good afternoon welcome to "power lunch. i'm tyler matheson with kelly evans. millions of americans are out of work same time companies have millions of job openings what is going on in the labor market what are the data really telling us plus, the burrito cost more.

they have to pay more and so do you. we have a deeper look at inflation and stocks. meme stock mania taking over the impact the reddit and robinhood traders have on the market just the s.e.c. chair says he wants a broad review "power lunch" starts right now let's get a check of the markets. as we start off the hour we have the down about 50. the s&p higher oh so close to a record high today. the nasdaq leading the way with a gain and once again the action is in the meme stocks. gamestop higher ahead of the earnings report after the bell only adding 2.5% today amc, wendy's and bed bath is lower. clover health pulled back. traded three quarters of a billion shares

today's volume a million more on that coming up clover down 3% and bitcoin climbing in the day. now up about 11.5% 36,000 and change. ty >> we begin with america's labor crisis seems there's a disconnect with the jobs data we get from the government and other sources yesterday we found out that job openings hit a record 9.3 million in april jobs on offer. more jobs available than the economy lost since the start of the pandemic steve liesman is going try now to make sense of the numbers steve? >> i'll do my best they're very confusing one answer looks to be that the economy has grown and need more workers than before the pandemic and suggesting the labor shortage could grow and get worst. oxford economics thinks some 2 million workers may have retired early because of the pandemic

and the participation rate of those 70 and older plunged immigration leaves jobs unfilled there's not the normal influx of workers from abroad and jobs could be in different places where low income workers haven't or can't move to where those that fled the pandemic liver and work there's a calculation of the job short falls are. 2.1 million more job openings than that were in january 2020 where are those extra jobs accommodation food service, trade transport and utilities. all those are just the additional jobs since january 2020 economists think temporary benefits end and then schools reopen and could be lingering shortages. for example from early retirement or permanent decline in immigration and would play a

role to drive up wages. >> i'm hearing that people are advancing the retirement don't want to go back to a office and just staying out of the market and others waiting for wages to come up. >> that's definitely hearing that anecdotally and in the data one thing is that you are able to retire but also get unemployment benefits without a work requirement in some federal benefits i talk to people saying we'll see what happens people may feel okay for now but either they may get to a point where they feel like they need to come back to the workforce or wages could rise to the point to bring people back in and we know that the rate is below where it was before the pandemic hit. >> steve, thank you. as steve mentioned some expect the distortion in the jobs market to level out in the fall but that doesn't necessarily

mean that the inflation caused by these distortionis will go away let's talk about that with diane swank. dan greenson i hope that i got that right is it solace or solace there's no solace in getting this wrong. >> it's solace >> solace. >> we can forgive it. >> thank you, dan. let's get to the topic at hand the labor conundrum. we have more jobs on offer than unfilled -- lost since the start of the pandemic. what are workers waiting for, dan? >> yeah. there's clearly three things on or we the economics house think so child care issues. covid hesitancy. and obviously the generous unemployment benefits. with respect to the covid hesitancy it is important to

note just four states, new york, new jersey, california and illinois, it is only four states and account for quarter of all employment and to the extent that the population in those states is a little more hesitant about covid than the others you understand why some portion of the population is reluctant to come back to work and when kids are back in school and hopefully some of the benefit top up expires some distortions are probably going to fall by the wayside. >> diane, react to what dan said there and layer in inflation it used to be that rising wage costs, labor costs were the -- when you started to see that you really started to see inflation and not a transitory sort. is that what we see in the economy now and is that wage pressure going to turn into enduring inflation

>> certainly that is the greatest concern and that's what we have to watch most closely. i see it as we're sort of getting friction on re-entry we unleashed pent-up demand in savorings with three stimulus packages that has unleashed pent-up demand and businesses are trying to open moth balled facilities faster than they think get workers to show up the mobility point, both that steve made is important, many workers are not in the places where the jobs are right now and that's a problem, too, with high gas prices before a splash down and hit the cool waters of a splash down, are they something that's a one time sort of step function in wages or something to see wages continue to compound upon each other?

my own take is that it is more of a sten function in wages and seeing the legacy effect of the hazard pay that was paid out in the height of the pandemic and the larger companies oftening that hazard pay and doesn't mean they keep rat ccheting up the wages and you need the vicious cycle and looking for not to happen this time around but having the frictions, interesting new york fed acknowledge that reservation wages in part because of the $300 per week are higher and people who are looking for jobs in the same surveys don't realize the jobs are there yet and the mismatch on that, as well steve noted and you noted at the top that a lot of these jobs have come back in accommodation, food, retail, hit hardest by the pandemic the extra jobs listings from

january 2020 doesn't mean anywhere near actually needing to hire more people but reflective that we didn't have to advertise them as much. i recently heard a statistic from the hotel industry saying they were going through the cleaning staffs three to four times a year the entire staff in terms of turnover. that's a lot bmp this all happened. >> i am curious because the pandemic collided with millennial household formation why what about the women that don't want to go back and don't have to because there are new ways to work from home or the husband has more commuting flexibility? what impact will that have over time >> do you want me to go first? >> that's a big issue. >> dan, go ahead. >> yeah. listen all these items i think are on the margin you know

there's no doubt that the economy looks different than pre-covid and pockets of differentiation if you will in terms of behavior but as a general rule it is 9 million unemployed people. not all different than pre-covid. as diane noted there's a little bit of a mismatch as the economy reopens but the most positive takeaway is some of those things are going to fall by the wayside and so while there's irses in the short term and some portion of the unemployed population act differently than before but the hesitancy, the generous unemployment benefits, when they start falling by the wayside i don't see any reason why higher gas prices are going to prevent the million plus job reports that we thought would happen, i

don't see why that would prevent them from coming. >> diane, final quick thought to you. >> yeah. i do think that this is the natural part of what was an extraordinary crisis and causing disruptions getting back up and try to rarp up there will be mismatches, a process and a step function. it is not something that's triggering a vicious cycle and the bond market doesn't see it if you ever told me this much inflation and debt and the 10-year at 1.5 i would never forecast that. >> that's a whole other konks. >> -- conversation. >> yeah. >> thank you so much, diane and dan. kelly, in my town, our next door neighbor works with a florist and the event business drives the market and the events are coming back. prom, graduation, parties. >> sure. >> he says i cannot find enough

workers to keep up to make all of the arrangements that people want same woman in town who owns a small and very nice bake shop saying i can't find the workers who will want to come in early and work long days and make the cupcakes that i can sell. >> and the thing about that is as you mentioned if you can't make enough for what people want it slows the economy. >> it does. >> that's high prices to hurt as much as cause higher cycle. >> customers get frustrated. what do you mean you can't giver me 40 table arrangements saturday >> finally ready for the reopening. >> yeah. >> people want the flowers. >> it is friction. >> it is happening everywhere. whether inflation is temporary or not what should you do to get ready in terms of investments? is it time to look overseas. plus a windfall from the covid-19 treatment the stock leading with merck

more in a moment look at virtue financial which are dropping after there's order flow we'll speak with the ceo about market structure tomorrow on "power lunch" we are looking at the risks and opportunities, the problems and the promise with crypto. stay with us it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

welcome back to "power lunch. we are tracking outperformance in the big pharmaceutical names. merck, johnson & johnson, pfizer up a little bit over 1% we could say. no new highs for the names but johnson & johnson is trading within 5% of the january 26 all-time and merck is best performer of the group after striking a deal to supply the government in an oral treatment for covid-19 back to you. >> thank you. we have heard about inflation in the u.s. economy and what we're seeing right now everyone agrees it is here why go to the gas station and see it no one knows how long it will stay but no matter how long might you want to change the strategy our next guest has a potential

alternative. currencies currencies not cryptos. joining us is director of investment research. rebecca, welcome let me begin before we get to that and the discussion of inflation with something that stood out to me. you orbed that 40 years the financial markets outperformed the real economy probably by a multiple maybe it's 10x i don't know what it really is but a lot and you say that now it may flip and the real economy may outperform the financial economy. if the real economy is growing at 2%, 2.5% a year and that's the base rate, that doesn't speak very well for what i should expect. explain and explain the consequences. >> sure. it is great to be here good to see you virtually. the idea here is that over the last several decades we have seen rising profit margins

that was transferring wealth t capital holders than the broad economy. seeing declining interest rates and when we look ahead there are seasons to think that this could change and in some ways that could be great it could address some of the problems that have come through this which includes wealth inequity and what could make it change higher corporate taxes, the possibility of more regulation around certain industries in particular we are looking at higher inflation. possibly a sea change in nominal interest rates with inflation you can have low real yield but higher nominal rates and we still are seeing fiscal easing and we believe that policy makers continue to push that fiscal gas pedal until they hit a barrier, excesses, so

we could be looking at a period of time seeing the real economy doing better than the financial markets so as investors it is not something to get our heads around for a long time and thinking about what would i do you might have to do it in different ways and that probably segues us into inflation. >> that is the perfect segue then to the next so what do i do? where do i put my money if implicit in what you are saying is that the traditional kinds of financial assets performing well for me may not in higher interest rates where maybe the money market fund is good again. >> wouldn't that be a nice change >> go to the bank branch. >> right tell me what to do. >> there are plenty of ways to

still get a good return. thinking about equities there's a lot going on under the hood why what companies are going to be able to pass on higher prices to the end customers, for example? some equities do better in this world than others but looking at equities overall and go bag over several decades looking at 20 periods of rising inflation equities had overall positive rurps but less than average and specifically they also underperformed the average return and broad baskets of commodities, gold and inflation-linked assets and part of this new world we think about, a strong, real economy, strong enough, right but one with more inflation in it you want to make sure you look at the portfolio saying am i protected? and that gets to the question you started out with is this sustained or temporary inflation? we know that when we look at the

measures we use to gauge inflation pressures at bridgewater they're the highest levels of 40 years and we know is that a lot of forces to pull inflation down secularly over a few decades like globalization, like less pricing power for workers we don't know if it that's inflecting but pausing so the possibility suggests to review the portfolio. >> quickly turned third and round it to home for me. where do currencies fit into this strategy and are we talking about a developing country currency, european currency, what >> sure. stick with developed markets for a moment in the interest of time if you look at the last call it 20 years we had low, stable inflation and when you saw an uptick that's initially an

improving cyclical story you had higher yields and good for the kunz and not always been that way if you had higher inflation you got weaker currencies and tends to be the norm so what we're seeing today is the market is starting to discount higher inflation. they're not discounting more currency volatility. so the risk we think people should be aware of is that if inflation continues to pick up and we see that translating into more volatility and not necessarily central banks reacting the same way that translates to currency volatility and as a global investor for the last 20 years the bulk of the return from the asset and not the currency and now think about both levers of the total return a lot more. >> thank you so much >> great to see you. >> great to see you. we appreciate it. coinbase is higher today but

a first sell rating on wall street up about 2.5%. check out shares of casey's general. the stock sinking despite results down 4.5%. we'll talk to the ceo about the craving for pizza and inflation creeping in and much more. stay with us on "power lunch." incomparable design makes it beautiful. state of the art technology makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer.

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all right. welcome back first up we got lordstown motors spiking right now. the company saying substantial doubt about the ability to continue and they are in talks with parties to raise capital. so you see that and then coming up. >> another stock targeted, geo group. it's climbing short interest for a prime target for a red ddit squeeze they say >> close your eyes open them up 58% raymond james with coinbase. crypto exchange. the firm saying they expect significant pricing degradation.

over time coming to trading commissions on that one. for more on that call andother go to cnbc.com/pro. ahead on "power lunch," pulse on the economy casey's general store said covid disruption is wearing off and all to do with pizza and soda. reddit rise. where did the retail rebellion start. and the hunt for tax leaks an investigation into the release of billionaire tax information. all of this when "power lunch" returns. ing and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate

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back to "power lunch." u.p.s. with the biggest decline following the investor day and investors not that happy with the 2023 forecast. revenue, overall margin is 12 to 13% and domestic margin 10.5% to 12%. the ceo says the business shipping is a revenue driver volume increasing 36% last

quarter. the company not giving all guidance but the carl tome said eps above $12. back to you. >> let's go to pippa stooevens. >> no great to be here in englewood cliff just a volatile day for oil today. crude started high and those gains quickly faded after a disappointing inventory report check on the prices here wti down at $69.86. brent crude dipping to $72.14. crude stocks declined last week for the third straight week. falling 5.2 million barrels. but on the flip side a surge in gasoline and disty lats offset

that and memorial day weekend didn't provide the surge in demand that traders had been expecting. refinery rates at the highest levels since before the pandemic began. back to you. >> i missed the bookcases but you look great there in front of our tiles. we love having you in the house. >> great to be here. >> to the bond market we go and rick santelli has no bookcases but the cme. watching i'm told the cpi tomorrow for a clue on the inflation transitory or not. explain. >> it is very interesting because if you look at a chart of cpi year over year from the last look a month ago you will see that up 4.2 the high esz level since september of '08 and year over year core 3% why the highest since 1996

but something's going to change tomorrow let's go to the white board. here's a consumer price index. month over month march, april, may. on headline. looking at tomorrow for year over year and core same thing. but that's the end of jit there's no more negative numbers and in core. so when we look back tomorrow we might see moderation in inflation and see the dynamic, the thought process showing up everywhere big block trades reversing the closest fed tightening treasury just down about 6 basis points part technical and a lot of buying thinking it might be transient. after the 8:30 number we'll have many more clues about whether it's transient or anchoring.

kelly, back to you. >> while we have you there's a lot of demand for the reverse detos. what does that tell you? >> yeah. i think it's huge. you are right. over half a billion for the first time in the reverse repo market it is complicated in the weeds topic. think this way institutions have so much money and don't want to lose it so they park it on this fed facility which is basically even zero interest rate the bigger the more we know how much liquidity is out there and it will move. >> is that the number yesterday or the day before saying all this money on deposit at the fed? is that that money >> exactly. >> bang, i got it! >> it's a parking lot. a parkinging lot of cash and many believe that by about july or august that number is going to be 800 billion per day.

>> whoa. thank you. >> especially if it goes the way it is. check out casey's general down 5% despite solid results. boosting sales 13% in the stores and the gas pumps 6% shares are down. it's a largest convenience store chain across the midwest and south and with pizza it is the country's largest fiftd pizza chain. stock up 15% this year darren joins us now. welcome. so let's just -- i guess, look for a moment at why the street is disappointed with these results. as a proxy for so many stores like yours, tell us about looking through the summer into the fall how strong is demand going to be what kind of workforce do you anticipate to have what's going on with pricing

pressures? can we stay in the sweet spot or not? >> hey, kelly. thank you for having me and great to be here like you said we just wrapped up a record year for us 18% earnings per share growth as an all-time high $729 million in ebitda another all-time high. our comps have great momentum. into the fourth quarter like you said really with strength in the prepared foods business so i guess what i'd say about today's trading is it's a great buying opportunity for investors to pick up our stock at a low moment in time pulling back a little bit but we see a lot of momentum moving forward. we have already started the first quarter. the fiscal first quarter with great momentum as we come out of the pandemic and one of the things that's unique about the business like you mentioned is that we have this big prepared foods business and when the pandemic hit last year that was

probably the portion of the business most negatively impacted as self serve food shut down in a lot of mui inicipalits we are seeing that unravel morning traffic is growing not back to 2019 levels but we feel much better about where that business is going the breakfast and lunch business is improving so expect that to improve over the course of the year. >> ceos hate to talk about the stock price on any given day but let me ask you if you think the market is misunderstanding something. let me get you to answer that one first and then do you make more money selling gasoline when prices are high or low >> i'll go ahead with the stock first. a focus area on the call this

morning was our outlook on operating expense and it was a little bit higher than i think people expected. there's reasons for that we have made the two largest acquisitions in the company' history. i don't know that that was fully captured so we said operating expense to grow mid teens percentage but that was driven off 9% store growth. so most of that is just incremental units and same store sales run rate in line with the historical numbers so i think our team is on sell side calls as we speak and i think sorting through that i expect that to be a temp rare reaction. >> do you make more money when the gas prices are high or low >> our volumes are up.

we just wrapped up the fourth quarter with volumes up about 6.5% over the prior year so getting better certainly. we don't necessarily make more money on gasoline when prices are high versus low. that margin tends to normalize at a rate. it is usually more the journey that you take. when prices are moving up the commodity price moves faster than the retail price and then the backside of that curve when costs start to drop retail moves slower so the margins widen but over time it tends to normalize. >> all right thank you for your time today. thank you. and el salvador, the first country to make bitcoin a legal tender does the mover make bitcoin seem more legitimate to investors our traders will break bitcoin

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sorry! ♪ ♪ welcome back to "power lunch. bitcoin clawing the way back after hitting a three week low on tuesday the flagship cryptocurrency up over 9%. el salvador makes it a legal currency let's talk to the team today todd gordon and delano el salvador very small doesn't legitimacy the use case and then there's concerns about. >> i'm a long term holder of

bitcoin. we're recently short bitcoin we have covered it we have a trading service and neutral and looking at the technicals you saw 53% drop in 2016 we just saw a 53% drop we could go lower but right now i think we're neutral. there's sort of bad things, bad narratives weighing against it investor reluctance. a storer of value they have competition. governments trying to regulate elon highlighting the mining concerns and the decision not accepted as payments other thing with cpi watch the tips inflation starting to break even if that number is not hot watch bitcoin's reaction and that will start to tell you it's a hedge bet. >> delano, every time you see a

sharp pullback bitcoin has come back is that enough of a reason to get back in here. >> yes i was still in a very buying trend and still there and bullish and still buying and a lot of reasons mentioned by todd is you have an adoption from a country that is actually using it for the use case that people are positive on and seeing a country to possibly level the playing field for a lot of folks in the country 70% of people in the country don't have financial services readily available. so we're still buying and still bullish. >> looking to break above 36,000 here delano and todd, thank you for more head to the website, follow us on twitter. >> thank you. speaking of bitcoin, tune in to "power lunch" tomorrow spending the whole hour by the end of the hour even i will understand it.

we'll hit everybody single angle from investing in it, regulation, mining, environmental impact here 2:00 p.m. eastern time on "power lunch. >> nfts? tweet us any question and try to answer everything. shares of vir chu financial are falling today. they're down about 7.5% on the news we'll speak with the ceo about this in a moment and you can bet he has a lot to say. don't go anywhere. >> and now, the latest from trading nation.cnbc.com and a word from our sponsor.

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we're getting a check on the several meme stocks. amc, clover health and wendy's down more than 10% at the moment and the volume is absolutely huge especially when you compare it to the similarly priced stocks in more stable corners of the market. priced stocks in more stable areas of the market. $19 clover trading more than 300 million shares today that's 700% of its 30 day average volume $20 regents financial trading well under its 30 day at just under 3 million shares wendy's and enter point have similar prices wendy's volume is crazy when compared to center point "power lunch" will be right back

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trading our flow is saying i can give you better execution depending how much i pay you for the order flow i think we need to take a look at that. >> those comments are sending brokerage stocks like charles schwab lower virtue financial down more than 7% the company's ceo joins us right now, along with bob pisani. >> fresh offer his appearance at the conference, chair gensler said there is concern over amt for order flow and investigators may not be getting -- is it true are investors getting best execution when they send their orders to you. >> thanks, bob, for having me. i really appreciate it and i very much enjoyed watching the chairman's comments today and look forward to engaging with him. the ecosystem for retail is

incredible we will be releasing a study that goes through what true price improvement is in virtue on its own in to 20 provided $3 billion of price improvement back to retail investors an investor in this country can pick up a smart phone of any time and for no money get a better price than any institutional investor in this country. it is phenomenal what has happened i welcome a review of this i think when smart people look at this they will conclude that the ecosystem really works for retail investors >> another point that chair gensler was making is this is commission free trading but there is a cost that is taken out of this. the implication here is somehow you are somehow exacting a toll, stealing data. do you take data from people and use it do you have an informational advantage? what really goes on here what was the chair talking

about? >> to be candid that one had me scratching my head i have heard that from critics of all different types frankly the opposite is true the brokers from which we receive orders are world class organizations, you know their names. they protect their clients' information. we never see anything. there is zero client identification we get a order, 5,000 shares of tesla, we want to buy it it comes from broker we have no idea who the underlying customer is whether they send the order in today or five minutes later. the market maker is at a tis advantage. because we are two sided across 200 different brokers saying send us your orders. we have to take them when they are market orders we can't reject them. the informational asymmetry is against the market maker i really -- [ no audio ] -- categorically false.

>> chair gensler also said that you as a market maker could have a bit of an advantage because you could transaction in -- you could transact and subpenny increments whereas the exchanges could not. would you have any problem if they allowed the exchanges to conduct exchanges in sub-penny kremts. >> 40% of the orders sent to vir true we don't internalize them we try to reflect them on exchanges. we reflect non-marketable limit orders on exchanges. if there was more midpoint liquidity on exchanges it would save us hundreds of millions in both price improvement and exchange fees. we will be happy to have more partners that would post liquidity at mid-point on exchange we have welcomed that. my friends have said the same thing in public testimony. this isn't about lack of competition. there are eight wholesalers, up

to 15 or 14 i forget national security exchanges four dark pools. we are all competing all of the brokers are multibillion dwlar organizations with as much technology as they can buy. they send orders to all 60 or 70 of us where they think they can get their best execution that's to provide a service to their clients. to think that those. >> gantic institutions are somehow falling down on their duty, that's frustrating i know it is not correct. >> i know you are going to be talking to the s.e.c. about this i wanted to move on to the meme stocks. >> sure. >> we have been talking about this for days now. you are very involved in the trading in that and the execution of that. do you have any observations about the volatility of these meme stocks? and you as a market maker, what observations do you have about the nature of meme stock trading? >> look, i mean, obviously, we

see the same things that everybody else would see, it is driven off of momentum, and there is significant momentum. the one thing i would say is we have two sides to our business a retail business and institutional business it should not be lost on people. this is not solely a retail phenomenon there are meaningful retail traders engaged in the cash equities market and the options market that's what our markets are for. we should be making it as frictionless and transparent and as reasonable as we can. there is a lot of institutions and professional traders, speculators, whatever you want to call them both engaged in the cash equities market and the options market we want to make sure there is appropriate suitable people know what they are doing and they get full transparency. otherwise, that's what marks are here for they are functioning quite well. >> there is observations that large traders are much more involved in this than appear to

be doug see few thank you for joining us the ceo of virtue. kelly, back to you. >> quite a at the same time, ty, about it is not just the retail public >> i thought he was ready to take my order with his headset there. did i hear him correct esaying the retail investor can get as good or better a price as the big guy? >> that's his argument we will see if it wins the s.e.c. over. that's it for "power lunch." we will see you tomorrow for our crypto special "closing bell" starts right now. >> welcome, everyone to "closing bell." i'm sara eisen at the new york stock exchange will today be the day we finally set a record for the s&p 500 the index is trading around those levels as we head into the final session. >> what's driving the action today. treasury yields are falling again with the ten-year dipping below 1.5. giving a lift to the tec