hello and welcome to "power lunch. tyler will join me in a moment i'm melissa lee. there are millions of openings employers say they can't find workers. the real reason for the disconnect. plus, dogecoin to the moon bitcoin rebounds above 50k. grape expectation just a wine company going public via spac maybe investors can buy what they know. "power lunch" starts right now

and good afternoon, everybody. welcome to "power lunch. we begin with the markets. because stocks are rebounding yet again the dow adding about 250. there's the s&p up 59. nasdaq 2% higher but this up and down trade could be around for a while until we figure out whether inflation is -- here's the word to use a lot -- transitory hey, bob. >> hello there three down, two up still don about 1.5% for the week defensive tone overall for the week but a bounce back in the key growth areas like technology so i just want to show you the i call them thematic tech. bouncing nicely today. spop if i, zillow, all bouncing nicely and notably down for the week if you look at the new high list, there's very defensive consumer companies mostly.

a lot of food company just kraft, hershey 52-week highs. given the declines in the growth areas of the market that's not surprising it is a crazy week we are down 1.5% even with 2 days of bounces and consumer staples are up for the week. financials are up for the week industrials are basically flat but you see the real damage is in the growth areas of the market technology down more than 3% consumer discretionary with the growth stocks out there is also down about 4% for the week where are we i'm saying down is the new up. used to say. i say flat is the new up right now. the market has to learn to live with inflation uncertainty this takes months to figure out if the fed is right, if

inflation is transitory or if it doesn't go up that much. we don't know. we won't know for many, many months it's basically stalemate and hard to argue to go to new highs unless we have a clear indication whether inflation is a serious problem or not going from 2% to 2.5% i don't think the market will care from 2% to 5% the market's going to care a lot and unfortunately we don't have an answer right now. that's the main market risk. back to you. >> all right thank you very much. despite the day's gains the inflation fears hit sentiment. and the majors are on track for losses on the week as wall street tries to figure out if the inflation is transitory what should you as an investor do? lotto's bring in ron insana. michael farr also a cnbc

contributor. gentlemen, as always welcome. you heard what bob said that the market is sort of in stalemate position awaiting some determination of how high, how fast and how enduring inflation is going to be and that that is basically the governor on making new highs ron? >> to r i think we have gotten some choppy economic data giveren a new lease on the low esch for longer interest rate scenario given the dip in consumer confidence and rise in inflation expectations in the confidence data if that's sticky it is problematic but way too early to know we are coming off the easy comps as we are in most other economic numbers and hard to determine if there's an acceleration in the

rate of inflation and there is in some areas or adjusting for what happened last year. >> michael, we had a very interesting conversation yesterday at the cfo council and i'm going to cite three cfos by company not by name. pepsico, whirlpool and jm smuck o er and seeing the signs of what they think is higher inflation and whirlpool from everything input costs, metal, chips to transportation and shipping charges, freight charges and they see it as 5% for them they raise the prices about 6% what are you seeing? >> the key is everybody's seeing that the higher prices across sector.

the skconsumer is seeing them. the price of milk, bread, lumber steel is less expensive to build with steel in the u.s. than lumber theis kind of crazy. we are focused on the meaning of the word transitory. you get the higherprices does transitory mean it goes up and comes back down? or just stay up and then sort of as i think that's what it means and then we get back to the sort of 2% or sub 2% gdp growth going forward? i sense that that's what's happening but the fed is calling for a very precise result from a very imprecise and messy economic process that's evolving so this is where we're all on stage. you know that dream where you go on stage and you don't have the script that's where we are with the fed, the economy unfolding and

waiting to see what will happen to inflation all aside we have great tail winds of liquidity, the population is getting vaccinated and consumers with cash. >> this inflation experiment, ron, seems logical in a the ret call way but from the consumer standpoint they're feeling it right now and i don't usually plow through the university of michigan consumer sentiment survey but 43% said they expect prices to rise 5% over the next year and i would think that could cause an inflationary psychology and then could change the cob tours of the recovery. >> absolutely. they have a 15% savings rate and

someone remarked this morning is 6% it could be accommodated by a loose policy and loose fiscal policies right now and people might be willing to live with it for a period of time and then start to dial back the purchases if it becomes sticky it is hard to tell they're well above where they were a couple months ago in 5 year and 10 year duration and i'm more concerned about it. i don't believe you can run this really hot forever spend a ton of money and use tax policy to fix inflation. i think at some point the fed has to make a choice given how loose fiscal policy is to start thinking about thinking about dialing it back in some form or another to kind of reduce what might become embedded inflationary psychology. >> michael, i don't think

anybody heard it but i have the same dream being on the stage without the script but not nearly the skrcript i'm missing. >> love that joke. >> yeah. you know that joke for that matter -- yeah. i'll start with michael. are there kinds of stocks or individual stocks whether domestic or emerging market or value that stand to benefit in an era of as melissa pointed out a rising sort of inflationary consciousness? >> what we know in an inflationary environment is asset prices go up you have seen the houses in the neighborhood go up same thing's happening with stock prices so this is a -- a time to own quality. the stocks that are betting on

the comp, we have a huge growth rate and great sales if you don't have earnings, if you don't have a solid balance sheet you could be left behind and those future earnings growth are worth less in a lower rate environment so i like some of these stocks on sale i love disney today and facebook today. they had a great quarter at facebook this is an amazing powerhouse of a company. growing, huge market share control, advertising continuing to execute. so yes you need to own some of these assets that are going to be inflated. holding cash in an inflationary environment is a lose position. >> all right we have to leave it there. >> can i make a quick comment? >> certainly. >>dy a first cross country trip in 15 months and there's reduced capacity both planes to ian from los

angeles packed restaurants packed the recovery trade is still -- >> yeah. both of you agree on that. i see it, too, in my little neck of the woods thank you. melissa? retail sales short of e expectations just before racks of companies set to report next week. what are the key themes we'll see from the results courtney reagan has the details. court? >> the key phrase that investors will listen for is pre-pandemic levels this time last year in those year over year comparisons are messy for retail because many retailers were forced to close the stores so that looks like a mess with others open and putting up record results so

staple plays have been putting up the strongest comparable sale results ever not expected to continue forever but investors still want to see growth nonessential players like macy's, kohl's, trying to hang on to what they can in the discretionary categories but shares of both sharply higher. shareholders bet that consumers are back to buying dresses and thredup ceo said that mini dresses up more than 20% as a percent of sales since march formal dresses up 15% as a percent of sales sense march and canada goose ceo said they shifted from recovery from growth beyond pre-pandemic levels so the key is seeing demand normalize as the world gets back to work and life and pre-2020 more like a 2019 kind

of way tyler? >> what a lovely spot you're in. it has the spring greenery beautiful. have a great weekend. >> thank you. used cars and crypto currencies, anything with a car or a car sound in the name is off. vroom up 10% bitcoin back above 50 grand. dogecoin soaring all that and more congp ow lunch." if you ask suzie about the future, she'll say she's got goals. and since she's got goals, she might need help reaching them, and so she'll get some help from fidelity, and at fidelity, someone will help her create a plan for all her goals, which means suzie will be feeling so good about that plan, she can just enjoy right now.

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welcome back to "power lunch. we're tracking used car stocks up big in today's trade but the stocks had a choppy year both near break even with vroom nearly 50% off the recent september high carmack is a relative outperformer this year but not escaping the volatility on pace for the first monthly decline since october. mel, back over to you. >> thank you. >> shares of coinbase is down. the stock is underperformed down 20% in a month peaked at the ipo but the next guest sees upside from here. initiating coverage with a buy

rating, price target of $335 he joins us now. great to see you. >> great do see you. >> you make a point in the note that you have covered companies in the internet bubble i wonder why you think coinbase deserves more of a tech evaluation opposed to a brokerage evaluation. >> coinbase's business is really crypto currencies and underlying that is the block chain technology so you often get questions about the currency but it is really about a technology change as well not to date myself but like i would compare it to the internet technology impact. could be the same or greater that's what coinbase represents. >> does it represent this change in terms of how revolutionary block chain could be to the world of finance and other

industries or is there an actual component of technology to coinbase that makes it unique, that givers it a mote that traditional brokerages and banks cannot breach >> i would say the mote it has right now the most recognizable brand, the early mover we did find back, again, not to date myself but i was there in the internet age, the early movers that were -- that established the brand and willing to spend and invest on it up and down seek ls and coinbase will spend a billion dollars in marketing or close to it this year 12 percent to 15% in revenues so the moat is the scale and the recognition. like when people think of crypto, they normally think of coinbase and coinbase is doing more -- will be trading but

getting into all aspects trying to solicit and get the institutions to trade with them and custodian the assets with them and more than just up and down about the price of bitcoin. >> richard, you're making the case that this is an industry in its infancy, the potential perhaps to be as powerful or more than the internet with respect to finance i wonder if is there a comparison company, could coinbase be the walmart of this field or the amazon of this field or is it too come ppetitie and won't be one dominant player or not that either is all that dominant but you get my point. >> yeah. that's a perfect question. that's the question, the point i'm trying to make if you look back at amazon, they were selling books

i remember, great, how could they see how powerful they would be kept investing and expanding and they are the retail powerhouse of e-commerce. that's what coinbase is trying to establish in the crypto space. they'll spend a billion dollars and they warned investors this is up and down cycles. there's plenty of trading and gone through what they refer to as crypto winter where is the price of bitcoin drops but it's come back. you know even stronger through the next cycle but they'll continue to invest and spend and people will know and recognize and they'll expand the products and services they are -- lack of a better word the 800-pound gorilla in the space right now. >> there are competitors out there and don't have the brand

name you can trade crypto i wonder if you just assumed that they made zero money on the retail side, in other words, it is a race to the bottom then what does that do to the business in terms of -- what kind of pressure does that put on the other side of the business to grow >> yeah. the majority of their revenue is transaction related and retail right now and bring up a good point about the race to zero commissions. i can tell you by covering the e-broker space is zero commissions off the bat and took 20 years to get to zero. i think people are more interested in trying to understand which coins and have that availability and to trade the coins they juawant and the services the pricing is not going to be

at least in my opinion the most up front thing right off the bat. again, coinbase is -- when you think about they look at competitors or peers like weebl or robinhood as actually funnels that are bringing more people into the crypto space and as they trade crypto, when they get more advanced they'll certainly or likely take a look at what coinbase has to offer. the advanced tools in trading the different coins. >> shortly doge. thank you. >> good to be with you take care. all right. markets are bouncing back today. after a week of volatility which laggards could have the biggest comeback job openings leaping above 8 million to a record high some employers argue expanded

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welcome back i'm rahel solomon. here's the covid update. uk prime minister johnson says that the covid variant of india has the potential to derail lockdown easings in england saying that the variant from india looks to be more trance transmissible. reuters says the new mask guidance says fully vaccinated people don't need to wear a mask in federal buildings or on federal lands. tonight on "the news with shepard smith" how communities and businesses are dealing with the new cdc mask guidance. japan further expanding the

state of emergency the country is struggling to slow infections ahead of the tokyo olympics opposition to the games is growing. anti-olympics protesters submitting the petition with more than 350,000 signatures to the tokyo government calling for the games to be canceled you're up to date. back to you. >> thank you. we have new developments in the colonial pipeline hack eamon? >> reporter: yesterday we saw president biden suggest the u.s. government to respond to dark side which is the entity that hacked the pipeline. today we see some disruption of the dark side websites on the dark web take a look at what we hear now from two cyber security companies. mandiant said that darkside said they lost access to the infrastructure, including the blog, payment system and servers and said they'll be closing the

service. and sard that online posts claim that the decrypters will be provided for companies who have not paid so if you are hacked this report claims that you will be let off the hook and get the decrypt keys and there's information saying that the posts claim that darkside has promised to compensate the financial obligations by may 23rd and paying up to the other criminal affiliates and telling them when they're going to do it intel 471 said that posts claim that funds from darkside crypto currency wallets exfull traited. they were full and now they're empty. not clear who took that money and where it went and mixing service bit mix reportedly inaccessible this week that mixing we're told is one of

the key ways in which these bad guy groups launder the crypto currency and hide the source you paid in bitcoin, cab out the pieces of crypto currency to other asets on the other end of the transaction. this is an indication this they tried to stop that process we don't know who's doing this it could be the u.s. government or private cyber security companies or other gangs and the putin government could be craiging down on them. i asked the national security agency for comment and referred me to the white house and they say they have no comment at this time. >> such a great netflix series thank you. ahead on "power lunch," the growing debate over the jobs market workers say they aren't being paid enough. is there a way to bridge the

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we are just off of session highs. the dow is up by more than a percent. s&p 500 is booking a 1.6% gain to close out the week and a couple points off the intraday highs here the nasdaq up by more than 2%. the oil market closing for the day. let's get to dom chu >> upside moves here in the end. oil prices closing out the week on a high note west texas intermediate crude $65.35 world bench brent crude $68.68. prices have been as high as $66.63 and the general uptrend is in place. this afternoon baker hughes reported that the number of active rigs is to 352.

the highest count since april of last year. that could ramp up drilling activity by the way, according to aaa the average price of gasoline at $3.04. this same time one year ago it was $1.87 per gallon we have come a long way. back over to you. >> wow you see it and feel it when you fill up. i have a suv that's the gas eater dom, thank you. to the bond market and rick santelli at the cme. >> hi, tyler this morning data and retail sales a bit disappointing. the 1-year inflation outlook of 4.6, you have to go back to 2008 for a higher level another hot number with regard to inflation one week of 10s and 30s.

down on the session but up 6 for 10s on the week. up 8 for 30s on the week and for the uk and europe in general, 10-year sector closed at two-year highs back to may of 2009 10s minus bunds, the closest together in two and a half months pay attention to that. the dollar index having a rare up week but we are just about a penny above levels we haven't traded in three years. melissa lee, back to you. >> thank you. a surge of labor leading to a massive debate over jobs in ame america. governors say they're opting out of enhanced unemployment benefits rahel solomon has that story. >> so the number of states opting out stands at at least 14 all with republican governors. now officials say that the

federal benefits are encouraging people to not return to work but according to a report cutting the benefits could affect 1 million people weeks and 1 in 9 of those currently unemployed. a group sounding the alarm that opts out may not be legal. the national law project sending a memo outlining that the pandemic assistance is mandatory. >> the language in the law says that the secretary shall provide benefits to those who are in the pandemic unemployment assistance program and more discretionary for the other programs and seems more optional on the state's ends. >> it can recruit states willing to administer the benefits they saying that they have received the memo and one from

senator bernie sanders urging them to intervene and make sure that people who are entitled to the benefits receive them. >> thank you tyler? all right. thank you jo key data point is that lagging labor force participation. you see right there. for men, women and overall pandemic declines yet to come back with female workers most especially impacted. what is standing in the way of growth in the labor force? joining us now lily roberts of economic policy at the center for american progress and james pathakukis lily, let me ask you to wade in quickly before the heart of the discussion on that question that rahel was just imagining multiple state governors and more are sort of leaning this way are saying we are not going

to take part in a federal program to pay a supplement to unemployment can they do that >> i certainly think that the c.a.r.e.s. act said as the last piece speaking to that this is free money from the federal government on the table that governors are refusing and they may not be within the rights to refuse that money. >> so, james, there are lots of reasons why people decide not to go back to the workforce it is intuitively sensible that one of those reasons may be that it pays them more to stay home and not go back to most usually a low paying job is it really as clear as that? is that the governing conclusion

to draw from this? >> i think it's reasonable to conclude that that's a factor. if you're making more not working which is the case in half the time then working, it is reasonable to conclude that might affect how hard you look for a job. not that i might not look for a job at all but i look for a job 10% less than i would otherwise. along with probably still fear of the pandemic, you know, a lack of child care, a lot of things affect each other and those not looking for a job are potential child care workers and works together hopefully the factors begin to fade by the fall and these extended unemployment benefits will be fading in early september and really important the biden administration recognize this risk that this could be a factor and don't

extend the benefits past early september. >> so, lily, there are lots of reasons that work together in explaining this. how do you including inability to get child care, the fact that kids are not fully back to school or fear of the pandemic, people that used to work in food service and even if they are vaccinated they may not want to work in close quarters with others who aren't. how do you rank in order the factors that are contributing to a lower labor participation rate and so many jobs going unfilled? >> if unemployment insurance was at the top of that ranks i would expect restaurants and hospitality wouldn't be able to hire anybody and that's just not the case we saw job gains in april. we just got the job numbers last friday

job gains were actually concentrated in very low wage sectors like restaurants and hospitality and indeed does great analysis around the job market showing that gains were concentrated in in-person work so i don't think that unemployment insurance could be possibly at the top of the list of reasons but talking to workers over and over again they say i don't have reliable or affordable child care. my kids are in hybrid school maybe they're only back in-person for a couple days a week before the care is limited and limiting the ability to take jobs that's what we saw in the jobs numbers last week. additional 165,000 women forced to drop out of the labor force and that just to me shows that this is a chare giving case.

maybe it's plausible that the people can stay home but i think they would be staying home anyway and may not make sense to work a shift then to pay more for someone to watch your child than you will make. >> this is with minimum wage and tip credit and so on and so forth. lily, thank you. great to see you as always, james. ahead on "power lunch," tesla and others down. is the worst over? a wine of the time just a nev viyard cashing in on the spac craze. we'll be right back. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene

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team craig johnson and danielle shay for their perspectives on the stocks or others craig, why don't you go first? are the selloffs in the stocks a time to start picking them up? >> it is a time to pick up some of the names and selectively i would point out the chart of underarmour. this is a comeback kid story here this is a stock that has been out of favor for a while starting to show signs of turning around and the most recent stock price pulling back to $22 i think on this little pullback here we should be buying this stock and not only look good technically but our own aaron murphy follows the stock $31 price target so from my perspective this is the comeback kid to buy on the ditch in here.

>> interesting danielle, do you see any bargains in this barrel? >> yes i do i actually love tesla here tesla had a crazy run-up last year but they moved so i think tesla is looking amazing people that bought into this at $750, $800 are flushed out this is a great entry point in tesla to sell puts or buy the long-term shares for long-term investor overaural on the weekly chart there's great consolation and targeting $1,000. >> you know, folks, thank you. i think we'll spend 13 minutes meditating looking at the aquarium behind you. we'll just stay there. >> that is very calming. >> quite beautiful thank you. very calming i'm all for it going into friday

afternoon. thank you. vintage wine going public. could this be uncorking a new opportunity for investors in the wine industry? the president will join us next. and now the latest from trading nation.cnbc.com and a word from our sponsor.

one of the top 15 wine producers in the u.s. is going public via spac. joining us to discuss this is vintage wine estates president terry wheatley terry, great to have you with us. >> great to be here, thank you. >> it sounds like most of the proceeds will position you for an acquisition a billion dollars will be on the balance sheet effectively for

acquisition, so what's the vision there what's the plan? >> well, the plan with all the money coming in from the spac is to really look at expanding. we've done 20 acquisitions in the last ten years very successfully now with the pandemic it's really opened up an opportunity to look at more companies in california, more companies in oregon and washington and really expand the portfolio i think you probably know we have over 50 brands in our overall company and this really will -- the spac proceeds will really allow us to grow the overall portfolio. >> and a lot of your brands can be found in outlets like costco and kroger i'm sure consumers are familiar with them. you said because of the pandemic you can start looking at all these companies. what has changed are these vineyards under distress did they have a difficult time getting through the pandemic >> well, i think if you look at our business model, 30% of our

net revenue is done in the direct to consumer channel that's where people really struggled during the pandemic. their tasting rooms were closed. when tasting rooms are closed, that's where you really get wine club members so a lot of those folks closed on premise, so restaurants, bars across the country so if people really focus, if their business model was done primarily in that area, those wineries struggled so i wouldn't say distressed, i would say their business model is different from ours because ours really is a third done in direct to consumer 41% is done in our traditional wholesale. then we have a really great b to b business so a diversified portfolio has really made us come out on top during the pandemic and we are poised to grow. >> i notice that you are the chairwoman of the board for california's second largest cannabis company

any potential overlap there? when your wine company is looking for an acquisition, could there be some opportunities? >> upon federal legalization, i stress that, we would never impact our federal bond, butwe are looking at cannabis-infused beverages. in fact we have two foam rmulats ready to go so that's a very important component of that. so there could be an opportunity. >> okay, terry, great to speak with you, thank you. terry wheatley. >> thank you >> tyler >> thank you, melissa. up next, as big tech shifts toward a hybrid work model, inesanies are finding themselv sittg on tons of real estate and it's costing them millions of dollars more "power lunch" ahead sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um...

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welcome back the dow is up 420 points, the nasdaq adding more than 2% take a check on marathon petroleum plunging as the ftc says it believes marathon's sale to speedway is illegal and raising antitrust concerns they are extremely troubled the companies closed the transaction while they were still investigating the deal we have marathon up actually 0.9 of a percent ty. >> very interesting. we'll see how that eventuates.

san francisco companies are sitting on record amounts of empty space and offering perks to lure tenants. cnbc and tech reporter ari levy joins us to discuss. what are you finding >> what's interesting here is what's happened over the last decade, decade and a half, all of these tech companies, salesforce, dropbox, have snatched up huge amounts of real estate in san francisco, these record leases. the dropbox lease for its headquarters was the biggest lease ever at the time obviously what they weren't expecting is a few years down the road there would be a pandemic and their people wouldn't need to come into the office and the sublessees, the tenants they were renting space out to wouldn't need to come into the office. now they find themselves with space they can't get rid of and don't know what to do with and

are having to take big markdowns on so now we're waiting for the next step. the market is poised to rebound to some degree some are dropping the price of this real estate to get tenants in at a discount others are sitting on it and waiting to see what happens. so really the issue here is over the next year how many companies start to come back and are they able to start to fill up this space. >> what are the owners of these buildings doing? we're talking now about companies that probably don't own the buildings. i think of the salesforce tower, they probably do own that one, which is the tallest building in san francisco, as i recall what are the owners doing and how are they working with these tenants and then the subtenants? >> yeah, the owners are in reasonably good shape because the leases are very long leases so it's really on -- dropbox is responsible for filling that building the buildings still have tremendous value the burden is on the companies themselves if they want to avoid

future writedowns. that's where the pain point is in the market. >> ari, thank you so much, we appreciate your time today and your insights. melissa, great to be with you. thanks, everybody, for watching "power lunch." we'll toss it over to "closing bell." the dow is up 407. have a good weekend, everyone. >> tyler, melissa, have a great weekend. welcome to "the closing bell." i'm wilfred frost along with sara eisen stocks looking to finish off a roller coaster week in the green. modest declineses o on the week reopening names are winning on the back of the cdc's new mask guidance airlines and cruises are higher. the tsa said yesterday it screened the most amount of passengers since the start of the pandemic data is front and center retail sales coming in flat for april. missing estimates of a gain of 0.8%. consumer