>> during the show interesting. josh brown >> staying low on gm, judge. >> thank you for that. nice life jacket >> morgan stanley. the head winds of last year will be tail winds with the asset management business. >> good stuff. good to see everybody. the exchange starts now. indeed it does, scott. thanks very much here is what's ahead for this hour used to be the reopening trade or stay at home trade. these days both are getting love we'll look at where you should put your money right now americans flock to the great out doors. looks like that trend isn't going anywhere we're calling it the fresh air trade. from yjurassic world, we'll spea with the producer behind all of these films about the success of

this weekend's big release and the return of hollywood. we begin with today's market and dom chew whwho has the numbers. >> and a flower. you gave me a plant the last time i'm going stay as socially distant as i can there hand that off to you tyler mentioned before that whole idea that things are going higher they are generally speaking today, a more mute d market session. the s&p 500 did hit a record high we'll put a star next to its name things that going higher it used to be either or. the recovery stocks are doing very well today. some positive commentary and plans coming out of norweigan cruise line, hilton and bp on the oil and gas side of things they are generally speaking.

look at the defense stay at home type names peleton. wooem talk about that later in the show c chewy is up about 2.5% as well a few weeks are concerned when there's this much positivity across all parts of the market, it does raise questions about how sustainable that could come. back over to you >> thank you very much can this trend of everything continuing continue.

jason, is this market where it's safe to throw money at everything or not? >> throwing money at everything has worked it's hard to have been long and wrong. what we're looking at is the progression of earning at this point. it's about the fundamentals of stox underpinned >> chris, has the easy money been made in certain sectors and if so, which >> i think so. it's nice to be with you again i think just like last year when the stay at home digital stocks did great, i think this same thing will happen now.

i think you'll see this opening up trade, financial, the emerenergy i think the easy money has been made >> jason, do you think the easy money has been made. it did so well or since that rotation into the more cyclical names? >> i think the going here will get a lot tougher. it's really more of a stock pickers market the tailwinds we have seen from reopening is not well known. they could be stronger right now to me it's going to be a tough road >> let's get some names to throw out there, chris why don't you begin. there's three you mentioned. one can dis dominos

the other is taiwan semi >> i call these the rotational ugly ducklings they did great last career but have been left behind in the move towards the roeopening trade. all three companies will have terrific first quaquarter earnis we think these three will. >> your picks, you like, among other, citigroup.

merck is a place where capital is treated well. greater than 3% dividend can very easily deliver high single digit growth. citi has been the less blue chip of the big financials in the united states. it's got a global business and almost 3% dividend yield this is where the dynamics of that cyclical positivity can keep going sdpl sd >> and a new ceo who will want to show what she's got we're going to leave it right there. thank you very much. see you again soon it's no secret that more people tried out door activities last year. they all exploded in popularity as the pandemic drove more

people to explore the great outdoors where i guess by definition you're socially distant. there are names you can buy to cash in. john, welcome. good to have you with us >> let's get onto, it was no surprise that people looked for outlets and last year it was outdoor, out lets, camping, fishing, hunting do you they will persist because people like it and it's accessible and an affordable way to recreate. >> it's one of the best experiences we have seen in 25

plus years let's look at a couple of names that you like here up with of them is yeti. it's up 400% since march of 2020 i'm a little weary of saying the easy money has opinion made there. this one can continue, you think. >> this will continue. it's been great stock since the ipo in 2018. we think there's a path to 3 billion dollars plus >> it's containers and bags and so forts

what is it for those who don't know >> position and high performance products in coolers and drink ware and consumers easy to pay luxury price type points for this brand >> columbia sportswear up 106% why do you prefer that one above say, i don't know, pick your competitor under armour i can't think of the one that used to be vf. >> they are good ones too. we see upside into fiscal 22 under $30 price target est matss are conservative here. >> dick's sporting good up nearly 70% ov 0700% over the pa.

they feel to me like the only game in town because so many of the others have gone out of business >> they have made massive strides in omni channel retailing. they are sitting on $1.6 billion in cash. we think next year after some working capital. when you walk in store they have a bit of everything. they have everything from camping and outdoor goods to cleats and football gear and apparel. >> they do well positioned with many different consumers. position with their vendors like nike and others have improved.

>> do they have a geographic expansion opportunity? are they fully across the country as not >> not as penetrated in the west coast. i think you'll see low, single digit unit growth overall and they are opening some new concepts >> we appreciate your time inflation nation we'll talk to a business owner who is dealing higher -- dealing with higher cardboard prices, higher freight charges we'll look at the impact rising costs are having on him. the extortion economy. ransom ware attacks hitsing corporate america more than ever and companies are responding in an unexpected way. we'll tell you what that way is when the exchange comes back after this

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square feet of corrugated products, an increase of 3.4% from 2019. now a jump in commodity cost coupled with high demand is pushing prices higher. the cost of a bale of cardboard up about 10% year over year. my next guest says he's spending 20% on boxes a year ago and says prices will keep climbing. he's former president of the national kitchen and bath association. john, welcome. good to have you with us >> it's not just guard board that you package your products in i've got to think that lumer c - b lumber costs are hitting you hard as well >> it's been a significant increase we have worked hard to innovate to decrease the use of car

cardboard. lumber, logistics, employee wages and so forth, everything is pushing it significantly higher today on the lumber side, wood is more significant for us when it affects the product price point. lumber is kpsomething that affes us downstream. >> how do you mitigate the use of cardboard do you use a bubble wrap, a plastic? what do you do >> it's a multi-part answer. the first thing we did in our

company is we have -- we're not a multi-national company we have shy of 100 employees we have a group we keep condition our company. we call it the wonder team it's a group of senmart folks w move from department to department the handle issues we have been able to reduce our cardboard usage by 14% while increasing the protection of our product. our product is a finish, a highly valuable piece of furniture. we have been able to do that, be gone from fast moving systems like wet tapes to usinge ing strapping which reduce half the cost we also work on processes that allow us to innovate and box in. we have been woshlging with one of our partners how to do that we innovated and cut back the

number of people it takes. >> as you were talking earlier about the ripple through effects. the cost of lumber, the cost of labor. on the job site, you sell not direct to consumer but suppliers or wholesalers >> business to business. >> the contractor i hire to do will price to job to me and it get dous down to finishing deta. are you seeing a shift from the highest end product that you might manufacturer to a more bargain or mid price product because people are saying, well -- i'm concerned about the total kocost of my job

>> it used to be that cabinets were the first thing you selected consumer tend to spend more money on smarter appliances so a lot of times cabinetry is the last item in the budget they are trying to save more on a value price point but a higher quality product they are not spending on the luxury side of cabinetry that's where they are trying to save their money >> final question. to what extent are you able or have you been forced to quote, pass along the cost increases to

your buyers? >> through increased efficiencies we have been able to mitigate some of our costs. we held on as long as we can even a company like us, we're now starting to pass that along. it engoes to the consumer >> continued success to your business we appreciate your time today. >> thank you coming up, beauty is in the eye of the bike holder that's what one analyst says about peleton. we'll tell you why he think there's a 45% rally lead in the stock. you can watch us live using the

app. don't take nap, use the app. the exchangeilbeig bk. wl rhtac

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with a bang, 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 with the s&p setting a record high today. let's check some of the sectors. communication services, consumer discretionary, utilities are your leaders real estate, technology are, well, leading to the downside, so to speak. now to leslie picker for a cnbc

news update. >> minneapolis police trainers have testified that derek chauvin received extensive training on how to properly ri strain suspects. the trainer said the courses took place in 2016 and 2018. as vaccine eligibility expands nationwide, many prisoners still lack access to shots. the associated press says fewer than 20% of state and federal inmates have been vaccinated since the pandemic began about three in ten prisoners have tested positive. major league baseball will play its all-star game in denver you can read more about the expected move on cnbc.com and see how denver is already preparing for the game tonight on news with shepard smith back over to you

>> thank you very much we'll see you again in a couple of minutes more than 1.5 million travelers went through tsa check point making it the 28th day consecutive day of a million plus traflers. as demand ramps up, the airline industry sfasing a different kind of problem. a pilot shortage >> it's a bit of a perfect storm that covid served as catalyst for. it had to do with early retirements. some airlines we have seen as much as 15 or 20% of the pilot work force accept an early retirement because it's an incentive based scheme that a lot of pilots accept when the recovery returns, it's not like you can bring those guys back. you need to find new pilots and

it that's the challenge >> announcing plans to do that. southwest airlines bringing back more than 200 pilot who is had taken a leave of absence as they expand their schedule this summer coming up, trading cards set to go public via, a spac. could it mean the top of the spac boom. basketball embraces bit coin and kraft can't catch up with demand the exchange is back after this.

it's time for rapid fire here is dom. first up, credit suite is out

with a bullish innitiation of peleton. investors unsure if they can keep the growth open 164 price target upside, one source of sfrents. the stock jumping 5% on the call i am beginning to stop talking here i've given away the whole story. what do you think? >> here is what i would say. those peleton people that i know really love their bikes and are not giving them up any time soon that's where the positivity is coming from. another reason for some of this bullish call could be the idea ta people talk about the tam total addressable market for the most part mr. investors are looking at peleton saying

look at the pandemic people will start going back to gyms because we're a social species. we like being around people especially when it comes to working out. it's the international growth opportunities that have a lot of investors more bullish about this company because if they can do this in the u.s. on a fractional scale it could be a lot of upside. that's why a lot of folks are liking this call about peleton >> oh great masked man, what say you? >> there's one thing that you left out in that report were gross margins. they are off the chart for peleton. they think they are heading towards 46%. that's bullish to dom's point, this is a social aspect planet fitness is pup.

with the bike they pay for their customer acquisition i think people want weights. they want different things >> i'm a user of the peleton and i'm a fan of it. >> i do wonder because the gyms reopen, will that be place that people flock to first once they start feel more comfortable or going to be indoor dining. will it be some of these other areas. if they go back to gym, do they abandon the bike all together. i've had it in pre-pandemic

times and hopefully we'll continue to have it in post-pandemic times. i do believe that just the longer you have it, the more stick y those habits become. it could be situation where people use it less >> i worry about the mote they have from the return to gyms and the idea other competitors can come in. watch what happens some of those instructors are and will become big social media stars. let's turn to the spac market. tops best known for baseball cards and bazooka candy will go public through a blank check company. you're probably woerndsing how a company like this one faired tops net sales up 23% in 2020 to

about half a billion dollars >> this is a huge story play here they are buying company that really bit in but the two major trends this company has been playing around in that space for about a year now a lot of people with that extra free time turned trading sports cars that's been another big story we have covered on this network here you go. you have a combination of those trends, great story.

>> dom, spacs, nfts, gum it just feels like a bubble. >> it's so many letters. it's like an alphabet soup between spacs and nfts a great part about this story that's the reason why it fascinated me is that jason is a guy who specializes in distress investing when it comes to credit markets this is toetsly not distress at all. it's the other end of the s spectrum the real fun part will be in the future if you can see that nft craze be capitalized on by a company like topps wst one of the reasons why he was going after a company like top s to capitalize on nfts.

>> steve quick thought other than nft stands for not for tyler. sd >> it's a lot to digest. i think we have reached peak pessimism in spacs i think it will make a return on the scene and be better investment for retail folks out there. >> very interesting. that he began accepting pamgt online for tickets and merchandise. if i'm player, do i want to get

paid in bitcoin because i'm going to get taxed on the value when i'm paid and if it gains in value, and i sell, i'm going have to pay a second tax, capital gains tax. >> this seems like this vael r - really ripe for losses for players. i feel like the added person doesn't understand the benefit this reminds me, remember when every one wanted to get paid in eu euros. it's a pseudo example same sort of story i'm not nfan of this. i think it's ripe for disaster and the players. they want to be on the cutting edge i think it's silly for players to accept money in bitcoin.

restaurants can't keep up with demand. they are now facing a ketchup package shortage p pack kets are up -- who knew this stuff you don't get this information with those other guys. prices are up. sales pass the billion dollar mark last year kraft hines has assured diners and restaurants, quote, we're busy doing everything we can to get more supply out. kraft hines is up 17% this year. they are playing catch up. >> i'm doing my part to help this cause

i have not, nor will i ever eat ketchup. will i not consume it. i've had huge adverse feeling towards it since i was a little girl >> it sounds un-american that sounds so un-american >> i can do barbecue sauce this kansas city girl can do barbecue sauce i fail to sympathize >> have you had therapy on this? >> i think it's those who have to share food at dinner table or whatnot with my hatred of t tomatoes they are the ones that really feel deprived. >> dom >> i don't have that strong of an aversion. i do enjoy ketchup i do love barbecue sauce stubb's spicy is one one of

choice condiment wise, i can see why people during take out mania during the pandemic would hoard all of those packets >> in the category of things i didn't know i needed to worry about, ket cchup shortage was short and center >> who knew the little packets were called sach ets >> what are they called again? >> satchet >> i didn't know that. >> i think that supreme the theme of the peak. we had peak take out i think we're getting back to restaurants. there's no short supply. it's up 13%. i like mayo and i'm not allergic the way leslie is. i think we'll get through this pretty easily. >> a buy in your book, steve or do you have an opinion on it

>> yeah. i'm not sure if people are throwing it in the bag and not using it it reflects the way people feel about ketchup. >> we know how leslie feels. >> i've got plenty of packets that will not be eaten any time soon >> we appreciate your time godzilla versus kong has been a box office hit 48 million dollars we'll talk the legendary entertainment ceo about that and the future of hollywood in a post-pandemic world. that is next we made usaa insurance for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right.

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this all despite only about half of u.s. theaters being open. we're joined now by our own julia along with legendary entertainer josh it's behind other big movies like jurassic world. >> josh thank you for talking to us on the heels of the better than kpped results in the u.s. and internationally. to what do you attribute the stronger than anticipated box office pent up demand people feel safe in movie

theaters >> thank you for having me i think people missed going out and having fun we havecooped up for a year we had terrific streams services and content but people can go outside. they are choosing what to do to entertain themselves and the power of movies have been established and the power of going to moovies have been accomplished i think it's really people want to have fun. >> speaking of streaming services this is an interesting weekend to test whether people would stay home and stream your movie was also available on hbo max for no additional fee for subscribers. do you have any sense of how many people streamed it at home and what impact that availability at home might have had on the box office? >> great question. we don't have the analytics. we know was the largest sign up

event for hbo max since the service launched we are happy for our partners, warner brothers, in the movie. but for their partnership, we would not have produced the movie when we did. i think a lot of the misconception may be if you see it on hbo max, you won't see nit theaters i don't think that's a one for one trade off. there's a group of people not going to movies who will see content online a group of people he hassitant o back into the theaters and they are slowly going back. people will go see movies in theaters and see it on hbo max i don't have been any numbers yet, i suspect we'll find a lot of people saw this in theaters

and saw it on hbo max as well. sdplo now we may have seen in trults that the at home release is not cannibalizing the box office there's still a lot of questions including what this kind of streaming plan means for your relationship with talent and how you negotiate and make decisions about what types of films you're going to make. how does this plan for the next year that warner brothers has to do the simultaneously releases impact your outlook on the industry >> in the short term we have another movie coming up which is going to be on the path of release. we have great partner in warner brothers and they are leaning in as a good partner would do to make this a beneficial relationship

what happens to the downstream windows. we can do a lot of analytics around the value we knew what the windows were. we knew value of the windows and we had a lot of data around the tirade, the th earteatrical performance like home entertainment and paid tv. now post-pandemic we'll have a very different windowing system. we'll have movies go into the theaters for 45 days and when they come out of the the theaters we'll see the movies not just in home entertain m but see them on home entertainment and see them on paid tv all at the same time. >> one question i have, untested waters but one question is one thing is for sure is that we

will have more -- there will be more competition from streaming at home as more films are available and shorter windows at home and also we're seeing china becoming a bigger force in terms of the box office. how do those two factors play into the types of movies you see your company investing in the future >> have to find movies that will cut through. you have to find movies that will be buzz zi. that will be made for the big screen and the big screen experience godzilla is two huge monsters going at it. this movie was designed to be loud and have people cheering for team godzilla. that's why we delivered. it's better nobody creating event type movies.

it got people wanting to go clear with their friends i think we have to look at the comparison a little differently. i don't look at the comparison of am i going to choose to stay home an watch the movie post-covid i think you have to look at the comparison as i'm going out for a night out of entertainment ang to choose in will i choose movie? concert? dinner with friends? that's the unknown right now. >> josh, you saw this weekend people were ready to get back into theaters. we hope that can continue. thank you so much for joining us. >> thank you for having me. thank you both still ahead, cyberattacks have cost corporations hundreds of millions, often paid directly to the criminals behind the attacks. we will get an inside look at the massive payouts from a cyber-hostage negotiator that's next. as we head to break, it is financial literacy month,

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>> take a look at this this is a real digital ransom note sent to a company this is the kind of thing you get. it says your network has

infected, in the carey red letters. the hackers are demanding a cryptocurrency payout and there's a countdown clock there. so what do you do now? ra ransomware like this is surging, mark blicher helps companies deal with the attack the first thing he tells us his team does is to try to secure the company's systems and figure out if they can get things back up and running without the help of the hackers if they could, that means they have to talk to the bad guys, even though the fbi advises that companies should not be sending money to criminals companies can get the decryption keys within as little as 24 hours.

they know that, because they're already inside the servers, one hacker recently demanded a $70 million ransom his goal here is to get the data back and to get the price down >> the ten-person law firm, for example, may have politicians as clients. therefore that ransom may be extremely high, versus they may have a fortune 50 company where the ransom is low and because they only got to a certain portion of the data. >> the payments are almost always in cryptocurrency sit once we're told the money change hans, the hacker almost never walk out on the deal, because they said the victims who are next to pay, too the different industry groups are paying widely divergent ransoms. health care $140,000 on average,

finance $210,000 the average is over a million dollars, tie you can tell where the value is. >> fascinating stuff to the extent companies are paying it, are they encouraging more of it quickly. >> yeah, they are making a market but a lot of companies are simply concluding they have to do it, because it's an exist inchally threat to their company. >> eamon, thank you very much. that does it for "the exchange." coming up, luke garza, iowa hawkeye will join us to discuss baylor's win last night and will make a very special announcement courtney reagan will join me on "power lunch" after this quick break.

welcome to "power lunch," everybody. i'm tyler mathisen the s&p 500 continues to smash old records. now, though, just clinging on to very small gains dow a bit lower today. who needs to happen right now to keep this stock market run going? and many people can't wait to get back to the mall, try on clothes, eat at the food court i go