get the procedures done that they need or want to do. >> flip side of another story that's being told. we heard a lot about telemedicine but some things you can't get done over the phone or over the web cam what's about logistics and the surge of attention towards air

fright as so many companies try to get supply chains moving again. is there anything to pay attention to there >> we don't own any company specifically in logistics. exci. we are expecting generationally high gdp growth in 2021 and into 2022 those companies involved with loistics should benefit from that cyclical strength. >> nice to seethat ship dislodged from the suez canal. >> i'm glad i wasn't in charge of that. >> me, too hopefully we all get moving again before too long. thank you. >> thank you. shares of boeing climbing today after a vote of confidence from a most loyal customer those details next. you can watch us live on the cnbc app "the exchange" will be right

back

welcome back shares of boeing are higher on news that southwest is going to

purchase 100 of the company's 737 max planes cnbc.com airline reporter leslie josephs joins me with more they weren't happy with boeing, eyeing airbus it sounded like. i have to imagine he got a good deal on the planes. >> think of airplanes after a year of a pandemic and equate it to office space in midtown who wants planes now there are a lot of good bargains to be had and boeing and southwest, of course, disclose the price that they got. this is an order for 100 planes. we have to put it into perspective that's the biggest order since the planes were first grounded two years ago regulators lifted that grounding the end of last year the idea of $100 million list price very unlikely. >> what does this signal for

boeing because that max brand was about as far in the tank in my book as you can imagine but this is a major vote of confidence it seems from one of the strongest brands in the airline industry. >> you're right. this is a huge vote of confidence from an all boeing 737 airline and flirting with the idea of airbus and mixing up the fleet which is something that it has really done for the most part in the 50 years of flying. so this is a huge sigh of relief for boeing that southwest divided to stick with that manufacturer there are good things for southwest, too there were some headaches that bringing in another flight type cause. you have to think of hiring, training, simulators, maintenance costs. and even know the airbus 220, the option out there, fuel efficient airplane more than an

older model, you have to factor in the other expenses with that. >> boeing up right now almost 2% less than i might have expected. was this anticipated >> it was a bit anticipated. for them, unanalyst said a heart attack moment if they forged a relationship with airbus. >> started seeing other people. >> opened the relationship up a little bit so that would have been the shock of course, southwest has been also forthright as much as they said they were looking at the airbus plane they did spell out what the challenges are of two fleet types and southwest is cost conscious and needs to say on cost of course, but doesn't want to bring in complexity, especially right now since trying to recover from the pandemic. >> understandable. leslie, thank you for helping us to understand it

boeing is leading the dow but over in the s&p it's facebook taking the lead. the stock the best performer after deutsch bank hiked the price target from $385 a share from 355 to 385 saying that it's growing more optimistic about facebook's advertising business this year. the analyst adding that they're seeing multiple encouraging data sets on ad prices and spending trends the stock is up 7% this year that does it for "the exchange." coupling up on prunch, aurora cannabis almost doubling in the last six months. ceo miguel martin joins to discuss and "power lunch" starts after this quick break emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved.

good afternoon, everyone welcome to "power lunch. along with frank holland, i'm tyler matheson it is margin call mania. massive block trades causing havoc across the market but are there buying opportunities amidst the volatility and the madness? plus, the "ever given" finally free after blocking