welcome to "power lunch. we're glad to be with you, the company updating the ipad, the i mac and apple tv most important to many of us, a device to help us find all your stuff when you misplace it, your backpack, wallet, phone,

whatever gap making a big bet that it's moving north of the border to take on lululemon on its home turf only one deli in new jersey, and.story only gets more interesting from there polypolystarts right now. let's get right to josh lipton. >> let's start off with the new hardware apple adding the new custom chip, the m1 in the new ipad pro. it's faster, more efficient. it means the ipad pro is the fastest of its kind, updated

camera system, 5g as well. the ipad has a bright spot for apple. it's going to start at $799 for the 9-inch model they're adding a m1 chip to more macs in the lineup so what apple is calling here a huge step forward. we know it's been very strong benefiting from the stay work from home trerchd. apple wants to keep that in a moment tum going $1299, upgraded version costs $1499. the question is what demand already looks like when more of us can return to school and the on office. new apple tv 4k, completely redesigned remote. apple wants to be in your living

room and is feeling very important screen to the consumer that device is not a huge revenue mover, but certainly can be strategically important and another way to market their streaming service. it starts at $179. finally brad-new hardware as well that tyler just mentioned air tag, it's a small disk, so think about your keys, your wallet, your bag $29, a four-pack for $99 orders start this friday why not sleep on that device i think it's interesting if it works as advertised, just as we're hopefully going back in the real world you with see how finding the misplaced items could be important. >> let's talk more about these devices, and new improved performance. tome forte, senior analyst, tim higgins, a tech reporters at "wall street journal," and steve

covac, a tech editor for cnbc.com tom, let me start with you is there anything here you see as a major stock mover for apple? >> yeah, i'm of the belief that unfortunately the pandemic is a multiyear event so when that vantage point, so an a new desk stop computer, i think those are stock movers of the ann announcements today. why is a tablet a critical part of the work from home or the work remote environment? i get having a laptop or desktop in that scenario, but a tablet escapes me a bit explain. think of the tablet as well suited for the learning re remotely

i think apple has an agreement with new york in large quantities you don't always need a desktop or laptop to communicate with your colleagues. >> tim, let me turn to you and get your quick reactions specifically focus on this m1 chip and what it means for speed for the devices, and do we really need more speed >> yeah, well, it's an expansion of that m1 the early reaction to those chips in the past few months in the mac lap topping has really spectacular. people like it so it's adding new features. as we have noted here, last year

really went gangbuster for this device you have to keep some of the excite, which analysts on wall street generally agreed that there probably be a slow down. i bought a big mac computer for my home last -- i couldn't tell you in a million years what chip it's running, and whether it's x percent faster than the prior generation, tim. >> i think for the regular ipad, i think you're create about that but for the ipad pro, these people don't mind spending more money, and there will be a lot of excitement that this is going to be in that device this spring >> steve covac, your thoughts?

>> the ipad is more like a mac than anything else they literally put the same chips into the ipads, if you want a mac but with a touchscreen you go ipad. if you want a regular mac laptop, go with the macbook or one of the news mac desktops that's what they're telling you, the lines of distinction between they products are blurring each more, you can use a mouse with your ipad, so that's really interesting that they're saying if you're going to spend $1,000, you have a touch screen, go for the ipad pro you don't care about that, you go with one of the new macs. >> i want to turn to the podcasting announcement. spotify shares went to session lows after this, but they seem to be up against stiff competition. what are the details that you

think matter for investors how important is it for apple to do well in this business. >> if you think about apple's story not that long ago, it really was about services, the non-hardware that created a multiple podcasting has become an important format for advertising, an important way for consumers to engage, so i think apple's efforts in podcasting, advancing the effort there, as well as the 4:00 and the video front, you know, it becomes each more important. >> just to hammer down on this for a second, $167 price target. we have seen a lot of speculation about this, what has to go right for that to happen and how headwinds need to go away in order to achieve that? >> a great question, kelly in my pin, the biggest risks is increasing the corporate tax

rate when you think about what drove the stock 12, 18 months ago, it was the ability to buy back more shares in my mind the potential for higher corporate tax rates, that's the biggest risk, but going back to my view that unfortunately the pandemic is a multiyear event, we'll want to use as much of apple's products as possible to get through this, a lot of working and learning remotely i think that works in their favor. that's very interesting. tim higgins talk to me about the corporate tax rate, and also, if you wouldn't mind, roping in a thought about the upgraded or revamped apple tv and how significant is it to apple's performance? >> yeah, well, apple and taxes has long been an issue and they have faced scrutiny. as you look over the corporate

landscape, there's concerning about that rate getting higher i think one of the big takeaways for ta-da is the commercial you saw for the second season of "ted lasso." for some people that's the big product announcement, that this thing is coming soon the actual device, the new remote control, it kind of underscores apple's physical device in the world is not as exciting as these kind of devices. >> all right, sir. thank you very much. we appreciate the panel. coming up, we'll take a look at the stocks dragging us lower today. you can see they're about 3 1/2 in boeing's case plus it is 4/20 and marijuana's unofficial holiday pot investors haven't had much to celebrate recently. congp nas,king in on canbi mi uon "power lunch.

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well, you have red arrows across the board the dow is now off more than 300 points let's bring in bob pisani to tell you what's happening. >> good to see you, as always. not a lot of concern, we're up 5% almost on the month, down a

couple days in the road, but it's very sensitive to commentary on earnings we had scott kirby on early, very enthusiastic about consumer travel, but the overall guidance was not terribly exciting. elsewhere, dow movers, a lot of earnings out, johnson & johnson, they narrowed their guidance, that was good. ibm is always a fairly low bar to get over, frankly, but they did all right. they affirmed their full-year guidance boeing had big management ann announcement the cfo is leaving nighti had a down grade from citi citigroup. nobody has come out and set we don't have any visibility. dover, one of the big global industrial companies talked about improving demand

conditions that's the magic work. lockheed gave slightly higher guidance, though it's not moving the stock. united, philip morris, harley-davidson the other day raised guidance, so there really a lot of concern about the two-day drop not really, you can see it in the vix. we are at 16, 16 1/2, now just a bit higher that's not much. believe me in the last few days not a lot panic. we're peak earnings growth, we are at peak nick news, and perhaps overall we're at the peak reopening or peak optimism about the reopening going on that's a bit of an issue for the market, but we should have these problems overall guys, back to you. as companies begin to issue more -- more guidance, what worked last year might not be working now.

the tick-hef in nasdaq, for instance is a laggard of the averages listen to this >> then there's some valuations discrepancies in the overall market i think the big fang stocks are attractive we don't own apple anymore we should have kept it, but i think they're all fine >> mike labellea is with us, and eric cnewtson, welcome to both o you. all of these peaks with some of the big tech names could be opportunities? >> we do think there are areas of opportunity, but probably not from the tech sector right now covid has been completely unique to the market. when we think about the three stages of recovery, the lockdown

trade was really a -- was where there was numerous amounts of commentary about wall street being detached from main street, because many of these companies benefited from the lockdown measures, such as technology and many of the underlying faangs. now we're getting ready to starred in the third leg we're talking about peak growth, but the idea here is this reopening is just getting started. we just had a major milestone with 50% vaccinations in the united states. that number will only get better in the united states, and europe is only a couple months behind this rally will probably cull from cyclicals more than tech trades. >> eric, which camp are you in >> i agree with my colleague's

comments we see some areas of technology that are benefiting from the reflationary position where we find ourselves in the economic cycle. for example, we're overweight semiconductors with a short against the nasdaq funding that position think of it as being overweight old tech also think of it, you knee, with us considering semiconductors like the new copper in this expansion, so we're looking for ways to play this reflationary and cyclical reopening, where where he can get away from some of the richer, higher valued areas of markets we're also playing traditional commodities, by the way, as an overweight, to take advantage of where we are in the cycle. >> it's an interesting point >> one of the really big risks to the market is do we overheat

and did inflation really pick up inflation is going to head up. the fed has told us inflation wants to go up, the question is does it become unanchored? rates will probably continue to drift higher what that does is pose a big risk to more duration-sensitive sectors out there, particularly like technology. when you this i about technologies or some of the more valued -- their earns are much more discounted out significantly far into the future, making them much more sensitive to potentially changes in inflation as well as -- so, again, thinking about that risk, the value-oriented trade right now seems to be a much clear are picture. >> sup, eric, something you would agree with or would you stick with technology?

there's a lot of different sectors where you can find these value names. maybe some are less attractive than others. where we're looking now is areas highly geared to this next stage of reopening so focusing on companies that are geared to rapid acceleration in earnings associated with as much as, for example, so the kind of beyond consumer spending and now consumers getting back out and engaging so we're long a basket of reopening stocks respect short a bask of stay-at-home type of stocks by the way, these are still some of the areas where the valuations are the most attractive >> fair enough guys, thank you both we'll leave it there well, it is the christmas of cannabis today is the unofficial holiday for weed as legalization spreads, more and more states have reasons to

celebration, i suppose 'llo at the business of marijuana, when "power lunch" returns. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. with a bang, for smarter trading decisions, energy and change came to every part of our universe. seismic or small, it continues.

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unofficial holiday for cannabis around the globe as the pot grows into a multibillion dollar industry, could there be more to celebrate on this 4/20 than normal frank holland has more frank? >> hey there, tyler, the forecast is a $24 billion market, making pot one of the fastest-growing u.s. industries and multistate operators that have the right to sell the only way to invest in those trends the ceo of cressewell labs believes it's headed for a -- >> that's trying cannabis for the first time what you're going to see here in the coming 12 to 24 months is this convergence >> reporter: so, what are you getting when you invest in u.s. cannabis the top u.s. stocks, they more than doubled the revenues of the

top canadians stocks the pandemic, it really boosted recreational use still, two thirds of the u.s. markets is medical marijuana though that's projected about 50/50 in the next few years. cannabis flower is still the most popular way to use. covid is widely seen as the biggest catalyst for more state and even federal legalization. >> this kind of tax revenue, this job creation, this organic economic engine, and we think it's too trong as to say no to we think this is the great american growth story, this is what it's about, new job creation >> reporter: now, if federal legalization happens, u.s. producers are expected to which an advantage over canadian producers, because they already have dispensaries, growing licenses in place here in the

united states, but there are question being valuation many annual it'ses say enterprise value-to-sales, that's the best way to value these companies, because so many questions remain about profitability, even the need for cap ex investment going forward. >> i see the economic argument i've asked a couple executives about there. how do you ensure that with all the rely laze there are, that weed does not get into the hands of people who are too young really to handle it? >> well, you know, tyler you and i were anchoring together when we spoke to the ceo of green thumb. i'm not speaking for him, he gave an answer i don't know if there's a way to keep it away from young people they have access to it in the illicit market right now i don't know if legalizing it deters them from the illicit market >> frank, thank you very much. next on "power lunch,," a

single new jersey deli has $35,000 in sales, pretty good, but valued at $100 million in because of the tailor-made ham and cheat. cheese

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here is your cnbc covid update this after european drug receipt lators noun there is a possible link between the shot and a small numb her of blood clots, but the benefits outweighed the risks. >> i think it's important to know that safety is the utmost important and regulators are motivated by the same ambition we do have strong acquisition in the benefit/risk profile and the astrazeneca vaccine has also been linked to the same kind of rare blood clots when plex ko's -- you are now up

to date. rahel, thank you very much. the official release of ios 14.5, an important software update we've been waiting for is coming next week, including the new privacy features that would require developers to give users a choice of whether they want to be tracked by the apps they are us using. again, ios 14.5 is coming next week kelly, back to you. >> josh, thank. markets are under a bit of pressure right now, the dow near the lows of the session. very significant loss there. we haven't seen that kind -- the s&p 500 is off about 0.9% or 37

points s. nasdaq is limping, but the big laggard are the small caps in the russell 2000, down 2.5% energy and financials the worst performing sectors oil is down about 2% it was one year ago today that crude dropped below zero for the first time ever. remember that? as low as minus $37 a barrel after the pandemic created a panic over cratering demand and the realization that a supply glut was coming. take a los angeles to that moment >> look at the stunning sell-off, folks, in crude. that is what we are following, something we have never, ever seen before. worst day in history, hitting, believe it or not, just a penny on the makon track, a record low, as that contract gets set to expire that the may contract went negative, negative now by

more than a dollar. >> it's been a wild ride since then, especially leaving my kitchen. dom chu has more. >> certainly not the cooking oil that you had in the background there. i was here that day, listen to go that report, watching the markets from these monitors. you mention that $37, 37.63 closing price. we got down past $40 a barrel during intraday trading there. so wti crude a year ago minus $40. you did see here roughly about $60 now, so we're talking about a $100 swing over the course of a year you can see there, the energy sector spdr, up about 43% over the past year so it's been underperforming

it haddic underperforming the better part of the last 12 month. as for the outperformers, in that one-month span, since the recoveries from those negative price lows, it's been hall burting, diamond energy, and marathon the single best performers now, of course the most consequential of exxon, mobile and chevron, the two biggest stocks in the s&p energy sector. i mentioned the 43% gain over the last year, exxon is up 34% chevron up a mottest, so yes, underperformers. that was a crazy day for all offer here >> in some ways nice to have it in the rear-view miro. it's also been the rush for@leisure. gap says the trend is here to stay they are expanding athleta to

canada retail stores will be launched this fall. mary beth 4r0uden is ceo of alt l -- athleta. >> thank you for joining us to talk about the expansion you certainly are not the only retailer that's tried to expand into canada, but not everybody has been successful why will you be successful? >> i think there's a lot of ways we will be success elf in the market first of all our offering and positioning. we've done a lot of consumer research in the canadian market, and definitely feel like there's a desire to have a new brand that's really focused on, you know, performance lifestyle product and mission driven

we are enter a market where our sister brands have existed for 30 years we know a lot about the customer we have a customer file we can leverage we also have a distribution center in ontario, so lots of reasons to believe we should be successful in this market. kelly mentioned competitor lululemon there in the introduction to our segment. of course, vancouver is where it's head quartered. they also have a men's line that's been very successful. so far just focusing on women and kids why not men? >> you know, that's something we think is a great differentiator for our brand. we are focused solely on women and girls. we think that really sets us apart. we talk about being for women by women, and just really understanding who she is, what her needs are.

so that is something that we think is actually an advantage for us sales have been very strong for athleta, though gap inc. has recently told investors it hit a billion for sales for athleta during the pandemic, which is quite a milestone, but to pinpoint a goal of doublic that by the year 2020, is a pretty hefty target how will you get there >> yeah, we have a number of ways to get there. starting with our product, we have really versatile product that serves all of her needs, whether it's working out or working from home or going for coffee so we think just growing our product and meetingal of her needs for our offering is a key way we will grow we have introduced categories

recently, introduced masks during the pandemic, performance lifestyle product is a really big focus for us, so product is certainly one area we now have over 500 styles missed in in sizes, which i think is great and will continue to grow grow for us, but also brand awareness in the u.s., so we have a big opportunity to bring more new customers into our brand. it's one of the reasons we're entering canada, but we're also, you know, continues to extend our-to-store base as a way to bring in news customers and gross sales. in addition to really focusing on digital and omnichannel, we have a highly growing e-commerce business, a large penetration, over 60% of our sales are online and we're focussed on offering our customer options, about it's through our 200-plus growing stores or online channel, or other ways we can connect.

mary beth, it's kelly back here lululemon is piloting a program where they're alluding to just how damaging closing production can be for the environment obviously we have seen the growth of the secondary platforms where people can give the garments a much longer life. how can, especially athletic wear by optimized? >> we are thinking a lot good that we do have a partnership with threadup in the u.s., but also, you know, we are a b-corp organization we're certified since 2018 we're a force for good for the planet and people, as well as driving profit so we're constantly thinking about how can we, you know, create more sustainable options for our business, for our employees, our customers certainly this is an area where we're paying a lot of attention. >> very quickly here, before we go, mary beth, obviously all of

us love our@leisure, but what if people are just craving that dressing-up outfit we've had heard retailers saying we are selling some dresses, maybe even high heels. do you think there would be a reversus back to what we have missed out on? >> i do think people will be looking for versatile product that is, you know, smart urges has smart styling to it, but i don't think they're going to want to lose the comfort we offer all of it, you can be comfortable in the products for the fabrics that are sustainable, beautiful products, but also they're highly versatile. you can use them to go back to work and feel dressed up and put together i think the combination is the secret sauce. >> wonderful thank you both for joining us today. we appreciate it very much >> thank you. to the bond market we go rick santelli is tracking the

action at cme. hi, rick >> hi, tyler yields are acting a lot like stocks today, acting a bit heavy. as a matter of fact, as you look at the 24-hour chart, what goes up quite quickly came down preopening in new york, we were hovering around 163. you can see we're now down half a dozen basis points open the chart to three days, and you can really see it's just a failure to hold above what we've been telling viewers has been an important technical point, open the chart up to the all-time low yield close in august, and you can see that we basically have gone up, other than this month. find me another area on that chart where the slope is going down this month is definitely acting different. traders are very cognizant of the fact of what's happening in not only our treasuries, but in bunds. they were just yesterday trading

at the best levels since june, and boy, did they reverse quickly. finally dollar index down over 2% just on the month to date and the euro currency is up 2.7% to date. let's go all the way back to march of last year, because it looks to me like we're going to close at the weakest level since early march. tyler, back to you. >> recollection, thanks very much still hayes, dow at the lows of the session, as stocks retreat from session highs we'll have more on the sell off, financials and energy, the big laggards there plus netflix reporting results after the bell this afternoon. the question is always, how can it keep adding customers when it seems like everyone already has it

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welcome back the nasdaq is down 1.25% let's get to seema for "trading

nation this is the first faang stock to report and do set the tone for the rest of the names mark tepper, and gina sanchez are with us. we know the pace of new subscribers is expected to slow. i guess the question is be how much and how the stock could react. >> the expectation is it could slow to about 20%, that would be the slower quarters in eight quarters, but that's already baked into the stocks. i think their big bet on orange is paying offer, and that's one of the reasons they will continue to add to subscribers while subscriber exhaustion is starting to get high, and you're seeing cancellations of folks who don't want to maintain multiple accounts. >> mark, there's competition, i

know you own shares of netflix, but there someone thing that reed hasting could say something that would make you less inclined. >> if churn is higher than expected, that would make me less inclined. when you look at netflix, it comes down to subs added, churn and free cash flow the one thing that drives all three of those metrics is obviously content like gina mentioned, both quality and quantity when it comes to quality and quantity, seema, i think they don't have competition i grabbed my remote, checked the cable service, and they all had nothing, i ended up back with netflix once again it's the go-to service in people ace living rooms by a lot. >> content is king

gina and mark, thank you be sure to check out our conversation on bitcoin plays on cnbc.com tyler, back to you. still ahead, as we head into the close, it's energy and financials worst performing sectors right now. we will have more on that. the $100 million deli, yes, a company with one delicatessen in new jersey it's traded publicly and has a $100 million market value. the story only gets weirder from there.

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welcome back, everybody. time now for the story of the $100 million deli. david einhorn mentioned it in

his letter to clients as an example of the crazy stock market these days. the deli is called hometown international or the stock is. it owns only one small deli in a new jersey town called paulsboro. despite only $35,000 of sales in the past two years, the stock has soared, growing its market cap at one point to more than $100 million hometown is also the principal and wrestling coach, the ceo is, at the high school the cast of characters gets even stranger from there. dan mangun has been digging into this company and its investors who are the big investors here and what is their background like >> so the largest investors here appear to be both -- or in addition to the ceo, paul marina who is head of the high school

wrestling team, there are several entities, several in hong kong and the other in macaw, china they each have the same address. there's also the father of the chairman, peter coker, jr. peter coker jr. is his father and he owns a good chunk of shares and lives in north carolina he controls another entity out of north carolina that owns shares with his business partner in another venture called triant capital that has a consulting deal which pays him $15,000 a month. >> so how are the cokers, apparently big investors, the chairman of the company, get hooked up with a wrestling coach principal and investors in macaw and taiwan -- or hong kong, excuse me. >> macaw and hong kong that's the $100 million question here what i found out over the weekend is the nexus here seems

to be, a guy named james t. patton who used to be a stock broker before he was barred from being a stock broker who wrestled in high school with paul marina, the ceo of this company who again is principal of a high school they're wrestlers together, they're friends on facebook. patton was in the finance industry, he was a stock broker. he's barred for various misconduct but he now works for an entity that is controlled by peter coker sr. and he worked with peter coker sr.'s partner, a guy convicted a decade ago of an illegal campaign contribution scam involving the former governor of north carolina in that contribution case a decade ago, the same entity that now has the consulting agreement with hometown international was used basically to create sham consulting deals that obscured illegal contributions that were going to the would be governor.

>> so what i really want to ask is which character is leo dicaprio going to play in the movie of this. but how the hell does something like this happen with a company that has $35,000 in revenue over the past two years grow to $100 million in capitalization? how the hell does that happen? >> that's what everybody is asking i think there's two questions here to your point how does this happen based on information that we've seen, there's only about 60 shareholders in this company so i don't think it's like gamestop which a lot of people are comparing it to where there's this irrational exuberance and everybody is piling in because of something they read on reddit. it may be -- it's a very, very thinly traded company. so it may be the only shares being exchanged are among people that already own them. it's not institutional investors. it appears that these shares

might have been passed back and forth and boosted the price, right? i wrote the other day that paul marina was worth -- just his common shares, which are a mere fraction of the other shares he's entitled to. he owns 1.5 million common shares, that makes him on paper $20 million on paper but i don't know that he can sell that today. if he went to the market and tried to dump that, i don't know if he can sell that, so that's number one the other thing is, is that there's a lawyer who is involved in this company who was involved in a shell company scam years ago where he created companies that had no ostensible value. >> it's a deep and complex story. there's a book in it for you, dan. thank you for bringing it to us. >> my pleasure >> we'll see where that one goes. stocks are falling for the second straight day. the dow is down more than 350 points it's down 377, close to 400 as we slide into the final hour of the day.

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we've got about 45 seconds before we hand it over to wilf and sara, but right now the dow is slumping. it's down 1.13%, below 34,000. the s&p 500 also down 1% nasdaq down. look at the russell small cap stocks really taking it hard today, off nearly 3%

there you see them down 2.69 banks one of the stories today, kelly. >> often when the russell underperforms you think the financials are the reasonable suspect. we'll hear what citi's ceo has to say in the meantime it's been a pleasure to be with you. >> we get to sit together for a change. >> a little bit back towards normal "closing bell" starts right now. >> thank you very much welcome to "the closing bell," everyone, i'm wilfred frost along with sara eisen. stocks lower and losses are accelerating the dow down 315, the russell 2000 down 3% earnings remain center stage with reports from j&j, travelers and p & g. reopening trades are taking a step back. airlines on the back of united results and cruise stocks are sinking as well.