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 strikes

again. it's behind the single biggest ransomware attack of all time. is the u.s. losing the cyber war? with all of the focus on cybersecurity, why are key stocks in the sector lagging the market >> we'll explain. plus the dow dropping sharply mid-day. we're currently down around 300, 400 points but the next strategist says the catchup trade is emerging. and tillman on which parts of the economy are red hot and what still concerns him. we'll talk about all that and more as "power lunch" starts right now. and as we mentioned, the dow is down more than 400 points in session lows we're down 282 we were actually positive at the highs of the session by just a little bit but we are dragged down by jpmorgan goldman sachs as the 10-year

yield keeps slipping it's a wild day for oil. let's check in on prices which are retreating after touching a six-year high. all of this after opec plus failing to reach a deal. we've got wti crude down 2%, still over $73 a barrel and we'll hear from the saudi energy minister later in the show. let's check on ride-hailing company didi, tumbling after chinese regulators -- it's down 20%, just over $12. >> and the pentagon cancelling the jedi cloud contract which was the subject of a huge battle between amazon and microsoft microsoft is down fractionally. kelly, our big story today is that big hack attack. a notorious russia-backed hacking group has pulled off an unprecedented ransomware attack. at least 1,500 businesses have been compromised and this comes just weeks after the geneva

summit where the president and putin discussed this very issue. we have the story covered on many fronts. eamon javers with the latest on the attack a former hacker will survey the damage and tell us what happens next and an analyst will reveal the cyber stocks worth owning right now. eamon, we begin with you take it away. >> we got reaction from the white house where press secretary jen psaki said that the united states is having high-level consultations with the russians on this issue she also rattled the u.s. sabre a little bit, suggesting that the united states reserves the right to respond, depending on who the u.s. determines is responsible for this latest hack attack here's what she said >> we have undertaken expert level talks that are continuing. we expect to have another meeting next week focused on ransomware attacks i will reiterate a message these officials are sending as the president made clear to

president putin when they met. if the russian government cannot or will not take action against criminal actors residing in russia, we will take action or reserve the right to take action >> here's what we know from the company itself that was impacted here they say we're just about two hours from getting some of the servers back up and running. they say that will be expected to happen between 4:00 and 7:00 p.m. tonight they're also saying they're going to have an on-premises patch in about 24 hours. they're saying right now up to 60 customers have been directly impacted here but more broadly that has filtered out to a wider universe of 1,500 businesses overall that have been impacted by this. i've been talking to cybersecurity experts over the past 24 hours who say they think the hackers might be a little desperate here for two reasons one is, they say they have already lowered the demand they say the demand initially was $70 million. now the hackers are saying we'll take 50, so that indicates some sense of desperation to get this

done with. also this idea when you've got 1,500 businesses that are impacted, the hackers are now in a situation where they have to have simultaneous negotiations with all of those businesses about how to pay the ransom for each individual one. hackers generally are not prepared to do that. they would like to negotiate just with one big entity that's going to write them a check or send some bitcoin really fast rather than having to deal with all these little entities as is the case so it might be the case, suggest some experts to me, that these guys are a little overwhelmed by what they have bitten off here so we'll see where this goes. >> would the big negotiating counterparty be kaseya >> presumably, but people i've talked to see no indication that kaseya is going to pay that ransom and we don't have any comment from the company about that we don't know what their strategy is. are they trying to unlock everybody individually or do they have backups where they can get everybody back up and

running as quickly as possible but will they try to negotiate down and get it even lower and just pay. >> something the u.s. government doesn't want those businesses to do, and we'll talk about that more with our next guest thanks, eamon. so will these attacks get worse and more damaging, broader, bigger our next guest is kevin mittnick he made the fbi's most wanted list he was twice convicted and jailed for cyber crimes. but now he's gone from the dark side to helping companies combat attacks. he's the ceo of a cybersecurity firm, mitnick security explain to those who haven't been following this story over the weekend what went on here, why kaseya is at the center of it and why it has metastasized as broadly as it has. >> well, first of all, rebel is

a ransomware group and they have affiliates so this is called ransomware as a service. what that means is they're not actually deploying the malicious code, it's these affiliates, these people that are using this ransomware as a service platform and what they did is one of these affiliates found on they not -- authentication bypass, they found something on the kaseya's platform that allowed them to log in without any credentials. then they did a super sophisticated attack where they were able to interfere with the update process during the update process it would actually deploy the malicious code which turned out to be the ransomware what i was reading about this today, this was super sophisticated. this wasn't the type of stuff where your computer would be locked and you'd have to pay 300 to $400 of bitcoin to get this back this is a sophisticated trade

craft. this is almost to level of nation state but it could be these russian gangs. don't forget, these gangs are making tens of millions of dollars when they're compromising these victims and actually paying out these ransoms. so they can hire the best security researchers, maybe they're doing it as shell companies so the researchers don't realize they're working for the bad guys they develop these tools like zero day exploit a zero day exploit is a security hole, for example, in a product that the manufacturer doesn't know about so they can't patch it in this particular case, the bad actors used a zero day exploit to deploy a fake update. what this update did is it deployed the ransomware in these kaseya devices this was actually pushed down to the customers, because their customers were msbs and it was pushed down to those customers and i believe earlier on the show you mentioned about 1,500 that's an amplification attack

what these bad actors are doing is instead of targeting one company at a time, they're targeting msps, because those msps have customers an it amplifies the attack and they're to monetize it in a more expedient way. >> and msp is what again >> managed service provider. >> managed service provider. so you say rebel, i said rebel i'm not sure which is more appropriate here i'm going to take your word that the proper way to pronounce is it revel you said this is a super sophisticated attack, that's my question what makes it so super sophisticated? and we are calling it the largest such attack of its kind. what makes it the largest? is it that me tas tasz over 1,500 companies? what is it what makes it so big in scale?

>> it was the trade craft they used to evade any anti-virus tools. the trade craft to use zero day exploit to carry out this attack it was more the technical under the hood and how it was working is the super sophisticated part of this. the ransom going up, i think that's what we're seeing as these ransomware attacks grow. we're seeing the numbers rise. and it's already been common knowledge that these bad actors are going after msps that's nothing new so the amounts rising is not really interesting, it's really how they went about deploying the malware. >> are we losing the cyber war >> well, it looks like the bad actors are ahead, unfortunately it's because a lot of companies think if we enable very strong passwords or we add two-factor authentication that that's really going to stop ransomware attacks. of course that's a good thing to do, but the bad guys aren't

going through the front door they're going through the back door and finding vulnerabilities like they did with kaseya and getting in that way to deploy the malicious code so companies have to do much better at protecting their organization of course a lot of this stuff is they're encrypting their files what businesses ought to do is look for appliances that create an air gap a lot of these backups in a business environment are done in such a way that the bad actor breaks into your company and are able to manipulate and damage those backups. >> quick questions, quick answers, kelly. >> kevin, a lot of the affected businesses, yes, swedish grocery stores and all that kinds of things but also possibly dentists' office, accountants' office, these are not people with sophisticated setups. even the third-party vendor whose software they're using,

either it's the vendor that needs better system or the client themself and the back and forth. my real question is this is there any way to really combat these ransomware attacks other than the suggestion which is to literally ban cryptocurrency is there any other way to stop these attacks from happening >> it's quite difficult. what companies need to do is secure their infrastructure. the first thing i would do as a business owner is get cyber insurance so that way if something bad happens, i'm covered. it's about maturing your security program and looking at everything inside the business to reduce that attack service. test your company by doing penetration testing and red teaming. test harden which means reduce the attack surface, which means look at all of the devices in your company and configure them in such a way that it reduces the opportunity for a bad actor to attack. and then of course train train your users on, for example, how not to fall for a

phishing attack because that's usually the way ransomware gets in. >> quickly before we close, white house says u.s. policy is companies should not pay ransomware demands in cyberattacks agree or disagree? >> that's easy to say for the government and i understand that the u.s. treasury, if there's a sanctioned hacker, that's a problem. but as a business owner, i want to get up and running. if i am down because all my files are encrypted, i could go out of business. so as a business owner i might be forced to make the very uncomfortable decision about paying these bad actors so i can get back up and running. >> kevin, thank you very much. kevin mitnick, cybersecurity expert thank you again. >> when it comes to cyber it turns out not all the stocks in the sector are created equal over the past month checkpoint and f buy have been under atack. our next guest just initiated coverage of the sector and has a

list of the stocks worth owning. welcome to you what is the main thing you're looking for in picking which names in the cybersecurity space you want exposure to right now >> i think one of the things we keep seeing out there is that shifting infrastructure from on premise to off premise i think in that distinction you mentioned cloud strike, cloudfare. both these names have been born in the cloud they provide great cloud infrastructure that's the space we are seeing them trading at outperformance level nowadays they do provide some of the solutions that could have prevented in some sort of way some of the attacks that we have been seeing over the course of the past few months now. also, you mentioned checkpoint, you mentioned f5

these are companies that predominantly address on-premise infrastructure even though they have started to provide some cloud solutions. so we are seeing those shift in appetite to own more of the saas cloud security-driven names. >> excuse me, let me make sure i got this right so you want the names that are in the cloud or you want the names that are doing on prem >> we're actually -- we have a preference towards names that are predominantly geared toward the cloud, that's number one but at the same time there's another group of hybrid providers. those companies that do provide both on premise with off premise/cloud solution another top pick on whichwe published is making new historical highs on a daily basis. >> why do you think it is? this could be the kind of environment where cybersecurity names are the next great secular growth story and investment.

why is it that some of them have just had a difficult time outperforming the market is it because they have to invest so much to keep up with the hackers and make sure that they are on the cutting edge is it the -- does that pressure their earnings why is it that a lot of these names struggle to even match the market >> so i think what we have, to be fair here, if we go back to 2020 on the heels of corona and the aftermath, the cybersecurity traded up about 100% so the combination of profit taking on the one hand but investors that are taking a longer term look towards the cloud-related names and see the investments that go into that. they are willing for the time being to let go of some current for the sake of top line acceleration as well as building acceleration so we have been seeing that. those companies, business models, typically scale within a

matter of three or four years. you brought up crowdstrike that is about to triple its arr from 1 billion to 3 billion over the course of the next three years. investors are willing to make the current investment and see the profitability and the cash coming down the road. >> thank you very much more and more investors are turned on to the need here appreciate it. >> kel, i'm interested after what kevin said to talk a little bit about the insurance companies that are in this business. >> yes. >> because he said your best defense is a good insurance policy there have got to be plenty of companies that are ramping up that business and able to charge more. >> prices are up if you want this kucoverage, thn of the losses. there's a number like 20% or 50% of small companies that have a cyberattack can barely survive them there were dentists' offices hit

a few years ago by a cyberattack and are spending the next month trying to get their offices reopened and access their patient records. the other issue is there's so many kinds of cyber liability coverage people might think great, i just have to check a box. >> and they may know that it tops out at a million so they'll set their ransomware ask at 950,000 or a million dollars. >> it's interesting that he thought that could play a role because even when they can chase down and help people to unlock the situation, this is not -- you can't -- it needs to be a much bigger, more top level solution. >> top level and multi-front it would seem. >> exactly. coming up, from tech to health care to banking deutsche bank reveals its list of the single best investment ideas for the next 12 months we will bring them to you. later despite opec's family feud, energy is still a favorite sector of one of our next guests he explains why and the best

ways to play it. as we head to a quick break, a look at some of the stocks hitting 52-week highs even as the broader market pulls back.

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fresh money list in the technology space deutsche likes dell it's trading at a multi-year discount to its peers. in health care, medical technology company stryker is their top pick it well positioned for sustainable growth and has significant business activity. in the consumer space, three names make up that list. mandelez, marriott vacations, and under armour under armour has impressive longer term margin capitol one is a topic in financials with the firm saying it offers a solid return and superior upside versus its peers. for the rest of the list head to cnbc.com/pro kelly will get the full note and list back over to you. >> thank you very much, dom chu. up next, could growing fears around the delta variant hurt travel stocks just as things were returning to normal

plus if the travel stocks fall, what does that mean for leisure groups like casinos. vegas saw its best gaming revenue ever in may. he'll join us next to weigh in

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welcome back i'm rahel solomon. here is your cnbc news update at this hour. a hurricane warning has just been issued for a portion of florida's gulf coast by the national weather service elsa is now a tropical storm with 70-mile-per-hour winds, but forecasters expect it will be a hurricane by the time it comes ashore sometime tomorrow although the state's governor warns that those winds and the storm's exact path are only part of the threat. >> it's important that floridians don't focus on the cone impacts are expected well outside that area. if you look at how the storm is, it's incredibly lopsided to the east, so most of the rainfall is going to be east of the center of the storm >> emergency shelters are now being prepared around the state in case people need a place to stay due to storm damage or severe power outages this school gymnasium will be ready with cleaning supplies and hand sanitizer as a covid

measure. and in belgium a new home for ten gentoo penguins. this species is from antarctica. they'll live in a 9,000-square enclosure with saltwater and rock hopper and king penguins will be added to the mix in the coming months. kelly, it sounds like a pretty good party to me. >> what kind of penguin is that? >> a gentoo. they're from antarctica. they're quite charismatic but also quite cute. >> that looks like fun. >> and they're the fastest penguins, apparently. >> wow. >> the more you know. >> exactly, rahel, thank you the dow is off the lows. we were down 427 at that point the s&p and nbc outperforming. the nasdaq is about to turn positive, it's down three points so we'll watch that closely. in the meantime so much of the story is unlocked in the bond market rick santelli can maybe make sense of the 10-year yield for

us rick >> i think it makes perfect sense. you don't fight the fed, there's a lot of glitter to go around. the downside of equities is actually pushing back some of those fed tightenings that started to get pulled forward with the dot plots so look at the intraday of 10. right now 10s and 30s look to be on pace for the lowest close since february here's the key open it up to may of 2012 because july of '12 and july of '16 we had double bottoms, 1.36 and up 1.38 most likely we could erode and test 1% again. while all of this is going on, the dollar index is zoom zoom zooming to the upside, a close above 92.60 is a technical breakout they taught t-bills today. high yield etfs at a 17-month high they can't get enough of any securities tyler, back to you.

>> rick, thank you very much and ahead on "power lunch," today's special menu item is tillman fertita. he joins us next to talk business specs, and more. oil lower after hitting multi-year highs the white house says it has held high-level talks with opec members. and bitcoin volatility continues as china ramps up its crypto crackdown tom lee still sees bitcoin hitting $100,000 by the end of l isndorwh alth a me en "power lunch" continues after this. we are thrilled we finally found our dream home in the mountains. the views are great, the air is fresh. (sfx: branches rustle) it is bear country though. hey boo-boo! we hit the jackpot! bear! bear! bear! look, corn on the cob! oohh chicken! don't mind if i do! they're hungry.

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welcome back the oil market is closing today and prices pulled back after hitting multi-year highs let's go to brian sullivan who just spoke with the saudi oil minister and has more information for us brian? >> yeah, kelly, thanks very much oil closing down a bit on concern the current opec output deal could implode or opec itself could fracture. the market is nervous about the every nation for itself

mentality again that hit last year when oil prices collapsed so very timely, i guess. about an hour ago i wrapped an interview with saudi oil minister it was a long interview, about 20 minutes long. part of it i asked him about any failure to get a new deal done or whether the current output cut deal itself, the one that's still in place, could fail setting off a price war like that last year he rejected that out of hand >> the very basic argument is that in march 2020, that agreement by the end of that month would have concluded so actually in march 6th we were trying to work out a new agreement. in this one, no, we still have a nine-month period. therefore, i have no qualms in

my mind that i can speak now for saudi arabia that we have no single doubt in our minds that we will live to this agreement i have heard from so many of our colleagues, in fact i don't recall any that did not repeatedly stress the commitment to this agreement. so comparing what was happening in march 2020 and what is the story now, i don't think there is any type of similarity. >> so what he's saying is, is that if the new deal, the output increase deal does not go, the old deal where we get no new barrels will hold. that is bullish for the price of oil. we also know the white house has been monitoring what is going on saying that there have been some high-level discussions between the groups, the white house, opec members, et cetera.

so i asked him if he himself personally had spoken with the white house directly >> i'd like to be honest, but i haven't yet personally talked to anybody yet. but of course i'm not at liberty to share any of these things i'm entitled to speak about what did i hear and what did i speak, but i haven't yet spoken to anybody. >> all right so that's important. he says he personally hasn't, but he couched it about not being able to go into more details. given the risk of much higher oil and gas prices that are possible, it is conceivable that the white house talks are at very high diplomatic levels in washington because $85 oil, $5 a gallon gasoline if it comes certainly politically won't fly. right now opec and this production deal holds a lot of the cards.

he also added there are no current ongoing negotiations as well much more on worldwide exchange tomorrow, 5:00 a.m. eastern time we'll put the whole thing up on cnbc.com tyler, if i was, i don't know, a billionaire, i lived in texas that owned consumer products businesses, i would be concerned about the price of gas but i don't know if you know anybody like that. >> well, as it happens, we do, brian, and we're going to -- i know he's a friend of yours, a friend of ours and we'll talk to him right now. perfect setup. thank you, bri as the nation's recovery and reopening picks up steam, there are still some major headwinds facing many companies. brian just mentioned one, rising fuel prices. our next geuest is skeconcerned in spite of it all business is booming at restaurants and in vegas. tillman is owner of the houston rockets and more good to see you.

since brian left us off with the idea of rising costs, why don't you take us through your businesses and tell us where you're feeling rising costs pinch, food, labor, possibly fuel as people maybe cut back driving, though it doesn't seem like they're doing that right now yet. >> well, the consumers there, that's the best thing of all of it now we've just got to keep the costs down what brian said is so true because what happens, all of your deliveries. everybody that brings us products starts putting surcharges on us and then the consumer starts looking. if i'm paying $5 for gasoline, maybe i can't buy in a restaurant ofr maybe i can't quite make it to a casino, so it can have a huge impact on us but then flights going up so maybe people start driving to closer locations and so i've seen it when gas goes up that it helps us and

i've seen it where it hurts us i don't know what's going to happen this time, but you can't have inflation and everything at one time but we have to remember, labor has gone up. everybody is making a little more money and so when that happens, we're just kind of getting inflation everywhere right now what's funny about the consumer right now -- >> go ahead. >> what's funny about the consumer is they like the high end. it's the high-end steak houses, the high-end seafood houses. it's not your rain forest and your bubba gump's, it's your mastro's and your del frisco's where everybody wants to eat. >> there's lots of reasons why that is. obviously people with limited income can't afford to eat there. but do you think that's sort of the explosion of animal spirits that we're free and we can go and enjoy and we've earned in a

sense those little self-imposed luxuries >> for sure. and if you talk to all high-end retail, they're doing great. but you've got to remember, some of the stimulus is coming to an end, but also just starting last week, all these child credit actual checks started going out. if you made under $150,000 a year, per child. most people haven't gotten their refunds yet. so you're going to continue to see money pile into the economy probably the rest of the year. then i think what's going to happen is we're going to lose some of this consumer, but we're going to start getting back the business consumer and the conferences and the big party rooms and new york and l.a. and all your big cities. so we talked about it being the roaring '20s and i think that's truly where we're headed for a while. >> tillman, it's kelly here. you mentioned mastro's

the fertitta spac will now have mastro's along with vic and anthony's and catch. when is this thing going t market and when is it going to be public for the rest of us >> i'm going to tell you i owned 100% of my company and i chose to take x amount public and keep certain things, but the high ending was doing so well. it delevered the company even so much more that it gave me the ability with the market booming out there to go out and do a huge acquisition or multiple pretty big acquisitions because it delevered me so much. i just looked at the whole thing and said this is what's best for today. this is what's best for me as a shareholder that will own 72% of the company. and i think it was the right thing to do the way the world is today. >> all right one more on this and then we've got to ask you about basketball

before we let you go but on this spac deal, you know, i know we've talked about why you're going this route. it still seems maybe you could have done better on a traditional ipo route but long story short, when you get the proceeds, what are you doing with it? are you putting it into the houston rockets or do you have much bigger ambitions in terms of what you can do with this capital? what are you thinking? >> first off, the houston rockets have nothing to do with this whatsoever. the houston rockets are owned by me and my family personally, 100% of them i would never put them in this deal what i'll do with the capital is pay down debt and sit there and look for the right acquisitions. i still have assets that are not part of this and the houston rockets are one. a lot of my hotels so when it's going to happen, it will happen in the fall. remember, we did the spac because it was supposed to happen quicker

but what's happened when the s.e.c. said, oh, we want you to now treat things differently in a spac this way and different this way and we want you to do your warrants this way, it ended up slowing down the process. but, you know, we've gotten through that all spacs are very upset about it right now but i think us and the s.e.c. are all plowing through it and hopefully everybody will have a merry, merry christmas. >> as you look at the nba season, the finals begin i believe it is tonight. you've got milwaukee and phoenix, two teams that haven't been in the finals in years, decades, decades what are you looking for there and do you have a lean toward pick here? >> you know, i don't mark lazarie and i'm a big fan of milwaukee and those guys and rick sarber has done a great job out there and chris paul is there and i think the world of

chris. i'd love to see him win a championship but it's great for the nba that you have a team that has never won a championship like phoenix and you have a team that won one 50 years ago, gosh, when i was just a kid, you know, with lou alcindor, who of course is kareem today it's really exciting there's no super team. it's teams with a bunch of great athletes i think it's going to be just a great nba finals i think the whole playoffs have been just spectacular this year. >> yeah. it has been a very interesting season ratings were up now, they're off a little bit, but it's been very interesting. a lot of the players obviously have kind of broken down and that's concerning, some of the big headline stars tilman, always great to see you. stay cool, my friend >> thanks, guys. have a great day. >> you too

tilman fertitta. fears grow around the covid variant around the globe could it divert a rebound? our traders discuss that, next

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welcome back to "power lunch. i'm seema mody the tsa screening more than 10 million travelers over july 4th, but a different story overseas with parts of asia and europe reimposing travel restrictions due to the fast-spreading delta variant. so what could all this mean for the travel industry's comeback in the second half trading nation team today is ari wald and delano sapporo. international travel without it, that's about a $90 billion loss for the u.s. economy. >> yes i would say in a situation like this you want to be more diversified so stay away from the hotels and a lot of the travel, the cruises, and go upsource and look more for the point of source, which is booking platforms. i like trip advisor here for the few reasons. one, that first point of contact

for people and two, diversification of their businesses so they have the experience in di dining if they do a good job of cutting costs and getting out of the loss of last quarter, i think they'll be in a very good position there so i would stay away from thehotels and cruise and look more at platforms for a buying opportunity >> ari, you were a fan of the hotels hilton over marriott tell us why. >> yeah, we recommend being selective more broadly speaking. here's why what's equally important to us is how these stocks behave on the down cycle, not only when the trade is working, the trade isn't working right now. we like that hilton has been able to keep pace on the upside and hold up much better when the group -- the industry is trading lower. so we don't see that performance gap since 2018 as a valuation spread that needs to converge.

we see it as a relative strength and leadership that makes hilton the more attractive idea >> got it. we'll see if more investors become more selective. travel has been a winning trade in the first half of the year. we'll see what it means for the second half. thank you both for more trading nation head to our website and follow us on twitter. tyler, over to you. all right, seema, thank you. up next, the dow on pace to snap a four-day winning streak. honeywell and disney dragging the group lower. are stocks in for a choppy month? we will hear from tom lee next on "power lunch," back in two. and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> for entries into breakouts some traders use buy stop limit orders placed above resistance levels unlike regular buy stop, buy stop limits turn into limit orders when the stop is triggered. thus if it closes below the

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our next guest warns the market will be choppinessy that creates opportunities for investors in areas like oil and crepto tom lee, it's great to have you here we don't have a ton of time. i would look to get there as much as we can with you. why is oil your topic the rest of the year? >> i think is has inyo sin crattic virtues. it's a supply market, capital starve ace and now uncertainty is causing production to be slower i think there will be a big demand swing, something you haven't seen in almost a decade. energy stocks could have a 30% or more second-half return >> so how do you think that measures up against the market as a whole against the back half of the year. >> yeah, so strong markets stay strong that's why we think the s&p can

end the year at 4600 or higher it's probably like 4300 thousand, but strong markets in the first half have to digest. that's why we think july will end up being a choppinessy month. >> the faang trade you see we tarred to mar meheny about it, and he said this is not one of real cyclical strength is that kind of where you're coming from as well? >> yes, part of it is a little calibration. the faang are some of the best companies in america with some of the best growth rates we upgraded to overweight in early june, because the outperformance of financials ver faang was something you hadn't seen in almost 12 years, so as

rates are undershooting, apple amazon are up less than 7%, but the s&p could finish up 23, we think there could be a catch-up fang for faang in the second half again, if we review the first half of the year, we've had the trade that was predominant with if this and energy, now you like energy, but also maybe faang direction of the ten-year going kind of maybe sideways from here or what do you think >> i think sideways is more likely than consensus. i think rates are headed higher, but three components are real growth, term premium and inflation. inflation breakevens are thoughs, so unless real growth accelerates, i think there's downside pressure to rates, which means down flat. at the end of the year that's t.

again, tom, comes from where in a red-hot economy? >> well, again, if there's three components to interest rates, gdp growth, you know, we might see the fastest rate of change now, so real growth isn't until accelerating s essential break-evens peaked in early may, and now they're at 2.1, so now the market's future inflation risk is lower. then what you call implied volatility or term premia for rates is dropping, so i think there's three sort of rates they're lower. >> tom lee, we got to go >> yeah, a big generational trade. 30,000 to 100,000 in six months has happened -- the percentage changes multiple times

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. the shareholders meeting intends to nominate three directors to the board the stock is doing well, tyler. >> that's not bad, actually, 45%. you want to get rid of the guy, who knows -- thanks for watching "power lunch." "closing bell" starts right now. >> yes, it does. welcome to "closing bell." i'm wilfred frost, stock kickses off shall shortened week. >> i'm courtney reagan in for sara eisen oil drops after opec-plus talks broke down this weekend. still strong overall after hitting a new record of 64% in may chinese stocks are getting hit