exchange." carrie, what do you have for me? >> to fortive industrial tech breaking out here. >> boeing certification flights in china >> steve weiss >> moderna of course >> of course joe t. >> best buy. >> all right good stuff thanks very much for watching. that does it for us. we'll give it to "the exchange" now. thank you very much, scott and hi, everybody. welcome to "the exchange." and here's what's ahead this hour an exclusive interview with dallas fed president robert kaplan we'll speak to him about today's softer than expected cpi report. does it change his mind about the need to take sooner rather than later his thoughts plus we'll have instant reaction and it's not just home buying that's hot right now there are bidding wars for rentals. we'll bring you the sky-high numbers. plus coinbase, cathay and china. we're serving up all those in rapid-fire but first the markets this hour. record highs i think dom chu has the numbers. >> they are on fire.

rapid-fire, those topics the markets are on fire right now. it's not a massive amount to the upside but as kelly pointed out we still do have gold stars for the dow industrials and the s&p 500. both of those stocks are near their highs of the session with the dow and the s&p again hitting records. underperformance in the nasdaq overall. the nasdaq is right now hovering right around some key support levels as some traders are watching to see if there could be a further possible breakdown in that big and powerful nasdaq trade that we've seen over the last year. with regard to a key part of the markets right now kelly mentioned dallas fed president robert kaplan. irpt rates still a very key focus here ten-year note yields, by the way, have risen for seven straight days. that's seven straight days of selling pressure on the ten-year governor note. financial sector spider hits a record high. morgan stanley and goldman sachs record highs a lot of green on the screen with regard to the financials. keep an eye on record highs in that sector. and then if you take a look at other parts of the market, the consumer, with regard to target,

steel with regard to nucor martin marietta, construction aggregates in concrete, gravel, that kind of thing, avp of these stocks has hit record highs in trading so far today target, costco, dollar general among the consumer names showing some real relative strength. we'll see if it cools off anytime soon but for right now tons of upside momentum in those parts of the market >> impressive year to date gains. dom, thank you very much this morning cpi data suggested that maybe inflation has peaked. it's not gone but it's not rising as quickly this month either so what does it all mean for the fed and especially for members calling for an earlier tapering? let's ask one. here now for an exclusive interview, steve liesman is joined by dallas fed president robert kaplan. a pleasure to have you both here steve? >> kelly, thank you very much. and robert kaplan, dallas fed president, thanks for joining us i think the best thing to do is start exactly where kelly instructed us to begin it's best not to get on her

cross side there let me ask you about the inflation report this morning. did you see moderation in it does it support the notion of inflation being transitory or do you see more persistence in the number z >> the outlook, the cpi number today was probably consistent with our outlook, which we're still expecting year-end pce to be in the year about 3.8%. we're expecting some of these extreme moves, used cars, other items, to moderate but we're still expecting a broad mean of inflation pressures heading into next year and our forecast for pce inflation next year is in the neighborhood of 2 1/2% so i think this report's basically consistent with that outlook. >> is that too high? are you willing to abide 2 1/2% inflation? >> the issue is if we have an

extended period of time, this is my view, whereyou're running 2 1/2% or a little above, our job at the fed is to anchor inflation at 2%. and so i think we're going to have to be attentive to whether we see prospects that this excess over 2% is going to run for some time but moderate back down to 2 or whether this is going to be more persistent. and at this point i don't know the answer to that and i think we have to have a balanced approach and be prepared to react, depending on how this unfolds. >> robert, the strong jobs report in july -- for july means we did about 2 million jobs over the past two months. it seems like that part of the mandate is going okay. i want to turn now to your views on asset purchases and policy more broadly last time you spoke publicly you said you were in favor of

tapering soon and sooner rather than later are you ready at this point? do you have in your mind a timetable for that tapering? >> it would be my view that if the economy unfolds between now and our september meeting if it unfolds the way i expect i would be in favor of announcing a plan at the september meeting and beginning tapering in october. >> that's pretty aggressive. would you say that's -- you have a lot of support on the board, or the committee for that kind of idea or is that just you, i don't know, from the lone star state? >> i would say there's a range of views and the main thing i'm emphasized, whether we announce it in september or whether we announce it november 1st, i think there's a range of views i just think the committee's in a much better place than we were

two months ago and that we'll debate, we'll disagree, we'll have to see how the economy untold but the reason i'm saying we ought to begin the tapering soon is i think these purchases are very well equipped to stimulate demand but we don't have a demand problem in the economy we've got plenty of demand our issue is supply. and these purchases are not very well equipped to deal with that issue. they were appropriate in 2020. they were appropriate in early 2021 so my thought is i'd rather take the foot off the accelerator soon and reduce the rpms and as we're on more level terrain and i think it will give us more flexibility down the road to have patience on the fed funds rate but what i don't want to do is keep running at this speed for too long and then we're going to have to take more aggressive action down the road so i'd rather begin this process soon and i would like to taper

once we start gradually. and for me gradual means over approximately eight months >> over approximately eight months it's kelly here, and i appreciate you letting me jump in i actually have so many questions, as steve probably can imagine after hearing your comments here for the last few moments. i suppose then the main one i actually wanted to ask you right now is about bond yields, president kaplan so why do you think they're down at 1.35% do you think they hold any economic information at this point? are they being distorted by the fed itself you know, i hear everything that you're saying, and it all makes sense to me. except that. and the people who are now arguing that inflation has peaked are saying bond yields, knew this months ago, they've already figured it out >> i do think the bond market is looking through these high inflation prints and they're expecting the fed to do what it needs to do to anchor inflation at 2%. in addition, there is an enormous amount of liquidity

globally and in the united states we're an aging society there's an enormous amount of money in pension funds, and there's a very strong bid for the 10-year treasury and in addition, after we get over the horizon from this rebound from the pandemic, workforce growth is decelerating in the united states due to aging. productivity doesn't appear to be strong enough to offset it. and if that's true, out year growth looks sluggish, not just in the united states but globally and so i think all those factors are feeding into where you see the 10-year treasury >> president kaplan, i want to continue the discussion on monetary policy, which is really related to what kelly was talking about. you began and made a couple comments there about interest rates. can you walk us through the sequencing in your mind? you talked about an eight-month taper. i didn't do the math, but i think if i add two months and six months it brings me to june.

i just did that live on national television are you thinking that interest rate hikes begin immediately thereafter >> so i am explicitly saying, and i've been saying publicly, i am divorcing my decision-making on adjusting purchases for my views on the fed funds rate. and so i don't want to tie them together there's different metrics and a different set of criteria i'll look at in deciding whether or not to raise the fed funds rate. what i'm saying is these purchases are not well suited to the environment we're in now and like a doctor who's prescribing medication to a patient that's been through a trauma, if you start to see side effects and you don't think the medication is very effective and the side effects i'm talking about, excess risk taking, elevated home prices, excesses and imbalances in the economy, i think the best thing to do is

early begin weaning off that medication and i think by doing that we actually may be able to be more patient down the road on the fed funds rate but i do not want to tie the two together it is not the primary factor that i'm thinking about in calling for adjusting purchases soon >> i get that, president kaplan. but one of the distinguishing features of your background being on the committee is that you were an investor and on wall street for a while and know a little bit about this and how some of your former brethren on the street think and they're going to think, hey, kaplan wants to -- wants to get rid of the asset purchases and that clears the way for raising interest rates maybe tell us what your criteria are for raising rates and whether or not that's something you think would happen in 2022 or 2023. thank you. >> so as a former observer of the fed, i think -- and a market

participant myself for a long time, if the fed says that these are two different decision criteria as a market participant i would listen to that and i do believe that. and so that's why i'm saying it. as you know, in my s.e.p. submissions, summer economic projections in june, my first rate increase is in 2022 but that's not a decision i'm making right now that's just a forecast i'll make that decision as the economy evolves into 2022. i am saying there's a near-term decision and i think the sooner we make that decision, i believe we're going to have more flexibility if necessary to be patient on the fed funds rate. and yeah, i think as a market participant i think that logic is worth listening to. >> president kaplan, it's kelly here just one more to kind of dig into your explanation of why we don't need to continue the pace of asset purchases in other words, if you say we

have a supply, not a demand issue in the economy, can you explain how the labor force supply ties into that? so if we have people who left the labor force for early retirements because they have work from home flexibility, maybe they want to live somewhere differently, lower cost of living, only one person has to work and so forth, can you tell us what you're seeing in terms of those quote unquote dropouts and how that affects the supply side and overall the sort of fundamental strength of the economy? >> so there's two types of supply issues. one is materials, semiconductors, a broad range of supply-demand issues for materials. and the delta variant may actually make those more prolonged. because they affect the ability to produce and to produce globally and you know, i think what i -- what contacts are telling me is semiconductor shortages, for example, are likely in their view to persist longer than people might be expecting and

the demand for semiconductors is increasing while the industry is trying to increase supply. so one person described it as trying to go up a down escalator. we're trying to increase production as fast as we can but demand is also increasing. so that's one set of issues. the second set of issues is labor. and as you pointed out, we think at the dallas fed there's been approximately 3 million retirements since february of 2020 many of those people may not come back into the labor force and there's been a million and a quarter to a million and a half people who are caregivers, mainly working mothers, who have left the workforce i'm hopeful that with expanded daycare, schools reopening in person, some percentage of them will come back but the point is the labor force is tighter than the headline statistics indicate. the number of job openings in the united states is at a record quit rate is historically high so all that tells me these supply-demand imbalances are

likely to go on for an extended period of time but they don't have to do with demand they have to do with -- they're going to create supply issues. so these purchases are not terribly well equipped to deal with those issues. i think it would be healthy for us to recognize that >> president kaplan, to an extraordinary degree, and i've been covering the fed for a very longtime, chair powell and other members of the committee such as yourself have talked a lot about how the importance of what the fed does for average americans. but today the government reported real earnings when it reports cpi and inflation. it says how much wage gains have been deflated by inflation that's out there and their negative now for i believe the fourth straight month. how does the fed step up and argue that it's now doing right by average americans and average american workers when in fact the inflation that it's abiding is eroding wage gains? >> yeah, so i spent a lot of

time, as you know, in low, moderate-income xlcommunities in my district, and what i see time and time again in my conversations, people in those communities are reminding me, our mandate is full employment but it's also price stability and the share of wallet as you just pointed out that low, moderate-income communities are spending on gasoline, cars, other items is -- it is creating challenges for them to make ends meet this is again back to our purchases, this is one of the reasons why i would prefer from a risk management point of view to ease off the accelerator and reduce the rpms on what we're doing because i think these imbalances, we're going to have to be patient and allow them to unfold but i think anchoring inflation at 2%, i take that very seriously. it's a critical part of our

mandate. inclusive growth, inclusive prosperity is not just jobs. it's also price stability. >> and we'll leave it there. president kaplan, thank you so much for all of your thoughts on this today it's great to have you with us and steve, we really appreciate you for bringing us the interview, doing a great job with it. our steve liesman. we've seen some big moves in bond yields now. yes, it was during the course of that discussion, but we've also had a super strong auction for 10-year treasuries let's get right over to rick santelli with a little bit more on what just happened here rick >> you know, i tell you what, kelly, i've been dabbling in markets or trading in markets or covering markets since 1979 and i don't know if i've ever seen an auction this aggressive it really was spectacular. 41 million 10-year notes the auction yield was 1.34 three basis point lower than the one issued the market was trading.

lower yields, higher price and it was an awfully high price. the metrics are historic the bid to cover at 2.65, the best since may of 2020 77.$77.2 on indirects indirect are those foreign investors we pay so much attention to that's the highest ever. the highest ever and if we look at directs, it was the only thing that was a bit light. it was a bit under the 10 auction average at 13.1. but remember who this group is this is mutual funds, big institutions that have belly fulls of treasuries that can dabble in the secondary market and finally, maybe the best. think about a big buffet because there was nothing left after this auction the dealers only took 9.6% having a single digit on dealer participation is unheard of. a spectacular a-plus on this auction. tomorrow we complete it with 27

billion 30-year bonds. kelly? >> rick, i've got to just ask you one follow-up question on this with all the superlatives you mentioned why are we sitting here in mid august all of a sudden people going after these 10-year treasury notes what accounts for this dramatic response today >> well, i can only think of my very good friend dom chu in the very beginning of thi segment he said seven sessions in a row where there's been selling pushing up yields, obviously investors and maybe especially foreign investors think, well, we've sold off, we pushed rates up, this is a great place to buy in. and maybe they're right. but my charts say maybe they should have studied a little harder >> all right, rick, thank you very much. rick santelli with the latest auction results there. as we mentioned, we're seeing yields slide on the back of that strong demand and those results. going to take a quick break but we're going to get more reaction right after this to what we just heard from the fed's robert kaplan we're keeping an eye on markets, hanging on to record high

trading here we'll talk about the latest inflation data kaplan's belief about what the fed should do here and one of my next guests, who says they should move to early next year. we're always watching shares of tled up turning lower, down 3% after beating estimates on its second quarter results, giving an upbeat forecast and we're going to havethe ceo here to talk exclusively about the quarter, their path to profitability and the impact of covid. look forward to that a little later this hour. we're back in a moment 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. this may look like a regular movie night. but if you're a kid with diabetes, it's more. it's the simple act of enjoying time with friends, knowing you understand your glucose levels. ♪♪

and there you have it- woah. wireless on the most reliable network nationwide. wow. -big deal! ...we get unlimited for just 30 bucks. sweet, i get that too and mine has 5g included. that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it.

that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. welcome back there's been a lot of noise about an early taper with morgan stanley the latest to move up their time frame we just spoke to dallas fed president robert kaplan. so what is he signaling, especially on the heels of this morning's softer than expected inflation report joining me now michael schumacher is heaved strategy at -- and the one thing you both agree on is kind of the opposite of what kaplan was just saying. he still thinks we should do an early taper. both of you seem to think not so fast michael i'll start with you. you say ignore the chorus and wait for the lead singer meaning let's wait to see what powell has to say, right? >> that's right, kelly and jay powell so far has been batting away questions about tapering right and left. any press conference he just

swats them away. and if you think about it from his perspective, what does he really care about? he cares about the labor market, which is doing better. but he's not going to really know a lot about it until september. so next month people go back to school, we'll know more about the status of the labor market with respect to unemployment benefits rolling off those data come out in october so we think it's probably too soon by at least a couple of months for jay powell to get excited about tapering >> you think, brian, that the reason will become less pressing because inflation to you has peaked you're looking at used car prices you're seeing things roll over there. right? >> last week i wrote that this edition of the reflation trade is likely over it's stretched most people are looking for higher prices. i noted that wholesale used car prices are going down. the cpi, used car component lags that by two to four months today we saw the cpi for used cars go from 10% to 0.2. that's pretty much in line with what i was expecting which means that i think next month we get a negative number for the cpi of used cars

additionally, oil prices are very vulnerable. if you look at the oil price curve, it inverted in the middle of the curve from 24 to 25 that tells me there's a greater risk of oil prices coming down than going up. >> if we're rolling over on the inflation picture bond yields probably heading he loer, stock prices higher. he with talked quite i afew times about that michael, is that your view as well i was just saying to rick where is all this buying demand coming from he says it's everywhere basically. you know, there's such demand. robert kaplan i think said the same kind of thing, that there's huge demand for -- there's a lot of liquidity, there's a lot of demand for treasuries. and if michael's right there's not going to be a big concern about inflation and the trade-off in holding some of this paper for the next little while. >> yeah, it's probably a little bit too soon to say the inflation dragson dead we say peak inflation has probably arrived in the past i agree with that. my friends in wells fargo economics do a lot of great work and they make the case core inflation is still going to be very high through balance of not

just this year but the but next year the initial flation backdrop's improving but it's not great the question of why people are buying treasuries i think rick had it right, market's backed up six, seven sessions in a row inflation does look like the peak has passed. maybe a decent time to get in. but for a fundamental buyer for most of your viewers, kelly, i'd say wait, take it easy, take a deep breath, not quite time to get in >> and brian, what would you tell investors in terms of bond yields and stock prices for the next move of this market >> i donate think i've ever seen rick santelli so excited over a 10-year auction as he was just a few minutes ago the in segment before us. that points out how much underlying demand there is for bonds, from pension funds and insurance companies. if yields go up a little, they jump on them and they buy them more importantly, from big picture perspective that means next month when the credit market opens up after labor day, is there going to be a surge in corporate bond activity that's going to lead to a flood of buybacks and mergers the investment banks can't hire

enough junior bankers to keep up with these deals, and they're likely going to accelerate >> that's a great point. and we've seen those pay curves moving up for the young bankers. the way you describe it it all kind of makes sense. supportive of equities here as well as we have another day at record highs brian, again, you were early on this last week he with appreciate you joining us brian reynolds michael schumacher, we appreciate it as well talking through the actual timeline taper we should be expecting we'll leave it there, guys thank you. we'll check in soon. coming up next could we see the first monthly drop for residential reits as the fed's ethel george says froth in the housing market is starting to back off at the same time bidding wars for housing rentals are starting to pick up what will it all mean for the reits? we'll explain. ayitusst wh ♪♪ 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. do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel

or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance. ♪all by yourself.♪ you look a little lost. i can't find my hotel. oh. oh! ♪♪ this is not normal. no. ♪♪ so?

♪♪ right? go with us and find millions of flexible options, all in our app. expedia. it matters who you travel with. welcome back to "the exchange." i'm rahel solomon. here's your cnbc update at this hour the ncaa slapping baylor university with a four-year probation and other sanction ppz this follows a yearslong investigation into a sexual assault scandal that led to the firing of the school's football coach and others the probe found that baylor shielded football players from discipline for sexual violence but that baylor's failings did not violate ncaa rules the probation is related to recruiting and other violations. a federal judge has ordered donald trump's accounting firm to turn over some financial

records of the former president to a house panel although the judge is not ordering that all requests documents be released. in california the dixie fire continuing to grow after destroying nearly 550 homes. the largest fire in state history has now destroyed more than half a million acres. however, containment has risen to 30% and on the news, firefighters making progress against the massive fire just as heat and higher winds return that's tonight at 7:00 p.m. eastern. kelly, i'll send it back to you. >> rahel solomon up next, we have rapid fire. where's the volatility what does it mean to be the amazon of assets and people are apparently sick of slimming down did you see weight watchers stock today? 'lte ybowel llou aut all of this right after the break.

- [narrator] at southern new hampshire university, 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.

welcome back, everybody. it's time for rapid-fire and here to discuss a few more stories that should be on your radar cnbc's michael sanity oli, deirdre gosa along with michael yash kammi, ceo of destination wealth management. welcome. and let's begin with this saying, michael santoli, in the market dmefr shorpt a dull market the low volatility etf the usmv hitting an all-time high today along with the broader markets

don't be fooled with the wild swings in stocks like gamestop and amc. they are not indicative. you look at this low volatility chart it's probably about a 30 degree angle, just smooth and seady as she goes. and while we're all over here talking about 30% swings in the meme stocks, the overall market is just steady as she goes >> the tortoise strategy is work while it's aat an all-time high, the low volatility etf is still lagging both the overall s&p 500 year to date as well as the high b beta, the more volatile spicier type stocks. but to your point a lot of the more aggressive parts of the market have been pushed aside if you look at like you say-stop, amc not being the place to be. even things like solar stocks. yes, this is kind of a sleep at night stable type quality skew toward equity ownership. >> michael yoshikami this tells me also there's a market for everybody. if you have clients who want the excitement, you know, and thing big moves of swinging stocks that's fine. and if you want something that

you can kind of sleep on at night, well, there's that too. >> yeah, exactly and you know, our clients are into the sleep at night sort of scenario the huge swings are great for traders. for investors, buy good companies, good cash flow, good solid earnings maybe some dividends low volatility in the long term. the magic compounding is just a killer when it comes to increasing your net worth. >> look anames like norton there's the list home depot i'm sure these are all style factors. they come in and out but again, this is the other story of the market that you're not hearing quite so much about. let's move on to something thatg volumes of ethereum have surpassed coinbase's platform. coinbase still seeing elevated trading platforms. the ceo declaring on the call he

wants coinbase to become the, quote, amazon of assets. which is weird because amazon sells everything and part of coinbase's whole thing was that they wouldn't sell just everything in crypto space even the fact they added doge coin has upset people who think it has no business being on a platform like coinbase >> yeah, and what did he add, 22 different digital currencies in the second quarter, which is more than they added over all of 2020 so it is kind of a curious statement because coinbase has really built itself and its reputation on, to use a phrase, that the others just use, being the tortoise of the crypto world, moving slowly and a little bit more carefully. but maybe there's a bit of fomo here and brian armstrong wants to engage in all of that upside and all that volatility that comes along with currencies like dogecoin you have to wonder, though, that its competitors like a falcon x and a binance they're starting to get more in the regulatory line and compliancn as a streng.

we'll see how this shapes up >> mike santoli, what's the read these days from crypto back to the traditional markets, things like gold, inflation where does it fit in your dashboard? >> it is interesting because it doesn't really seem to track with day-to-daymacro type inputs or even necessarily act in concert with inflationary expectations it to me is a risk asset, and it behaves largely like a risk asset. it traded very closely with some of the more speculative parts of the market i'm on board with the idea that it's electronic gold, digital gold but gold also, by the way, was always a little bit of a side sort of orphaned asset class for 100 years after you were able to trade it i don't think that means it gets to the core of the markets if in fact you think that's what it is >> yeah, well said as everybody's concerned about whether it's the new gold, gold itself hasn't always been that exciting or even performed that well as we remember from years during the last expansion speaking about performing well, kathy woods is not completely

done with china but he had still has plenty of concerns in a cannot presentation she said the valuation of chinese companies may still not have found a bottom the championa etf is still down 50% from riechts highs wood dumped nearly all her exposure as that index is down about 3% this year michael yoshikami kathy was saying she's still open to ideas emanating from china but i was suprised that she's not yet buying the dip so to speak >> i think it's way too early to buy dips, kelly. i think at this point it's really a huge unknown what the chinese government's going to do look what they did to the education industry people are talking a lot about tech the education industry in china, which is a billion-dollar industry, was just crushed when the government basically changed all the rules. so you really don't know what curveball is coming. so in my perspective it's not time to buy the dips it's time to watch, certainly be open like cathie says, but be very, very careful because there's regulation coming out of nowhere that could completely

submarine any business you invested in china. >> people's heads are still reeling, deirdre i'll give you the last word on this >> there's another very famous investor masiyoshi san who earlier this week said he's in wait and see mode. he has tons of investments in china alibaba being the biggest one. he's putting those plans on pause but like cathiewood he believes inthat long-term innovation story but she's not the only one and i'm with michael in that there's still a lot to be seen here. >> all right finally, it's the stock story of the day perhaps. formerly known as weight watchers, ww international posting a smaller than expected quarterly report, and its shares have gone about 25%. they were shy on both the top and bottom line in their earnings the ceo minnie grossman says research shows customers are looking to enjoy social reconnection again instead of recommitting to weight loss and wellness, implying everyone's going out as opposed to focusing on weight loss michael santoli, what have we concluded from the pandemic, though some people lost weight.

some people gained weight. we were talking about this as it relates to krispy kreme. do you think -- i guess what i'm trying to say is is this just a convenient source of blame for her or do you think that that macro trend is overarchingly true about the reopenings and people's weight loss strategies? >> i think it's tough to generalize you couldn't actually get a peloton bike for a period during the pan demdemic. i do think there's a risk or maybe the market is determining this or guessing that it's out of step with the mode of wellness and fitness and weight loss of the moment in my memory weight watchers has really had to surf from different approaches based on what is perceived to resonate. you go from points to all the packaged foods to a dictated menu and then it was just the fitness trackers i mean, all of it. the basics of it is we know basically what has to be done. it's about what tricks seemed like they work right now for the current generation and this might be a little bit of a mismatch.

>> mike yoshikami i'll give you the final word the stock's down 40% from the highs p whether it's that or peloton or anything else you put in the wellness basket what would you have people do with them at this point >> i think mike had it absolutely right how is peloton in demand but weight watchers is not so if weight watchers can't figure out what peloton is doing, i think that's really the challenge. i think it's a convenient target to say that everybody wants krispy kreme and various other whatever food is out there, but i think really it comes down to execution for the company. i wouldn't really say that this is a company that is necessarily capturing really the change in what's happening in the world right now. and that's the adjustment they need to make and that's why i think investors are punishing the stock. >> sounds like you need to teach a class on the peloton app that's my conclusion from this discussion today thank you, everybody we appreciate r. appreciate it michael yoshika plchlt i, deirdre bosa and i can moo'll santoli for rapid-fire still ahead lordstown motor will

report after the bell. and after its recent stock drop can the company survive? shar a dn 1/esreow6 2% we're back in a moment rience the 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 at your lexus dealer. this isn't just a walk up the stairs. when you have an irregular heartbeat, it's more. it's dignity. the freedom to go where you want, knowing your doctor can watch over your heart. ♪♪ i'm evie's best camper badge. but even i'm not as memorable as eating turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

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. you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq

welcome back shares of lordstown motors have lost 80% of their value in just six months when the company reports results this afternoon investors won't be too focused on profits or revenues, it'srept matter, buhis case nobody's really focused on the numbers. what they're focused on are three things that really do lead to the question of whether or not lordstown motors can survive. first of all, what's happening in terms of its liquidity and its seeking capital. remember, it was back in may when they said we need either capital or strategic investors since then it's been crickets. very little from the company production update.

where are they in terms of actually getting to production when it comes to the endurance pickup truck and then finally what's happening with the ceo search? they have not named a ceo since steve burns was booted out of there or he resigned after the company said that he was not completely straightforward in terms of reporting orders for the endurance pickup truck which then raises the question when you take a look at shares of lordstown motors, what will people be wanting to hear during the conference call today? and the big thing they're going to be focused on is what exactly is happening with the doj investigation? do i expect them to give a detailed answer? no they may very well just say look, we're notgoing to commen on an ongoing investigation. but anything they say about this, that will be moving the stock. and then with regards to the endurance pickup truck rolled tf a prototype. and they said this is going to be coming to market before the end of the year. then they said we need some capital in order to even build it they're supposed to start

production this fall what's going on with orders? do they have any true commitments or do they still have expressions of interest so just a handful of questions big questions that need to be answered for investors to say i think there's a chance this company survives >> what's the scuttlebutt in the industry how are they viewed by -- there are so many competitors and obviously you will at the legacy companies themselves are trying to pull off this transition. what impression do you get are people just watching, like basically to see if they can pull it off? >> i think they're watching and i think there's a lot of skepticism they'll pull it off and that's reflected in the market right now investors are skeptical they can pull it off. look, it's tough enough even if you are well capitalized to make it in the auto industry. if you're not well capitalized, if you're trying to come out with a brand new product, what kind of confidence can you expect customers to have seriously. let's say you run a construction company. would you want to buy this truck, not knowing how is it going to be serviced, will this

company be around in a couple of years? these are all the questions that you would be asking yourself before you say sure, i'll commit to buying five or ten of these trucks >> it's a great point. especially with an audience like that which is so much of the market for trucks phil, we appreciate it it's great to see you here >> great to be here. >> and we look forward to those results after the bell today again, lordstown down about 6% in the session shares of thredup have also turned lower after their results bottom line met expectations but revenue in the key consignment business came up short the ceo joins us next. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities on america's largest, fastest,

and most reliable 5g network. plus customer experience that finds solutions in the moment. and first-class benefits, like 5g with every plan. network, support and value-- without any tradeoffs. that's t-mobile for business. ♪ you probably think visa is a credit card company, huh? ♪ but it's actually a network. ♪ connecting just about everyone to just about everyone else. ♪ it can open eyes with a cup of coffee and change minds on what makes a business, a business. and it is working to connect everyone, everywhere. so, meet visa. a network working for everyone. ♪

and there you have it- a netwoah.working for everyone. wireless on the most reliable network nationwide. wow. -big deal! ...we get unlimited for just 30 bucks. sweet, i get that too and mine has 5g included.

that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. >> welcome back shares of thred up have been moving lower, down 3% right now despite delivering a relatively positive second quarter. revenue up year on year. gross margins expanded by four points to 74 percent, even issued upbeat guidance courtney reagan joins us with james reinhart courtney >> thank you very much james, thank you for being here with us. kelly ran through the quarter. analysts pretty positive for the most part.

the delta variant is really throwing a wrench in so many different things are you seeing a change in behavior in either your consumer or your business clients as a result >> courtney, we had a very strong quarter and guidance for q3 the delta variant is one of those things that we're keeping an eye on. nothing, so far, has impacted the business certainly we want to be prepared, should it affect our operations or our consumers. we're keeping a close eye on it. >> processing time is the one part of the report this quarter that a lot of analysts are fixated on in 2020, it was taking 20 weeks to process those bags that get sent in with the clothes that consumers want to resell you brought it down to 12 weeks, but then that's up from eight weeks. what's the long-term plan? it doesn't seem like you'll hit that two to three-week processing time by the end of

the year aren't you missing out on some selling opportunities if you can't get the inventory processed and online >> yeah. courtney, processing capacity is way up processing hours are way up. we're putting more items on line than ever before at the same time we really struck a nerve with the american consumer we're getting more supply. we're getting more bags than ever most of the analysts noted this is a high-class problem. we have tremendous interest in our cleanout service it's incumbent on us to continue to invest in the business and meet that demand we feel very good about the fact that we have never spent any money aacquiring seller and have this tremendous supply opportunity. on one hand you're right, and on the other hand, i think it gives us a lot of confidence in our future and our ability to deliver on our guidance. >> james, it's kelly here. i've dabbled in these different platforms. yo yours, poshmark, the real reel

it's much easier to throw things in a bag and off they go you don't get a lot for it what would you say to people like me who have dabbled with these platforms and go, you know, i'm not sure if a couple bucks here and there are worth my time especially if you have to wait a long time where have you to get that. do you think you're getting to the point where you could give people more in the future or is it like the reality, like cars once you drive it off the lot it loses 40% of its value >> yeah. there are definitely brands, you know, we pay a lot for luxury brands, we pay as much as 80% of those items for lower-priced brands we pay less i really do think it's ultimately about what is the residual value, what is the brand equity that remains? and so what we really try to do

is give people a fair price. as you mentioned, it's all about the convenience. the reason why we've created this incredible supply advantage is because it is so darn easy. people love it they keep coming back. we want to balance the payouts with the convenience the american consumer really values that convenience opportunity. >> james, you recently put out a report commissioned by thred up, talking about the retail market saying it's grown 11 times faster than regular apparel, could be worth $77 billion by 2025 you've had three silos going right now, your main business of resale you just acquired remix to get you into the european market but you also offer retail as a service. what is the biggest growth opportunity, if i want to be an investor in your company, you're only two quarters into a public company. what should i be paying attention to for growth? >> yeah. we've been busy. you know, the bread and butter today is our core marketplace.

we provide great services to our sellers and incredible shopping experience for our buyers. and what you see with our rasp, business resale for service, four new clients this past quarter, fabletics and others that have for us it will be a bigger part of what we do in the future and certainly europe say big market. global data estimated that market to be 20 billion, growing to 40 billion the next few years. i think what you'll find as an investor in our company is there's a great core engine. then we have these additional vectors for growth that i think will compound the opportunity for thred up overtime in what will be a very big market the next five, seven, ten years. >> all right thank you both courtney reagan, along with

thredup ceo. really appreciate it. housing boom isn't raising houses for home buyers but good luck trying to find a rental these days ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia. it matters who you travel with. that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything.

like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum! new customers get our best deals on all smartphones. that's right. but what if i'm already a customer? oh, no problem. hey, cam...? ah, same deal! yeah, it's kind of our thing. huh, that's a great deal... what if i'm new to at&t? cam, can you...? hey...but what about for existing customers? same deal (breathless) it's the same deal is he ok? it's not complicated. with at&t, everyone can ace back to school with our best deals on every smartphone - like the samsung galaxy s21 5g for free. millions of vulnerable americans struggle to get reliable transportation to their medical appointments. that's why i started medhaul.

citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community. for the love of progress. citi. we heard a lot about people

leaving cities during the pandemic, driving up prices for homes across the suburbs with so many people buying, you might think rental prices would be dropping, but you would be wrong. diana olick has the story of sky rocketing rentals for us diana? >> reporter: you can thank the recovering economy and housing shortage land landlords are seeing bidding wars and dollar signs normally reserved for home buyers. >> we've been leasing property for almost 20 years and haven't seen an applicant pool this competitive since we started. >> reporter: just a week ago vipin motwani put this on the house and had 20 offers. rents for single-family homes in may jumped 6.6% year over year that's nearly four times the

annual increase seen in may of last year. all real estate is local in the first half of this year, new york city saw its rent applications double, compared with 2020. san francisco saw a 79% increase, seattle, 55% jump. all that, according to rent cafe meanwhile, boston saw only a 5% gain charlotte up 8% and portland, oregon, up 9%. >> the rental papplications we'e getting right now, you're seeing higher credit scores, applicants willing to put down more in terms of security deposit. you're seeing strong rental history as well. that wasn't necessarily the case precovid. >> reporter: and the demand is so strong, motwani says, because he's seeing renters who were trying to buy homes and were priced out and decide d to rent instead. >> diana