after the deal gets done tonight. >> rob you're next. your pick is a get out and have fun play >> absolutely. this is a portfolio we run in partnership with fundstrat, live nation is the quintessential epicenter stock. if you believe everybody's going to get out and get after it, live nation. >> we're going to wrap it right there. tiffany, sorry we didn't get the last one for you thank you for watching this does it for "halftime." "the exchange" begins right now. >> thank you, tyler. see you soon hi, everybody. this is the nasdaq and the s&p are at record highs again today. will we see a pullback again we'll talk to a guest who says we're historically overdue for one. also electric vehicles are here to stay, but is the ev trade toast? why one analyst is betting on ford as the next big winner. and shares of blackberry have

nearly doubled this year as the company gets wrapped up in meme mania. so, we'll ask real or reddit blackberry edition ets will start with the record highs for stocks bob? >> we're sitting at the lows for the day. the cyclical stocks, devalue stocks not helping at all today. energy stocks, material stocks, industrial stocks weaker you have chevron, exxon, goldman sachs down tech is helping so you've got intel up and apple up. but we need more from the cyclical stocks that are outperforming throughout the month. value versus growth will be the big debate value tends to be cyclical stocks we're past the early cycle stage where cyclicals do really well we're in a mid-cycle stage that's why we're seeing these big tech names that have been doing much better in june versus earlier in the year. we'll see if that continues. as for the second half of the

year, the global story is going to continue improving. and we've seen relaxation on inflation. so far the fed is getting its way. we'll see if that changes. the main paradigm for stocks still remains peak everything. that argues for a somewhat sideways market. the p/e ratio on earnings is 20 times. that's a lot the average quote from the s&p is about 6% a year it's going to be great for 2022, but it's expensive what we need to keep an eye on is make sure that we don't have any problems with two big things that can drop the multiple one would be the fed is wrong on inflation and they have to raise rates earlier. that will drop the multiple for sure maybe we get a sharper drop in growth than anticipated, and i mean earnings growth so far it's not happening. these early companies reporting so far in the last couple of weeks, i'm talking about nike, kroger, le nar, they've been

outstanding. the only outlier was fedex and they were just in line that was the sole disappointment other than that we are off to a fantastic start for second quarter earnings >> that's an interesting place to pick up the next discussion thank you, bob pisani. my next guest says the third quarter has a reputation for producing the weakest returns of the year and 2021 could fall into that pattern. he's got ten stocks that should hold up. joining me now is chief investment strategist at cfra. sam, it's great to have you. a lot of people have said we're overdue for a pullback, but you can really quantify this for us. >> sure. hey kelly. good to talk to you again. yes, as of today we have gone 278 days since the end of the last decline of 5% or more, which was a pre-election 9.6% pullback and when you go back to world war ii and you look at round trips that are either between 5%

and 10% or 10% and 20%, we've actually had 83 such kind of round turns, if you will so, it's fairly normal to go through a decline, a resetting of the dials, et cetera. and we have now established the 18th longest stretch since world war ii without a decline of 5% or more, so i think one is due >> before i ask about, you know, as you mentioned kind of some stocks or strategies for that downturn, why do you think it is that we haven't had one. is it -- does it tell you something about the nature of this rally >> well, yes the whole thing about this bull market advance and prior bear market is record setting we declined 34% back in march of 2020 in 33 calendar days, which was the swiftest on record we then got back to break even on august 18th of 2020, fewer than five months, which was the third swiftest on record and then because the economy has

been recovering, earnings have been improving, investors were looking across the valley, and that's why we ended up with stupendous returns and now that we are approaching second quarter earnings period, expectations now top a 60% year-on-year growth rate for the s&p 500. >> yeah, it has been peculiar by so many different measures so, none of the names in this list are big tech stocks, sam. a lot of people would think those are the safest places to be whether there's a downturn, an upturn, whatever kind of market you're talking about. they say these are the secular generational winners what would you say about their valuations right now >> well, tech today is not tech of 1999. i remember back then a lot of people were still talking tech because they said, even at 60 times forward 12-month pes that tech stocks were attractive whereas today we're looking at

tech stocks that are in the mid- to upper-20s i would say the tech sector is nothing like it was back in the 1990s. we're not looking at excessive valuations certainly the s&p itself is trading at more than 30 times next 12-month earnings as compared with 20 or so times on average in the past. so, we are expensive on the whole, but you can't really just point to one particular and say this thing is going to blow up >> that's so peculiar because a lot of folks are worried about that part of the market, where they see perhaps there's most risk to rising interest rates and obviously the performance speaks for itself. but you're saying curiously enough big tech -- or tech in general -- is trading at a discount to where it was in the late '90s but the market overall is more highly valued. that's strange >> yes, but i think it's because investors continue to say we're probably underestimating economi economic growth for 2021,

underestimating earnings expansion for this calendar year as well. and because they expect interest rates, while they're still the talk of tapering to take place and the next year and beginning of next, as well as interest rates end of next year, beginning of '23, still interest rates are very, very low by the historical standard, which is usually 5% on the 10-year note, not 1.5% where we are today. >> fair enough the forward multiple may be lower than it looks once the earnings come in at long last, let's get off to the ten picks. i'll rattle them off ball corp., domino's pizza, interesting. extra space storage. life storage pentacle west. clorox procter & gamble and everyjy. what united states these >> well, there's an old saying, when the going gets tough, the tough go eating, drinking and smoking. you could say the defensive sectors and the two dominant

sectors in this list are consumer staples and utilities other factors are that cfra equity analysts have buy or strong buy recommendations on these stocks they also have an s&p quality ranking, meaning in the past ten years they've had a superior track record of raising earnings and dividends. and lastly their volatility is half that of the market. so, high stars, low beta are the reasons for these ten stocks but many of them come from utilities, consumer staples. and then we have a lot of junk we have to store it. so, that's why those two storage companies come into play >> eating, smoking and drinking and visiting your storage place. that sounds like a fun third quarter. thanks so much for your time today. we appreciate it >> my pleasure >> sam stovall with cfra check out amc, bed bath and beyond, koss and blackberry are

moving up today. after a weak session on friday shares are down over the past week despite the company reporting better than expected results. still blackberry has nearly tripled off the 52-week low. phrased the market cap to about $7 billion right now so, are the fundamentals backing up the stocks reddit run joining me is the chief investment officer of center stone. let it rip what do you think about blackberry >> oh, i think it's like a lot of the meme stocks, right? there's a lot of perspective kind of guess work that goes into what it could be worth. center stone we're a middle investor, look here and judge the potential in the future. and blackberry is no different than a lot of the meme stocks. it's kind of a lottery ticket. i mean, i hear that this is transformation but if you go -- if you read the report -- if you read the

documents, you'll see -- imagine it's telling you one thing and the market is hearing something totally different. >> let's stop on this point because i've looked through some of these documents and it is a great transformation story obviously this is not the hand set blackberry but they have successfully embedded their software in cars. there's argument this is going to be smart car technology that is going to become more and more powerful and profitable in the future why isn't there toehold in the car a brilliant opportunity for shareholders >> because their toehold might be some -- someone else might have a stranglehold, like google, for instance that's just part of the business there's another huge chunk of business that is legacy, license, software. you're paying a huge amount of market value for the prospective -- their prospective success. you're almost saying you're

guaranteed to get that success when actually management will tell you it's an intensely competitive industry they're all strtrying to createa standard for your example the automotive business to business part of the chain. and success is not guaranteed. then you've got this contrasting with, yes, they have been transforming the business for three years. they make comparing results extremely difficult because they change out the results to shareholders and they tell you themselves, do not rely on the past so, we're at a point where basically it's going to be the loudest voice that wins. i'm not particularly good in that kind of debate. the fundamentals will ultimately determine where the business and stock market sell out. >> one more question, so they have the car piece but i'm not sure you've successfully counterargued for me why they won't benefit. i know what you're saying. no one wants to be up against google or apple as they become the next platform.

this is pure speculation as to what the businesses look like whereas blackberry's technology is already there let me ask about the cyber case because it's@another big case the bulls will make. they have a strong business there. >> cyber remains the security side of it so, that's the spark business. once again it will -- it's not really consumer facing it's more of a business-to-business kind of segment. and there again, they do compete with a lot of other people it's very difficult to say they have the special sauce that is going to be industry standard. you know, the car business, yes, it's true they have like 115 million cars to have some of their back end connection to the oem. but, you know, google, android is in almost 100% of new cars being manufactured it's just a challenge. it's not insurmountable. but i just go back on over many,

many decades i've seen companies go through business transformations. there's a long period, like years, where you don't know if it's going to be successful or not. and right now the market is kind of assigning essentially $6 billion of value to that -- to those prospects it's like 100% chance of success. that's the thing i'm arguing against. it's not a fail. it's not a fraud you've got the chairman of the board, he's sort of like the warren buffet-type characters in canada it's really -- this is very different than a gamestop where it sinks instantly here it's like your guess is as good as mine no one really knows. >> final point you are so good in going through these balance sheets what does their profitability say to you before we go? how profitable are they? >> most of the profitability is through the licensing business they're, as you would expect, in a business transformation.

vast majority of their perspective business is utilizing a lot of expenditures. so, they're kind of eking out a lot of cash flow, not much profit as they invest in the business it's an open-ended question as to whether or not they will succeed and generate value the problem with software is the moment you spend that r&d, it's stale. nothing is a secret in this business so, it's kind of a race against time for them. as i mentioned, there's, you know, these transformations take a long time. in the meantime, i'm left with the question, okay, you've already priced in 100% chance of success. what else is there >> fascinating abe, thank you so much for going through again piece by pooes the arguments out there and explaining where you come from always a pleasure. we'll do it again next time. coming up, we'll hear from the chief investment officer of cal administers, one of the

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welcome back, everybody. the market for electric cars is expected to more than quadruple in just the next four years. but the competition is growing by the day honda announcing today they'll change course and develop their own electric vehicles instead of using general motors and electric last mile solutions in ev start up completed its spac merger today. but the legacy car companies like ford, gm and toyota, they're all posting healthy stock gains this year as investors have cleared their intention to go all-in on the electric future. even tesla and nio are in the red since january. is it is the legacy players that will come out on the long run? collin, it's good to have you after this run in ford

is that where you would put your money to work? >> yeah, ford is still our top name i think they outlined at their investor day a very compelling electric vehicle strategy. they also outlined big data and connectivity strategy. and they have great products coming, so their fundamentals are looking great. they have the bronco coming out. >> let me ask you about the debt, collin i just want to make sure we can hear you okay. for 15 years the issue has been a high debt load for ford. is that a concern? we'll try again in one moment for collin lang in here -- collin, do you want to try one more time? i was just going to ask you about ford's debt levels we've been hearing about this for 15 years is it still a concern for the stock or no? >> i think they have slightly high leverage but nothing compared to where it was in 2008, 2009 i think it's very manageable i think they have the right plan in place it's not one of the top 10 concerns for me at this point. >> what's tesla's future

>> i think they obviously have leading rights today in electric vehicles i think that's undoubted if you look at range per kilowatt hour, they're a leader there i think we're sewing the traditional show that they're eager and ready to play and they're going to catch up. i think tesla has some role in the future, particularly on the luxury side in my opinion. i think they're dominating there and that's where they're showing they can be profitable >> daniel was raving about the plaid, the driving experience over the weekend so, they are continuing to set the bar high you like ford. you like gm. who else and what about the new crop of ev plays that's come to market >> i think people aren't giving the traditional auto companies a lot of credit. i think the u.s. companies in particular are very interesting, having covered them for over a decade and a half. when i started they were obviously in decline i think they understand better than most of the traditional auto companies the risk of being

disrupted because they have been disrupted. most of the leaders have been companies that were shrinking for most of their history. so, they've been more aggress skpif it's showing i think they're showing the leadership i think it's interesting they're doing great. there's clearly going to be a role for some of the startups, but i think a lot are pretty high risk, quite frankly >> what does the business model look like as the pivot to evs, especially as the competition for the metals and materials and all the rest of it that goes into making them is growing and pushing up those prices every month, it seems? >> well, definitely, iem all around government support i think pulled out of the infrastructure bill. but there's a large view that some of the ev support will be put in legislation later this year so, we're seeing government support. but i should kind of point out the raw materials on the battery side are up about $3,000, or at

least added costs if you look at the raw materials cost for ev batteries. that has been a step back. by the time you get to 2025, 2030, i think the expectations are we get enough of that supply online, supply and demand gets back to a norm and those prices come down. but it is clearly in the near term a head wind for ev sales. >> as you mentioned stocks more excited about the growth prospects than the near term challenges final question is about tesla and china. china, as you mentioned, contributed all the company's global market share last year. now there's another recall in that market. they're trying to kind of get behind their home grown players. what does tesla look like without china? or is that question absurd because they simply have to have china in order to justify the stock price? >> i mean, yeah. i think you need china it's a question of how much they could grow there i think the brand is still very, very strong there, but it's something to constantly watch.

the headlines over there have been a bit negative forthem. they've gotten some bad press. recalls never help for any auto companies. it doesn't seem like investors seem too concerned about it. but china is an important mark for them it's really the hub of where evs are going to see the biggest growth so you want to have a strong position there because that gives you scale for the rest of the world. if you go around the world, it's going to be china, europe and the u.s. is lagging far behind so, china is an important ev market for sure. >> the tesla price target about $100 below where it is right now. you've got gm overwiegt. that gives sense of where the market is going from here. thanks for joining us. coming up, don't expect relief on the state and local tax front at least if you're a high earner. we'll take a look at why skaping the so-called salt cap may be near impossible for democrats on capitol hill and don't forget you can use

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hour cruise operators in the red with carnival announcing it will sell half a billion dollars worth of shares, trading down 7%. this is on top of $2.5 billion collar it's raised this year to stay in business norwegian down 6 to 7% right now. etsy up 5% after announcing acquisition of a similar brazil company. etsy is up 6.5%. the ceo says this establishes a foothold in latin america. shares up almost 20% let's check on energy which has been the best performing sector this year. today down more than 3% with every constituent moving lower several names down more than 5% as you can see well, one eatery in new york si is giving new meaning to the term restaurant worker that's ahead on the exchange but first, senator bernie sanders' budget proposal calls

for state and local tax relief but a closer look saysha uld be unlikely, at least for high earners we explain after this. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories.

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welcome back taxpayers in states like new york, new jersey and california have been holding out hope for relief from high stake and local taxes. while recent bills do propose changes, they likely won't apply to high earners. robert frank is here with the details. hi, robert >> kelly, good afternoon senator sanders did include $120 billion in his budget for salt relief but a full appeal of salt would cost three times that the message here is a partial appeal is a lot more likely. what would a partial repeal look like discussions are on lifting the cap for those earning less than $400,000 a year but keeping it entirely for those who earned more than $400,000 a year. members of congress say the income proposal wouldn't solve the main problem of the wealthy moving out of high stakes because of salt. >> it's had a huge impact on

people leaving states like mine and the impact it's having on all earners. as a result when people leave, it has a big effect on schools, on hiring law enforcement and firefighters when people move to florida and texas and the carolinas like we're seeing in recent years >> the fact is most of the benefits of repealing salt do go to the top 1%, so a full repeal looks unlikely in a party hoping to raise taxes right now on the wealthy. kelly? >> so, robert, the most likely state of affairs to come out of this is some relief for lower income households, but maybe status quo for higher income earners. this isn't just about whether they quote/unquote need that tax break. it's that in a postcovid world their mobility is higher than ever >> exactly right and the party can't have it both ways you can't say no, this won't help the rich but we also oppose

a threshold of $400,000. i mean, the basic fact about repealing salt is, number one, it's very expensive. it costs $100 billion a year to repeal and two, this is a benefit, let's be honest, that really helps the 1% and you just can't get around both those facts >> yeah. robert, by the way, what's the next step in this process? it just depends on what the exact play of the bills are as they get signed? >> exactly it's all rolled up into this giant ball, both the reconciliation and the taxes and what happens with infrastructure and then the second bill so, this is a small piece of that much bigger process >> yeah. that number is, as you mentioned, so big. 120 billion or even triple the whole thing, it's unlikely that would go away. robert, thank you very much. my next guest says democratic leaders can't afford not to provide state and local tax relief and that the infrastructure deal is a

political victory for president biden regardless of whether it gets signed into law dan, how can it be a victory if it doesn't even happen >> well, the president got a big announcement on a bipartisan deal he's going to storm the country for the next three weeks starting in wisconsin this week talking about a bipartisan infrastructure deal. but this is a very shaky agreement that was reached, kelly. what you see is that the pay fors may not fully faye for the deal you also have the democratic leadership trying to link this to a reconciliation bill there's a real chance that this agreement actually never makes it into law. but by the time we're having that debate, it gives senator manchin and sinema enough political cover to join the reconciliation process and to put those provisions in a democratic only tax bill, which there's widespread agreement for. some provisions may not be able to qualify for reconciliation that was in the bipartisan infrastructure deal. but it feels like having that discussion is getting the

president the political win he needs, even though it was pretty clumsy, the rollout over the last couple days >> by the end of the year, what is signed into law in term of infrastructure, in terms of total new spending >> kelly, you know what? it feels like four years ago in june of the first year of the trump administration, nobody thought he could get his tax reform through we knew we had a very rocky six-month period of going through the legislative process. and you remember that very well. you covered it excellent during that time. and i think we're facing a very similar situation here there's going to be ups and downs. the process is not fully determined on the path that we are going to take on this. but ultimately the democrats are suggesting that they need $2 trillion of spending to stay competitive in the election. and they're going to use the tools available to get there it's like a big rubik's cube right now. they're just trying to figure out how to get all those pieces to fit that's an extraordinarily messy process. i think by the end of the year

they're going to $1.5 trillion to $2 trillion and they're probably going to get tax increases. the most important take away for investors is that the fiscal policy debate of the biden agenda started last week and the democrats are moving forward on reconciliation that's going to bring a lot of tax headline risk over the next couple months. >> how does salt fit into all this, dan? >> absolutely crucial piece. i just listened to your conversation with robert on all the pieces to this think about what the president is asking moderate democrats to do in short hills, new jersey, in orange county, california he's asking them to vote to raise income, capital gains, dividends, estate and corporate taxes. those democratic members in those targeted vulnerable districts, which are generally high income districts, are going to need the state and local tax deduction to sterilize the impact of those tax increases. now, there's $120 billion in the bernie sanders budget.

that's a huge amount bernie sanders had vowed not to put any money in that budget for state and local tax deduction, and then he did. and that tells you the forces of the leadership, nancy pelosi, house speaker from california, senate majority leader from new york and those rank and file members are going to need some salt relief. that $120 billion doesn't have to be for four years that can be for two years and you get a lot more out of it for two years rather than four years. the legislative process will term how that is strauctured, hw big the deduction is going to be i think you're seeing if they really do want trial tax credits and free community college and paid family leave, there's going to be a cost to that to the moderate democrats >> this is so disingenuous because they're saying we want to raise taxes would you tell us raising taxes so we're going to off set it by giving you a reduction in state and local taxes because of the same

priorities they're trying to pursue at the federal level. it makes no sense. >> i agree it could look that way. but what we're talking about here is about $800 billion of individual income tax increases and then $120 billion offset on state and local tax deduction. and what this is designed to do is stem the out migration of residents from low-income states to low-tax states and use a federal government subsidy for that but it will still be a sizable net tax increase on the wealthy if the biden plan or some version of the biden plan goes through, even with that salt deduction. so, why did we do this look at what new york did in the month of april they enacted a 13.3% income tax in a high-mobility post-covid world. there is just no way that arbitrage between high and low tax states can compete with that that's why schumer is going to press very hard to get at least some state and local tax relief

in there i'll say this, kelly a majority of house democrats, a majority, oppose any type of salt relief. but it's probably not their vote-moving issue, and they're probably not going to throw out that progressive wish list just for this minor change in the tax. >> i think the wong kiness of it don't you expect the bernie sanders hard core follows, the aocs of the world to come out and call this for what it is again, it's basically the rest of taxpayers subsidizing these high-cost parts of the country so that people don't flee from them to go to other parts of the country. >> yeah, and i'm just trying to give you my handicapping >> yeah, i know. >> the policy outcomes i agree completely with you. i think there's a lot to be said from the progressives who are going to be rallying against this they're going to have to weigh

their options here and that is that if you're going to get a historic investment in infrastructure, you're doubling climate spending, paid family leave, child tax credits, five-year extension of obamacare. you throw all that out in exchange for not -- in exchange for salt i think the answer's going to be no and the reason for this, kelly, is that nancy pelosi could only lose four votes in the house of representatives given how tightly divided we are and as you know the senate can move zero. there's a lot of democrats from high-tax states who are going to want some salt reinstatement in, and i think that's the political reality. full reinstatement, probably not, but you will see some compromise and inclusion if the democrats want the larger bill >> it's a good point i i could see the stump speech happening as you were describing it this boils down to inflation, interest rates, how the market is going to perform.

you can go into individual sectors if you want. we've been watching the classic infrastructure plays trading of all these headlines. what's your best advice here >> i think investors started fading the biden agenda, fading infrastructure, fading tax increases. that began to reverse on thursday the infrastructure stocks were up 3% since thursday you're going to see some level of infrastructure spending get done regardless of whether it's bipartisan or reconciliation they'll figure out a way to get some of that money in there. in term of tax increases, i would start to watch the names in semiconductors, biotech, health care equipment, life science tools, software and tech hardware those are going to be the most negatively impacted by the corporate tax rate increase. if you look at joe manchin he said over the weekend he's for 25% corporate tax rate, 28% capital gains increase i think the democrats have to bail on getting the package through before they can succeed, very similar to obamacare, but

it's likely they're going to get something done and it's going to impact different sectors differently. i would stick with companies that are more domestic based and more likely to receive that government money versus companies that are international based. >> it's fascinating. dan, thank you very, very much we really appreciate all your thoughts today dan clifton. let's get to rahel solomon for a cnbc news update the supreme court is refusing to let new hampshire sue massachusetts over an income tax dispute. new hampshire wanted to stop massachusetts from collecting income taxes from about 80,000 of its residents who have been working from home during the pandemic instead of commuting to offices in massachusetts a u.s. consumer watchdog is finalizing a role restricting mortgage foreclosures, temporary safeguards to let borrowers seek loan modifications or sales before being foreclosed. john mcafee committed suicide in

his spanish prison cell. he was found hanged in his cell last wednesday and in canada, members of an indigenous community holding a sacred ceremony at the site of unmarked graves. tonight on "the news" several churches that sit on indigenous lands being set on fire calls for the vatican to respond. continuing story, kelly. really sad one >> horrible. rahel, thank you very much coming up, we work the hottest new coworking spaces in new york city, restaurants how niding establishments are courting remote workers after this 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

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thank you for the stir fry that gets us all stirred up. whatever you can serve, we'll proudly deliver. (lively music) this past year has felt like a long, long norwegian winter. but eventually, with spring comes rebirth. everything begins anew. and many of us realize a fundamental human need to connect with other like-minded people. welcome back to the world. viking. exploring the world in comfort... once again. welcome back ups is breaking with the likes of morgan stanley and jpmorgan by allowing as many as two third

of its employees to permanently do hybrid arrangements where they can work part of the time at home. workers don't always want to literally be at home for those who want somewhere else to go, that's where new york city restaurant kindred saw an opportunity offering a third party coffee shop welcome. what makes this different, your particular concept, from people just bringing their laptops anywhere these days to work? >> sure. thank you, kelly, for having me. i would say what makes us different is we're extremely accessible for $25 for the day from 10:00 a.m. to 4:00 p.m., you get a really nice outdoor space to work from we offer unlimited ice cold coffee or hot coffee there's charging stations at every table. there's bathroom access. and really it relieves the anxiety of knowing where you can go to the bathroom, get coffee we also offer lunch. it's a way for people to have a great place to go without being

stuck at home. and i think other competitors, the entry fee is a lot higher and there's a lot more strings attached >> here's the quick question i remember when i would be coffee shop hopping myself, i never wanted to leave myself and go use the restroom. do you have a solution for that? >> we do we do have a hostess that's on site for the full day so you can come and go as you please. that's another reason people like coming to our space because once you book the table, it's yours for the whole day. we won't sell it you can come and go, arrive, go to the restroom, leave, take a phone call and come on back and keep working and then stay for happy hours. how many working days in a month? 20 is -- i don't know. do the math for me how much are we talking? it adds up is my point so, are people paying for this is this an expense that businesses might foot if they're saying to people this is a privilege to be able to work from home, so if you want to go to a working space like this,

you have to foot the bill. >> absolutely. yeah, i would love to see more corporations, maybe facebook, twitter, take this note from their workers if they're going hybrid or fully remote there are places they can send their employees for a good price where they can get out of the home and still be productive. for us, we're seeing an increase right now, you know, we ended the month of may with about 230 unique guests. we're going to end june with over 300 so, the data is there that people do want this service. and right now it's about 10% of our sales. and i think it will grow >> i have a question for you because i think you guys had some success on tiktok with a viral video that caught everybody's attention and opened their eyes to what you're offering for other businesses wondering if tiktok can translate into business, what has your experience been? >> tiktok has been a useful tool someone came in unknown to us and put out a great video, got

400,000-plus views i think that certainly helped. i used tiktok for other things like happy hour and pasta specials that's starting to definitely kick in. >> last question can you keep offering these specials it's one thing when you want to make your status known, you're on the scene, you want the name recognition. maybe these are loss leaders, but especially the way that labor and foot inputs and all that are trending these days, even just transportation and delivery is that going to be a head wind and are you profitable and how important is your profit margin? >> well, right now it is profitable, and the main goal was getting people in there. this happened -- we started this back in september during the height of the pandemic when things were looking pretty dire. and this allowed us to have passive income and have marketing toward the dinner service. and that's continuing to be the case i think this will continue, especially if we continue to have the outdoor seating but we are ready for the winter. it's winterized. we're ready to go indoors if we have to and expand right now we have a unique

customer list that wants our space and wants to have that service. >> it's fascinating. thank you for joining us to talk about it still ahead, the head of calster sees surprising upside to the meme side media and boeing the worst performer on the dow today they're not likely to receive certification for the long rangl mid to late 2023 that's a letter to boeing that was obtained by cnbc saying there were numerous technical issues that needed to be resolved weighing on the dow, down 3.5% [swords clashing] - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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welcome back the federal reserve is set to release a much-anticipated release after digital dollar but earlier this hour the central bank's vice chair for supervision says he has significant doubts about the idea, expressing skepticism about most arguments made in favor of a central bank currency or cbdc. he says the potential benefits of the federal reserve cbdc are

unclear. conversely it could pose significant and concrete risk. he also says there are challenges the public could bypass traditional banks and go straight to the fed for money and the benefits through bank competition might be diminished. an interesting point of view here of course we're showing bitcoin up about 4% today. it's no secret that reddit and the meme stocks brought younger investors in and spurred savings. leslie picker joins us with more that she explores in her new newsletter >> the whole retail participation phenomenon has a younger generation save for the first time ever where historically most waited until they were in their 40s and 50s we spoke on our alpha newsletter and said the broader public interest does have some pros and

cons >> they're speculating and investing in cryptocurrencies. speculation by itself is not good and they're going to learn some hard lessons but they're starting to save and that's enormous they will have a better generation >> some of the speculation particularly short squeezes is unusual and can be disruptive to market participants like him but he says major regulation is not warranted and activity will ultimately self-correct. you can subscribe to our delivering alpha newsletter which is discontributed every other monday at cnbc.com/deliveringalpha newsletter >> we're getting into that season >> what jumped out to you? and, by the way, this is somebody who is in a position, we spoke about this the other day, but in order to have the

best possible returns, to shore up the pension, to shore up the budget and the rest of it, this was very early on in divesting from tobacco, for instance, fossil fuels could be next i would be curious how they could be worsening that problem by pursuing those goals. >> we didn't talk too much about this but we have had conversations in the past that pertained to his participation in the whole engine number one versus exxon situation they were early supporters in the carbon footprint for exxon and were instrumental that wound up getting three of the nominees on the board so he's of the mind that it actually does serve investors to have change from within as it pertains to fossil fuels and traditional energy companies like exxon

so it will be interesting to see if they are big participants in activism because they were very instrumental in getting people to pay attention to this fight >> and there are so many stocks they could be at risk. leslie, thank you very much. again, you can subscribe to that newsletter delivering alpha over at cnbc.com. that does it for "the exchange." as heat waves stress power grids across the u.s., a look at the solar companies that could see a boost.

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good afternoon, everybody. welcome to "power lunch. join us on a steamy monday across much of the country and the letter of the day is "c." we are talking cyber crime, capital and climate. that massive heat wave across the country is leading to interest in solar storing companies. solar energy, storage. we'll tell you which stocks could benefit.