>> yeah. >> calls, yeah >> josh? >> new highs for jp morgan stock looks tremendous. >> okay. elvis? i mean, rob. >> slumberger. up, and room to run. >> "the exchange" is next. >> thank you, scott. hi, everybody. i'm kelly evans. here's what's ahead on "the exchange" today. layoffs are down, sales jobs are hot. zoom is so 2020. and people want to get paid. we have all the laidest trends in the labor market ahead of tom's jobs report. plus the cardboard boom in international paper wants to spin off its paper business to focus solely on cardboard. we will talk to the ceo. and retail resurgence. dumping the -- and exemillennia

are rushin instraighten their th >> 2020 is over. are why that trade is playing out in the the markets today first starting with the overall picture. the dow industrials high, s&p 500 up 1.33. and nasdaq plastic bagging, just approximate about flat on the day. the gold star goes up on the dow. the work from home trade zoom is 2020 zoom video, a darling of the pandemic era work from home regime is now down 2% in today's trade. docu-sign, another one of those work there homes is down 2%. 3% for chewy, the online retailer of pet foods. not just dog food. wayfair bucking the trend up 3% on the heels of its earnings

report online furniture apparently still looking for for traders and investors. on the cryptocurrency side we talked about doge a lot bitcoin a lot. let's focus on ethereum. eer the is 3562. it was north of $3600 per token at one point during the highs today. up 1600% over the course of the last one year. yes, ether it's -- fans of ether all over the place, including in the nft world. watch that trade record high for ether today. bob pisani making bullish comments about it this week. people definitely tuned into that dom chu thank you. let's turn to washington where president biden is expected to deliver roarks on his $2 trillion infrastructure plan this afternoon as his american families plan to fund child care and other initiatives is catching heat a new report found the plan will cost $700 billion more than the white house estimated due the

tax credits and other benefits in it. for more let's bring in the vice president's chief economic adviser mike pooil and ylan moi. >> i would like to start with what kelly just alluded to there have been so many estimates of how much the american families plan is going to cost, how much revenue it is going the raise and the exact it is going to have on the economy. a model estimated this plan would be a drag on growth because the debt would be so large. i know you don't agree with that explain to us what they got wrong or what they didn't understand >> thank you for having me, first off. a couple of thoughts first we think the investments in the families plan, the investments in the jobs plan, are absolutely critical for responding to a set of challenges, a set of barriers to

growth to inclusivity that have grown up in this economy over the decades. what these investments are targeted at doing is making this a more productive economy, a more inclusive economy, an economy that's going to grow over the long term specifically rapt to the penn wharton model this is a place where we disagree. for example, one of the examples they have is that a paid leave program like what the president and vice president are proposing this the families plan is going to cause more women, more workers to leave the work force. that's not how most economists think of it, how we think of it. we think this is a boone to allowing more member workers to join the economy to help the economy grow larger over time. that's an assumption we disagree with and most economists disagree with, too. >> it is not just on the spending side where there are questions. there are also questions on the revenue side and how much you can actually rise with some of the tax increases. the tax foundation found today

that closing some of the loopholes around the medicare tax that only raised $200 billion rather than $300 billion. the tax policy center is raising questions whether you could actually bring in an additional $700 billion from enhanced irs enforcement. i guess the fundamental question is if your numbers are off what happens if not only does the economy grow in the short-term but on the long term we end up on an unsustainable course for the national debt? >> we think we have put forward a very come preens comprehensive set of revenue proposals on the corporate and business side, on the individual side that's going to make the economy fairer on the business side is going to make the economy more competitive and that we think -- you know, we stand by our estimates. we think over the next decade and a half we are going pay for these critical investments to our economy in full. it is an essential piece of what it means to grow this economy

more cliff civil and strong low over time. >> it is kelly here. thank you for joining us what would you say to people who are snapping up the cryptocurrency as a hedge against the spending plans our administration has laid out? >> i am not going to offer any investment tips. i think what we are focused on is getting these critical investments done, making sure that the economy is built on a strong foundation for growth, for productivity, for inclusivity in the long term let's also remember, this is an economy that is stihl very much in a hole from the pandemic over the last year. we have been encouraged by some of the data we have been seeing, whether it is around claims, whether it's around gdp. let's remember this is an economy that's 8 million jobs in the hole relative to where it was just 15 months ago and we have got a long way to go to get the economy back on its feet so we can build for the long term. >> as a followon, what happens if you go down a path of deficit spending and all of a sudden

interest rates start the rise had the federal reserve have laid out clear set of rules, when employment does a certain thing, inflation does this, we are going to change our bond purchases accordingly. can you tell us what your thinking is about that in in other words if interest rates rise, it puts pressure on the budget you have to account for that somehow. how would the government respond? is there a way that you can kind of quickly adapt to that situation, to avoid getting into a real crunch? >> what i would say is just let's take a step back and think about the comprehensive nature of the president and vice president's economic strategy here it's first to invest in making sure we dig this economy out of the hole that it has found itself in because of the coronavirus pandemic over the last year. you know, what we've seen in bond markets, elsewhere, has been just reflective of the fact that the economy is now kind of digging out of that hole and growth is now expected to

return that's an encouraging thing. with respect to the long term, the jobs plan, the families plan, the investments we intend to pay for over that 15-year horizon, these are ultimately focused on making the economy grow faster, making it more productive bringing more people into the economy, making it more inclusive. that's ultimately positive for growth, for the macro economic picture. that's what we are focus on. we think if we do those things the rest will take care of itself. >> mike, the president has been focused a lot on small businesses and the role they are playing in this recovery he has been talking about the restaurant revitalization fund and launching that this week the vice president has made ate point to meet with a diverse group of small business owners across the country how are you selling this plan to them and they are going to be the ones ultimately who are going to have to shoulder a lot of the tax burden for the investments that you are planning to make. >> you are exactly right

small business has been a critical focus for both the president and the vice president as we work to provide relief so we can get the economy back up on its feet post the pandemic. as you said, the vice president was in rhode island yesterday sitting down with small business owners, including restaurant owners, about how they can get access to the relief that we are putting out there. i think one of the things that we have been focused on as an administration is this is a crisis that has hit particular parts of the economy especially hard low and moderate income communities, black and brown communities, women owned and small businesses all of our efforts is on making sure those hard hit parts of the economy, business sector are getting access to relief and able to build back stronger. that's what the president and vice president are spending a lot of time doing. we have confidence that if we get shots in arms, keep moving ahead, if we ito get relief in the hands of small businesses

that's going to be the most positive thing we can do for the economy and the small business sector. >> are they okay seeing their taxes going up in order to get all that relief? >> one thing i would make clear on the tax proposals, is that no one making less than $400,000 is going see their taxes go up that's a bedrock proposition from the president and the vice president. that means the overwhelming majority of americans are not going to see any changes in their taxes. if anything they are going to see decreases in their taxes by virtue of some of the things we are doing on the child tax credit and what have you we are very confident that if we get relief out the door, if we get shots in arms, if we make these investments in the long term that's going to be a really strong environment for small businesses, for businesses at large to grow and prosper over the medium to long term. >> michael, we will keep watching it and hope to have you back and have this conversation again soon thank you for joining us kelly, become to you.

>> our appreciation for bringing that to us, ylan moi. tomorrow we get the monthly jobs report. the federal reserve wants to see several months of strong readings as signs of potential problem in the labor market. my next guest sees promising signs, shortages of workers, and less interest in remote work joining us now the chairman and ceo of recruiter.com good to see you again. so zoom is so 2020 >> great to see you kelly. we are seeing the word hybrid. it used to mean a gas and select trick car. hybrid now means both an in-person and a remote job we actually in our survey -- 21% were actually remote, everything else was in person, was 42%, and 37% were actually hybrid jobs. it is going to be an interesting dynamic. a hybrid still requires to be in person this notion of being able to find talent -- again our

recruiter index is all about the recruiters if i have to find talent that's remote i can tinds it anywhere in person has to be local. hybrid is also localized we are seeing this return back to localizedings -- sourcing and finding localized talent across all industries. >> it plays into the discussion we are having all the time about what work is going to look like? ity going to be more like 2019 or 2020. let me ask you about trends and momentum we like to check in with you ahead of the jobs report your recruiter index softened last month is there any reason to think a similar softening might be picked up broadly tomorrow morning? >> yeah, it was interesting. last month the recruiter index showed the average recruiter was working on 16 open jobs. that number jumped up to 20. there is a lot of demands for hiring some of it is replacement hiring i think you are hearing people talking about changing jobs and the need to change and get a new experience but the overall sentiment actually ticked down one bit

the month over month was the same but the outlook for 90 days was slightly down. i think we are seeing the tightening of the highly skilled labor market again, being able to find the right person is no longer just about finding the right talent i have to find the right talent with the right location. >> let me ask you what that means, tightening in the highly skilled segment of the labor force. could you explain that a little bit? >> sure. no problem so if i needed a java programmer and i didn't care where they were located i could find a java programmer anywhere on the planet who would be willing to work in that role. now if i need them for hybrid and they need to come into the office then i am limited in the number of people i can find specifically for that job. so you have seen sort of the tech sector where they were incredibly hot having difficulty finding these roles. there is lot of churn going on in corporate america 22 to 27% of voluntary churn

companies are constantly switching employees. employees want new opportunities. we are seeing that a lot 22% of the candidates wanted a new experience >> yeah the yolo economy my favorite trend piece of the year i think you are picking up on that, too. last question, this is really interesting, are we seeing in the labor market what we are seeing shortagewise in other parts of the supply chain? in other words if we see a slowdown in the pace of hiring is that actually because people couldn't find the workers they needed we usually interpret that as oh, slower hiring means less demands for workers. what you are describing to me is if we see a slowdown in the number of jobs being added it could be because they can't fine the people to fill those positions. it is kind of acting as a break on the economy even though people want to hire. >> completely agree. you asked me a question in june, you walked by a restaurant and saw a help wanted sign and you were like how can that be. here we are again. there is lots of demand for hourly workers, and hourly

demand across the board. anecdotally we are seeing customer service clients, they are providing customer service call centers, they are having a hard time. you are seeing this sort of change where instead of going after someone who is an existing skill set in that labor let's go after a different pool of people, whether it is the high school graduate, the new college grad that's having a hard time finding a job and creating these experiences for those folks to enter into job market maybe not in the career they want to end up in, but in certainly a great stop along the way. >> it started with restaurants now it is the eyebrow threading sa salon. it is the cigar shop needing a host these signs are all over town. >> it is incredible. you guys posted the other day, there was 48% small businesses with open roles. yet there is 9-plus million people unemployed. we have to figure that out we have to either change where we are trying to find those folks or really convince this new population of workers that,

hey, it's about experiences and you are going to get a great experience working at this company. you don't have to be there for 20 years you could be there for a year, you could be there for two years. you can get great experiences along the way. >> being a waitress is good training for being a mom, because you have to do everything with one hand and there is a lot of balancing that's required. >> everyone had their first job somewhere, right. >> evan, thank you for joining us with insight into these trends we appreciate night thanks, kelly. >> even stones is with recruiter damn. coming up, his company makes one of every three cardboard boxes. the ceo of international paper joins us why he is watching biden's infrastructure plan closely. plus, the chip shortage derailing car production and pushing up sales of used cars.

the ceo of cars.com joins us don't go anywhere. >> announcer: this is "the exchangeonnb" cc.

welcome back the pandemic surge and e-commerce fuelling record demand for cardboard last year international paper announced it

is spinning off its paper business to focus on packaging it already produces one in three cardboard boxes here in the u.s. the ceo says the shift is the logical next best step forward with being a successful company. joining us the chairman and ceo of international paper mark, are there cardboard short ans developing out there >> good afternoon, kelly thanks for having me on. it is good to see you. there is not cardboard shortages but the supply chain is very stretched right now. we have learned how to do things differently during the pandemic. some segments got really strong at the expense of others those are different types of packages, different types of capital installed machines our employees showed up every day, we are continuing to do so and we are meeting customer needs. but it is a stretched supply chain. >> what is this telling bus the u.s. economy right now. >> i think the economy is gaining steam. the e-commerce section, just as an example, really, really grew last year, more than 50% for us over 2019.

in april of this year, against last year's april, which was the first big pandemic month, we are up over 25%. some of that came at the expense of traditional channels like food the restaurants and things of that nature but we are beginning to see strength in all of our segments, even the ones that were hurt last year when businesses were closed without any real letup in e-commerce. >> what's pricing look in are you having trouble with supply or worker short ans. >> on the pricing side, wood fiber and recovered fiber, there has been upward movement in that energy and some of the chemicals that we use, petroleum derivatives for adhesives and things of that nature have gone up labor is difficult we have the ability to add shifts not all of our plants run 24/7 in the box business. hiring people has been a challenge. getting them trained and getting them to stay

so we have been making up some of the capacity shortages with asking our employees to work some extra overtime. we have been managing it so far, but labor is tight right now. >> how are vaccinations playing into that? are they required? are you offering incentives for workers to get them? is it not a factor >> we are not requiring vaccinations but we are highly encouraging it and making it as easy as possible many of our plants have become vaccination centers in the different locations that they occupy, and even at our memphis headquarters we partnered with local hospitals to put vaccination events together for employees and their families >> wow fascinating. again, these are pretty big places that can manage that kind of flow and make a lot of sense. last question before you go, mark, about recycling. with this surge in e mers our living rooms are overflowing with amazon becomes. we flatten them all the time and put them out to the curb but you keep hearing not all of this

cardboard is recycled, a lot of it ends up in landfills. can you speak to whether that's true and if there is anything we or the companies can do to cut down on waste? >> there is a couple of things we are doing our products are made with renewable natural resources at the beginning of life, wood fiber. corrugated boxes are recycled at about a 92% rate the e-commerce piece, the opportunity there is to take the amount of actaging down. international paper paper developed e boss, an e-commerce box optimization system where we have proprietary algorithms, we work with our customers, walmart is a great example we look at everything they ship, analyze the data and recommend a suite of boxes that takes their total packaging down shipping their products is ten times more expensive than the box. that's a value-added service that we provide our services.

>> fascinating it sounds like an interview question how would you decrease the surface area -- the area of the box to fit these things better but the whole economy hinges on it, from the e boss himself, mark sutton of international paper. thanks for your time. coming up, paypal is higher on earnings and on expectations that consumers will keep making digital payments post pandemic shares dipped 2% we will talk about their strategies to make the numbers stick as people head back to stores. we will ll yteou what impact the president's tax plan could have on the housing market don't go anywhere. ♪ ♪ ♪ hey google, turn up the heat. ♪ ♪ ♪

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welcome back, everybody. let's get a check on the market. dow is up 150 points nasdaq lagging enagain. longest losing streak since i think october. earlier this morning, german chancellor angela merkel came out in opposition of the plan to release patents. that boosted pharma stocks pfizer had been down 12% before her comments known half a percent decline

this company was at 1.20 during the early part of the pandemic last year making it one of the fastest runners in the stay-at-home trade >> fastly, fed rinne, rocket, and etsy all down up to 25%, in fastly's case. time for a cnbc news update with rahel solomon. hi, rahel. >> hello good to see you. here's what's happening at this hour, everyone >> a government says u.s. support of waivers is a significant step but many questions remain about how to improve global access to more vaccines a new poll shows tepid support for vaccinating children the kaiser foundation 30% of parents with kids ages 12 to 15 will get them vaccinated as soon as shots become available. 26% are taking a wait and see

approach 18% say they will only do it if schools require the shots. one in four say they will definitely not get their kids vaccinated. this is sweet n holiday anderson, researchers trained bes to detect the coronavirus. test results come back in seconds. the bees use their sense of smell and stick out their tung to indicate a positive result. the reward is a drink of sugar water. they train them if there is covid you get some water, stick out your tongue. if there is no covid, no water, don't stick out your tongue. >> bees have tongues i guess to get the pollen out of the flower. retail detail. how americans with spemdsing their money. olive gafr den is darden's shining star and the c suite push to remove hiring requirements. it is all ahead in rapid fire after this

welcome back let's catch you up on stories that should be on your radar it is time for rapid fire. here to break down the headlines

are rahel solomon, dom chu and kourtney reagan. welcome one and all. it is kontoor, kourtney. >> it is spelled quirky. he delivered earnings with sales that bounced back or surges over 2019's prepandemic levels. they own wrangler and lee and said u.s. revenue was up 11% it folg follow trends from mcdonald's, blooming brands, coca-cola saw revenues return to 2019 levels. court, we have seen the mall based retail names doing really well since january how much stronger should we expect retail to get >> you know, kelly, i think of course there is some degree of pent up demand, people wanting to get out of the house. whether that means that they are

actually going to a mall, i don't know, but they are looking for an occasion to buy new items. and i say that because there is still a bit of a difference between what we are seeing in retail in store and on line. on line is incredibly strong, from the metrics that we got recently from adobe, they say even just between march 11th and march 31th, an additional $8 billion was spent because of those stimulus checks. that's about the equivalent of an e-commerce black friday that is a lot of money but the instore traffic is still down from 2019 according to sensor mattic solutions. when you look at it compared the last year it is up like triple digits but that makes sense because the stores were closed last year. i think there is a lot of pent up demand. the stimulus checks are helping. patterns going back to normal. maybe we are finally ready to put our jeans back on again. lee and wrangler are saying that tapestry had strong results.

a strong demand for a new handbag look there is a lot going on. >> and maybe therein lies the link between retailers and paypal as long as they have an online presence seems to be benefitting from both trends right now. >> for some behavioral patterns clearly shifted right, each on an anecdotal level here in englewood cliffs at cnbc we have the cafeteria, we have our app. we never used that before the pandemic it has certainly made things easier i think even with all of us coming back to the office the app will stay. i think it is like paypal. you learned the new habits and new ways to spend. why go back to the old ways. >> comments in the past 15 minutes or so, cpi and inflation trends aren't going to persist, the question is is the the mouse moving through the snake's body,

the bulge in spending and inflation, do we get to the other side of that and go back to normal. >> to me, it is interesting you bring up the fed it is the government side of things that has been behind any mod couple of success that we have seen in the wake pandemic there are still a lot of things wrong, still a lot of people out of work. however when you have an economy that's 70% based on consumer spending in some way or another the government maybe got it right when it did the direct rounds of stimulus going back to the trump administration until now. it is what has been providing some of the i guess dry powder for many of the consumers to go out there and spend at all of these different locations despite the fact there have been lockdowns. certainly if the stimulus checks are still in play that's propelling the trajectory out of pandemic when you do see travel and leisure spending, mall spending it shows it was the right way to do it. now the question is how do you unwind it. how do you get back to normal.

>> darden getting a bullish note from cowen today the price target should be 164, giving it an upgrade to outperform saying casual dining will remain rebust it is all about act two, the other side of the pandemic idea. shares of darden doubled in the past year. it speaks to how strong -- is this going to be a higher plateau of restaurant spending for a while or not. >> the crew on "halftime" talked about darden earlier today 12:30. courtney gibson talked about how there was a two hour wait at the yard house restaurant in atlanta, the vong brand power of darden and some of those companies. i think, yeah, people are ready to get back out. we want to spend on jeans or whatever it is and live our best lives outside after being kooped up the last year. >> what, dom >> i would say this. i want to wait a few more weeks or months before i make a call on this. the reason why i say this, for

many places around the country the long lines are because you are still operating at 25 to 50% capacity over the next weeks you will start to see major jurisdictions loosen those restrictions. in my home state of connecticut may 19th we are back to normal, no restrictions. if you start to see pent up demand still playing out with full capacity that's going to be a big key. when we are talking about hospitality you have got to talk about the employment picture as well jim reed over at deutsche bank to the nfib, they show hiring has become a big thing if you are in hospitality, can you find the workers that can help you scale to the bigger level. >> 100%. keep that in mind if the jobs report shows a slow down court were you going to add something stereo brand-new spending numbers from mastercard for month of april of course they are up compared to 2020. that makes sense everything was shut down but compared to 2019 restaurant spending is up 5.7%. >> wow in i think there is

strength beyond just what we are seeing at the darden names there are a lot of folks in the suburbs waiting to get out to olive garden you need the bread sticks. >> raise your hand -- let me point out what we are talking about. merck ceo ken frasier and ibm's ceo just spoke at the ceo council summit and are both saying millions of positions can be done without a college education. they and other companies have removed this requirement in recent years ibm has. merck expanded hiring in some roles beyond the additional candidate. with a candidate pool this tight it is one more reason to broaden your search. >> sign me up. i am in agreement with both folks. not because they are captains of industry and very smart people but because you don't need a degree to do many of these thing. the reason why, because many of

the jobs that are so in demand right now are technical-based jobs jobs in i.t. johns that are skilled in nature, things that you can do with an apprenticeship if it is done right i mean, i remember ibm was a huge pioneer in this kind of space going back i believe recommenditiy called it the new collar job initiative, this idea that if you want a technical job you can find a situation with a certain skill set and aptitude you don't need the college degree we can teach you how to do these thing. and way more cost-effective if you look at the cost of tuitions when my kid got their social security numbers i immediately opened up a college savings plan because i know how much it's going to cost. i don't know if the return on investment really is there anymore for traditional college degrees. >> people say they are all going to be in college at the same time i said maybe, maybe not. i don't really care. it is up to them to figure it out. >> do you know what else i think

is interesting we heard this idea when we were talking about board diversity. if you really want to be about change then you should think about the criteria of the people that you allow into the organization for example, with boards, if you have to have been on a board to be on board then how do you ever sort of change the look of the board. i think it is true, if you want to be about it, be about it, maybe change the criteria especially if it is not really that necessary. >> somewhere gary view is cheering to hear us railing about the college degree. brace yourselves, everybody, adults are racing to the orthodontist's offices to straighten their smiles before the ends of the pandemic the number of adults starting treatment in the first quarter of this year was up 69% versus a year ago maybe a year ago had some pandemic issue in it but these a huge gain. they and smile direct club both this the red before attending all of the postponed reunions and weddings

and evens people can still get their teeth realigned. i think it is just a coincidence but i just got fitted for a retainer again after all of these years. it was a cool deal it was $550. i said we can't fix this, but this will keep it from getting worse. >> that's funny that you say that, i too, was a major braces wearer, i had the head gear and the retainers and the whole thing. i wore my retainers every night until i was 22 then i thought okay, i have been doing this long enough i took them out. sure enough on the bottom a couple of treat, don't look too close have shifted and i started to think about, should i get that corrected could the smile direct or invisalign be a product for me. >> yes. >> i identified with this story because i thought my, go, am i going to do this again

my orthodontist retired and said sorry i threw away your oldz. >> i encourage all of us old millennials to show up i didn't about the invisalign result but a lot of people do when it is more of an issue. >> just like courtney, i had all braces and the head gare, thank you for playing the thousands of dollars for that but now my teeth are a little bit wonky on the bottom there. they are not as straight as they used to be maybe i need to go and do some of this stuff. i am not sure if it is a vanity thing for me it is more of an ocd thing i would like to have my teeth straightened >> we are exposing our deepest darkest smile secrets on air listen w the popularity of those companies like invisalign and smile direct club, i think it is sort of top of minds for so many people, you want to have a nice smile. we have been hidden behind the mask why not. when we come out the pandemic we want to be living our best lives

in our jeans at a darden restaurant and apparently with a nice smile. >> olive garden and a winning smile. >> eating bread sticks. >> exactly rahel solomon, dom chu, and court me nationan, that does it for rapid fire. car products is down as the chip shortage reeks half on production used car silas are up. we will speak with alex vetter of cars.com right after this break. ♪) a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture

it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care, to be hope-sided. we're never divided, when we live to give, we always live united. welcome back more evidence that the global chip short an is having a huge impact on the auto industry. according to cars.com the on line marketplace for new and used cars, new car inventory has fallen 15% since the shortage with most of that shortage happening in march joining us alec vetter, the

president and cofounder of cars.com >> thanks for having me kelly. >> what's your exposure on the new side versus the used side? those seem like different business right now. >> only 20% of our revenue comes in from the new car market certainly the current ship shortage has an impact on the business as we look ahead to q 2. >> sure. mostly it seems the impact is there is not the cars people want are they turning to used cars? how much substitution is happening? >> i think that's where the story is yet to be written what most people are hearing on the chip shortage, it is impacting the new car market but it is boosting sales on the used car side of the house new car inventory is down 15%. used car sales are booming briskly right now. prices are up 5% on new cars used car prices are up 14% which is why dealerships across the country are reporting record

profits. they are using it to invest more in tech. >> where is this going. >> how many months can this persist? >> certainly we are learning new news every day importantly, we are seeing a variance across different oems who have different supplier impacts. we are seeing some oems signaling new car inventory could be coming back in june others as late as august or september. >> if people is buying a used car instead of the new one they wanted isn't going to say i will buy the new one when it is available. it has to be a permanent shift from the new the used market is it going to last beyond this year as the next wave of buyers comes in, it is a higher plateau for used car buying or anything like that >> i don't think so. we are seeing strong growth in first-time car buyers, we are seeing younger generations craving vehicle ownership. i think it is part of the lasting impact of covid.

people are shunning mass transit in favor of private ownership. 38% of the sales growth is happening in urban areas purchase time lines are collapsing by 50%. people are entering into the market and buying faster than before woe think once new car inventories are returned, there will be normalization on pricing. but car ownership is a durable trend. >> it makes you wonder whether investing in ride sharing companies is a smart decision because of this trend. >> we have got the number one brand in the category. it is not hard to remember a name that's din on mouse with car shopping, cars.com we had 12% growth in people organically typing our name and coming to us directly. we had 450 dealers in the

quarter. we also grew our pricing up 8%. dealers are realizes the only way to advertise are on platforms that cater to actual inventory as opposed to mass marketing or traditional advertising. >> what is happening with sales of electric reeks right vehicles are the shifts from the geographies and the lifestyle shifts and the shortages of new cars helping or hurting ev adoption a little bit of a head wind? >> we see less than 5% share it was at the height in california where there were big federal subsidies and then it was only 8% share in california but certainly with the increase programs around supporting an ev infrastructure and growing selection and production we think it will continue to grow and we don't this i that

displacement happens any time soon. >> love the facts and figures. thank you. >> sure. thanks for having us. still ahead, it is not just a higher capital gains tax to hit real el state investors in bide's plans we'll tell you after a quick break and cathie wood will join closing bell for an exclues i interview tomorrow at 3:00 p.m you definite d'tanto sit.lyon wt

welcome back president biden's tax plan includes three hikes that experts say could make investing in or selling real estate less attractive robert frank is here with that. >> real estate's always gotten very special treatment in the tax code and now president biden plans to change all that the first change is elimination of 1031 exchanges that basically allows investors to roll the gains from one sale into another without paying the capital gains tax but it leads to the other one which is the capital gains tax itself would jump from 23.8% to 43.4% and would apply to any

sale of real estate of more of than a million in a year if the sale is more than a million dollars for that year you have to pay the tax. the third is the elimination of the step-up in basis affecting inherited property if you inherit a property you have to pay out capital gains tax on the gain of the previous owner even if you don't sell it when you inherit it but your gain on that income and the gain itself has to be over a million dollars for that to apply and the industry fighting the chang just the national association of real or thes sending a letter to janet yellen saying the proposals would reduce growth, shrink affordable housing and penalize many hard working and enterprising americans who spent the lives saving and building equity in the properties think of the properties from the baby boomers about to pass down

to the kids and how much those properties have gained in value since they bought them and this could be a large number. >> it puts a gun to their head saying then you should sell it yourself because if you die your kids have to pay the tax bill. is that only true not over a million dollars a year that seems cruel. >> it is if the sale, the gain on the sale plus the income in that year is over a million and then some exclusions for primary residence but then any amount over that million with the income and the gain combined is subject to that higher tax. >> i ask because this is where we have been talking about gal gains in the market but applying to businesses, imagine you built a business and you die does that mean the inheriters have to pretend as if you sold it and pay the equivalent tax bill? >> yeah. great point. huge issue the biden administration has said that for the step-up they

exclude farms and family businesses as long as those family businesses continue to be run by the family. i don't know quite how you dernl some of that maybe they include real estate but that's why they put in the exclusions family companies continue to be run by the family won't require you to pay the tax we'll see. >> a tricky line to walk thank you. that does it for "the exchange." next "power lunch" shares of becton dickinson are lower. i'll join tyler thon fmaesor "power lunch" after this quick break. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone supplied and happy, proactively.

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welcome to "power lunch," everybody. and everyone, everyone is talking crypto today s.e.c. chairman, jp more began stanley ceo. we'll speak with an analyst saying he sees correlation. >>