>> okay. steve. >> moderna 8 billion in cash and five times earnings they already said they won't enforce the patent laws in october of last year sell it pete, buy modern jarngs. >> have a good weekend thanks so much for watching. "the exchange" is now. thanks very much, scott. here is what's ahead on the exchange today's jobs report was the largest miss since 1998. hold up did economists get it so wrong and does this number ease any early tapering fears from the fed. plus, walmart makes a big move into the health care business following in the footsteps of its biggest rival, amazon. we'll look at the battle between those two two dominate in more than just retail musks crypto warning the return of travel and is go pro the new subscription play?

that's all ahead we begin with today's record setting markets. take a look at thoese in the green. we see some record highs in the dow jones industrial average and the s&p 500 as wem both of those indexes setting the record marks the nasdaq out we are forming today you can see they're in a 1% basis there. nasdaq composite showing some gains. one other part is what traders look at leading indicator of economic activity. that's the dow jones transportation index it's nearly doubled. we'll put another gold star here because it sets a record high in trading because the dow transports very much an upward trend over the near and medium term two of the stocks to watch today are ones that have snapped losing streaks roku is up 12% both of these stocks are well

off therapy highs over the course of the last 52 week and they are both snapping eight-day losing streaks keep an eye on those particular stocks let's dig into that disappointing jobs report from early this morning the whisper number was one million jobs in april created. instead the economy only created 266,000 of them last month march's payroll were low rer and unemployment rate was 6% in a loi boar market where companies are doing all they can to entice back workers, average hourly wages jumped. what happened last month what was your number and how did it economists get it so wrong this time? >> we were forecasting 950,000 clearly, it was a big disappointment relative to our

forecast when we think about the forecast and when we run our models, it's a variety of different indicators that we look at we look at some hard sta tixs around initial jobless claims and we look at a whole lot of surveys, including the conference board survey of labor differential what small businesses are saying it was mixed heading ing into te report some of the surveys were caut cautionary we were splitting the ground what we saw. >> i love getting economist take on this. when ever we talk about numbers like the job reports, it become a partisan issue people like to spin it either way. we heard president biden trying to justify some of numbers as well i wonder from an economist

perspective, what do you think was behind that big miss there why only 266,000 jobs given the data points you're looking at. >> i think there's a few factors. the first one have to do with labor shortages which you alluded to in your opening you have a lot of surveys suggesting that businesses are out there actively trying to recruit workers. there's reports of very high job openings across a number of industries even those cindustris most hard hit from the pandemic. i think the economy has to transition there's a lot friction getting people back in the labor mark and back in the jobs as they had before there could be challenges in terms of reentry rate. i think that's creating issues in terms of getting the actual numbers for job creation if it's true to labor shortages

or a issupply side issue, we should see jobs ramp up again. that's really important. the second more wonky response has to do with seachallenges arn seasonal adjustment, but i won't sgeet that >> we know the economic data has been generally positive. is there anything about the consumer spending picture right now outside of jobs that might indicate that things are continuing on their correct path upward despite the fact we got this quote, unquote biggest miss in jobs since 1998 in. >> yeah, absolutely. we're monitoring in realtime aggregate spend on credit and debit cards. it's still robust. march was a gang buster number for consumer spending. it's coming off of those

extraordinarily strong growth rates. we're still seeing a very solid performance when it comes to consumer spending across a variety of categories. then also starting to really embrace more services spend as well particularly as restrictions are eased to me the high frequency data is absolutely still showing where demand is strong and the consumer is moving along and businesses are continuing to invest you just need the supply side to catch up with the big increase in demand. >> okay. we know and mpany of our viewers know we make imsolullusion the . economy is driven by consumer spending just how important is that consumer spending picture going to be knowing that the biggest part of the job creation that we have seen so far in this country has been in maybe lower to middle income wages in the

hospitality and leisure section. that's the part that accounted for the entirety of the job gain right now. >> it did account for them all, over 300,000 jobs create in leisure and hospitality. remember there's a will the of room for catch up in that sector that's where you have the biggest deficit of jobs relative to the pre-covid level there's still more works to be done in adding more jobs in that sector and getting more people in that back and working that will help to support labor income there's a lot of excess savings out there. a will the of people did spend it all we know a lot of savings and there was some unintentional savorings that happened. i think it is still very favorable. you have dry out there that wasn't spent and then you have labor income that should increasingly increase as the labor market continues to

improve. it was disappointing but i do believe there's plenty of kasty for more improvement ahead of us >> it's always great to get your thoughts thank you so much. >> thanks. a quick programming note transportation secretary pete buttigieg will talk about the infrastructure on "closing bell" today, 4:00 p.m. eastern time. let's talk markets now investors are taking the bad news is good news approach for trading today. let's bring in chief equity strategist and robert teeter

chris, what is it about today's job report that sticks out the most in your mind and does it change your investment thesis? >> sure, thanks. it's nice to be with you again i'd say two things are important about the jobs report. it shows the consensus idea there will be large growth ahead and will last for a long time might be flawed in two ways. first, maybe less reliable second, it probably won't last for years. we'll get great growth this year and will probably slack off. that has consequences for stocks you pick in the marketplace. >> robert, if you take a look at the focus for many trader and inv inve investors, it's squarely fixed has anything changed about your outlook for those certain cyclical parts of the economy given that we have seen there jobs report come out today >> i don't think anything has changed. you're right

that's the biggest disruptive part of the job market about a tlhird of the missing jobs are in leisure and hospitality. it will take some time to get back to normal by in large markets tend to like things that last for a while that you have a visible horizon and avoiding a bit of a boom and bust i think the jobs growth is on track and we'll continue to see a pretty strong recovery >> what do you think, robert, is the thing that could derail this recovery all the things have been good up until now. this has been the first real hiccup what is it we have to worry about heading into june, july and august >> over the summer i think lit be quite a clash between the mind set of inflation coming back typically things heat up in the summer we're seeing that a bit now with commodities. we have a bit of supply chain and demand issues that are sorting themselves out don't forget the base effect issues and the pent up demand.

i think we'll see an inflationary burst similarly to the 1990s when there was a lot of tech spend, i think we'll see the same dynamic here the 90s starts off with cpi over 5 and ended with largely due to the tech span. >> chris, you're a portfolio manager. you have to put assets into an investment vehicle for clients what exactly does look attractive at this point with certain parts of the market at record high and other ones still just lagging six to nine months from now we'll be peering into 2022 tech and kplun indications have been left behind this year they are growing astoundingly, not in a cyclical way but in a secular way, which i really like

i think some of these companies have really long tails and they continue to grow not at the expense of the cyclical stocks but right along with them. stocks like facebook and google. >> all right thank you both very much have a nice weekend. >> thank you coming up, walmart moves into telehealth. what could be flexionnext and wn better position to dominate? a closer look at one fast food chain projecting over 2 billion dollar in sales this year but could a chicken and worker shortage derail that entire plan? the ceo of raising cane's

chicken fingers joins us live. we're back after this break in two minutes. (♪ ♪) whether it's a technology first, (♪ ♪) 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 which shows will you be getting into tonight? how 'bout all of them. netflix. 'cause xfinity gets you really into your shows. when one burns for someone who does not feel the same. daphne, let's switch. from live tv to sports on the go. felix at the finish!

you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this on x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch. welcome back walmart announcing this week the company purchased telehealth

provider to expand their growing health services. it's company that will do that in telehealth. many are seeing this as a bid to compete with amazon that announced plans to expand their own telehealth operation as well the companies kbcompete in a clh of the titans on multiple fronts it's lhealth care and grocery as well who will take the crown? there are very few people throughout in this world who know this dynamic between amazon and walmart better than you do give us the landscape right now. why is this battle getting so heated and why do they keep going after each other >> i think over the last few years, walmart realizes the threat that amazon really poses

to all of its business you see this battle playing out on multiple fronts you talk about retail, health care, grocery. walmart last year came out with walmart plus a subscription service if they do not steal some amazon prime customers away and the program keeps growing, we'll look back a decade from now and see the turning point when walmart started to deteriorate >> there's a lot of trends we talk about but who in your mind emerged from the pandemic the best between the two of them and why? >> that's quite a question first of all, i don't think there's any chance that walmart deteriorating. i think what really happening is amazon is running faster than walmart. we saw walmart do that from the

1960s all way up to 1999 and then the crown started the move. we saw amazon run really hard. i think coming out of the pandemic, they are both extraordinarily well positioned. it's everybody else that's in trouble. they've always been each other's biggest competitors once amazon came on the scene. walmart is the biggest threat to amazon amazon is the biggest threat to walmart and that's across all the disr cidisciplines. if you're not one of those big players, you're getting pushed around and your toe s are geting mashed i like walmart a lot because i think they solve online pick up, pick up scurb side and online selling and easy delivery from the store. i think they are getting better and pretty tough to compete with since they have 4700 distribution centers they just call them stores

amazon has stickiest website of any in the world they're not going to lose share but everybody else will lose share. those two can't afford to let anybody else have any of the business they've got to continue to be fierce competitors >> so jason, this is key that fierce competition, the reason why i can see from a big picture macro perspective each of these companies wants to improve their footprint in health care, telehealth, whatever it is, in deck kasd, lit be the biggest part of our gdp. when it come dynamic, who is positioned better in your mind to capitalize on getting market share within health care is it amazon or walmart? >> listen, i think the 4700 store footprint is a huge, huge advantage. i think walmart's history in this space and pharmacy is a big

advantage. i've been told that doug mcmill l mcmillan, ceo of walmart, he wants innovation and being a huge player in health care to be toward the top of that list. i think they have really good chance here. amazon and innovative capabilities across sectors. i think that should never be counted out. they made a couple of k acquisitions in this space when it comes to health care, it might be the physical aspect that's more important. we like know the pharmacist and see these things play out.

is that going to be an advantage comparatively because of walmart's big physical presence? >> i think so. we're seeing telehealth sort of explode as a result of the pandemic and a lot of that, you know, piece of that trend will never turn back the other way. these are areas where i always give amazon the edge i'm not giving you the answer you want but it's really tough to say i see it on both sides >> that's okay jay rogers, i'll give the last word to you. in 20 seconds, who do you like better over the next five years? >> the long term gain is health care short term is groceries and apparel. i really like walmart in dproes groceries and apparel. in next five years you'll see walmart put on a hard push with pressure on amazon

longer term, they are both big winners. who knows who wins in health care >> right now, i like walmart >> thank you both very much. have a nice weekend. draft kings betting big on a return normal for sports but wall street not really all in on it you can see down 3% now. is the company too confident that all calendar sports will be playing this year. we'll debate it. m&a activity is picking up we look at the key factors driving it and who could be ready to make a deal in regional banks. we're back in two minutes.

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welcome back markets right now, up about 1/2 to 1%. the dow is up 185 points the low of the day we were down 84 here are some of the big movers. shares of peleton higher the company also said it would take a hit of $165 million after recalling its treadmill products those shares are clawing back but still on pace for the fourth straight week of declines. that's the longest losing streak since december 2019. the shares up nearly 2%.

shares of tillray are on fire. up 20% on a double upgrade from buy to sell over analyst over at jeffreys one of the trends we're watching is the battle between old energy and new energy legacy companies like baker hues and haliburton are up double this week. down as much as 20% for the week overall. a very big dynamic playing out if the energy patch. let's now send it over to leslie with a cnb news update >> the four former police officers involved in the arrest and death of george floyd have been indietsed by a federal grand jury the charges include violating

floyd's civil rights through the use of unreasonable force and failure to provide pled cal care derek showchauvin faces abuse charges from an arrest back in 2014 no word from the officers or their attorneys. see what the floyd family is saying on the news with shepard smith. atlanta mayor announcing she will not run for re-election she says she doesn't know what is next for her but it's time to move on. >> in the same way that it was very clear to me, almost five years ago that i should run for mayor of atlanta, it is a bun da -- abundantly clear it's time to pass the baton onto someone else the world health organization has approved china's covid vaccine for emergency use.

it's first vaccine from a non-western country to gain backing from the w.h.o good news on that front. back over to you >> thank you very much crypto wins and winnings draft kings goes naul and what's old is new again all that and more coming up in today's rapid fire first, it's friday and that means it's time to look ahead to what's in store for your money next week. here is your "friday fast forward. >> inflation, vacation and vaccinations are some of the key things this week as inflation mentions on earnings call climb 800% we'll get the consumer and the producer price index prints for april. marriott, air bnb and disney are reporting earns this week. we'll get first quarter releases from roblox coin base is up 9%

cdc director will speak at healthy returns conference on tuesday. square co-founder will host a fire side chat on thursday friday brings us a read on the consumer sentiment and retail sells for the month of april are out at yr id ft rward.

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welcome back let's catch you up on a few stories that should be on your radar. it's time for rapid fire first topic here, the crypto craze. could it be a boom or a bust. >> that depends on who you ask citigroup takes steps toward crypto offerings for clients preponderance of the evidence and goldman sachs is already successfully trading them. the bank other england's governor is warning investors to only buy crypto if they're prepared the lose all of their money and the doge father himself, even warning to invest

with caution in a tweet today on crypto currencies. elon musk warning about currencies what a time to be alive. this will be something interesting here if you take a look at all that sp spattering, tim seymour, i look to you from trader's perspective are you getting worried about what's happening in crypto and the miprices you're seeing >> the institutional adoption is good for the asset class it's not surprisiing wall stree is facing higher spreads, higher on these margins less transparency and more inefficiency in the markets. i think digital folks will tell you they are the most efficient markets. the fact you have volatility make it really exciting for wall street central banks not surprising to hear the boe taking this stance. they probably should take this stance interesting debate, they are saying plenty of extrinsic value

but no intrinsic value i think theoretically, i don't know that you can have that. i think with bit coin which has 21 million or so outstanding coins only, there is intrinsic value. the question is what's the market putting on it that's the extrinsic number. there's things like doge coin that i don't understand, don't want to understand look at the platform, look at the growth of the digitization of assets. it's alive and well. >> it was maybe a few years ago when we sent you out in feed and you're going around manhattan looking for places to spend bitcoin to go and buy things i got a figure it's a little more die flamic than that now. we're not talk about the use case as we're stalking about straight price appreciation. what exactly does that tell you about what cryptocurrency will

look like in the coming years? >> we put that experiment to the test again a couple of months ago where we tried to buy things with bitcoin there's very few places you can use it to transact and buy different goods around new york. mainstream interest is growing for crypto currenccurrencies the bank walki ing up and realizing this an opportunity. there seems to be a big opportunity there. this is place that requires more infrastructure to be built out as crypto trading continues to surge. >> all right next up, drafts king is on a return normal for sports the company expected better than results and raised the 2021

revenue guidance on the assumption that all pro and college sports will play their seasons as planned this year shares are lower today and only marginally higher for the year but with pro sports returning and are working on, legislation to legalize sports betting more business could be just around the corner the draft kings phenomenon, we saw the big drops in penn national game over the past couple of days here. the stocks have been on fire has the street over shot expectations, perhaps, a little bit? >> i think there is some skepticism when the companies are reporting such big revenue beats. maybe all the pents up demand hs happened in march and april and you won't continue to see that kind of recovery going through the summer the revenue is great but it cost them lot of money. it cost 41% to bring in that

revenue. it's more than what it costs this time last year. is revenue great, yes. the losses continue to come in and what we heard on the call was they think they will continue to see those losses through the next couple quarters that's not such great news it's great that they have unique players coming in. it's great they retaining these players. there's a cost to doing that business >> still attractive to do you to enter and buy the stocks at these levels >> as a trading on draft kings, i'm concerned by the price action especially below the 200 day for first time ever at a time when we know they're not supposed to be profitable. this is a land grab and you're pricing this on a valuation wise it's a price to sell story it's about an addressable market

that's growing 21 states plus dc and that's how you begin to build this footprint where you begin to forecast for them. they beat on the top line. that's great they upped their guidance. their monthly uniques were not what the street wanted to see. someone that believes in the sector and in the space and the growth, the price of action has not been great but i think it was well flagged >> then there's this vakccinations and pent up demans are leading to a booking boom for u.s. travelers consumer spending on hotel visits surged to about 77% of pre-pandemic levels last month and while expedia reported a loss and decline in revenues for first quarter, it still beat wall street estimates on a surge in domestic travel and vacation rental demand. ceo told seema earlier that

while home rentals are surging, hotel stays are just as hot right now. >> convention al lodging hotel space is very robust we're seeing booking now or into the summer that are above where they were in 2019. >> seema, it was great interview. take us through the biggest take aways about this kind of heating up in travel and leisure sector. >> you heard it right there that the demand for hotel starting to increase as vaccinations pick up around the world it's still lagging vacation rentals. that's the hot market in travel now. that's what forward bookings show as well the average daily rate at $254 that's 30% higher than 2019 levels clearly that's where interest is expedia putting more money on marking. advertising spent to boost the brand so it can beat air bnb at its own game it's putting more money into poaching high quality hosts.

that's the biggest thing if you go online to beach destination to book a home, it's getting hard to find the good homes we would want to stay in it's a good challenge to have. demand is so hot, they need to find more ways to get more home ons s on their platform. >> the folks in las vegas are saying you cannot find a hotel room for the foreseeable on weekends weekdays are a different story it tells you there's demand for this kind of booking fli flights cost much more than they did three or four months ago all of this has got to be telling you that maybe the consumer is ready to get out there and move around again. >> even april, 85% occupied is what sceasars reported they think they will be fully committed for may and june

for those who think i'm vaccinate and will get a deal, it's no deal there's no deals to be had you'll pay out the nose for flights and you'll pay out the nose especially if you're s staying -- is that a thing paying out the nose. >> we get what you're saying >> you'll pay what were old peak market prices. >> tim, you got any travel plans? >> well, i tell you what, you're also paying for stock. really quickly, i yus say expedia 60% above its pre-covid level. stocks not cheap i think it's over done here. i'd probably being expedia >> this is only leisure demand what's really key for the hotel operators will be corporate conferences, galas and we'll speak to ceo of marriott >> we heard hilton ceo say the

same thing final topic here what's old is new again with groupon and go pro groupon blew estimates out of water saying it saw pandemic boost for people buying deals for things like botox and liposuction services and benefitting from the economy reopening for experiences. while go pro reported solid start to 2021. the ceo saying we have evolved to a successful direct to consumer subscription centric business with a significant opportunity to profit. tim seymour, i feel like i heard this story before. i remember covering go pro when they were talk about a content company. what are we to believe now in?

>> this is a subscription base service. call this the game stop meets apple of business model. we have applauded apple. we have given them the mutt appro -- multiple in terms what they have done with their business that's what he's working on and the case whether, the stocks had a major move i think a lot is priced into this good news i would probably take a pause here even though heroic move >> i see what you did there. the hero cam and emverything else seema, you covered this company's ipo. what's the revolution been like in your mind >> it was one of the most high profile ipos at 2014

it was the pioneer in the action camera market. competition came around. we always realize our iphones are pretty good now at taking photos maybe we don't need a go pro interesting to see these comments from nick about how this company squarely fits into this reopening trade more people are going out. seeking those destinations in the mountains and skiing and perhaps the need for more of these high demand cameras and rolling out the subscription service which will help sales going forward. >> let's talk about groupon. are you a user do you see the use case in the coming years >> i think it's back to what seema was just saying. what explains the botox and the lipo, you have to look good doing it >> we all know each of you look good thank you very much. from chlorine to rubber to

tanker truck drivers seems like there's a shortage of everything and you can add chicken to that list we'll talk to the ceo of riaisig cane to see how he's winging it. we'll be right back. incomparable design makes it beautiful. state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $349 a month for 36 months. experience amazing, at your lexus dealer. what happens when we welcome change?

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welcome back restaurants are feeling the heat from higher prices and tighter supplies chicken prices have more than doubles since last year according to earning berry how are restaurants navigating the chicken dilemma? joining me is founder and ceo of raising canes chicken. i've never had your product so i have to try it to give you an honest evaluation. let's talk about whether or not it's a big deal for you right now. the tightness in supply for chi chickens >> yeah, it is luckily we have been in business for 25 years and we have great

relationships with our vendors it's still very challenging just to get the supply of chicken te tenders we need to service the demand >> how much demand is there? are you seeing a return? people want to go back out, not just take out but dine in in certain locations? >> the demand for restaurant and customers is at an all time high we have not seen in 25 years this sunday on mother's day, open table just released that it's up 900% for this time last mother's day obviously, that was through pandemic it's up over 70% pre-pandemic. it shows you restaurants demand are through the roof we have a lot of challenges. one being labor. two being commodity cost and three for me getting the supply of chicken i need to service that demand. >> with that demand profile that you expect on the line, you probably have ambitious growth plans. what exactly is the labor supply

issue going to do those growth pl plans? we just heard a big jobs report out this morning it appears the higher situation is starting the slow down a little bit and many small business owners are saying they can't find people to hire these days is that true from a restaurant operators perspective? can you give us the real skinny on this? >> i've never seen the demand for labor in the restaurant industry higher than it is today. just common sense, everybody should be hiring at one time everyone restaurant is re-starting. normally an apply kants might look at one or two restaurants when they are considering a new job. now they are looking at a dozen. what restaurants are doing now is they are offering signing bonuses. they are going higher wages to attract people because they can't keep up with customer demand they can't keep their restaurant staffed. we're experiencing the same thing. being a larger business, we're

able to do things like retaining bonuses. we did three million of those in first quarter. my heart goes out to the mom and pop independent restaurants that don't have the same resources we have >> what are you paying, what kind of benefits are you are y extending? how are you competing? >> some restaurants like to do signing bonuses or higher wages in a tough time. i don't believe in that philosophy because i think sometimes you get people coming to work for your company for a wrong reason i like retention bonuses just in the first quarter alone we are at 3 million and we expect that to continue in this tough labor crisis. >> where do you think the hottest markets are for your restaurants? geography speaking, are there certain places you expect a

bigger surge than others >> it is across the board right now? we are up 10% pre-covid levels we are as busy as we can be and reopening the dining rooms slowly where it's appropriate. everybody is coming in across the board in over 30 state it is demand is just as high across the board. great for the economy and the industry if we can just hire people and keep the costs down and get enough chicken. >> todd graves saying he needs to hire people check out cane's chicken good luck with the campaign. >> thank you. all right. still ahead, is m&a on the way for regional banks what's at play and what's next you can watch us live on the go with the cnbc app on your mobile

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and that - that's actually worth more than you think. don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. which shows will you be getting into tonight? how 'bout all of them. netflix. 'cause xfinity gets you really into your shows. when one burns for someone who does not feel the same.

daphne, let's switch. from live tv to sports on the go. felix at the finish! you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this on x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch. welcome back the spdr regional bank kre is

enjoying the longest monthly winning streak ever. so are expectations helping to boost the banks? our bank expert wilfred frost is here we have seen some deals. >> we have good to see you. we always seem to be waiting for the wave of banks m&a in the u.s. and haven't a tsunami arrive but ripples last year's purchase of bbva is followed by svb with boston private and m & 2 buying people's united. there's a need for consolidation pre-covid to compete with the growing fintech. but the critical extra factor for the first time in over a decade banks have plenty of capital and the share price

appreciation make buybacks less 'tractive than they have been and increase the incentive to do something strategic. a few other factors to watch out for, the size. the biggest eight banks are out of the running for making acquisition. mergers of equals worth watching out for. like that formed trust and historically the most successful long term without the need to pay premium for an already elevated bank share prices but delivers and analysts favor those deals the most and then the rationale, scale applies but to increase geographic exposure or deepening existing exposure in a set region like m &t and people's deal

here's kbw's biggest name os ten potential sell list. wintrust, bank united, associated cadence and eagle ranked by asset size not market cap but ones to keep an eye out on. >> it's a fascinating trade to watch play out and we oftentimes associate closely with the community banks and fun to see how they play out. thank you very much. see now at 3:00 p.m. eastern time today. >> thank you. coming up on "power lunch," despite record high home prices, an analyst said there's no housing bubble we have to push back on that a bit. "power lunch" is back after this quick break.

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hello and welcome to "power lunch. 266,000, all the jobs created in april. some expectations were as high as a million so what went wrong? stocks are loving that disappointment markets gaining, especially the tech stocks because the fed might stay on the sidelines for longer and if interest rates fall will that push potential home buyers into the market? we'll talk to an annual igs saying