noncompete agreements like construction workers, hotel workers, disproportionately women and women of color think of the 26-year-old employee at a company who is a star worker, but she isn't being treated right. she's underpaid, passed over for promotions the competitor across the street knows it, wants to bring her in at a higher wage and she can't do it. her company threatens legal action over a cause she had to sign in order to get hired in the first place. she can't afford a lawyer for help so she's locked in. imagine if you're in her shoes you would feel powerless, disrespected, bullied, trapped that's not right workers should be free throw to take a better job if someone offers it. if your employer wants to keep you, he or she should have to make it worth your while to stay that's the kind of competition

that leads to better wages and greater dignity of work. look, i'm not going to go into it now but i used to talk about there's noncompete clauses or people running the machines that lay down asphalt if, in fact, you get offered a job and you have -- you're in arkansas doing it, a lot of the specific examples you can't take a job in west texas it do it what in the hell does that have to do with anything? no, i'm serious. or there were clauses in mcdonald's contracts you leave burger king and go to mcdonald's come on. is there a trade secret about what's inside that patti no, but i'm serious. i didn't know until five years ago the incredible number of noncompete clauses for ordinary

people who it's done for one reason, to keep wages low. period look, my executive order calls on the ftc to ban or limit noncompete agreements. let workers choose who they want to work for. i'm calling on the ftc to do away with certain occupational licensing requirements do you realize if you braid hair and you move from one state to another, sometimes you have to do a six-month apprenticeship even though you've been in the business for a long, long time what's that all about? military families, for example, they're often on the move between states with each new assignment so you have a woman in the military, her husband is following her or vice versa, guess what, if you have -- if you're a plumber, you have to get a different license when you move from delaware to missouri

look, it can't be a significant burden to get a new license in a new home state that burden can't be around anymore. it takes time and it takes money. it takes a toll on families' income while you're waiting. we should remove that barrier, providing more mobility, higher wages for families on the move this is something my wife, jill, has worked on with michelle obama for the military we're going to keep that moving. we're going to get it done let me close with this competition works. we know it works we've seen it work fair competition is what made america the wealthiest, most innovative nation in history that's why people come here to invent things and start new

businesses let's show that american democracy and the american people can outcompete anyone i know that given half a chance the american people would never, ever let their country down. imagine if you give everyone a full and fair chance that's what this is all about. that's what i'm about to do. i would like to invite the cabinet members up here. the attorney general is here general garland, mr. secretary, you can come up, too i've been watching you on television you've been really good. pete buttigieg and the chair of the fcc, acting chair of the ftc, and the director of the national economic counsel. am i leaving anybody out anyway, come on up this may be the first cabinet meeting we've had.

four fifth.

thank you. thank you, everyone. >> and welcome to "power lunch." i'm frank holland joined by bill griffith that was president joe biden signing an executive order, noncompete agreements for workers. let's bring in our ylan mui with much more. >> frank, i thought it was so interesting there to hear president biden essentially make the argument that the growth in corporate consolidation, the increase in market power is hurting consumers not just over price but as you mentioned over things like noncompete clauses

he even got a laugh when he said there shouldn't be any secret in what's in the patti at mcdonald's versus burger king that would prevent a worker from taking one job versus another job at a restaurant over things like wages i think this is a signal from the white house they are taking a much more comprehensive and broad view of what constitutes potentially anti-competitive behavior than has been the prevailing wisdom for the past 40 years the white house, though, cannot do all of these things alone they have 72 actions and recommendations they're making across the government. they're going to need the federal agencies to step up and put the things they want to do into play. >> ylan, thank you very much let's bring in the technology policy reporter for "the washington post" to talk about this omnibus executive order a lot of moving parts and pieces to it, kat how much of it really has teeth

that can have an impact on the industries it's aimed at >> so this executive order takes direct aim at the ways that tech companies like facebook and google have built and maintained their dominance. the challenge will be having the federal agencies actually implement many of these ideas. these are recommendations from the biden administration and as we know there are still many key vacancies at the agencies when you talk about overseeing antitrust policies but i think it was really significant to see lenacohn standing right next to the president as he signed this executive order. >> it comes at a time congress is taking aim at technology, big tech, and end what theyopolistis is it redundant? is it complementary? how will it work, do you think

>> it could be complimentary they are aimed at dismantling company's powers but takes aim at the ideas members of congress are concerned about. one part, for instance, calls for the ftc to scrutinize more closely these big mergers we see between internet platforms and smaller tech rivals. that's something members of congress are also targeting with the bills that just advanced out of the house judiciary committee last month in a lot of ways these efforts are complimentary and taking on the same issues. i think the challenge will be for the agencies themselves to implement them >> one of executive orders is challenging prior bad mergers. exactly how could that impact some tech companies? do you have some in mind maybe the president might be viewing as a bad one-and-one that is potentially a good one because

it's nebulous when you say a prior bad merger >> so certainly when you see that and you're talking about where democrats have landed on these tech mergers one of the big ones is facebook instagram the ftc filed a lawsuit challenging facebook's fast mergers of competitors like instagram and whatsapp that case was recently before a judge who tlhrew out the lawsuit this shows broader interest to take on some of these acquisitions if you look at companies like amazon, look google, one of the ways they've built dominance is by buying up other companies often when they see them as a threat and neutralizing by buying them and preventing them from growing into competitors. we could see more efforts to unwind other previous tech mergers that some democrats

think the obama administration or other previous administrations should have done more to stop >> that can potentially empact big business but something on the consumer level the president asking the ftc to ban exclusivity deals between landlords and broad band providers. what impact on the tech industry and what's the real benefit for all of us? i would like to think a landlord would try to get you the best deal they could. >> by targeting those exclusive deals with isps, the biden administration is trying to get after this idea that people should have choices when they're picking an internet provider making the point there are too many americans when they go to sign up for internet service only have one option and as consumers part of the way you can keep your bill lower is by looking for other options, switching from provider to provider if the ftc were to implement rules like that it could allow consumeers to have more choices

and potentially ensure they're getting the best price at home which has become so critical during the pandemic for everyone >> and we'll see if they can bring net neutrality back as well, part of the aim of this executive order. cat, thank you for joining us. appreciate it. >> thank you >> what does the policy action mean for the broader market? joining us is ron insana, a cnbc senior analyst and commentators as well as a senior adviser to schroeder's north america, and senior portfolio manager with washington crossing advisers gentlemen, thank you both for being here i will ask you both the same question ron, we generally hear the news is priced into the market. we see with these executive orders pending the markets are rallying and then there's two companies i cover, csx and kansas city southern they're targeted by two of these executive orders and both are far outperforming the market is the sense of the impact potentially overblown?

>> well, it might be in the sense it requires a great deal of work on the part of regulatory agencies and where congress would have to legislate certain outcomes or if you go back to 1998 when we saw similar allegations against microsoft and ended up in a lawsuit that took time to remediate and microsoft effectively won. i think most investors are taking the long view number one, it may not have as dramatic an impact as some would suggest and on the other end if there is some realigning of the rules they may not be as draconian and may not result in the type of penalties that some people might fear. clearly that appears to be what the market is saying today >> chad, the s&p hitting a fresh record high today. investors don't seem to be too concerned. >> right i agree with ron the short-term implications

don't really affect the overall market when you look longer term there are unknowns we don't think it will have meaningful implications on earnings over the course of the next one to two to three years overall when it comes to m&a perhaps they could slow down buyers merging together. that will open up the door for financial buyers, for private equity firms to buy companies at a reasonable price >> and to some degree an unpredictability or a volatility, if you will, that comes into play for government regu regulations. under trump they took net neutrality away, to use one example. now president biden wants to bring it back again. if there's a republican that comes back to office in three years, you might take it away again. the regulations we're talking about may only be temporary and that may be one of the reasons the market is shrugging this

off, don't you think >> you and i go back to teddy roosevelt's trust busting days and they blew apart standard oil, recombined 70, 80 years later with exxon mobil and others at&t was broken up and recombined in other ways there is a fluidity, a volatility to rules and regulations, even legislation around particular industries and their tendency to consolidate and demerge, if you will, later on this is part of a cycle we've seen play out throughout history and we may be appropriate to enter an environment there are more constraints on large businesses and engage in monopolistic type practices. it may be about market dominance and hopefully we'll see some intelligent rules of the road. you're right, volatility and fluidity is probably the key work >> chad, let's make this

meaningful for investors are there opportunities you see in the market as a result of some of these executive orders people might think about >> yeah, i would focus on high-quality rising dividend companies that are reinvesting back into their business to grow their earnings which means they'll be growing their dividends over the long run. i would ask investors not to be so short-term focused but to look out three to five years in individual companies almost as if you're buying a building or a farm you want to be one of the highest quality companies that have very, very little debt on their balance sheet that can pay back their mortage in three to four years with very consistent, stable, be durable businesses. >> ron insana, good to see you chad, always good to see you thank you for joining us >> thank you and coming up, retail trading in retreat crypto trading is hitting new highs today. how you can stay one step ahead

of that shift in sentiment a new exchange, yet another new exchange encourages long-term thinking over short-term results. two technology companies are among its first listings we'll talk to the ceo of the long-term stock exchange coming up next. as we head to the break, a look at some of the stocks hitting new 52-week highs today.

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welcome back to "power lunch. we mentioned some of those reopening plays at the top of the show, but take a look at one of those groups that's trying to finish a lackluster week on a positive note, casual restaurant chains like cheesecake factory, dine brands, global firmly in the grown but poised for weekly declines many have outperformed as the reopening continues and folks head back out in dining rooms in force. they are doing pretty well today. i'll send things back over to you. we've seen a lot of volatility in the reddit stocks and crypto in the past month has the reowingpening taken a bo steam? gamestop trading 20% below our kate rooney taking a look at

where retail traders stand >> reporter: some of the recent meme stock activity is fading but crypto traders appear to be picking up the slack here. the peak of day trading for stocks was back in january during, of course, the gamestop saga nece dropped 30% from the first to the second quarter of this year. goldman sachs lays this out and downgraded schwab and according to another research firm, weekly purchases of meme stocks, notably gamestop and amc, are down from a peak of nearly a billion dollars in june to roughly $300 million this week in the past week purchases of those meme stocks dropped by about 28%. it shows investors are, quote, falling out of love with that segment of the market. stock prices are catching up with some of that weaker demand. shares of gamestop, amc, down about 30% and roughly 6% for the

month. still big gainers for the year crypto trading hit a new high. that was as bitcoin touched a high of roughly $60,000 back in may. it's around the $30,000 range and trading around $33,000 today. goldman expects that to significantly boost in the second quarter analysts tell me it is still higher than plearepandemic leve. >> while meme mania and the crypto craze are the rage, at least right now, our next guest is focused on the long game. he has founded a stock exchange that prioritizes long-term and sustainability goals for companies over short-term gains. the biggest financial minds have proposed maybe you saw the op-ed in t"the wall street journal"

warren buffett and jamie dimon's quote informs our experience quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy growth and sustainability let's welcome the founder and ceo of the long-term stock exchange, also known as ltse thank you for joining us today >> thanks for having me. >> you have two companies listed so far software company twilio and asana, the cloud-based company what does it mean to be listed on your exchange how will people notice the difference they are listed there and not elsewhere? >> so these companies are dual listing, accessing liquidity as before, but they are committing to listing standards that we have at ltse around, as you mentioned, investments in the long term, sustainability, diversity, et cetera it's like being held to a higher

standard, showing these are companies at that care a lot about the impact they have on the world, all of their stakeholders, employees, communities, vendors and so on >> and, in fact, yes, they are both listed at the new york stock exchange they both still have to submit quarterly reports, don't they? this is what ceos have been champing at the bit about. they have to if they're listed on others, right >> reform in this area comes slowly and gradually we put long term right in the name of the company to remind ourselves to be patient this is a step-by-step reform. we're trying to get companies, their boards really focused on what is the value going to be years, decades and generations from now, not just in the coming quarter. >> a report from morgan stanley

found 10% of the market at the height of the pandemic, 15%. your exchange, you don't allow retail trading are you worried by freezing out these retail investors there might be negative impact to your exchange and the companies that list >> well, that's not correct. all exchanges, the new york stock exchange, ltse, the nasdaq all work by having member firms. ltse stocks can be accessed in the same way that they access nyse and nasdaq stocks >> let's say a stock is only listed on your exchange. can they go on robinhood and bip the stock? >> absolutely. >> sorry for the misunderstanding >> you're right that access to investment opportunities by retail investors has been declining. the total number has declined a

lot in the last 25 years and so one of the trends that we think is really important is to bring more investment opportunities to the public markets so that people can be investing for the long term. people are investing for their retirement, endowments, and these are long-term actors putting them at the center of our markets wouldn't be such a bad idea. >> no question a foebl goal you have you are working in this climate that doesn't foster that are you talking to regulators, trying to change that part of the equation so the companies are allowed then to actually think long term and act long term at the same time? >> yeah. i first wrote about the idea for the long-term stock exchange way back in "the lean startup" which came out in 2011 this has been a ten-year journey and a lot of that time has been spent with regulators trying to understand the contours and fault lines of american securities regulation. and actually the american system

does foster competition more so than other systems so we have to be grateful for the fact it is possible, although some what slow, to bring a new exchange to market and our performance is market based. our view is companies should have a choice. the existing incumbent exchanges are one of the oldest in the world and there hasn't been a choice of listing venue, a choice of government standards for companies, even those that want to be long term until now i actually applaud the regulators in allowing this reform to come to market we hope this is the beginning of a journey not the end. in terms of seeing more and more companies, regulators, different stakeholders the buy side, the sell side, all come together and say this is the future of our civilization we're talking about. it's important >> the obviously very patient esh eric reis of the long-term stock exchange a cold war brewing between u.p.s. and fedex as they ship

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here is your cnbc news update this hour after a five-year fight, the city of charlottesville, virginia, will take down a statue of confederate generally robert e. lee tomorrow plans for its removal helped spark a unite the white rally back in 2017 in houston some residents are being asked to shelter in place to protect them from chemicals at that could be produced by a transformer fire at a utility substation no injuries have been reported so far more than 400,000 pickup trucks in the u.s. are being recalled by general motors because their side air bags may explode. some 2015 and 2016 chevrolet and gmc sierra trucks are affected three explosions have been reported, but no one was in the trucks and there were no injuries after two days of being stuck on a sandbar in a kentucky lake,

the coast guard is work to go get passengers off a riverboat going from memphis to nashville, tennessee. it will take longer to get it unstuck than they expected yes, can you go from nashville to tennessee by river and get stuck, frank, in kentucky. >> i wonder what's on the boat gambling >> it's a cruise ship. >> interesting let's get a check on the markets. the dow up more than 400 points. remember, it fell more than 500 points the s&p up a percent and the nasdaq up almost down slightly from the devils it was at before the president signed those executive orders targeting in many people's minds big tech all right. time for today's power movers. overstock is up another 5% today after a bullish call from needham. that stock is up nearly 100% for the year so far.

virgin galactic is lower though susquehanna raised its price target on the stock. they did say that stock has climbed too far too fast all of this ahead of sir richard branson's space flight on sunday for more on this call and others, can you go to cnbc.com/pro just because you're here, a bonus look at two stocks that could benefit from a potential booster vaccine shot in response to the delta variant u.p.s. will add 300,000 square feet of cold chain capacity. the temperature of the pfizer moderna vaccines can be stored long terp. they partner with the government to distribute vaccines but a cold war of sorts in cold chain shipments. u.p.s. says it's focusing on

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the oil market is closing. it did just minutes ago for the week let's go to pippa stevens at the cnbc commodity desk. bill, oil wrapping up a volatile week on a high note wti crude futures advancing to 74.61 for a gain of 2% today's action follows the bullish inventory report which showed that crude and gasoline stocks both declined by more than 6 million barrels last week not quite enough to outweigh the drop earlier this week after the breakdown in opec talks and wti is ending the week down 1% snapping a six-week winning streak heading into the weekend, the national average for a gallon of

gas continues to creep up. currently at $3.14 guys, back to you. >> sounds about right. pippa, thank you have a good weekend. rick santelli tracking the action there's been plenty of it at the cme. yesterday we were talking about lower yields today higher yields. >> reporter: that's what makes the market, bill it's not only been a crazy week and this, of course, is the crazy week, it's been a crazy month. here is the month in pictures. an interday of all ten-year note sessions pay attention to lows. we do a lot of work under the lows every session for like eight in a row we do work under the lows. but what happened today doing a lot more work above yesterday's highs. that does change everything because the momentum has shifted and one of the reasons primary dealers were telling many clients maybe they need to be careful. on monday we have two options.

$38 billion of ten-year notes. 11:30 and 1:00 eastern respectively there will be some selling in front of those does this mean the big sell-off in rates and buying is done? i don't think so remember, reflation trade, there's the word trade at the end. it's up close to 26% for the year this might be a flip frank, back to you >> thanks a lot, rick. maybe we should call this the teflon trade, bill the retail etf is up nearly 50% and that's in spite of concerns and supply chain issues. the ceo of a retail consulting firm how is it going? >> hey, couldn't be better couldn't be better for the

consumer either. the consumer is really strong. >> and so is your opinion about western fashion. first let's focus on back-to-school shopping, the next big retail event. retail and back-to-school shopping will be 5%. department stores up 25% the real question will last. the tail winds and the heavens >> back to school will be a boom there's no doubt about that and it's not just going to be apparel, accessories and shoes it's still in the traditional things from last year which we saw a big pop in electronics that's going to continue despite the fact we bought a heck of a lot of that stuff last year. and so it will run right back to school and then we'll head into holiday, and holiday is really going to be good for discretionary retail and accessories and shoes and cosmetics and jewelry because the consumer is very, very healthy and they want to spend

and so far they're all dressed up with no place to go they're just starting to book vacations so they're spending a lot of money on themselves >> fair enough one of the big things recently the supply chain issues just took a look. no sign ofthose going back down right now, at least, a lot more being manufactured as we speak probably because of all the demand do you see supply chain issues, wage inflation weighing on ma margins. >> i'm not too worried about the ocean shipping component to that i think we're going to improve the container situation. i believe that is going to start to ameliorate around back to school and in the holiday. i don't think the problem, though, with domestic labor is going away no retailer i talked to right now can hire as many and they

have to hire a lot for the holiday. we have all the issues with domestic trucking. we don't have enough drivers and that will be expensive, too, to solve that problem is that a negative gross margin? yes, there are negatives but we're very thin on inventory i'm telling you if you want it for christmas and see it buy it now because it will be gone when you go to buy it and it won't get cheaper. that means really good gross margins for retailers heading into back to school and right through the holiday. that's going to offset anything we see in the supply chain and domestic labor problems. however, we have to solve those. we can't move the technology fast enough to solve those at least in the short term. but i foresee sales being really good right through the first half of 2022 at least. >> i'm going to push you further beyond that because frank mentioned the retail etf, the

xrt, was up 50% this year. now it's at 96 it's more than doubled in the last year. i guess you could argue it's a relief as it came out of its covid coma when there are natural disasters, reconstruction boom that lasts for a period of time and levels off again >> i think we'll see a transition, we'll see more and more spending on travel and on expe experiences so that will start to eat into what we're seeing. and we're going to see discretionary apparel, shoes, take some away from what has been the home and garden and we'll see some movements the consumer is looking at

unemployment below 6%. so far unemployment compensation has been very, very strong it looks like plenty of jobs in the warehouse or grocery store or retail store can probably get one. we're going to see streaks unless something bad happens i think the ability to spend will continue. that will start to eat into the ability to spend and i think it will continue. i expect the consumer to be strong the question is will we be able to deliver the product at the price they want to buy it or will we deliver too much product and have to mark it down like in the past i'm worried about comparisons will be harder and we may have people ordering more than they've been ordering whether they've been very cautious so far right through the spring season. too early to tell about next fall the consumer will be strong.

i'm not sure about cost structure. >> very good retail guru, always good to see you. thanks >> thank you and after the break, getting bullish on gm's ev push. electric vehicles. but they aren't the only detroit automaker betting big on electric our traders will debate ford versus gm coming up. and one more look at the dow trading near its session highs up 440 points. 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.

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redefining insurance. welcome back to "power lunch. "gm shares powering higher after a bullish call from webbush, initiating coverage with an outperform rating and $85 price target saying they stand to benefit from a renaissance of ev growth in detroit. gm still lagging ford year to date could this be the acceleration it needs your trading nation team are mark newton and steve of federated hermes steve, we'll start things off with you where do you see the autos heading?

>> we like autos and we like ev. we think there are two in the nexus. one is the ev theme which is a long-term growth driver. we like it from an esg and fundamentals perspective these are cyclical stock any moderation is really about supply, lack of supply certainly not lack demand and so we think you're going to see as the supply chain issues fix themselves, if you will, over the next couple of months, you'll see much more activity, a short-term boost in demand and the healthy consumer longer term the ev story and you're talking about an 8 1/2 times multiple for the stocks or high single digits which represents in our view tremendous value. >> mark, over to you based on the charts, gm or ford? >> thanks, frank look, both of these stocks have had tremendous runups over the last 16 months, up over 250% both of them have monthly rsis

relative strength index, over 70 they are overbought at this point. gm stands out as the clear favorite between the two ford has outperformed most of the year so far. if you look at relative charts between the two, a couple things stand out just looking back over the last few years and now this ratio is down to really a key area where one would want to buy gm versus buying would want to- it'sic accurate to use it on many -- and i recommend parents do such. in general, it looks appealing to buy four in general, gm has been a much better technical stocks, and it looks more appealing. great stuff as always. for more trading nation, head to tradingnation.cnbc.com, or follow it on twitter. just thinking of general motors as a disruptive technology company now certainly not my grandfather's

gm how drought out west is affecting water stocks plus the tax secrets being used by billionaire sports team owners that story when "power lunch" continues. now a word from our sponsor.

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unfortunately's california destructive drought continues. as water supplies shrink, the companies that supply the precious resource are caught in the middle chri christina -- kristina has more

>> the drought is affecting more than double the population of canada that haz investors worry recently analysts at barclays identified water scarcity, quote, as the most important environmental concern for the global consumer staples, sector. utilities companies like american waterworks, california water services, they have all been up roughly about 1 to 3% this week. there are roughly 2.2 million miles of undergroundwater pipes. much of this, though, very old according to the american society of civil engineers, water main breaks occur every two minutes in the united states you could fill up 9,000 swimming pools each day with the amount of water that's lost across the country. the united states government, with the new infrastructure

bill, does plan to invest $55 billion specifically for the aging water infrastructure for now, california is urging people to take shorter showers, and only run the dishwasher and washing machine when full. up next, another massive tax expose, this time shining the spotlight on billionaire sports team owners. the details are up next. this is how you become the best! [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪

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it is the newest expose by propublica they reveal the tax break that sports team owners use >> the team owners are saving millions by telling the i.r.s. the team values are actually declining. this article from propublica saying that steve mall better reported losses between 2024 and 2018 they say dan gilbert lowered his through the cleveland cavaliers, and then their secret is a loophole in the use of depreciation sports team owners got a special

clause that applies to sports teams. he can write down the entire $2 billion purchase of the clippers over 15 years. the team owners responded by saying, look, these are the rules. all we're doing is following them >> i think the write down on the clippers might be okay i'm an nba fan. "closing bell" starts right now. >> have a good weekend. welcome to "closing bell." i'm wilfred frost. a very happy friday. the dow and s&p, and nasdaq on track for record closes. let's see what happens. >> i'm courtney reagan in for sara eisen let's look at what's driving the action it appears to have stabilized. financials are leading as banked get a bounce off those yields. san francisco fed president mary daly warning the economic recovery could be at risk because of the delta variant