and, again, i think that even regulators go back and forth about just how draconian they want to be in cracking down on that in the meantime we can consult as astrology charts how the ipo will go. thank you very much. we appreciate it, kate rooney. and that does it for "the exchange." "power lunch" starts right now tyler? thank you very much. ahead this hour the rally faces a new test with earnings from mega cap tech kms on the docket this week. we'll talk to a manager who expects solid results but also has one big worry. and crypto's comeback. bitcoin having its best day in weeks, but is it a picture perfect short squeeze? we will take a look at what's driving that move. tesla's road ahead, earnings out after the bell former tesla board member will tell us what elon musk has to say to kick start the stock and what tesla needs to do to stay one step ahead of the intensifying competition "power lunch" starts right now

and right to the markets we'll keep an eye on the momentum with two hours left to go in the trading session. hasbro is one of the top-performing stocks after they reported strong quarterly results. the ceo said price increases will go into effect in the fourth quarter and commented that costs are four times higher than a year ago. up 12.5% today also, within the past hour, american airlines warned of fuel shortages at certain mid-sized airports asking pilots to conserve fuel wherever possible. it is up about 2.2% today and shares of coin base are seeing a nice jump as, you guessed it, bitcoin rallies. the stock is down 20% in the past three months but it is up on bitcoin's rebound

ty thank you very much, kelly the nasdaq hitting a record as wall street gears up for what's considered -- it's off it a little bit right now -- the most important stretch of earnings this earnings season 165 s&p 500 companies are due to report this week apple, amazon, facebook, alphabet, microsoft and tesla are all poised to make up the growth >> paul, of that six do you expect positive surprises from a couple, and is there one stock that you're worried about? >> i expect positive surprises from the whole pack but the interesting thing is the whisper numbers indicating they will have substantial beats and that's what we've seen with the rest of the s&p 500 leading into these companies prints

so if they beat the numbers, which they will, top and bottom line probably give pretty rosy growth forecast as well, will it be enough? now i think particularly facebook and google with the reopening of the economy and the big boost, there is plenty of room there on the upside i think amazon is fine as well a lot of room on the upside there. netflix has already reported they're in the penalty box until further notice one that i'm worried that's reporting this week is apple and i don't have a negative call at all on what they're going to say about the current quarter or the next one but here is the rub. apple is about ready to start its next fiscal year and after exploding coming out of covid with earnings per share growth of 60% and the revenue growth of 30%, if you believe the wall street consensus, and that's a

pretty big sample size, over 40 analysts that publish on that company. they're expecting for this next fiscal year, which starts on october 1st, that earnings per share is only going to grow 3% and revenue will grow 4% those are very pedestrian numbers that unless this company over the next couple of quarters has monster revenue and eps beats, which cause wall street analysts to greatly increase their numbers, this stock is very expensive for a company that should slow its growth rate >> correct me if i'm wrong, paul, but i seem to remember that apple is a little bit famous/notorious for sandbagging those forward estimates. in other words, they lower the bar so that they can surprise dramatically to the upside right or wrong >> you're right but what i've seen following this company ever since its beginnings is the

discrepancy now between the wall street consensus and what they need to do to justify a 30 times out year p/e is a gap that i have not seen in a long, long time, tyler. we'll see what happens but they're going to have to show upside not only for this quarter but for the next a lot of excitement about the iphone 13. it had better be a huge success. >> they may low ball, but this time they're lowballing so much that, boy, they have to make up a large gap to justify the multiple or the pricing on the stock. let's talk about the two that you are not banking on but you think have really high upside and that would be driven by the ad markets at alphabet and facebook >> yeah, that's right. because you think about digital advertising continues to take more and more share over the advertising pie and these two companies are grabbing more

share from even the other players in the space and particularly for google. they have a lot of ads that they sell into the verticals that are beneficiaries of reopening the economy -- travel, hospitality and so they have runway that is are extended and actually when you take a look at their valuations and if you look at the peg ratio, which i would encourage analysts and investors to look at, you take the next year's p/e ratio divided by what we expect the next several years, the growth rate to be, these two companies are trading at parity to a little bit higher than parity, so their valuations areby no means egregious. the stocks would go much higher. >> give me a thought about tesla. i can't remember whether you follow it in your coverage universe or not. it is up today i think the numbers are out this afternoon. >> i think that they will continue to do quite well. the nice thing about tesla over

the last few years is they finally became an operator remember for many, many years they would promise production but then fail to meet it now the reason that they've garnered more respect is they've delivered on those numbers, so i expect no surprises from tesla the thing that i worry about tesla, of course the valuation is egregious competition is coming. and, unfortunately, tyler, when you take a look at their profits in my estimation too much of their profits come from selling energy credits, not cars, selling energy credits and so i think a little bit it have is fluff. >> all right paul meeks, on that note, we end it appreciate it as always. paul meeks >> yes, sir. retail investors are selling into this rally. that's according to a new note from barclays on investor flows. some surprising details on how retail investors are positioned and what they're buying and selling. let's talk more about the numbers and what they reveal

thanks for joining us. first of all, let's talk about size and scope of this how much selling is taking place? >> i think it's interesting that people talk about retail, you talk about mutual funds and etfs and the interesting thing is that those have been very strong with hundreds of billions of dollars the first two quarters and even in the last quarter of last year. however, i think an important statement, for most analysis, is the activity of what we call direct retail. these are investors not investing in etfs but direct in stock market scope and magnitude has increased quite significantly as we know from the meme stocks that have been in the headlines. investors in 401(k)s and those who invest through mutual funds,

they have been buying several hundred billion dollars. but on the flip side it is this direct retail, these meme investors. they have actually been pairing down some exposure >> which might be surprising to people after buying at the beginning of the rally last year, retail investors directly buying and selling, they began selling. they kept selling in the first quarter. so do you expect that activity to pick up again we were speaking with an analyst who thinks retail buying is a huge source of staying power and even if it dries up you'll see buybacks from companies step in and fill that void >> no, again, i would imagine other analysts are talking about mutual funds, and that is continuing historically if you look at that the activity of the mutual fund buyers tends to be actually sort of an indicator. they always buy late on the other hand, historically

at least, these direct investors have bought at the bottom. they always buy when the market is selling off, the mutual fund guys sell when the market goes down and historically they have to take profit as the market rallies. what was unusual last year even through the third and fourth quarter to some extent, even as the market was rallying, these guys kept buying however, now they have passed the baton to the more usual mutual investors the activity they usually buy too late >> we're watching this to figure out what sources of buying and selling are in the market and, number two, what side are retail investors typically on let me ask you what's going on with -- we were talking to paul meeks about them, the faang names. you see some trends with retail investors increasing their weight outside of those stocks is that right? >> exactly

we have a favorite trade back in the end of last year so they named it in that sense however, now they have been sort of moving out of that and going into what you would call secular growth countries that is an interesting trend that you are seeing from the data and finally you say they've reduced their strongest overweights which includes apple and amazon >> that's right, that's right. again, it's the same trend it's not just in stocks, by the way, one interesting thing has been that a lot of this exposure was achieved through auction so a big change that we saw last year the activity in the stock options was all because of these direct to investors and it was again contemplated in these large cap e-commerce stocks. the activity is also slowing

down as they're pairing down some exposure. >> thank you so much we appreciate it and coming up, china's escalating crackdown is rocking investors. on pace for the worst month ever we will go inside the growing risk from a key overseas market. plus wall street's sweet tooth a look at why analysts are falling in love with krispy kreme. and later big oil is shedding dirty assets amid the push to go green, but is thi the answer to reducing emissions? that and aotore " l maspower lunch" continues

ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. the number one brand to support beautiful hair, glowing skin, and healthy nails. and introducing jelly beans with two times more biotin. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

and there you have it - wireless on the fastest, m most reliable network. wow!. big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself.

beijing tightening its grip on fast growing companies rattling u.s. listed chinese stocks down more than 60% each in just a week crane shares runs for-china related etfs, but how do you run funds when there's so much regulatory uncertainty let's bring in the chief investment officer brendan ahern. welcome. good to have you back with us. tell me what china is trying to do with its regulations specifically of the after school tutoring or training companies what is their motive here? >> it's twofold, tyler one, you have demographic issues that were revealed in the latest census in china, showed that china is growing old

but more troublesome is a very low birthrate. so some policies directed to try to create more incentive to have kids, and it's been reported that upwards of 25% of urban family income has been dedicated to tutoring, to after school tutoring programs. so by removing the for-profit companies from the equation, that wall will be taken by public schools going forward the other factor is a lot of capital has gone into after school tutoring companies, both public and private policy would rather see that money go into the new technologies, if it's ai, big data, high-end manufacturing, biotech, semiconductors. they would rather see capital go into the industries china will need in the decades to come rather for after school tutoring

which arguably doesn't have much of an effect on the real economy. >> so really this is a case of the chinese central state trying, as they always do, to pick winners and direct from beijing the economy and, more than that, consumer spending >> well, i would argue it's more geared to providing relief to chinese families, that this move, as painful as it's been for investors both publicly as well as in the private space, it's been shared by social media in china, that parents are saying thank you to the government for relieving them from having to pay very high percentages of their income to have to deal with after school tutoring i don't think it's necessarily picking winners as opposed to listing to what the population wants, and this is clearly something they wanted relief from and they got it >> which would be a positive,

brendan, in the long run i think the stocks and investors have a lot of uncertainty about which sectors china may be coming for next. the following you have, you don't have didi in there is it because it hadn't qualified because of timing, or are you going through and trying to figure out if that one needs to be specifically excluded? i'm just curious what to do as the chinese government is more and more involved with its marquee internet names >> in the case of didi it's clear whether explicitly or implicitly they probably shouldn't have gone public what's happening to didi is why they stopped a group from going public if you're about to get regulated, be supervised and go public, your ipo perspective financials aren't reflective of that regulation. a.n.t. was going to go public but they couldn't stop the

foreign listing of didi. kwebb index provider has made the decision not to include didi until there's more clarification. >> until there's more clarification. so what kind of clarification are you looking for is this and for investors who would have wanted exposure to, say, chinese internet stocks through etfs like yours, they are looking at the p/es and whether this presents an attractive opportunity. should they trust an intermediary or another active manager to pick the names for them do they buy because they're now, quote/unquote, on sale, or the chinese government is so involved >> well, we continue to see in flows in kwebb and very significant influence. we continue to see the call to put ratio be quite cued to the call we are seeing investors buy the dip. we're seeing this disparity between the fundamentals versus the sediment continue to widen

we have alibaba reporting earnings next tuesday. they pushed forward the earnings two weeks earlier than they did last year. so we think they have something to share and we think that ultimately the fundamentals of these companies are so inexpensive, we continue to see strong earnings both from q4, q1 and hopefully q2 hopefully that gives us a catalyst to get the kweb companies going. >> down about 50% from their highs. thank you very much for joining us today as a side note, tyler, i wonder -- we talk about the rising cost of education here. this is a different version of the same issue in china. families might cheer they're doing something proactive about it, but i would expect this to keep bubbling up in our own process. >> it won't be dealt with in the same way but we've had our own problems with for-profit education here. >> that's true the cost of college more broadly. a big problem. further ahead on the show we'll

explain how companies are working to divest oil and gas assets and how much it's actually accomplish. plus, multiple wall street firms andkrispy kreme. we'll break it down after this rush hour will never feel the same. experience, thrilling performance from our entire line of vehicles at the lexus golden opportunity sales event. lease the 2021 is 300 for $379 a month for 36 months. experience amazing.

- [narrator] at southern new hampshire university, for $379 a month for 36 months. we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2022. - i knew snhu was the place for me when i saw how affordable it was, i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu.

i'm courtney reagan, and here is your cnbc news update this hour. starting next month california will require all state workers and all health care workers to prove they've received a covid vaccine or get tested every week >> we are exhausted, respectfully, exhausted by the ideological prison that too many americans are living under we're exhausted by the ron johnsons and the tucker carlsons, exhausted by the marjorie taylor greenes, the echo chamber perpetuating misinformation around the vaccine and its efficacy and safety >> at the white house, press secretary-general psaki says health experts are discussing

the change of the federal government's guidance on masks and off the coast of new jersey the coast guard used helicopters to rescue seven people on a 40-foot sport fishing boat that got caught in a storm. all aboard were safely taken to shore with no injuries i cannot imagine how frightening that must have been. tyler and kelly, back to you >> i get scared if i can't see the shore. >> i'm kind of with you, kelly i want to be able to see land. >> yeah. >> i was going to go fishing on a boat off of long island sunday morning, and the captain called and said, we are expecting very bad weather. i would suggest you cancel it. >> you look at those images and glad that's not you. >> i would rather not find myself in one of those baskets >> i totally agree a lot of credit to people who go out there every day. courtney reagan, thank you a quick market check the nasdaq has turned negative by 15 points

the s&p hanging on to a gain and the bond market is taking a breather after a wild few sessions you can see the ten year just under 1.3 so 1.27% let's get over to rick santelli will more this afternoon rick >> reporter: yes, and, kelly, if you look at the intraday chart, 1.27, no big deal, only down a basis point. if you attach friday to this what you see is we are doing quite a bit of work under the 1.26 low yield and that is very critical. lots of volume down there and it really gives us a hint that there's still a soft side to this market where rates seem to be more easily moved lower than higher and if we look at what's going on on a year to date of ten-year break it is 1.5 month high moving up to the 2.40 level. we know we have a fed meeting this week. inflation will be a big topic. look at the crb index.

six-year high from july 2015 to today. we can talk about the reflation trade being dead in the minds of many who write about markets but in the final analysis we are using a distorted tenure in the break to calculate negative real rates when we could see inflation might have moderated a bit. it certainly hasn't disappeared and ten year is probably a horrible instrument for showing us exactly how high inflation is tyler, back to you today's key stock to watch, wall street betting dollars to doughnuts on krispy kreme. several firms initiating coverage on the stock. jpmorgan, the most bullish overweight ratings sounds ironic, i guess goldman sachs and deutsche bank took a more neutral stance a 13% upside saying the company's strategic plan will give the stock a boost the analyst pointing out the

doughnut make certificate a widely admired brand that can fully participate in the recession resistant $650 billion. and i love this term, kelly. you can read more about the initiation at cnbc.com/pro >> don't put it that starkly to me it makes me feel bad if i invest in it. ahead, bitcoin crashing and now climbing back dramatically to six week highs and tether is facing a criminal probe. a top investor about all of it next wall street expecting the ev maker to deliver record earnings we'll discuss that as "power lunch" continues

i'm 53, but in my mind i'm still 35. that's why i take osteo bi-flex to keep my moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper. osteo bi-flex. (sound of people returning to the workplace) (sound of a busy office) (phones ringing, people talking, meeting) the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. safely. securely. and responsibly.

so now, between all apart and all together, there's a bridge. cisco. the bridge to possible. ugh, these balls are moist. or is that the damp weight of self-awareness you now hold in your hand? yeah-h-h. (laugh) keep your downstairs dry with gold bond body powder.

all right, folks welcome back is the crypto rally a house of cards built on sand, or can it be trusted the price of bitcoin certainly had its fair share of volatility, up 14% in the last 24 hours to around 38,000.

down, though, 40% from its highs. and despite that drop still positive for the year. it's up by 33% from where it began the year volatility in the last several weeks has come as regulators and investors alike have questioned the trustworthiness of stable coins within the crypto space. how much can be trusted as these issues persist let's talk to block tower capital's general partner. mike, welcome. good to have you with us why the rally today? is it mostly short covering or what >> yeah, and thanks for having me, tyler. a lot of what we saw the last three days really is a good old-fashioned short squeeze. the market structure was set up in a way where there were $2.5 billion of shorts in the last month and a half and we saw a billion that have liquidated really when it comes to short-term trading even traditional markets when i was at goldman would have a violent move in equity and you would search for a narrative post

action and that's what we got here where it was a low liquidity period we had a strong buyer of call options come in friday evening that triggered a bridge into what was typically weaker weekend activity in the last few months and kind of bridged us to sunday it hit a few trigger points for short coverings and that's how we got to the level today. there's still a billion and a half of shorts to be liquidated. the narratives are the things that we discussed the last few days which are elon, amazon and pick your headline >> elon, meaning will tesla take bitcoin again as a form of payment for its cars what's the latest on that? and how much impact could that really have? i mean -- >> yeah. that is the much less relevant piece. it's about his company's holding bitcoin in the balance sheet, which is kind of a signaling to the rest of corporate america where he announced on wednesday

at a conference known as the b word conference, he and jack dorsey were on a panel today and he confirmed they hold bitcoin on its balance sheet tesla will consider re-engaging again with bitcoin i think it was a healthy exercise in getting the esg element involved it clears a lot of hurdles in the boards of large corporations that require that at least observation and path towards a solution to get their boards comfortable with investing in the space. elon has a bunch of different angles accepting bitcoin to buy a tesla i think is irrelevant to many things >> mike, i have to imagine that you're a bull on bitcoin in the long run, is that right? >> yeah. so, again, if you break it down short, medium and long term. you have market structures medium term you have to think about that as well as the long-term narrative. the reality is, jpmorgan and if you talk to any one of those banks they're doubling head

counts and tripling elsewhere. enterprises are adopting mastercard is doing a partnership to attract stable bitcoin payments there's a lot happening. the long-term prospects are still very strong. >> i ask the follow-on question about stable coins you just mentioned usdc so how do you think this all plays out? there's obviously, you could call it a systemic risk that stable coins present to the bitcoin market until people have greater clarity on how they're backed, what the fed is going to or not do about it, et cetera. so from where you sit, spin this forward, three, six months, whatever it is, how does the stable coin issue get resolved or does it >> so at current the good and the bad of it is no one regulatory authority, particularly in the u.s. wants to take ownership of the cryptocurrency space a lot of discussions china has been out with theirs within the u.s. no one authority wants to take ownership of the cryptocurrency space now that provides opportunity for those willing to interact

with the space but delays the time line of corporations getting deeper into the space and staying inside the sandbox tether has been around for years. it's always been a headline risk for years. they have been very actively transparent and open with authorities. whether or not that information they provide is enough, that's to be determined but i think the market is slowly shifting away from tether. if you look at tether in the last month they've gone completely flat line usdc is picking up a lot of slack. >> so here is my question. to your point, tether being replaced by usdc, it still doesn't necessarily resolve what could eventually become regulatory issues and the very fact the fed researchers working on this are writing the papers that they are, likening this to the wildcat banking era or whatever, tells you they basically are going to require some kind of action or they're going to wait and see what happens if bitcoin itself

collapses -- not collapses but falls sharply in price or there's some kind of problem with these stable coins losing value. you can pick your analogy. you can compare it to deposits pre-fdic don't up think there's going to be some kind of move to better define the rules around usage and calling something a stable coin >> yeah, there has to be, right? it was said stable coins are probably more viable than u.s. digital dollars right now. so i think the world is kind of aligning around that jpmorgan put out a good piece on stable coins this past friday. if there are major stable coin assets that depegged from their dollar peg, that could cause some cascading issues in areas where you have yield that have certain characteristics that do not perform well without pegs.

i would say transparency is key, and everyone is being more transparent. usdc, depending on the merger, there's a lot of, i think, transparency that will come to market even with tether they've now expressed and shown some of their reserves it's a fair amount of commercial paper. there's speculation around the quality of that commercial paper. i think it's always going to be an overlying risk. and the risk isn't so much the stable coins themselves. it's liquidity in the market it could create liquidity dynamics that cause quite a bit of volatility, but that's still a ways out and requires a lot more, i would say -- a lot more than headlines in the market to shake out. >> it's going to be very, very interesting if they let it run its course or try to get in ahead of time. mike, thanks for joining us today. >> thanks for having me. >> mike bucella of blocktower. up next, a big focus on tech earnings, top industrial names are reporting. they include general electric and 3m

our traders will break down what to expect and why caterpillar's earnings will be so crucial. plus, as we head to break, check out hasbro shares are surging on a strong earnings beat. ♪ 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. ♪ - [announcer] introducing the grubhub guarantee, our promise to deliver your order on time within the delivery window and for the lowest price compared to other apps or you'll get back at least $5 in perks. ♪♪ it was my dream to be an entrepreneur based upon the examples that i had growing up. and that was important for me because you can't be what you can't see. the ey entrepreneurs access network has a tremendous impact on my business

and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital.

welcome back to "power lunch. two industrial giants reporting before the bell tomorrow general electric and 3m. those two stocks moving in opposite directions over the past month 3m, though, outperforming and ge taking a breather after its red-hot rally. both earnings should provide some light on how these companies are coping with rising costs and the risk of inflation. to break it all down let's bring in the "trading nation" team john, ceos of both companies in prior earnings calls have talked about the risk of inflation, rising raw material costs, and with no certainty as to when an infrastructure deal would get past, what about owning these names? >> i think take a step back and we think industrials is a sector still attractive despite the run

that we've had the last nine months or so and of course ge is a fraction of what it used to be. these are still two great bellwethers. regardless of what your view is on either company you want to listen to the calls for the general overall environment to find out how the global economy is growing, where inflationary costs are at which is what you mentioned and, of course, what types of cash, what's the cash allocation that they're returning to shareholders in the form of buybacks and dividends which is a general theme those are three big themes that all stock investors should be looking for with these stocks. >> the turnaround story at ge has been watched closely on wall street 13 buys, no sell ratings what's your hot take >> our hot take, well, no strong view on how they're going to react post earnings here in general both stocks have been able to participate in this bull market that looks like it can continue, but we're just unsure if they

can be long-term outperformers and to make that case just look at the relative ratio of 3m divided by the s&p 500 it's fallen back below its 200-day average. that indicates to us it's not worth the stock level risk investors might as well buy the s&p 500. >> interesting chart ari and john, thank you. you can head to our website or follow us on twitter tyler, over to you seema, thank you very much up next, wall street expects a monster quarter from the electric carmaker tesla. can it deliver the dream quarter analysts are hoping for? we will take a look under the hood next.

that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run...

or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. find our coupons in sunday's paper.

welcome back shares of tesla are rising about 2.5% today ahead of second quarter results due out after the bell the automaker expected to record a record profit. the stock is higher ahead of results today but still down about 6% so far this year. for more on what investors should look for joining us is steve wesley, a former board member, founding and managing partner with the wesley group, and our own phil lebeau is with us here as well. phil, just to kick off this discussion, let's talk about how much of the profits are expected to come from credits and how much from actual vehicle production >> i haven't seen an exact breakdown but there is an expectation that you're going to see credits contributing to the profitability of tesla in the second quarter and, by the way, it is expected to turn a profit for an eighth straight quarter i think what people will be focused on will be the ought

p ou automotive and building the vehicles at a higher rate especially when you look at the model y as they ramp up production and deliveries of that vehicle especially in china. that's where you're seeing the growth of the model y right now. >> steve, on that note, so talk about the breakdown and the results and what you think is most important to investors and why you think the shares are lagging in the market this year. >> well, look, first, you have to be addressed with tesla's execution. look, record sales, 201,000 units, on track to do $52 billion in revenues. they're doing awfully darn well. will they maintain their profitability despite credits phasing out? the short answer, absolutely again, record sales combined with a big cost advantage because they're the first auto company to have battery production in house. the third thing that few people are talking about is like most

highest market cap companies in the world, tesla is promoting, and a leader at promoting, software as a service model. they're charging $10 a month for sirius xm radio, $199 a month for autonomous driving features. these are offerings almost 100% drops to the which drops to the bottom line that's why tesla is doing better than the others. now, can they keep this up we'll have to see. $634 billion is nosebleed high >> you know, steve and/or phil -- let me start with you, steve -- a lot of troubles that have voxed the auto industry trace back to shortage of silicon chips, but i can't imagine that there's an automobile that uses more chips probably than tesla. how have they been able, or have

they, been able to sidestep it >> tesla is being hit by shortages just like everyone else elon musk seize over the horizon a bit more than anyone anytime he sees a shortage,'s he did with the batteries four, five years ago, he takes it in-house he takes over control. by and large, he's done that successfully steve -- excuse me -- phil, do you have a viewpoint on the chips? >> no, i agree with steve. i also think that elon musk has alluded to the fact they were impacted to a certain extent by the chip shortage. will we get more clair, if this question comes up, how much of an impact did you see? what do you expect in the third and fourth quarter i think that's more what people want they want that glance larsity. i'm not sure they're going to

get it the conference calls have shifted a bit. it used to be much more open in terms of analysts being able to ask question now in the past couple quarters, they have done where they pick analyst question, and not as free form at it used to be i will be interested to see if that question comes up, though >> thanks, chip. [ laughter ] >> let's move to the big competition, steve, that's coming here. i assume in the passengers car market, it's tesla versus everybody, including everybody versus china, but maybe especially volkswagen, as phil has educated me. not chip >> there's too many things going on the headline here is there's a tidal wave the competition coming at tesla. it's hard to hold it forever the three things that will be fun to watch are, look, the last 40 years, the number one selling vehicle, year in, year out has been the ford 150.

a great vehicle. the challenges, even ford realizes, their market is going all-electric they're coming out with an e-150 lightning, and the question, will it do as well as the traditional ford tesla has come out with a crazy-looking cybertruck, and they already have thousands of order, and going right at that space. again, largest market cap companies in the world, each takes 10% or 15% away from ford, that spells problems for ford. the other smackdown that everybody should be looking at, is volkswagen's plus they have also taken battery production in-house. i've heard that vw's exec is one

of the most visionnary in the country. and then the third, maybe most important part is china. >> all right okay, we have to -- >> they're coming on strong now. we have to leave it there, alas thank you both up next, with growing pressure, oil giants are divesting assets how are they doing it? and are investors buying into it we'll explore that and more, we'll explore that and more, when we come back.

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. ♪ ♪ ♪ 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. new projects means new project magers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

oil and gas companies are shedding dirtier et ier assets,h is buying them kristina partsinevelos is here with more. >> it does, like i said, have major oil and gas companies shedding dirt ye assets. the current value rate across the industry stands at more than $140 billion mobile, chevron in the u.s., as well as others have sold more than $28 billion in assets since 2018 there's over $30 billion in the pipeline, and there's one trend that seems to be hitting north america. i think one thing over the last probably since 2019, is there's

less of a focus on acquiring assets, acquiring acreage and much more of a focus on corporate consolidation. >> well, despite future consolidation, there are buyers out there, like smaller, independent operators, or state-owned corporations, but the sale of these dirty assets may not do anything to help the environment. >> if the company does sell its assets to another company, that may have no impact in terms of the emission that results. >> that's because they're transferring hands, they face much less scrutiny from regulators which not under the microscope they could squeeze out as as much as production as possible, especially with crude prices on high that may not be a good thing for the reduction in emissions back to you, kelly. >> i think this goes back to what we were talking about last week, ty, when, what is the

goal is it your goal to be in compliance, or is it the goal we want to see emissions reduction. >> this sounds like, kristina, a bit of moving an asset from one pocket to another and not effecting much change. it buffs up your assets, but to your point, the emissions could not go down. >> everyone is trying to capitalize on the higher crude prices, so that's one issue. the other thing you could see is recon figuring themselves to become biorefineries so, biofeel, you know, to appease the green technology and green push like that man in the story spoke about, consolidation, because people want -- investors want to see stronger balance sheets across the board, especially 5,

10 years from now. >> it's a great issue, as more and more people are focused on it, are we actually achieving the goals? talking about that carbon program. kristina, thanks. "closing bell" is going to start right about now. see you tomorrow. thank you, kelly and tyler welcome to "closing bell." i'm sara eisen could be another record-breaking for stocks any gain will be a record close. >> and i'm carl quintanilla in for wilfred frost. >> housing stocks under pressure at june new home sales miss expectations and come in at the lowest monthly level since april of 2020. and tesla, we'll get earnings from that company after the bell. >>