welcome to "power lunch. i'm morgan brennan here is the 2:00 takeout arc investing, the space eff launching today. we're going to speak to the analyst. paypal goes full crypto. it will allow people to check out with cryptocurrency sits we'll have more on that. later, as the biden

administration warns about reopening too fast, how safe is it to get back to big? billionaire investor tilman fertitta will join us. frank, over to you. the dow retreating after hitting a record high yesterday. which at the highest levels since january 2020 shares, you see right here, discovery up over 4.5%. viacom up over 2% after the archegos blew up morgan, back over to you. a number of giant leaps

designs for the newest spacecraft of its fleet of vehicles >> this is the launch of the industry and a long-term plan. i think we are doing so witha company that will be build over decades, and we are making sure we take it step by stef. >> and arc invest looking to do just that. ticker symbol arkx joining us now is -- there's a lot of spellings happening here.

sam, thanks for being with us to today. >> hi, morgan. >> it's like tuesday is for space here what went into the choice? >> and then two other components that are equally important are the key enablers, so 3-d printing is a huge component here

you have deep learning for rockets, and then the beneficiaries as well. space is already an invisible backbone to our economy. we do have seven spacs focused on space that are poised to merge and see the startups start trading publicly you do have a spac in here, but you don't have any of the space names. why not? we do our research, so we want to be sure we're picking the win

respect long term. we do make sure that all of our investment decisions are backed by research. names like netflix or deere were in here as well? >> i'm sure we've seen the memes, a long trip to mars, tractors on marcel mar mars. it's how we can be uniquely correct and generate some alpha from these things. if you look at something like netflix that as 200 million paying subscribers, in the u.s. alone there's over 40 million people who don't have access to

broadband. if a satellite solution can bring assets to those customers and expand the addressable market, this is something that's very important where we have analysts work on next-generation internet all of these names are so complex with space, touching on so many different technologies that we can all collaborate and really model these things in a way that most people can't.

>> withivity different etfs, how are you approaches it? how are you thinking about it? when we do see some of the major space moments actually happen? >> definitely. what we're seeing, pretty much the same, we're looking at this as a long time horizon. this is a whole new opportunities.

sam thanks for joining us what does it mean for the markets, though susan schmidt is head of u.s. equities thank you both for being here. the highest level since january of last year and where would you have to see the ten-year at to go back to investing in tech stock? right, we would expect the sell-off typically here negatively correlated with yields increases, because we value thinks stocks on future terrence streams.

as borrowing costs increase, it forces us to lower -- so we expect to see growth and tech pull in. >> as yields increase, we'll gel to that in a section, they are positively correlated. in addition, i would add there's a pretty powerful i think we'll continue to see high velocity. 1 as estimates of the prepandemic earnings, so inflation will be key, because it may very well force the fed's hand the at the has said it will deal

with the spike but if we see something more persistent than that the market log pour anticipatory. how do you see it impacting the markets today? >> i don't think it's negative for the markets at all i think it indicates how it is confident the consumers are. we know that the consumer balance sheets are strong and we're seeing a path to recovery, so i think that's what's driving interest rates higher. i don't think it's necessarily inflation yet. we've seen periods where we've had that slow, steady upward trend on interest rates, yen have seen the stock market do very well at the same time we've seen a pullback in the nasdaq, and some of those reopening trades where are the opportunities?

>> i think there's a great opportunity still in the banks, while the multiples have caught up from the significant, almost historic discounts we have received, the rise on the ten-year provides a good indication that we're entering a more amenable net-interest environment. in particular, i would still look to the banks that have diversified earnings streams while this environment could lift all boats, the banks with the diversified earnings streams can take advantage of this historic accommodation by the fed, will continue to see capital markets, continue to see issuance, trading, and so i think those are the safer bet, but again we'll see a powerful earnings revision story in the back half of the year as we embark on the recovery. >> susan, do you see things the same way at all?

>> i think there's a similar trend. i do agree that earnings will surprise to the up side, but i don't think it's limited i think we do have, again, a very confident consumer going back into the economy. i like those regional bakes, thee have good at manages businesses as well they're the once that benefits most as the grass-roots economy comes back i also like the consumer areas look at where consumers will come back to where they want to spend, where they've been held back by the pandemic i think there's some interesting stocks to investigate. >> susan, one more thought, gas prices and oil prices, how do you see that impacting the broader economy? we saw gas and oil surge a bit, but now has taken a leg back. >> it has. i think we're seeing good discipline out of the opec players. we'll see if they raise output

i don't think they will. i think the market expects them to hold firm i think if we get a steady backdrop, that's fine. it's when there's huge volatility that you run into trouble. >> greg, do you share that opinion about oil prices and how they're impacting the recovery today we're seeing oil prices down and then the russell 2000, the only index that's actually up. >> yeah, i actual le agree with susan on that. i would like to add some color to her outlook on the consumer, because i agree, about you with a twist. i do believe that the savings rate, the elevated savings rate we are seeing has been largely concentrated in the upper socioeconomic groups so there's lots of households that don't have that, but will return to spending so i'm looking at some of those value retailers, particularly those that have invested in lever rajs, the retail capabilities, previous guests talked about implementing

curbside delivery, talked about leave raj -- leverages that, asy have a significant value shopping population among us. a lot of people doing a lot of shopping. gr greg and susan, thank you. rick santelli is tracking the action at the cme. hey, rick. >> good afternoon. intraday ten gives us a lot of information. we move higher, we move lower, but the spike is a fresh intraday high. 30s didn't do it that's key. we're holding yesterday's high yields that's also significant. if you go back to the closing high yield on the 19th of march, you can see the way we dipped down, but not much, and come right back foreign exchange is also having a very, very big march you look at the month to day, the dollar index is up about

2.5% we say, wow, is that a flight to safety based on all the issues and some of these home offices kind of melting down i say absolutely not the reason is the next chart it's down almost 3%. it's just not satisfying the euro currency. frank? >> rick, we appreciate it. still ahead, we're watching the sell-off in semi stocks really get hit over reports that ammo may be beefing up its own chip ambitions p paypal now says you can use crypto more "power lunch" sup next.

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. paypal announcing crypto can be used with 29 million merchants. dan is an analyst with a buy rating at a 375 price target on

pa paypal dan, when we talk about cryptocurrency sits at paypal, what is it in it for the company? maybe the company can extract fees from the conversions? or is it something else? >> yeah, thanks for having me. the most important thing here for paypal is it boosts engagement the more obvious you're using the app, you are paying with your bitcoin that's what we call the super-app effect you'll use it more and more often, so that's the first step. the second is a lot of people will use this and eventually, because paypal charges the same for the merchant, but it doesn't have to pay visa, mastercard or the banks it may increase their margin if people don't use it and they don't have to pay the

interchange. you look at paypal in the latest news today, the news yesterday from visa -- i realize that's not bitcoin, but a u.s. dollar-pegged coin there, but in general, looking around the payments ecosystem right now, is it safe to say we're at an inflection point in terms of greater adoptions as an actual use of value >> 100%. it's become -- i wouldn't say -- it brings bitcoin one step closer to becoming main street it's not just store value, but value you can use in a store, right? it becomes that change, that's like the big thing, and you're seeing that in the price of bitcoin. you have a lot of people betting on bitcoin, and we hosted cathie wood a couple weeks ago and she's talking about it like

becoming mainstream. that prophecy is being fulfilled over time. we're suing that come to fruition over time. >> a lot of the bit counsel news, the income it would likely have on a square, is there a chance they're actually undervaluing fin tech stocks square is trading at 175 times forward earnings i would look -- this is a great question, but the more important thing when you look at these names, you have to look at the terminal value so just looking at what they're going to do next year or two years out, you underestimate the potential future impact and you're like, wait, am i buying something now that, i think it's valued highly, but within ten years, they are the bank of the future, the money center bank of the future

that's a have i big up side to it that's why we have that price target on square and paypal. cramer raised this this morning, i'm curious of the tax implications, consumers and users of these different platforms, to be making these transactions in bitcoin and othercryptocurrencies. >> we'll see the adoption first, and then we'll see how users are going to adopt it, and we're going to be tracking this, and we'll track the usage of users for these features eventually, i would imagine, there would be potential more scrutiny on the taxes. it's all very new. we were sitting here three months ago at 30,000, and now

it's at 60,000 we're in completely uncharted territory. >> dan, thank you. >> thank you. still ahead, the debate over when to reopen and how fast to do it. really heating up. we'll talk to restaurant owner and billionaire tilman fertitta about what he's seeing on the ground much more after this zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

gamestop higher today, and still hanging around at the $200 a share level. the company announcing new executives, including two managers from chewy. up next, draftkings is buying the network, gambling-related content add spotify also making a deal, it's buying benny labs, which is behind an app called locker room. the price tag reported to be ar $55 million. vaccinations continue to climb.

at least recently, and we'll ask, have we reopened too soon plus, is amazon dipping into chips? those details when "power lunch" returns.

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welcome back here is your cnbc covid update at this hour in the last hour, germany announced it will restrict the use every the astrazeneca use of the vaccine nationwide for people under 60. back here in the u.s., more people are announcing they have or will get a vaccine shot roughly a quarter of the population is still saying no, according to recent polls. they are now urging holdouts to say yes, instead. >> for some reason republican men seem to be the largest group left that has had some resistance for taking the vaccine. i'm a republican man

as soon as i was eligible to take the vaccine, i did. i would encourage everyone to do that regardless of age, so we can get to herd immunity and get this in the rear-view mirror. >> the universal studios hollywood theme park will reopen in mid-april only california residents will be allowed to visit and some rides and attractions will not be operating right away. universal studios is part of cnbc's parent company. the oil market is closing for the day. dom chu is at the commodity desk benchmark west texas intermediate, $60.64, a 1.5% decline there. 64.25 the last trade there now that the suez canal has been resolved and shipping gets back to normal, they can act to limit

commodity prices, since things like oil get more expensive to buy in dollars, and if dollar gets more expensive to use, you get the picture. we are progressing toward thursd thursday's meeting of opec plus. morgan, a supply focus on thursday back over to you. >> a busy week dom chu, thank you the reopening trade isn't working today, airlines, cries lines, all moving higher across the board. as well as restaurant sales that are continues to rebound kate rogers has all of those details for us hey, kate. >> hey there after turning positive for the first time last week in a year, restaurant and traffic taking a

move in the right direction. comp sales up, and comp traffic up by 160% year on year. for a reference, sales and traffic were down around 63% this week last year. guests also continuing to spend more, with growth in average check up 11.9% the st. patrick's day holiday following this week, both last year and this year, helping to boost those numbers. another trend is emerge. even as traffic and sales struggled, people are snacking more consumers visits to restaurant during the p.m. snack period from 3:00 to 5:00 p.m., and from 9:00 p.m. to 5:00 a.m. is increases. and increased by 3% in the last quarter of 2020 they tend to be quick-service chains with pizza and burger performing best.

it points to flexibility of remote work from home for the up tick in all that snacking, but casual dining names, they have been rallies as of late. darden, and texas roadhouse hitting new all-time highs, those names are up between 100 and 600% off the market lows from last year. >> thank you, kate the reopening clearly helping restaurant traffic the cdc is warning of impending doom in some states. are we reopening too fast? here is houston rockets owner, and best-selling author, tilman fertitta thank you so much for being here >> hey, great to be here to talk about all these great subjects today. >> we're going to get to the houston cougars in a second, but

first we want to get to serious business are we opening too fast? 35 different states, you have a pretty good picture of what's going on do you want to see more states and companies just slow things down a bit >> i have no problem with the state wanting people to wear masks, but let's talk facts, okay texas was the first state to really reopen of the big states. it opened up on may 1st of last year, okay remember, new york and california really just opened up right now texas has the best seven-day average that it has ever had since the pandemic ever started. i was even in florida last week, and florida, as much as it's still been open still has a curfew at midnight texas is wide open until 2:00 a.m. for your bars and your restaurants, and look at our

seven-day average. so somewhere there's some bad information. i know the information in texas is right we have no cases in our restaurants. we've had very, very few cases in -- from our employees in the last few months, and all i can say is look at the texas model, because it seems to be working, and businesses are all geared up, and we're doing a lot of business here. >> so tillman, i was in texas probably about two months ago, and i think you're dead right. it's wide open but just because the cases are down now, are you worried about a surge coming up? you also have businesses, as you mentioned in florida and orlando. you have a restaurant in galveston, both of them not traditional spring break locations, but people certainly go there to let loose. are you worried what we saw in miami and other places will spread back around the country >> i'm sure we'll have more infections because of the spring break, and yes gavel stones and the houston area had a monstrous

spring break we don't even look at '20 anymore. we compare everything back to '19. we've had one of the best spring breaks we've had our numbers in march are surprising to us in all 40 states we do business in even in california and new york, where you don't have the business traveler, people are still going out in huge numbers now, and in texas and florida, they're just blowing numbers away people are tired of being locked up i think even though a mask is not mandated in a lot of states, i know we ask our employees to wear them, and we still ask our customers to wear them it's out of respect to the fellow human being, and why not? why not until you sit down, why not wear a mask? my company and my guests, i don't need a governor or president to tell us, we're going to do the right thing and ask them to do it ourselves.

>> tillman, it's morgan. i think about the consumer confidence reading that was so much stronger, we keep hearing about pent-up demand how sustainable do you think that is? versus how much of this is a temporary bump in stimulus payments >> we don't know, but that's such a good question i'm telling you. the high-end restaurants, my hotels, the casinos, are having record numbers right now you also have to remember, and everybody knows this who is going out to dinner or staying at a hotel, we are struggling from an employees base what's happened is if you take your normal, an average of 250 a week unemployment and you add $300 to it, hourly employees don't want to come to work right now, a certain percentage of them the way our whole capitalism works, we operate and live off

of our hourly employees. you're even seeing bonuses being paid now i have restaurants paying bonuses for hourly employees, because there's definitely a shortage right now >> i'm listening to you talk, tillman, and we keep hearing about how much slack there is still in the labor market, something like 10 million people i realize it's also something like 7 million job openings from companies. you factor in the fact that it didn't make it into the last stimulus bill, but it's still pretty much on the table that we probably will see some sort of federal minimum wage hike as well it sounds like you think the labor market is tighter than people realize >> it is remember, people don't go and try to get jobs. they're still in the unemployment they're looking at the unemployment numbers, but people don't want to go to work what has happened naturally by the $300 that the government is doing is minimum wage is

naturally getting up to where the government wants it, because there's such a demand for hourly employees. we don't need the minimum wage raised by the government it's naturally happening in all restaurants, hotels, casinos throughout the united states right now. i'm talking about north, south, east or west, it's naturally happening. there's a demand for employees and wages are going up we don't need somebody to regulate us with minimum wage, i don't care if it happens or not. mols of our employees are so far above minimum wage. >> i don't think people don't want to work i think a lot of people lost their jobs they were working before, but i do want to talk on stimulus checks. has your business seen a boost from stimulus checks in the past our data shows roughly about a third gets saved, and two thirds gets spent in some way do you see people spending money

to go back to restaurants and have those experiences >> you have hit it on the head what has happened is when there was the first stimulus check, people were scared they might need it to live, because they didn't know when they could get a job again. this time it's totally different. they're being 100% spent, because every hourly employees out there knows there's so much demand for them out there. why not spend the money, have a good time, and that's why my sales and my casinos, my restaurants, my online, is all booming right now. the person spending it knows they can get a job any day they want. the cougars have a job to do in the final four. what's your prediction can they go all the way? >> you'll have four great teams left we're excited to play another in-state team, baylor, but i'm so proud of the cougars.

you know, we got on a mission a few years ago when we hired kelvin sampson to come in and rebuild this program, gave him a great practice facility, and gave a great facility, the fertitta center, to play our home games in. we're truly excited for the fans in houston it's going to be a great final four. houston rockets as well, do you regret trading james harden? has it impacted sponsorship or ticket sales in any way? >> not really. if you have ever going to do something, this was the year, because there's such few fans. i'm happy for james. remember, we did as a franchise, we did everything we could do in the last five years to win a championship when you go all out for five years, then you're going to have a couple bad years we hope it's just one bad year, but we have so many draft picks, and already -- don't forget we

are decimated by injuries. we're the most injured team in the history of the nba this year what it is is what it is, and you pay the price for what you tried to do yesterday. >> we covered a lot, tillman, thanks for joining us. >> thanks, guys. higher interest rates helping banks today, particularly the regionals like america, but tech stocks are under pressure again the nasdaq is down nearly half a percent, chip stocks are falling as well. the latest bit of bad news for this group, though we'll tell you about that, after this commercial break, next.

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♪♪ welcome back the big chips stocks are down today. amazon reportedly the latest tech giant to start making its own semiconductors josh lipton joins us with more now it's looking to conquer the chips.

this chip would move data around networks if it works, it could reduce the reliance on broadcom how much is this really? in theory, amazon has the size and scale, but broadcom does not call out amazon as a significant customer, but big-tech companies from apple to goose d it can translate into real benefits like lower costs it is expensive. it can cost hundreds of millions to design and build a leading edge chip. for their part, the traditional

chip companies recognize this trend and they are responding with investments and bold acquisitions of their own. that's whynvidia is buying arm and why amd is buying xilinx >> i think one of the question is, would that product be here in the u.s. or overseas? they would have as to outsource that to a manufacturer that is a big discussion going on right now we know where the chip manufacturing goes on in the world, and it is overseas, it is in taiwan with tsmc, it is in korea with samsung, though we know that intel has new ambitious plans. recently he announced $20 billion to build the two new

chip plants in arizona, guys. >> thank you, josh it's down about half a percent to find out why bank of america could be initial beneficiaries, that story you can find it on cnbc.com/pro also up next, lululemon is becoming a battleground stock. will it suffer after it's no longer acceptable to wear yoga pants every day? stay with us

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welcome back to power lunch, i'm seema mody lululemon out with earnings after the bell let's bring in the trading nation team to discuss boris, you say china is the key opportunity and challenge facing lululemon. can you explain what you mean by that >> eah, lulu basically has beaten its earnings for the last two years 100% of the time so i think there's a very good chance it's going to do much better this time around

i'm getting a lot of feedback on the feed here so pardon me if it's like i'm stuttering here. but the basic thing with china is the chinese have a lot more consumer spending and have a very strong emphasis on well-being that alone is creating a very strong market for lululemon in china. that's why it has a tremendous amount of potential even so it's very expensive >> matt, the story of the stock really tells you the story of lululemon. it was up 50% in 2020 but down 9% this year where does it go from here >> and it's really going to be important that they show good earnings today because the stock has not acted well on a technical basis it has made a lower high followed by a lower low earlier this month if we get another lower high and lower lower it's going to be very bearish for the stock

however, as boris said, there's eight quarters in a row of fabulous earnings. what i'm saying is it's a key technical juncture for the stock and how it trades after these earnings will be important for how it trades the whole second quarter. >> matt, what is the key juncture to watch given the big runup we've seen the last 12 months >> 285 is that low from the beginning of march if we break belowthat, that will give it its second lower low and not just over the last couple of weeks but over the last couple of months. that will firm there's a major trending change in the stock not just on a short-term basis but intermediate term basis as well. >> matt and boris, thank you for more trading nation, head to our website or follow us on twitter. morgan, back to you. coming up, much more on the markets as stocks head lower the dow is down nearly 100 points, down about 87 points right now. please join us tomorrow evening at 8:00 p.m. eastern for cnbc's

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welcome back to "power lunch. markets are mostly lower on the second-to-last trading day of not only the month but the first quarter. the dow is down about 0.2 of a percent. a similar move for the s&p nasdaq also under a little pressure the outperformer is the russell 2000, those small caps, up 1.7% after that 2.8% drop we saw in yesterday's trading session. treasury yields, the 10-year yields hit a 14-month high earlier in the session coming back off of that a little bit. they're still stuck above 1.7. oil is under pressure ahead of that opec plus meeting gold is under pressure however, in terms of

commodities, bitcoin is not. we're on 60,000 watch. >> it doesn't make sense to me but what ask make sense is dow transports doing very well today. they're up over a percent and a and a half if you want to talk about reopening, the russell 2000 is up and avis budget group, rental cars, 8% higher than airline stocks, across the board higher. for jetblue, american, alaska and united, a lot of people feeling confident we're going to get back on planes, travel again. the world will get somewhat more back to normal. >> i know a lot of the airline analysts, for example, are keeping a close eye on pricing and future ticket sales, speaking to some of that reopening rebound we're seeing think about the 737 max orders we're seeing from companies like southwest as well. i'd also just note the

financials are the leading sector in the s&p right now after we saw the banks sell off yesterday. again, that rise in yields, i think, giving wind to some of those stocks right now frank, overall, great to sit and do "power lunch" with you. >> we got some space talk in, some transports talk in. >> it was a full menu, so thanks for watching "closing bell" starts right now. >> it sure does. >> thank you, morgan and frank welcome to "closing bell." i'm sara often along with wilfred frost. stocks are well off their lows as we head into the final hour of trade the nasdaq has been down more than 1%. it's been gaining ground throughout this session. yields remain in focus with the 10-year yield hitting a 14-month high before pulling back this before an infrastructure speech by president biden