welcome to "power lunch," everybody. i'm kelly evans. tyler mathisen will join me in just a moment. president biden on the international stage today as he meets with u.s. allies but that's just the appetizer. the big deal is wednesday when he meets with vladimir putin another meeting coming up on wednesday, the fete immediating. and their latest decision on interest raits calling it themost important meeting of jay powell's tenure and bitcoin above 40,000 thanks to another elon musk tweet we'll ask personal finance expert suze orman if she thinks

it should be part of yur portfolio. i think her answer might surprise you "power lunch" starts right now good afternoon, everyone good afternoon, kelly. i'm tyler mathisen p welcome torich prch once more. bitcoin. the stocks are all up about 15%. and as far as the broader market, the dow going the other way, losing steam throughout the session, in the red by about 3/4 of a percentage point, or 258 points remember when 258 points was huge not so much anymore. but it is still 3/4 of a percent. the nasdaq holding on to a half-point gain. kelly, so today is clearly a mixed one. >> it is, tyler, thank you so

much president biden meeting with u.s. allies today at the nato summit in brussels he's scheduled to speak in the next hour. all of this ahead of the one-on-one meeting with vladimir putin on wednesday eamon javers live from geneva with the latest for us eamon? >> yeah, hi, kelly take a look inside right now the briefing room in brussels. this is where we expect to see president biden momentarily. reporters are gathered there now waiting to see what the qulout come was from this meeting he had with turkish president erdogan. there you see some of the video of that meeting earlier just a short time ago reporters were allowed in for what they call a pool spray. it was the quickest pool spray i have ever seen president biden said he wasn't going to say anything in particular after that. that raises the question of what happened in that meeting and what were the particular takeaways from it. and you can be sure that reporters in brussels are going to ask biden about exactly that. so much tension points in this relationship, particularly about who's buying what military hardware from which country. there's a dispute over turkey's

push of the russian 16s-400 missiles and then of course there's the u.s. removal of turkey from an f-35 weapons program a lot of clash points in the relationship we don't know how long the meeting lasted we do know how long the pool spray after it lasted and that wasn't very long at all now we'll wait and see what the president has to say in this press conference a short time from now. of course the big event on wednesday is the biden-putin summit so many critical issues there including cybersecurity which is going a key focus of this week and the question is whether or not president biden can do anything to stop the russians from these ransomware attacks we've seen putin has said he doesn't bear any responsibility for it, it's nonsense to accuse the russian government of having any involvement in that. biden has said putin could stop it if he wants to. the question is other than talking points here in geneva on wednesday what will the u.s. side be able to do to back russia off of this ransomware

at attack that it clearly has embraced, kelly. >> eamon, i'd-like to pick up there with a follow-up question. nato is largely a defense-oriented organization, but it is also a major bulwark and proponent of democratic norms, democratic practices. and prime minister, president erdogan of turkey is anything, it seems, but a democrat so that is an underlying tension, is it not, with respect to the united states, the leader of nato, and its member turkey >> yeah. and tyler, that's a really good point pp i was just on the phone a couple of minutes ago from here with ambassador john bolton who of course was donald trump's national security adviser during the trump administration and he had his own difficulties with president trump. he said the key here for biden in meeting with erdogan is just to keep turkey in the alliance,

nato alliance, overall because you do point out that there is the sort of autocratic tendency in turkey versus the democratic majority in nato but from a military and strategic perspective the democracies will probably want turkey in the alliance rather than out of the alliance even though the turkish government does seem to be playing footsie if nothing else with the russian government in terms of some of the weapons and some of the strategic alliances that they've -- strategic choices that they've made. so the question there is how do you keep turkey in when they're going in such a different direction politically, ideologically and the like that's the challenge for the president in this meeting we just saw maybe we'll hear him momentarily explain what if was that he presented to president erdogan >> very interesting. eamon javers, thanks very much beautiful shot there in geneva we'll be checking in with you i'm sure during the rest of the day. as president biden kicks off his first nato summit, remember, it's hours later there, china

and russia are very much the focus. there's also the proposed global minimum tax rate of at least 15%. that's getting a lot of attention. and here with more on the key issues and what's at stake this week is tony ferato the founding partner at hamilton place strategies he's also a former white house deputy press secretary always good to see you, tony why don't we start with nato and work our way back to g7 issues since nato is right in front of us, the meeting with putin the aproech of the former administration, mr. trump's to nato, was very different from this one's but what they have in common is the desire to see nato members contribute, or punch up to their weight in nato am i righton on that >> you're absolutely right, tyler. it goes back a number of administrations. i remember having these discussions in the bush administration as far back as 20 years ago, this question of the

shared responsibility of nato countries to, you know, live up to their defense obligations of 2% of gdp. the biden administration, trump administration, objectives on this are exactly the same. rhetorically very different. the trump administration, president trump himself was very publicly critical of these countries. less concerned with i think some of the objectives we talked about earlier, about what this collective security is intended to protect, which are these democratic and, you know, western ideals that nato's there to defend. it's a defensive organization, and it will be defending them. biden administration agrees with that and we'll hear a bit more rhetoric from them on those topics as well-. >> yeah, i think that's a really

interesting point. we're defending western ideals, liberal -- though not sort of liberal in domestic politics, liberal democracies in the idea of that. let me just close the loop here before we work our way back a little bit and then look forward to the meeting with putin. would you say that president -- let me put it this way does president trump deserve some credit with his tough rhetoric and shaming and naming countries that didn't measure up to that 2% have they increased their contribution to defense? >> i think we can give credit to the trump administration for putting that pressure on nato also to jens stoltenberg, the secretary-general, who has been s very forceful on this as well. we heard some of this in the last few weeks of some members pining for the pressure that president trump put on them. they're still going to get plenty of pressure from this administration as well-. i think it's a -- this is an american view.

at the same time i think all these administrations need to recognize that if you're going to come in with the presumption that you are the leader of nato, you are the leader of this collective security organization, the bulk of the responsibility is always going to fall on the united states and i think we want it to be that way we want to be the leaders. we're always going to want the bulk of that responsibility. >> let's work our way back to the g7 and the issue that is probably of most interest to our audience, and that is the proposal of 15% minimum tax on corporate profits. tell us where that stands. obviously the united states even at today's low corporate tax rate is above that number pp we're at 21% now pp president biden would like to see it go up to 25%, 27%. where are the g7 on that number? because a lot of them don't even tax those profits. am i right >> none of them tax those

profits. the united states is the only country that taxes the overseas profits of its companies so american firms are at a disadvantage just starting right now. trump administration put a particular kind of minimum tax thattops up. so if you are in a so-called tax haven and depending on how you calculate your taxes you're going to get a top-up tax. it's very clumsy but it has been effective in applying additional taxes to american companies if that's your goal i think everyone agrees, g7 agrees, 139 members of the oecd have all agreed-to-be part of a process to try to get a. minimum global tax so you don't get quite the same global tax competition pp i think the 15%, secretary yellin said she's concerned about a race tot

bottom president biden has said this. you have to imagine it's going to be a race to 15%. so the goals for a lot of companies or countries to get to 15%. we're the only ones who do it nou and i think we want to see not just real commitment, not promises but there's nothing stopping these countries today from doing exactly what the united states does for their own companies. >> we're running out of time, tony i know we both agree that china and figuring out the west's relationship with china is job number one for this administration and probably many administrations to come. let me ask you about putin quick thought. what should our expectations be? what should we look for in terms of this is going well, this is a blowout disaster >> i would not look for it to go well, to be honest with you. in fact, i think it's sort of a strategic political objective here to be tough for both of them for both putin and biden to be

tough with each other pp you're not going to see the helsinki friendliness you saw with president trump and president putin that we saw a number of years ago. i think you're going to see both countries having a need to be tough with each other. so i think the rhetoric is going to be pretty strong and i think that's what we should expect >> right >> if you have -- >> always great -- >> yeah. we do have to work together. we are going to find ways to work together. but they have to start-off by being tough with each other. >> got it. that's the theater of the moment tony fratto, thank you very much kelly. >> tyler, thank you so much. coming up we are two days away from what trader paul jones says is the most important fed meeting of jay powell's tenure what he says to do when they don't take inflation that seriously. plus personal finance expert

suze orman will join us toweight weigh in on bitcoin and much more stay with us on "power lunch." ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.

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welcome back to "power lunch. we're tracking some weakness in materials with every stock in that sector trading in negative territory today, and in that realm metal and mining stocks are among the worst performers one of the etfs that tracks those names sticker xme is down more than 2% after hitting a fresh 52-week high just two weeks ago.

names like cleveland cliffs, u.s. steel and scnitzer are the biggest losers although all have had gains of 50% or more >> not too shabby. thanks so much we're just two days away from the next fed meeting and billionaire hedge manager paul suter jones today on "squawk box" said this is a crucial moment for the fed >> i think this fed meeting could be the most important fed meeting in jay powell's career, certainly the most important fed meeting of the past four or five years. and the reason why is because we've had so much incoming data thatchallenges both their mission and their model. if they treat it with nonchalance, if they say we're on path, things are good, then i would just go all in on the inflation. on the inflation trades. i'd probably buy commodities, buy crypto, buy gold

>> let's bring in jim paulson. he's the chief investment strategist at the luthal group paul tudor jones basically saying if the fed doesn't do anything it's all on the inflation trade. but you're saying you think we're already tapering here in markets, so you're not seeing kind of the same threat as he is explain what you are seeing. >> there's certainly a potential threat i'm not necessarily saying that. no one knows what's going to happen, kelly-w inflation. but i would say that what's not getting enough attention is historically the primary monetary mechanism outside of the fed funds rate has been the m-2 money supply and that has undergone an incredible tapering already in the last three months now. the nominal annual growth in the m2 money supply peaked out at about 27% at the end of february and it fell all the way down to 18% at the end of april. in real terms if you take inflation out the real liquidity

growth has gron 26% down to 13%. that is, there's already been a havl halving in the rate of real liquidity growth in this country in two months and it probably fell further in may when the real numbers come out. in fact real liquidity growth might be back into single digits again when those numbers come out. my point is that it gets very little attention but while the fed can affect the money supply a lot of the money supply's the result of private sector individuals like you and me making liquidity decisions so we're managing it we started tightening it at the end of february. look at the financial markets. they're doing just what you'd expect if there's been tapering going on you know, since march the stock market overall is up just a little bit on the s&p. russell 2000 has yet to reachieve its high that occurred in march cyclical stocks have now rolled over in recent weeks and are

back to where they were in mid to late march overall. and growth stocks of course have gone nowhere tech stocks have taken a hit if i go to the bond market i think it's extremely curious bond yields start to go up right when the liquidity curve started to tighten it's gone nowhere since. i think the bond market may be saying that they're looking at monetary tightening already occurring and that ought to slow down the economy and take the edge off inflation and maybe that's the right message >> exactly so if people had heard paul tudor jones this morning they would be saying geez, what he's saying is this situation is going to get out of hand unless the fed is more proactive this week and what you're saying is markets have already been proactive. if markets and as you say in the way kind of the public is proactive, i mean, there has been a lot of talk lately about whether inflation's already peaked if you look at inflation expectations, if you look at lumber prices down 30% from

their highs and so forth is kind of the jim paulsen view to wait and see where we are in three to four to six months' time, that would be more prudent for the fed to do than to act more aggressively, let's call it, at this week's meeting? >> well, if i'm the fed, i'm going to start reeling in quantitative easing. i would have been doing it earlier even kelly. but the reality is that we don't really know much about quantitative easing. it hasn't been around that long. there's been one major tightening, tapering, and that was in 2014. and outside of that we do have a history with the m2 money supply and it's been fairly consistent and fairly strong for a number of decades and to me it needs to get more attention. that has been tightening and indeed it started tightening at the end of february which most economists would say was just about right because that was when vaccinations were brought in that was when the economy started to pick up, when reopening started to occur, when

jobs came back and lo and behold, the private monetary officials have been tightening ever since. so all i'm saying is that this might turn out better than we fear on the inflation front and even moderate growth by the -- >> but you're also saying -- >> because we've had more tightening than appreciated already. >> absolutely. and i know we have to go, jim. but you're also saying we've had more tapering than we realized but the fedshould still be tapering anyway. that's what i find interesting if you still think they're doing too much, just a word on that. >> well, i think the only reason i have that view is we're so out of bounds. i agree with paul tudor jones's comments where we're continuing to have maximal monetary and fiscal stimulus in the face of what is obviously a recovery going on in the economy. why take the risk? i think it will probably turn out better than expected anyway. but why take that risk why not also start to take the message of the bond market, take the message of what's going on with the private money supply and start to reel in some of

that stimulus? >> so interesting. jim, thanks for your thoughts today. jim paulsen. >> thanks for having me. >> ty. >> fascinating how the conversation, kelly, has been tilting a little bit towards a more aggressive stance against inflation. still ahead, we will get investing advice from the famed financial adviser suze orman from stocks to bonds to crypto and helping employees save for an emergency u.r take on crypto may surprise yo pl plus, why biotech could be a key to a breakout in the nasdaq. we'll discuss that in & more when "power lunch" continues after this short intermission. [music ends]

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let's get a quick check on the markets. the nasdaq is the only sector in the green right now but it is off the highs. nasdaq as you see there up about .4 of a percentage point 53 points. the s&p down almost 12 and the dow industrials down about 250. 232. materials and financials the laggards this session. kelly, tech is the winner. >> tyler, thank you. and let's talk about some of today's power movers first up philips shares are

lower. the multinational conglomerate recalling cpaps and mechanical ventilators used for sleep apnea. down about 4 1/2% today. next up tled up climbing about 11%. the online consignment retailer having a huge month. it's gained about 66% as the popularity around secondhand fashion climbs chipotle is higher after an upgrade to buy at raymond james. they are bullish on the fast casual chain's menu. for more on that call go to cnbc.com/pro straight ahead on "power lunch" suze orman live. we'll get investing tips from the famed financial adviser. we'll also discuss her upcoming event with acorns, invest in pride ready set go plus "up" and away we'll take a look at the big money going into drones yes, drones. and an ev shock. the ceo and cfo of lordstown resigning just days after raising doubts about the company's ability to operate we've got all the details when "power lunch" returns.

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welcome back, everybody. the oil market is closing for the day at a multiyear high. concerns about the lack of supply as investors have been pushing for green energy

let's go to pippa stevens with the latest at the commodity desk >> demand expected to keep rising, traders are betting that oil will move higher but we're getting a little bit of a sell-off here in the final half hour of trading you can see wti crude is just slightly higher at $70.93. bering crude up about a quarter of a percent at $72.83 wti rising to its highest level in more than 2 1/2 years there are several factors that have been driving the recent gains. the tsa screened more than 2 million people on friday and sunday for the first time since the pandemic began hurdles also remain over those iran nuclear talks and as you said with supply down traders are betting we will see that pickup and that will drive prices higher, kelly back to you. >> higher and higher, pippa, thanks so much let's get over to the bond market now rick santelli tracking that action at the cme. rick, i don't know if you heard jim paulsen's discussion earlier

but the new york fed had a lot of inflationary data, right? >> it certainly did. and right before we discuss that exact consumer survey let's go one chart. this chart starts a week ago friday for the big jobs report you can see the jobs report at 559,000 was disappointment and yields have been lower but with tomorrow's beginning of a two-day fed meeting and all the chatter is about inflation we've turned up a bit. as kelly was discussing, may fed consumer survey 1,200 respondents. it's a big survey. they ask questions about home prices, rent, food, gas, health expenses, medical expense, how you feel about your job. very thorough. one year, that moved to 4% at seventh straight increase in a row precovid this was at 2.5437 it's now at a record-setting 4%. going back to 2013 when it started. if you look at three-year, there's a divergence here. at 3.6 it's the second highest

reading. from the very early days we had 3.9. but that disparity, that spread shows that yes, many consumers believe inflation's going to jump but that the further out fears seem to be moderating a bit, which kind of goes along with the fed's notion it may be transient. but transient three or four years down the road is not exactly what the market's going to be patient about. so this could be a big chart to keep in mind tyler and kelly, back to you >> thank you, rick rick santelli. bitcoin's volatility is on display again today following sunday's elon musk tweet saying tesla might go back to accepting it as payment and bullish comments as well from paul tudor jones earlier today on "squawk box. at one point bitcoin was up about 13%. it's been right around $40,000 that's where it still is at the moment all the more reason it might surprise you to find a personal finance expert like suze orman saying yes, individual investors can, maybe should invest in bitcoin. suze, it's a pleasure to have you here

tentimes "new york times" best-selling author and host of the recently renamed podcast "women in money and everyone smart enough to listen." bitcoin, suze, tell me why your two cents is on it and safety for the general public >> well, you know, it's interesting, back in april really i was especially on the podcast telling everybody any money that you can afford to lose, i don't have a problem with you investing in bitcoin whatsoever but it's not a currency in my opinion, kelly it's there for the long run. and recently on the podcast i was saying i still like you're investing in bitcoin, you have to hold it for the long run, but i do think it's possible that it could go back down to its may lows at about $30,000, possibly 26,000 and what i don't like about it now, however, so just a little caution here, is that i don't like that one man can come out and saying something and it

controls the market. if you're going to accept it for his teslas, is he not? and it moves the market 13%. number one, i don't like that. and i also don't like, i have to tell you, how bitcoin is part of the ransomware and allowing that to happen. so will the government come in and start to regulate it and everything i don't know but i still think for the long run, long run, it's a place to put some money and just leave it but not a lot. >> it's surprising i think for a lot of people. one more word, we'll move along because you have a ton things going on how can you say this is a legitimate investment? for all the work that we've done with financial education and literacy, what's proven to -- why do you think this is something that people should, you know, treat as a legitimate investment over time >> because there was a little while there that major corporations were playing

hundreds of millions of dollars into it, number one. the youth of america likes it. and you have to really validate them as to where they're going you don't like bitcoin itself, or cryptocurrency itself as an investment, then you could also invest in it the way i did a while ago, is i put microstrategies at $125 a share about june 5th of last year, sold it for 1,030. i think square is a fabulous way to play cryptocurrency if you want so there are other ways to play it other than just simply buying the crypto itself. >> let me move along as we talk about investments and growing wealth and so forth. secure save is a company you're involved with. it's an app really you're trying to get emergency savings and the app that kind of helps you build that basically as a workplace benefit is that right? how does this work are there any tax advantages to it how would ithelp people? >> yeah, the way it helps people

is the one thing that most people find in life to make them feel secure is an emergency fund, kelly. and guess what, the majority of the people out there, they don't even have $400 to their name that is why you saw during the pandemic people who are making $200,000 a year standing in a food line. so this is an out of plan, out of service for a company that would make it very easy. it's an app. it's so easy i can't even tell you. where the employees decide on an amount of money, usually it's $25 or $50 a paycheck, to put into this emergency fund and the employers match whatever decision that they make to match, whatever amount of money. this is not tax-deductible this is all free money, so to speak, especially what the employer's giving them and the reason that i'm doing it is because i want people to stop

going to their 401(k) plans to take out money when they don't have any money now we make it so simple for all employees to automatically fund through their paycheck an emergency fund with the employer giving them incentive to do so, and the employers are loving it because it's creating loyalty to the employer and it's taking stress off the employee, which makes them a better employee >> suze, tyler here. first things first, i want to wish you a very happy birthday i know you had one last week it actually happens to occur on my anniversary to my wife, jo, whom you know as well. let's pivot. i know you've talked about crypto i know you've talked a little about secure and building emergency funds. we did a survey with acorns on lgbt-owned businesses and there were some interesting findings in there 70-some percent of them are solely owned by the proprietor

most of them have not made a succession plan. many of them are carrying large levels of personal debt. is that different from non-lgbt business owners? what's different here if you -- >> no. one thing that i really want everybody to understand is that money does not have a sexuality, money does not have a race, money does not have a religion sonormally, when you are running a business, the same things that plague any business applies to everybody so i understand that this is a problem with lgbtq plus community, but it's really a problem for everybody, ty. and so it's important you that do have a succession plan. if something happens to you, who's going to replace you and you need to start planning for that right now even in my own company with the new company i just started, secure save, there is a

succession plan in place but it's hard to do because who's going to do it it's just something you have to do >> it was the reason i asked we do the survey and here are the findings of it and i find myself wondering, well that's probably sort of like what any business person would be facing in terms of their labor relations or the amount of debt that they're carrying or the fact that he don't have a succession plan are there -- can you think of anything other than potentially the discrimination that lgbtq business owners may experience or may not that makes them different from non-lgbtq business owners? is there anything that comes to mind >> well, you know, discrimination is a big thing. and the ability to tell everybody, listen, everybody

knows that i've been a lesbian my whole life. and i'm proud and still am proud, and it's the first thing i said to cnbc you do know that i'm a lesbian and so what happens, ty, is when somebody doesn't stand in their pride and they're not proud, then that affects their decisions with everything including what they do with money, how they feel about money. the house that they're living in, if they die will it go to their boyfriend or girlfriend or their non-binary, whatever it is and will their parents honor it? will they not? so there's the emotional and the discrimination things that come like that. now with marriage equality and things it's not so bad it's not that many differences, to tell you the truth. but people feel in their heads and there is and if they feel it then it's valid for them and we have to deal with it >> well, suze, once again, happy birthday and i'm proud to call you a friend i'm proud to have you as a

colleague at cnbc. suze orman, great to see you and our programming note -- >> thank you, ty >> suze will answer lgbtq small business owner questions -- yes, good to see you, my friend she's going to answer questions during a linkedin live event hosted by kate rogers. it's june 17th i think that's thursday. pretty sure. but june 17th from 1:00 to 2:00 p.m. eastern time. to register go to cnbc.com/suzeormanevent. and we should note that nbc universal and comcast ventures are investors in acorn now to leslie picker for a news update leslie >> hey, tyler. good afternoon pandemic-weary residents of england will need to wait four more weeks all restrictions on social contact were scheduled to be lifted a week from today, but this afternoon prime minister boris johnson announced the government will wait until july 19th to make that move to allow time for more people to get vaccinated as delta infections

surge. >> what we're trying to do now by this delay is to reduce the current surge. and we think we can do that and we think that a two-week delay would make a substantial difference and a four-week delay we think would make even more of a difference in reducing the overall number of deaths and that's why we're doing it. >> on the positive side a new analysis by english health officials shows that two doses of the pfizer or astrazeneca vaccine are more than 90% effective against hospitalizations from the dangerous vuelta variant that's about the same as their effectiveness against the older alpha variant. and the u.s. supreme court ruled today the wording of a revised federal law does an lou prisoners convicted of holding a small amount of crack cocaine to ask for a sentence reduction that unanimous decision goes against the lawmakers who supported the 2018 revision. their intention was for the law to cover that category of

convictions. back over to you, kelly. >> thank you, leslie picker. biotech stocks sawigai b gns during the pandemic as vaccines took priority. can the sector go higher now our traders will discuss that after this - [announcer] when you earn a degree from southern new hampshire university, it's worth getting loud... - woo! i did it! (people cheering) - [announcer] ...and emotional. - [woman]woo hoo! - cool! - [man] we're proud of you, right, trav? - yeah!

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welcome back to "power lunch. i'm seema mody we are watching one corner of the health care sxas that's the nasdaq biotech etf taking off this month. double the gains of the broader nasdaq and one of our next guests sees an even bigger breakout ahead let's bring in the trading nation team. ari wald of oppenheimer. nancy tengler of laffer tengler investments. great to see you both. you've got your eye on the biotech index which is not only wrout prormg the nasdaq but a number of big biotech companies. can that outperformance continue >> i think so. i think the composite broadly ticks higher and quick reason why that it's not just tech anymore. you have biotechnology also lifting its head higher and participating. now, talking about the strength

in the nasdaq biotech etf, it's ticker ibb, it really started with the breakout through five-year resistance last year now, more recently as far as the consolidation we're seeing in the uptrend it looks very similar to what we saw last summer last summer ibb paused for about five months then broke higher in the fourth quarter once again, ibb paused for about the last five months since january. now breaking higher, all within this broader breakout in the nasdaq overall >> you know, nancy, biotech is an exciting place to invest i imagine, a promising drug trials, disruptive technologies like crispr. but also a volatile sector to put money to work. amgen, i should point out, hasn't really done much this year >> no. and hasn't done much for the last five years, seema we own it. it's not our favorite. i'll defer to ari on whether or not you want to own the ibb, and i think he makes some very good points we're playing the space with individual holdings. our two largest are j&j, which

by the way bought actilion which is one of the largest biotech companies, and abbvie which is alternately characterized as pharma and biotech this is a company with free cash flow yield of 9 1/2% dividend 4 1/2% and growing 18 and they've been able to bridge the gap we think from humanera going off patent in 2023 to -- through rinvoke and skyrze wide rather play the individual name in our portfolio. >> pick the stocks versus the etf. got it nancy and ari, thank you for your insight and head to trading-some nation.cnbc.com for more insight on markets today tyler, over to you >> seema, thank you. up next, between online deliveries and military use the big business of drones is expected to fly even higher over the next few years jane wells is live in moorpark, california finding out more about the industry and taking a test flight.

jane >> tyler, we've got drones which can fly on mars or fly in a little room looking like a hummi hummingbird. when we come back, where are drones flying next in a market estimated to reach $40 billion in four years. when we come back. >> announcer: and new the latest from tradingnation.cnbc.com. and a word from our sponsor. >> a double top say chart pattern that suggests an uptrend might be ending and ready to reverse. sometimes called an m formation because of the way it looks on a chart, a double top consists of two well-defined peaks at adproximately the same price trers often view a break of the lowest low as a bearish signal i'm lee boal and schwab is the better place for traders

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monitor, check and lock down you money with security from chase. control feels good. chase. make more of what's yours. the drone market is on pace to become a $40 billion business over the next few years as civilian and especially defense usage climbs jane wells is here with more jane >> reporter: hey, kelly. i'm at aerovir onment which makes all kind of drones, including this concept drone called the hummingbird for the

pentagon but commercial usage of drones is expected to overat a time defense by 2025, especially for things like agriculture where a dow spin-off has partnered with san francisco-based drone deploy to help turn crop surveys from hours into minutes >> they can map their flight plan, fly their entire field in less than 30 minutes and have a high-quality image rendered to them very quickly. >> probably a third of my growers probably have their own drones, where just a couple years ago there wasn't anyone that had a drone. >> people are adopting it very quickly but it's still kind of in that i would say adoption phase. it's a big learning curve, let's put it that way. >> reporter: but defense remains the top market, though they are expanding into the stratosphere with a partnership with softbank to test a solar-powered drone. they're also working with a robots company they acquired

that would help solve the battery life challenge up in the stratosphere with the sun but it's not the biggest challenge. >> i think the biggest challenge remains the ability for our society and regulatory bodies to enable the adoption of these things and allow them to be used with good intentions in mind. >> reporter: so the technology is still ahead of regulations and acceptance, guys. >> that hummingbird one is the freakiest one, jane. you can see in many ways the advantage of commercial drone deliveries that doesn't bother me the idea that domino's pizza might be flying over my head it's that hummingbird next to you that scares me a little more. >> reporter: well, if you were doing security or surveillance you could go in with this. it has a little camera on it it's still just a concept prototype made for the pentagon but it's the sort of thing if you needed to check for a building who was in there, that kind of thing, and it's just wild. >> that's what i was going to say exactly.

jane, as always, thank you so, so much. our jane wells tyler. >> look at it come down there and land perfect that is masterful. i thought it was a cicada, but no, it's a drone wow, that's so cool. all right, folks, let's move on to shares of lordstown motors sinking following the resignation of the ceo and cfo we've got more details on that big news after this quick break. it's another day. and anything could happen. it could be the day you welcome 1,200 guests

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the ceo and cfo of lordstown motors resigning, sending shares deep into the red this day phil lebeau here with the details on this big change hi, phil. >> hey, tyler, there's no bounce in shares of lordstown once the sell-off started this morning, it continued. it's holding now it's been down anywhere between 16% and 20%, now down a little over 17% the ceo steve burns is out, is effective immediately. the cfo has also resigned which raises the question what does wall street think about all this joe spack out with a note about what that means saying we wouldn't be surprised to see a pivot from a production, operational, execution market point of view. this may end up being a change for the better but we envision some major challenges. they have three everybody are pointing to right away they have to find a ceo.

they have to secure capital and they need that pretty quickly. they're also talking about a strategic investor why? they plan on starting production of that vehicle, the endurance electric pickup truck by the end of september at least that's the plan as of right now. let's take a look at shares of lordstown going back to the ipo on october 26th. at the time a lot of people said what do we know about these guys is this a safe bet is it going to pay off nine months later a lot of people are asking what's next for lordstown motors. >> but, phil, if they get a couple of good players in there, this could be as that rbc person said potentially good news my question would be why do they think they're going to be able to compete long term against a ford or a general motors or even tesla in that pickup truck space, electric. >> that's the biggest challenge, tyler. they had the first mover advantage. they were going to roll out an electric pickup before anybody else they still may do that but that was what was the selling point for steve burns.

he is no longer at the company questions remain about whether we see the endurance in production by the end of september. that doesn't happen, it makes it a much tougher road for lordstown. >> and we remember that liquidation call from the straight a couple of weeks back. tyler, it's been a pleasure. thanks, everybody, for watching "power lunch." >> i'll be in the house tomorrow i'll see you then. welcome to "the closing bell." i'm wilfred frost at the new york stock exchange. stocks mostly lower to kick off a new week on wall street, though still near record levels as we head into the final hour of trade. >> i'm sara eisen. let's look at what is driving the action the dow down more than 200 points but technology is holding on to gains. the nasdaq led higher with names like apple, tesla, facebook. bank of america ceo brian moynihan saying consumer spending is up versus 2019 more on those comments in just a moment and bitcoi