network, support and value-- without any tradeoffs. that's t-mobile for business. dow drops. mixed messages adding to the confusion. we'll unravel the mystery. and trending trades. amc may get the attention but the reddit crowd has a new target a new digital currency is growing called tether. there's things that investors need to know "power lunch" starts right now

hi, kelly. welcome to "power lunch. stocks are falling sharply on this friday. almost a summer friday the dow is on pace to post its worst week since january s&p on track to snap a three-week win streak despite intraday records in the week goldman sachs and united health and american express with the biggest downward effect on the dow. citi down about 12%. jpmorgan off more than 7%. >> thank you welcome to the land of confusion. not a lot makes sense in this market and there are even more questions post fed meeting there's talk of deflation orb stag inflation nobody is sure dollar dysfunction a two-month high how about rates? they're just fed up. popping and dropping leading to questions of what's

happening in the economy and for stock investors one day piling money into cyclicals and then defense or tech the idea of themes has essentially broken down. good thing bob and rick are here to make sense of it for us bob, let's start with you. >> yeah. that's a very good introduction there. the real problem is considerable confusion on where we are in the economic cycle is the reopening story valid or mature market or the late cycle? you would own different stocks based on the cycle that's why you see the confusion. look what's happening to commodity stocks reopening stocks this is the classic reopening theme. buy the commodity stocks copper, steel, gol, agricultural futures, oil services all done one week big run-ups in may what's going on?

where are we in the economic cycle is the big question that nobody can quite answer and maybe the fed is trying to help out on that. the market this week seems to be a lot more worried of weaker growth that the fed may signal to slow the economy down in 2022 than inflation this speaks to what you might imply is a mid cycle situation what's that? you have a growth and earn strong maybe not as strong as earlier and makes sense going into the third rate interest rates are low and concern to move up generally buying technology stocks in this situation growth, steady, over reopening things like cyclicals. some argue later the year we could go into a later rate with higher rates and p/e rash owes and buy defensive stocks some people say we could be m moving in that direction

you can see that today important thing is what happened all year biggest trade all year to buy small caps and buy value stocks. what has sold off the most this week small caps and value stocks. those are the reopening plays. this suggests to move on a little bit traders are. more of the middle of the economic cycle and despite the confusion the federal reserve created maybe helped a little bit this week in terms of commentary and where the masht is back to you. >> all right thank you very much. let's head to the bond market where yields are having a crazy week rick santelli tracking the action at the cme. what do you make of the wild moves, rick? >> tyler, in a way let's let the market speak for themselves. this first chart is 2 year with

a 3 year note which are hovering at the highest yields lowest prices since march of 2020 a 2-year note up 13 basis points on the week. a 10-year note is virtually unchanged and a 30-year bond is down 13 basis points on the week and today we are hearing, well, maybe disinflation, deflationary pressures why not buying it. look at the new york fed for guidance two charts the first one is the uig both are underlying inflation gauge first one based on data and these are the highest levels of inflation on the chart since the fall of 2018 going by price which is the second chart highest since october of 2008 which dovetails with lots of other inflationary numbers we have seen

look at that 30s minus 5s yield curve. flattish since september of 2020 and doesn't end there. every sovereign yield curve around the globe is virtually doing the same thing whether in europe, on the german curb, uk, the british curve and looking at the dollar index is opposite with commodities there's a three-day chart of the dollar last chart hovering near two and a half month highs on the dollar index. it's happened in basically three sessions back to you. >> you left off on the dollar there but which is the tail and which is the dog is the spiking dollar unwinding the trades or is the sort of counter inflation trade boosting the dollar >> i think it's a lot of logistics. i would say that the best way to

look at this is steepening trades unplugged okay which puts you buying the long end. which fits selling the short end. which fits and while this is going on china's liquidating commodities and europe is dovish weak euro. stronger dollar. falling commodity prices couldn't come up with a better way to destroy margin capital sitting in the markets. >> well said thank you. all right. the st. louis fed president bullard adding to the confusion here this afternoon. after implying the first rate hike by the fed could come as soon as late next year but he did say that taper discussion remains an open one. >> it's going to take several meetings to get organized on all these different points

it's going to be a healthy debate i think the chair has said we'll giver markets plenty of time to react. actually i welcome input from financial markets on how they think we should do this. you know, the pandemic is coming to a close here. so it's very natural that we start thinking about how to pare back emergency measures but carefully and thoughtfully. >> carefully and thoughtfully. what does the market want? that is a freudian question for step stephanie link she is the chief investment strat jik and portfolio manager with hightower that is a freudian question. let me start with this rick pointed out that the yield curve, i don't want to wonk out here, but the difference between i believe the 2-year and the 30-year is almost flat

if that yield curve invesrts that's the sign that recession is coming, right what does a flattish yield curve tell you right now >> the bond market is very confusing at the moment. because the reason that the fed officials are talking about talking about tapering and they're not tapering any time in the near term, right seems like it. but they're talking about tapering because the economy is booming. they just raised the gdp to 7% from 6.5%. inflation is running hotter than expected they missed the inflation expectations by 100 basis points and i know that commodities have rolled over and is transitory but even though lumber fallen down substantially it is still up 120% year over year

energy is up transports are up 16% year over year i think we should be tapering quite frankly. we don't need emergency policies and that's why the bond market is confusing because i think that they're thinking this is a one and done kind of a growth spurt for this year and then next year we turn to trend i don't see that in my forecast so i think that this is an opportunity, especially in the cyclically sensitive stocks that have been annihilated this week. >> let me make sure i understand completely you do not see a return to a trend type gdp growth in 2022. you see something quicker than that >> i actually -- no. look i think this year is great 7% plus. next year will be 5% 4% but it will stay above trend and by the way driven by the stimulus and the fiscal and

monetary right? i do believe that that will carry the growth and that's why you want to take advantage on the pullbacks in cyclicals you want a bar bell overall and some technology as well. >> so you favgave me the perfec opening. you want a pullback. what do we have today? pullback in light of the confusion, the fact that the fed missed -- come up short on the forecast what do i do with my money here today? >> i have a few names for you. it is like trying to be diversified but the themes in the four names is really pent-up demand and reopen recovery cisco. as you reopen enterprise spend will actually recover and cloud and telecom spend. total orders are starting to

improve already. match.com, flat on the year. doing a great job and also pent up demand and increased subscriber growth do get out and date in person i like the m&a strategy with the hyper connect deal and freeport, that stock down 14% in 5 days. fiver day just they're doing the right things they have cut cap x. cutting the dead a global proxy for growth and american express is a reopen name and already starting to see loan growth improve months over month year to date. >> i love that you have match.com as a reopening trade pent up demand i love it. single and ready to mangle let's talk about the picks in the stock draft and might go over them. one is las vegas sands, down 11%. boeing up about 1.5% this is obviously a marathon, not a sprint how are you feeling?

>> yeah. i have gotten dinged up a little bit with this rotation we have been talking about these are reopen names boeing is a great company and they're restructuring the company. new management team. i believe you get china recertified the 737 max this year las vegas sands selling the las vegas assets and increase macau and those are did two plays and reopen for sure. >> have a great weekend. thank you so much. >> you, too. thanks. >> you bet. we are watching this stock drop on wall street today. the names getting hit, some emerging opportunity just the restaurant sector may be one of the areas but the recovery is

uneven creating winners and not so winners blue chip blues. which dow stocks are worth buying on this 400-point pullback it is all ahead on "power lunch.

[ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ welcome back to "power lunch. i'm christina parts los.

we are tracking the commodities and the some more cyclical plays. look at the van etf. turning a less than 1% lower today and that is from the high back in may after a roaring start to this year and many though of the constituents also got clobbered in the past week including new corp., cleveland cliffs and u.s. steel down 20% you can see the trend. look at that negative 20% >> yeah. early tell thank you so much. the restaurant comeback is red hot for some as major states across the country lift restrictions. there's winners and others take more time. stocks like chipotle, wingstop and domino's up more than 20% for the year kate rogers is taking a deep

dive hi, kate. >> we've been tracking weekly sales and traffic numbers for the last year using the data for the week ended june 6, same store sales up 6%. both down over 20% this same week in 2020 but we took a deeper look at the performance around the country places where both limited service like fast food brands and the u.s. biggest metros are doing well and sitdown concepts. places like phoenix are a standout with indianapolis, orlando and atlanta. in other locations limited service concepts see gains and full service with negative same store sales. both new york city and boston with negative sales on both limited and full service c concepts investors are betting on a

casual concept rebound the best performers year to date are not wingstop and domino's but casual names texas roadhouse and blooming brands with big year to date gains. two years ago they were left for dead by the analyst community. >> generally speaking who would we say is not as well positioned publicly traded names or taken share from the moms and pops that struggled so much more in the last year and a half >> there's so much demand right now, publicly traded companies or smaller independent chain just the huge, huge issue is labor. people want to come back and dine out in a drive through or sit down and all about having the staff to meet the demand and fully meet capacity which is the challenge right now. >> i read that on martha's vin

gu vineyard you can't do sit down dining because there's no workers. >> we'll talk more about it tonight on "the news with shepard smith. >> good tease. >> look how she did that so well like she is in the business. we will continue to cover the volatile market and the dow down about 400 off the lows however of a 520-point decline. right now down 411 in honor of juneteenth a look at the key issues facing black americans in business right now and the steps being taken to take to fix some of those problems as we head to a break, june is also pride month and cnbc spotlights business leaders and producers and anchors. here's ceo andrew clark.

>> earlier in my career i felt like i was acting out the role of who i thought i needed to be to get the next promotion. my boyfriend who became my husband could not attend company events my professional and personal goals seemed incompatible and i was holding back the real me i got fired from a role where i was delivering results but my face didn't fit. i made a promise to myself i would never behabo tt ss cisco. the bridge to possible. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back i'm rahel solomon. here's the news update just catholic bishops have a right with a statement to deny president biden communion. another vote will be needed once the statement is written. the palestinian authority canceling a deal for 1 million doses of vaccine with israel even as vans carrying the doses into the west bank palestinian officials decided that the shots are too close to expiration. under the deal palestine would have sent doses to get from pfizer this year back to israel.

indian health official said they want to resume exporting vaccines but can't until more of the population gets shots. in southern new jersey a new museum honoring abolitionists harriet tubman opening tomorrow. guys, they had a soft opening last juneteenth and now a more formal celebration now that outside is back open tyler? >> wonderful story cape may, a wonderful place do go under any circumstances thank you. let's take a quick check on the dow. how now the dow? not jumping over the moon. lower by 400 down about 520 today but seems to have found a level about 1.2% lower. s&p 500 records earlier in the week down right now by about 1% there you see the nasdaq off

oil prices reversing early losses and turning positive despite fears of a rising u.s. dollar not good for oil positive for crude hitting the highest level since 2018 on wednesday and remaining above 70 at $71.52. >> thank you. today marks juneteenth examples of inequality like the racial wealth gap are as prominent as ever. frank holland is here literally taking a look at steps. >> thank you for having me the gap is $11 trillion and could have ballooned to 13.5 trillion in the pandemic that's according to the latest research of duke university but recognizing the holiday onest bank is launching a one transaction campaign enlisting six financial decisions to help bridge that disparity including buying a home, owning a

profitable business, investing, life insurance, improving credit and having a will. the ceo says these are the building blocks of generational wealth. >> it is like building anything else building a house if one knows how to assemble a house with raw materials and construct them in a specific way. >> and buying a home is often the biggest investment for anyone black ownership declined over the last 20 years and white ownership held steady at 74% according to a new report from mckenzie 60% of the racial wealth gap annually is created through inheritance. creating a will can be as inexpensive as $10 it is a valid legal document in most states that's no tarrized. >> i thought where you would go with that is about the need for

taxation to redistribute estate wealth but there's a simple move to make to protect themselves and assets in business or you name it. if they don't have that document, that will, god help you. the mess that it can be between states and people trying to figure out who's responsible. >> absolutely. >> it can destroy families. >> i wept through that permly. my mother passed away a year and a half without a will. i was an only child and made it simple but as you mentioned with a spouse or a second marriage or children from different marriages it can complicate things. >> i'm so sorry, frank i didn't know that good to see you tyler, over to you. >> thank you. ahead on "power lunch," trending trades. a look at the stocks that have gone viral on reddit over the

past week. a nascar driver is getting paid in litecoin the dow on track for the worst week of the year we'll look at the names that are taking us low ere and giver you two names to consider buying on this dip when "power lunch" returns in just a moment

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[ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪

♪ me and you, we're waiting for the dark ♪ . welcome back time now for today's power movers oatly lower today. the stock poised for a first negative week since going public last month next is docusign continued acceleration in the deal flow. the stock up more than 30% this month alone. finally vista outdoors, cowan pointing specifically to ammunition sales as an upside. for more go to cnbc.com/pro. kelly? >> thank you so much. amc is getting the attention but there's up and coming meme

stocks to watch for including cannabis company tilray. the ceo was on closing bell last week saying he embraces the retail traders. >> very supportive we love them consumers, users of the product. retail savvy brand savvy. you want them as vers, as consumers. it is a base of shareholders to have because they're so educated about the company and the products >> and joining us now to discuss the newest names in the meme stocks is justin zhen. who's all the talk this week >> thanks, kelly so tilray is definitely one of them the amount of mentions is up over 400% on wall street bets orr the last 2 week just the ceo talking to the crowd helped a

lot. previously a few companies kind of talked about and see the attention is consolidating under tilray and if you look at the comments you can see a couple reasons why. for one the users love the products and looking at the alternative data tilray is aggressively expanding the product over six months. they have hadded over 20% new products to the product line trying to win a new market having a great brand and having a lot of products that users love is very good for them. >> purple you say is also entering the top 20 stocks the mattress company do these names still pack a trading punch as they used to? >> yeah. i think they actually do a lot more right? the wall street bets community has increased substantially

since then and if you actually think about it there's nothing different, nothing different what's going on right now than always going on. people used to talk about stocks around conference tables, talk about ideas around campfires and now it's online and as that community grows for the first time we are able to track it >> yeah. all right. so let's talk purple for a moment what's the case for this one purnl innovation as they call it. >> it's snuck into one of the top 20 stocks that's been talked about on wall street bets. and if you look at the alternative data ever since the company missed earnings in early march they have been in heavy expansion mode and the jobless things is up 66% and when a company is in heavy expansion mode, job listings are powerful

ways to see whether or not the company is ramping up production and that's a huge increase and shows that the company is in heavy expansion mode and great for the growth story. >> another name to throw in the mix? >> i think one more name i think gamestop some of the attention has been taken off gamestop recently and it was the original reddit darling and still a lot of chatter that's being talked about gamestop still a lot of great due diligence done on wall street bets so don't forget gamestop. even though there's other names that have been popping up. >> maybe now we'll see if new management sees opportunities where the stock price where it is thank you. tyler, over to you. >> all right. the dow on the pace for the

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welcome back to "power lunch. it is a rough week for the dow the index pacing for the worst weekly performance since january. led by jpmorgan, walgreens to name a few are the dips worth buying? let's ask the team today clint and bill welcome to boeth of you. who did you pick >> i think you got to go with the best bank in the world with jpmorgan and look at this as an opportunity. these things on a tear these years and with fomo and bought at the top that's unfortunate. you have to be patient and now the pullback

trading well over two times book and now around 1.8 anywhere in here you start to nibble and pick up shares. it is a bargain. >> clear call from you clint, what about you? >> i do agree on jpmorgan and financials through 2019 broke out and that happened through 2019 to early part of 2020 before the pandemic. i like jpmorgan and american express but the problem i think that 1.25% is in the cards for the 10-year yield and near term that could weigh on the financials but there's a tremendous buying opportunity on weakness i like ibm not a darling in tech but they have done some tremendous strides forward in the past couple of years for the cloud and did break out of a near decade long down trend last week and then really good value at 1.41 and more at 137 down there

but not to mention a 4.5% difr den and a great stock to own for the long term. >> two votes for jpmorgan and one for ibm. clint and bill, thank you. tyler? still ahead, a new crypto challenger, the controversial currency tether climbing the ranks. why next heading to the break check out financials hit today biggest laggards met life. "power lunch" will be right back. and now, the latest from trading nation.cnbc.com and a word from our sponsor.

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a new digital currency broken in to the world as tether kate rooney is here with more for us. >> tether is the third largest cryptocurrency in the world. and of course first quarter of the year according to new research and on an average day tether sees more volume than bitcoin or ethereum and unlike bitcoin its price didn't change and the fist of what's known as a stable coin and the price is pegged or tethered to the dollar but not 100% backed by u.s. dollars in a bank account but mostly dollar-like asets of short term debt and according to jpmorgan the seventh largest of commercial paper in the world and there's controversy. it was founded by bit fnx and an

attorney general in new york accused them of lying and moving hundreds of billions of dollars between companies to cover massive losses the case was settled in february for about $18 million. the ag shut down that cryptocurrency in new york this is the coin of choice for traders. i have been talking to folks that use it. you want to buy bitcoin on the weekend your bank's not open transfers take multiple days and a popular option for international traders who want the stability of a dollar but no u.s. bank account and the rise in tether this year is mostly due to people selling out of bitcoin and putting some money on the sidelines. >> one of the reasons why -- boinlt and others are treated as property say you have gains and go to exchange or use that bitcoin you pay taxes on that. do stable coins allow you to get

around that? we call it a currency. i assume it's viewed at property by u.s. authorities and scrutiny for that >> bitcoin and ethereum have been designated as a commodity so this is a security and not seeing capital gains because it's pegged to the dollar and people aren't buying it for the same reasons and the speculation as seen with dogecoin. the best and alg is poker chips. similar to a casino you buy and sell. >> this feels like of all the attention that regulators to give to the crypto space this is the most vital designed to get around the exists framework to deal with currency or property and difficult to track. >> international traders who want that stability and instead of going and saying i want

exposure into the dollar they buy tether and don't need to be anywhere within the u.s. banking system the attorney general in new york is really the only regulator that has come out and done anything against this but there are rumors and speculation of other regulators looking into this and other stable coins in general and blown up and tether is around. the backers of tether saying that it's the first mover and controversy but people use it way more than the other examples out there. >> there's concerns about if there were a run on it, if everybody withdrew at the same time the implications and so much to get into kate, thank you. >> yeah. now turning to the real world use cases for crypto in nascar, tie lar. >> that's right. announcing the driver salary will be paid in a crypto basket

with litecoin. sliding more than 50% over the last month why go that route? let's ask him with ceo of crypto that sponsors who sponsors his car. landon and steve, welcome. i hope i pronounced your last name correctly if i didn't, shame on me let's talk about where your interest in cryptocurrency began, because you've been dabbling in it for some time that's where you met steve at a crypto event and this became or turned into a sponsorship. landon, did you hear my question >> i didn't hear your question i can hear you now. >> okay, i'm ask it again. where did your interest in crypto begin, and i gather it

goes a ways back >> it does it goes a ways back, tyler thanks we're at the racetrack right now. i'm about an hour from getting into this voyager race car i got into crypto a number of years ago through racing because of dogecoin. a friend of mine, driver josh wise, got sponsored by the doge community who paid him in cash, didn't pay him crypto. so i got in pretty early on. i've done a little bit of everything in the space. i've mined it, i've traded it. but really i buy and hold it steve and i built a relationship a couple of years ago by meeting at a crypto conference at the litecoin summit. we talked about putting voyager on a race car and now the timing is perfect to do it. >> why litecoin, landon? and number two, why get paid in crypto at all? obviously it's a volatile asset.

it can go up, it can go down so that $50,000 prize money that you receive that you're paid in crypto may turn out to be $75,000 next week. it might turn out to be $25,000. >> yeah. well, first of all, i've been a big supporter of litecoin for a number of years. charlie lee is a good friend of mine i think it's a great coin. i've held on to it for a number of years, it's fast. honestly i believe in the long-term value of not just litecoin but a lot of cryptocurrency my personal portfolio is pretty committed to cryptocurrency. it's fairly well balanced. i hold bitcoin, i hold litecoin, i hold voyager token as far as voyager paying me in crypto, i think that's a reflection of where i think this market is headed and what i'm willing to do. >> steve, let's talk a little bit about your relationship with landon and why it's of value to

your company and to the marketplace that nascar appeals to but i'm also said that you said a new coin, shibu inu, this is a new one. why is it popular and is it in the famous words of elon musk, a hustle >> thanks for having us here today. look, landon and i met a couple of years ago when you choose someone to partner with when you're doing sponsorship, i wanted someone that i valued, that valued cryptocurrency and really brings value and has a big community too because i think the things people forget about crypto is crypto is all about community. between landon, nascar and the community, it's a great opportunity for voyager to participate in this. when it comes to shiba, we brought it on the platform yesterday. we're really excited about the opportunity. we listen to our community and

our customers. they all dmapgded that we want shiba. our job as a broker is to bring multiple coins to consumers to help them create wealth in this digital market between the sponsorship and partnership with landon and the voyager car and shibu it's been a really been an interesting 24 hours for us. >> landon, good luck as you hit the track later today. steve, it sounds like you've got a match made in heaven a guy who embraces cryptocurrencies and that is your business. so smooth sailing, whatever your voyage or voyager happens to be. thank you, guys. have a good weekend. >> thank you. rising rates are supposed to denting big tech so why hasn't it happened and will it? we'll take a look when "power lunch" returns

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discuss tapering even taking it out of the vocabulary could signal policy is going to remain for a bit tech usually does well when interest rates are low, cheap debt you can see on the flip side, tech also does well when rates start to rise in the short term. why? because many of these companies, facebook, amazon, apple, have long liquidity reserves so rising short-term rates improve the returning of these massive cash files and also offer an opportunity for these companies to buy back shares and lower any anxiety about future fed tightening and we can't, and i love to give credit where it's due, we can't discounting the individual investor who added to the growth risk argument. there's new estimates that came out that show for the first half of 2021, new brokerage accounts opened by individuals hit more than 10 million. so you think, oh, that's peanuts when you think of institutional

investors. but they too can move the market last year alone retail investor activity was responsible for 26% of all shares traded in the u.s. stock market so this isn't dumb money, it's real money that moves in and out of trends very quickly we know data is messy. we're living in unprecedented times economically it seems like the argument from a lot of people is if the fed doesn't raise rates by 2023 amid massive fiscal support, then the recovery is seriously off track and the principles of economics go right out the window and my mba was pretty much a waste of money. tyler. >> quick question, quick answer, please is it the case that rising rates hurt tech stocks or is it that they help other kinds of stocks so the money flows out of tech into other kinds of equities or a little bit of both >> i said it right off the top there's a little bit of both rising rates you'd think there would be a shift out of growth but a lot of these companies,

not just tech, they have so much cash think of their free cash flow. they're sitting on piles of money. when rates climb in the short term, this is good for them. what can they do with this money? let's buy back some shares, let's invest in the company so that's adding to the argument a little bit >> kristina, thanks. have a great weekend kelly, you too, have a great weekend. >> thank you, ty. >> and wish your dad and the dad in your house a happy father's day and happy father's day to all of you. >> and to you, tyler thanks so much. we were expecting a good year, a good reopening, but this is a bigger year than we were expecting. more inflation than we were expecting. i think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures. >> that was st. louis fed president james bullard on cnbc this morning those hawkish comments sent futures lower, setting the tone for