it is 5:00 a.m. on cnbc. 5 @5, futures higher after tech stocks got hammered on tuesday we'll show you the stunning loss of market cap you've got to hear to believe and we're again in the green because of yellen's new turn secretary janet yellen reversing that her rates may have to rise. it's not all about rates investors also on edge as china

gets more aggressive over taiwan, with lit really more planes flying over the nation lately a sad end in chicago as the trading pits of cme close for good and the new rbi throwing a wrench in the carmakers' auto plans with how many go back to gas. it is wednesday, may 5th, this is "worldwide exchange." well, good morning good afternoon and good evening and happy cinco de mayo, from wherever in the world you may be watching happy hump day as well, i'm brian sullivan let's get to it, china fears sent stocks sinking in a big way. big tech hit big time. the nasdaq down nearly 2% on

tuesday. but it looks like right now we should have a slight rebound dow futures up 90. nasdaq futures, they're the ones to watch, up 60 points right now. now, let's focus on what happened yesterday when nearly every big tech stock, and the deal of the day, only the one you'll hear here on "worldwide exchange" and it's ugly. look at this this is yesterday. apple lost $78 billion in value. amazon, nearly 38. microsoft, 30.5 billion and google a relatively slight $25 billion market cap loss. if you're doing the math right now, don't worry, we did it for you. the total combined market cap loss of the big four was $171 billion. on tuesday, that's bigger than costco that's about 50% bigger than the entire corporation of starbucks. so what did well on tugs well, there were some names.

the boring old materials companies pop, names we never talk about like sealed air, martin marietta and vulcan materials, they live long and prosper. these are all infrastructure plays by the way is the market telling us something about maybe the infrastructure deal that we don't know already we'll have to wait and find out. certainly the infrastructure stocks acted like it well, inflation is a big story and it's a bond story, yields ticking down right now yields at 1.6% as always, we've got to talk about the cryptos. because yesterday, even as stocks sold off, dogecoin, the crypto that was begun literally as a joke continued to power higher look at that dogecoin is up another 18% right now to 66 cents. it was one half of one penny a couple months ago. wow. bitcoin up 1.5%.

ethereum up a point higher dogecoin, seems like those traders single-handedly will, push, prod, whatever that crypto to a dollar. it was less than a penny literally a couple weeks ago all right. let's go now overseas and take a look at the early trade in europe not a huge trend here. we are seeing a bit of a bounceback, germany up 1.3%. france as well, in fact, gained a little steam, uk up over 1%. overseas, a developing story and concern around china and taiwan. beijing taking steps to increase its military pressure on taiwan. carrying out regular amphibious exercises and flying over the nations. those provocations ignored through the taiwan strait. there are growing concerns that china could carry out a

calculated limited military engagement in the strait or take direct action towards one of the taiwan-controlled islands in the south china sea. through all of this chinese state media on monday slam a meeting last week between top u.s. and taiwanese diplomats based in france. it's a growing geopolitical concern to watch, maybe, the greatest geopolitical threat in the country and world right now. that was not enough, treasury secretary janet yellen doing a little damage control on her rate comments yesterday and a bit of a u-turn. yellen saying she's neither predicting or recommending a raise in fed rates this after suggesting earlier in the day they might need a raise to go up to keep the economy from overheating. the market, of course, listened to the current treasury head and former fed chair let's bring in adviser mark avalon you had the china/taiwan story

in the morning sent futures down the yellen comments, the u-turn, what do you ascribe to the big selloff in tech? is it china? is it rates? is it inflation? is it "d," all of the above? >> i think i'm not sure it reflected that faang selloff, certainly, yellen did, valuations did and the infrastructure trade and a rotation into value. remember, these faang names, these tech names are so big that when there is a selloff, there's a huge amount of money that has to go somewhere, the sheer size, you talk about how dominant these top five or six names are. when there's a selloff of that magnitude of stocks of this size it can buy a lot of midcap value and traditional value names and things that the market is rotating into it so, i think that's what you saw yesterday. and, yes, the infrastructure

bill is going to happen. just not sure what the size of it is. but when we get something like that, these material stocks which are already booming and the demand in the construction side of our economy is so strong, you're going to have an exponential move into those sort of names >> that's right. and let's not forget that when stocks sell, that means people are raising money. they sell something they probably made a lot of money in which means they've got cash they can either buy something else or put the cash literally in their sock drawer, tlo theoretically, i guess we talked about rising rates mark you and i talked about your likes, the financials, the pncs, the rates rising does that make you like those companies a little bit more? >> that's a great question and it's a question of if it's a modest rate-rise -- look, stocks have historically done well

during low, but rising rate environments and i think this mere notion that rates are up, that's going bad. that's not true. it's when they skyrocket up or where they have historically gone to a point where bonds and alternatives become attractive the slope of the yield curve, the rising rate, that both helps bank margins and the names you mentioned, truist was one, they benefitted from a recent merger and i think there's going to be a lot more of that we had almost a standstill of bank mergers in 2020 because there was no visibility on earnings and there was gross uncertainty about what was really on these balance sheets now that visibility and earnings and credit quality looks to be good, you're going to see a lot of banks marry-up. they've got to reduce the expenses they've got to compete with the mega banks, the online deposit machines that are growing. so, i think the rate environment

right now is very strong for banks. and if we're going to talk about a movement into the value side, i think they're going to be a prime beneficiary. >> what about the payment companies? you know, we talk about the banks. but we look at an economy. we did a story about caesars i predicted that vegas will be sold out by labor day. apparently, much of vegas is already sold out the consumer is back in a big way. they're going to swipe their visa they're going to pay via paypal. these are names you liked in the past do you continue to like them that the consumer is about to bust out like cicada brood x in the coming weeks? >> yeah, certainly with touching things when the whole pandemic, cash and currency have evolved paypal is a pullback here.

i look at that as an opportunity it's almost in a bear market territory, i hate to say that, because you can see the chart, it'sa sustained chart but creates opportunity now that momentum is taken off. visa, mastercard, there are going to be innovators, i know there's disruptive technology out there but it's a few years away and the payment stocks are poised to take say reopening and trends that consumers make purchases. >> yeah, vegas in many ways sold out. you're going to swipe that card for the plane, casino, hotel, restaurant after you lose all of your money mark avallone, mark, a pleasure to have you on take care. >> good to be here, brian. >> take care now, let's get to this morning's other top headlines. a sad story in chicago for history. the cme says it will permanently close most of its trading pits

in chicago of course, the exchange already shutting a number of those pits in march of last year. think about this, some of those pits we know, yes, displaced by technology and bits of relics have been around since the 1800s. also, spacex says it has received more than 500,000 preorders for its starlink satellite service. they received 900 preorders. elon musk tweeted while starlink is designed to reach out of reach places on earth the only places urban areas nestle offering you another alt milk option for your morning coffee the company is set to offer a pea-based milk, that's p-e-a

milk it will be only available in france, netherlands and portugals, apparently the pea milk capitals of the world who knew on that note, we're just getting started when we come back to "worldwide exchange," your morning's big money movers and one stocks proving to be a match for investors. plus, the president of sonic automotive is here to tell us how the boom in auto sales is benefitting his company's bottom line and whether people are starting to tune out of electric cars -- what and as we head to break, we'll look at some of the names in cloud computer hammered datadog taking the biggest hit it was down nearly 15% it's unchanged now no rebound there fastly, a little bit, all those names got crushed yesterday. dow futures, though, rebounding a biat3. we're back, after this

welcome back time for a check on some of this morning's big money movers three key stock stories you got to know about, ready here we go, first up lyft, shares getting a lift. the company posting a smaller than expected first quarter loss lyft saying it will deliver a profit on an adjusted basis in the third quarter, that's what

it expects in a strong rebound and activision blizzard. the video game easily beating forecast company raising its guidance as well call of duty, black ops, cold war sold more premium copies than expected. activision's candy crush performed better this time of year, up nearly 4% and stock three is match the other than of tinder and other dating apps better than expected first quarter earnings. match's ceo saying, quote, with the number of people getting vaccinated we can't help but be excited and looking forward to a summer of love it certainly seems like it's going to be. match, up more than 6%, investors loving that. still on deck, a wall street debut with a little hollywood star power attached. we're going to speak with one

honest company investor about that company, finally going public, honestly we're back in a moment, with dow futures up neay 0.rl10 these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate at scale are going with a smarter hybrid cloud using the technology and expertise of ibm. woo! you are busy... working, parenting, problem solving. at new chapter vitamins we've been busy too...

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today's rbi is doing the eclectic slide at least when it comes to some car buyers because, despite all you hear about nerve america going green and buying electric cars, like so many things, the actual

truth, the facts, a little more messy. and some people are actually going back to gas. check this out a study by the university of california davis found that a survey of nearly 2,000 electric, or plug-in hybrid cars in california about 20% gave up on their vehicles and went back to gasoline-powered engines the numbers were about the same for both hybrids or all-electric cars the reasons for going back were a few, but the big reason, according to the study, was the time it takes to charge the car and accessing charging stations. remember, many older electric cars have much shorter ranges than the newer cars and they need to be charged more often. carmakers who are pushing for all electric will, of course, try to find good news here and there is a bit a study found that about 65% of the households who gave up on their electric cars say they're likely to buy one again in the future maybe when charging technology

gets a little bit better but also, think about that stat in reverse it also means that about a third of those who have given up on their electric cars and gone back to gas, they they'll likely won't go back to electric. all very random, but interesting. and maybe a little scary for an auto industry that is telling everybody that it's electric and there's one way for the future but car owners in california may disagree random, but hopefully, interesting. let's stay right there with cars because sonic automotive easily topping expectations in the first quarter results which were out a few days ago, blowing past estimates as car sales boom the company is long-term very optimistic, saying it believes it can double its sales by 2025. that's only in four years. for more, let's bring in jeff dyke, president of sonic automotive jeff, really appreciate you joining us i love talking about cars.

you're based down there in charlotte. you know, i know you don't have a tesla dealership you have tesla used cars, i looked it up but you do have audi they've got the e-tron are you seeing a huge consumer uptake in electric cars, or is gas for now still king >> hey, brian, thanks for having us this morning. gas is king for now. electric cars is a small part of the overall business it's something fun for people to talk about, tesla certainly made a big slash in the industry. at the end of the day, we're talking about the business, for the foreseeable future, gas and hybrid electric are the much bigger play versus all-electric. america, being electrified is not there yet. we don't have charging stations all over the country, so, you have this sort of mileage issue in terms of how far the cars can go and so, we're not there yet. we're years away from that

it gets big play in the media but like your segment said earlier, we're a long way away from electrifying america and everybody driving electric >> this is huge, let's be honest, jeff, a car is likely the second most expensive thing besides a home that many people in america will buy. and there is a growingconcern if i were to go out and buy a new car or truck that is gas powered, is it going to have any resell value in seven or eight or ten years if everybody shifts to electric? by the way that could disproportionately hit those, and give our audience confidence, if they buy a car today that gas-powered vehicle could have some resell value eight years from now >> oh, yeah, we're years away from that. the consumer when they buy a car

there's plenty of resell value, two, three, four -- six years down the road. right now, you get out to california, there's problems in the summertime, electra you fiing the houses and keeping the electricity going. so we're just a long way away from that. certainly as an auto retailer, it's not something i'm concerned about. the manufacturers did it right we've got plenty of electric cars and we've got stations to charge the cars, then we'll start selling electric cars and we'll make that transition but we're nowhere near that level yet. and certainly not something that is on the horizon, three, four, five years in. >> your company is sonic automotive, not to be mistaken by sonic burgers behind your head, jeff, it ace echo pack. i don't think that's an accident i think you have a smart pr person echo park is your auto park.

used car sales are out of control. if you can find a good used car, the prices are up there. tell us about used cars. any indication of a slowdown and why you're so aggressively building out that echo park model? >> yeah, look, no slowdown at all. the last 20 or 30 years, 25 to 30 million cars sold in america. the business sis on fire we'll do over 105,000 cars this year by '25, we'll do 500,000 cars at a 40-point distribution network. echo park is on fire it's the growth engine inside of sonic automotive we couldn't be more excited about it we had a fantastic first quarter, as you saw when we announced our numbers. the second quarter is starting out great as well. and '22 is starting out fantastic, too we're very excited about the brand and where we're heading.

>> is that the model, as far as buying cars online -- asking for a friend -- people have had problems buying cars online. maybe what you see is not what you get. that's your model, have a stripped down center to buy online, but have an actual place with actual human beings, where you can take it in for service, or talk to them about the car or literally or proverbially kick the tires. is that kind of the model? >> 100%. it's a hybrid model. we want customers to do some things online but not the entire transaction. we do give them the option to go as far as they want. but coming into the store is still critically important it's the second most expensive thing that a consumer buys other than a home. they want to come in the store and compare it to other automobiles. that's out model, we focus on a great experience at echo park we only sell cars under 50,000 miles

and we're $2500 from a retail perspective from our competition. that is our mission and our success. >> jeff dyke, sonic automotive and echo park. jeff dyke, we appreciate you coming on, talking about car sales still en fuego jeff, thank you. >> thanks for having me. >> you're very welcome still on deck, one of my predictions for the year is las vegas will be sold out by labor day. boy, was i wrong if you want to watch me eat crow, you will coming up next, it has to do with caesars whose stock is up 7% the stories go together, we'll tell you why dow futures up 95, bitcoin up as well and 'll unweboce back on this wednesday. and we're back, right after this (♪ ♪) a fashion first, (♪ ♪)

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pick tech taking it on the chin in a big way as some of the biggest names got slammed on tuesday. webbush's joel polina is here to lay out whether trouble is ahead or you're buying on weakness are you in a new york state of mind, more like moving out. call it the billy joel trade as people are packing up remember the hottest stock in the world about 20 years ago? if you don't it was doughnut maker krispy kreme, now it's back and looking to go public

again. it is wednesday, may 5th and this is "worldwide exchange. ♪ welcome, or welcome back, everybody. and happily 5th of may, cinco de mayo, good to have you on the program this morning let's get right to it, on a day after concerns about growth, concerns about china and taiwan, concerns about interest rates sent stocks sinking in a big way, and none bigger than big tech on tuesday, the nasdaq fell nearly 2%. the good news, that selling is not looking like it's continues right now. nasdaq futures are up 70 dow futures up just about 100. the stat of the day from tuesday and it's ugly is the biggest of the big cap tech getting sold off in a big way look at these market cap losses, all right? apple lost $78 billion yesterday. that's just yesterday.

amazon, 38 billion microsoft $30.5 billion. google $25 billion don't worry about the math we did it for you. the total combined market cap loss of those big four, about $170 billion yesterday, put that in perspective, that's bigger than costco and it's about 15% larger than the entire corporation of starbucks. in one day wow. we'll get more on this with joel colina of webbush in a few minutes. in the meantime, we're going to play a billy joel song about this next segment it would definitely not be "new york state of mind" it would be "moving out. as robert frank are here to tell us there are a lot of really rich people in new york, connecticut and others looking to do what that song says, i'm

not sure anthony who works at the greshry store is saving his pennies for sunday but there is robert, i guess a flight frenzy. >> yeah, brian who needs a house in hackensack when you can get a condo in boca, as billy joel referenced >> love that >> many are moving to another state for tax reasons. a survey by spectrum group of people worth $25 million or more found that 53% are planning to change their state of residence. the top reasons, better climate and taxes. the number of millionaire movers has doubled since 2014 new york state just passed a tax hike that coulded afurther pressure new york lost 150,000 households to migrations last year that was more than any state and doubled from the previous year a research by steven whitaker

found that most of the last decade the flight from cities was from lower income neighborhoods but in 2020 last year, that actually reversed with the largest flight from cities coming from the wealthiest neighborhoods despite the numbers and anecdotes that millionaires moving to florida the tax rates tell a different story income tax revenues in new jersey, connecticut, new york all coming in stronger than expected thanks to the wealthy and capital gains and this incredible stock market. in new york state, income tax collections came in $3 billion higher for the latest fiscal year brian, luke at california, i think it's much larger over $6 billion. some of these states running a surplus into the rainy day fund. either the wealthy haven't left yet, or plan to declare their tax residency somewhere else proper the stock market has just been so strong, at least for

now, it's making up the difference for those wealthy people who have left >> well, so leaving, when you're really rich is kind of a theoretical exercise, right? you said for tax reasons is there a indication people are leaving for good, i.e., selling what they've got and heading away or keeping what they've got, but making sure that, you know, 50.1% of the time they are in florida. or somewhere else. but they still have a place in new york and new york will come back or they're gone for good >> yeah, it's really hard to tell because, a., we don't have up to date numbers on how many people have changed their residence. and b., if you look at things like the real estate market, like, as you just said, a lot of those uys, you know, when you have enough money to have three or four places why bother selling your place in new york for now. let's buy a place in florida let's stay there for now see where things go in terms of

the economy, in terms of where your social network ends up, that's a big factor and then see you later. i think a lot of these peopl are still in transition, brian, figuring out where they're going to go. and that's why we haven't really seen it yet on the tax rolls >> yeah, but we certainly might as well find out what happens and hopefully some of them will hang out a little bit, robert, in new york, so we can get the restaurants going, even though 11 madison park where i know you went every day is now vegan. >> vegan, yeah >> things are changing vegan. >> yeah, all we need is people >> all we need is people well said. new york is going -- maybe not at the level, l11 madison park going all vegan. robert, thank you. let's get back to the markets, a big losses on tuesday, webbush's head of

security and technology, joel colina joel, good to have you on. we showed in the intro at the top of the hour, apple, google, microsoft, facebook, amazon losing $170 billion in combined market cap in one day. who are the sellers? and why were they selling? >> yeah. i mean, you know, reality is that tech problems, really, of today aren't really much different than what's been plaguing the group all year. investor focused clearly has shifted since november 9th and we got the additional pfizer vaccine headlines. but they remain fading and high expectations and difficult comps in the quarters ahead. elevated multiples and rising yields which obviously yellen and the fed have made a lot more news on where interest rates are heading. you've got the four major issues

for the headwinds for the tech sector they are going away, there's many -- not many, clearly an increasing camp that spectacular q1 results that we're seeing, it it's been a massive disappointment for the tech sector to say the least. you know, anything spectacular, a blowout has generally been dismissed. and any company that's missed, it's been absolutely punished. the tape is telling us there's money going into other pockets the market as you touched earlier on your show, xle, energy feels like a coiled spring. and material stocks continue to work as well so, we're seeing massive rotation which seems to be the number one driver on these big moves. >> amazing, right? oil prices on the rise maybe energy is the new technology tom lee and fun strap putting

out daily notes, excellent, by the way, showing how money does appear to be flowing from apple to oil and gas i mean, is that possible do you thing the long-term trade in thee tech names, joel, which, by the way, have made a lot of our viewers and listeners a lot of money in the last few years, is it final with over for good i mean, the big returns. >> maybe in the near term. tech is always going to remain the most overweight sector it's still the leader in terms of disruption and just generating probably the most upset over a longer period of time you take a step back, the nasdaq has underperformed the s&p by 600 basis points this year and still it's outperformed the s&p by 15% off of march lows in 2020 outperformance has still been there. and just with the focus on vaccine progression, j&j recovery and overall, global gdp

recovery, with other sectors becoming more attractive, especially with the consensus with rates now heading in the opposite direction we all know that low rates and a very accommodative fed policy has been the number one driver in some of the moves in tech over the past decade, we're noticing the pause in that trade. tech underperforms but over the longer term, it's not abandonment but a lesser part of our portfolio. >> jamie dimon of jpmorgan saying he's done with zooms. i'm finished no more zooms. david solomon of goldman sachs says get back to the office. the point is the work from home -- work from home is probably coming to an end for much of our viewers -- is the work from home trend coming to an end or is it already over? >> i think it's already over these stocks are still well their lowest levels from a year ago. again, they produced outside

returns to say the least if you look at whether the pelotons, the zoom media, the docusigns, even a name like paypal, these stocks were huge secular winners from covid the stock prices reflected that. and now, a lot of these charts look absolutely broken i think you have to keep an eye on cathie wood and other ark funds. 30% off the ties we know the outside performance last year was driven by disruptive tech. she was early on that trend but adding to the losers on the way down and to me that's kind of a poster child for the 2020 momentum stocks. they've clearly lost all momentum, and you're watching investors trying to catch the falling knives and it's not working. and it's down and that's never a great strategy when the tape's telling you something different. >> well, it's got to be spectacularly wrong or

spectacularly right, i know a lot of folks told by the end of this year, they'll be back in the office five days a week. wall street maybe not the most flexible joel culina laying it out in the tech, thank you very much. maybe oil and gas is the new apple and amazon, who knows. let's hit other headlines, the judge in the epic game trial pressing the fortnite demand in apple's app store. the judge asking epic ceo tim sweeney for his call for apple to allow users to but third party software on its phones and ease of payment impact rules would impact the likelihood of developers who make software for apple devices. sweeney telling the judge, he could not lay out that potential impact vegas told out by labor day? that was one of my 2021 predictions. boy was i wrong. shares of caesars up nearly 7%

right now. the company saying weekends in las vegas are pretty much sold out for the foreseeable future it's the first weekend of may. wow. and krispy kreme looking to go public again the doughnut chain revealing it has filed with regulators for an ipo. the company first went public in 2000 then had to file for chapter 11 and was bought by j.a.b. holding by $126 billion. if you weren't around then, friends, trust me, krispy kreme was the dogecoin of the day. it was the trader's favorite stock before going bust. on deck, the president laying out a new vaccination goal 'llaitutorvey too conservati wel y o f you dow futures up 80. we're back, after this

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all in our app. expedia. it matters who you travel with. all right, welcome back. it's time for your daily covid vaccination update, 318 million doses delivered in america, 247 million of those have been administered 147 million have received one dose 106 million are fully vaccinated and 56% have received at least one shot now all of this comes as president biden has outlined some new goals to deliver at least one dose of the vaccine to

70% of american adults by july 4th. but, based on current trends, that goal may be very conservative in fact, at the current pace, could be liable to get 70% of american adults with at least one dose by the first week of june if not late may, unless we see a huge dropoff in that pace. all of these set goals you can hit. >> the honest company begins trading under the ticker h-n-s-t, it priced the ipo at 16 bucks in that range. that values honest founded by jessica alba is going public in an already busy ipo market this year let's bring in neil sequera, neil led the round on the honest company and formally served on the board of directors neil, pleasure to have you on.

why now? why is it time for the honest company to finally hit the public markets >> well, the earnest company is hitting on so many things that are important to what people want to care about today clean, treating employees and people right, and being one of those -- one of those companies that actually cares about what's happening in the world today >> does that make it a good stock, neil? those are good things, but is it a good investment? >> it is absolutely a good investment it's a special company that continues to grow and there's no doubt that there's actually so much head room here for this particular company look, i'm not on the board anymore, so i can say i think there's a special company that is here that means something to people

and i think we're -- >> well, talk to us, neil, about the history. obviously, honest -- i'm sorry to interrupt -- honest has gotten a lot of attention because obviously, jessica alba, a very bold face name there and the founder. but it's kind of had its ups and downs with regard to the markets. take us through that history and anybody who might be concerned about the investments, ease those concerns >> yeah, so a little bit of the history, the first three investors, jeremy and eric and myself all had kids at the time when we first made the investment and i think it's one of those companies where people actually care about what they're investing in and that's why honest is such a special business we had a little bit of a problem five years ago with some sunscreen because people thought that it was -- it was not where

it should be but that actually has all been resolved now, nick is ceo, and he's a great ceo and we're lucky to have him >> neilsequera of the honest company, it's trading hnst, $1.4 billion in estimation. neil, thank you for joining us have a great day and good luck, by the way >> by the way, the founders will be on "squawk" later on today. on deck, the great branch is here to lay out the names he likes in big technology. a reminder, subscribe to our podcast, apple spotify and other platforms. we're back after this. only one 5g partner offers unmatched network, support, and value-without any trade offs.

these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm.

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we've got dow futures up the selloff may not continue nasdaq up 67 there are tailwinds, tailwinds, not headwinds still in play, that's why he believes there could be a powerful rallin the back half. year, greg branch is founder of veritas financial. he joins us now. yesterday, listen, we showed it $78 billion market cap loss for apple alone in one day yesterday felt a little differently. are you a buyer on any of this weak jns. >> so, i think three things are emerging crystal clear from the last couple weeks of earnings reports. number one, inflation is certainly rearing its head in many of these earnings reports we're having heads of companies talk about the significant inflationary pressures building at all levels number two, there is a powerful back half earning surprise and

upward revision story. look at the magnitude, the sheer number of beats that we're experiencing in this quarter consensus is still way too low many of the estimates that we're looking at, particularly for the back half of the year are at 60%, 70%, pre-covid levels we've moved up the vaccination curve sooner than expected and the economy is rebounding much more quickly than expected. now, the third is more of a warning sign that we will have volatility over the next few months that inflation is spiking we saw yesterday with secretary yellen, even though she tried to walk it back, that is a change in posture, theed mimmediacy of the growth for tech growth and entrenchment for additional pools of money migrate back down the risk curve which would present near term volatility

but, yes, the back half earnings surprise, earnings revision story is impntact. >> but is that, priced in, that's the question, completely agree with the economic boom the question is, is the economic boom already reflected in the earnings which are pulled forward? >> i don't believe so. so what we saw happen from october even going back as far as preelection until now, we saw multiple correction, we saw multiple sectors trading at multiples that were historic lows the trade from then to now is about making up ground on the multiples. what i'm expecting in the back half while we're now at expected multiples is that the earnings numbers are wrong. and as the earnings accelerate and get adjusted to where they should be, we can keep the multiples where they are and still see performance. so, no, i don't think it's

priced in, specifically when you talk about specific stories that have unique tailwinds. >> where is the value, greg? leave us with some opportunities? >> absolutely. so if we are going to have a rising rate environment, obviously, the financials is opportune. we saw with results already with investment banking in markets has been robust. we saw with jpmorgan where it was 50% plus in those revisions. but improving that interest margin lists those, i'd agree i'll still favor those diversified names who have proven those other businesses are drivers. i look at the value sector not all of the high savings rate we saw was equally distributed across all eco-economical groups and i'd look at those that yield for retail which gained massive

share throughout the year that's what differentiates the walmart and targets from the rosses of the world. even with technology, where we expect a pullback in some of those last year, we're seeiiing acceleration >> greg branch, veritas financial. greg, pleasure to have you on. have an awesome day. talk to you soon >> yeah. >> you're very welcome like that, folks, the show goes by, boom we're leaving you with dow futures up 90 points nasdaq, cryptos are up "squawk" and the gang talking all about dogecoin no doubt for the next couple hos.ur we'll see you right around this curve. see you tomorrow take care.

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good morning futures they're bouncing back ever so slightly the dow's up, it did close higher yesterday, the nasdaq where we really saw the selloff. in fact, most cryptocurrencies are also slightly higher like bitcoin, dogecoin is soaring, up more than 16%. it soared yesterday. i saw it as high as 66, 67 cents, a dollar seemed impossible not that long ago and now almost within striking distance maybe. who knows. the biden administration out with new vaccine targets that planning pop-up and mobile clinics and urging pharmacies to take walk-ins, details straight ahead. plus, signs of a recovery from the pandemic. lyft shares, as more people went for rides