let's give you a market check as we tee it up for the closing bell the industrials are off just a little bit but the other major barometers are a little higher, basically a digesting day. court, great as always to be with you thanks for watching "power lunch. "closing bell" starts right now. welcome, everyone, to "closing bell. i'm sara eisen along with scott wapner who is in for wilfred frost today. stocks trading in a pretty narrow range the major averages are mixed as we head into the final hour of trade. let's look at what's driving the action treasury yields making a big move lower with the 10-year down to 1.65, big drop from last week's peek above 1.77 the imf predicting global output of 6.1 for 2021 job openings rising to a

two-year high 7.4 million openings in february, topping expectations keep an eye on the s&p and the dow. any close higher for those two would be a record. 59 minutes left to go in the session. scott. >> sara, thank you etsy has been one of the best performers in the s&p 500 over the past year, up more than 300% the ceo joins us to talk about his stock's wild journey, what comes next and the new initiatives his company is working on surrounding climate change. coinbase expected to report earnings results today ahead of its ipo next week. we break down results with the first analyst to initiate on the stock and that happened back in march. let's focus on the big stories. mike santoli is tracking the market action and meg tirrell has new details on the vaccination campaign there's a bit of a breather but the market still feels overall pretty good. >> it sure does, just hovering at record highs after being up 2.5% over the last two days. the first two days of the

quarter. it's tough to argue and see the chart very much a kind of clockwork rally. we keep talking about it did point out yesterday that one concern, if there is one, it's much more about short-term tactical issues. the fact that we've bumped up against this upper rail of this path higher. often that has meant a little bit of a giveback or sideways period another look at how overbought the s&p 500 might be again in the short term, this is the index relative to its 50-day average adjusted for relativity. folks look short term whether we're getting a little ahead of ourselves. yes, it seems that way back september 2nd of this year, we were a good deal higher relative to the 50-day average so often it has meant that the market has to gather itself, digest and pull back if things don't go so right and the rotations get a little slippage. in the middle of the day today we did have an air pocket in the semi conductor stocks. that came after applied materials. an investor day gave a

multi-year outlook in terms of pretty decent growth in revenue and earnings, but the idea that it was going to have 12% to 15% earnings growth from now through 2024 maybe was not quite enough because this group has been obviously on a tear. everybody talking about investment in new capital equipment and production for semis with the shortage going on so we do have a little bit of a give-back. we're down a little more than 2% on amat and the semi conductor etfs but have actually bounced off the lows but still a pressure point in the market right now. >> had a good run of late. the semi conductor index over the last week was up quite strong. >> but also this shows you it's a little bit of a test of exactly how high expectations have gotten if they're pulling back on what otherwise seems like pretty decent fundamental news. >> thanks, mike. see you soon president biden expected to make an announcement this hour to move up the date by which all american adults will be eligible to receive a vaccine meg tirrell with the details

meg? >> hey, sara, april 19th will be that date, that's up from may 1st about two weeks sooner this as the president today toured a vaccination site in alexandria, virginia he was there earlier as you said, this announcement expected later in this hour. finally enough, though, most states have gotten the memo and moved up the date to april 19th already. oregon, the second-to-last date to do so just a few hours ago. hawaii still having that may 1st deadline to make all u.s. adults eligible really more than 99.5% of that proportion of american adults currently going to become eligible at or on that date, guys we are also learning today about what could be the next generation of coronavirus vaccines dr. fauci has talked about what he calls the holy grail being a coronavirus vaccine. there was a vaccine going into human trials today

it is not that universal vaccine yet but in early animal studies, it has shown broad protection against the variants of concern with this coronavirus. we spoke with one of the inventors of that vaccine about what role it could play. here's what he said. >> we think that in the future people are going to need boosters will they need boosters of the same vaccine they got initially or a booster with a different kind of vaccine? >> and so, guys, their vaccine could be that booster and the next step down the line is potentially to make this into a pan coronavirus vaccine which could protect us from all of the coronavirus threats we know about and some we don't yet. guys. >> that would be huge, meg to the biden announcement coming this hour, eligibility is definitely a good thing, but what about accessibility and supply is everyone who is able to get

it are they going to be able to get it how long do we think that will take for that to happen? >> well, we know that the supply will be there for every american adult by the end of may, at least if all of the companies are able to follow through on their supply goals but whether we'll be able to actually get one, what the april 19th deadline means is that we'll all be able to sign up on that day how long it will actually take us to get that shot depends on how quickly those vaccines can get manufactured, distributed and out into people's arms, so we'll keep following that. >> where are we on looking for variants and those who have been vaccinated and whether any of them at all are contracting covid-19 and these new variants? is that being studied? is it being followed widely? >> it is being studied and we have been hearing about cases of break-through infection for people who have been vaccinated. i haven't seen a good breakdown of the data as to how many of those folks had variants driving

that infection or not. we do know that b-151 the variant associated with south africa does have less protection from the vaccines but they still appear to protect very well. in fact we saw data from pfizer from a trial in south africa showing very good protection of their vaccine. so once we get those good data we'll bring them to you. >> meg, thank you. up next, the true cost of a corporate tax hike barclay's crunched the numbers to see just how much next year's earnings will fall if taxes are raised we'll speak with the analyst behind that new note and do it right after the break. you're watching "closing bell" on cnbc.

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we have a news alert on pg&e >> pg&e moving to session lows, this on a san francisco chronicle report that the sonoma county d.a. has filed criminal charges against pg&e over its role in starting the 2019 kincaid fire now, the report says that the

company was charged with five felonies and 28 misdemeanors state investigators had previously determined that the kincaid fire was caused by a broken cable on a pg&e transmission tower we have reached out to the d.a. and will of course update you if and when we have any more information, guys. sara, over to you. the dow near session lows here, 49 minutes left of trade, down more than 100 points. president biden's proposed tax changes to pay for his infrastructure plan could have an effect on earnings. for more let's bring in the analyst behind the note. thank you very much for joining us an 8% hit to earnings. why isn't it being reflected in the market at this point if that's what's going to happen? >> so i think the answer is that the 8% is if all the proposals that the biden administration has proposed would get in and

that's a big if. right now the markets are probably taking a wait-and-see approach to see if all of the proposals having put forward can be enacted there's a very slim majority for the democrats and there is going to be a lot of probable changes that could happen over the next few months. >> manchin is talking about 25%, not as high as 28% where would you look to see a sell-off or a re-rating? certain industries, sectors, names, hardest hit by that higher tax rate? >> sure. if you look at our approach at the single stock level so we can look at how it backs the sectors. if you look at the sectors that get the impacted the most, as you might expect they're mostly multi nationals. so that includes the technology sector, both the hardware and the software, some of the multi national health care companies those are the ones who should

get hit the most over the last few days those stocks have actually not underperformed materially. so if this was to happen, then those are the stocks which will get affected the most. >> you've said if a couple of times, that's the golden word here but what's the reality what do you really expect is going to happen? and is this 8% predicated on the corporate rate going up to 28 as the president we know wants but is highly unlikely given some of the commentary already from the caucus. >> right so in terms of the numbers itself, there are three separate proposals that the administration has put forward number one is taking the corporate tax rate from 21% to 28%. but then there are two other measures number one is to also increase the amount of taxes that the multi national pay on their foreign income and the second which is a novel idea which is to have an ultimate minimum tax based on the gaap income, not

the taxable income but the gaap income that the company reports. so of the 8% number, about half of that is coming from the corporate tax rate going from 21% to 28% the other two factors account for the other four. >> i think the bigger question is whether it represents a hit to growth, to gdp, to investment i was talking earlier to the commander in chief economist at the imf and she said she's not too worried about it because when you look at the big corporate tax cut under the trump administration she was surprised that it didn't lead to a bigger burst of spending and growth on the supply side economics so a lot was put to buybacks so on the flip side it might not hurt as much do you agree >> absolutely. if there is a hit to earnings like this, exactly as you said, a lot of the difference that happened at that time was that

buybacks went up cap ex as a proportion of income did not move materially. but the other important thing to keep in mind here is that corporate taxes are being used to finance infrastructure spending that the biden administration wants to do that obviously will also increase our gdp growth. the only question is we don't have the precise estimates of that because we don't have that much details of when and how the infrastructure spending would happen, but that should also help increase overall economic growth we think the net impact is still negative but not all of 8%. >> you suggest that infrastructure is not going to be a plus for earnings i'm wondering how that's possible for the companies that are directly in the zone of getting a lot of business as a result of the new infrastructure plan, even if it's not at the size that the president wants, it's going to be something, we already know that.

>> sorry, maybe it was not clear. certainly we do expect infrastructure companies will benefit. i think the point our note was making is that the stock prices of the companies which are directly affected by the high infrastructure, the building of the roads and so forth, those haven't outperformed the last few days they haven't outperformed after moving in lock-step with the rest of the sectors since september of last year after biden was elected. but they have not moved materially and outperformed materially the last few days but certainly infrastructure will help the economy, there is no doubt about it. >> sure. you'd agree a few days doesn't a trend make, right? if we're going to have all of these spending and just because the stocks haven't moved over the last couple of days, i do think there's a bit of wait and see to get a better feel of what may be more realistic. >> exactly i think you're exactly right a few days doesn't make a thing but you would have expected

that -- and of course it could be that some of the results were leaked out and people knew it was coming and so this particular day did not mark a change in sentiment. but still given that there was new information that was confirming what was being speculated before, it was surprising it has not moved. i think the answer is exactly that you said, we are just waiting to see how this will all shake out. how much of this infrastructure stimulus and the corporate tax changes will actually get implemented. >> so bottom line, we just passed a $2 trillion stimulus package and we could see another $2.2 trillion if this gets passed in its entirety which we know is a big if, as you've been making that point. what then does the fiscal tailwind, what does it represent for the markets at this point? how much is already baked in and how much could come a little bit later? >> clearly the pandemic stimulus impact, if you look at gdp

estimates broadly speaking for 2021, they went up 2% as it became clear that that stimulus was indeed going to pass now, the effect of another $2.2 trillion is not going to be as significant because keep in mind that the pandemic stimulus, all that money will be spent pretty much this year if you look at the indications from what the administration has laid out, the additional $2.2 trillion will be stretched out eight years. not clear if it's front loaded or not, but it's about eight years. so even though that's going to have a bigger impact because it has infrastructure in it which has higher fiscal multipliers, the overall impact here will not be as significant as what happened with the pandemic stimulus because all of that was very, very much concentrated. >> maneesh, thank you for joining us. >> thank you. we've got justabout 42 minutes left of trade. take a look at the markets

taking a pause lower the dow is down about 99 points. this comes off rallies yesterday to record highs. unh, boeing and caterpillar dragging on the dow. the nasdaq is positive up a tenth of a percent. up next, the archegos problem widens the details next. as we head to break, check out some of the top search tickers on cnbc.com. 10-year yield making a big move lower today, 1.66. we were at 1.78 last night tesla, apple, gamestop, all regulars on this list lately and the spac that announced it's taking top'srang tdi cards public is surging, up almost 18%. we'll be right back.

check out shares of romeo power, surging almost 60% today on the heels of a long-term supply deal with truck maker paccar production is anticipated to begin after this year. all right, credit suisse outlining just ouch the archegos will cost that firm and it is shaking up its ranks as part of the fallout. leslie picker is following the story and has the latest for us. >> it feels like a big inflection point for credit suisse shares up fractionally after

plummeting 20% over the last month. the firm making a slew of announcements this morning as you mentioned, the big number, $4.7 billion that's the charge the firm expects to take from the forced unwinding of archegos capitol management which failed to meet the margin requirements. that is expected to trickle down to the bottom line causing a $1 billion pretax loss during the first quarter. in order to get capital ratios back to their target levels, credit suisse is suspending its buyback and cutting the dividend several executives are taking the ball brian chin will step down. lara warner is departing as well the firm is also launching a set of investigations, one aimed to figure out what happened with archegos and the other focused on greensill the ceo called the loss in crime services, quote, unacceptable noting that serious lessons will be learned here.

guys. >> do we think that all of the shoes have dropped here throughout wall street, leslie, or are you finding from your continued reporting and what you're hearing people talk about that we're still waiting for others things to happen, it's just a matter of time? >> yeah. i don't think the full post mortem has been written on what happened with archegos there are still lots of holes that we need to fill in terms of reporting. there's new news that really trickles out every day here. it's just such a fascinating story from that standpoint our cnbc counterpart just put out a story looking at the role that morgan stanley played he and i worked together on a separate story last week about some of the other roles that the prime brokerages have been playing. but still despite the numerous conversations we've been having, i think there's a lot more to learn here i'm sure we will bring that to

you when we have it. >> we still haven't heard publicly from bill hwang who ran the family office? >> no. all we have gotten is a statement from a spokesperson for the firm mid-last week i have followed up and have not heard back no fresh statements that i am aware of we'll be looking for potential commentary from the firm as far as what's ahead because last we've heard is that they are looking to dictate their best path forward at this point in time. >> appreciate it, leslie, as always still ahead, coinbase is due to report earnings after the bell today and that's a week before it hits the public market we'll break down those numbers. plus arts and crafts meets charts and graphs. shares of etsy are up nearly 500% from the march lows we'll ask the ceo if he thinks that momentum can continue as

the country reopens. the 10-year note yield is down to 1.66%. we'll be right back. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved.

32 minutes to go we are seeing big moves in social stocks today. let's get to julia boorstin for why. julia? >> well, snap shares soaring over 4% today on an upgrade from atlantic equities from neutral to overweight. that cited snap's transformation from a messaging platform to a broader content platform now mark mahaney making an impact after he started his new role the at evercore he initiated coverage with an in-line rating and $75 price target saying that it has highly differentiated user value proposition and may be on the verge of unlocking, accelerating development velocity pinterest up and roku, take a

look at roku shares soaring after he initiated coverage with an outperform rating and $400 price target saying that roku is one of the best positioned assets to benefit from the shift of linear tv ad dollars to streaming. it's time for a cnbc news update with courtney reagan. >> hi there, scott, good to see you. well, derek chauvin's lawyer is arguing that his client had his knee on george floyd's shoulder not on his neck. attorney eric nelson showed a police trainer body cam images of floyd's arrest. the trainer agreed in several instances chauvin's knee was mostly on floyd's shoulders or back. investigators have examined the black box of the container ship that blocked the suez canal for six days and still not determined the cause of the accident the massive ship remains in one of the canal's holding lakes. and toronto is cancelling all in-person classes as

variant-driven covid cases rise. the move by canada's largest school district affects a quarter million students the measure will be in place until at least april 18th. and health experts say the uk variant of the coronavirus is spreading faster amongst children and is likely fueling the rise in cases in parts of the u.s. find out more about what's being done to protect children from covid-19 on the news with shepard smith. scott and sara, back over to you. >> courtney, thank you. just under 30 minutes left to go before the bell. here's where we stand in the markets. the dow is under pressure, down about 100 points near session lows. the s&p 500 is flat, holding its gains. the nasdaq up a tenth of 1%. financials and energy are under pressure today consumer names are higher, staples and discretionary. up next, we will break down the recovery trade and why this recession is unusual when we speak with t. rowe price's head of multi national assets.

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the major averages diverging today. the dow and s&p 500 are lower while the nasdaq remains in the green. falling rates probably helping there. joining us now on the market is t. rowe price's head of global multi nation assets, sebastien page welcome, it's good to see you. >> likewise, thanks for having me. >> the dow and s&p at new records yesterday. a bit of a breather today. >> i think the question is with record highs are we due for a correction the macro picture is so strong

it's always possible to get a correction but the probability is probably lower than most people think currently we're sitting at neutral between stocks and bonds. we bought a lot of stocks around the bottom for our clients and rode the recovery. but right now the macro picture is just outstanding. we just had record services ism numbers, 63.7. you had strong job numbers on friday pedal to the metal fiscal and monetary stimulus, $25 trillion globally. you have $1.5 trillion in excess household savings which has to translate into pent-up demand. so the macro picture is so strong that i think the probability of a correction is probably lower than most people think. it is a valuation question, however. the way i like to look at it is looking at three cash flows. thanks to big tech, free cash flow yield on the markets is fairly high and it's high relative to the 10-year yield. by that measure, valuation is kind of in the eye of the

beholder equities are somewhere between kind of normally valued and bubble territory, somewhere in between there. so we end up neutral between stocks and bonds we're long the recovery trade underneath, though. >> i do want to ask you how we're supposed to be positioned. somebody sent me a really interesting stat that plays into our conversation the bottom 25 stocks from 2020 are up 32% so far this year. the top 25 from last year are down 3%, right it speaks to the rotation that we've seen the real question is, does it have staying power >> i think the rotation has staying power. we for the first time in ten years a few months ago started overweighting value stocks relative to growth stocks. we're also long small cap stocks, emerging markets and credit i think the recovery trade has legs and while you've seen a good run and also seen a correction in

some highly valued no revenue software type companies, you still have room. look, the value index, look at the russell 3. the value index is still 49% below the growth index over the last three years so there's a valuation case as i was saying earlier, there's a macro case also for the recovery trade so you have both value in terms of valuation and some momentum this ticks a lot of boxes for the recovery trade so we'll remain positioned that way. >> can that all work in an environment where yields are rising as quickly as they have been in recent weeks not today, but that's certainly been a theme. >> yeah, i think, sara, that is the biggest question for any asset allocator this year is will rising rates hurt risk assets i think it's unlikely, and we have to realize that the fed is only comfortable typically

raising rates in a strong economic growth environment. if you go back 30 years, there's 72 periods on a rolling 12-month basis during which the 10-year yield went up by 50 basis points or more. 72 of those periods. the average return for stocks during those rising rates environment is 17% historically. in fact stocks have made money in every one of these 72 rolling month periods when rates were rising it's not that rising rates caused stocks to go up, it's just that they coincide with economic growth and recovery you do have environments where you have taper type risk and also risk like the '70s where you can really get stagflation but i don't think that's the scenario in this kind of environment. so rising rates aren't necessarily bad in this environment. bonds just had their worst quarterly returns since 1981, so

it does matter for bond investors and we're multi asset investors. so on the bond side we like credit and shorter duration. we're short duration for sure. >> i heard somebody earlier on the network suggest that the market is in their words priced for perfection i'm wondering if you agree with that, the premise being you can't afford any slip-ups at all. >> look, the bar is high overall at the total market level, that's why if you have a 60/40 type of profile, 60% stocks, you would actually be neutral there. so the earnings expectations for the year are 25%, 30%, and that's what you need you can't really expect valuations to keep going up. you need at this stage of the recovery earnings to make up a bigger part of the return. so i agree with you, scott the bar is fairly high, the expectations are high for sure in the stock market overall. >> sounds like you're rethinking

the role of stocks versus bonds in the portfolio are you saying 60/40 no longer appropriate? which is a big deal, you're the head of asset allocation at t. rowe. >> that's the one question that keeps all asset allocators up at night. the 60/40 portfolio because bonds can't really play the same diversifying role that they have in the past needs to be tweaked. in my book i present some models where we take about 12% for a typical 60/40, 12% out of the bond allocation and put it into absolute return type oriented alternative types of strategies that look more interesting in this current environment we also do tweaks on the stocks side there are ways to get exposure to stocks now where you get downside protection with upside participation managing the volatility of stocks the 60/40 is not dead and diversification makes sense in any kind of environment. stay invested, stay diversified,

but it needs to be tweaked >> appreciate it sebastien page, t. rowe price. chips don't lie. semi conductor stocks taking a dip mid-session. we'll tell you what's behind that move when we take you in the market zone. you can always listen to us live on the cnbc app we're back on helong"t csi bell" right after this

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of all of the action going into the close. mike santoli is here to break down these crucial moments of the trading day. today we've got barbara duran from bd8. >> you were just too excited about the market zone. >> we're excited to have you, barbara. let's kick things off with the broader market the s&p 500 dipping into the red this hour. you do have a loss of about 5 points and that comes one day after we did set a new record high on the s&p along with the dow. >> barb, what are you doing right now? are you buying or staying pat? >> you know, i'm fully invested. i was adding more gm and boeing and trimming some. but i do think you're going to have a cyclical bent although i do think the barbell approach has worked and will continue to

work but right now i think the economy has opened much quicker than anybody thought i think there's a bit more to go here but i think we're getting near the end and the market is a great discounting mechanism, so the next step is to trim back even farther but not just yet. >> there's some suggestion that we're in for a month or a couple of months for maybe choppy trades, trying to figure out where we're going, a little direction, we've come a long way. a lot has to be baked in you still have tax policy perhaps to be worried about. >> no, exactly i think you've also got more inflation along the way. for now the treasury, the 10-year treasury has backed off and stabilize bid that may be temporary as we get more numbers in every data point, whether it's employment, consumer confidence, ism numbers, the economy is going to be running pretty hot we're also getting in earnings season and the revisions have been pretty widely spread and up i think we'll see more on the upside that's what's going to drive the market for who knows, the next

month or two but after that you should be taking some profits. >> mike, if you look at what's working today, utilities are at the top of the market. consumer staples, real estate are all higher what's driving that? >> well, there's been a little bit of a kind of subtle move toward quality, toward defensive, toward stability over the last little while. not so much a dramatic flight away from cyclical stuff but you see financials have two days of relative underperformance and give back. part of it is just like the natural choreography of these rotations that have supported the market part of it is that yields have backed off we are at a moment where we have to ask just exactly how much of the cyclical upturn has been priced in. i keep pointing out when you see these super hot numbers like for the manufacturing indexes and even the services economy, usually it's not as good as it gets, but it usually means that the market has sort of figured that out >> jolts. >> we have to see it come

through with earnings. >> the jobs number was very strong as well. >> you've seen the markets say exactly, that's what we've been doing is pricing this in. >> pisani was throwing around the word goldilocks. vaccine news continues to be fantastic. economic news, blowout >> credit is very supportive i think the only problem is everyone sees it in front of them nobody is actually saying those things are not true or are not going to happen for the rest of this year with this economic boom i think what you do have is tactically speaking you're up 80% in a year. usually you do get sideways give-back and i think the risk/reward has changed because of how far the market has come in a short period of time. >> the chip stocks taking a live after applied materials issued disappointing guidance semi stocks have had a massive run, up more than 100% since last april mike, also seen as a big

cyclical play here it's been an m & a play, a structural play given some of the new technologies what do you make of the play today? >> it's a little bit of a test of what investors have come to expect in terms of open-ended growth for this group. not cheap anymore if you look at something like applied materials. now it trades at pretty much a 15-year high in valuation in terms of forward earnings. so you can take some comfort in the fact it's been a leadership sector it's been outperforming things like software which is a bit more defensive but you wonder how much is left in the tank. >> also is it a stock-specific story? you need to hear from other people too and talk about what the environment looks like. >> without a doubt that's always been considered a real bellwether for the investment cycle for semis in general. again, it's one of those things where the news flow has been so positive

the talk about the shortages, the talk about building n new foundries. gm has been on the run and today announcing a new big investment in evs, electric vehicles phil lebeau has the details. phil, it seems like every day you're coming on with some announcement from general motors about evs. we had you on yesterday. >> yesterday they showed us the hummer ev suv and today they talked about the plant where it will be built. it's factory zero as they refer to it. it will only build electric vehicles they also said at that point we're going to bill an all electric silverado pickup. no details on when deliveries will begin but keep in mind one reason this stock is moving higher, we're moving into the sweet spot of the market in terms of gm's knowledge. if they can do well with evs in suvs and pickup trucks, that's

what investors are excited about. the legacy groups are all moving higher the parent to fiat chrysler as well as toyota, they haven't done anything when it comes to electric vehicles, but investors are saying, look, we're interested and of course the king of the hill remains tesla i'm showing you this chart because i hear this from people all the time they're saying what's tesla doing, have they announced anything aside from better than expected deliveries for the first quarter, it's been relatively quiet but we'll get more news later this year when they have a couple of new plants opening up, the cyber truck, the semi. >> gm moved up the other day on tesla's positive delivery news on the halftime report today, phil, you showed an interesting chart of the race towards cheap battery technology and how general motors is literally neck-in-neck with tesla. >> they're nipping at their heels. they have been doing exhaustive

research in terms of the costs for battery packs. tesla is number one, gm is not far behind and they keep moving it down. they're well ahead of the rest of the industry. that's the optimism that is fueling a lot of investors saying, look, gm has some technology that if they can really harness this, this stock could take up. >> up another 1.44% today. phil, thank you. mike, great expectations getting built into gm and ford around evs how do you value those companies now or do you though valuation down the toilet because of a tesla and evs? >> the starting point for gm was seven times forward earnings they were so cheap and so abandoned and considered to be -- they basically can get -- i'm not saying it's all merited. it's all going to necessarily come to fruition that they'll be able to capitalize in a big way, but all they had to do was convince people of their commitment to being a big participant in the way the industry is going and they're

now at 11 times forward earnings so you don't even have to look at tesla's valuation at this point to try and justify it's not like disney where they have gotten credit for a netflix inside of it with disney plus. this is much more in the context of a stock that was beaten down. >> and it's trading at a new all-time high, back to the new ipo in 2010. gm one of the big winners today. coinbase set to release earnings, we're expecting them after the bell kate rooney here with a preview. kate >> hey, sara the big thing potential coinbase investors are watching today, crypto transaction fees. that's how coinbase made 96% of its revenue last year. the company brought in just over a billion dollars in 2020. that's according to a recent filing the majority of that came from bitcoin and ethereum trading

bitcoin prices have roughly doubled this year but they list ed bitcoin volatility as one of the factors. there's a lot of focus on user growth and competition from the likes of paypal and square back to you guys. >> we're obviously anticipating, kate, huge growth as we've seen what kind of interest has happened in crypto what is the ethereum versus bitcoin exposure they are stealing some of the spotlight with the nfts and moves we've seen this week. >> it is the entire cryptocurrency market cap topped $2 trillion this week and analysts are atrtributing a lot of that to ethereum. a lot of investors are looking to do them those combined made up 56% of trading volume they don't separate bitcoin versus ethereum but not much of them out there those are the two

cryptocurrencies that trade in tandem >> i'm just wondering how people are thinking about valuing this company. i've seen everything from mid-60 billion to 100 billion, depending on what various people in the private market have said that this thing is worth based on what it's traded for the in the private market it's a huge discrepancy. >> yeah, there's a lot of extrapolating from where it was in private markets, secondary shares and where it's listing. we don't have a price yet for the direct listing when you look at some of these payment companies and where bitcoin and the cryptoeconomy has gone in the past year, it's been roughly $60 billion it just depends on where bitcoin is trading this company will probably in terms of guidance and looking at where this company will be in the next year, it is so tightly correlated to bitcoin prices so even investors that have initiated coinbase on wall street are expecting a ton of

volatility when this company does go public if you're interested in investing in coinbase, they are expecting it to trade very, very tightly to where bitcoin prices are. >> kate rooney, we'll look for you when those numbers hit mike, what will you be watching for coin-based earnings? >> i think the remarkable thing about the business and one of the reasons people are so excited is how relatively generous those transaction fees are. coinbase takes half a percent on its transactions that's its spread, it's just a towering amount of toll being taken relative to what you see in things like financial products like stocks and bonds so it's very attractive in terms of having the economies of scale. the market loves these platform companies, these exchanges i remember when cme became public and it was very appealing pause you could look at volumes and you could filter right into the earnings model and there was a lot of stability to it and

scale paid off so i think all those things, people will see what the trends are in terms of the transaction fees and the margins it also shows you a lot of the activity when we talk about the institutional participation in bitcoin, it's mostly trading, it's playing the futures role, it's the funds against the actual coin. so i don't think it's a matter of buy and hold, it's all on turnover. >> it all depends on where interest in crypto goes too. >> sure. it's also an immature market if you have competitors and can trade it more cheaply, that's going to put some pressure on this middle man. >> there's a little less than two minutes to go on the trading day. you have more on the internals. >> yeah, not too bad it's been most of the day to the positive side. a little less than 2-1 to the upside yesterday a big upside in the indexes but not so great under the surface. today it's a little bit better for the average stock. so far this month, look at m momentum versus value, there has

been a comeback from the momentum strategy. it's probably going to look a lot more like value and cyclical stocks but a pretty decent outperformance from momentum stocks at this point relative to core value look at the vix, again, we've settled somewhere near this 18 level at the moment. the downtrendi is still intact it's net bullish for stocks. today the indexes have been very, very still. >> arc innovation up 2%. we've taken a little lower the dow doesn't look like we'll get a record close today we've stepped back about a third of 1%. down 100 points or so. the biggest weight is united health, unh, boeing, caterpillar and am gen. as for the s&p 500, we had more than a percent of gains

yesterday. any close higher would be a record we'll see what happens in the last few seconds of trading, down 5 points on the s&p it's groups like consumer staples. the 10-year yield down to 1.66 health care, industrials, technology, those are the sectors bringing up the rear the nasdaq closed negative in the final seconds here the russell 2000 index or small caps down. for the most part everybody is holding on to recent highs. welcome to "closing bell." i'm scott wapner in with sara eisen. sara just told you how we finished up. the dow giving back 100, the s&p 500 one day after setting a new record high and even setting a new one today at some point finishes lower by 4 points the nasdaq is down just 7. a bit of a restful day, if you will, on wall street there's the russell 2000 giving back a quarter of a percent. bitcoin has been red hot, up nearly 100% so far this year

investors will soon have a new way to bet on bitcoin. the company is set to report earnings just moments from now we'll break down the results as soon as they are released and we will certainly bring them to you. digus wright is joining the conversation mike, i'll give you the first bit of reaction to the market today. it was a restful day, maybe a breather before we find out where we're headed next. >> i do think that it makes sense to ask having come this far and showing that you're overbought, having investors both retail and institutional very fully invested i think at this point in equities, whether in fact in the short term it's going to be a little more of a mixed picture despite the fact that all the fundamental drivers are very positive. earnings going in the right direction and credit markets

very supportive. so you have the very strong fundamentals that everybody acknowledges but everybody is involved so maybe the short term is a little lessees easy to foretell. >> we had treasury yields lower, and significantly lower. 10-year down to 1.66 and the dollar weaker. those two things have been helpful for the bulls. are you surprised we didn't rally more off that? >> well, i am surprised but we're going to have these bumpy periods. we're just seeing it resettle now. so as the treasury yields come back down slightly, you're going to see it rebound. and so what we're seeing is that this is still a positive market so we're going to have these pullbacks and we have to be prepared for that as investors we're looking at the long term and seeing upside from here. >> where's the upside going to come from, degas >> great question, scott what we're looking at is that what we call growth at a reasonable price technology.

for instance, like a cdw so you're going to be moving into those companies, a cdw, for instance, provides technology services and products to local governments and educational facilities the covid relief really helped out because it put another $350 billion into local governments and also $170 billion for educational facilities so a company like cdw will do quite well also infrastructure. we've been talking about the infrastructure bill. a company like new core, which is a steel producer that uses recycled scrap to produce its steel is doing exceptionally well in this market. and so we really like it because ultimately the operating cash flow yield is around 27 p%. there's a lot of upside and it's been doing well in the last 60 days and lastly --

>> go ahead. >> and so we can get into some other names but just wanted to talk about some places where you could start looking at for opportunities. >> well, the point being and i read this statistic earlier. last year's losers that are so far this year's winners, you think that trend continues >> not so much the losers. we're looking for quality. and i think once you find quality, those are the investments you want to make so that's where we're more focused on going forward >> europe actually reached a record high and wiped out the pandemic losses. they were way behind in terms of the european stocks. the imf upgraded global growth to 6%, which is the best since they have been tracking it in the early '80s in terms of a growth spurt is it time for investors to be looking elsewhere, if you look across valuations which you can do now through etfs pretty easily >> you know, i do think it's got

the virtue of being somewhat nonconsensus to pivot more globally we're back where everyone is assuming the u.s. is the engine of growth. asia has been pretty resilient as well. but i would say that you would want to at least consider it even though i think there's a really good space for having a global economy given the differences in terms of back-to-normal type readings here versus places like europe, it's not clear that you're going to get the fundamental kind of validation for that call any time soon, but i think that you have liquidity around the world, it's very much a global market and people are in this mode of saying this is a lot of early cycle activities happening also to the extent that value continues to outperform, it's going to be more of a tailwind for overseas stocks. >> you do certainly get the feel that it feels like it's going to be full speed ahead here and everywhere else, at least

throughout europe it's going to be start, stop, start, stop, start, stop, until you get your act together with the vaccine and getting more people vaccinated. >> which really is a familiar pattern from cycles past we weren't dealing with a pandemic but it has been that way at various times so i don't think that's anything particularly new but the consensus does seem to be that capital is flowing into the u.s. to try to capitalize on the expected strength here so the contrarian play is probably the other way. >> no doubt about that from a contrarian standpoint. >> degas, speaking of contrarian, staples worked today and you like pepsico as part of this it's hard to figure out some of these names whether they're reopening trades or stay at home trades a lot of them worked when people stocked up on groceries. >> pepsico is a great example of working in the stay at home and also the reopen. let's think about snacks and cereals. i'm a big fan of quaker oatmeal,

frito-lay. as we stayed home, we ate those snacks and cereals, but as we go out we'll be ordering lipton tea, mountain dew as we get into beverages. and so if you look at the way that the revenues set up for pepsico, they get about 30%, north america, from snacks and cereals, another 30% for beverages. as we get to reopen, those beverage numbers will improve. and they're another 40% as we talked about earlier as europe and other overseas markets open up, they're going to recover there. so that's why this is a great play both in the stay at home and also in the reopen plus it has a really good, strong dividend yield of about 3%, consistent eps growth so this is a company that's going well in both markets. >> hasn't moved much in the last three months. we are just getting coinbase numbers starting to come out kate rooney with the details kate

>> hey, sara, coinbase giving their q1 estimates for the quarter. we have revenue here which is expected to be $1.8 billion for the first quarter. that's more than what the company brought in in all of 2020, so the company earned about $1.2 billion in revenue last year. reminder, this is just one quarter they brought in $1.8 billion. net income they gave a range between $730 million and $800 million so the company is profitable heading into that listing next week. the company reported a loss in 2019 so turning a profit in this quarter, they also gave verified users 56 pemillion people that's up from 43 million from their last publicly disclosed number in february for guidance, they gave three different scenarios, the high, the mid, and the low this is based on monthly transactional users.

they say given the inherent unpredictability of our business, they're providing a range of possible scenarios for the full year 2021 so analysts here will have to do a little math based on monthly transactional users. but coinbase out with their q1 estimates ahead of the direct listing next week. >> anywhere from 4 million to 7 million on those mtus they call it kate rooney, thank you very much we're obviously not showing anything because this is not a public company yet it is set to go public via direct listing next week, mike what stands out to you >> the fact that it is pretty comfortably profitable at these levels already, it's got very good margins again, it's got this 11% or 12% market share as they characterize it in terms of just dollars on the platform in terms of people trading these crypto assets so it's a very well positioned company. the question is what do you pay, assuming this might be one of the best quarters you can imagine just given what happened to the prices and the volumes. it's a very opportune time to

go you're talking about adjusted cash flow in the quarter of $1.1 billion. can you just multiply that by four and then put a multiple on it that's the big question. >> a couple of things stand out to me. half the assets of institutional, right they have $223 billion assets on the platform 122 of that is institutional as you said -- that speaks to the growth certainly institutionally. but this plays right into your whole thing about as good as it gets versus sweet spot >> yeah. >> how could anything be better than this? >> well, their high is 7 million users. >> with everything going on with crypto and nfts and all the craziness in what has been a raging bull market >> yeah, i think you'd have to say if you thought they were sustainable trends here, fine, the prices aren't going to be ne necessarily what they did this quarter but if you could have a decent run rate in this area, and it's mostly just flow

trading. it's not just people deciding to buy a few bitcoin and put it away then i guess that's what you have to sort out here. also just a unique spot in this area to be an equity that will be listed as a play on crypto digital assets i think that's probably going to be the back doorway a lot of investors, a lot of public equity investors decide they can participate. so this area doesn't leave them behind. >> a lot of people think we're in the early stages of the internet when it comes to crypto investing and usage and transactions every time you get something from square or fidelity, this is the way to play it. >> in the early stages of the internet, amazon stock went down 90% high to low at one point so you never know if that means it's all up from here, but absolutely there's tremendous range of estimates in terms of where this ends up. >> we'll talk more about this with an analyst that initiated on the company for now bitcoin down 1%. degas wright, thank you for

joining us we appreciate the commentary. speaking of amazon, we have some news from ceo jeff bezos. deirdre bosa with the details. >> hey, sara, that's right jeff bezos showing his support of investment in american infrastructure in an amazon blog post it says we support the biden administration's focus on making bold investments in american infrastructure he says it's the right time to work together to make it happen. he says that he recognizes this investment will require concessions from all sides, both on the specifics of what's included as well, and this is key, as how it gets paid for in brackets we're supportive of a rise in the corporate tax rate he says we look forward to congress and the administration coming together to finding the right balanced solution that maintains or enhances u.s. competitiveness. sara, certainly amazon has a vested interest in improving america's infrastructure, whether that's highways and roads to internet connectivity as it just expands its footprint in its different businesses.

back to you. >> is that why he's commenting here we don't usually get comments from bezos on proposals from politicians, do we >> we've seen him be, you could argue, more outspoken in the biden administration era than he was in the trump administration era, but i'm not sure if it's unusual. like i said, there's a vested interest here. i can't remember the last time he came out in support, but they supported all the covid efforts as well and were quite vocal about that as well in terms of testing and ppe and what they were doing on their side also to help government. >> yeah, they get a lot of heat for not paying any income tax. the parentheses, we're supporting higher tax is notable. >> to your point, though, we frankly don't hear from bezos that much about anything. >> right. >> whether it's public policy or what have you. it's just rare that he weighs in in such a big public manner. >> maybe he's getting ready to transition out of ceo. maybe he'll start a twitter

account like lloyd blankfein. up next, etsy's ceo josh silverman. plus, shares of playboy group have more than doubled since going public via spac in february coming up, the ceo on the company's move into the hot nft business we're back in 90 seconds ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money.

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lows last year the online marketplace benefitting from the stay-at-home play and pop in mask sales as well josh silverman joins us now for an exclusive interview we'll get to some of the announcements you're making on climate, josh, but first to this question that all of wall street is trying to figure out. what happens to your business, what is happening now that more people are getting vaccinated and economies are reopening more, including a lot of bricks and mortar retail, which is obviously a competitor >> well, the most recent guidance we gave as at the end of february where we said in the first quarter of 2021, we expect revenues to grow by over 120% year over year and so obviously the first quarter of the year is still very strong. now, we're lapping much easier comps from last year what we've seen over the period of covid is that people haven't been able to go and travel or eat out, so they have been spending more of their money on retail they can't go to the mall very

easily so they have been spending more of their retail money on e-tail. but even with e-tail which grou 40% in 2020, etsy grew it more than two and a half times the rate of e-commerce so i'm not sure what will happen when people can travel again and eat out again, it's really anyone's guess but millions of people have discovered etsy and turned to etsy over the past year and had delightful experiences that's what gives me great confidence in e-commerce and especially in etsy in the years to come. >> what do you see from new users in terms of how often they come back, how often they shop, and also those that come specifically for masks, because it was such a big contributor? not everything, i know home furnishings and all sorts of categories exploded, but if we do see reduced appetite for masks, what happens to those people >> we've been really pleased with the quality of the new cohorts. in fact we said in the fourth quarter earnings call that 40%

of people that came for a mask in the third quarter came back for non-masks in the fourth quarter so we're really pleased how people are turning to etsy and finding there's a wide range of what you can buy on etsy. you're buying something made just for you you're buying it directly from the maker and it comes with a handwritten note and that's certainly not something you get at most other places. >> i see two in three etsy sellers say their income has held steady if not grown since the start of the pandemic. you must expect in some respects that that's got to come down >> you know, it's hard to tell what's going to happen when the world reopens in the very near term we have been adding more than a million new buyers in many weeks of 2020, and those buyers have been having really great experiences. what our data shows is that the quality of those new cohorts are

really strong. so what i believe is people have turned to etsy, had a great experience, they are going to want to come back and keep coming back. and, you know, again, what's going to happen in the very near term as people can suddenly travel again and eat out again, you know, it's anyone's guess. but do i think that e-tail is going to be bigger in 2024 and 2025 than it was in 2020 and 2021, personally i think yes and do i think that etsy is going to be able to continue to gain share against e-commerce generally? personally i think yes so i think we're a much bigger company now. etsy is about twice as big as it was one year ago because of the nature of our marketplace, etsy gets better as it gets bigger, so i think this is great for our sellers and great for our buyers. >> you mentioned market share, that you have grown. there's also the tough competitors like an amazon i don't know if you consider walmart, ebay, of course, but there's also the social media players that have grand

ambitions of getting into shopping like tiktok or instagram or facebook. how do you view that everyone will be chasing this growth if you say it is going to be secular and continued story. >> i think they're all competitors. we compete for a share of wallet and home furnishings and clothing and jewelry and apparel. what gives me a lot of conviction is that we're not playing the same game everyone else is. amazon, walmart, they're building everything stores about shipping something to you cheap and fast, which you use and then it ends up in a land fill two seconds later. when i look at what other people are trying to do, they're also playing amazon's game. they're trying to sell you the same product that you can buy on am amazon, so they have to convince you they can ship it faster or sell it cheaper. good luck. etsy stands for something really different. it's about keeping commerce human. it's about buying from the human who made the product

it's about having that product made just for you. often you're co-creating it with the maker itself and you're able to do that at a really fair price and have it delivered to you fast enough for most people to meet most needs and we think that that is just a better way to shop i think the more that amazon succeeds, the more people will be desperate for an alternative to amazon. i think no one is better positioned than etsy to be that alternative. >> are you watching this alabama union vote for amazon, josh, and wondering if it could have implications for the rest of e-commerce players like yourself would you be vulnerable to that sort of thing happening with sellers? >> you know, i think the whole world is watching that vote for a wide range of reasons. our sellers are each extremely independent actors so i don't think it has any correlation to the relationship with our sellers. our sellers wake up every day with a broad range of choices for where they can sell online they're deciding what they want to make, how they want to price it, how they want to present it.

so i really don't think that there's an application relative to our sellers. >> what about the infrastructure plan and higher corporate taxes. jeff bezos just made kind of an unusual statement, coming out saying that he is supportive of both are you? >> you know, i am certainly supportive of investing in our infrastructure, and i think that investing in roads, investing in bridges, investing in broadband is incredibly important. investing in the education of the youth in america is incredibly important i think that government spending that is directly related to investment that drives more growth i think is good for the economy, is good for etsy and is good for everyone. >> finally, i just want to ask you about climate because i know you are making some announcements on that front and whether e-commerce companies in general, we get shipped a lot of stuff in boxes there's a lot of plastic wrap. i don't necessarily think of it as super environmentally friendly how are you dealing with that? >> so etsy has always been a

trail blazer in terms of environmental sustainability since 2019, we've been powering all of our offices and all of our servers with renewable energy in 2020 we offset all of the carbon from shipping we don't run warehouses. we don't have our own logistics. the seller ships directly from her house to the buyer's house but we can't absolve ourselves of responsibility there, so we offset all of the carbon that comes from that. in fact last year we offset about 400,000 metric tons of carbon this year we're expanding even further and we're also offsetting all of the carbon from packaging even more importantly, we've signed up to a bold goal to be net zero by 2030 that's about a decade earlier than almost all of our peers and we think that's very achievable and we think it's important for the economy and for the world. >> josh silverman, thank you for coming here to share that news

and talk about the stock we appreciate it. >> thanks for having me. coming up next, mike santoli looking at new data on retail investor behavior. how it could impact the market plus hackers are taking corporate data hostage through ransomware attacks and getting paid big bucks to free it. 'll eak wnwebrdo how much money is really at stake in this new extortion economy later on "the closing bell."

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let's send it over to mike santoli for a look at retail investors. >> yeah, scott, gauging the level of engagement and aggressiveness from retail investors is a key indicator of what the market is up to cumulative flows into etfs you see this raced higher. over the long term this is largely talking about the market share gain of etfs over mutual funds but it shows people have thrown money into this market like never before. this run-up into early 2018 was after the 2017 rally, after we were excited about the tax cuts and things like that this level was actually higher relative to the total value of u.s. stocks at that time, so basically the s&p is up 40% from that level and this level of flows is 10% higher. so arguably there's still room

to go up even though equity allocations very, very high. how about short-term trading take a look at this interesting relationship between options trading, single stock call option volumes, five-day moving average from deutsche bank compared to apple maps mobility trends this is inverted, the mobility trends as this is going down, it means there's a lot more people getting out and about and calling up directions on apple maps as people have basically been staying at home, they have been doing trading of options the retail aggressiveness in terms of the options market has receded a little bit as well as things like the ark funds and tesla shares coming back in. a little less speculative activity but a lot more money being put in equities so you could take that as a contrary on a longer term basis. coinbase reporting estimated earnings results as it prepares to go public via direct listing

next week. the company estimating $1.8 billion in revenue and $335 billion in total trading volume in q1. that revenue figure more than the revenue it had for the full year in 2020 for more let's bring in gil luria. you've had a look at the numbers like we have what's your initial reaction >> they're spectacular, unprecedented. i don't know that we can think of a company this size that grows nine, ten times year over year, that grows three, four times sequentially the growth in the crypto economy was very significant in the first quarter, probably more than most of us even realized. and that's translating directly to fantastic results for coinbase. >> you know, i sort of think about this could you imagine a better time to go public for any company this is like mcdonald's going public after we first discovered we love hamburgers. >> that's exactly right. what fantastic timing. they're doing a direct listing

next week, and they're reporting these types of results that exceeded probably anybody's expectations and the momentum in crypto continues across the various crypto assets. so far it's worked out pretty well it's a pretty good setup for next week. >> sure. because of that, gil, as an investor you can't extrapolate these numbers into the full growth rate for the year, can you? this was obviously a banner quarter where we saw them on volumes, on revenues, do more than they have in most of their lifetime. >> you can definitely not extrapolate these kinds of numbers, absolutely not. and remember, coinbase's revenue isn't recurring. they generate trading commissions. when crypto is hot and going up, they trade a lot and generate a lot of commissions on the other side of that, they're going to generate less commissions. it's not like they're comparables which are recurring revenue sas companies that build

gradually growth over time their growth is not going to be on a straight line but right now this quarter it was spectacular. >> what's a reasonable growth rate for something that is sort of hard to value that's what you have to do for a living, right? you have to model it somewhere, so where do you? >> that's right. and you really have to start with the assumptions about the growth of crypto if you believe crypto is going to continue to grow at the rates it's grown the last few years or decade, it's really substantial. it's as fast as anything else in technology but that's a long-term extrapolation. it's a very good company that's growing very quickly one of the good things is they're a diversified bet on crypto assets. you don't have to pick which asset will do well, but there's going to be ups and downs for crypto and ups and downs for coinbase. >> there's a range of scenarios which is sort of unique for wall

street they give three, high, mid, low analysis for how many monthly transaction users, the mtus, from 7 million to 4 million which is good to get the transparency but also shows how volatile it can be, so what do you do with that outlook >> yeah, we're going to have to create very conservative outlooks for coinbase. i'd argue that their high scenario is very conservative. but the flip side is their low scenario is quite possible so there's going to be a very wide range of outcomes more than other stocks more than other companies and comparables. so we'll have to take a conservative route going forward. even that conservative route is probably going to be for pretty substantial growth this year and probably into next year. >> can coinbase's stock work if bitcoin is falling >> unlikely. unlikely if bitcoin falls, then coinbase's results will go with

it and it will go down so the investors in coinbase will be investors that believe in the long-term viability and growth of crypto assets and just don't want to pick the specific asset. they don't want to decide whether to invest in bitcoin or ethereum they just wanting to be in the category and they'll just stick it out for the long term with these ups and downs and there will be ups and downs. >> gil luria, thank you for joining us still ahead, a playboy gets into the nft game. the ceo of playboy group will ans us to talk about the compy'move into the crypto art world. speaking of crypto, "closing bell" will be right back why not direct indexing? or crypto? fractional shares? or digital clearing? there's a place where all these things come to life. a platform where the biggest names in fintech are changing the world. so, if you've got the guts to dream,

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you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo president biden taking questions following remarks on the coronavirus vaccine, including one on the georgia voting laws and the corporate backlash we've been reporting on kayla tausche with the details kayla? >> reporter: sara, the president was asked specifically about whether he believed that the masters should cancel its scheduled event for this weekend set to of course take place at augusta national he said that that will be up to the masters but that in general he supports the decisions by for-profit corporations and groups to make their own decisions about whether they should be operating in states like georgia he said there are two sides to the debate obviously, the one that he agrees with and he believes the voting law that was signed by the governor of georgia, passed by the legislature, is antithetical to

the beliefs and views of voting in this country. but he said that also when events like that move out of a state like georgia that it is often the workers who make an hourly wage who end up getting hurt by those decisions, so he said that whatever decision these corporations and group decide to make he will support he also fielded one other interesting question about whether he has so far spoken to the chair of the federal reserve, jay powell. he said that he has yet to speak to chair powell since he has taken office one of the reasons why he has yet to take that phone call or make that phone call is because he wants to be fastidious in his dealings with both the federal reserve and the department of justice to try to strike a contrast with president trump who he said seemed to issue directives to those independent agencies and he doesn't want to be seen to have his thumb on the scale. sara, back to you. >> kayla tausche, thank you. interesting juxtaposition with the minority leader, senate minority leader mitch mcconnell who told corporations today stay

out of politics. don't be bullied by the left-wing mob. >> don't stop writing those checks, though. >> donations still welcome stay away from the issues, which a lot of people agree with a lot of people think companies shouldn't do that. >> i'm surprised what kayla reported about president biden not speaking with the fed chair yet. that's i think a little interesting, right it's been a few months he's been in office. >> hasn't been bashing him, hasn't been tweeting about him. >> i'm just surprised there at least hasn't been a, hey, i'm joe. you know, maybe we should get together. >> joe and jay. >> i'd like to meet you. you guys are in the middle of the action here. we're trying to pass the c.a.r.e.s. act and now we're thinking about doing infrastructure. >> i guess i would say i'm sure treasury secretary yellen and the fed chair, they have been in touch. >> i'm sure they have. >> she has weekly meetings with the president on friday and it's also covid environment so you wonder how much in-person meetings are happening. >> the phone still works, right?

email, text? >> yeah. >> you think he has jay powell on text? >> probably not. he could >> he could. >> i don't. >> he could dm him on twitter. playboy is trying to cash in on two of the year's hottest trends first it went public through a spac and now it's getting into the nft business, big shock. coming up, the company's ceo on thertrkolctn cleio tohe blockchain. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities. like our new work from anywhere solutions, so your teams can collaborate almost anywhere. plus customer experience that finds solutions in the moment. ...and first-class benefits, like 5g with every plan.

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it's time for a cnbc news update with courtney reagan. hey, courtney. >> hi, scott, good to see you again. arkansas has become the first state to ban transgender medical treatments for anyone under 18 years old. the legislature overrode a veto of the ban by governor hutchinson today's shooting near a military base in maryland involved three members of the navy a navy medic shot and wounded two sailors at a business park he then drove to the base where he was shot and killed while confronting military police. in new york, two building workers have been fired for failing to help an asian american woman who was being attacked the building's management company said the doormen failed to follow emergency protocols.

and zoo miami has a wobbly new bundle of cute this baby giraffe was born on friday and is already getting the hang of walking about. he weighs more than 180 pounds already and is the seventh baby born to his mother, mia, who is 14 years old very cute. back over to you, sara. >> i do love baby animal pictures and videos. thank you, courtney. courtney reagan. up next, playboy making a big push into the nft market with its latest partnership. why this new spin on the uld any's massive art collection costd to be a big business opportunity. we'll discuss with the ceo straight ahead

playboy entering the nft arena making digital art c collaborations playboy's ceo joins us for you for a first cnbc interview >> thanks for having me, i appreciate it. >> i'll ask the question probably on most people's minds which is what kind of art are you looking into putting into these nfts are they the naked women >> it goes well beyond that. we have a catalog that has over 10 million pieces in it. it's from some of the most phenomenal photography over the

last 70 years to interviews with steve jobs, mlk, jimmy carter, and we have a 5,000 piece art collection warhol, and many others. so we're excited on the opportunity both globally and domestically. >> a magazine company which you no longer are, you went public via spac recently. what is your mission now how does this nft fit into your new business strategy? >> i think we've always been a lifestyle brand. this company was in casinos, it was in nightclubs. the first product the company ever came out with was a pair of cuff links today consumers spend over $3 billion buying our products in 180 countries. so nfts represent a really interesting opportunity for us to create a long-lasting new

revenue stream not only mon advertising the initial sale but every subsequent sale thereof. when you look at the warhols and other pieces we have that historically few people could afford, through nfts and tokenization we can create a much larger universe with a much larger revenue stream participating in every subsequent transaction. >> do you eventually do -- i'm just trying to think of what would be next. you know, "time" magazine does the special cover, for example do you do a special edition cover or do you pull something from your archives and turn that into an nft? >> so it's all of the above. so it's not only creating new works which we've historically done and why we're excited to partner giving a platform for emerging artists but it's doing works off the catalog. so the first thing we're potentially doing is using historical ip but creating a new piece of work and monetizing the

legacy archive as well with over 10 million pieces in that archive plus our 5,000-piece art collection, the runway for the foreseeable future is endless. >> can i ask a quick follow-up do the ladies who have been on your cover have any sort of royalties to future revenue that you bring in for example, if you did an nft of one of the more notable women that you've had on, do they get a cut of that? >> we're still figuring out the downstream revenue but we've always believed in sharing with the artist we look at the nft as the beginning of the decentralization of the artist's business so our plan would be to help support people that have worked with us historically we've always believed in partnering with artists and so that will be part of our strategy moving forward. >> a lot of people think this is a bubble, ben, and they're already starting to see signs if you look, for instance, at the pricing on nonfungible.com that are way beyond the highs

snl did a skit about it. it sounds like you're putting a lot of the strategy behind this, so why isn't that true >> look, our strategy is much larger than just nfts. we have a company that consumers spend in excess of $3 billion buying our products. again, for individual pieces of art, i can't talk to the value art, i can't talk to the value of

art, i can't talk to the value of hey, it's good to see you. the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. cisco. the bridge to possible.

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test test test test test test test >> two big interviews on deck for tomorrow on this show. an inclusive with the ed governor lael brainard at 3:00

and at 4:00 we'll hear from carnival ceo about when we can get cruise in again and new cdc recommendations, a lot to discuss after stocks took a bit of a pause what are you watching? >> just exactly that, market action market slowed volume-wise, volatility-wise. boring could be bullish. see if it holds up. >> thanks. "fast money" begins now. >> i'm melissa lee this is "fast money" trader lion guy adami, tim seymour, karen fineman and tonight's sounding