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 future

some call it the chief purpose officer. we'll explain what that is, what it means for investors "power lunch" starts right now let's kick things off with the markets today, everybody here is the dow up 255 points. we're pretty much near session highs. 0.3% gained. similar increases for the s&p 500 and the nasdaq and the yield on the ten-year manufacturing higher a. reverse of its recent trend. verizon, j&j and coke -- >> all out we keep an eye on those names. we see verizon and coca-cola adding 1%. >> the volatility this week seems to be mirroring what we're seeing in the economy. you look to one side and you'll see higher wages, more spending, a bullish consumer, hot housing markets. the other way low labor force participation and a bond market that seems to be anticipate that go risk is set to return so is the economy too hot or too

cold in a new column in "the new york times" today neal irwin says the economy is a riddle right now many are having a hard time solving. the senior economics correspondent at "the times" joins us now neal, if the economy is so good and earnings are so great, why do i feel so nauseated >> who said things can't be hot and cold at the same time? this very strange environment, these pressures are real so we see wage gains and consumer price inflation eating away at the wage gains we're seeing bond markets and sentiment on what happens in the future and it's going to be a rocky transition from this boom resurgence to try to get back to a full employment type of economy. >> a rocky transition. so in the end which side of this argument prevails? is it those who say the economy

is hot and moving up or those who say we're looking to get a repeat of the 2010s where growth is slow? this isn't the roaring '20s? >> i'm optimistic we can get back to that of 2019 there are warning signs out there. one we have not seen labor force rebound in the last year it's been bumping around in a small range. that has to do with people making voluntary decisions maybe some families going to one earner instead of two. for individual families, that's the kind of thing in the aggregate means less potential growth, gdp and employment than we're used to. >> and that is why labor force participation is so critical because it really is -- from that derivesthe productivity i the workforce. i think you hit on some of the reasons people aren't participating in the workforce others may be they can't get a job at a wage they like.

others that they left their jobs and are, as you say, ambivalent about going back a third there are still, many of them, collecting unemployment benefits >> it's true i do think the flip side of the same thing you talk about employers who can't hire people even when they're offering higher wages and low labor force participation, those are two ways of saying the same thing. until we see where things find equilibrium, the wage level, the participation rates, what are the kinds of output levels we'll settle at. it's more confusing and uncertain. >> neil, i wonder if it will be key earnings what you're saying is don't be fooled by nominal gains. we also have to factor in whether it's outpacing wage gains or not. >> i'm bullish on the american worker the balance of power has shifted away from capital and that is good for people's earnings power

and the labor force. that said, the math is simple so far. and inflation has been running hotter than wage gains until that changes this is not a panacea or financial boone for working americans. for now that's the reality >> it's very interesting because as you point out in the 2010s and the 20-00s pages just weren't going up at all. inflation was lower. incomes are going up you have $5 a gallon gas in california, food inflation that people have not really factored in and you've still got the supply chain bottlenecks that are causing hiccups and price inc increases. >> you come back to this is it transitory debate. lumber prices coming down. that's are all good signs.

if you look at any reports from businesses, look at earnings calls, there are still a lot of problems out there and rents are rising equivalent rent is a huge component of inflation measures and cars you can wait an extra year >> a year ago rents were coming down because businesses were leaving or if you're talking about apartment buildings, people were moving back to their homes maybe in the suburbs or more rural areas are rents rising because they had fallen so much or because they're rising >> well, there's the basics and rebounding from last summer's troughs. i think there's good evidence that these numbers are getting above pre-pandemic trends. how far do they go

we'll see. all these things we'll find equilibrium. if you have various measures of rent, a third of cpi, so this inflation story isn't going to go away because used car prices stabilize. >> i really appreciate you being with us today. >> so if the economy is paining a muddled picture of growth in the future, what should investors do are there names that can outperform is it doug butler is a portfolio manager. you're focusing on the payments space if particular. that would imply growth and inflation to boot. >> inflation is an interesting thing. we think we'll have cyclical inflation next year. 2023 is anybody's bet. again, we think in this uncertain environment american express really should do very

well even if there are head winds coming down the pike >> what do you mean we have transitory inflation now but will have cyclical inflation next year? >> i think right now is all about the restarting i think cyclicals next year will be much more from -- we think there's going to be wage pressure coming the back half of this year into next year that may not hurt margins as much as we think our fears in terms of the overall economy is that you get inflation everywhere i think your last person was talking about in rent. we've seen lumber prices but they've snapped back the first half of this year so, again, you can see inflation in all the commodities. but we still think there is an expectation for economic growth. the fall to 1.20, back to 1.30

signaling a low growth environment. >> okay, it's interesting that you like american express, mastercard and visa and chub which one does not belong? and whether you would like the fintech companies or if they're overvalued >> i think the finteches are priced for perfection and those are still not profitable and the penetration rates of american express are enormous and the ability for my babysitter definitely uses venmo. they also have an american express card to go to the mall

i think the fintech space has a chance visa and mastercard are entrenched models to safely process many thousands of transactions that's why bitcoin won't be a currency you use to buy pizza. we think that the payment space is going to do well as we transition people across the world don't always use cash. >> we won't get into the whole thing about the lightning network. another time why does chub jump out to you so much right now >> i think chub is heading into sort of a secular environment change, industry pricing tends to go in huge, long waves. we've seen uptick and strengthening in pricing

largely because of catastrophic events, hurricanes barring a major earthquake out west or multiple cat 5 hurricanes we think chubb is phenomenal >> we appreciate it. we have breaking news on an opioid case. meg tirrell is here with the news meg? >> kelly, multiple states attorneys general announcing a settlement with the three drug distributors and johnson & johnson for up to $26 billion to settle all of these lawsuits over opioid distribution and marketing. they say the three distributors will collectively pay up to $21 billion over 18 years.

j&j up to $3.7 billion paid during the first three years this resolves a ton of opioid claims for multiple states and local governments. it sounds as if this is a few states led by north carolina and tennessee. colorado, connecticut, delaware, florida, georgia, louisiana, massachusetts, new york, ohio, pennsylvania and texas also signed on to this. other parties in local governments and other states have 30 days to sign on. local governments up to 150 days to be able to sort of finalize this this had been telegraphed already and for the distributors this would remove a huge overhang for them. this press conference announcing thissed 26 billion to settle the lawsuits >> i think you talked about this yesterday, meg

at the heart of this case is, as i understand it, this. the states feel that their medicaid and health care costs were inflated by these companies because these companies irresponsibly marketed and distributed an opioid. am i understanding that correctly? >> i have to dig into the details of the case, tyler you were probably talking to somebody else about it yesterday. we did cover the case in oklahoma very closely and some of the arguments are, of course, states incur a lot of costs for health care as a result of the opioid crisis. as part of this settlement there are also required changes in the way companies do business. obviously while there are monetary issues states are arguing over, they are trying to change the way opioids are marketed and distributed >> a large settle many

$26 billion involving those companies. meg tirrell, thank you very much let's go to ylan mui with a news alert from washington well, tyler, the nonpartisan congressional budget office predicting the treasury department will run out of cash in october or november if lawmakers do not raise the nation's debt ceiling. now the debt limit is currently suspended through august the 1st and then a cap of $22 trillion will be reinstated treasury can pay the nation's bills after that today they estimated that ability will be exhausted in the first quarter of the next fiscal year today senator mitch mcconnell said republicans will not vote to raise the debt ceiling. he said democrats should do it themselves as part of their $3.5 trillion infrastructure package. but currently that is not part of the proposal. democratic majority leader, senator chuck schumer, called mcconnell's statement shameless, cynical and totally political.

time is running short as the cbo is putting an end date on treasury's use of extraordinary measures of october or november. >> does this sound like we've seen this movie before y ylan, thank you very much. tesla's own charging network give it a huge advantage over its rivals why is it now sharing that network with other ev manufacturers and cars a wall street firm calls boeing its top reopening play will others agree? as we head to a break, some reit stocks sometimes, you want speedy but reliable. state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going hybrid with ibm. a hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. from telco to transportation,

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welcome back to "power lunch. shares of alzheimer's disease focused cassava sciences after the company announced it will present two new clinical data sets for its products candidates and next week's international conference now today's move brings the week to date gain to over 40% for that stock shares have soared around 1,600% yes, so far this year. alzheimer's a key focus for many >> especially with everything going on with biogen to tesla, elon musk will be opening to other evs later this

year by doing so he's helping the competition and giving up something that gave tesla an edge shares of ev stocks are higher on the news today. nio is up nearly 6%. auto and tech reporter for "the wall street journal" tim higgins alongside our very own phil lebeau phil, let's start with the details of this announcement do we understand this properly starting late they are year you don't need one of the other ev networks can you drive up whatever it is and use tesla's charging network. >> theoretically we have no details other than that this was sent out by elon muss nk a tweet yes, the supercharger network will be open to other evs late they are year. we don't know exact timing, what the pricing will be for other evs charging at supercharger sites. that remains to be seen. they're giving up one of the key advantages

they have a great footprint. they have great locations not only here in the u.s. but around the world and if you are another ev owner you might say, okay, i'll go to tesla and this could be another revenue stream for tesla as people are charging up their electric vehicles, even if they're not tesla's at a supercharger site. >> if they're not giving up their own advantage but actually increasing the advantage that they have because currently if their chargers are he can cluesive to tesla, everybody else who drives one has to charge it somewhere else now if you can use a tesla charger you don't have to charge it somewhere else. wouldn't that be a big problem for the ev charging names? >> it could be a huge opportunity for tesla as washington debates funneling billions of dollars into ev infrastructure, charging stations

that it would go into a tesla-specific facility, maybe tesla could be the winner and capture some of that spending. a large infrastructure and winners in that space if they can expand even more be more dominant there. >> so many questions, so little time let me ask a couple quick ones, tim or phil. if i have another manufacturer's ev, a gm car, will my connections work at a tesla charger? tim? >> you're going to need an adapter, if you will elon has suggested in the past that he's been working with -- the company has been working with automakers to make it work. that's one of the issues you'll have to learn about. >> does tesla now make money on charging stations? in other words they secure electricity from a provider and

then they provide it to the tesla owner. is that at cost, or do they have a markup, and will they mark up even more -- >> all great questions, tyler. it is not broken out per vehicle. look, with your model 3, this is what you are -- the average one is paying to charge up at one of these supercharger sites the vast majority of tesla owners as well as other ev owners charge at home. so they don't use the supercharger sites as much as you might think. they do use them there is demand there but it's primarily for people going long distances or they know they have a lengthy commute and can recharge somewhere along the way. >> if i have a tesla can i use a non-tesla charging station >> usually you can

there's an adapter to make it work >> finally, is this opening to non-tesla automobiles going to be in the united states or in other countries or globally or what, or do we know? >> we don't know great question >> this is government by tweet, in other words so we don't know >> they have disbanded their media relations department so when you ask, it's like sending it off into the ether and you're not sure if you will ever hear from anybody i'm sure this is one of those things that may be asked during the analyst portion. whether or not we get more details remains to be seen >> maybe mr. musk is the media relations department >> i think we'll be hearing more i think he's talking about spacex -- >> when is he going into space >> that's a great question

>> america wants to know >> thank you both very much. still ahead on the big lunch, supply chain issues, squeezing two companies sending their stocks lower we'll take a look at them. here is a live look at the b-word at the virtual bitcoin conference as well as jack dorsey we've conveniently put a sticker over the crypto council for innovation musk speaking saying he's a supporter of bitcoin but added he's concerned about the amount of energy bitcoin takes. he added that he's not an investor, though, the only publicly traded stock is tesla we are monitoring it more and we'll bring you more highlights from this very fascinating quartet of participants. have a black owner.

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welcome back i'm rahel solomon. here is your cnbc news update. a federal judge is temporarily blocking enforcement of a new arkansas low that prohibits gender confirming treatments for transgender minors it was scheduled to go into

effect next week the aclu is asking the court to permanently invalidate the law police clashing with anti-vaccine protesters near parliament the crowd was eventually cleared by tear gas and water cannons. with infections increasing the government has ordered mandatory vaccinations for health care workers and nursing home employees. russia is sending a lab module to the international space station that will provide more room. today's launch ends a long series of delays the module had been scheduled to go up in 2007. and the mayor of liverpool says it is incomprehensible a united nations committee has removed the city's world heritage status 17 years after it won the designation the panel says that development near liverpool's waterfront docks led to a significant loss to the ity's integrity and you a thenauthenticity >> that is a tricky one. >> they're looking into whether

they can appeal the decision >> they should have heritage status based on the beatles alone. >> right seriously. we'll give them a tyler world heritage status. let's check on the markets the dow hanging on to a 250-point gain a strong rebound after monday's sharp decline. the small caps are rallying even harder they are up more than 1.5% oil stocks are continuing. a little bit of rebound. it was much milder after yesterday's big drops. exxon and chevron up nearly 4% >> let's talk about some power movers, shall we shares of harley-davidson falling. the motorcycle company said soaring raw materials prices and supply chain bottlenecks will hurt its second half results

and sleep number said supply shortages continue to impact its sales. here is a great example how supply chain problems can be deflationary shares down 13%. and vtex spiking in its wall street debut, pricing the ipo at $19 a share. that was above the expected range. right now it is up 19% >> a very busy summer for ipos ahead on "power lunch," treasuries taking a break on rallies. that is coming up in the bond report. >> and a chief purpose officer is that corporate america's esreo do good? we'll explore ahead. - ten-x it? ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything. like a coffee run... don't just sell it. ten-x it. if you're 55 and up, t-mobile has plans built just for you.

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the oil market is closing for the day and seeing a second straight day of gains. l let's go to pippa stevens. a strong session for oil here back above $70 monday's sharp drop is feeling pretty far away. wti up 4.6% at $70.31. brent crude is at $72.23 for a gain of 4.2% now the market here shaking off

a surprise jump incrude stocks from last week inventory up for the first time since may rising by 2.1 million barrels. estimates called for 3.9 million barrel draw. on the heels of oil's rise energy is the top sector dropping around 4% all components are in the green with occidental, diamondback and marathon leading >> thank you very much just like oil is on the rebound so are bond yields rick santelli has more rick >> reporter: if you look at the two-day chart you can garner a lot. obviously we've had a big reversal yesterday's low yield wassed 1.12 a 1.19 yield but maybe the most important thing has been the relationship lately with the equity markets one week of the s&ps rates definitely led the equity mark

lower. soft rates made investors nervous. a global reopening trade gone awry but clear on the right side of that chart today that stock seemed to be leading when rates seemed to be moving higher if you go to a one-week chart of the dollar versus tens, you could see more clearly the dollar likes higher rates but today higher rates repel the dollar index though mostly the trend has been higher. for the rest of the week, the weekly close with regard to which side of 1.36 to 1.38 we close. we could have put in that bottom yesterday. tyler, lack to you >> rick, thank you the era of esg investing is here with money pouring into what was once a niche market. according to black rock investors invested $288 billion globally in sustainable assets from january through november last year.

the popularity along with a push within companies has led to the creation of a new job in the c-suite, the chief purpose officer. joining us now with more is the author of a story about this phenomenon in axios. are the so-called -- are the so-called chief purchase officers another title for someone who might otherwise be called the head of d&i, diversity and inclusion, or chief sustainability officer how do they differ or are they in some companies the same >> this is a buzzy way for companies to bring those into one title. head of diversity reporting to them and basically to put this

flowery label -- it could be to do good on a company's effort to within and without make a positive change. consumers and employees. >> i was going to ask you, is this coming from employees, coming from the leadership teams of the companies that have chosen to do this? for shareholders whether they are funds or not where is the impetus >> it's all of the above the primary force is the employees. according to the latest edelman trust barometer, 80% of workers in the u.s. and globally expect companies to do something about issues like climate change, the rise of animation, systemic racism and that number will keep climbing the number of employees are willing to quit over it. >> i want to get kelly in the conversation time was -- and not so long ago,

what is the purpose of a corporation, the answer would have been to make money for shareholders, period the rest it have goes by the boards >> so we were -- we all heard the business roundtable in august 29 come out with a statement that solidified this and said companies should have a purpose beyond profit. it's the new generation. it is won on values right now. they don't want to work for just a company and collect a paycheck but work for something that stands beyond profits. >> in order to make money that serves the consumer or the customer so either companies don't want to be transparent with their employees about what that is, if

they think it's distasteful. if google makes money and employees don't like the purpose, they can either leave and do something whose purpose they agree with or pressure the company to use profits to put towards other purposes is that what this comes down to? >> right not every company can do everything it's about aligning the purpose with the profit part of it yes, they're making money off of their tech, off their products but maybe putting profits and trying to improve the tech workforce. so companies want to know there is kind of two things happening. there's the profit, there's the business part of it. companies are thinking outside the four walls, too, and how can we stay in our line. >> does this mean that companies are more likely in the future to take stances, put stakes in the ground on societal issues of

racial justice, racial equality, or other issues, environmental and so forth >> yeah. a company not making a statement when something like the george floyd protest happens is a statement. they will call you out on line the chief purpose officer comes in here because the ceos make all the statements >> interesting thank you so much for your time today. we enjoy working appreciate your contribution i'm thinking here a chief purpose officer is going to have to do a lot of listening the shareholders the employees.

>> i feel as if the pendulum has swung to the other side. in alignment with what their constituencies actually want it's interesting her report would suggest otherwise. >> be sure to tune in to "power lunch" tomorrow. we'll focus the entire hour on esg investing and facts and foibles. a "power lunch" special report the esg revolution >> very much looking forward to that elon musk, jack dorsey and kathy wood speaking at a conference for the crypto council. ab cmes ing strongomnt out dogecoin more on that next.

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>> reporter: these are arguably three of the most influential people in crypto the three are on a panel as we speak. i just turned the volume down. it's hosted by the crypto council for innovation 40 minutes in and they're still getting into a lot of these topics elon musk is wearing a bitcoin shirt. he says on balance he supports bitcoin but brought up the environmental impact of cr cryptocurrency mining. >> i'm a supporter of bitcoin and the idea in general. but as i said what i watch out for, crypto taking, especially bitcoin, to maybe use energy that's a bit too much and not necessarily good for the environment.

>> reporter: musk had been blamed for sparking bitcoin sell-off the impact of the environment. tesla stopped taking bitcoin as a payment, if you remember he says they want to start doing more diligence he did say tesla would most likely resume accepting bitcoin at some point. doing a little more research he owns bitcoin, ethereum and dogecoin another headline here, musk says that spacex also owns bitcoin. he talked about some of the accusations that he is manipulating prices. here is what musk said about that >> i might pump but i don't dump >> i definitely with like to see

bitcoin succeed. >> reporter: he loves dogs and he loves memes, so it's the perfect cryptocurrency he talked about the irony of dogecoin being formed to make fun of bitcoin one of the most popular cryptocurrencies jack dorsey, meanwhile, saying bitcoin is also irrelevant, is fun, and bitcoin can be fun, too. part of what he likes about it some of the more serious potential like bitcoin working for continuation like remittances. he compared it to the early internet and says this will be the currency of the internet at some point >> a lot of potential that i see the internet having the cu currency >> kathy wood talked about apps

being built on top of blog chains like bitcoin. she highlighted the potential hedge against inflation and a hedge against deflation. this panel, of course, still going on we will bring you more headlines as they come back to you. >> elon musk trying to get bitcoin prices up now that they've fallen i don't know if we have the details. we'll check back in with you soon kate rooney is monitoring it soon still ahead, are we witnessing the deterioration of the american dream why a majority of americans are worried about their kids' financial futures. and boeing besieged by setbacks. why is one major wall street firm calling it a top reopening play do our trarsde agree that's next on "power lunch.

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welcome back to "power lunch. boeing taking flight after baird reiterated an outperform rating and named it a top pick in the air space segment. production cuts and issues with the 787 dreamliner planes. let's bring in the "trading nation" team to discuss. jim gordon and quinn of jewell

financial. this is a company at the intersection of industrials and travel shares down about 7% this month. >> yeah, it's tough to make an argument to hold the stock i used to own it i cut it if you look at the chart it's lost its substance since 2009. until it can be back above there, it's a no touch as you mention, concerns about this 777x set to be released in 2023 a hangover from the concerns there's a question about the pitch and lift factor. similar to 737 there are scheduling issues and then delivery of the 787 dreamliner, they have roughly half the inventory and they're expected to be out for me it's a no touch right now. >> quinn, despite the pick-up in air travel you're not a fan of boeing either. telluous >> it's a shame. i think baird has some of the best analysts in the business. they seem to be doing everything

right. they cut their dif dend to protect cash flow. they have a much improved balance sheet and they'll participate with the reopening but it seems like every time this gets some momentum and looks to take flight, it seems to be some headwind. so it's a no touch for me. i think there's better opportunities out there. >> two nos stock at $221 a share. thank you. head to tradingnation.cnbc.com for more analysis. tyler? >> seema, thank you. still ahead -- why a majority of americans think the american dream is on hold for their kids we'll go under the microscope with that one, next. be sure to watch "dr. anthony fauci on "the closing bell" at 4:00 eastern time. now the latest from tradingnation.com and a word from our sponsor

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at how these numbers have changed. >> for many americans, the american dream is dying. at least if you define that success based on the success of your children. now according to the latest survey data put out by pew research, 68% of americans do not believe that kids today will be financially better off as adults than their parents were that's the most pessimistic that survey responders have been in america since at least 2013 and perhaps even longer. that seems to follow the same story told by nonpartisan think tank opportunity insights out of harvard university where their data shows that only half of kids born in mid-1980s are making more than their parents did. if you go all the way back, over 90% of those born in the 1940s, you can see there, went on to make more money than their parents did as well. so there's this notion and you toss into the inflation part of the discussion that we've been saying everything else, it really does tell you a stark story about whether or not

something needs to be done to make americans feel like the optimistic part of their life. >> percent of children earning more than their parents by child's year of birth, i assume those are adjusted for inflation? >> yes >> so it's purchasing power? >> the notion that you can be better off economically on the same base line that you were so think about the ability to buy a home or the ability to buy a car, all of those things factored in as well. it does really tell you a little bit more about just the general feeling of the environment >> it's a fascinating topic because it gets to questions of inequality, which may have -- which, because we had a much more income equal society in 1940, i believe, than we do today. >> it's also one of those interesting points that the pandemic really kind of accelerated things to the down side for some of these measures. we speak so much about the k-shaped economic recovery high wage earners that have

financial assets have performed better and are better off now after the pandemic than a lot of other people out there an interesting kind of note on this whole pew research survey it asked americans generally what they thought. if they were optimistic about the current economic situation here in america. shockingly, only 29% of people say that they think that the current situation is good. 2018, that same number was 65% >> it doesn't surprise me, right? we look around and you have -- everyone of every political stripe has their own main concern but everybody has concerns i don't think many people go, yeah, this is where we all hoped we'd be. the student debt issue is a big one. obviously doesn't factor into earnings power and in some ways if you get a wealthier society it would be hard to increase that in real terms but feels like student debt is one of the main problems >> if you were in the middle class or below it seems to be getting bleaker and bleaker

whereas if you're in the middle class or higher, opportunities seem to be presenting themselves more and to tyler's point, that may be a whole wage inequality issue that has been exacerbated in the last 10 to 20 years more so than it was, say, back in the 1940s and '50s >> i worry about this with my children but i worry even more about the pursuit -- the persistent of democracy. i worry about social power >> that's what i'm saying. everybody does >> should we leave it on that grim note? >> let's leave it right there. dom, thank you thanks for watching "power lunch. "closing bell" starts now. >> we're going to focus on other things because that's too tough a question welcome to "closing bell." i'm wilfred frost. stocks extending gains putting monday's sell-off squarely in the rear-view mirror >> i'm sara eisen. earnings front and center today. dow component coca-cola getting a pop after