stance today >> spruce point also says sunopta is going to vie it w. it for oat milk creation. i think oatly shares were down on that last week. >> yeah, that's right. and oatly's ceo today underscored that oatly is still the exclusive partner for starbucks. i think that other company was just making up for some of the shortfall in the period there but that moving ahead they are the exclusive partner once again for starbucks. >> i think it was sunopta. kate rogers. that does it for "the exchange," everybody. but "power lunch" starts right now. and kelly, thank you very much welcome, everybody, to "power lunch. here's what's ahead this hour. a september to remember. the fed may be moving up its taper timeline possibly to next month. can the central bank avoid a taper tantrum? and which stocks could benefit from this major market shift and inflation nation we kick off a week-long series looking at how different sectors

are handling rising prices. today consumer staples and the names that can best withstand this growing pressure. and get back to the office that's the advice from former banker bill cohen. he says the future of wall street may depend on it. we'll speak with him later this hour kelly? >> all right, tyler, thanks. let's get right to the markets, though the dow, the s&p and the nasdaq are all seeing small sidelines dow and s&p just a few points from seeing positive territory the nasdaq well off the lows, down 67. and we see the 10-year yield as well, dipping as we talk about the fed maybe moving up its timeline for the taper more on that in just a moment. we're under 1 1/4% right now those concerns about the fed are also sending the price of crude lower. pressuring energy stocks like exxon, chevron and ox dental petroleum and in fact our top story this hour is about the fed. central bank officials are nearing a big decision on when

to start skielg back these easy money policies if we want to call it that steve liesman has fresh reporting today on the new taper timeline steve? >> kelly, thanks the federal reserve's open market committee looks to be coalescing around a plan to announce it will taper its asset purchases as soon as this september. and to begin the asset purchases a month or so after that a new potential taper timeline would look like this where it would announce the taper in september, actually begin in october or november and then do it over about eight to ten months that would be about $15 billion a month. it's just one of the things that's being talked about right now. no decision has been made yet, and the committee could delay the announcement until november, especially if august jobs ends up being weak. the delta variant ends up being more of a problem. and of course if inflation were to ease. jay powell has yet to comment on any of the recent data that came out, for example, the stronger than expected jobs report and

higher than expected inflation reports. some expectation he could set the table for a september announcement in jackson hole kelly? >> well, that of course is roiling, should we say, the commentariat, steve, and yet leaves markets completely unflummoxed. >> so this is quite remarkable, kelly. it's like taper schmaper, if i could coin a phrase. the markets seem to be well conditioned for this, and i think that's part of the reason why there is even the possibility of a faster taper, because there's been a lot of talk last week about this and markets hit all-time highs during that talk and bond markets were very well behaved >> steve, say with us. the question is is the fed right in moving up its timeline and how do they avoid i ataper tantrum? if there was going to be one we might well be seeing it now, wouldn't we? with us now greg ip, chief economics commentator for the "wall street journal."

greg, steve, welcome to both of you. greg, do you have any fault to find with what steve just reported, that possibly the fed will announce their intention to begin tapering and then actually start doing it as soon as november >> i think steve's right on. i mean, that does seem to be where the commentary in the reporting is coalescing right now. and i think steve's also right that in 2013 it was a taper tantrum. this time looks like taper ho-hum we were at 1.75% on the 10-year when the talks started we're now at 1.25% yields are going down, not up. so it's hard to imagine that this dialing back of quantitative easing is going to produce any kind of backup in jeelds that's significant enough to affect economic growth. i think the key, tyler, to keep in mind is why they're doing this the fed has laid out a sequence whereby before they can raise interest rates tapering has to be done. which essentially means that given that the inflation picture is a little less constructive than they were hoping they need

the option, not the obligation but they need the option of beginning to raise rates in the second half of 2022. that means tapering needs to be done by the middle of next year. when you've worked backwards from mid 2022, that's why they're coalescing around a start date very soon in the next few months >> i'm curious, greg, for your take on this we spoke to dave zervos last hour who thinks the fed's in danger of making a policy mistake by tightening because he looks at the plunge in sentiment index, the softness in the new york fed manufacturing, just generally thinks this is an economy that needs a lot more support than is generally realized and understood, and he basically says, you know, they're going to stick with the taper because their seats are up the fed's seat, i think vice chair and a few others are all coming up in the next few months and you can't get through that sort of congressional process without being a little bit tough on inflation what do you think about the risks of a tightening mistake here >> i think what the fed is doing here and steve liesman will back

me up or disagree with me on this is what alan greenspan used to call risk management, which is you consider both the upside and downside risks facing you. i don't think anybody disagrees that the upside risks to inflation are much higher today than they were six or seven months ago we knew there were going to be price pressures as the economy reopened nobody thought they'd be as pronounced as they are so what the fed is doing here is probably the least they can do to lay the table for a necessary response if it's required, bad news on inflation. conversely, i really don't think that you're seeing much negative down side to the financial markets or the economy as a result of that if in fact this was a dangerous tightening, you ought to see it somewhere like in the stock market or treasury yields, and we just don't see that now could it be at the margin negative yeah but that's kind of the nature of the game, right? is that you accept a little bit of risk on that side to basically limit far greater

risks on the inflation side. >> the stock market today, steve, as you can see, is essentially flat 1/100 of a point lower on the dow for instance i know you guys both pretty well and i know you don't come out with this kind of stuff out of thin air i assume, steve, that the messaging from the fed has literally begun. >> you know, tyler, it began in june and remember that one of chair powell's criteria for announcing a taper was that the market gets sufficient advanced warning. well, guess what we're now into the fourth or fifth month of yakking about tapering and if you're not up on the fact as a market participant that the taper is is going to happen you ain't been paying attention. there is no excuse for not knowing. just one thing greg said or even what david zervos was

telling you. kelly, i was doing the math. if the taper starts in october okay and the fed does $15 billion a month. that means that between now and may of next year the fed will have added to its balance sheet by $660 billion. zbll wow >> that's some breakneck, you know, white knuckle tightening going on i don't really think it's much of anything. it's the easiest possible exit you could possibly imagine from the accommodation. >> do you see added to its balance sheet by $660 billion? >> added right. remember, tapering is a reduction in the amount you are adding so 120, 105. you add all that up. i just did it. maybe my spreadsheet is wrong because you can't believe the answer that i got. but it's 660 billion additional dollars it would add to its balance sheet between now and when it's removing a combination. >> it's a tapering, not a siphoning.

>> right exactly. >> greg, one final question on this i want to go back to your earlier point. since this talk has started the ten-year's gone from 1.75 to 1.25 that would seem like a growth slowdown environment or a prospect of the biggest buyer leaving the stage is doing nothing to spook the market. so why is demand for treasuries still so strong? stock prices are still higher. what do those two pieces of data tell you about the fed's impact on the markets >> i think there's a technical and a fundamental possibility. the technical possibility is the treasury has not been issuing any debt because they're closing in on the debt ceiling and they're running down treasury -- their balances on deposit with the federal reserve. as a result there's been a reduction in incremental supply, which is constructive for the treasury market. and i think that there were a lot of people laying on positions anticipating a temper tantrum that -- and then they basically -- buy the rumor, sell the news the manifestation of the actual approach of that tantrum has caused an unwinding of those

positions. so i think those are two technical factors explaining why the yields have come down. the fundamental factor is one that i am a little bit concerned about, which is that people may be fundamentally misunderstanding what's going on with inflation here. this is not sort of like demand wuhl overheating type inflation. this is supply shock inflation it's like ten oil shocks all at once only it's in used cars, it's semiconductors, it's new cars, it's container ships and this is having a very negative impact on sentiment and it's like crunching the ability of the economy to actually generate the output that's needed there may be folks out there including in the markets who believable that in six to twelve months we're going to see an abrupt inflection point in growth and that will be negative for stocks and it's the kind of environment that would be perhaps associated with a lengthening of the time frame for the fed to normalize it's too early to know which side of that argument is a more powerful one but i think we should keep an eye on the possibility that these supply restrictions that we're experiencing now are going

to be more negative for the economy than people have taken on board yet >> all right, gentlemen. even the elk in jackson hole know that a taper is coming. greg ip, steve liesman, thank you. >> coming up, trading the faster fed. there are i ahandful of stocks our next guest says should be in your portfolio and he'll name the cheapest part of the market that he says is ready to rally plus, trading china's economic slowdown the stocks to watch and avoid on that front and as we go to break a check on the stocks hitting new 52-week highs in today's session duke energy, quest diagnostics, kroger we're back in monta me growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart

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welcome back to "power lunch. i'm kristina partselopolous. pfizer and biontech submitted early stage critical trial data to the fda as they seek authorization for a booster for everyone 16 and older. and moderna's drop that we're seeing today comes after a stint of volatility as the stock got caught up in the reddit trade. it is now down 24% on the week stu still up more than 120% on a year-to-date basis >> i was just going to ask, we're now down 24% in the past week in moderna? wow. that's quite a turn a-round. thank you. the record market rally is also taking a breather as the fed moves up its taper timeline to

possibly as soon as next month in terms of the announcement so if we have a faster fed what names should you buy now that will continue to outperform? david katz is chief investment officer at matrix asset advisers david, welcome i'll resist the temptation to say but what if they don't taper and let's just start with the premise that they will and what you think people should buy. >> well, i think the one group that's going to do very well during a taper environment and when interest rates are moving up are the financials. they've had a good run this year they slowed down a little bit. they've started to pick up again. we think you can get them at very attractive prices, higher buying at 150, 11 times earning. lower risk way, better valuation and you benefit by the fed tapering >> so the financials are one group that pops to mind. would you do it as an etf? would you pick specific names? squh & where else would you be looking? >> we would pick specific names. we like the banking group. companies like bank of new york, u.s. bancorp, truist, mft brank. 10, 12 times earnings paying a 3%, 3 1/2% dividend. you get a lot of good things and

we think you can do that rather than an etf. >> health care is another area that you've spotlighted, david >> so health care has been a big laggard the past 15 months. the biggest laggard have been the drug companies and drugstore chains we think that's a very good opportunity. the businesses are doing well, the earnings are growing but the stocks are selling at about a 40% to 50% discount to the market companies like abbvie or merck or cvs all very attracted prices the market at an all-time high, up over 100% in the last 15 months it's going to slow down. so the key to being a successful investor is to not try to ride the momentum stocks right no but rather see which companies are going to do well in a slowing environment where you're just getting an upward valuation but still pretty modest. and we think the drug companies are going for that >> health care may be a little bit less typical of a value stock here but some of those names you also like. let's talk for a second about what you think is going on with dividend stocks trading at a

discount right? normally we're at a premium but is there -- are there yield concerns being expressed here? if interest rates were to rise. >> no, we think what's happened is people are just not as enamored with companies that are slow and steady. so normally dividend stocks sell at about a 5% to 10% premium to the s&p 500. right now they're selling at about a 10% or 15% discount. so your two standard deviations below the norm, which means that dividend stocks are only going to be this cheap about 2 1/2% of the time we think that's a very good place, again, to put money over the next 12 months you're getting a nice dividend while you're waiting and you're lowering your overall market risk and we think they're going to have good returns. not stellar returns. but we think the market's overall returns are going to slow down. so on the screen you see things like amgen and kimberly clark and verizon and truist all very good businesses with long-term outlooks but they're very attractive valuations >> all right david, thank you very much david katz we appreciate it today >> thanks a lot. all right.

coming up on "power lunch," the president to address the nation later this afternoon on afghanistan. we have a live report on the chaos gripping that nation right now. and which consumer staples companies will be able to protect their margins and pass on higher cost to consumers? our next guest will name names when "power lunch" returns tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. 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

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welcome back to "power lunch," everybody. a little more than an hour from now president biden will deliver remarks on the situation in afghanistan. it will be the first comments from the president since the country fell to the taliban yesterday. let's bring in nbc news's ali arouzi with the latest on the situation right now. ali? >> reporter: hey, tyler. well, there are scenes of panic and pandemonium in the kabul airport today as desperate people pour into the airport and onto the runway trying to flee the country in what can only be be described as a chaotic exodus people are literally clinging on to u.s. military aircrafts as they try to take off the u.s. is in charge of the airport, but their focus is on evacuating american personnel. and as far as commercial flights

go, it's a disorderly mess there. with little security now, we know that as of last night the u.s. military had flown out around 500 embassy personnel out of the country on military aircrafts they're working to up that capacity into the 4,000 or 5,000 people a day but they're not there yet. they're still trying to organize the capacity to up as many people as they can out of there. as for the afghans that have worked in various different roles for the u.s., it's going to be a much tougher journey out of the country for them as we've seen already commercial flights are problematic. thousands of afghans are stranded at the airport with their suitcases and their belongings, desperately trying to get out of the country. but it's a very, very difficult task for them. also, we've seen very, very upsetting photographs of people clinging on to the wheels and the undercarriages of aircrafts

as they're taking off. one ying showed somebody falling to their death from the aircraft and the scene yous the airport isn't much better. taliban fighters are in full presence outside the airport trying to assert their authority and shooting at people that are trying to scale the airport walls. kelly? >> ali, a quick question for you. we spoke with a geopolitical analyst ian bremer last year and he said basically the way that the public ultimately reacts to what the biden administration has done here depends on whether there is american blood shed as it all unfolds to the extent that you can take us inside what you think the taliban's strategy or goals might be in that regard. >> reporter: that's a great question i think the taliban want to give a window of opportunity for the u.s. to get out of the country from what we're hearing right now, there hasn't been any direct conflict between the taliban and u.s. forces because

they just want them out of there. and i think over the years the taliban have learned not to stoke things too much if they want to take back power. they know that if they sort of got into a conflict with even one u.s. serviceman in afghanistan the u.s. would then have to flex its muscles and it would be messy there so i think the taliban are quite content to let the americans get out of there and then take full control of the country without getting into some sort of fighting match with u.s. troops on the ground there. >> ali, thank you very much for your reporting fantastic to see you tonight you know, kelly, i remember last week there was a lot of discussion that this was not going to be saigon in 1975 with the rerpts on the roof of the embassy. but those images that we just saw of people running in front of a major american fixed-wing aircraft, those are going to be iconic images of this retreat from afghanistan, i believe. and the image of those people

hanging on to the wheel well doors while those planes are moving it's terrifying. heartbreaking to see look at that i mean, that to me will be on every newspaper cover tomorrow morning. >> oh, sure. and at first it was so striking we weren't even sure if they were authentic unfortunately, they are. just sad as can be >> let's get to rahel solomon. she's got our news update at this hour. rahel? >> hi, kelly hi, tyler. here's what's happening at this hour the u.s. is sending aid to haiti after a 7.2 magnitude earthquake killed 1,300 people and left thousands more injured with limited health resources the 14-person task force will assist personnel on the ground malaysia's prime minister and his entire cabinet resigning after just 17 months in office the news comes amid public outrage over the country's handling of covid-19 the nation is currently battling its worst wave of the virus yet with more than 20,000 cases being reported each day. pfizer and biontech have submitted preliminary data to the food and drug administration

as part of the authorization process for a third covid booster shot federal regulators have yet to recommend booster shots for the general public and new york mandating vaccines for all hospital and nursing home workers in the state. under the new policy health care personnel will have until september 27th to get their first dose you're now up to date. kelly, i'll send it back to you. >> thank you very much let's get a quick check on the markets. dow has finally turned positive. it's been trending that way all session long after being down about 170 points in the futures session earlier. again, whether those concerns in afghanistan, the earlier fed tapering timeline, really not seeing too much impact here. dow's up 4 s&p down a point the nasdaq remains, tyler, down about 61 >> kelly, thank you. here are some of your power movers this hour sonos shares spiking after an international trade commission judge ruled that alphabet's google unit had infringed on some of the speaker company's audio technology patents the ruling could eventually lead to an import ban for some pixel smartphones and nest audio players. shares of sonos up about 20%

during the past week and the tech-focused hedge fund coatu management, i hope i'm pronouncing that correctly, took stakes in roh blox and uipath in the second quarter according to an s.e.c. filing it also doubled down an amazon and door dash. and the big short investor michael burry is betting against cathie wood's innovation etf a short position via options against that fund or etf you can read more about this story at cnbc.com/pro. >> all right, tyler, thank you ahead on "power lunch" the nuns are showing it, the fed is talking about it inflation pricing pressures about to maybe get even worse with the delta variant now shutting down ports in places like china once again. all this week we're looking at a different sector each day to see which stocks in the group are best positioned to deal with cost pressures today we focus on consumer d 'lte y anwel llou about that

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the oil market is closing for the day and let's go to pippa stevens at the cnbc commodity desk hi, pippa. >> hello, tyler. to the oil market we go where crude is down for a third

straight day china data showing that economic activity slowed more than expected in july, is weighing on prices here. and for oil specifically re refiners in china cut their daily production to the lowest levels in more than a year and this is so important since the country is the world's largest oil importer wti currently at $67.43 for a loss of 1 1/2% brent crude down, $69.66 however, both contracts fell well below their worst level of the day. wti had been down nearly 4% earlier hitting a one-month high of $65.73. another day of pretty significant intraday moves for oil. >> might be one of the biggest places pippa we're seeing some concern about the middle east and afghanistan play out pippa stevens, thanks. consumer and producer price indices are coming in hotter than expected lately, especially the producer prices. the fed's mulling an earlier than expected taper. it's all about this inflation. and consumers feeling the higher

prices but what are they doing about it the companies especially this week we're going to be diving into five different sectors of the s&p to find names that have pricing power and the ones that may not be able to execute quite as well in an inflationary environment begin today with consumer staples. it's the worst-performing s&p sector this year higher gas and food prices are hurting the bottom line for a lot of these companies but who's more powerful than others in passing them on to the consumers? let's ask nick mody. these a others 'managing director at rbc capital markets. nick, you've got almost like a john ledger thing going today. is this a cyber punk crypto kitties -- anyway, it's good to see you. who in your coverage space has the power to stick this out? >> across my coverage, which is pretty fast, altria, which sells marlboro and other top co. products, they have very little exposure to the costs that are going up but on top of that they also have pricing power they have a very healthy dividend yield so that's number one

estee lauder has gross margins in excess of 80% so costs, they don't have a lot of exposure to input costs as well maybe some freight they are exposed to some travel. but overall they also because they're a luxury premium company, can pass on the pricing as well. not only through price inkrass but also through innovation. >> didn't estee lauder -- did they have some challenges lately am i imagining that? >> estee's actually done quite well considering the fact that a big chunk of their business actually comes from international travel in airports, in the due ty free. but they've been able to reallocate resources in terms of the travel corridors people are traveling. they've been able to manage this pandemic incredibly well, better than i think most people expected >> and to your point the shares are up about 22% this year so altria, estee lauder you say should have some pricing power bng foods is an example of a company you're a little more concerned about? >> yeah, the ag complex in general because of droughts, because of supply demand

imabalances, because we had a he have thin crop a couple years ago, with he were ex-porting a lot of crops, so we don't really have a lot of inventory across the entire ag complex. that filters into frozen vegetables, which is one thing p & g sells. but also baking oils they own the crisco brand. you're seeing those inflate. i think by and large most companies are going to be able to take pricing because the consumer is heavily, heavily stimulated right now so i think it's going to be a lot easier for the consumer to adjust the question really is how much of the retailers going to take some companies are in their second and third round of price increases and you mentioned government data but remember some of these price increases haven't even gone through yet. we're going to see a lot more of this as we wind through the rest of 2021. >> do you think these price increases are, to use the word of the year, transtrior not? how sticky are they? >> it's a good question, tyler if you go back historically, price increases across the cpg

space are typically very sticky. okay sometimes you'll see some increases in promotions at certain retailers but by and large they are sticky. that why you've seen margins for this industry gone up despite being under inflationary pressures over the last decade, two decades. we've had these situations occur. not as bad as now but we've definitely had them occur. i think that the interesting question is putting the input cost aside how much of the kind of more hard costs like labor, how much is going to be structuring, and that is an area that we have a little bit of concern about as we move forward. we think that the cost of just doing business generally speaking could be higher just because of that labor component. >> yeah, because once a wage goes up it very, very rarely falls. right? >> exactly >> and you're making really the same point in other places that those price inhe is kras are sticky you talk about an altria, an estee lauder there must be a -- the ones that

might benefit or ride this through better, what do they have in common you pinpointed the agricultural complex as one, an area where it might be troublesome what do the thrivers, let me put it that way, have in common? >> yeah. it's actually -- costs are going up across the board in every input and also in labor and freight logistics. no one is really immune. the point i'm trying to make is when you look at the margin structures of the companies i mentioned their markins are pretty high, meaning the actual component of costs in their p & l are actually very low. think about a clorox, for instance, could have grois margins below 50%. estee lauder has margins above 80%. they're just less exposed to these costs. i think that's the number one thing that altria and estee lauder and even a coca-cola have in common. the second thing is the ability for them to price and the

elasticity is with the consumer. while the consumer can handle a lot now because of all the stimulus, you think about tobacco products, they've always been very low sensitivity in terms of pricing because consumers are going to buy them pretty much regardless of the price. beauty products, especially premium beauty products, women want to buy the brand that they want to buy. and even when it comes to a thing like coca-cola, remember, they're selling concentrate to the bottlers so a lot of the costs don't show up on their p & l. >> it never hurts to be segllin an addictive product in this kind of environment, does it, nick speak of altria. and to a lesser degree things that can hook you, whether it's caffeine-related or whatever nick modi, thanks. >> or perfume. >> or perfume. and that's a really good point nick just made is you want the brand you want and that you like and you feel comfortable with wearing. nick, thanks and coming up on "power lunch,"

china's economic recovery, losing steam and that could be more bad news for u.s.-listed chinese stocks is it too late to sell, too early to buy which is it? our traders will weigh in. and get back to the office now the author of a new op-ed says it's the only way for wall street to get deals done we'll talk to him straight ahead.

[swords clashing]

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investments. michael, in the face of heightening regulation china was able to cheer is strong growth story. but this latest data that we got overnight suggests otherwise curious if you'd be a buyer of any of these names on continued weakness >> yeah, the latest data points out of china did show some slowing. industrial output was roughly 6% in july where it was 8 in june i think covid outbreaks there are putting a little bit of a pause on the economic recovery you know, you throw on top of that the regulatory atmosphere in china targeting sectors and companies. the headwinds are real in china right now. but? -some stocks have been thrown out with the bathwater here. and one of those is baidu. i think baidu is a buy right here the stock is down 50%. it's outside of the scope of regulatory impacts right now i think it's akin to a google in the u.s. here. driven by search engine but a

lot of shots on goal with a.i. technology, cloud, economists driving their semi chip business sales growth last quarter was over 20%, mid to high teens greeting for the next three years. i really think baidu, if you're going to pick a stock or a sector in china right now, baidu is the one to buy. >> ari, there's also the contrarian take that a slowdown in chien a&e's economy will push the chinese not to implement such strong regulation what's your hot take do you think it's time to dip in here >> i would file china in the too late to sell but too early to buy category with that said just given the broken trends, though, it is an area we would still prefer to sell on strength rather than buy on weakness. and if you look at the ishares large cap china etf, it's ticker fxi, it was turned lower recently from 48 to $50

resistance that's the upper end of its range for much of the last decade currently trading at about $40 but if you can see from the chart, $33 has been the hold your nose and buy level more or less over that 10-year period. also shown relative to the s&p 500 in the bottom that ongoing underperformance indicates to us that the better opportunities are here domestically. >> i hear you. key levels to watch there. ari and michael, great to see you both thank you. for more "trading nation" head to our website or follow us on twitter. tyler, back to you >> and seema, thank you for coming back to "power lunch. newly married seema mody >> congrats, seema >> congratulations >> are you on the honeymoon? what's going on? >> no honeymoon. not the right time everything that's happening. but we'll get there. sometime this fall or winter we'll take that vacation >> well, we love you >> we're super happy >> we love you and we're happy you are in love as well.

congratulations. >> thank you >> all right hedge fund tiger global is out with its 13f filing and it looks like the firm is betting on the pandemic plays leslie picker has the details. leslie >> hey tyler, that's right. so tiger global, well-known tech investor, well-known lately for investing in private companies, but taking a look at their second quarter 13f filing it's very clear they're putting a lot of money to work in some of the pandemic companies that have certainly benefited from at least the 2020 pandemic that we saw last year. for example, doordash, they upped their stake by 88% to hold nearly $2 billion at quarter end. in shopify, upped its stake by 69%. owned about $1.3 billion by quarter end. and zoom video of course kind of that key quintessential pandemic stock here, up by 75% to hold $1.7 billion and in peloton as well, boosted

that stake 12% to hold more than a billion dollars there. so you can see billions of dollars to work in companies still with kind of of that tech bend to them but certainly ones that have been big beneficiaries of consumers staying home and you know, some pandemic-oriented fears, guys. >> yeah. might have thought okay, that's in the rearview mirror but now we know not so much as the pandemic drags out leslie, thank you. still ahead, can deals get done over zoom? our next guest says no he'll explain why wall street needs to get back to the office. don't go anywhere. >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> there's a classic investment thesis called the dow theory it says the transportation stocks can neither confirm or deny a broader market trend. but it's important to remember the transports can be sensitive to changes in oil prices and

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wall street is split on returning to the office as the

delta variant has pushed some banks to delay their reopening but our next guest has some advice for his, quote, fellow wall street drones get back to the office in an op-ed for the "new york times" author bill cohen writes, "you can't make a deal on zoom." arguing that wall street needs to get fully vaccinated, either wall street neither to be fully vaccinated, fully back in the office to pass on the craft to the next generation bill joins us today. it's always great to have you here i know you are not this way but saying you ought to get back to the office makes you sound like an old you-know-what >> i'm just trying to pass on some accumulated wisdom, if i might. i know that's risky to do these days, especially giving the amount of gray hair that i have. look, you can do deals on zoom,

and plenty of m & a deals are getting done we know the spac market exploded there's plenty of things getting done, but i'm talking about something differently. that is, passing real learning and wisdom about how to do deals on from one generation to the next the best way to do that is, you know, in the office. watching people as they actually do the deals, not through a rectangular square box. >> you worked on wall street in those banking quarters for nearly two decades, as i recall, and you learned what you learned by observing the likes of whom >> literally it was a time when giants roamed wall street, tyler, people like felix roathan, ray mcgwire, kristina moore, people who are still

doing this work and who learned from people like andre mayir, and the other greats it's an apprentice ship. you don't learn how to make a ferrari over a zoom box, and you don't learn how to do deals -- really learn -- i mean, you can do them, but i'm talking about really learning. >> what is so important about the face-to-face, in the same room connection, in the learning what was an investment banker's trade and art is that you can't get remotely >> look, there are subtle social cues, whether it's bluffing -- you know, i don't want to sound like i'm endorsing alpha male behavior, but, you know,

pounding the table knowing when to actually start and commence, how to go about a takeover, doing valuation work and understanding the subtleties of -- and the nuances of when to make a deal, how to make a deal, and when to raise your bid, when not to raise your bid. how to get a sense of the competition. how to launch or not a hostile deal, or whether to go a different route. there's a lot of things that you learn by watching the masters. again, i don't -- i mean, you can do deals lots of deals are getting done i'm talking about the long-term survival, if you want to do that, of this industry, and i think that needs to happen in the office through apprenticeship learning just like in an flu florentine guild.

>> i think people in the profession know, why who they cede the advantage of going and doing it firsthand >> you mean, going back into the office >> doing deals, traveling, meeting clients. you know, i mean, are people that you talk to resistant to the idea of doing that in person again? i'm getting alternates bit of the opposite vibe. >> i don't think people are resistant, i think if you're serious about your wall street career i would say maybe 75%, 80% of the people who work on wall street are serious, they want a career others are just passing through or want to get a credential and do something else. but if you're serious, then you have to learn it you have to learn it over time it's like being no law firm, you don't learn to be a lawyer the moment you pass the bar. you have to learn from people who have been doing it,

practicing the law for a very, very long time i know lots of people who are anxious to get back in the office, have gotten vaccinated, want to get back and want to learn, because they're serious about their careers. >> i learned how to write by having editors edit my ass off, frankly. you learn to do something by being exposed to people who do it better than you bill cohen, thanks. >> thank you. the back-to-school squeeze on your wallet why prices are rising by double digits for popular spls.upie the three-ring binders my goodness. the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest,

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welcome back, as the inflation debate has raged on, we've spoke to a lot of business leaders, who say it's the shipping costs the reason a lot of parents are already seeing stick other shot with back-to-school shopping. frank holland has more hi, flank. >> hey there, kelly. back-to-school costs will be 77% more year over year. a that is because of shipping costs. the shipping the containers to the u.s. west coast hid a record last week, up more than 220% trucking, those rates are at records as well, 53% higher.

both are forecast to remain elevated back-to-school prices are increasing across the board. for example, notebooks 75% higher, book bags it 2% higher, sneerers 17% higher. discounts, however, are on the decline. the average discount was 13%, compared to 18% compared to july of 2020, largely due to supply change the latest reading of inventory ratio is ten-year lows some of that is due to shipping costs, also to storage costs retail warehousing supply is at historically low rates cbre says rents have increased 10% overover year. overall, it means you'll pay about 40% more for your back-to-school shopping than you did back in 2020. >> thank you, frank. we appreciate it. >> that brings us back to where we began the program that is, the idea the fed may start to taper

one reason is inflation is running hotter than they had anticipated. >> also, watch the delta variant. the shutdowns we're stating to see in china, some of the worse we have seen since january amazingly the markets are pretty palace i, 45 minutes away from hearing from the president tyler, it's been a pleasure. thank for watching, everybody. "closing bell" starts now. welcome to "closing bell." aim will frill frost, a downbeat tone to start the week the dow climbing awful ways because a nearly 300-point drop. >> good to see you, wilfred. let's look at what is driving the action right now economic data coming in worse than expected. retail sales growing 8.5%. manufacturing also missed. slowdown energy the worst-performing sector of the market shares of tesla are weighing o