i see call activity that says coke is going to have a nice report in a couple weeks >> amazon. this is the stiffest breakout i've seen in a long time it's real. there is no resistance >> all time high today along with facebook, microsoft, google and apple having a decent day on a town take as well. that does it for us. "the exchange" is now. and thank you, scott hi, everybody. i'm kelly evans and here's what's ahead today on "the exchange." china is cracking down on its own companies. didi shares are plunging we're going to look at why they're doing it and what it means for investing in china going forward. opec meets but doesn't make a deal oil sitting a six-year high. is $100 a barrel next? amc gives up on a shareholder. advertisers are giving up on apple. and wall street bankers who don't want to give up working from home may be looking for a

new place to work and finding it those stories are coming up today. but we begin with the markets. and dom is back with those numbers. >> a bit of a sellout in the rally to record highs. we did hit a record high in the s&p 500 just after the opening bell today, and we are lower today, snapping a 7-day win streak for the s&p 500 and by the way, if you're looking for the context of where we're at intraday, at the highs of the day, the dow was down roughly 27 points, at the low down 427 points. so, we're kind of tilting towards the lower end of that range right now. so, keep an eye on that. watching what's happening with interest rates because 1.36% is the yield thatt you will get fo the best 10-year credit from the u.s. government, the treasury yields about 1.36% earlier this year we were around 1.76%. so, an interesting move here with regard to overall for interest rates, you can see

trending lower over that outperformance in technology there also watching what's happening with the banks goldman sachs is down almost 2%. jpmorgan chase down about 2% these two stocks make up 70 to 80 points on the drop. pnc financial on the regional bank side as well. so, keep banks in the open chinese internet, if you take a look at the overall market, we have seen a move lower but these two etfs, this one in particular, the orange line, ticker kwed tracked some of the biggest names in chinese big tech and internet. and by the way, since the high is over here earlier this year, kelly we are now down roughly 40% from those levels from those big chinese internet stocks. so, certainly something to watch as well. >> down 40%.

we're speaking to the ceo in just a moment. dom action thank you very much let's pick things up with shares of didi dropping sharply. cyber security review includes banning new downloads of the app. the stock is plunging 20%. it's at 12 and change, well below its offering price it's down 30% from the recent intraday high. deirdre bosun is here with the bolder implications. high deirdre >> hey, kelly. for didi those risks should have been well known. 15 pages in the prospectus relating specifically to doing business in china. before didi there was a crackdown on alibaba and other tech giants including didi itself xi jinping is sending a message that control and data protection, national security more important than having groebl champions for tech companies. that has hit other chinese

companies listed in the u.s. but the fallout could be even broader. the story isn't done shares of soft bank, they were off 5% on monday in tokyo they recovered a little bit yesterday. youtuber holds the second largest stake. there could be a trade off here. meanwhile several sources are telling me that the crackdown could also affect tiktok parent bytedance, the first chinese company to really succeed in the west i'm tolding that its listing could be delayed until 2022, and its valuation in the private market may take a haircut, a valuation i'm hearing was as high as $450 billion back to didi, there is a key question investors are asking. that is, did the chinese authorities ask the company to delay it's ipo, and if so, as "the journal" reported today, why weren't investors notified early investors as well as ones

that bought in through the ipo, kelly. lots of questions surrounding and we're trying to get to the bottom of it >> did you just say bytedance's valuation was $450 billion half a trillion dollars for a private company has to be almost unheard of i guess that's just a side note. but on this issue itself, what do you think we watch for for the next shoes to drop >> that's a good question. i think you see howdy i didi handles this and we think we're going to emerge stronger from this but i think you watch what the authorities, does the crackdown continue we saw three more companies newly listed on u.s. exchanges targeted over the weekend. so, is there going to be more? what happens with the big, big giants like ten cent and alibaba? there was this thinking that when ten cent received that huge fine in the billions of dollars

that maybe it could move forward. does that still apply or does the crackdown continue those are all things to watch for, as well as commentary from xi jinping it could be writing on the wall. they said they wanted to protect their own sovereignty and their own companies, it was very nationalistic. we'll continue to monitor what comes out of the party >> thank you for the latest. for more on china's crackdown, let's bring in derrick scissors he's asia economist at the american enterprise institute. it's great to have you both here derrick, you think you have a simple explanation for what's going on here. what is it >> we all know there's an evolving regulatory situation in china where they're trying to get ahold of what they want data rules to be like but the simple explanation here are the chinese are signaling

companies with overseas exposure, whether that's in commercial sales or financial overseas exposure, whatever their rules are going to be, they're going to trump anybody else's rules i don't care if you can make a lot of money overseas, the party is saying. our rules are the ones you're going to have to follow. when you're looking at negotiating with the u.s. about staying on u.s. exchanges in anticipation of a 2024 delisting, you better realize that whatever we choose this year, next year, doesn't matter, you're going to be following our rules and everybody else is out of luck. and if that means you lose money, then get used to it >> so, brendan, fool me once, shame on you, fool me twice, shame on me. we've heard this theme on every show this morning. people who have had investments in chinese companies where they've gotten burned are saying, i'm done, i'm over it. i think jim cramer joked that you would have to be a fool to buy into the next big chinese ipo. people say you can get exposure through an etf more broadly, but

if you are invested in individual name, you have to be prepared for this kind of financial loss what would you say about the conclusions that investors are starting to draw here in the u.s. >> well, all we're talking about is the risk. we never talk about the rewards. these chinese companies that we hold in k web are some of the strongest, fastest-growing companies globally the regulatory has not impacted their balance sheets, nor their net income statements. we didn't see that in the fourth quarter. we didn't see it in the first quarter. there's a lot of regulatory bark, but there's been no bite and it's not been showing up in the net income statements. it's not showing up in the profitability of the company i think it's important that equity investors should maybe look at the bond market. credit default swaps on u.s.-listed chinese stocks has been tightening. so, this is the exact opposite of the rhetoric we're hearing. you would think the credit swaps would be widening. >> sure. >> they're getting tighter >> so, derek, let me bring you back in here you mentioned delisting in 2024.

and what kind of access should american investors expect to continue to have to these major chinese companies, especially for those who might be thinking about getting into something like bite bytedance because of the success of tiktok? >> you know, i don't think they're going to be delisted in 2024 i think that was a signal that the u.s. wants more disclosure from china but maybe not full disclosure if we wanted to delist them, we could have delisted them in 2022 as some senators suggested so, i think there's going to be a negotiation. it's going to turn away some chinese companies that will go to hong kong, which is making its own disclosure requirements easier and you'll have to invest in the hong kong market i still think there will be chinese companies listed after 2024 and i agree with brennan that we're focusing on the risk here and the risk can be very high for individual companies but for the sector as a whole, this is awe reordering it doesn't change the fundamentals if you have a good product, you

still have a good product in a large market so, i think one company hitching your investment portfolio to one company in this case is a mistake. but fundamentals are pretty much the same as they were six months ago. >> so, brennan, a final question on that though because there is, i suppose, a concern people have about how large these chinese companies can grow if their access to foreign markets may be reined in somewhat by the leadership scoles in china maybe you have a point of view if it's either company-by-company or are they reining them in today to unleash them on global markets tomorrow? what's the agenda here >> i think governments globally are recognizing that our cell phones have become mobile surveillance devices we've seen regulation in europe. it's potentially coming here in the u.s. with the new ftc chair. and it is happening in china where i think these companies have not played nice in the sand box. they've really done everything

to hurt one another. they've put their own profitability around user and data rights. so, this -- that's being rectified. and the companies are adhering to the rules they're adapting and i think they're going to be still profitable i mean, 30% of all retail sales in china goes to companies holding. that's not changing. these companies aren't going away and i would 100% agree with derek's point. we just need communication and dialogue that chinese companies, i think the new heads of the pcob and s.e.c., we can resolve this audit issue it's been out there a long time. and i think that new leadership, we can see this put to bed finally. >> brennan, obviously you think your index or etf is the best way for people to have that chinese exposure if they want to get it we just showed the year-to-date chart as well. i just want to enter a point you made because you endorsed the idea of holding a basket of chinese companies as opposed to any individual need.

even for a basket, what would you say is the biggest risk out there for investors thinking after today maybe they don't want an individual name but a broad exposure route is still the best way to go >> just let me clarify i don't think an individual -- an individual name is veryrisk ki because the more prominent it is, the more likely it is to be a target for chinese regulators. what i said fundamentals are unchanged. i think the reason to look at chinese companies is where do you see growth in china. some people come on here and tell you china is booming everywhere that's false that's simply untrue there are sectors in china that are doing well so, if you're betting medium term or long term and you see those sec to rs growing, i do think this regulatory difficulty is transient the chinese will target companies by dance to scare everybody else and the regulatory side will settle down and whatever the growth story is will prevail in some cases that's weak, but

in other cases it's robust >> and what sectors would those be in just a word or two that people should think about having exposure to, the parts of the chinese economy that are still strong >> i would look at anything that's a bet on aging. the country is aging rapidly, as we know. the country is adjusting to it they're encouraging going to work there's a lot of elderly consumption, as well as health care of course there's management of older money of people who have saved money in china i would look at consumption patterns which i think post-pandemic you're going to see the elderly populations consumption being very strong. >> fascinating derek scissors, brennan, thank you both for a chat on this today. just a surprising move with the shares of didi still down about 20%. meantime, oil is going the other way and hitting multiyear highs before backing off of those levels slightly, wti crude still down 2%. all this comes after opec's

400,000 barrel a day production hike that was supposed to happen it's on hold the big question is when talks might resume with opec+ after breaking down last week and is $100 barrels next? jeff curry is here jeff, it's amazing how much has changed since we spoke a couple weeks ago. it seems every commodity is in the red except for oil maybe you can explain why this reaction is overdone to what opec did not decide. >> well, i would view this lack of agreement as being bullish in any way you slice it and dice it the real outcome is a price war and a price war does not make sense right now. first, all the members have said, hey, they want to resolve this and support the longer term longevity of the deal. but second of all, the market is in a massive deficit right now, unlike it was last march last march it was in a massive surplus.

so, it's just like give it a little push and down it went here you would need to cough up half of the current excess capacity to push this market into a surplus, meaning that we estimate in the month of june this market was in a 2.3 million barrel per day deficit that means you would need almost half of the capacity just to get you back to being supply equal demand so, as you can see, a price war doesn't make sense so, the question facing the market and facing opec right now is can they resolve these current dichbss in i diplomatic fashion over the course of the next four to six weeks before you have the next meeting for the september output you know, we'll see if that can happen our base case is $80 a barrel in third quarter. and the longer this takes, the more risk you get to upside. we could see prices spiking into the $85, $90 a barrel during the summer markets pretty easy the tightest market is between

now and labor day. you have the big surge in vacation and travel demand against really no supply >> a spike in prices would introduce a lot of u.s. supply into the market. the u.s. would take market share, and opec had to defend their market share by pumping more too, and that was driving prices down. is the esg movement keeping u.s. production on the sidelines right now, jeff? is that an important part of the story? >> we'll wait and see. i like to say show me a really good commodity company with great returns that's not getting capital. remember, they're coming out af really bad time period right now. part of the reason there's no capital going into the sector is that the returns have been miserable. just recently we've seen this pop in oil price and investors don't want to see a one or two month pop in oil prices i would like to point out in the bull cycle, prices started to accelerate in '03 and it wasn't

until 2006 that you saw capital come into the market remember, a lot of these investors are going, hey, we want our money back before you start to drill and as a result, the focus of the c suites is going to be return on equity, not growth in large cap x. they want to get returns in before they start to spend again. >> so, final question. if we start spiking towards, 80, 90 or more per barrel, what does that mean in term of price at the pump what does it mean for businesses that rely on fuel? how much tax is on the economy how much demand destruction do you expect to take place >> if you look at the underlying global economy, it is very healthy right now. in the u.s. you have $4 and $5 gallon prices at the pumps usually that creates a lot of noise in the u.s in the current environment at $4 to $5 at the pump, we've heard nothing. that's an indication people have money in their pockets you're going to have to go a lot higher before you start to do

big damage the big question mark, what happens in places like india and other parts of southeast asia. we'll see at these price levels. but even there you've got the recovery, basically the vaccination boom creating this surge in global travel demand that's in many cases necessary so, i would argue the tolerance for prices this time around is going to be much higher. >> we'll leave it there. fascinating. jeff, as we go, would you still tell people to buy copper on these dips >> absolutely. cop ser the new oil. we love the metal space. and everything is getting hit today, even oil. it's a broad lick dags of the reflation trade. we see it as a buying opportunity and see a lot more upside >> it's all going the other way, especially the ten year. we'll have more on that in a moment jeff, great to have you again. thank you so much. jeff currie from goldman sachs we have record highs today may have something to do with

the rates we were just talking about. what's next for the trillion dollar tech stocks we'll ask top analyst mark ma hany about that. plus the 130 countries representing more than 90% of the world's gdp. we'll dig into the details and what it will cost companies here we're back in a moment this is andy, my schwab financial consultant. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah.

andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management. we've got you taken care of, sgt. houston. thank you. that was fast! one call to usaa got her a tow, her claim paid... ...and even her grandpa's dog tags back. get a quote.

welcome back to "the exchange." a record $28 billion has flowed into stocks and funds in june, as retail investors jumped back into the market. despite the downturn today, stocks are still sitting near record highs what do you buy at the highs chief investment officer at momentum advisers. allen, it's good to have you walk me through some of your favorite picks >> first of all, thanks for having me. it's been a wild ride this year. stocks have been on fire i think you've got to look at stocks that are trading at a low valuation. value started the year off really strong. broker has been the story the last few months. i really like value here i'm looking at names that have a low valuation.

our favorite stock right now is verizon. verizon trades at 11 times last year's earnings. it's got a really high dividend. it's a superimportant stock that whether we reopen all the way, despite what goes on with covid, i think verizon is an important company to own >> no one comes on and says, you've got to own verizon. it feels like a defensive pick are you concerned about the market >> here's what i'm concerned about generally in the market. we have a market that's trading at 22 times next year's earnings, which is really one of the highest valuations we've seen on the market in a long time we also have really, really low volatility you've got the vicks in the teens and i think that sets us up for an environment where there's a ton of complacency where one false move and the market falls off i think value stocks give you a nice margin of safety. i like the income they produce

i also like being protected in the event the market turns the other way. >> you have bny citizens, devin energy you have inflation trades. this trade has gone completely sideways the past couple months. is it your view that this is an aberration that you want to sell big tech today, sell treasuries because you think rates are going higher the picture of the world's day feels like it's not the picture you see for the next six months' time >> sure. i'm not too worried about inflation. i know there has been a huge uptick in inflation in the short run. i think in the long run it will be back to normal, if you will i think the inflation we're seeing today is really the result of the reopening of the economy. it's a result of some dislocations in the labor market and, you know, eventually i think we'll get back to normal but if you're concerned about inflation, i like real estate still, even though real estate is up a ton this year.

one of my favorite picks is etf, the residential portion of the real estate market it's a reit. that's what i'm doing. if i'm worried about inflation, i would also take a look at gold, which is down a ton this year and i think gold is always, long run, a very good play on inflation. >> yeah. and if nothing else, pocket that verizon. allan, thank you for joining us today. we really appreciate it. laying out a lot of different ways to play the market now. allan boomer coming up, shares of amc are lower about 1% after the company back tracked on its plans for another stock sell the ceo giving investors the move but is it right for the company's future we're watching the work from home divide as the big banks battle it out for top traders and deal makers. don't forget you can watch us live using the cnbc app "the exchange" is back in a moment you downloaded the td ameritrade mobile app

so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

welcome back, everybody. let's get you a check on the markets. very different picture at the moment at the high, the dow was up 27 points at the lows we were down 427 we're down 314 at the moment the dow is the underperformer because of the weak performance. energy sector struggling as well it's down about 3% like we talked about with jeff currie a moment ago, that reflation trade coming off boil.

he says fade it. energy names down 3% for the sector, halliburton, same for diamondback and a few others cybersecurity stocks are green today after the attack on businesses worldwide the white house says the policy remains the company should not pay ransom but plans to discussion the ransomware attacks tomorrow with officials. mobile security names, sentinel 1 is spiking about 11% share of apple are less than 3% from a new all time high jpmorgan is out with a note saying this stock should despite underperforming the first part of the year. it's adding 1% today apple is outperforming the s&p from july to september over the past seven years why? the iphone launch event that comes on in the fall for more on that head to

cnbc.com/pro let's get to rahel solomon >> hi, kelly gun violence over the july 4th weekend is down from last year but still remains at troubling levels the gun violence archive reports 233 people were killed and 618 were injured and some 500 shootings across the country the casualty numbers are down about 20% from 2020 but not all crime is on the decline. on the news tonight, a look at how easier bond policies may be leading to more felonies by suspects out on bail you can get all the details tonight on "the news." the biden administration is expected to release new rules to protect the rights of animal formers. a trade group representing meat processors say the proposed changes could lead to frivolous lawsuit. ranchers say the new rule will reform the marketplace the vatican says pope francis is back on his feet after undergoing three hours of surgery. the pope had half of his colon

removed due to narrowing of his large intestine. he is expected to stay in the hospital the rest of the week. >> thank you very much rapid fire is up next. we're talking amc. they're abandoning their share raise. advertisers are abandoning apple. and wall street wants their workers back but they don't want to leave home. those topics and more right after the break. what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward, like through our venture capital group. backing technologies like electric vehicle charging, carbon capture and even nuclear fusion. we may not know just what lies ahead, but it's only human... to search for it. ♪♪ it started with an idea...

and became a new tradition. ♪♪ this is financial security. and lincoln financial solutions will help you get there as you plan, protect and retire. this is lincoln financial. new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

welcome back, everybody. let's catch you up on a couple stories that should be on your radar right now. it's time for rapid fire joining me to break down the headlines, let's welcome in ed lee and chrikristina partsineves i just feels like it needs explanation when we have steve grass sew, stewart frankel and a fast money trader. it is great to have everybody on board. we have a lot to get through today. we're going to begin with amc. they would have asked shareholders to allow them to issue 25 million more shares that would have diluted the base, so after scrapping the plans, the stock was up more than 5% on the news. it's turned negative

the ceo admitting while he thinks shareholders should authorize the offering, what you think and amc gets as much cash, is this a smart business decision steve grasso, you first? >> it's not a smart business decision when a stock goes from 12 to 72, you have to raise capital. even the ceo said they wouldn't be around if they didn't raise money. you have to take his lead and say we're here for a reason. we're in the environmental we're in and that's what helped more than the fundamentals. let's raise capital. >> maybe he can turn around and look at the share price and say we're going to do it anyway. >> maybe this is just him trying to appease the shareholders given that 80% consists of retail traders at the moment that's up quite a bit compared to last year. steve did mention the fact that the ceo announced not too long ago had they not had the sales or got rid of bankruptcy or got

themselves out of bankruptcy so, this is probably a stupid decision on their part because the stock is trading so high the issue, though, shares later on they can buy it back when it's $5 or $10 a share >> i can see both the case the people make who really want the company to take advantage of the high share price but i can also see the critics starting to say wait a minute. like christina said, they're still in trouble the equity price has gotten high they say this business is still challenged fundamentally speaking if they go ahead and do another offering, is it going to help them in the medium term but help them -- the box office was not great. shouldn't it be higher at this point? >> it should be higher at this point, but also, you know, the other troubling aspect is he was looking to do the fund raise to

buy more theater chains. there may be opportunity with some of these, but investment now should really go into digital. that's where the theater chains really missed out where there was five or ten years ago, that's where they failed to innovate in terms of figuring out their own consumer instead of sticking to their guns of the brick and mortar so, i think in that way that's a warning sign at the same time, i think amc's in a weird position, because doing investor relations when so much of your stakeholders are retail investors is really hard to gauge so, i think this is trial balloon. i looked up on reddit, wall street bets, people are posting, i just bout 15 more shares of amc based on this announcement alone. i'm like, okay, that doesn't make sense, but fine i think there is a chance they can reverse themselves, do the offering anyway, dilute everyone else and message boards like wall street bets will continue to buy into this stock they should take advantage of it

absolutely, i just question how they plan to use the money >> one more on this. what could amc do to ed's point maybellining in on the digital piece of the equation. what could they do to make you want to own the shares >> that brings up a tremendous point. there should have never been netflix. you know what should have been netflix, kelly blockbuster. they should have invested the money back then. so, when amc says they want to invest in theaters, i think they don't want to spook any investors. it should be digital it should be streaming they should figure out that component and that would make me want to invest in them >> don't you think it's too fragmented already think of the options we're all signed into and paying each month. how much more can we take? >> sure. think about archaic the movie theater process is i'm talking about trying to survive, not being innovative to the extreme. just trying to survive in a business model that is already

doomed >> all right the shares have turned negative after all of this drama today, maybe its own biggest draw ma that's showing at this point and i guess the next move is deciding whether he wants to move forward on the offering with all this said or not. let's talk about what's been going on with apple. the privacy policy is changing the ad market. per brand metrics, less than a third are opting in. when you get those pop-ups as a result, prices for ios mobile ads have dropped while prices for android ads are on the rise android spending is up 10% according to an ad measurement firm ed, what do you think? >> so, facebook is hurting clearly from this ios change but if facebook is hurting, can you imagine how much the other apps that are a fraction of the size of facebook are hurting that rely on this sort of ad data so, i actually think facebook is a winner in this they're going to gripe about it.

they're going to talk about how apple is this duopoly that controls the ecosystem, but facebook will be a winner because they still have more data than anybody else and they can still use what advertisers are now looking at what they call first-party data against the first-party data they collect. so, facebook's got some first-party data whether it's nike or procter & gamble, they've got their data they can go through their tracking aspect, lack of tracking infrastructure and target consumers facebook might also go more directly into ecommerce and become an ecommerce platform it's going to be harder to find people across the different apps that they're using so, facebook will ultimately win even if they're hurting now. everyone else is hurting much worse. >> and we have to move along quickly, but the question, is apple's move starting to shoot itself in the foot if these ad prices are dropping. >> the ad prices are dropping and you can have android user

revenue gained, but on the flip side this is a great marketing tool a lot of other tech companies are moving forward google has said it's not the exact same thing but cookies are being removed from web browsers by tend of 2022. a lot of companies are going to be moving as regulators really put down the hammer on these firms. i think it's smart for them to move ahead of the curve here in the united states. >> fair enough want to get one in on this whole rans ware situation. we've got the largest cybersecurity crisis yet over the weekend by exploding this software firm to a lot of small businesses they do back office stuff. they see 1,500 different companies and firms. even here, dentists offices, accounting firms are affected. the hackers want $70 million in bitcoin ransom should you ban crypto in order to solve the ransomware problem because right now nothing else

seems to be remotely close to arriving at any kind of solution for these catastrophic attacks that are crippling small businesses >> so, when you look at all of the supposedly the companies that are supposed to protect you, they can't do anything. so, i agree with you it seems like the most obvious knee jerk is to ban crypto and everyone will come through twitter and say that that's not the case but until you get some sort of a tracking on crypto, i think you have to contemplate that wouldn't you agree, kelly? >> yeah. >> i know you have to be 50,000 feet up, but what are the other options? >> christina, ed, raise your hand if you have another option here as crazy as it sounds, this was all started by an op-ed in the journal in late may where the duke researcher said you can either have a world with crypto or a world without ran some ware but you can't have both. >> we have talked about this -- >> my hands are down i don't have an answer

there's no -- there is no alternative. we're so embedded into the digital infrastructure that this is now part of the cost of doing business unfortunately and i don't know that banning crypto will necessarily change that i think hackers have been at it for years and years. i think, you know, crypto in a weird way, you know, has given some advantage to federal law enforcement in terms of tracking some of these dollars or these funds, but i don't think banning crypto will prevent or curve these hacks. >> i'm more inclined towards it than i ever would have thought, as we see these get worse and worse. let's leave it there, though, and quickly mention that's what's going on on wall street the talent war, i need to know how it's going to shake out. you've got the biggest firms on the street insisting that workers come back into the office meanwhile you've got some of the smaller ones, jeffrey's, for instance, citigroup, they're going with the hybrid approach that might entice bankers. is this going to be a major

moment for a talent drain from the top firms or no? >> think about it, kelly where are they getting the top talent from? are they going to be younger people, or are they going to be older people so, obviously the answer is they're going to be younger people so, what do younger people want? they want the flexibility of working from anywhere. and think about what these companies are now. they're not financial companies. they're tech companies where do you find the brightest minds in silicon valley, in all little pockets of tech companies around the world, around the u.s. what do they want to do, kelly they want to work from anywhere. if they want to work from anywhere, then you have to afford them the ability to work from anywhere. and this is an old guard versus new guard. this is going on a line in the sand and i think the old establishments have this wrong and i think the new ones, more flexibility are the winners. >> so, you're going to push for work from home >> well, i'm here. i would rather be wearing shorts right now and looking at the

forest through the trees >> ed's the future as i look around, those of us who are -- anyway guys, thank you all very much for joining me for rapid fire today. we really appreciate it. ed lee, kristina partsinevelos and steve grasso the yield on the 10 year, 1.7% when yields soared earlier in the year, tech tumbled amazon helped by the jedi reversal at the pentagon, all of these hitting record highs before pulling back. we're talking tech wh rka itma m hany after the break keeps us mo. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... giving us confidence in our future... ...and in kevin's. voya. well planned. well invested. well protected. ♪ ♪ ♪

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. some say this is my greatest challenge ever. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) this isn't just a walk up the stairs. when you have an irregular heartbeat, it's more. it's dignity. the freedom to go where you want, knowing your doctor can watch over your heart. ♪♪ that building you're trying to buy, - you should ten-x it. - ten-x it?

ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum! - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu. welcome back lots of turmoil in the tech world and let the tech trade still seems to be mostly working. faang names opened higher today

all hitting all-time highs some oof them reversing now. amazon still up 4.7% despite losing its founder at a critical time the china tech trade reversing, as shares of didi and alibaba all sliding. alibaba down more than 3% right now. and behind all of this the 10-year yield continues to sink below 1.4% we're down to levels we haven't seen since february. it's a move that should continue to benefit the growth gains. is this the whole story. let's bring in mark mahaney. how much of this is macro driven >> i think it's a large component of it and one you pointed out the interest rates that is clearly a ding to a lot of the tech stock, but particularly to the more speck tivoli valued. that's part of it. the other one is we are moving

from that cyclical recovery, cyclical play. q2 is fastest. now we're beyond that. we're in q3. you start looking ahead to 2022 and 2023 you like the economies because they grow faster than environments now people have started to wade back into secular growth names the best assets are the ones that trade up today. >> they're just -- they're massive. they seem to have no sign of slowing down sure they've gone sideways here and there for a long time. it seems to stop growing i want to ask you about amazon specifically how big a deal is the reconsideration from the pentagon >> well, so, that's been a -- it's a relatively big issue and maybe the right thing is being done now it should probably open this up to multiple vendors.

this is how this should have been awarded in the first place. that's big news. the other piece of big news is the day two or day one without i jeff bezos amazon is still delivering packages, still delivering cloud computing. it's the concern of the ceo transition has come and gone now we know ceo an business is continuing as usual that said i think he has a few things he has to face. >> you have amazon with a $4500 price target, 25% upside of the whole complex would you rank them favorite to least favorite do you think people can own them broadly speaking for the reasons they named do you think they're heading back to the future low growth environment? >> yeah, again, kelly, i don't think these stocks work in every environment. at least amazon didn't over the last six months as you had a cyclical strong market if you get back to a secular

strong market, amazon can outperform assuming jasse can handle the regulatory risk, making sure amazon marketplace doesn't get cluttered like ebay's did. that's his concern and should be one of his principal concerns. anyway our top pick here is amazon we like it the back half of the year and the next year play. uber as a covid recovery play and i continue to like facebook, particularly because of some research we did recently on the oculus quest device. >> uber is suffering because didi is under so much pressure but uber shares haven't really performed since the ipo. >> well, okay. we've gone through a roller coaster. we went roller coaster down because investors do care about profits and there's a lot of concerns we haven't seen profits out of uber uber has something to prove. i think they can do it we think they can do it and we

think that's going to be behind a re-rating going into next year so i really like the risk/reward here we need a clean, smooth covid recovery but we couldn't have expected it so the stock has been disappointed ride-sharing didn't smoothly, quickly rocketship back. it's not going to do that. but we are going to commute again, we are going to business travel again and uber will be a major play off of that we like uber as a stock. buy it before they prove profitability and we'll get that in the next six to 12 months. >> a good reminder that maybe cyclical revival is the biggest threat if you want to have exposure to the big tech names and we all hope we get that at some point mark, thanks for now it's great to have you on today. >> thank you, kelly. so the mega cap tech names are trading near record highs, but up next we'll talk about the tax threat that could derail the rally. stay with us this is dr. arnold t. petsworth, he's the owner of petsworth vetworld.

business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers spending potential that's built for his changing business needs. he used his card to furnish a new exam room and everyone was happy. get the card built for business. by american express. ugh, these balls are moist.

or is that the damp weight of self-awareness you now hold in your hand? yeah-h-h. (laugh) keep your downstairs dry with gold bond body powder. this may look like a regular movie night. but if you're a kid with diabetes, it's more. keep your downstairs dry it's the simple act of enjoying time with friends, knowing you understand your glucose levels. ♪♪

♪ watch the olympic games on xfinity ♪ ♪ root for team usa and feel the energy ♪ ♪ 7000 plus hours of the olympics on display ♪ ♪ with xfinity you get every hour of every day ♪ ♪ different sports on different screens, ♪ ♪ you can watch it anywhere ♪ ♪ and with the voice remote ♪ ♪ you never have to leave your chair ♪ show me team usa. ♪ all of this innovation could lead to some inspiration ♪ ♪ and you might be the next one to represent our nation ♪ ♪ this summer on your tv, tablet, or any screen ♪ ♪ xfinity is here to inspire your biggest dreams ♪ a global minimum tax may be coming as more than 100 countries are onboard so if it's going to happen, what we need to know is which companies will be

hit the hardest by it. do tell. >> multi national companies will pay $150 billion a year more in taxes every year under the new agreement for this global minimum tax. 130 countries signed up for the plan that's a lot more than expected. it's scheduled to take effect in 2023 it has two basic parts the first is a new system of taxing companies based on where they earn their sales and profits. so where their customers are rather than their physical operation or the headquarters. it would hit companies with 20 billion euros or more in sales a year and pretax profit margins of at least 10%. this is aimed at the big tech companies, which have for years come under fire for funneling profits to low tax savings like ireland, but it would also affect big pharma, biotech, luxury goods and some consumer brands a special amazon provision ensures amazon still gets taxed

even if its margins fall below that 10% threshold the second piece is the global minimum tax of at least 15%. the biden administration is saying a 15% floor would end this global race to the bottom in corporate tax rates it is also critical to biden's plan to increase the u.s. corporate tax rate since it would reduce the incentive to move jobs and incomes offshore nine countries have not agreed to this plan, including very importantly ireland, hungary and several caribbean nations. negotiators hope to reach a final deal in october and it still has to go through congress >> ireland probably being the key one to watch thank you, robert frank. up next a record-breaking cyberattack even bigger than the last one but the cyber stocks are not outperforming this year. we'll tell you why after this. hey lily, i need a new wireless plan for my business, but all my employees need something different.

oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. [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. only 6% of us retail businesses have a black owner. that needs to change. so, i did something. i created a black business accelerator at amazon. and now we have a program that's dedicated to making tomorrow a better day for black businesses.

♪ ♪ i am tiffany. and this is just the beginning. ♪ ♪ if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. for smarter trading decisions, ♪ ♪ ♪ 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. good afternoon, and welcome to "power lunch. along with kelly evans, i'm tyler mathisen glad you could join us topping the hour, rival stke