get a quote today. cynthia suarez needed to buy new laptops for her growing team. so she used her american express business card, which lets her earn extra membership rewards points on purchases for her business. now she's the office mvp. get the card built for business. by american express. good afternoon, everyone, welcome to "power lunch. topping the hour, the comeback rally. stocks making back most of yesterday's rout but does one key question need to be answered square pushing further into

banking. will it be the money center bank of the future? we'll talk with an analyst who says yes. and this just in, crypto exchange ftx closing a series b funding round. more than 60 investors participated biggest cap raise ever for a crypto exchange. we've got the ceo with us later this hour as "power lunch" starts right now first to the markets, which have staged a pretty nice rebound after yesterday's big declines we're about 100 points still off the session highs but the dow is up 580 both the s&p and nasdaq are up almost exactly 1.6%. the 10-year yield, which was still under pressure this morning rebounding a little bit as we move through the session today. you can see it's back up to 1.21%. the inflection point looks to be just around 11:00 a.m. eastern time in terms of sectors, industrials and energy two of the

hardest-hit groups yesterday are seeing strong gains today, as are tech stocks and consumer discretionary. it is a pretty broad-based rally, ty. as today's rally wipes out most of yesterday's big losses, yesterday's worries don't necessarily go away. we've got bob pisani at the new york stock exchange to explain hey, bob. >> hello, tyler. are you confused yet what happened to all the worries about the covid variants oh, that's so yesterday. don't worry, folks, wall street has an explanation for everything the comments i'm hearing from some of the trading desks about why we're having such a big reversal today some people are worrying well, you know there's an asset allocation program going on. we're buying stocks and selling bonds. then i hear, you know, bob, there's heavily oversold conditions out there in small cap stocks and travel and leisure stocks and industrials because of that we've got a lot of people going out and buying the dip. pick one of these, folks, and you're just as didn't as all the other ones

take a look at all of the reopening stocks all of them yesterday down 4, 5, 6% guess what, they're all up 4, 5 or 6% today. how about the anks remember yesterday all those big superregional banks like zions were down 3, 4, 5% they're all up 3, 4 or 5% today. how about industrials? remember yesterday ge, textron all down down 3, 4, 5%. guess what, today they're all up 3, 4, 5% remember what happened with nvidia it ended up up yesterday and indeed it is down today. apple and amazon were down yesterday. apple and amazon are up today. the pattern makes people crazy the covid variant story is not going away, however. here's the two issues that i'm hearing. number one, earnings season is

coming up. will ceos be a little bit more cautious about the reopening story? everyone is expecting glorious commentary about how well things are doing. might this recent outbreak or concerns about regional lockdowns or any lockdown at all temper some of the enthusiasm? number two, the federal reserve might, if this gets a little worse, might the fed be a little more cautious on ending the bond-buying program? these are still questions that need to be resolved. all i can tell you is there's a lot of people calling me up today and saying why did we reverse? well, you pick your choice guys, back to you. >> well, bob, you make some good points bob pisani down at the nyse today. it's been a roller coaster ride with the bond market as well with the 10-year yield turning higher rick santelli has the latest for us rick >> for the last couple of weeks that roller coaster ride has been predominantly aimed downward yields have been moving down don't you remember a time not long ago you were talking about how many sessions in a row we

were in the 1.50s and 1.60s? those are gone look at an intraday of 10s yes, we're at 1.20 just shy of 1 sp sp -- 1.21 yesterday we started at 1.29 and went to 1.17, 1.18 if you consider that at 1.17 if we close underneath there, we'll close under yesterday's low after a big drop in yields over the last couple weeks. not good so you really want to watch the close. but it doesn't end there the dollar has found love with all this volatility and it is slipping a bit today look at the pound versus the dollar it's virtually unchanged and now lower on the year. the dollar index as you see on this chart, it's not far away from being close to the best levels since the fall of 2020. tyler, back to you. >> all right, rick, thank you very much. rick santelli. our next guest says the

sell-off yesterday was not driven by fundamentals but instead by the unwinding of crowded trades let's bring in russ costrich, portfolio manager of the blackrock global fund. trimmed his positions in recent weeks. russ, always great to see you. as bob said, well, bob, well, russ, why the big turn-around today? >> you know, again, pick your headline i sort of agree with bob a lot of people are going to name covid, i get it there's uncertainty about the delta spread i think there are other things going on one, you had a lot of people that were crowded in different manifestations of the same trade. you were short duration, long cyclicals, that got really popular. some of that is coming off the other thing is i think a lot of this begins and ends with the rate market. if we look at how markets are

behaving, we see that equities in a lot of sectors, particularly the banks, are following the rate market. if you want to know what stocks are doing, you probably have to start with why are bonds doing what they're doing. >> let's talk about bonds a little bit where do you think interest rates -- between what bounds do you think interest rates are going to vacillate over the next weeks and months >> well, look, full disclosure, i did not think we'd be talking about a 1.15 10-year with the best growth we've seen in the united states in several decades. so it's pretty inexplicable. rick reeder was on before and spoke a lot about what's been going on you've got record liquidity, you've got a dearth of high-quality assets, and you've got international bids coming in that once you hedge back treasuries to pick your spot, again, euros, they look more attractive than what's on offer in many other countries. having said all of that, i think

those explanations tell you why the 10-year is not at 2% it's not clear why you should be a little above 1%. our best view is still the fact that real rates are too low. negative 1% is completely inconsistent with anything you saw even last decade, which was a slow growth decade so we still think you can see some backup in yields. it's not going to be enormous, but i think where we are today is too low relative to what we're seeing in growth and the fact that at some point the fed will have to take their foot off the gas pedal a little bit. >> i was speaking last week with an experienced investor who said i see no reason whatsoever to own bonds. is he wrong? >> i think it depends on the top of bond. you know, there's still some opportunities in select em we're not adding to high yield, but if you have high yield in your portfolio and clipping a 4% or 5% coupon, that's hard to find in this world. >> yeah.

>> but certainly owning treasuries, owning bunds, owning a lot of where dm rates are at today, no. you don't have a lot of motivation clearly the yields are unattractive the second point, which you well know, is that unlike three or four years ago, they're not giving you the same hedge that they were. most of the reasons you'd own them, they're not what they were. >> yeah. i think he was talking about governments and so you basically fundamentally agree there. let's do talk about your stock positions now. you say you have trimmed a little bit of your overweight in equities why and where? >> so we have brought it down. we were fairly -- we had pretty significant overweight to stocks clearly you had a huge run on the back of very stellar earnings having said that, we are coming up on a seasonally weak part of the year there's going to be some shift in the liquidity environment to ones that are bringing that back

down we're still overweight where we've been trimming relative to where we were a year ago, we have less tech in the portfolio. we probably are a little bit more balanced when it comes to value and growth we still think that having exposure in high quality cyclicals make sense what do we like? select parts of manufacturing. i'd still be very constructive on the consumer. despite all of the challenges, despite the risks of covid, it's under remarkable how good shape the u.s. household sector is whether you're looking at income growth, the savings rate or looking at wealth. so looking at ways to lever the household consumption is still a very big theme in the portfolio. >> what do you do on the inflation rate what's your expectation? what do you have pencilled in for the fed here >> our view is that inflation will remain elevated i'll use the dreaded "t" word,

transitory while you can view inflation as transitory, and we do, transitory can easily last into next year which means we'll probably see a period of heightened inflation that said, we do think it's going to moderate as we get into 2022 and again the reason is all of the secular factors that kept inflation low last decade, technology, demographics, they haven't gone away. the supply bottlenecks will ease as we get into next year we think you can see some moderation of inflation back to 2% or probably a bit above. >> always clear, always great to have you on, russ. we appreciate your time today. >> thanks again. coming up, square is coming to the big banks we're going to speak with an analyst who compares buying square today to buying jpmorgan back when it was founded. plus netflix has been dead money this year. will its earnings after the bell kickstart the stock or is subscription fatigue setting in? our traders take their position. as we head to break, here's a look at some of the stocks

hitting new 52-week highs. we're back in a moment

here are the two battling to the line and allyson felix... simone manuel's above her trying to fight on, and above simone... getting an opportunity to show her stuff. nonstop, displayed at the highest performance level... finding something and the us takes gold! ♪ dream on ♪ ♪ dream on ♪

♪ dream on ♪ ♪ dream on ♪ - yes! ♪ ahhhhhhh ♪ ♪ dream until your dreams come true ♪ welcome back to "power lunch. we are seeing some bigger upside moves in drug and medical products distribution companies like mckesson, cardinal health

the companies along with johnson & johnson are all reportedly close to a massive deal to settle a slew of lawsuits involving their alleged roles in fueling america's opioid epidemic, again according to multiple reports they say it could be worth as much as $21 billion between the three distributors and $5 billion paid by johnson & johnson. now, if a settlement were to happen, some experts believe it could remove a very large cloud of uncertainty around investment in these types of companies. kelly, tyler, back over to you. >> thank you very much, dom chu. square another big mover today, up more than 3%, as it launches small business banking. let's bring in kate reen for more on square's move and what it says about the company's future plans and the world of fintech. hey, kate. >> hey, tyler, that's right. square is launching a suite of new banking products but this part is key. for the first time square is not using a bank partner this is all backed by square financial services that's the fdic-insured bank

that square launched back in march. it all fits into the bold case for square becoming that money center bank of the future. the company is launching two new deposit accounts, square savings and square checking as well as a new lending product called square loans these won't have fees, minimum deposits or transaction limits it won't have overdraft fees either this all works within the square ecosystem with things you normally think of like payroll and that payment processor square has had similar products in the past and used sutton bank for those. they're still using sutton for some products but the economics are better square can issue the loans and cut out the middle man here. for this product, christina reiker told me this is aimed at small businesses no plans yet to launch on the consumer side but she didn't rule that out.

she said there's a possibility that square financial will eventually back some of the consumer products. >> kate, whose turf does this invade the most? if you think about the small business space traditionally which is a huge part of gdp and market opportunity it's traditionally been regional banks. is that who you think is most vulnerable to square's ambitions here >> it's interesting. they're stepping on a couple of different areas. you have companies like intuit and paypal has gotten into this area and tech-focused names and companies like jpmorgan. small business in this case is the focus, so whoever would offer a small business checking or savings account to somebody looking to launch their own business but one of the things christina had mentioned is that a lot of people just don't have a business account they might use their personal checking or savings account which can result in a mess for taxes and things like payroll. so she was sort of saying this could be more of just green

space in general for folks who don't have a bank account for their small business. >> thank you, kate rooney. it's been almost six years since square debuted at $9 a share. the company has ballooned 1800%, now at a $110 billion market cap which is a third of its main competitor but paypal is up to $350 billion now that square is getting bank licenses and entering broader financial services, can they continue growing at breakneck paces. joining us is the managing director at mizuho you're likening investing in square today to investing in jpm way back when, right >> 100%. thanks for having me on the show, it's a pleasure. we think this is the opportunity just like getting into jpmorgan in 1871. and the reason for that is kind of touching on what kate just said now, you're getting square becoming more and more of a bank basically saying you've had jack

dorsey saying we don't need banks anymore and this is the quintessential example of how square is getting into banks both on the commercial side on the b-to-b side and later down the road on the cash app side. >> as i was listening to kate, i was thinking about my husband who started his own company back in january and getting a business checking account was a nightmare. this was with one of the big banks but even trying to use a regional bank it wasn't a whole lot easier would square now be a viable option for -- you know, we talked about the ranks of people who have started their own companies over the past year and a half amid the pandemic is this a huge opportunity for square and again, i'll ask you the same thing i asked kate who does this push out the most as square increases its size in the market >> i think you nailed it i think it pushes out like some of the bigger banks. it pushes out basically anyone that's offering business accounts, checking accounts, both for businesses as well as

consumers. if you think about it, a lot of small businesses are actually owned by people who are basically -- they own the business, they're a small business, and square having that dual ecosystem, both the sellers, the consumer -- the businesses and the consumers on the cash app, they can create like an alternate network and basically cut out the middle man like the networks, et cetera, and become their own ecosystem so i think it purkzshes out somf the incumbent banks and is appealing increasingly to consumers and getting around both consumers and businesses and creating like a third network. >> i see the appeal to consumers, but i also see some remaining hesitance among consumers to do all their banking on their phone or on their ipads. what do these players, these fintech players like square, have to do to convince businesses or individuals that using their service is safe and

effective. what do they have to do to get those late converts to believe that their money is safe and they won't wake up some morning and log in and see zeros. >> yeah, that's a great question, tyler. look, obviously you need to have a sense that it has to be insured, et cetera but i also think that just over time you will get more and more adoption the first you get the early adopters, like with any other technology you get the early adopters and they swear by it and at that to their friends. it goes word to mouth and then you get more and more people on the ecosystem. i think that's how the cash app started and now they have a huge b-to-b operation, it's second to venmo in the u.s i think you'll start seeing that with the all in one sort of bank/merchant acquirer/network on the overall square ecosystem. so i think it's just an adoption

curve and happens everywhere in technology i could see that happening with square as well over time. >> dan, it's kelly here. i want to switch gears since we have you ftx just completed a major fund-raising round we are going to speak with the ceo in a moment. do you have any comments about the fact they were able to do this as bitcoin is in a bear market what does that tell you about the appetite that's out there, either in the venture capital community or otherwise in the cryptoc cryptocurrency. >> we're a little more hesitant on coinbase because our problem is that 80% of revenue on coinbase is coming from trading. i think that the fees are trading commissions on crypto is going to come down over time if you are able to reinvent yourself, and i think the key to the enthusiasm around crypto for venture capital is that these companies are able to reinvent themselves and morph out of being just exchanges or just

clearinghouses to more, you know, like viable businesses with more opportunities, right, because crypto is a huge engagement driver. think about the cash app, think about paypal huge engagement driver but it's not a good, reliable source of revenue down the road because trading fees will come down. >> it's so interesting if you're saying square is like jpmorgan in 1871, maybe coinbase is like the new york stock exchange in 1995 or something. pick the analogy a convenient way to rewind the clock for a little while dan, thanks so much for your time. >> we will have that ftx ceo on who's just raised $900 million with a valuation now of $18 billion in two years think about that, folks. still to come on "power lunch" what the small cap index says about the stability of today's bounce, plus bitcoin's gains for the year are just about gone but that is not stopping the crypto exchange ftx from closing a big funding round.

just talked about it major investors are in is there an ipo in its furute? we'll ask the ceo when "power lunch" continues a choice that requires no explanation. it's where safe and daring seamlessly intersect. it's understated, yet over-delivers. it is truly the mercedes-benz of sports sedans. visit your local mercedes-benz dealer today for exceptional lease and financing offers. if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances designed to work better together.

spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right. and that's how sofi is helping millions ♪ ♪ ♪ 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. welcome back i'm rahel solomon and here is

your cnbc news update at this hour the delta variant now accounts for 83% of the nation's covid cases and has led to an increase in hospitalizations and deaths in areas where vaccination rates are low. >> over the last week we have averaged 239 deaths per day, an increase of nearly 48% over the prior week each death is tragic and even more heartbreaking when we know that the majority of these deaths could be prevented with a simple, safe, available vaccine. a 22-year-old man has avoided a possible death sentence by pleading guilty today to a 2019 shooting at a southern california synagogue. one person was killed, three others wounded the shooter will spend the rest of his life in prison without the possibility of parole. the national oceanic and atmospheric administration says smoke from western wildfires is now contributing to increased smog on the east coast, including new york city. and at the white house, the

tampa bay buccaneers are being honored for their super bowl win this year. quarterback tom brady telling president biden that the team's season got off to a slow start. >> we found our rhythm, we got on a roll. not a lot of people, you know, think that we could have won in fact i think about 40% of the people still don't think we won. >> i understand that. >> you understand that, mr. president? >> i understand that >> tyler, kelly, i'll send it back to you. >> it takes some courage to lay a joke like that on at the white house, doesn't it? >> it landed but he's tom brady he was looking pretty confident. >> yeah, he's got a lot going for him. >> let's get a check on this rally. the dow was up 660 at the highs today. we're just under a 600-point gain we've just hung in pretty nicely for the past couple of hours american express, boeing and goldman are leading the dow to the upside of course that was the case yesterday to the downside.

the biggest drags are verizon, procter & gamble and merck big cap tech is holding on to its gains apple completely erasing losses from yesterday the classic reopening trade, the airlines and cruises all higher. even the stay-at-home stocks are getting a bit of a lift. cue the stay-at-home stocks, peloton, teladoc, docusign we have a news alert out of washington ylan mui has the details >> well, tyler, president biden is nominating jonathan cantor to lead the antitrust division at the department of justice. now, cantor is a private attorney and antitrust expert. he previously worked at the ftc and the bureau of competition. he has also represented complainants in cases against

big tech such as google. they hope cantor will bring strong and meaningful antitrust enforcement to the doj as well he's getting some plaudit is from senator elizabeth warren who said he would strengthen competition in our markets. clearly jonathan cantor being seen as an adversary of big tech someone who will be just as aggressive as the new ftc chair and nominated by president biden for the position of course he'll have to know confirmed by the senate. ahead on "power lunch" jeff bezos' historic trip to the edge of space is just the beginning wait to hear what he has planned next and how companies might benefit. here's a look at shares of rival virgin galactic, which are lower after blue origin said it's ready to take space reservations

millions of vulnerable americans struggle to get reliable transportation to their medical appointments.

that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community. for the love of progress. citi.

oil is gaining back a little of the grounding it lost yesterday. let's get to pippa with more. >> oil finishing in the green but not advancing nearly enough to make up for yesterday's sell-off wti for august delivery up 1.4%

at $67.32. that contract does expire today, so we're seeing a lot more activity in the september delivery contract, which is also up about 1.4%. brent crude advancing 1.2% here to $69.42. now, earlier in the way wti traded as low as $65.01, which is notable because that $65 mark has acted as a key support level according to analysts. later today we'll get inventory data from api followed by official numbers out tomorrow. analysts are expecting crude stocks to decline, kelly, for a ninth straight week. back to you. >> pretty modest rebound after that slide pippa, thanks. markets are powering back more broadly today the s&p 500 has recovered all of the losses from yesterday plus a couple of bonus points so which one of these days is the outlier, the rally or the sell-off let's bring in mike santoli with more what are your thoughts >> i don't know which is the outlier, the drawing backof th

sling shot or letting it go and having the rock fly. there were big swaths of this market that were very much primed for a pretty violent bounce you look at the russell 2000 small caps, really hasn't gotten out of its own way since february you see it really just shuttled right back down to the bottom of the six-month range. this is what today's 3% bounce looks like on that chart it doesn't necessarily seem as if you're recouping the losses on the s&p, however, we actually are. now, it's a familiar pattern we do have to recognize that this would be the sixth straight decline of at least 3% this year from a record high none of them got to 5% so far on a closing basis. so basically there is a bit of an engrained h ed habit the reopening trade is where the most damage has been done so that's why you're seeing

transports, industrials and banks really have the biggest comebacks today because people may be feeling as if we've discounted the reopening scenario, the economic recovery story, enough in the short term. all of them had 10% or so pullbacks. and i don't think you can necessarily say, okay, it's now determined that pullback is over. every time we have had one of these drops that did hit the s&p's average, it goes back to revisit it before clearing away to new highs so one day, either yesterday or today, don't determine what happens next but you should be aware that it's not an unfamiliar cadence and treasury yields lifting off the lows seem to be the thick that gave the green light for this rally. >> as tempted as i am to ask you about the action into the close again, i'm kind of curious what do you make of oil? it was like the worst performing yesterday. it bounces back like 1% today. that's pretty uninspiring. >> it is i think there's a pretty good case to be made that there was a

lot of momentum following-on trading behind that move so, in other words, it wasn't purely supply/demand that got us up to the recent highs the chart looks a little bit challenged it came off the mid-70s and doesn't necessarily look like it's equipped to come back, so i don't necessarily think we want to take it as, okay, this somehow invalidates what's going on with risk assets elsewhere. but at this point the comeback in u.s. stocks is about, okay, the profitability story is intact, liquidity is massive, financial conditions remain loose. it's not necessarily like yesterday is concerned about a global growth slowdown are invalid. so if the pullback thing is legitimate to some degree, oil might have a tougher time. >> yeah, it's going to be interesting. dechgt mike, thanks so much. we appreciate it mike santoli. bitcoin falling below 30,000 heading toward a new low for the

year, but ftx just announced a large series b funding round of about $900 billion that puts its valuation at $18 billion, up from about $1 billion a year ago more than 60 investors participated, including such names as sequoia, thirdpoint, softbank let's bring in sam bankman-fried, founder and ceo of cryptocurrency exchange ftx in a first on cnbc interview welcome back, sam. it's nice to have you with us. >> thanks for having me. >> it's great to have you here how did you do this so quickly your company is two years old and you're doing something like $400 billion worth of volume per month, which is 25 times what you did a year ago how did you get the uptake at scale so fast? >> you know, it was really just a lot of small things put together, a lot of decisions

that we've made around how to build a product, trying to be as responsive as we can to customers, to regulators, to counterparties and, you know, honestly from our perspective, it sometimes feels like the world is going sort of in slow motion around us and that we're going at about an average speed by our standards >> so let's talk a little bit about the competitive landscape, if we might, and get you -- you don't have to mention competitors specifically, but i'm interested in learning what sets your platform, your product mix, apart from others if i had to characterize it, it would be that you aim toward a more sophisticated level of investor than some of the other platforms do fair point >> i think it's certainly true we have a fully rebuilt risk and margin system that lets users cross margin everything on the platform in a really simple

manner we've built out a ton of different products and a large fraction of this sort of new innovative releases in the space we've tried to push forward with what our customers want and deliver that to them and i think one thing i'll say is that we had been catering particularly to the power user, but i think it's easier once you have that to build out a product for the consumer than the other way around because you already have sort of as robust of systems as you get. >> sam, let's talk about for u.s. -- for americans who are trying to sort of trade in crypto, get yields from crypto, whatever it may be, can they use ftx? >> yes we do have a u.s. platform, ftx.us it has substantially fewer products than ftx.com has. it doesn't have any derivatives on it, for instance, but you can still trade crypto on it and still get yield on it. i think there's a lot of products that we're hopefully going to be able to add over the

next year or two to it that should make it a substantially more compelling offering. >> and my point here as well, there's a lot of people concerned about what's happened with binance they have run afoul of regulators in a lot of different jurisdictions. here in the u.s. unregulated futures trading runs afoul is that why you can't offer the full suite of products here? do you think the regulatory environment is one where american liquidity is attractiv enough that we should expect to see more players than just coinbase operating how will this shake out? >> yeah, totally there is a totally different regulatory environment in the states than most other jurisdictions. particularly around derivatives. there's very little clarity around the framework you do need a license to offer crypto derivatives in the u.s. but there's no clear crypto derivatives license.

it's barely leveraged at all, it's like 1.2x and you can only access it if you can interface with the cme through brokers it's not an easy way to trade. you know, i think that may change over time i think people are going to figure out ways to get licenses and/or the ftc will roll out some crypto specific framework at some point. i don't think that's coming tomorrow and i think that makes a big difference in the ecosystems. >> we're short on time, sam, and the next time you come back, and you will come back i hope, because i want to ask you about why you would choose to put your logo on major league umpires because they're people that everyone loves to hate but you see it i go what is that? wow, it's cool let me ask you about this, though you're domiciled where, in hong

kong is that correct? >> i'm there right now we have -- >> why is that and what is the risk why do you do that and what is the risk of being there? >> yeah. so we have the u.s. platform, which is headquartered in the u.s. and we have the global platform which is global we have people all over the place, users all over the place. i think it's something we're evaluating in realtime i think that there have been a number of cities that have been historically really economically progressive and open but this is also really an emerging industry -- >> can you count on that in hoppin hong kong, though, now >> i don't think you can count on it in many jurisdictions. if things change, we'll change. >> we'll have you back soon, talk about the naming rights at the miami heat arena and more. and straight ahead, jeff bezos, did you hear?

he went into space today but what happened after his rocket touched down? morgan brennan on the ground in van horn, texas. morgan, what's coming up >> reporter: oh, we have so much coming up, tyler after the world's richest man on earth went to space, and he isn't alone in his excitement for the suborbital space tourism market that's emerging afr e tethbreak, we'll talk ticket sales stay with us you got this! and if you don't, there are other options! umpire: ball! good eye! good eye! eyes are good for lots of things. like reading! be the best, caleb! statistically impossible, caleb. umpire: strike three, you're out! you'll get 'em next time! or you won't, probably won't. and it won't impact your future whatsoever! talk to us about college planning today. feel comfortable about tomorrow. massmutual. the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq

a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq

this is the gap, that opened up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪

welcome back, everybody. in morning jeff bezos became the second billionaire to fly into space just this month. his company, blue origin, sending him and three other passengers into space. after a few minutes it floated back down to earth under parachutes total trip time 10:10. morgan brennan has been in west texas and spoke to bezos. >> reporter: this was an historic launch here in west texas after jeff bezos realized his lifelong dream to become an astronaut, flying past the edge of space in blue origin's autonomous "new shepard" capsule with brother mark, wally funk, who is now the oldest person to

have traveled to space and paying passenger oliver daeman this was a suborbital flight with the crew floating around the cabin for a couple of minutes. now, i spoke with the bezos brothers post -flight and asked jeff what today's successful mission means for blue origin. >> this planet and you can see it, when you're up there you see how tiny this planet's atmosphere here. here it seems big. you look around but it's a small thing supporting all life. we need to take all polluting industry, all heavy industry, and move it off earth. this will take many decades, but that's what we can do if we have usable space vehicles. so this suborbital tourism mission lets us practice that. we need to do that over and over and over and get as good at running space vehicles as we are as a civilization at running

commercial airliners. >> reporter: so it's a long-term vision that includes orbital rockets, lunar landers, space habitats, all these types of initiatives that are under development at blue origin bezos telling me now that he's no longer ceo of amazon and he has a lot more time to dedicate to this vision with plans to at least for now split his time between blue origin and bezos earth funds. but in the meantime, today's mission also kicking off commercial service for "new shepard" with two more of these suborbital flights expected before the year is out and paying passengers already booked bezos disclosing at a press conference today that those suborbital space tourism sales are already approaching $100 million. guys. >> wow, that is a huge number. holy cow morgan, thanks so much. coming up on "power lunch" netflix shares are treading water but is a breakout more likely than a breakdown?

our traders are taking their positions. why are regional banks bouncing if el ayidsre under pressure we will break down this market stay with us - [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 to "power

lunch. i'm seema mody we are watching netflix ahead of earnings out the first company to report earnings in its recent quarter that stock is struggling this year a come down from the pandemic lockdown sugar high. investors watching any signs of subscriber growth. a lot of excitement around this report, del no. what will you be watching for? really it's been flat, most of the gains in the last six months i like the fact that, they've been able to temper expectations for investors. they're projected about 1 million after the upcoming quarter. the churn, the churn rate was

actually below levels of 2020 in q1, and that's a future possibly increasing price, which obviously increased the top line right around 575 >> really it's just resistance on previous peaks. this is a stock that needs a catalyst to get out of its trading range. >> usually these are resolved in the direction of the prevailing trend. we're also encouraged by the fact that netflix did manage to clear its 200-day average last month. so moment actual with an up tick within that range. which would then aloss for a

target at a minimum of about $700 follow us on twitter there's always great analysis there. thank you very much, seema next on "power lunch," bond yields under pressure, but regional bank stocks are rising. we'll go understand the microscope, next

well, financials leading the way back today the second-best performing sector in the s&p 500. what's interesting is it's happening on a day when the ten-year yield fell to its lowest level dom chu understands this stuff. >> i'm not sure i understand it all, but how this some traders are treating it. now, they have outperformed, as you can see here handily that's the white light up on top. 22% gains. if you look at the relationship,

the trading correlation, right, between interest rates and how some of these bank stocks go, regional bank stocks in particular, trade very closely the white line is the ten-year yield, and the orange line is the ticker kre you can see they closely align to each over as things rolled over. banking rolled over as well. it's something to watch, guys. >> i just wonder, dom, if one of the biggers developments is that con square announcement. they're a -- offering -- >> it could be that, but what's more interesting is about these regional banks, they're much more tied to interest rates like square would be, but take a look at that same relationship, the two year/ten year spread versus

jpmorgan chase look at the divergence they're not following the interest rates as closely, and another one up here for you. goldman sachs, same kind of thing, holds up better than it does to interest rates >> morgan stanley, too dom, thanks. thanks for watching, everybody. >> we'll see you tomorrow. "closing bell" right now thank you, kelly and tyler welcome to "closing bell." i'm sara eisen, stocks rallying today after the dow posted the worst day of the year, erasing almost all of yesterday's losses. >> let's look at what is driving the action today yields bouncing off recent lows, helping financials a mixed picture on housing, with starts increasing, but building permits hitting an eight-month low. staples are the laggards today philip m