we like it to be the best technology enabled market and it has a 3% dividend yield. >> okay. and our dividend investing expert, kenny harrington >> intel 10 times earnings, 2.5% yield, get in now while everybody else still hates it >> great weekend everybody thanks so much for watching. you as well. "the exchange" is now. thank you very much, scott hi, everybody. here's what's ahead this hour. the market that put monday's big sell off firmly in the rear-view mirror we're about to close higher, the dow above 35,000 for the first time we'll have picks for the next phase of this run. as jay powell's time coming to an end we'll speak to an economist who is saying it's looking more and more likely like he won't get another term the fun edition of rapid fire,

wall street is cold on beer and pizza, hot on coffee plus energy is coming up let's begin with the markets >> what do you mean coming up? that energy shot is right here u.s. equities are trending farther this afternoon the s&p 500 just hitting the all-time high not too long ago, 4,407. we're not too far off. all major averages are up on the week following the major sell off on the week when concerns about the spread of the delta variant did take hold. take a look at those communication services, health care as well as consumer staples trending all higher for today. but much of that upwards trend this week is about the by the dip kind of story, along with strong company earnings reports that bode well for the near term so far 85% of those earnings that came out beat analyst forecasts for the second quarter. so, many are paying attention to whether these companies will succeed in passing on higher costs to consumers because then that would mean inflation would

take longer to subside and that would prompt concerns about higher interest rates and rattle markets. let's talk about exclusive clubs. facebook is likely to rejoin the trillion dollar club the stock is up well above 6% right now because of better than expected results from social media. but you have a morning report that came out that credit suisse raised their target. >> you're the kind of person with the kanye west, i don't need drugs i'm high on life >> i don't do drugs. i don't need them at all >> don't need the five hour energy >> just you and our viewers and this job >> thank you very much from down 900 to record highs, it's been a dizzying week my next guest says things could be choppy for a few more weeks but the bull market is intact. he's doubling down on the valued stocks for the rest of the run joining me is portfolio manager

of the new burger fund crushing the market this year up 20% and 110% higher from the march 2020 lows. it's great to have you so, first of all you're not too phased by these sort of delta concerns, you know, the kinds of -- whether it's covid or whatever, inflation, the thing that takes the market monday don't bother you too much? >> the delta is going to make it very choppy for the next four to six weeks. we're watching it closely. we have a lot of internal research people who spent a lot of time looking at it. we believe on the other side of this it is going to be a very good market. so, choppy for four to six weeks, and then you want to be very cyclical for the rest of the area >> let's talk about cyclical for a little bit there's a raging argument for value and growth you think value investors have drifted into growth stocks and the big cap tech names

where do you think people should be specifically focused for the next couple of years >> our biggest overweight is in the portfolios, financials, industrial materials, and energy these are sectors we've been very overweight for the last year and we believe for the next six to eight months we want to stay away from those sectors those are the sectors you want to be in >> do you have to have rising interest rates in order to be positive on those sectors? you know action in order for those to be well-performing stocks >> yeah. that's a great question. the answer is it would help a lot. you know, if we enter environment where pricing is heading up -- and we believe it is -- rates will also head up, the yield curve will steepen, and if the yield curve is about 105 basis points today between the 2 and 10 sees more like 150 or 160 that will be much more bullish for value and growth >> we mentioned the financials, but your strategy is a stock picking strategy so, let's, if you don't mind, get a little bit more specific

than that. you have a lot of the big familiar holdings like jpmorgan, ge, a lot of energy names, ibm, cisco, johnson & johnson are these all different kinds of names that you think should continue to perform well >> yeah. no, absolutely i mean, you know, putting the weights aside, we are a bottom-up manager and we carefully go stock by stock and we -- all the stocks are named we absolutely love all >> you make it sound easy, eli it's funny people would sit here and say, i don't know, you know, you can -- we have a big raging debate about whether to own facebook or google and the more emerging stocks. why do you stick with big blue chip names that you might think would have performance that's a little bit more boring >> yeah? you know, listen, we're a value manager and the names you just listed all have incredibly good valuations with some amazing

catalysts that are going to play out. and if the environment comes out like we believe it will over the next six to eight months we're going to get paid on most if not all of us. >> it's been great having you with us. thank you so much. >> thank you very much >> we have some breaking news out of washington. let's move to ylan mui who has the details for us kelly, treasury secretary janet yellen has sent a letter to congress warning that the nation will hit the debt limit on august 1st. and she said that if congress has not raised the debt ceiling by august 2nd, the treasury department will have to resort to using extraordinary measures in order to pay the nation's bills. yellen did not say how long she thinks those extraordinary measures could last, but she did warn that failing to pay the nation's bills would cause irrepairable harm to the u.s. economy and the livelihoods of all americans. now, cbo has previously projected that the extraordinary measures could last through october or november. yellen said that there are scenarios where the

extraordinary measures could run out shortly after congress returns from august recess this year because of the pandemic and changes to payments and to receipts, it's especially difficult to project kelly, she did urge lawmakers to raise the debt ceiling in a bipartisan fashion but again, treasury will have to report to using those extraordinary measures starting august 2nd >> ylan mui with the latest. thank you very much. speaking of janet yellen and her former job, 2022 is going to be a big year for the federal reserve. it's when most expect tapering to begin, and it's also chair powell's last year at the helm my next guest says his job is at risk mike, it's great to have you i was surprised to see you put this out what are you hearing >> i'm not hearing anything in particular, but we are certainly hearing things publicly from just this week from senators brown and elizabeth warren stating their concerns about how

powell remaining in the job. almost everyone agrees he's done an excellent job when it comes to monetary policy, when it comes to steering the economy through the pandemic but there are certainly some democrats on the more progressive end of the party who have some concerns about powell being a republican and having oversight of the fed's regulatory and supervisory responsibility so, i think it's very much up in the air. personally i think -- as i said, i think he's done a great job, but i don't think he's a lock for getting a second term. and it's not because of monetary policies it's because of -- i think -- because of regulatory policy >> we often hear concerns, especially from each side of the aisle, the more vocal groups in this case you're talk about the progressive wing of the democrat party fine but why does that have so much weight and bearing on his likelihood to stay in the job? why shouldn't we dismiss that as the kind of noise we always hear

around these transition points >> well, again, i think this is a pretty uncertain point and they're not only progressives in the senate but there are some progressives within the administration who, again, may have the precedence here as you said secretary yellen certainly supports al, they worked together well, but she won't be the only voice in the administration and i would also point out in this whole issue that there are a couple of governors on the federal reserve board whose terms could be coming up pretty soon so, that may also influence the decision on powell because if biden is assured that he has a majority of democrats on the board, he might be a little more comfortable having powell as the chair, provided those democrats would pushfor the regulatory agenda that would presumably the administration would support i think there's a lot of moving parts when it comes to the fed

and the fed leadership >> if i were to think through this in a purely utilitarian way, it seems to be dovish. a woke fed, so to speak, even a powell who's aware of this dynamic and wants to stay in the job, wouldn't all of that lane dovish and be more or less for the markets unless there is a real concern for the market. >> i think that's right. powell has pushed the fed in the dovish direction powell and his vice chair. the framework review has been one that has tolerated higher inflation. as you mentioned sought a more inclusive definition of full employment so, it's a dovish thing. some of the contenders that are being thought about or named for potential replacements for powell would also be dovish. either way i think policy is going to remain accommodated and growth friendly and i believe the market will like who's in

there and would like powell to have another term. but i think any replacement would probably lean toward really fostering growth and full employment >> is there a legitimacy or independence issue if it's somebody who is seen as tighter with the administration? ironically if we go back for years now, the fed's goal has been to raise inflation expectations something like this could certainly do it. you could argue it's pursuing institutional goal or you could argue it might risk furthering the concerns a lot of people have about the fed >> i wouldn't worry about the fed's independence at this point. in part the structure means the president will appoint his preferred chair, whether that's powell or somebody else, but he won't get to a point with the full board and certainly he won't be able to appoint the regional federal reserve bank president

so, there's enough, i think, institutional structure there that will prevent this president or any president from overly politicizing the fed and i think whether it's powell or some of the other potential replacements who have been considered, governor brainard is considered a front runner if it's not powell. i think she also respects the institution and wouldn't bend it to the political will of this or any administration >> very, very interesting. mike, appreciate you joining us today to explain it all. >> thanks. >> mike is chief u.s. economist at jpmorgan. investors are snapping up single family rental properties as homes rise to record levels we're speaking about who's buying what and where. that's next. lawmakers from coast to coast are looking for creative ways to help their high earnings to avoid the salt cap we're going to look at creative ways states are trying to side step it.

we're back in a moment >> announcer: this is "the exchange" on cnbc. has plans built just for you.le 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. this past year has felt like a long, long norwegian winter. but eventually, with spring comes rebirth. everything begins anew. and many of us realize a fundamental human need to connect with other like-minded people. welcome back to the world. viking. exploring the world in comfort... once again. 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.

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that's 'cuz you all have the same internet. xfinity xfi so powerful, it keeps one-upping itself. can your internet do that? welcome back rising prices, passive income yields and inflation protection have all prompted hoards of real estate investors into the

market single family rentals are surging. since launching in 2016, they've surpassed $3 billion in transactions here now to talk about whether increased investor demand is crowding out other home buyers is gary beasley. thanks for joining me. i'm sure you've heard this concern. is it intensifying out there >> there's always been a lot of investor interest in the asset class, historically more mom and pop driven today there's about 20% or 21% of the homes today are purchased by investors but the vast majority of those are small investors. i would say, you know, perhaps 90,000 homes a month purchased by investors, maybe 4,000 of those are by large investors, majority being mom and pops. >> and that's similar to what we heard when we spoke with caldwell banker as well, asking if they're seeing investor

crowding why do you think this has become such a -- i hear about this issue all the time it's really one that has divided communities and raises a lot of ranker talk to me about how you see the politics evolving. >> well, it's interesting. you know, i think there's always a challenge when it's a lot of private capital flowing in, crowding out -- potentially crowding out smaller investors it's not necessarily backed up by the facts i think if you look back, the same thing happened during the last financial crisis, when arguably there was more institutional capital flowing in and i would argue it put a bottom on housing prices, and prices turned around since 2012 when the capital started to flow in there was a seminary tif back then that there was all this wall street money flowing in it did provide a bottom to the market it provided much-needed capital. and there's an awful lot of good

when it coms to capital being reinvested that could be for sell or rent we have housing around the country, both new built and existing stock, several million units. i think anything you could do to get investors large and small to reinvest in those homes and create affordable housing that's of high quality is generally a positive thing >> sure. i'm curious as well about, you know, the kinds of yields that real estate is generating with home prices where they are what's that dynamic look like? you know, how attractive is the yield as a landlord? >> well, rental yields vary by price point. generally the higher the price point of the home the lower the yield. i think when you see the types of homes that are on our marketplace, the yield ranges about 5% on average unlevered. and so when you put some

leverage on that and get home price appreciation, what you see is total return profile being quite good so, yields have probably compressed 50 to 100 basis points in the last year. but the total returns have been similar or better because of home price appreciation. >> sure, although again i wonder whether that's one of the things where the dynamics look fine in a rising price market. especially what you said with leverage, i'm assuming if you use mortgage or something like that, falling home prices can make both of those dynamics work against you. the fact we've seen such uplift over the past year especially, i wonder if that is just moving some people to the sidelines who might have been all in on the strategy in 2016 and enjoyed pretty good returns and are thinking now it's looking a little peaky >> people have been going on the sidelines every year since i've been in the industry and for the most part regretted it because it's hard to call the top. rents are also increasing. and interest rates, while

they're likely to creep up, i think there won't be a dramatic increase in rates. i just came back from a conference in miami and it's the most outlook i've seen in a decade i think single family homes have some very attractive supply/demand characteristics. so, part of it is that it's just on a relative and absolute basis quite attractive right now. >> i hear about it all the time as well. i think that's partly my curiosity is it becomes too widespread i guess just a quick final question we are talking about people who are buying properties largely within a pretty close driving radius of where they live, or does this reach across state lines? >> it's the beauty of technology that roofstock has brought to bear you can buy homes from anywhere in the country without leaving your home. we break down those geographic

barriers it allows investors to get away from that buying outside the home to buying everywhere, which is a much better diversification strategy >> it's fascinating. gary, thanks we appreciate it today coming up, talk about a wicked bad quarter, shares of this beverage maker on pace for their worse day since 2007 after missing earnings estimates as we head to break, take a look at the dow components going away and hitting all time highs today, above 35,000. american express is up there we're back in a moment retirement 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,

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all in our app. expedia. it matters who you travel with. welcome back, everybody. we're near session highs on the markets. the dow is up 246 points it's the underperformer, up .3%. the nasdaq and s&p are up more than 1% today. the home builders on the move. on pace for its best week since early may. falling interest rates have that effect green brick up 5%, mdc up 3.5%, 3.6 for dr horton, tri pointe up 22.7%. just as we talked about the massive thousand dollar slump this year, lumber is up 26% this week since monday and on brace to break an eight-week losing

streak we gave up all the gains for the year and turned negative year to date prices are down more than $1,000 but this rebound just in the last several days is worth watching let's get to frank holland for a cnbc news update here's what's happening at this hour. china imposing countersanctions on some americans, including former commerce secretary wilbur ross, following sanctions against chinese officials involved in hong kong crackdowns these measures coming days before the u.s. deputy secretary of state is said to visit china. key endorsement from regulators that could make it the only second shot approved for 12-16 year olds. it's the only one approved by europe and the u.s. for adolescents. close call for firefighters battling the tamarac wild fires, driving through sparks and flames near the border with nevada the tamarac blaze remains just

4% contained on "the news" later tonight the latest on the wild fires and progress against the bootleg fire in oregon i'll be filling in for shep. >> we'll see you then. frank holland. dominos gets chewed up, starbucks spending and amongst monster energizing markets here's your friday fast forward. >> reports, rates and livelihood are the key themes next week the busiest weeks of earnings season kicks off with resolve from tesla after the bell. alphabet, apple, microsoft, visa and starbucks are just a few of the names reporting on tuesday wednesday brings results from facebook, paypal, ford, pfizer, mcdonald's and boeing. amazon reports thursday and the week closes out with chevron and

exxon. the fed meeting kicks off tuesday with interest rate decision on wednesday. investors listening for change of sentiment and talk of tapering and it's one of the highest anticipated ipos this year, robinhood debuts thursday on the nasdaq robinhood sees a price between $38 giving it a $35 billion valuation at the high end. the company is setting aside as much as 30% of its shares for retail investors plus rates on the housing market, new home sales, pending home sales for the month of june that's your friday fast forward. ♪ ♪ ♪ digital transformation has failed to take off.

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welcome back, everybody. let's catch you up on a couple stories that should be on your radar right now. it's a food themed edition wall street is cold on beer and pizza and hot on coffee and energy drinks. here to break it down, bob pisani and kate rogers welcome to all of you. first up, is it too good to be true dominos reported a massive quarter yesterday with sales up 3% from 2020 and nearly 20%

higher from the second quarter of 2019, pre-pandemic. the shares hit an all time high. but jpmorgan is downgrading the stock to neutral, siting valuation concerns and writing that it might be time to lock in profit heres bob, the stock has been such eamon administer performer that it's like on any other name it might seem like an obvious move but with dominos it seems they execute so well over the past decade >> for once i agree with an analyst. this makes complete sense to me. this is the ultimate peak everything story the stock's up 65% since the pandemic 15, 16 months ago. 65%? how much pizza can you possibly sell if you look at the metrics here, it's pricey. 32 times forward earnings. that's a lot for a consumer stock. earnings up 50% since the pandemic, 25% increase in revenues okay that's fine. but the stock's up 65% no

the analysts make sense to me. i agree. >> this is worth it for those words alone out of bob's mouth kate, give us more color out of domino's here. >> i hear what bob is saying but, bob, the people want pizza. this was a positive quarter. very, very positive on the call. he mentioned their higher average tickets. also the company's ability to raise prices and not necessarily see the consumer pullback, something we also heard from chipotle he also talked digital ecosystem is strong. they're rolling car side delivery, getting orders out to people who order in advance in under two minutes. alison compared that to what you see in an average drive through time he said personally he's waited as long as five minutes. that's something they're rolling out. they're continuing the strategy of opening up more locations labor is of course an issue. but they've gotten rid of a lot of things that delivery drivers used to do like folding pizza boxes to make sure they're getting the pizza out the door

more quickly this is a company and stock we know performs well in restricted opening environments and fully open environments. and people haven't pulled back yet on pizza they still seem to have a lot of demand for it. >> michael, you're thoughts? >> well, i think i agree with bob that the fundamentals just aren't there right now when you have a valuation for a pizza company at 32 that's being priced almost like a technology company, i think it's time to take profit. you know, you might be in a position where you could have future gains i mean, certainly this drive thing that was just talked about is a big deal. i know in california they've been testing out these sort of drive through pizza orders where you order and literally it's two or three minutes in drive through. so, that's a huge growth i know a lot of franchise owners and different fastfood companies that are very, very bullish on what's happening in fast food because of how impatient people are. but valuation matters and when p

fundamentals are this far out of whack. >> i know your point about 38 times earnings but they have proven they are a technology company and it's been paying off massively. look at chipotle, we were just talking about the other day, exact same story >> no, no. >> yes they're bearing the fruits of those investments. >> kelly, you know what the side of a market bubble is is when kelly starts trying to convince me a pizza company is a technology company >> they are. >> that's the side of a bubble yeah, okay, they have technology >> thank you >> but they are food >> all right let's move from food to beverages and talk about what's going on with seltzer today. it's a really bad quarter for boston beer. that was our mystery chart that we teased earlier. they blamed their top and bottom line miss on demand. shares plunging as much as 26% today. goldman quick to downgrade the stock to neutral saying they were surprised by the magnitude

of this quarter's miss did the analysts get this one right again? >> this is even easier than dominos. if the stock was $400 prior to the pandemic, it's $1,300 right now. so, up 200%? how much more beer can anybody else drink right now it's 50 times forward. it was 35 before, it was pricey. now it's 50. we know beer is a technology company, of course, we know that they're investing in technology. but 50 times forward earnings? you're kidding yourself. by the way, separately the hard seltzer thing is topping out clearly right now. i know that's an overall good thing. >> this is a classic sign, kate. just as i've gotten on the band wagon with the seltzer trend it's totally over. i forget the name of the one i liked. too much proliferation, kmod zags, what's the real story here >> i think what you said is

exactly it i remember having a discussion on set it must have been over a year ago now at this point just about how many hard seltzers there were and how many different products and names like how much of this can people possibly drink. i never got on the train rose all the way for me every summer i know there are so many options. it sounds like sam in and of itself rolled out too many versions of it and i think that's the autonomic nervous system right there >> it is -- i was loading up for the party. it was seltzer everywhere. so, there's tons of competition. >> exactly >> why were the analysts so caught -- i'm not trying to argue any technology here. this is clearly just a fad but why were analysts caught so flat footed? shouldn't the company have adjusted expectations? >> well, they're not going to adjust expectation when there is still tremendous demand in the seltzer category i think you're right there's just massive competition.

this is something so popular that everybody is in it and once everybody's in it you reduce your ability to sell that's what's happened in this case there's too much competition in this case. >> does anybody know what the next big thing will be yet or just time will tell >> you're asking me? >> wrong person. i have literally no idea >> did you say gin and tonic >> i'm going back to gin and tonic. let's go back to fundamentals. of course gin and tonic is a technology play of course. but i like the old fashioneds. >> if you package up these days in a single serve portion, that might be the way this is heading. you can see david burr wick at 3:00 p.m. eastern time and moving from the names cold to the ones hot, there's a boost for starbucks, faster than expected consumer spending rebound. shares are up 3% today to another all time hide.

baird says starbucks has reasonable valuation, lags the broader market coffee futures have spiked, threatens to exacerbate tight supplies and, kate, prices are up 50% so far this year. starbucks facing a lot of shortages. that's what everyone's talking about these days >> they've definitely run into shortages here and there due to supply chain issues, obviously not a problem that's specific to starbucks. to the coffee prices we talk about an ongoing drought issue in brazil last month and they talk about locking in their coffee prices well in advance and keep it away from food away from home inflation. that's something they weren't too concerned with people are getting back into their routines i think the note mentioned starbucks beverage innovation, also technology, not to bring it up again, but they've done a great job with global order and pay, digital delivery, et cetera i think we're going to see the

routines normalize as more people head back into the office this is a stock and a scenario we've seen operate in a more restrictive environment and done quite a good job last quarter they did mention u.s. sells were back to pre-pandemic levels. >> michael, i feel like starbucks would be more of a michael yoshikami stock, big cap, solid, steady results i'm curious if you have any concerns about their china exposure >> that's interesting you say that i do have some concerns about their china exposure obviously the problems that london have in china with regard to sales numbers, china is basically a slowing market it's going to be a slowing market regardless of what people are saying i think china is going to face economic head winds. so, as for starbucks, let me just comment if i could on this whole drive through phenomenon, the world has become so, i want it right now, everything has to be right now

and i think what you're going to see is companies that can really continue to penetrate the market with drive throughs are going to capture. they're going to capture market share. starbucks is ramping this up right near my house they've basically taken -- i think, looks like a mobile home from what i can tell -- put wood on the outside and made the drive through. there's 15 people lining up every morning in the drive through because they're too lazy to get out of their car. >> i love we're talking about drive through like it's a new thing. it's been around for 40 years. there's the same thing in my town they have to put cones down the street because of the traffic around the starbucks monster is upgrading, outperforming setting a compelling valuation monster is up 4% this year but this is by bob pisani nugget for the day. it's the best performing s&p

stock this century it's appreciated over 100,000% since 2000 >> right so, this is one of those i call them analyst wing and a prayer stories. you don't know what to wine about so let's whine about it's up this year what is it 96? look at that growth. and it's only up a few percent this year, therefore it's underperforming its peers. maybe there's a reason it's underperforming its peers. but a lot of the growth is there. energy drinks are still going to grow this year -- that seems like a weak argument to me this is a very tepid endorsement, i think, of a stock that's been simply spectacular this year, in the last few years, and is pausing a little bit. >> michael, i'll end it with you on this. there's an interesting nugget in here about how they can do a lot more share buy backs and is this

a sign the company is transitioning into a more mature model phase. >> share buybacks are an admission they don't have money to spend on anything else to innovate but there does get to be a point. you expand, you expand your product, you expand how much you're in grocery sells, you expand everywhere, and then at some point how much monster can people buy, right? so, you've got to decide what are you going to do? are you going to go into new businesses or buy back shares. i think if they're thinking of doing that, that clearly is a sign that the company, that the management, thinks it's a slower growth story and that's something for investors to pay attention to >> i was going to joke about this and my producer made a joke as well. are there existing energy and alcohol beverages on the market? there's got to be. that feels like it could be an explosive new category >> i actually have no idea, but that sounds like a weird uppers/downers combo that i wouldn't be interested in

trying i had no idea that energy drinks were still so popular. and i had no idea about the nugget you shared about monster until i got the research for this seg m they are popular i'm just a traditional coffee type of person there's something for everyone >> the real debate of the weekend is about domino's technology, but we'll leave it there. bob pisani, kate rogers, and michael yoshikami. coming up, after warning chevy bolt owners not to leave their vehicles unattended, gm is recalling some models. what it means for the future of electric vehicles next ice works fast. heat makes it last. feel the power of contrast therapy, so you can rise from pain. i've spent centuries evolving with the world. that's the nature of being of cthe economy.apy, observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time.

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shares of general motors are down today after they announced a recall of some chevy bolt models phil >> kelly, this is the second recall for the chevy bolt when it comes to dealing with battery fires or the potential for battery fires.

there was one back in november that did not fix the problem so, now there is a new recall. and this one will impact a little under 69,000 chevy bolts, 2017 to 2019 model years, about 51,000 of those are here in the u.s. the bolt is going to be recalled as the owners are being told to do several things while they work with lg cam to replace defective battery cells. limit the charge to 90%. you can't drain it to below 25%. you cannot charge it overnight they don't want you to charge it overnight. and they want you to have the vehicle parked outside and they want you to charge it after every time you use the vehicle. it really restricts the use of the chevy bolt for the bolt owners for general motors, this is a problem that has been dogging the bolt for some time we talked about the fact there was the recall back in november. this vehicle -- this is a bolt that belongs to a lawmaker in vermont. it caught on fire after it was charging and by the way, it had been

fixed under the previous recall. so, for general motors, the focus now is to get these bolts fixed. they're focusing on replacing defective battery cells. those cells, by the way, kelly built by lg cam, which is the battery maker. for general motors, this is one of those problems they have got to get this fixed as quickly as possible because you're really restricting how the bolt can be used but the owners. >> we appreciate it. coming up. we know the typical inflation indicators gold, commodity prices have you heard about the dental one? we're going to dig into it and tell you what it's showing for prices and consumer confidence you can catch a show any time anywhere by listening to and following "the exchange" podcast. we're back in a moment [swords clashing] - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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welcome back, everybody. a major debate is raging about whether inflation has peaked or not. investors are trying to read the tea leaves in commodities like gold and copper. perhaps the dentist's office is where they should be looking here 10 explain is the founder and ceo from a cloud platform. it's good to have you.

you have data on inflation and consume earp r confidence what are you seeing? >> thanks again for having me, kelly. we have two indicators and before i just jump in to the indicators i want to let you know we as a company and a third of the united states dental market, and we have an api platform 124 million patients we have information on our platform for those practices we have started to see there are two major indicators that we are tracking one of them is dental inflation indicators which is very similar to recall appointments and this is not the retail world where there's a product recall this is a retail appointment the patient makes and about keeping the appointment. >> let's start with inflation.

what is it telling you >> it's actually very interesting. we are seeing positive correlation between the perspective of retail experience and it's showing us it is going to continue. maybe not as strong as it has been going up. we have been tracking this data for almost four years now and are starting to see a 0.7 and higher coalition on that >> that's telling you maybe this is more transitory, the price pressures. what about on a consumer confidence side of things? >> and that's another interesting one. that's about making appointments when i have a job and i have security and insurance, then i'll make an appointment we have even higher correlation at 0.8 and above these things are both related to each other it's also for the first time we are starting to see there's an inflation indicator going up and the consumer confidence indicator is going up. >> one interesting finding you

have here is that people seem to be in a rush to get these appointments done, there's there's a fear lurking beneath the surface. you know what, i'm covered right now. i need these treatments. i want to get it done just in case my job goes away or just in case the coverage changes. i thought that was very interesting. don't you. >> so overall what the pandemic has done and the lockdowns and the variants, they've created this concept of fear in the minds of the customer, and particularly patients. and as a patient what you want to do is just take care if there's any dental appointments, any needs. and this is tied to retail and recall appointments. the other things we are also starting to see people, as mass migration is starting to happen, people are moving. and before you move you want to make sure your house is cleaned up just like that, you want to visit your dentist and get your teeth cleaned.

>> true. that gives you a sense as well there's a shift in the population i know you can use this data to help with life insurance and other health issues. so much can be gleaned here. thanks for sharing it with us. we appreciate it >> it's a pleasure to be here. >> vijay sikka of sikka software two more blue states are passing laws that allow taxpayers creative workarounds

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welcome back california and new york are the latest states to pass laws on ways to avoid the salt cap robert frank is here with the details. robert >> reporter: kelly, talks over repealing salt in washington continue to drag on but at least 16 states, they're not waiting they have passed a creative workaround here is how it works the salt cap only applies to individuals, not businesses. so taxpayers who have income from pass-throughs can go through their partnerships or s-c s-corps. the state gives the owner a credit for the full amount on their personal taxes

the states win since they collect the revenue. the taxpayer wins since they avoid that $10,000 cap the federal government is likely to lose tens of billions from the larger deductions and wage earners, well, they don't get any benefit. the biggest beneficiaries here will be superhigh earners who have some pass-through income -- hedge fund managers, private equity managers, financial traders and owners of small businesses so, again, this could sort of decrease that pressure on d.c. to repeat salt we'll see where it goes. >> it's super hit critical putting that all to the side do you expect there to be a change in how people earn their income if this passes and they say we want the same advantages >> reporter: remember when this change first took effect you could deduct 20% of your income in 2017, we thought we would see

a huge number of people go from salary to pass-throughs and contract workers we didn't see that many. i think this will be similar if you're not a pass-through already, you probably won't do it based on this salt sort of expires in 2025 anyway so people may just wait for that rather than change everything about the way they work and how they earn their income >> it feels like it's getting more desperate because the population is leaving the states >> we heard that news today, disney moving those jobs to florida, that migration you just talked about on dentists from new york to florida and i think you're right, states needed to do something this solves it at least a band age approach >> people are advised to move to tennessee. that's another piece making the rounds today that's why the states are doing things to keep populations in place. thanks so much we appreciate it robert frank with the latest

that does it for "the exchange." i'll join rahel solomon for "power lunch" in just a moment and here we are. welcome to "power lunch. i'm kelly evans along with rahel solomon in for tyler mathison. topping the hour profit growth, the best it's been in more than a decade estimates are up, the s&p at a new high we will look at the reports due out that matter most to investors and the market chinese education stocks getting cut in half after a report china is widening its crackdown. is it a nirvana setup for tech one analyst says yes >> that's an interesting twist and a new type of activism the hedge fund manager who is shaking up companies in the name of esg, continuing on our big series from yesterday. and reaping returns for investors doing it her way more in just a moment. first, a check on th