>> slg >> all right joe. ftnt >> all right steve weiss. >> poahy >> okay. good stuff, everybody. thank you. thanks for watching. "the exchange" starts now. thank you. welcome the we're digging through the rubble we have a five star tech fund manger with three names to buy on this dip. the crypto collapse. of course we're all over this one. bit coin sinking as china cracks down coinbase experiencing technical problem. we have all angles covered and why the chips are falling into place. we'll have the latest out of washington let's get right to it with today's sell off

dom with the numbers >> a sell off much more intense just two to three hours ago. we're well off the session lows at this point. 33,798 the last trade for the dow. the nasdaq keeping pace. 13,222 the last trade there. one of the reasons throughout the course of this morning that you've seen some out performance on a relative basis from the nasdaq 100 and composite is megacap technology stocks. yes it's consumer discretionary. alphabet, communication services these megacap names, as you can see there, have held up very well considering the level of sell off that we saw over the course of the morning so far when shopping list come spoo play on dips, often, oftentimes the megacap stocks

checking on what's happening with coin base you mentioned at the start of the show, coinbase is below the listing. well off the high we saw an intraday base. you can see 225 the last trade there. off 6% earlier this morning in the pre-market it was down 10 to 11%. technical issues a lot of foex colks couldn't bu sell crypto. coinbase was taking it on the chin earlier it's recovered some of that now. probably having soft its losses at this point. back over to you >> tough time for that one gins the ipo. thank you very much. let's talk about the catalyst for this weakness in crypto. china cracking down and leading to a massive plunge in the price of bitcoin over the past 24 hour p s. the country is further banning financial institutions from providing any services related to digital currencies.

eunice is live in beijing with more >> reporter: the hashtag crypto world crushed is trending now on chinese social kbleed with a will the of investors trying to determine how aggressive beijing will get to try to cool off the cr cryptocurrency craze beijing reiterated guidelines to financial firms as well as online payment providers at the same time, ali pay, wecheck as well as the other banks are still being allowed to work with crypto exchanges that have been banned and relocated offshore years ago that's been read here as a sign this is more o of warning by beijing and not a full blown crackdown. china heavily restricts most crypto activities but it does tolerate regular people owning

crypto currencies. digital tokens an there's a lot of gray area here so people use technical work arounds to get onto those crypto currency exchanges such as binance. the chinese have been feeling the pain of the crypto losses. there's been several local immediate kra reports. one of them was interesting saying in the past 24 hours hundreds of thousands of liquidated their pogs some have been pan basicing after sales traction ans actions were rejected the single biggest loss is $67 million. general consensus here is that for the most part, this is really seen as warning but there is a lot of bad language being used main ly directed at elon musk,

not so much the government >> we talk about bitcoin as the crypto barometer but is the most popular, the most liquid one in china? >> crypto or bitcoin? >> is crypto the most important for the chinese public now >> it's probably the same as what you'd see overseas is bitcoin is seen as a standard duh t but there's been a will the of interest in other digital tokens one tech executive i spoke to said that one of the street stall talkers who he was talking to was asking him for tims on doge coin. there's a lot of awareness there' so much concern that people have

been using gray channels the get money that exist out of the country in order to take bigger risk and get into the more s speculative sttrades thank you. will other governments follow china ease lead across the dploeb and what impact could have it on the regulatory process here in the u.s., if any. joining me is emily parker it's good to see you again there we are 40,000. we are massively off the lows even as we debate what's going on with this crackdown >> welcome to the crypto market. it's never a dull moment here.

there's not a big change in terms of what they are doing the warning nonthels significant because it's a signal. what china's government is most worried about is anything that could endanger social stability. they want stability. they don't want unrest they're concern is new investors will get into the market it's another dog coin was wildly popular in china cently. i think most people would say it doesn't have fundamentals. >> i guess another question is

let's put this in context for the cases for owning bitcoin it seems since last fall two major things have happened we have been through fin tech apps for the general retail public we have seen massive institutional demand from big insurers like mass mutual. even corporate america thinking about putting some of its cash reserves into bit coin are any of those cases for owning this asset which is supposed to be fix at a 21 million coin supply, has any of that changed regardless of what's going to happen with its usage in china >> i think that's a great question i think the larger narrative about bit coin is that it's institutional involvement it's institutions get involved that's what's driving up the price. i don't think this one is happening in chie na will basic that over the long term. this is not first time china did this that really sent shock waves throughout the global crypto

market it precipitated the bull run right after that we just -- i don't think this is going to cause a long term effect if china seriously cracks down and changes it ts s policies th will be another story. i don't think it will cause long term damage. >> it's interesting to look across the crypto classes. we have ether down sharply let's not get into doge coin is it a chance for people to make that case >> definitely. there are definitely people who say that ether and all these other coins are not tied to bitcoin. ether is used for a lot of other

things i think it remains to be seen but i don't think we'll necessarily see a crash in all coins across the board >> it's interesting they would be selling off at once. are they likely to go to etherereum and where might the dip buying be coming from? >> that's a great question there's investors that understand the difference between these different coins. they know what ether is being used for they know the fundamentals and there's going to be investors looking for a good buy nay will go down the list and say there's bitcoin and there's ether and what's the next. i think it will depend on the investors. >> absolutely. thank yous so much for your time

today. >> thank y with crypto under it's not skjust bit coin at ris but the companies related to the mining of under selling pressure the stock is down 13.5% today. could itbe at risk of losing more of these gains? let's get out to josh lip ton? >> it operates two big segments. you have chips for the big cloud vendors for use in their data centers and chips used to improve video game performance in pcs and notebooks those are used for something else to. crypto currency mining demand can be strong as crypto prices move sharply higher

nvidia doing that because he wants to make sure his most dedicated, loyal customers can still secure the nvidia products they want. bryson says crypto mine sg not a core market for nvidia this is a risk that investors should be thinking about demand can drop from crypto miners from the nvidia products as well. he still has buy on nvidia he's fan of the data center business they report earnings results next wednesday back to you. >> a good reminder of the companies caught up in the k

krip -- crypto craze warner immemedia hbo says ta supported tier will launch first week of june that's $5 less than the ad free version. this news just out from their up front ad presentation that happened just now. to put that pricing in context, hulu with ads is $6 a month. there's three other ad supported services that cost $5 a month. peacock from cnbc parent company, paramount plus and discovery plus all those $5 a month. the big question with the news this week is how that new company decides to bundle hbo max and discovery plus together or perhaps even combine them for a new bulked upstreamer. >> we have been coming this week the launch of significant political ad campaigns

i watch youtube that i've paid for to not show me ads what happens to the advertising industry in household like mine. i have not seen any political ads. i have not seen any campaign ads. i haven't seenfully consumer p products i see in ads >> that's the thing. some people willing to pay and other people would rather get something for free and have it ad supported or would rather pay a little less and get ad support. there is a market for ad supported streaming. i think the real appeal for advertisers and for these companies that doing the ad supported services is they are doing digital streaming, you can target someone so much better with an ad that is so much more valuable than if you're just showing them an ad on television this is really the next generation we're hearing a lot about that this week. >> that makes a lot of sense i wonder if there's regulation to say for the households who

don't want ads, they have to watch a campaign ad every now and then we appreciate it for now thank you for pringing us the latest news on the pricing of hbo max. the xlk sector etf is on pace for its worst month since october. my next guest says it's time to buy tech but the names he's pieing might surprise you. square and paypal are under pressure as bitcoin sells off. are these companies too reliant on crypto? we'll bedatedebate that in a mo. t-mobile is the leader in 5g. we also believe in putting people first by treating them right. so we're upping the benefits without upping the price. introducing magenta max. now with unlimited premium data that can't slow down based on how much smartphone data you use. plus get netflix on us, and taxes and fees included!

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welcome back stocks are selling off with some of the tesla is down 22%. my next guest says the pull back is creating buying opportunities but not necessarily in some of those biggest names. mike, welcome. thanks for being here. >> let's start with why you're not necessarily pounding the table on a name like amazon or t

apple now. you do have a lot of the bigger names. where is your enthusiasm is my question for some of the bigger names. >> everybody knows the amazons andapples of the world we look for companies that differentiate for us some of those are llged for you guys some of the mid cap tech companies. >> one more question because you're echoing something that we're told yesterday she was very excited about opportunity in amazon which she said had not gone anywhere for a year but was not buying apple. why isn't apple if your portfolio. you said going back to the research driven nature of what you do, why is that one sitting out? >> apple is much more of a

replacement company. replacing existing iphones they had a burst last year where everybody worked from home the innovation level at apple is not the same today as it has been years ago just because where we are in thedevelopment of things like the iphone and the ipad i think apple is great company but we find better return opportunities across some different companies in the prodspr broader technology sector. >> you have three in particular with the likes of zoom info. >> zoom info is one of the leaders in business to business data, software and intelligence. they help companies target customers, improve the speed of their go do market their sales people to be more efficient. you'd think this is market going on for a very long time.

businesses today are just starting to use data to gro th -- grow activities. they have multiple products. they're doing sales enablement buyer intent, recruiting this is a really unique company. right now growing 50%. we think for a long time will grow 40% with free cash flow margins at the 40% level you don't find many 40-40 type companies out there. >> also ring central >> they are focused on unified dijation voice, video and messaging we are just scratching the service of the penetration of cloud mun indkmooun communicat. ring central is one of the leaders in this space.

over 200 million of the 400 million legacy seats are partner of ring central. that's another business we think can accelerate with over the next several years expanding operationing and free cash flow margins. >> i want to ask if you're sticking with pinterest which is down 13% a lot of our audience might be interested >> we are sticking with pinterest. the engagement has held solidly.

losing a couple of million people looking at the platform but not kfocusing on the shoppig sections of the platform, i don't think is significant we believe it will grow at a solid rate >> i could keep this going for quite some time. thank you for being here today we would love to continue the conversation >> thank you for having me on. coming up, as crypto sells off, gold is hitting its highest level in more than four months before we go, let's take a look at square space. today's ipo just opened for trading. it's slightly in the red the reference price was $50 a share. we're down into about the 49 and change area. we'll keep a close eye on spsq stay with us

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noef tractor supply weighing on that index. free port is down 5.5% let's get to rahel for a news update >> here is what's happening at this hour. on capitol hill a standing ovation for 107-year-old for viola. she shared her memories. >> for 70 years the city of tulsa and the chamber of commerce told us the massacre didn't happen like we didn't see it with our own eyes you have me here right now you see my brothers. we live this history and we can't ignore it. >> former president trump says he is being unfairly attacked and abused by what he calls a

corrupt investigation. this in reaction to reports that new york's attorney general has launched a criminal probe of trump's family business in addition to a civil probe that's been going on for years. she isn't saying what has changed. see what information has come out recently and how prosecutors may join forces to investigate trump tonight. in pittsburgh, a fire in one of the most recognizable high-rise buildings. firefighters rushed to the tower where a transformer plu out in the pacement you could see smoke rising through the building no injuries have been reported back to you. thank you. the flight to safety and will big bets blow up it's coming up in today's crypto rapid fire edition it's time for show and tell. today's chart is target. it's imagining to book some gains. sales were up 23% year on year

digital sells up 50% from a year ago. >> we're feeling veryconfident about our position today we picked up another billion dollars in market share on top of $9 share last year. we connected with the consumer

it's time for rapid fire, crypto edition today it's wonderful to have you all here let's drill down on develop high flying parts of the market that could be canaries in the coal mine we're talk about crypto currency bitcoin has gone from an all time high of 65,000 there are mid-april to touching $30,000 today.

b bitcoin is down. now he's turn to ipos which ran red hot but the renaissance etf is down 20% and take a look at square space it just opened for trading after its direct listing today >> i think what unifies these things is we did see kind of a peak in retail investor risk appetite in various ways from february 12th if you want to pinpoint the day that's when you saw things like the solar stocks, spacs, ipoetf you pointed out. it's an appetite to buy the next new untested thing and believe

that we're going to have faith in future. that's about as much of a connection as i was making among those things what is interesting is the overall market is looked at all that and said, okay, that's a positive because now we're maybe a bit more grounded in terms of the underpinnings. >> are these a healthy sign for the boring s&p 500 or are they warning sign because they are the tip of the spear here? >> i think they are good for the of all market and to move this forward much more. we're at the early stages of a business cycle the is up supply chain will get fixed. to see these rolling rotations and rolling corrections is actually quite good.

>> i don't know what more there is to say about why we flushed so rapidly other than this is -- can often happen in any stock or asset class like this yet alone one like crypto. >> if you blinked or took a day off and fell asleep last night, bitcoin was around 40,000 now. cash into bitcoin in the esg argument that elon musk pointed out. there's things that pointed out. it's a high growth risk asset.

i've heard it called boomer coin it's 55,000 for the last two weeks. two or three weeks those looking for a lot of upside >> the ipo market piece of this, i'm interested the fact these are flu new stocks coming to ma, is this a correction for a healthier price point or is this telling us something they are under performance signals that liquidity will be a problem for some time? >> i don't think it's necessarily a broader liquidity issue. i think there was a complete supply demand imbalance in terms of the number of new stocks coming to market most of them spacs

it was a rush of these younger companies that were ready to go because they had been in private hantdss for so long. i think it's more di gestion of those things you went from everything trading at 20 times revenue down to 10 right now. i don't know if that's cheap but it's cheaper >> jp mor dgan is institutional investor are shifting away. long term i undendicators is positive is it time to turn towards silver and gold?

>> i think it was time to turn in fall. we developed a strategy of alternative. silver is a big part of that we own an etf of investment gold miners in block chain. it's concentrated in very few hands. it's difficult to value. what we have decided is we're going to play this differently we're going to gain our exposure to asset classes that are going to not just be safe havens but also participate in the potential green energy agenda. >> gold and silver people have been making the case for quite some time. it didn't work last year you can point to the tlar and what's going on with the deficit and other factors.

>> it does trade in line with not so much inflation fears but real yield it has been trading inversely to cr cryptocurrency there's no way not to say that it's an alternative asset that's not the liability after the state or a central bank like goad has never been. there's no intrinsic value let's not talk about what the right price or the wrong price is for either gold or crypto because it is essentially just pure crowd psychology attached to a technology. >> dpgroild gold you wear as je. this is the point you were making about bitcoin being a risk asset if they back away, that's a big problem for bitcoin bulls.

maybe we're not there yet. buyers out of that market and into bitcoin have been out of that it's not it's almost 100% correlated to stock prices some of these fund managers are coming in and seeing it in a certain way. it's this idealistic view of bitcoin. similar in way you would think about gold you hear that in the silicon valley group

pl believers agree be mike. as long as people agree it's worth a certain amount, it is. analysts have said it's a lot about margin calls today we talked about the headlines from china the bit coin options is more mature that's why i'm hearing bitcoin has moved so rapidly people trying to access liquidity of taking money out against it that's going to be difficult

let's talk about some of the companies that are more exposed here when it does decline. square and paypal. square is down about 2.5%. they have both been catering towards crypto square down 2.5% paypal about half a percent. there's companies holding bitcoin on their balance sheet like tesla if they put a portion of their cash into bitcoin, would you back way or condone that over time >> we own square they clearly have commitment to bitcoin. the company is much more than a bitcoin play i think the payment system in

the united states is archaic and changing we'll take it into consideration. owning it is not necessarily a bad thing. it just comes with the volatility and investors have to be ware of that as do corporate management teams we're not buying over stock as a secret bitcoin play. if we find a company with strong fundamentals at current valuations, it's a buy in our work >> what would you add in terms of people being exposed to bitcoin. these companies are outliers but if it becomes more common to go into crypto assets >> it was a mission statement. it's attached to this old kind

of web services business you have know that's the reason you would own or avoid micro strategy when people talk about adoption of crypto or institutional kind of adoption, what they really mean is owning, trading, lending, borrowing, arbitrage. it's not using it as a currency for transaction. >> a quick last word on this >> square has been more involved in pitcoin paypal seems like they did this in order to have people stay on their platform they want people not leave paypal or venmo. it duoesn't seem like they are s

kplited to bitcoin and doesn't atd m add much to the plans sheet. it's really not adding the bottom line but it's important in the whole eco system if others start coming out. they don't want to be behind >> it's benefitting paypal today that's almost about to compostive tell us the software name you were buying yesterday. >> adobe >> now after everything that's happened you're buying it now >> we are. we're thinking long term narrative is good for the company. we like the deal fedex >> great to have you all here. rm rm stocks are selling off but the biggest risks aren't negative it's optimism that can tip off the rotation we'll deal more into that, next.

dow is down 270. we're about half off the sexssio lows believer it or not, my next guest says optimism is still the biggest risk to the market let's bring in the chief strategist at the clock tower group. is what's playing out this week starting to give us that reset that you think we need >> yes, i think so we are still a long way from optimism being priced in the ten year is like 166 it could be much higher. that's sort of what worries me i think the equity market has responded. the bond market doesn't steam have done that i worry that as it does, it will force more rotation out of

growth into value. value has rallied off the lows the reatiootation might be litt more of sell off than smooth sell >> we have the fed coming out and there's been speculation about how hawkish they might be if talking about conditions for taper and how transitory inflation may or may not be. explain what kind of taper tantrum, if any, you think is pent up in the bond market right now. >> i think that's a really important point. i think right now is market is not listening to the fed the market has not been listening to the fed since wyoming of last year i mean they have been very consistent in their rhetoric they will look for inflation one of the reasons they will look through inflation is they have bought on board this sociopolitical experiment we have both monitor and fiscal pile will try to redistrict well

in the country i think the median investors is completely ignoring. i think they will continue to ignore it. >> if they are ignoring it, is that to their peril or benefit are they saying we don't plooefu will have to taper or it will let inflation run hot? >> kind of both why the median investor given the market action is definitely thinking that the fed is going to have to turn hawkish. the economist is expecting q4. the curve is predicting three hikes from 2023. some point that's going to be proven incorrect over the next couple months you can have sideways market but when investors get convinced that the fed will sit on the sideline that's when the next

willing of the bull market will happen. >> final weird question. if the fed stays on the sidelines that could mean higher long term bond yield just may not raise the overnight rate but you have to imagine the 10-year is higher in a scenario in which they hike rates. can stocks ignore this and do well no matter what? bound investors say if we want hider yields then we want the fed on the sidelines >> i don't know what you do as a bond investor right now why i don't see any scenario in which you're going to profit other than betting on the steepening of the yield curve next couple of months will be tricky this is the difficult part of bull market as there's a tug of war but some point when the fed relents and convinces the vefs

that we are sitting on the sidelines i think you have to shift over from bonds to equities and especially to commodities and emerging markets. the fed has not convinced the median investor they will be on the sidelines. >> with valuations pricing in a lot better horizon and financials and energy and the commodity names and possibly a wave of capital. we'll check back with you post minutes and see which leg of the trade is playing out. >> thank you so much. the semis are higher now today despite the selloff and still down 6%. could the senior citictor be one of getting a boost from

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a rough start to the day down 5% for the month why congress is working to dedicate billions of dollarings to suppot the industry ylan >> reporter: this is a bipartisan effort to give the industry $52 billion over 5 years, incentive to build or expand manufacturing of semiconductors and secure the supply chain, create new research programs and establish a technology center. senate majority leader schumer and senator leader young are leading the effort they say it's critical to compete against china. the money for chips is attached to an even bigger bill that

would invest $120 billion in u.s. r&d more broadly and provisions on cyber security and buy american as schumer wants the senate to vote by the end of next week. >> tj rogers said not to do it said it wasn't a gd idea profitful companies. you have to imagine other industries are going to be saying maybe we could use support, as well. >> well certainly. the act has a lot of money to go to the technology sector broadly. the industry, the technology industry is supportive of it the ibm ceo came out personally of it. >> appreciate it that does it for us today. fed minutes top of the hour. don't go anywhere.

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