and they bridge the gap between gamers and people who like to play video games which is what netflix is targeting. >> steve weiss >> i'm taking this $20 i took on the golf course yesterday and adding two shares of portion to my core holding. >> joe, give me a name quick >> mosaic. >> does it for us. "the exchange" is now. >> thank you very much, scott. hi, everybody. here is what's ahead stocks continue to rebound bond yields are climbing even crypto is popping today why is my guest taking some risk off the table? we will have him in just a moment plus, jpmorgan doling out for dimon. and could netflix use some flesh blood? we'll ask about all of it. and crypto accounts are proliferating. more than 6% on your digital currency holdings and let's you

borrow with crypto, as well. we'll talk about the opportunities and the risks as regulators start to crack down dom chu is here with those numbers. >> it's day two of this recovery trade since the sell-off we saw on monday. now the dow, the s&p 500 and nasdaq have all recovers all of their losses from that monday sell-off and more. the dow is up .75% it is caught up to where it was before the selloff happened. up about .5% for the as much and nasdaq, as well. predominantly green. we'll see if it stays that way in the closing bell today. one of the part of the market a lot of people have been watching, have been for a while, one of the most popular if not the most popular search on our website is the ten-year u.s. treasury yield at the lows, we hit about 1.13%.

we are now up to 1.29% yes, the trend has been lower, as you can see there, but a move in higher yields people selling off some of the safety of u.s. government debt in favor of risk assets like stocks and maybe even crypto as you point out, kelly and then the stocks of the day, if you're looking for the real buy the dip mentality, it happened in semi conductor stocks the overall index is up about 5% in two days. look at trade today. lam research, up 4%. applied materials up 3.4%. and nvidia, up, as well. just this week, semi conductors still one of those parts of the market that seem to be on sale for people and at least they want to buy those names when they go on discount. despite erasing those losses from monday's sell-off, next next guest says stocks are heading for an unavoidable drop off especially if the fed starts tapering for more, let's bring in barry

knapp. barry, it's great to have you back you generally are bullish. but it's changed over the past few months what do you say? >> yeah. that's correct we were bullish in the -- from the low. and i assume that any corrections this year, based on sentiment would be limited to 4% to 6% or so. until then we reached a point where the fed started normalizing monetary policy. now this pattern has existed generally there was one corruption in the business cycle when the fed achieved enough confidence or had enough confidence in the economy to start normalizing policy but back in the days of rate policy, that was generally limited to about an 8% correction after the global financial crisis in the emerging market, those got larger, more like 12% to 13% and it really is the role of

risk and mortgage purchases in particular that really causes those corrections to be greater than they would have been otherwise. specifically what i'm getting at here is when the fed buys mortgage-backed securities and doesn't hedge prepayment risk, that suppresses volatility in the fixed income market and that permeates out through the system when they stop buying mortgages, the mortgage market suddenly has to take down can that prepayment risk right now with rates having rallied so sharply, typically you would have had interest rate volatility rising, not falling so when this risk transfer happens, that permeates out through the system from broker dealers through hedge funds and causes a big risk off shock. even if we don't get the announcement next week that they're ready to taper asset purchases, it was a very good

survey by morning consult that i saw late last week that some 70% of recipients of unemployment insurance have their benefits expiring by the end of august. to me, given the decline we're seeing in emergency employment beneficiaries, unemployment beneficiaries, we're likely to have two very strong payroll reports by the time we get to september. that would that will qualify for making substantial progress towards their goals. we've already achieved it on the inflation front and they'll start tapering asset purchases that will mark the transition to mid cycle. so it's an important inflexion point. but it will be a risk on shock and it's unavoidable >> so let's talk about how you think people should be positioned for them. you're telling them to cut risk to emerging market equities, where does that leave them adding, cash

>> they shouldn't be adding anything right now, in my opinion. you should be protecting your capital. other than having bought at the lows, these are the best windows of opportunity to add money to the market through the business cycle. if you recall, the sell-off after qe1, the flash crash, qe2 when we had the debt ceiling debate and downgrade was an excellent entry. these are your opportunities if you're cautioning any position, these are two-month transitory events. the market gmoves faster than it goes down. this is not going to negatively impact growth or the earnings outlook. it's a risk off volatility shock. >> one quinn i want to ask you, people are asking it about the pandemic and they're saying even if they have delta, an economic adverse reaction, we know from history that we have a strong rebound to follow. you're talking about an adverse

market reaction followed by a strong rebound why wouldn't the market pull forward the rebound and not have the sell-off in both cases >> because of this transfer of risk one of the most insidious risks that qe does is it suppresses interest rate risk and there's all sorts of effects that come out of that. there's the suppression of creative destruction, companies getting financing that shouldn't do otherwise and investors taking more risk than they would have otherwise so as that risk gets transferred from the, you know, government who is not hedging it to the private sector that needs to hedge it, that causes a volatility shock that's the part that i'm saying is unavoidable this is not about expectations this is about all of a sudden barclay's mortgage desk has a bunch of risk that they didn't tell before. they tell the credit desk about the risk and that's how these risk off shocks occur. >> you have that inside perspective and about what is playing out in realtime.

barry, appreciate your guidance today. thanks >> thank you speaking of the bond market right now, the 20-year bonds just went up for auction how did it go off, risk? >> you know what it did not go off well i gave it a charlie minus, a c minus. it could have been a d plus and i'll tell you why. it's 24 billion reopened 20 year we're adding a new issue from a couple of months ago so technically it's 19 year, 10 months the yeield at the auction, 1.89. made right before 1:00 p.m. eastern was 1.875% so at 1.89, it priced higher hider yield, lower price all the actual metrics had the bit to cover, directs at 18.9, these are all better than 10 auction averages dealers take a whisker under

21%. 2% under 10 auction average. so if you look tae chart of net yields, rates have been rising all day. it's probably a better auction than it looks. but at the end of the day, pricing counts today there's been a major shift obviously maybe treasuries can still be a head for problematic stock pricing. kelly. >> rick, thank you thank you very much. ahead on the exchange are crypto savings accounts too good to be true one firm is promising more than 6% yields on your crypto we'll speak to the ceo of celsius, next. plus, the executive exchange we're taking a look at ceos that are front and center of their industries some are revolutionizing their businesses, others are fight to

go keep competitors at bay we're back in a moment with much, much more. (♪ ♪) whether it's a technology first, (♪ ♪) a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all

(♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture

>> welcome back to the sdexchane everybody. bitcoin moving higher by 7%. either popping about 10% here.

two bits of news might be shifting the narrative for crypto investors mackenzy is here with more >> hey, kelly. so big news in the crypto world today here in the u.s. another bitcoin mining company is going public. core scientific is planning to list on the nasdaq through a merger with a spac that values the company at about 4.3 billion. now, so far this year, core has minted more than 3,000 bitcoin, half of which were for its own account which puts it ahead of its north american rivals. what is key about this company is that it runs a 100% net carbon neutral business. 56% of its electricity comes from sustainable sources, including solar, wind, hydro and nuclear. and it buys carbon credits to offset the rest. bitcoin's carbon footprints has been a huge topic of conversation when it comes to mining

with china expelling all of its crypto miners, many have started to expel that in the u.s the mining companies that prioritize being powered by renewables is helping to change the narrative around bitcoin's environmental impact >> mackenzy, we appreciate it. a lot going on in crypto today it's quickly become a space where holders can find decent yield at a time when savings accounts play almost nothing block chain celsius is offering 6% on bitcoin and 3.5% after that but what happens when prices drop or regulators come calling? alex is joinings now how does this work >> sure. the customers can basically download a wallet from the apple or the android store and deposit up to 42 different assets, including bitcoin, ee

theorem, stable coins like usbc. you don't have to do anything. you get paid yield every monday. and, you know, it's just -- we do all the hard work we basically create yield for constitutional investors, exchanges, defi as well as lending to our retail customers, lending margin for retail customers. >> how do you create yield and how is it that by doing nothing i can earn a stable coin and earn 8%? >> celsius created this category back in 2018 now there's probably close to 50 companies offering that including coin base and others yield is all around us and they're willing to pay a higher rate. celsius just gives most of that back to our users, to the people who have lent us those assets in

the first place. >> yesterday, in new jersey, cracked down on block 5. i don't know if you would consider yourself exactly the same but here is what they said i wonder if it would apply to using a platform like celcius. stheer saying they can no longer use unregistered currencies. regulators warned other platforms to say they, quote, present a heightened risk of platform wouldn't this apply to celsius at some point? >> well, we are not in the business of selling bitcoin. our job is to earn yield on assets you already have. so we work closely with regulators all over the world. we've been around longer than all these companies you're talking about. and i think we're fully

compliant. we do everything we need to do to stay compliance we operate in over 170 countries worldwide. we manage over 15 billion in assets so we're not just fly by night company that started yesterday and you mentioned before this segment, you mentioned volatility is one of the large investors in core scientific we're one of the large miners in north america. so we also create yield by effectively mining bitcoin and by creating bitcoin or minting bitcoin right out of the block chain. so our diverse sources of yield are very different than what blockfi or other people do they're relying on securities to create some of their yield which is very different than what cell seus does. >> as somebody who watched the financial crisis play out firsthand, when we learned about a lot of money market mutual funds, for instance, who were able to get higher yields based on leverage and some shadow

banking activities, what would you say to people who are concerned, you know, fed researchers and others who are looking at stable coins, concerned about the build up of leverage in the crypto system and looking at platforms like yours and wondering if that is where those attractive yields come from? is there too much leverage in the system do platforms like yours contribute to it >> so on may 21st, 2021, and march of 2020, the crypto community or the crypto platforms all went through a stress test. bitcoin was down 53% in 24 hours. and no one went back up. none of celsius counter parties or the people we borrow from had any liquidations or any major counter parties going out of business so we passed our own stress test we didn't need a bailout from the united states of america or the citizens here.

and i can guarantee you that there's no bank in the united states or bank in the world that can take a 53% drawdown and still keep walking so the leverage that you're talking about xactually exists n the leverage market. in the crypto community, celsius is no leverage, but we're not allowed to do fractional reserves or anything like that so i think regulators are doing a great job looking into it to make sure that we all following great standards. but you're not going to find leverage or a lot of leverage with companies like celsius or a counter party. >> that's a very interesting look at what you guys do and what is going on in the space right now, alex. thanks again for your time alex is the ceo of celsius coming up, ridiculously high prices might have home buyers and builders taking a step back from this red hot market we'll take a look at which stocks could be impacted plus, the casino gold rush in

florida. why draftkings and fan duel have have been lobbying to get into this market. ♪ ♪ ♪ ♪ ♪ as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo.

t-mobile for business uses unconventional thinking to help you realize new possibilities on america's largest, fastest, and most reliable 5g network. plus customer experience that finds solutions in the moment. and first-class benefits, like 5g with every plan. network, support and value-- without any tradeoffs. that's t-mobile for business. that building you're trying to buy, you should ten-x it. ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.

hi, everybody. as this two-day rebound conditions after monday's big declines, 70% for the dow, let's

take a look at the individual stocks on the move today including harley davidson. down at this point about 6%. they missed revenue projections. they're down about 12% on the month and higher this year check out shares of sunnova and sunrun about 3% to 5% gains for more on that call and others, go to cnbc.com/pro let's go to rahel solomon for our cnbc news update >> u.s. and germany reaching an agreement to allow the completion of a controversial russian gas pipeline to europe the deal will allow the project to go forward without new saengsz from the u.s house speaker nancy pelosi blocking two trump allies from joining the committee investigating the capitol hill insurrection house leaders had chosen jim banks and jordan to sit on the

panel. gop leader kevin mccarthy is threatening to pull all republicans from the panel so the party can do its own investigation. in china's hunan province, more than 17,000 firefighters have been mobilized to help with search and rescue efforts. on the news tonight, we report on the rescue efforts. and sports reporter maria taylor is leaving espn. this just weeks after an espn colleague reported taylor received a role because of her race nbc and cnbc are both part of comcast nbc universal. kelly, back to you >> rahel, thank you. still ahead, a tax deduction that millions of businesses use could soon be repealed but first, jamie dimon gets another vote of confidence brian niccol isn't world about

pricing power and what executives are doing to try to move netflix forward ♪ someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory.

welcome back, everybody. it's been a paradigm shifting

year with the pandemic and companies are relying on executives more than ever to deal with fickle consumer habits and uncertainty. as we head into the busiest weeks in earnings season, let's take a look at the strategies that companies are using to keep up up with and get ahead of the times. jamie dimon is receiving a vote of confidence. he he's led jpmorgan to being the largest u.s. bank. meanwhile, chipotle shares are leading to another all-time high today. worries about profit margins not a problem. ceo brian niccol saying the company has such good pricing power, they can keep raising prices to offset costs without worrying about loyalty netflix is potentially at a

cr crossroads they're now adding gaming to the platform in an attempt to diversify their offerings to an ever more segmented and younger audience so three companies and three different industries who rely on strong leadership and vision let's break it all down now with rbc's gerard cassidy on the banks, kate rogers and alex sherman. so, everybody, let's begin with jamie dimon and jpmorgan's plan to keep him ceo for as long as possible what does this tell you? >> well, i think it's an award that really looks at what he has done for the jpmorgan shareholder, their employees and the communities in which they serve. as you may know, there's over 250,000 employees at jpmorgan that jamie dimon leads you look at his stock price since the merger at bank one and jpmorgan it compounds growth rates far

better than the financial indexes and even better than the s&p 500. and today, when you look at his valuation, he trades at a nice premium, about 30% to his peers. ceos cannot control their stock prices they do control the evaluation that's a direct reflection on the success he has >> is there a concern he has for walking away there's been evidently some talk that he could do even better by going into a different kind of industry so is this meant to be some sort of move to close that compensation gap he's been at this company for so long now, it's hard to imagine that he would, at this moment in time, choose to just walk away >> it's an interesting point because, you know, he bleeds jpmorgan's blood i would be shocked if he would leave to go into some other, you know, kind of industry or even, you know, into some sort of political appointment. he's very passionate

he's got an incredible amount of energy and passion for what he does and he's in a position that is very, i think, important not just to the u.s. banking industry, but the global banking industry and it will be tough -- i think it will be tough to find a position of equal importance, you know, to him so i'd be really surprised i think, again, it's a reward for the success that this -- that he has achieved being ceo of jp morgan chase >> one final quick question, gerard do you think his famously dismissive comments about crypto will come back to haunt the bank at a time when we're talking about how a lot of younger talent and liquidity and so much more is going to the crypto space? >> you know, at times, he does shoot from the hip, which we all love that's one of the endearing characteristics of this man. and i don't think it's going the be wrong on crypto and i think he was really refer to go bitcoin at the time. digital currencies, that's

different. and i don't think he was refer to go that but to think of bitcoin and those currencies as being a modem of exchange replacing the monetary system we have for today is very unlikely digital currencies, on the other hand, will probably be part of our future >> yes and i would imagine jpmorgan will be at the forefront of that and like they have in the rest of the innovation and space. gerard, thank you. let's turn our attention now to chipotle where shares are hitting an all-time high of 12% today. kate rogers is here with more on what's behind this move. >> it's all about this earnings report, epsb by nearly a dollar. revenues come in line for the second quarter sales increasing by more than 30%. restaurant margin came in at 24.5%, nearly double what it was this quarter last year also the company said the highest level since q3 of 2015

thanks in part to menu price increases, lower beef costs and fewer promotions during the quarter. those price increases are not scaring away the customers they've held on to about 80% of digital customer gains as of the end of q2 and he mentioned that july is really off to a strong start, as well >> chipotle is no -- listen, people like the food, but it's easy to get chipotle fatigue and he's done a great job at keeping them in the forefront of this industry are there other rival chains that you think have suffered from not having the clarity of vision or the ability to invest so much in their digital capacities where they're just not able to certainly pass along the pricing pressures that they're feeling? >> i think it's a bit different than a traditional fast food player because this is more of a qsr and it's a higher end type of fast food i think chipotle has done a great job of executing on

digital. that was one of the things that brian niccol told us. now they have digital. they have this loyalty program, 23 million members and those cpipolte lanes they've done well with menu innovation which is a tough thing to get right they have a stage gate process where they test out items and see how they fare with customers before formally adding them to the menu they've done digital only products that they've added via their digital system, like the kay sa dee ya, people who are ordering feel included in the process because you have together it only via their app i think it's tough to compare because that company is in a league of its own right now with what they've done over the last few years. >> exactly and i think it's easy enough to say people that aren't doing all of that are the ones who are going to struggle in this

transition finally, shares of netflix are lower today after yesterday's results. they confirmed their entrance into gaming. still, growth is slowing big time the company is contending with tough compes from last year and ever growing competition let's bring in alex sherman to discuss. alex, this gaming foret has a lot of people wondering if they're losing some of the vision that got them this far. >> maybe this is a sign netflix feels like overall data is slowing. netflix actually lost subscribers in the u.s. -- canada region. and if you look at the stock today, you'll see that it's down most likely because the third quarter estimate from netflix came in at about 3.5 million

subscribers as a projection from last year. that was a big miss. so there's some worrying signs here, but on the flip side, the bull thesis is that, look, streaming is just 27% of u.s. tv watching netflix loves to point this out. linear, traditional cable and broadcast tv still make up 60% of all viewing so as we transition as a society from cable to streaming, that's a lot of runway for netflix. and rand on said in his earnings call, at the ven very end of it, he noted the rest of the media world is dealing with big mass mergers, whether it's disney/fox, warner media discovery that's happening, netflix is focused on buying the best content and completely focused on streaming so the competition is clearly playing catch up here as they figure out what to do with these thousands of employees, potentially duplicative costs, that could be a feather in their caps that they just don't have

to deal with major distractions. >> sure. although i wonder, again, the initial vision for netflix was so brilliant to turn a dvd library into the advent of streaming before everybody else got in on this space it's not their fault that everyone else has caught up. you don't want to diminish these executives and what they've accomplished by asking the question, but still, what is the vision for netflix from here on out? do they just have to away profitable version of themselves now? and it almost reminds me of google when they brought in eric smith to run things. they were past the most exciting era and the biggest market share gains were still to be made. >> the nature of a company, any company as it succeeds over time, it's like, look, yeah, at some point, our revenue growth is going to diminish.

certainly the company is going to adjust. they continue to churn out strong growth numbers. so the video game thing is maybe a hint that they're going to kind of go in another direction, but reed hastings said it yesterday, we are a one product company. so any other company or revenue, it's going to go to supporting the core product of video. i don't expect that to change anytime soon >> and you guys did a great job in your story, why gaming makes sense to them and it is exciting and attractive so i encourage people to take a read of that alex, thanks for your time today. >> sure. coming up, it's new york making a further push into gaming as it opens up sports

betting. woor going to speak with fanduel's ceo. ♪ ♪ when technology is easier to use... ♪ barriers don't stand a chance. ♪ that's why we'll stop at nothing to deliver our technology as-a-service. ♪

there's an america we build and one we explore. one that's been paved and one that's forever wild. but freedom means you don't have to choose just one adventure. you get both. introducing the wildly civilized all-new 3-row jeep grand cherokee l introducing the wildly civilized hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee...

yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. welcome back major players like draftkings, fan duel and las vegas sands are paying big bucks to expand gambling in florida. contessa brewer is here with a very special guest >> florida has 15 casinos that make a 7.5 billion economic impact on florida, according to the american gaming association. well, now gaming companies are throwing millions at political efforts in florida to expand that state's opportunity for betting. currently a deal made by florida's governor allows the seminole tribe a near monopoly in the state, but allowing more licensees would benefit operators like penn national it offers off track wagering

north of orlando las vegas sands has invested $17 million in a political committee to get initiatives on the state ballot asking voters to approve new casinos in their state draftkings and fan duel spent $10 million apiece which counted $62 million from these companies ahead of a july 1st deadline that would have lowered the amount of money permitted for companies to spend on citizen ballot initiatives joining us now, amy howell who has just been named interim ceo of fanduel congratulations. >> thank you so much it's great to be here. >> you're coming into the sports betting industry which is

dominated by men for men what opportunities do you see both to expand leadership of women in this space and to appeal and cater to women as customers? >> yeah. listen, as you can imagine as a senior executive female, it's a topic i care deeply about. i've had the privilege of leading companies and single handedly centers around outcome of gender diversity. let me start on the executive side sitting here as the leader of fan duel, i'm incredibly proud to say four of our top ten executives are incredibly talented women those are stats that rival any tech company, let alone some of the companies in our space and you've seen the evidence, right? there is mounds of data around how if you look at the most recent reports coming out of kenzy, more are higher performer, if you can crack that code on gender and diversity

as we're sitting here as a tech company trying to win that war for talent, the future employees are voting with their feet, as well 40% of employees will turn a company down if they don't feel like there's an inclusive environment. so as a leader, i feel this is not just important for us in our mission to be the number one mobile gaming operator, but our success as an industry to your question on the consumer side, it's a grit one. a lot of that starts with our supported athletes even before sports betting was legalized, we were supporting a wnba we've done some great things with women's soccer. this year, we were the first company to offer betts for women's basketball and march madness. and this is a fun one, contessa. we just had our most recent consumer bank coming out of covid. it was called fantasy. she was the grand prize winner

of the $150,000. so i think there's just a huge untapped potential for us here >> yeah. this is a great day for any of us who have rooted on the milwaukee bucks in years past. it is a great day. i was talking about the efforts to expand in florida i mentioned you and some of your competitors here it is not the only gambling super state that has yet to embrace gambling new york, texas, canada, which of these geographic areas for you is a primary importance? >> yeah. listen, they're all important because they represent a meaningful percentage of the u.s. population that has yet to come online, which is just great growth potential for us. just in the next two months, we have arizona and connecticut coming online. arizona we're partnering up with the phoenix suns where we're going to have a state of the art

sports book right in the a reason na and connecticut. those will be online before nfl, which is a huge season for us particularly as we step into a new partnership with the nfl but you're right, the momentum continues, a great momentum that we saw during covid. so we've been working closely with the new york gaming commission canada, first province to open up there is going to be ontario. so more and more headwinds and our objective is to make sure we can be number one as these new states come online >> if i can quickly ask, where do most people in florida gamble right now? and as more states do things like mobile gaming or what have you, at some point are we taking money from one hand to the other or can the pie keep growing? >> well, in the states that aren't legalized, that money is going to the black market. so in this case, florida, the sunshine state is not getting the economic advantage of that

and in terms of online, it's not legal and it's not safe. so we've been working with the constituent toes make sure we can do that there. >> and there are some gamblers who won't gamble if it's not legal. speaking of being against the law, we're watching so much cyber security issues. because of the efforts on digital and mobile, how much of a priority is s&p 500 cyber security for you how concerned with you about all of these paths we've seen in other industries >> it's a great question, contessa let me start with the consumer on this one. we know from our research, they

want to make sure that that information is protected they also want to make sure when they're on our site, they're being protected from bad actors. i can safely say that, you know, from our parent company, this is a huge priority for us and we put our money where our mouth is every day we're investing in state of the art tools and technology to make sure we can keep that information safe and protect them from bad actors and candidly, if we don't do that, we're not going to have the privilege to serve the millions of consumers on our platform today so it has to be front and center as we go >> all right thank you both for joining us today. amy howell with our own contessa brewer still ahead, take a look at today's mystery chart. it's a housing name down 50% from its 52-week high in this red hot housing market llh seext e n and geth buisca nt. income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable

has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. the rule in business used to be, "location, location, location." now it's, "network, network, network." so you need a network that's built right.

verizon business unlimited starts with america's most reliable network. then we add the speed of verizon 5g. we provide security that's made for business. and offer plans as low as 30 dollars per line. come to verizon small business days on fridays in july to get a plan that's built right for your business.

welcome back, everybody. despite the red-hot housing market, zillow, the shares are slumping down 46% from their all-time high back in february. real estate stocks are a pretty mixed back zillow, re/max and red fin are

lower. bullish i ish initiations. a real estate tech analyst justin, it's good to have you. i just love your area, real estate tech. we were talking about chipotle and all the tech and it feels like food tech is a thing. that's a side comment on the issue of zillow, why are the sharing languishing so much? >> i think the market is misunderstanding this is now a real estate business zillow 2.0 and over 50% of their revenue is from homes, so they're actually buying houses from consumers themselves and this stands in contrast to the advertising business which is very related to inflation

concerns, interest rate concerns so as the market better understands, we think shares will come back >> well, but it's not just them, is it? all of the real estate names, and we've been noting this strange dichotomy for a while, are not doing as well as you would think in this housing market investors thinking the demand is going to roll over that high prices will choke things off is it compression of fees and a business model thing what do you think it's all about? >> i think if you look at the broader picture, the best performing, the housing market did heat up and concerns over interest rates and higher valuations, the stocks took a hit. low interest rates likely to stay around inventory levels housing prices should stay consistent which means commission should be relatively steady if not growing. so we don't see any reason for

this to -- as you said, the stocks to really languish. >> question on direct buying you think this is a huge growth market you don't think redfin has the scale necessarily to compete you only see 10% upside. zillow you see 43% upside. if they do win at direct buying, that has to mean market share is coming from traditional real estate agents, right >> not necessarily a lot of times especially recently they will pair you with a commission-based agent taking that to the side, the traditional brokers who pair you with an agent, they're not directly competing with someone who is going to you and will buy your house directly from you all the time so, yes, it could hamper commission shares a little bit but as we see customers not being totally onboard 100%, they want to have an agent, someone

to hold their hand we don't see that this massive headwind to the overall real estate market. >> doesn't that so often happen the innovators on the scene become friends with the very industry they're trying to disrupt. the industry itself is a better customer we'll have you back. we appreciate your vision into this space >> i appreciate it take care. a 2017 tax break for millions of businesses could disappear if senate democrats get their way. we have those details next (naj) at fisher investments, our clients know we have their backs. (other money manager) how do your clients know that? (naj) because as a fiduciary, it's our responsibility to always put clients first.

(other money manager) so you do it because you have to? (naj) no, we do it because it's the right thing to do. we help clients enjoy a comfortable retirement. (other money manager) sounds like a big responsibility. (naj) one that we don't take lightly. it's why our fees are structured so we do better when our clients do better. fisher investments is clearly different. this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers spending potential that's built for his changing business needs. he used his card to furnish a new exam room and everyone was happy. get the card built for business. by american express. ♪ ♪ ♪ 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. at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward, trust cdw amplified services if you're 55 and up, t-mobile has plans built just for you. switch now and get 2 unlimited lines and 2 free smartphones. and now get netflix on us.

it's all included with 2 lines for only $70 bucks! only at t-mobile. welcome back democratic senator from oregon taking on the 2017 tax cut on pass through companies propose to go repeal its 20% deduction robert frank is here with the details and what it could mean for millions of businesses robert >> kelly, there are over 30 million pass throughs in america. they far outnumber the number of c-corps they became even more attractedive after the 2017 tax cuts that allowed qualified pass-through owners to deduct 20% of their business income

from their federal taxes within 14 million pass-throughs used that in 2018. now as you mentioned senator ron widen wants to remove it he says 61% of the benefits went to the top 1% and he has proposed eliminating the qualified business deduction for anyone who makes more than $500,000 or more a year with the phase-in at $400,000 amounting to a $100 billion a year increase through the ten years he says it would allow more kinds of companies to get a deduction. right now doctors, lawyers and accountants cannot be eligible large pass-throughs in oil, gas, they would be the hardest hit. >> do small businesses think they're being helped by this >> it depends on how much you make if you're over $500,000 a year, no, you're not being helped.

as he says, there are small accountants, dentists that right now with not take advantage of it, and it's a very complicated system at the very least, it would simplify. >> although $500,000 for a business itself is not that high it's okay. we'll continue the discussion. that does it for "the exchange "thanks for tuning in. "power lunch" starts right now and welcome, everybody, to "power lunch." along with kelly evans, i'm tyler mathison an economic riddle growth is strong, demand is roaring, but the economy has been uneven. so how can investors navigate an economy that's both too hot and too cold >> and charging up tesla is opening up its supercharger network to other types of evs why are they helping their competitors? we'll go inside the controversial decision and the c-suite job of the