bg >> and jim cramer. >> pfizer. you have the whole problem of how do you value this incredible stream of covid. right now it's valued at four times the dollar i think that stream, give t eight. i think the stock has four points easy. >> thanks for being here "the exchange" is now. >> thank you, scott. i'm kelly evans. here's what 's ahead 800% mentions of inflation on earnings calls this quarter. no wonder. janet yellen mentioned potential higher rates will investors buy it? we'll ask. plus, dimejamie diamond wants to come back to the office. she's tired of zoom calls. we'll talk with the ceo of job marketplace. and hayward shares soaring as

surge in demand for pools surges we'll talk about the chlorine shortages hitting this summer and what to do about it. chu c dominic chu has the numbers. >> maybe not as hot as a jacuzzi but tepidly warm, you could say. trying to resurrect itself after that tech-based sell-off in yesterday's trading. this time yesterday we were talk about more red markets here. take a look at the dow industrials, up about 100 points, up about one-third of 1%, not crazy high but constructive s&p 500, 4,178 the last trade there. quarter percent for nasdaq gains. one key focus for many sflors this kind of inflationary environment, the talk of inflation has been energy. oil prices have rebounded sharply in the last year look at the energy stocks, though typically more leverage oil prices up about 41%. best performing sector in many cases on certain sectors in

time the spooe oil and gas exploration side of things up 64%. the commodity up about 168%. negative prices weren't that long ago, about a year ago look at nose now crude oil prices a huge one to watch. we'll stick with the commodity theme. thunderstormly i would highlight a big stock of the day in this case we'll show lumber this is the may contract it's not as heavily traded it expires next week it's a hair below 1,600, a record high for this particular contract it's also up about 360-some percent in the last year the july contract, the most active right now, hit a record it's around $1,500, though, 1,000 board feet that particular move shows an interesting dynamic. it shows that demand for lumber and lumber prices now and very close to now much highhigher in the future, those price drop. interesting dynamic.

the bosses get mad at me if i say backwardation. prices are higher for demand, not in the months in the future. >> key because it's not just lumber but a lot of commodities. it means investors don't think prices will stay this high if you're the fed, that's a big deal >> and interesting from a trading dynamic. if you are playing the futures and will roll into the next month's futures, you're rolling at a cheaper price there's a profit to be made whenever there's a roll for futures. something to keep in mind. >> that's what you're doing at your desk. >> yes >> thank you today's market reversal mirrors that of treasury secretary janet yellen's yesterday she had explaining to do after her comments sutsing interest rates might need to rise to prevent is the economy from overheating. she said i don't think there's going to be an inflationary problem, but if there is the fed can be counted on to address it. chicago fed president charles

evans took it a step further saying the fed may have a hard time reaching its 2% inflation goal adding, quote, fed policy is likely to be on hold for some time joining me, jill kerry hall and bob michael from jpmorgan asset management welcome to you both. bob, i haven't seen you in quite some time since the summer of zero rates during a pandemic are you still -- i mean in treasury parlance we call it bullish, in other words, do you think that rates are going to fall from here, rise from here and what do you make of all this fed speak the last day or so >> hi, kelly you know what, god, i love janet. she said exactly what we're all thinking, that given the current and expected rate of economic growth and inflation, the current level of yields is just plain dumb and the reason they're there is because that's where the fed wants them, at least for now

and, sure, afterward, she was reminded that she's a fed alum, she has to toe the line. evans reminded everyone. they still haven't yet reached their inflation target they still haven't recovered all the jobs loss, but i look at it like you're standing on the train tracks and there's a freight train coming at you. are you really going to play chicken with it or are you going to jump off the tracks >> we're at 1.6% call it on the ten-year the way you're talking, we should be over 3%. >> look, a good starting point should be at least 2%. zero real yield on the fed's inflation target of 2% until they start raising rates, it's going to be difficult to get too far away from 2% because you're tethered to zero percent in cash. but, yeah, they should start the normalization process with tapering, talk of the jackson

hole august meetings, and they should start raising rates i think by next year >> a good point about jackson hole still, this is way ahead of the time frame it's confusing because janet yellen herself and powell would seem to be so focused on this goal of making sure they don't choke things off too quickly, yet here we go let me put that to the side for a moment and come to jill. are you expecting sustained inflation when you look through the equity side of things? you know, not just, okay, we have some price pressures this year, but what do you see as we look 12 and 18 months out? >> right so we're not expecting a surge in inflation, but certainly you are seeing a big pickup in inflationary mentions right now. you know, the stat you mentioned earlier, what we were seeing on earnings calls is inflationary mentions overall are up 800% year over year and the average company is mentioning inflation much more so than a year ago and relative to history. so a lot of these are on the

cost side, you know, transport, input costs, where we haven't seen inflation mentions pick up as much yet is on the labor cost side so that, you know, if we do see higher minimum wages overall the wage drop going up, that could be the next head wind for companies and sectors like consumer discretionary, which is, you know, one of the most labor intensive sectors, and there's one we recently lowered within our equity strategy view to take a less positive view on that sector. >> that's a great point. i know you guys are looking at small caps over large caps and different ways to play this fr trend. it sounds like we're not seeing conditions where prices will keep rising. we know we're in a pinch right now, but maybe with wages keeping risings are we there or does it take time as you try to value equities, what assumptions are you making and are they at odds with the

fed? >> from an economic perspective we're still looking for core inflation to be in that 2%-ish range on average this year, an when you look at consumer price index or other measures in the next few quarters we'll be above that from a company perspective, for equities, you know, when we look at net margins, this earnings season, companies are actually so far able to handle these costs and price through. we're seeing margins rising. so this is something that companies that have pricing power we think are better positioned in this backdrop. companies that are much more labor intensive, if we start to see wages rise and i they lot of, you know, smaller companies, while they can be more labor intensive, this could be a backdrop if we're shifting from large companies taking share, low growth, low wages, a focus of the administration on small businesses and these companies

could be well positioned that makes sense bob, let's put a point on it what is your advice to investors here what should people do if they believe what you're saying that janet yellen is just saying the obvious? >> well, i think you're supposed to hide in the front end of the yield curve. so shortened duration. you're supposed to credit because credit spreads can still come in, particularly in the high yield space yeah, we'd like to all buy at a higher yield, but we can't there's a recovery that's accelerating and that's good for credit spreads and the emerging markets should eventually draft off of the recovery in the developed markets. so there's good value there in emerging market with currencies. >> even with all the rates going up, still some ways to invest around it. we'll leave it there bob michele, kerry, we appreciate it. shares of upwork are down today after stronger earnings. they connect to companies with job openings and thanks to the

pandemic, freelance work has expanded dramatically with more than 50 million people freelancing in the u.s the question is as the economy reopens, will freelancing be here to stay or do people revert to the regular corporate office jobs upwork's ceo joins us, haden brown. thanks for being here. >> thanks for having me, kelly >> i'm trying to think of what would i predict. i guess i predict this whole low yield economy is here to stay, the idea that people will be piecing together work themselves, that that's here for good maybe i'm wrong. tell me what trends you're seeing as things gently start to reopen >> certainly we've seen that people want more autonomy around when, where, and how they work that trend started well before the current pandemic with people shifting throughout the economy and that accelerated dramatically in the last year as more and more workers really got comfortable working from home and found that freedom worked for them and actually as more companies realize they could tap

into talent all over the globe to solve critical work that they needed to get done and really to close the skills gap and the talent needs they have, again, prepandemic. now as the world opened up for them and they could use their remote work skills to tap into talent everywhere in the world, this is something they want to do even after their offices reopen they want to tap into these everywhere in the world. >> you guys are one of the best stock performers last year people saw this as to some extent a pandemic play what do you say to investors who go, you know what, love the story but i think there will be a reset, i think people will go away from freelancing at least temporarily as corporate jobs have to pay up and offer benefits to lure them back and they might think, hey, this is more tantalizing now, i can do more jobs from different places than were available to me before >> yeah. it's a common misconception, but in reality, the worker talent is not going away

talking to ceos and executives they're looking for solutions to this problem we have always served companies that were working from offices, but we're eager to access talent all over the world even as companies bo back to work in offices, they're going to take with them their remote work skills. the fact they realized the benefits of tapping into this global talent pool, what we're hearing from them, even as they reopen offices is we still want to access this great talent. we still want the benefits of not just the talent but the flexibility to scale up and down our operations using this amazing work foers and-- workfoe and have the agility eve anzorov the world continues to reopen, we're confident people still need the benefit of the workforce and it works great for businesses and talent. it's a win-win >> seems like it's becoming more stream you announced the work marketplace enabling freelancing to reach its full potential by giving freelancers and companies

multiple ways to upwork. we'll continue to watch all of this my last question, what can you tell us about what's going on with wages i've heard conflicting stories you hear a lot of shortages, a lot of wage hikes, retention bonuses, that kind of thing, a lot of turnover. people think that's happening in pockets of the economy but not overall. i wonder if you can point to which direction might be the case >> what we see on our platform, these are high wage earners, skills like web development, so they're earning a lot already and wages are increasing as the competition for their skills continues to be fierce so we're very optimistic that, again, by opening up this market place and the competition for these workers continues to be more and more heated, these folks are in a great position to earn more and more and really set the terms of their engagement as they always do as

basically business owners and entrepreneurs on our platform. so it's a really great day i think for workers who are able to really define the conditions for themselves around exactly how they want to work, who they want to work, where they want to live to do these highly skilled jobs >> yeah. thanks so much for joining us. we appreciate it >> thank you so much for having me >> the president and ceo of upwork coming up, how big is too big? a new study shows biden's spending plans will cost far more than currently projected. we have the numbers and whether they add up to a positive economic impact that the white house is hoping to achieve and the solar stock slide. some of the biggest players are down double digits in the past month. what's behind the losses and what's next for the sector we're back in a moment

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welcome back the white house has touted its spending packages as a once in a generation investment that will boost productivity and gdp for the long run a new independent forecast shows that the cost could outweigh the benefits ylan mui breaks down the numbers. >> instead of boosting growth,

it could drag down gdp because of the size of the national debt the budget model estimates the human coopal investments in universal preschool, free community college and national paid leave program, those tally up to $2.5 trillion, about $700 billion more than the white house expects. mean meanwhile, the tax hikes like raising the top rate to 39.6% and treating capital gains as ordinary income, that only brings in $1.3 trillion, also less than white house estimates. higher costs, less revenue mean less growth and revenue. the plan would redude gdp by 0.3% from the baseline in 2021 and 0.4% 30 years from now the model finds that hourly wages would increase, but those gains would not be big enough to offset the drag from the debt. the white house is pushing back against these numbers this afternoon. the press secretary jen psaki

said they strongly disagree and pointed instead to an analysis by moody's this week that had a much rosier economic outcome kelly, the tipping point here appears to be what the final cost of the president's plan will be and how much deficit spending that congress is actually willing to swallow. >> they're a trusted source, pen wharton. >> absolutely. you know, it's run by someone who i believe worked for one of the bush administrations it's a nonpartisan outlet and is relatively and reliably seen as an accurate forecaster of course these numbers are going to be all over the place, though as we get more details of what these spending plans look like and of course once we see what congress has to say as well. >> we'll pick it up right there. ylan, thank you. biden's big spending plans include big tax hikes. eve on the get to that gap she was just describing, but the tax hikes themselves aren't sitting well in some parts of the heartland. wisconsin is seeing a rebirth this manufacturing and jobs, for instance, but higher taxes

threat on the derail that growth, especially if the stepped-up basis is eliminated joining me is republican representative brian style of wisconsin. thanks for joining me. >> thanks for having me on >> the thing i want to make clear is the issue you're hearing from stilts is not act stock market holdings per se but businesses that threaten to have to change considerably, be sold, run into major tax bims and so forth if the president's spending plans pass. >> there's a real disconnect between the biden administration and nancy pelosi's plans for the united states, the reality on the ground there's a manufacturing facility in franklin, wisconsin, that had a line that wasn't operating because they weren't able to find workers we have a business in walworth county now closing on wednesdays because they can't find staff to help run the restaurant. we see the biden administration and pelosi looking to raise taxes, the 1031 kind of change, a land transfer tax. it will hit family farms

anybody who wants to sell acres is going to be hit with this land transfer tax. it's going to have a real impact to families and businesses and farms right here in the state of wisconsin. >> you're a republican the president is a democrat. where do you think your colleagues are on this issue do you think they're facing bipartisan pushback on some of these proposals? >> i think people are only starting to fully appreciate the impact that the taxes are going to have on families and workers across the united states it sounds good to say one is only going to tax the rich, but the reality is when you look at the $6 trillion in new government spending that the biden administration has put forward, it's very clear that those taxes are going to have a very serious impact not only on the high earners but on everyday workers here across the state of wisconsin and across our country. that's the concern is the negative impact it's going to have getting workers back to work across the country. >> are the spending proposals attractive enough to voters they

might say we want what he is proposing and we don't want to pay for wit taxes, maybe we won't worry how we pay for it. >> i think voters are smarter than that. i think voters are going to know that the ultimate result of this is going to be higher taxes, higher taxes on the 1% today but ultimately it's going to come all the way down the list and affect all families here in southeast wisconsin and across the country. i think the voters are smarter than what the democrats in washington, d.c., think they are. >> or maybe they have different preferences that don't quite align with this agenda just yet. in any case, congressman, thanks for joining us and explaining what's going "on the money" the ground we appreciate it >> thanks for having me on >> congressman brian style coming up, a tale of two stay-at-home stocks. the name and details ahead for one. the second soaring on earnings hayward holdings up 24%. could a chlorine shortage drain

momentum goi fwangorrd the ceo joins us live ahead.

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on pace for its worst day after recalling the treadmills there were fatalities with children shares are down 39% since the company originally pushed back o after the recall request under armour is up nearly 10% in trading, highest level in more than a year after several upgrades from wall street. 8% gain for them and the ark is trying to avoid its seventh day of loss, the longest streak since 2018. it's down this year, in the bottom percentile. down a third of a percent again. catch ark invest ceo and owner cathie wood on a "the closing bell" interview. >> here is your "cnbc news update." andrew kcuomo says broadway tickets will go on sale tomorrow for performances starting in september. the major group representing

theater sales says ticket sales resume this week the firing of the murder charged in the death of ahmaud arbery has been reversed he was fired the day after he shot him in the restaurant he appealed and a city board agreed, saying he was not given due process. the u.s. birthrate has fallen to its lowest level in more than a century. last year the rate fell 4%, the biggest decline in five decades. the cost of a child is a key consideration. you can see what's being done to address those concerns tonight on "the news with shepard smith. a reversal of what people were expecting. >> pregnancy tests are up, ra hell 13% year-on-year so maybe we'll go from bust to boom >> interesting factoid pulled out there, kelly >> i happened to write my newsletter on this very topic today. >> fascinating i'll read it

>> rahel solomon another facebook flashpoint working out to a public debut and circle k discussion coming up on "rapid-fire. first, we show the chart and tell the story today's chart gm, up nearly 4% on earnings and despite the chip shortage, ceo mary ba ra addressing that issue earlier on cnbc >> we're going to make up as much as we can i can't say we'll make all of it up, especially when you look at how strong demand is right now, especially in the united states. you know, that's a huge opportunity so we'll build every vehicle we can whether we can make up every single vehicle will depend on the whole chip supply. that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads.

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welcome back let's catch you up on some stories. it is time for "rapid-fire." here are julia boorstin, mike santoli and the chief correspondent for axios. let's get into it. with facebook's independent oversight board, what a story this has been today, their

independent oversight board is upholding the company's suspension of former president donald trump's facebook and instagram accounts after finding he did violate their rules in the wake of the january 6th capitol hill riot. the board also found fault with facebook saying the company broke its own rules by imposing an indefinite suspension. trump is blasting them saying they must pay a price this is a facebook-appointed board in the first place and acting all you need to do this and that they don't have any actual independence, right? >> well, it is an independent board, so facebook gave this money to create this board, but the board operates fully independently. i actually think the fact that they decided what they did and they threw a lot of the decision back to facebook shows just how independent they really are. they're saying facebook, your job is to make the rules, make the rules consistently, make them clear, and our job says a

independent oversight board is to make sure that you are enforcing the rules. so the oversight board did have a couple of key things that are worth noting saying they think that safety and security should be of the utmost importance, saying that if there is some question of whether or not to leave something up, if there's any risk that will incite violence, it should be pulled down that's more important than whether there's a public interest in somebody saying something because they're a public figure. they also said politicians shouldn't be treated differently because they're politicians. it should be based on how many followers people have, how widespread their reach is rather than the fact they're a politician >> in other words, a kardashian or someone with as many followers would have the same standard applied as a politician ena, what's your take on all of this >> i think it's noteworthy they threw some of this back to facebook and saying it's your job to have the right policies in place that's important ultimately the responsibility is with facebook. i think the thing about

followers versus elected officials is kind of curious because i don't really think as influential as she is that kim kardashian has the ability to take over the government with a facebook post, whereas donald trump, you know, many would say tried. so i do think there's a different standard for world leaders and i think that where a lot of the criticism outside of the partisan criticism will come is that notion that, you know, we have to have some standard for political leaders so that they are able to voice their stuff and we need a line of where they're interfering with democracy. it's not just the u.s. everyone's focused on the u.s. and the right and the left this is a policy that's also going to apply to leaders around the world. and people have a lot more issues in myanmar and elsewhere. >> shares are up 16% this year does this put the issue behind it so to speak or kind of leave it out there as something that's hanging over the stock >> i would say to the degree it has hung over the stock, it probably remains, maybe a bit

diminished i love to differ with the kind of financial consensus on this company and say that there's going to be some kind of inflection point in terms of business model and regulatory risk it's not been the case the pie is so big, it's grow so fast, facebook is so dominant with it, facebook -- and mark zuckerberg has begged for clear parameters tell us the regulations and we will follow them with dominant market share the regular ligss work in their favor to preserve the status quo. >> julia, they can do what they want they're a private company. twitter, which banned trump indefinitely, doesn't have a review process like this under way, right >> twitter has its own system that they're working on right now. twitter did make the decision definitively to ban trump permanently from the platform. they are creaating a self-policing mechanism of users on weighing in on if tweets should be left up or not many in establishing the oversight board, facebook can do

whatever they want but they committed to following the recommendations of the board >> it's weird. we'll kroo year to date a board, listen to what -- you have to think in the future they might di disagree at some point theater. let's talk some netflix, which is going to release its upcoming zombie movie "army of the dead" in theaters a week before it appears on the platform it will be showing at 200 cinemark theaters starting may 14th, but not amc or regal netflix's shares down 9% in three months ina, does this strategy make sense to use the theater as a way to drive i suppose engagement with the film >> it serves two purposes, i think. they want to be seen as a filmmaker and we still judge films, pandemic aside, as did they go to the theaters. i think with we'll see in the next couple years is a hybrid

model for movie distribution we're seeing it. the films have come straight to vod because of the pandemic. now we're seeing a vod company, netflix, going to theaters i think we are going to see a hybrid future. i think most important thing going forward is you have to make the business model work films are expensive to make. and somehow out of that combination of theatersgoers and streamers, you have to pay for that expensive movie. >> mike, what's your financial take on this as netflix is up against disney and peacock and so many others with different strategies on releasing content? >> everybody's converging. netflix is a huge studio, perhaps the most prolific. i would sort of defer to netflix's judgment if some of their releases seem like they could earn revenue and get more attention and solidify netflix's place as a creator of, you know, proprietary content, it makes sense. we would overplay the idea there's cannibalization.

seen by 20 million people, still the majority of people on netflix would not have seen it it seems like it could work together >> julia, why do we think it's going to cinemark and not other theaters what do you read into that >> i think netflix is taking advantage of a moment right now. there just aren't as many films in theaters right now and the theaters have traditionally set lots of rules about how long a movie has to be available in theaters before streaming. this is an experiment for cinemark and for netflix >> i'll be curious if we just see more and more of this. maybe that's what the cinema industry needs is a little bit of innovation. next, our sources tell our david faber that equinox, the luxury gym, is in talks to go public they're seeking a valuation north of $7 billion. is this a msmart move companies they've taken public including these are down double digits this year mike, are they getting involved,

getting still good or is the door closing >> the valuation is probably going to be what the valuation is in other words, if it performs poorly tlafr, it might be less of an issue. gives a little test to how the market sees it it doesn't seem to love it but it's not a -- equinox has kind of threatened or promised some other way of going pluck. it's been rumored over the years. it's very much a new york play, very much a kind of back to the gym type play. it's a status brand, not like planet fitness but would have a similar valuation based on cash flow to planet fitness an interesting asset but i'm not sure spac is the right or wrong way to do it in this case. it's been shopped around >> almost the insult julia, we wouldn't have expected this conversation just a few months ago, to be talking about a gym mostly new york city

based, you know, getting ready to go public i think i saw they're about to put broadway tickets on sale starting tomorrow so maybe a sign of things getting back to normal. >> yeah. i think there are so many questions about the future of these assets equinox owns soul cycle, which is competing with pelotons at home i think there are so many outstanding questions about how consumers are going to behave in the post-pandemic world. yes, some die-hard equinox fans are eager to get back in the gym, but i'm wondering if those who went to soul cycle have invested in peloton over the course of the pandemic maybe they'll be more wary of getting out and paying for classes. >> maybe they'll stick to bike and be ready to get back into it that's what i'm curious to see finally i think we needed another subscription circle k, customers can pay $5.99 a month to have one tea,

coffee, slushey or fountain drink every day. they also do a car wash subscription i know you're a big fan, ina, right? >> i'm a huge diet coke addict so circle k near me, they'd be out of business. 7-eleven has something similar this is a gamer cup they sell in limited quantities each year for like $149. and you get a soda every day they're not making any money on me on that i go in every day for a giant fountain soda. but, you know, i think it makes sense. many people will go in and buy something more expensive or buy something else rather than just get the soda, so you're basically getting some money up front for bringing the customer into the store every day i think that's what they're betting on >> julia, this is what we were talking about with irobot. they need to do a rumba subscription >> i think this is smart to build new customer habits. everyone's customer habits changed during the pandemic and

i think this is all about establishing that routine of going and buying -- getting your free drink because you paid for subscription already and stopping and buying a breakfast as well. if they can get people regularly into the stores i'm sure it will be worth losing all that money on diet coke for ina >> mike, would you be a coffee subscription guy >> i theoretically could be, but i would turn around the economics of it and say this shows you just how profitable fountain soda is for these companies, they're still making money on ina >> restaurants, all of their margin is on coke and soft drinks they can take it down to this and they're still probable, we're all chumps even ina isn't getting the best out of that. we'll leave it there, everybody. thank you. julia boorstin, mike santoli and ina fried. hayward hold social gatherings soaring after better

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check out shares of hay word holdings, one of the largest pool equipment makers in the country up more than 20% today after they reported its first quarterly results since going public in march. diana olick has the details and a special guest. >> a huge first quarter for hayward, beating on revenue at $334 million versus estimates of $259 million, sales up 96% year over year. its 80 loss per share was smaller than a year ago. net sales growth of 40% to 45% let's talk pools kevin holleran joins us, the ceo. thanks for joining us. in the earnings release you said

we experienced tremendous demand for our pool equipment as investment in the outdoor living space remained a focal point for consumers. we're all getting back out in the world now, many of us vaccinated that may mean getting back to public pools is that going to cut into your business at all? >> cut in, no. that's part of our business. we welcome those public pools, municipality pools coming back open iand letting a broader population enjoy the outdoors and a they will thi lifestyle. we supply the full market and we welcome those pools opening back up in 2021 >> as you say, 75% of your revenue is from equipment and technology needed to maintain and upgrade pools. we're seeing shortages, chlorine, pool liners, rising costs for cement and other materials. how's that going to hit your bottom line going forward? >> yeah. we've -- it's there. you know, we're -- demand is causing some inflationary

pressures. we have -- we've been able to pass through some pricing increases, but, you know, even before that, we take on mitigation plans ourselves so we don't necessarily pass all of that along pool equipment is still very, very affordable in the grand scheme of things you can build a pool, entry level maybe $30,000 for an in-ground, and the equipment is only high single-digit, maybe 10% of that total investment cost so it's still a very affordable endeavor, and, you know, from a chlorine side, you mentioned we have some nice alternatives based on some shortages that exist with chlorine tab leapts we make chlorine generators and have uv and ozone products which help to reduce the amount of chlorine needed to properly treat the pool so we've got some nice options for pool owners and consumers out there. >> kevin, you answered my question it's kelly here. this is all the talk in town, people trying to figure out whether to do a salt conversion

or the uv option will your company benefit even if people convert their pools to be saltwater pools or look for other ways of trying to keep them clean >> yeah. we absolutely will you just touched on there, the uv and the ozone can be paired with any kind of chlorination system, and when paired with whether it's tablet, liquid, salt pool, that will reduce the need for chlorine up to 50%. on top of that, we actually make salt chlorine generators, an alternative way to tablet, a more natural way, less chemicals in the environment it's a better swimming experience saltwater has advantages from the skin, the hair it's more enjoyable as an experience we have some good options to satisfy the shortage that exists in the marketplace >> kevin, we talk a ton about how much home prices are soaring out of control right now when people buy a home that

doesn't have a pool, sometimes they think, okay, we'll get the home, put in the pool, but those higher prices might leave them with less money to spend later are you concerned about any of that >> i'm really not. you know, there's -- frequently people are rolling equity from the prior home into the new home, so, you know, equity values, the market is doing fine i think people are feeling better about their nest egg right now. so we've seen broad secular trends, whether it's the boomers as they retire, making these investments in the backyard, whether it's the millennials who really show an appreciation for that extension of their home life into the backyard we're very, very confident that even with rising home prices that this investment in the outdoor living space with of course pools being the centerpiece of that investment, is going to stay very, very strong into the future >> we talked a little bit about shortages. what about supply chain issues we're seeing that with every product out there.

are you seeing those ease up now more as more people get vaccinated or are getting back to work in the supply chain? >> no. i mean, we still feel some shortages. i think that our supply chain and our operations team have done a fabulous job actually exhibiting our lean manufacturing environment. we work lock environment we work lockstep with the supply partners there was some shortages we work through but in general what the q1 results were that you mentioned is really the result of our ability to ramp up production and start satisfying this demand in our order file right now. >> when we talk about new technology, you talked about the ozone. people don't understand thault different things that go into pools. are you investigating new technology coming to what we will see in the backyards? >> yeah. that's something that distinguishes hay ward in the

industry we have a sustainable bend to our design efforts so whether it's energy efficiency, reducing the reliance on chemicals or water conservation those are the driving forces behind the design efforts and the comeny control, the smart control to control the functions on their pool pad to really make that more a part and demystify the process if you will to work with the light shows, schedule chlorination. that's really something that we are distinguishing ourselves with to make the backyard easier to operate and encourage folks to upgrade products and take more control of those water features and for the backyard pool. >> really sbinteresting stuff w thank you so much for joining us. >> one of the biggest pool

markets ever for the pool business thank you. solar stocks are mixed today with companies warning of supply chain bottlenecks. will the sun keep setting on solar? that's next.

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welcome back the in vesco etf is flat line today. down more than 13% in the past week and it's coming off the third straight month of losses cnbc preponderate come reporter pip pa stevens is here with more people thought this play would do well under the biden administration. >> reporter: this event lower comes amid results and we are hearing from companies that is issues hitting the broader market are hitting the solar industry creating supply chain headaches for the industry broadly semis is a key component for storage and inverters. the company specific level we heard last week saying that supply just cannot keep pace

with demand and they expect this to play out in second quarter shipment volumes and the management sees the supply constraints until the end of the year and then this week solar edge said that they have stockpiled parts in anticipation of this growing shortage but shares fell 16% yesterday after the company said that freight costs have risen by more than 100% over the last few months and that's expected to weigh on margins this weak mness hitting the industry broadly. >> people want the product you can't make enough of it. costs are up what are the bulls saying act getting through this period and build a case for owning some names over the medium to longer term >> reporter: that's certainly right. coming off a record 2020 and people expected a pullback here.

investors say look there's a huge growth potential ahead. installations hit a record high in 2020 and 3% of the market is still penetrated in the u.s. so a lot of opportunity companies are focusing on cutting some of the soft costs like customer oacquisition and the ceo said they're trying to make it as easy to buy it as it is a book on amazon. >> are those all your art books, pippa? >> i can't tell you that that's private >> quite the collection. great to see you cnbc.com up next on "power lunch" skillz is up as ark invest cathy woods loads up on shares we'll talk to the ceo and join dom chu after this qckreui bak

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welcome to "power lunch," jerve i'm kelly evans with dominic chu this hour. president biden talking about this economy we'll talk to a top administration economic adviser about the impact of the costs of the rescue plan. earnings season with the ceos of two very different