welcome to pro"power lunch." we're glad you could join us on this lovely day. they're $800 billion apart but the gop and white house seemingly inching toward an infrastructure deal. >> yes we'll have the latest and the best stocks to own plus the bold call of the day. why one expert says we ban to bite crypto fight ransomware. >> masks off makeup on. i know i'm wearing mine today.

you know me. we'll take a look at ulta as "power lunch" starts right now >> we begin today in washington as the tug of war for infrastructure continues senate republicans unveiling a $1 trillion offer as they try to build a bridge to a deal the negotiations have come a long way ylan mui has the latest. >> reporter: kelly, earlier this week president biden did come down on the request. now republicans are coming up. the latest gop offer is for $928 billion over 8 year just there's $506 billion for roads and bridges and $4 billion for electric vehicles. $72 billion for water

infrastructure and $56 billion for airports. >> i think that shows that there's a real huger for bipartisanship in the united states senate, a real ability to achieve that and hoping this moves the ball forward. >> reporter: senator capito has spoken briefly with president biden about the gop counter offer. biden told reporters on the way to ohio today he plans to meet with republicans again on the issue next week and wants to get it done soon but in just about half an hour biden will make the kase that the infrastructure plan is popular not just the spending side but the higher taxes on the wealthy and corporations that remains a red line for republicans. instead the latest gop offer is paid for through repurposing covid relief funds and infrastructure refinancing back to you. >> you'll stay with us as we continue the discussion on the back and forth on the infrastructure bill and what

some possible outcomes could be. let's bring in libby cantrell head of public policy at pimco they may be $800 billion apart on the spending side of the deal but where there is no togetherness is on the question of raising taxes to pay for this bill the republicans aren't going to have any of that, are they, libby? >> no. that's absolutely right and that is a nonstarter for republicans. they have been very clear about that from the outset our expectation is if there is a bipartisan deal it will not include tax increases. however important to remember if there's a bipartisan deal it does not procollude democrats are moving and passing another spending bill then funded by tax increases so our expectations is that tax increases will happen

it is just a question of which vehicle they will be in. >> that's interesting because what i'm hearing you say, libby, is that you could take away the tax increases out of this bill and come to an agreement simply on the spending. the president says he doesn't want anything less than a trillion the gop is at what 928 billion. that's just $72 billion -- give the guy the trillion you know what's 72 billion among enemies? ylan, give me your reanction to the idea that the taxes could be taken out of this. >> yeah. i think that is certainly a possibility because i think one reason that the white house has been pursuing the talks with republicans is one philosophical. joe biden likes to make deals. he knows mitch mcconnell but also, a practical reality of

the fact that they're not sure where the consensus is within their own party for addressing those tax increases that wec hav been talking about how long should they go? should salt be included? they've not been decided within the democratic party and need to pursue the negotiations with republicans to ensure there's a legislative outcome to point to to say, hey, we got something done though we won't agree and doing this deal could give them space to figure out where the party is on the thornier issues. >> it is interesting i guess ironic that the two senators from west virginia, capito and manchin, such pivotal figures in these negotiations where do you think this thing ends up? do you think that they will eventually agree on a spending program aimed at infrastructure?

if so, again, i guess a sticking point is how do you define infrastructure >> yeah. look the doorway is still absolutely open to a bipartisan deal. that bipartisan deal would likely entail sort of traditional infrastructure, roads and bridges and water and broadband. but it could close pretty quickly. the following week will be quite critical in terms of figuring out the direction here but if again that door continues to be open these negotiations could last for several more weeks and you could see again a bipartisan infrastructure deal this importantly from a markets perspective and economic groetd perspective. doesn't prevent another more partisan spending deal funded by tax increases.

i think that's the important point in terms of our economic foernging, whether it's two deals or one big partisan deal doesn't necessarily change the economic trajectory. >> you could sever the two sever the spending from the tax thing and then come back to another spending bill and, ylan, don't we get the 2022 budget does it drop tomorrow? >> we do the white house will release its 2022 fiscal budget tomorrow. it will include longer term outlook. this is important because the administration has as many as three potential bites at the apple to using that sort of fast track reconciliation process to pass bills with only democratic support so they feel they have a number of opportunities to come back at a potential spending and tax package that may not get republican support they can do this through the

next fiscal year so they have breathing room and space to come back to the idea of a big spending and tax package if they can't reach the deal with republicans. >> thank you libby cantrell, we thank you have a great weekend both of you. kelly? if the infrastructure does go through, what stocks could benefit? let's get some names from todd gordon at trading analysis.com what i love about your picks is not the conventional names you point out industrials are up 75% since the election so where should i turn? give me examples if this all goes through. >> sure. thank you for having me. the infrastructure bill is so wide reaching why it is fun to look at the sectors and industries so let's start out in the ev battery plays there's 4 billion earmarked currently from republicans for ev 65 billion for broadband i think picking the winner is

tricky because the car companies are getting in and barrier to entry is low and tesla ultimately will win for a variety of reasons >> okay. >> do you want to go there or go more in the specific infrastructure play names to start? >> we are showing the basket of the picks so you have tesla, you have apple, people might be familiar with albemarle. tell me about shyft. >> sure. apple is pretty simple just that they have i believe right now 20% of the 5g phone market and expected to go by 5x in 5 years so it's unbelievable what the future holds for apple i think the market has a long way to go interesting article in "the journal.

today. you have 5g and then it goes back to 4g here in new york. but the shyft group is interesting. this is a move to commercial truck. it is a hold in the portfolio within the commercial vehicle within industrials this name is strongest we watch back to 2020 inl this name is stronger. not a lot of people talk about it they had a couple recent acquisitions and make the transmissions for commercial vehicles, trucks that are transporting a lot of materials. so from a technical point of view it can break out above 29 1/2 and maybe up to 50. >> albemarle in the ev battery space. as people digest the picks and why they would make sense as

beneficiaries what about the traditional plays? we always hear about vulcan and caterpillar. do you have a different reason they may or may not benefit? >> i think they have been an underperformer for a long time looking at the rotation models that we see, the more technical read materials is underperforming for a long period of time so the outperformance we see is mean reversion on top of hopefully getting the infrastructure play to go through, this bill to go through and would be amazing the infrastructure play is walking alongside this new tech bull marnt ket that we are in if you want to talk about tesla i think tesla's a play i think people are not quite giving elon -- he is launching i

think 200 or 300 satellites in outer pace he's commissioned to 30,000 or 40,000 i think it is clear what he is doing. if he can link up the global high speed coverage and i lost the internet coverage today, if he can link that up in terms of seamless connectivity the passenger cars and taxi service, whatever shape or form that takes that's game over tesla will win the ev model and i don't think -- he's saying that's not the play but i don't know how that's not in the back of his mind. >> if i had to bring it altogether i'd say it's not your father's infrastructure package. what you described is a 21st century infrastructure build >> can i throw one more at you >> quickly.

>> te connectivity jim cramer loves that one. another electronic sensor play watch that one. >> ter rific. thank you. a fintech law professor says the most effective way to stop it is to ban cryptocurrencies. he'll make the case when he joins us looking pretty at the cdc loosens the mask restrictions. why the beauty names could be the ultimate reopening play. "power lunch" will be right "power lunch" will be right back ♪ ♪ ♪ ♪

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welcome back the meme team is reigning supreme today. amc and gamestop is soaring and capping the gains this year. amc up 40% today both of these companies have gained 1,000% or more since january inflicting nearly $2 billion of pain on the shorts. kate rooney has the latest. >> reporter: it feels like january. the battle of gamestop investors and the short sellers is still raging on and this week the short sellers are losing those betting againstac, gamestop and virgin galactic lost roughly $1.8 billion as those stocks moved higher. this is according to data firm

ortex. the prices rebound and year to date gamestop short sellers are down more than $6.7 billion this year the short squeeze back in january helped send those gamestop shares up by more than 1,600% and this week on track for 40% gains and down slightly today. amc and virgin galactic with a comeback this week part of the rally could be short sellers trying to close out the positions by buying back some of the shares causing additional demand and likely institutional investors jumping on the momentum mentions of amc on reddit and wall street bets are on the rise why that stock has dethroned gamestop as the most mentioned ticker another one to watch beyond meat that is back in the top 20 most mentioned names for the first

time since november. back to you. >> let's another look at amc up 50% today at one point. we started to see liquidity come out of the market and thought it would undermine the entertainment driven rallies and today it's shocking. yesterday on twitter amc 500k tremding and meaning $500,000 a share. to them 26 bucks nothing. >> that's right. another hash tag trending was amc squeeze so we look at the data and the hedge funds look at the same thing and seems like there's the phenomenon where people are like professional traders are jumping on the momentum trades and see what we see in terms of mentions bank of america had a great note out this morning about the formula for the next reddit

trade. short interest and then mentions on reddit and other names that they can now predict what will be the next run-up and momentum trade and definitely partially due to some of the institutional investors. >> hang out in the forums, too the point is that it's social. not secret thank you very much. >> exactly thank you. >> for more stocks to watch go to cnbc.com/pro. another reddit darling, cryptocurrencies the next guest said the popularity of crypto and rise in ransomware is no coincidence he's making a case by crypto needs to be banned in the name of cyber security. he is a professor and executive director of global financial market center out duke law and joins us now lee, welcome >> thank you. >> why don't you make the case

here you have a powerful friend essentially in the form of warren buffett and his sidekick says i don't want any part of something that's a mean of exchange for fraudsters. >> i have never met them but it is a privilege to be considered a friend of theirs but look. i have taught fintech law and policy for five years and it is only recently came to this conclusion where i live in north carolina you couldn't get gas for close to a week. it was like that all over the southeastern u.s you look at ireland right now for the past two weeks their national health system is shut down because of a ransomware attack cryptocurrency is around over ten years now and enough time to take a step back lawmakers, regulators and all of us and assess what benefits did it provide what are the costs

when you look at what links the ransomware attacks it is cryptocurrency it is time to go after the incentive underpinning the attacks. >> what do we know about the percentage of ransomware attacks that are paid for by the use of cryptocurrency a lot of the attacks are not even reported. is it 100% >> frankly, we don't know. there's obviously a lot of companies who have good reasons to pay the ransom and not letting the authorities, customers. "the wall street journal report"ed last year over 2500 cases of ransomware to the fbi, up over 60% from 2019 why they report that the hackers or the victims paid $350 million to hackers. the true number is probably in the billions but again we are never going to know because there's an incentive not to report.

>> it is a plague amongst small and local businesses who don't have resources to deal with this they're all just paying the ransoms. they look up to the biggest players in town and a guest earlier this week suggested that companies should be banned from paying the ransoms and that in conjunction the government should come in and help them clean up the mess. and resolve the issue. what would your advice be? you propose banning crypto others proposing banning ransom payment just talk through the merit of either one or are both of them over broad >> i think it's all of the above approach look there are those who say that we should just have the private sector improve the cyber security standards and then the attacks wouldn't happen and if that's the policy that we pursue we are condemning private

businesses in this country to an arms race they cannot win. how's a rural health care provider in north dakota or a community bank in topeka compete with nation state attackers? north koreans. the russians they can't win that race right? so i think it makes sense to ban ransoms paid in cryptocurrency but of course that will only be effective if the victims comply. if you have 5%, 10% of firms the pay it on the down low and report it then that won't be effective so the tool is follow the money. how did we get al capone tax evasion. go after the financial incentive that the attackers have and it's cryptocurrency without cryptocurrency ransomware would not be the plague that it is. >> this is a fascinating topic and i have a feeling if i check

something, twitter, reddit a thread -- i will get down here people are already lit up and i mean lit up over what you have just said and i hope you'll come back and maybe pair you with a guest that joins the argue frmt the other side could be a terrific segment. have a great weekend. >> you, too. thank you. >> thank you. the bank ceos testifying at the house financial services committee. jamie dimon threw down the gauntlet and wilfred frost has the details. >> yes indeed. that sound bite. it kind of continues, jamie dimon'srelatively feisty approach tothis set of hearing we got a glimpse of yesterday. >> what do you see as the greatest threat to the financial system right now and to your company? >> public policy probably not acute in the united states of america and not taking a

leadership role in the world for the rest of our lives. >> congressman first and then when the other ceos posed that question gave one word answers like cyber security. that answer from dimon did come across a little bit like taking on the lions whilst in the lion's den overall probably the most combative conversation today not too heated overall. >> all right thank you very much. looks like he is poking the bear there by saying public policy is the main problem thank you very much. coming up, check out this mystery chart climbing today on strong earnings. today's earnings reveal an under the radar real estate play before break tack a look at shares of airbnb up today nearly 5% after rbc initiated it with an outperform. that's 30bucks of upside

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launches a new value pack product in the canadian market between that and new aurings in the partnership with kfc in china, beyond meat is up 30% just this week on pace for the best weekly gain in about a year the other publicly traded plant-based player oatly is also up today and still not far from the price it debuted at on the nasdaq back over to you. >> thank you jirngs let's get to leslie picker for a covid update >> the global partnership bringing vaccines to less wealthy nations needs help the world health organization is asking for 1 billion doses to kovax this year. india's surge produced a shortfall for june and covax needs $3w by a week from now to lock in supplies through early next year. vaccinations in the u.s. have led to looser covid restrictions and americans are

responding for the first time since they started to asking the question, less than half of the sample reported soernlly distancing in the last week jirngs in australia fewer than 1,000 people died in the pandemic. melbourne, the country's second largest city is starting a 7-day lockdown due to a cluster of 26 cases in russia some veterinarians are vaccinating animals to reducing transmission to the humans and pets. >> it is amazing. >> it is amazing. >> vaccinating animals thank you. market's higher between the reopening and the infrastructure deal hopes and the risks like inflation labor shortages. which way are markets heading? we'll talk about that. is beauty in the eye of the shareholder? very good. ulta beauty set to report after

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let's take a look at the markets. in the green not by much in a couple cases nasdaq up .03% industrials up by a third percent. s&p 500 at 4200 on the nose. russell small stocks are big gainers today being carried by an improving economy, up 1.1%. let's check in on amc. it is skyrocketing right now and hitting the highest level in four years that gain you see there nearly 40% for the day at 27.10 it was higher earlier but that is way up. >> wow let's get to the bond market with rick santelli at the cme. >> we had the last of 183 billion in supply with 62 billion 7-year notes today and

pre-covid it would have been 32 billion and see how supplies really ramped up look at the chart. you can see that we made the high yeebld right as we ended the auction and started to slip. if you look at the month in total with 5 year and 30-year rates on the same chart they look at the double bottom. looks like maybe rates turn here and pay very close attention 1.60 is a technically significant level with regard to the close in 10-year this morning second time around the block on the gdp for the first second quarter the pricing index is up 4.3%, a 31-year high back to 1990. finally the dollar is trying to get the sea legs back but against the chinese currency you see we continue to get soft on it we continue to drop. continually over three days making fresh passes at

three-year lows. back to you. >> all right next guest has thoughts on this. thank you. as stocks rally with the averages higher, the nasdaq on track to close the month higher. the next guest said the bull market is still young and first time since it began he thinks a correction or pause is likely for this year. let's bring in jim paulson great to have you. so many places to start but let's begin with inflation given everything that rick was talking about. you are not in the runaway inflation camp but a chronic issue this year? >> i lean that i'm not i could be still convinced otherwise because who knows for sure >> sure. >> i think the deflationary forces are prevail and after a surge tied to the cycle i think we'll get back to greater price

stability again and hopefully i think that will allow this expanse and this bull market to continue. >> the really curious thing about the discussions is like you said you can make the case for higher inflation and much higher earns per share for the s&p 500. think about what that would mean for the s&p. >> yeah. wall street's estimates right now consensus are like 185 for this year. i think they're way too low. we -- the first quarter numbers for the s&p 500 came in at an analyzed run rate of $200 already. >> wow. >> if we do 200 in the first quarter it is a good bet to end up around $220 by the end of the year and if you just put it in perspective we have like 30 times trailing multiple right now on the s&p 500 but if we waffle around and maybe go down a little bit let's say end around 4,000 on

the s&p and $220 earnings we have a multiple going into next year 18 times and suddenly an undervalued market below average since 1990 so i do think that this revaluation period we might be headed for is necessary and it is a good thing to set up the foundation of better value foundation for the next leg. >> why are you and everybody in the camp especially if everybody's saying it is choppy now and then look great on the other side doesn't feel like the manrket feels that way it will be great and why we are off the lows the way that we are or some unforeseen problem that we are headed to you know what i'm saying this is interesting where everyone seems to say it's choppy but then it will be all right. >> i agree part of the reason is that every bull market since 1982 had a

similar pause time what i call re-val time because when the bull takes off stock prices go north and earnings south for a first year of the new bull and what happened in this bull market as a result of that valuations become extreme as i said we are trading at 30 times trail. that's happened in the past, too. we had revaluation periods mid-'83 to mid-'84 2004 to 2005, 2008 to 2010 all about a year into the fresh bull and here's what they did. the multiple in the '80s reval from 13 1/2 to 10. the multiple in the early 2000s re-val 22 to 19. and i'm thinking this one might

take us from 30 times to 18 times trail. in each case - >> what does that translate into in terms of a decline in the s&p 500 or the dow how many hundreds or thousands of points are you talking about getting shaved >> not as much as you think. it's a great question because part of the process is it begins once the e economy and the earnings start to recover. so what happens is the stock market generally is flat it is sometimes often suffering a correction but of a year about flat while earnings are just soaring. most of the revaluation is done because earnings come back i think we had a 10% to 15% correction in the '80s something similar to that in the '90s and we certainly did in the 2009 period. we could do that again but they

come back quick so we could be flattish with a correction in the middle and then earnings are higher and it sets up the next leg. >> all right very good. jim, appreciate your joining us. dollar, china and the rest in the future. the space is crowded which name will rise above the rest our traderwi ds lliscuss that. after this

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welcome back we begin with breaking news out of washington on china ylan >> kelly, the senate now has the votes to move forward on a major package of bills to make the u.s. more competitive with china and around the world the latest vote tally that i see is 67-33 this is a bipartisan vote. the senate needed 60 votes to make this happen and this bill would include significant funding for the chip sector. 52 billion for the semiconductor industry and $100 billion for

advance research and development and establishes a national semicon dub or the technology center and ten regional innovation hubs around the country. so this is a significant and major piece of legislation aimed at the u.s.'s innovation and competitiveness around the world. it still needs to go through several procedural votes before passage in the senate and then passed in the house but a sign that democrats and republicans are working together to pass major legislation in a bipartisan fashion perhaps signals what could be to come on other priorities like infrastructure. >> very interesting signal thank you. let's go now to seema mody and trading nation. >> acorn is planning to go public via spac. here's the ceo earlier today. >> over 4 billion paying subs

trending to 10 million great retention and great gross margin so leaning into growth. want as many people on the platform as possible as fast as possible to put the responsible tools of wealth making in investor's hands >> so what is a best investment? let's bring in the team. bill and john. john, fintech is a winning trade whether it is the private or public market. where do you see opportunity >> fintech is a great accelerator in the pandemic. we were moving to a cashless society before covid and now advanced further so we think this theme has a long way to run and a way to play it is finx which is the globalx fintech etf

owning a basket of stocks to benefit from the trade and also to get exposure to sort of a crypto network infrastructure play a lot of these companies have exposure to that. we think it's an investment trend with a long runway ahead of it. >> bill, two names >> i like ally financial a lot it is cheap. nowhere in some of the valuations of the fintech companies but the stock has melted higher. i think we get to 61 here near term point of sale stuff. ai on loans. marketing very well. another one i like is paypal i own it and square but paypal with great technicals right now. held good support why above 260 it could really start to run and looking at $300. thank you both and a note, nbc universal and comcast venture are investors in acorp. cnbc has a strategic

partnership. kelly? >> yes thank you. after the break as restrictions lift and people hit the town lipstick sales are surging. will this provide a boost to makeup stocks? we'll talk about that next on "power lunch." >> and now the latest from trading nation.cnbc.com and a word from our sponsor.

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ulta beauty is set to report first quarter earnings after the bell one analyst bets as people take their masks off, they'll put their lipstick on. he has an outperform rating at a $360 price target on ulta. so you think consumers are going to go back to putting their face on, as the saying goes, or at least that's what my mother used to call doing it. >> yes you look at ulta last year and cosmetics is half their

business makeup or cosmetics sales were down 50% last year with the reopening trade, not having to wear a mask, categories such as lipstick, foundations, blush, all those things will start taking off. >> what is ulta's edge in this market that makes them a good bet, high margin, a better bet, for example, than any of dozens of other places where people can buy cosmetics? >> ulta's secret sauce is that they sell masks and prestige products under the same roof at the same time you can buy the more premium brands such as estee lauder and others inside their store. so they may go in to buy the mass products and then trade up. so we look at it as a one-stop shop for women for all their cosmetic products. >> looking at their stock performance and it's only up 14% year to date why is that? >> so if you look at ulta shares and go back to when some of the

positive vaccine news came out, it's had a massive rally since then as we saw the vaccines from moderna and fpfizer, i think it ran ahead of strong trends this year what we've seen with estee lauder with ulta, they had strong gains last year and this year they have been muted for really the entire space. >> what about its valuation, it's selling at a slightly higher price than historically it has could that be one of the reasons why the stock isn't performing, because people think maybe it's a little overvalued? >> i think valuation is starting to become a little more challenging. you look at ulta, it trades at 31 times earnings, and we're seeing the same thing for other beauty names so i think there's a lot of investor enthusiasm out there for these reopening plays. i do think to a certain degree there's high expectations and as a result you've seen some

profit-taking in the recent weeks. i think that's a big wild card today. all that's expected very strong delivery it's just a question of will it meet some of the elevated expectations out there. >> i tend to judge stores by whether they hang on you never seem to see an ulta stores close gap stores close macy's stores you see. but ulta you never see them close and that's a good sign you walk buy them and there are people in there, just like there are at the apple store do they have an online side as well, and how does that do >> so online is really strong for ulta so last year it was more than 30% of business. we think this year it could be low to mid-20s you go into stores and it's very experiential you have a makeup bar in some of the locations, skin bars, so they really have a great experience we spend a lot of times in

stores especially at grand openings, you'll see lines of women standing outside to get in years ago a number of consumers would be waiting in line so i think that's the other secret sauce to the model is they are very innovative and find a way to get you in stores. >> they are up a little bit today. thank you very much, we appreciate it. up next, what is best buy rklling us about the housing maet we'll take a look under the microscope don't go anywhere. at cdw, we get these new ways of working bring new threats. that's why we started an office commune. not a security concern around for 50 miles. unless you count the wolves. and all the llama milk you can drink. you know at cdw, we can design a security solution using hp elite devices with real-time threat intelligence to help protect your data from new threats, anywhere you work.

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welcome back best buy reporting better than expected sales today dom chu is here to explain. >> 37% jumps at sales at existing store locations it kind of shows you some of the momentum behind the stay-at-home trade. we've talked about it a lot over the past year plus at this point. we've mentioned lowe's and home depot as the primary beneficiaries of the stay-at-home, do-it-yourself trade. best buy is up as well and got a big boost because of those better-than-expected results one of the things that the ceo mentioned specifically in the earnings release and subsequently on the earnings conference call is maybe these stay-at-home trades are here to stay and best buy could be a beneficiary. she says we believe the nesting phenomenon will continue to drive demand for products and services that help customers improve their at-home experience this is the key.

its products and services, because we know that best buy is selling things like computers, laptops, also appliances, home theater setups, all of those things you need for stay at home, learn at home. but it's also the services side they're keying on because they have a whole business tied toward getting people setup in their homes, installing those tvs and theater setups and everything else. one other place to watch whether or not that trending is in check, logitech. this is a record high and that might be a signal that that stay-at-home trending continues even with computer peripherals like logiing tech. >> i was hoping we could burn our -- >> i know best buy years ago was making a big bet in that area with thermostats and home security and so forth. >> but it's the services, right? one other stock i'm going to show you here is dish network.

they have a small division within their company called on tech services that also sells things like smart home equipment and everything else and the installers that come to do it for you. so dish network also, you can see there has been a beneficiary over the last year or so. >> truly under the microscope. >> installers is what i need dom, thank you kelly, great to be with you. great to be with all of you too. thanks for watching "power lunch. "closing bell" right now. thank you, tyler and kelly welcome to "closing bell." i'm sara eisen the s&p 500 is inching closer toward a record high as we kick off the final hour of trading. >> i'm wilfred frost let's have a look at what's driving the action today weekly jobless claims came in much better than expected hitting a pandemic low industrials like boeing and honeywell are leading the dow in hopes for an economic recovery pending home sales this morning coming in weak and durable goods orders fell for the first time in a year. we have 59 minutes lef