handle those transactions. actually today after the call, i think there will be a lot of questions for the cfo about what sales for the chips look like. >> impressive. josh, thank you very much. josh lipton. nvidia reports after the bell this afternoon >> that does it for "the exchange." thank you for joining, but don't go anywhere because [ applause ] starts now >> that is right please do not go anywhere because "power lunch" is beginning right now, and here is what we got on our menu for you today. the release of the fed minutes is imminent. will there be more clues about the taper timeline how concerned are officials about inflation? we have team coverage, analysis, and the market impact. also this hour, packaging producers seeing costs spike, but get this, they plan to pass on all of it and maybe even more what are you going to do if you can't get the cans to sell your beans? no questions asked here. our inflation nation series focuses on this key economic

sector and the ev revolution will transform the transmission grid. the demand for electricity is going to do nothing but that, go up top analysts will tell us which stocksexposure t the buildout >> thank you very much and as we wait on the fed minutes, here's where things stand. let's get a quick lay of the land the dow down 46 points the s&p down six, and the nasdaq is up six right now. as for the bond market, the yield on the ten-year up just slightly, and home builder stocks, there's the ten-year, 1.295% by the way, the home builders are higher despite a sharp drop in housing starts which fell 7% last month as we spoke with bill smead, he's still bullish on them for the long run >> the fed minutes, the release of them for the most recent meeting back towards the end of july, those are imminent investors are looking for more indications of when the central bank may began scaling back its

stimulus it's a murders' row of fed analysis steve liesman, ed yardeni is offering his insight and analysis, bob pisani, rick santelli will bring us immediate market reaction. all of you, welcome. and steve, get familiar with minute i'll come to you when you let us know you have digested the headlines. you remain bullish even though this week we started to hear rumblings the fed is about to start talking about pulling back on its monetary stimulus >> well, i think that the market has gotten to know that tapering is coming, and the economicnew has been strong enough, even in the labor market, which has lagged behind real gdp real gdp hid an all-time high in the second quarter, so the economy is doing just fine the fed is behind the curve here actually look, the market, i think, i

have been talking about this tapering tantrum for so long that it's probably not going to happen when the fed finally decides to taper and i think that will probably happen at this september meeting. and be implemented maybe in november >> and so even despite the fact that the last time the fed began raising rates and tapering, pulling back on its bond and fixed income purchases, the market did not react well. was the problem there miscommunication it seems like this time they're bending over backwards to communicate fully. >> i think to a certain extent, it's miscommunication. they got the market by surprise. there's not going to be any surprise this time around. i think the market is anticipating it. and look, the economy is doing -- earnings are doing great. i would say that tapering followed by some raising of interest rates would be a clear sign of confidence in the economy that it can actually grow on its own without all this stimulus >> rick, i want to turn to you

for also mention of these reverse repos which are huge when we talk about liquidity, is that a sign to you from the markets about conditions here, even as we're about to listen for anecdotes from the fed about what they think financial conditions are >> yes, and it's a two-way street on so many levels jpmorgan has done some research on the liquidity in the treasury market remember, sometimes japan, one of the largest sovereign debt markets as well, trades by appointment only so there's an issue there, and the more the fed buys and puts in a corral, the more that may be impacted. some of these headlines are out, and of course, the fed doesn't want to team up or pair the taper with any type of increase in rates they have said that many times before as i look at markets, interest rates are moving down a bit. the dollar index is down about .6 of a cent or so since 2:00 eastern. and the other issue that seems to be cropping up is that the treasuries market right now is

probably in a mode where the participants have so much cash and so many treasuries laying around that liquidity, as you pointed out, is not only an issue for do we have too much, but it really questions the notion of is the fed doing more damage by taking these securities out and is it really going to alter any of the supply chain materials, labor shortages out there, and a couple fed officials, of course, have brought that point up. and one more thing, very quickly, also seeing a lot more headlines on participants say that recent pricing issues are temporary. and that's kind of a little bit of white lie, kelly, because as steve knows and we have discussed many times, the temporariness is the rate of change to the upside the fact that these prices may stick could still be a zero inflation cpi or ppi number when we get around to that. i'm just not sure the average american puts that together. >> well, i think they do they feel it, and you know that

reset, even if it doesn't keep rising as you said let's get over to steve liesman for the details of the fed minutes. steve. >> yeah, just a few headlines here, kelly. and we'll get back to in a second, but no decision was made about asset purchases. seems to have been quite a long discussion about it. there seemed to be a staff presentation about the various options for the federal reserve. all participants said the economy had made progress toward the fed's taper goal that was substantial for further progress which they said had not quite yet been met this was three weeks ago some appeared to have changed their mind in the interim, especially with the strong jobs report after the meeting most participants saw tapering this year and they used the phrase in coming months for when the tapering would begin by various participants, but some thought the tapering should begin early next year. there was a disagreement on the issue of the delta variant, it underscored uncertainty, especially in foreign arkets, but there was

concern the delta variant could delay a full economic reopening. is there concern out there about the variant? it was seen posing downside risk on inflation, largely seen reflecting transitory factors. but there's more yet to come, kelly. i think in the minutes, about the inflation situation. you will remember that last time, in the prior minutes, there was some concern that this idea of transitory could become transitory, as in spill over to next year, and i'll read the minutes as whether that's a problem, and that's one of the reasons why we have seen some officials get more concerned and want to move the taper up earlier, because of concern inflation lingers longer >> let's go to bob pisani. the market is basically flat, bob, on the day, but just in the past couple minutes, there has been some movement upwards, most especially maybe at nasdaq into the green, but you can also see on those charts, we were just

flashing in front of the viewers that the market seems to be liking what it is seeing and hearing. there's one. bob. >> yes, we have moved about seven points, in fact, the s&p went into positive territory, it's flat now, but it was 4440, so it moved about seven points i think on the headline substantial further progress not yet met. this is a few weeks ago. jackson hole is going to be the inflection point sat least that's what the discussion down here is about. this whole argument, so far, we don't have enough evidence that we have made substantial further progress, but maybe at jackson hole, this is the discussion being held down here, we're going to hear that, okay, now we have got a lot of data points at this point unless we see things getting really negative, we will proceed towards the following. that's sort of an inflection point. and this is sort of the idea, i think, people are forming around jackson hole so think about the week after that, we're going to have the august jobs report what do we expect?

750,000 jobs we have had two prior months where we're about 900,000. suppose we get in line for august, we get 750,000 we have 2.5 million over three months how much more substantial further progress do you need this is at least the thinking down here, that jackson hole is going to be a slight inflection point. and remember also, i don't believe christine lagarde is going to be there and i don't believe david bailey, the head of the bank of england is going to be there either, so this is going to be a much more, i think, domestic focused conference for people. so so far, you have to admit the communication has been superb. you have seen no real hiccups or indigestion from any fed comments so far. this is a pretty modest move i think some people hopeful maybe it's a little further down the road, but everybody believes they're going to -- tapering is going to start the end of november/december, maybe january. six, seven, eight months to finish the end of the second quarter and then they'll start talking about raising rates.

that timeline is being hended to everybody at this point. the messaging seems to be very spot on, and the market is indicating it's accepting the message, at least so far >> so ed, you heard what bob said, steve, and rick santelli, the market seems to be reacting relatively modestly. in jackson, around jackson, there are literally bears. you're not one of them, quite clearly. there's nothing in this report that would derail your essential thesis, which is that technology and technology companies that are going to improve productivity and increase margins are going to lead the way in the market. correct? >> look, i know we all spend a lot of time on the macro, we spend a lot of time on the fed policy, fiscal policy. but you know, there is an economy out there that's run by business people, by workers, and the reality is one of the major

trend in our economy right now is a shortage of labor we're running out of workers before the pandemic. unemployment got to 3.5% in january and february of last year coming out of the pandemic, everybody is suddenly shocked that there's another labor shortage of course, some of these are pandemic-related issues that have kept workers from going back to work but the labor force just isn't growing. it's growing 0.5%. i think companies are starting to realize that workers are skars. you have to hug them, you have to hold them, take care of them. you have to pay them more, give them more benefits, and that's only going to mabe sense if you can increase productivity. i think fortunately we have the technology tools that can augment the mental and physician productivity of workers. so it's a win/win situation the way i see it >> hug them, hold them, pay them more sounds cozy as the bears out there. the real ones. anyway, steve, let's get back to you for a thought on this. it's also important to note a lot of owhat the minutes are meant to do is kind of message

the market test the waters a little bit, right? this is all, we have had messaging from the fed about the taper, now the minutes kind of confirming that. you have to imagine a cold market response like this is what they're hoping for. >> i think so, kelly but the question becomes how cold are the minutes there is a robust discussion in these minutes about whether to taper sooner rather than later there is a defined group of doves who say hold on, hold off. inflation could be transitory. the delta variant presents downside risk. let's just wait a little bit longer and there's a defined group of hawks in there who are saying, you know what, there's a lot of risk to inflation. some thought it would be prudent to prepare for reducing purchases relatively soon due to the inflation risk so the question is how things have changed over the past three weeks. we have reported there's been a

coalescing around the september announcement with the possible of an october or november taper. bob is right, we're going to learn an awful lot in jackson hole he's also right, as i believe there will not be foreign participants because of covid, so it's going to be an america's first, if you will, jackson hole, and we'll focus squarely on u.s. foreign policy, and powell is either going to give the green light for a september announcement or he's not >> thank you very much, steve. and fellow panelists, thank you very much as well for your insights today ed, rick, bob, and steve we continue our inflation nation series, right? >> yes, we are we're looking at packaging and materials. manufacturers are seeing their costs rise up to 20% or more in some cases and they're passing the price hikes off to customers. our next guest says these companies usually push price hikes down the chain, and quote, they don't do anyone any favors. salvador is a senior analyst focusing on packages you know, tell us sort of how

this inflation is moving throughout the sector and showing up to the end user >> sorry, go ahead >> i'm sorry, i missed the last part of your question. >> sure. tell us how these cost pressures are moving through the companies you cover and how they are passing those costs along to their customers. >> yes, of course. and packaging, of course, is very critical. it touches everything we pretty much use from plastic container or beverage can. so you cannot really avoid it, and it starts when the raw materials, the metal, aluminum, steel, or plastic resin and other prices start going up last year, and then with the hurricane also so this has been a tremendous amount, so the packaging companies have had a tremendous amount of inflation. a lot of them are trying to offset it in order to make sure

they don't by passing this on to their customers which are the consumer packaged goods companies. some of them have contractual passes, many do it based on agreements they have a few months later, if prices are higher, it's the consumer goods company that's going to pay that inflation, not packaging company. but there are others also that don't have this mechanism, and they're still going at it strong because the packages is extremely strong right now men's substrates are sold out. so they're doing whatever they can to raise price, and obviously, that should find its way to the end consumer at some point. >> exactly you're talking about packaging prices increasing as much as 20% or more in some cases, and ultimately, this will find its way to the end consumer. the companies we're talking about, we don't often cover them, but this is a key part, amtar, oi glass, silicon

holdings, sinoeko, who would you say you're most positive on right now? >> i personally think that when it comes to inflation at this point, silver is well positioned doesn't have a lot of contracts that i mentioned for the mechanisms that may be bad at some point, but given how strong demand is for packaging and goods, they're actually going out with increases that are above and beyond what others that are. so they can get more pricing and more margins at some point, they can hold them to the pricing better than others so i think it's a very well positioned company at this point. >> sure. your favorites, we're showing them, sealed air, crown holdings, and barry global group. all down over the past three months, but up about 20% over the past year. curious if there's anyone who you think is going to feel the squeeze more we know a lot of companies are able to increase their profit margins. whatever price they take, they

raise it more and benefit from the spread is there anybody who might not have that luxury, they might see people substitute out to a different kind of competitor come up with some other solutions versus paying the higher price >> well, right now, these companies are pretty fortunate that inflation is going up across the board, so in the past, perhaps, there could be some substitution across substrates from paper to metal or plastic on the margin, obviously, because not very easy to change something like that. but right now, pretty much every substrate is seeing higher pricing. so paper, recovered paper prices are skyrocketing resin prices are high, aluminum. there isn't really anywhere for the consumer goods companies to hide they have to pay no matter what packaging they're getting. now, with regard to my companies, usually the biggest squeeze would be on the plastic resin side, berry, sunoco products, the plastics business have seen pretty intense

headwinds. that being said, everybody likes, from what i have seen recently, how it's been handling things much better than in 2010, the last time we had severe raw material inflation, and you can see it now at berry, that's wi we have a buy rate very attractive price, and a great job strengthening their contracts to pass the costs their customers. >> thank you for your time today. salvatore tiano. >> from power train to power lines. we'll speak with an analyst who says ev demand will require a massive increase in the electric grid investment. and there are a few names that will benefit, as there always are. >> plus, a market pull-back could create a big opportunity in three sectors our guest later this hour has a list of names to watch and buy and as we head to a break, some of the stocks that are hitting new 52-week highs.

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welcome back, everybody. we're keeping a close eye on markets as tends to happen around events like the minutes, maybe not the beige book to the same extent, sometimes to the actual fed decisions themselves, there's this kind of initial reaction one way and then a bigger reaction the other. and that's exactly what we're

seeing in stocks right now what initially was a treading water moment has all of a sudden see the dow turn lower 166 points and the nasdaq is down about 29 remember, there was a lot of rhetoric about the taper this follows comments from james bullard earlier today about an aggressive taper timeline. >> i wonder what they saw there in the language that came out just a few moments ago initially, as you pointed out, we were just talking about the fact that the charts were showing a slight increase there, and now, a rather precipitous decline. i wonder what the words were that got in investors' heads >> i doubt it was the fact, some are now picking up on this idea, are they going to actually taper treasuries as much as mortgage-backed securities i highly doubt something like that would be moving markets to this extent. perhaps we can show treasury yields 1.277% not hugely hawkish we're not seeing huge spikes, but a move to the upside

same thing we saw in the dollar as well. now it's a question of if this trend asserts itself into the close and into a few more sessions we'll be watching this closely >> maybe we'll have bob back to plain it to us >> america is on the cusp of an energy evolution the rise of evs is going to change the way energy fuels the country. is our grid ready? especially given the pressures it's been under lately to shift from power train to power line our next guest says no massive infrastructure will have to take place. let's welcome in chad dillard. chad, welcome. i would like to get to this actually right from the stock point of view. tell me about quanta services, why it's a name people should think about owning as this massive shift takes place. >> absolutely. good afternoon thanks for having me on. the mass adoption of electric vehicles has been nothing less

than a wholesale shift in flows to the u.s. and the current infrastructure is insufficient i think efficient contractors are going to benefit there's a couple reasons why first, ev growth is going to drive an increase in the demand. it's going to be entirely global, and that's a really big positive transition because renewables are build in low population destination areas second, the shift to electricity is actually going to increase the complexity of distribution, and that's going to be more. so the density of elect grid could go up. because when you think about it, today, we drive our vehicles to the gas station. 1 of 150,000 filling stations in the u.s., but electricity flows to 1 out of 140 million homes, and the grid is really not prepared for this. in some states right now, you

have u.s. -- it's too high, and think about that >> yeah, sorry, i was going to say that we're all thinking through the heat waves we have experienced in parts of the country where people couldn't even get ac on there were deaths from heat. the grid is stretched already for all of these different reasons, and then you add this on top you like quanta a services jacobs engineering, adco, they're also outperform. there are common themes with those picks? >> yeah, exactly i think with jacobs, a very big beneficiary of the overall infrastructure build-out, they're at the tip of the spear. if you think about the broader infrastructure bill, you're going to see a lot of the first funding going toward design. they're one of the marketing players there. i think they're going to be well

positioned for this overall trend. >> what percent, is it 100%, is it something less than that, of the additional power generator that is required will be renewable? it was not that long ago, chad, that everybody was talking about, well, let's put up another gas-fired power plant. our former parent general electric was huge in that business that business has melted away, right? >> absolutely. on top of that, if you're thinking about one of the big drivers is just decarbonizing transportation it makes a lot more sense to have your energy sources truly renewable when you're switching over to ev >> all right chad, thanks for joining us today. a number of different ways to play this huge shift in driving and what it means for the electric grid. chad dillard, we appreciate it >> on the show, the biden administration wants solar power to account for 40% of

electricity generation by 2035 that's up from just 3% today even with solar dropping in terms of cost 70% over the past decade, there's still a ways to go >> plus, the slings and arrows of robinhood's fortune the company reporting results after the bell, what investors need to know when "power lunch" returns. for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief*

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that's because you both have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? welcome back, everybody. market has been all over the place in the last few minutes. the fed's minutes came out at 2:00 p.m even though it's now almost half past, dow is down 78, was down as much as up with 60. >> 150, 160 not five minutes ago. >> that was 15 minutes after the minutes came out here you can see the big dow move, the spike back up. it feels like the trading community is trying to digest all of the taper talk. there's the nasdaq, by the way, which is now back in positive territory. you tell me what's in the tarot cards. here's the s&p still down about eight. oil closes for the day, the message here, we still see declines in the range of almost 2% >> all right time for today's power movers. first up, lowe's, soaring nearly 10%. the home improvement retailer beating earnings and revenue

estimates and raising guidance >> viacom cbs is higher. wells fargo upgraded them from overweight and finally, morgan stanley reiterating its overweight rating on roblox they continue to retain users. for more on the top calls of the day, go to cnbc.com/pro. >> ahead, climate consequences as the severity of national disasters gets worse fema is overhauling its flood insurance pricing. >> plus, our next guest sees volatility ahead and has three stocks to buy on any dips we see. we'll be right back.

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billions of dollars will be required to make this happen the sector's growth rate will need to triple or even quadruple by 2030, according to a memo from the department of energy. and supportive policies will be key. the doe outlined several areas of spendings to boost solar including tax credits, investing in tech innovation, as well as building out community projects in low-income areas. solar stocks are getting a boost today, and the invesco solar etf is up 2% array technologies, flat glass group, and shoals technologies are leading those gains. however, solar stocks are still down for the week and over the last month plagued by supply chain and trade concerns the white house is cracking down on silicon imports from china's xinjiang region. and in the u.s., a petition was filed asking that tariffs be extended to china-linked factories in malaysia, vietnam, and thailand

the solar industry's association says the consequences of this could be, quote, severe. so tyler, a huge growth opportunity, but a lot of headwinds facing the industry right now. >> pippa, thank you very much. pippa stevens. >> our next guest calls for a pickup in volatility and a pullback, which she says could create a big buying opportunity for investors like you she's identified three stocks in three sectors that are underperforming so far this year utility, discretionary, and staples. she calls them best in class picks. we'll get to them in a moment. first, we bring in rachel aiken, vice president and portfolio manager with rockland trust. rachel, welcome. why are you persuaded that a pull hp back and more volatility is just around the corner? >> well, tyler, good afternoon, and thank you for having me. you know, i think all of us in the investment community have sat and watched just really this teflon market where we have seen the market climb uninterrupted by a 5% correction for close to

200 days and seasonality tells us august and september are generally more volatile months. but i think part of the volatility we see is predicated on the virus as well as valuation. but in my eyes, i think it's really can be simply put by this hand-off that we're seeing across so many areas that's really injecting a lot of uncertainty. i think we're seeing it this afternoon with the release of the fed minutes. so much of what we have learned has really been widely telegraphed, but there's that uncertainty as we hand off fiscal and monetary policy to the economy to kind of run on its own. it's creating consternation, and i think the market is going to continue to feel volatility around that, volatility around the hand-off from goods purchasing to service purchasing and we're looking for like the parent helping a child ride a bike we're entering the phase in the economy and the markets where we're going to take off the training wheels and take our hands off and let them ride away and hope they're steady as they

go >> let's get to some of the choices you have i assume in discretionary is number one, and that would be pepsico. which sort of leads the way in snack foods like stacey's pita chips and potato chips and doritos and so forth that's a pretty recession-proof and volatility-proof pick. >> exactly so pepsi has been a real ballast in our portfolio for the better part of a decade you're right, it's that perfect combination of salty snacks and beverages that have really had it in the number one position snackwise globally what we think is so important with pepsi is the ballast you get with the balance sheet and a nice dividend, again, the high quality business but we're also seeing catalysts with their investment over the years now paying off as far as manufacturing capacity but also really if you look at the numbers they just reported, it's interesting to see the most covid hit areaoffs their business, the away from home businesses, are recovering more

quickly. and the at-home business is staying strong so that's translating into strong organic growth, double-digit increases in their sales and their beverage business you know, just a business running on all cylinders >> how clever is it, kelly, you have this company that makes september 11thy s y salty snacks and then what do you want to do you want to have a sierra mist or a pepsi number two is next tara energy we were talking about the need to enhance, upgrade, boost the power grid power generation this could be a play there >> yeah, and again, this, like pepsi, has not had the same type of market performance year to date, but it's been a strong play for many years. taking a breath this year. but nextera gives you the opportunity to own two great business s. you have a best in class regulated electric utility, florida power and light, having really strong user base growth

again, alongside of a big growth opportunity with renewable energy, where nextera is the biggest in capacity for wind and solar. see see that as a huge growth engine as we pivot towards the renewable business >> and give me one quick sentence on your last pick, o'reilly automotive. why? >> we love any discretionary company that we think can go head to head in an amazon world. and really, their benefit is they can get you the parts and they can get them to you quickly. and they're not as price sensitive, and amazon can't beat them on that front >> all right, love to hear it. o'reilly auto. third pick there rachael aiken, thanks. >> thank you >> an update to a story we brought you last year. the cme group now firmly denying the ft's report that it approached the cboe over a possible acquisition, saying in a statement that it has not had

any discussions with cboe whatsoever both of those stocks reversing their earlier moves as cme pops and cboe gives up a 9% gain. >> wow up next, we'll look at robinhood results after the bell the stock up from its debut, but wall street is divided on the trading platform check out yields across the treasuries a bit of an up and down picture, just like we saw with stocks, but it ten-year u.s. treasury hanging on to about 1.27%. we're back in a moment

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welcome back to "power lunch. i'm seema modi robinhood out with earnings at the bell its first quarterly report since going public in late july. while the company aims to democratize trading, its stock has been caught up in the meme trade, now trading roughly 30% from its pio price of $38 a share, but trading higher today. let's bring in the trading

nation team, matt maily and miller taybalk, and whether it's currency trading, so much to look for in this earnings report, but what will you be looking for? >> yeah, seema, thank you. i'm looking for a couple things. robinhood did a great job of kind of getting rid of the headwinds on the pr front, and some of the regulatory headwinds to control, but that seems to have subsided at least for now try to understand growth, and the big thing is the net cumulative funded accounts. if you're seeing that growth long term, that plays well into 80% of their business with the payment for order flow i think you're going to see that grow i'm also go going to look if they can capitalize on the ancillary products offered on the platform if you have more folks on the platform, which 80% of their growing amount of people on the platform is organic, which is

strong for the company near term, if you look at what happens after earnings, it could be volatile, especially as you mentioned getting caught up in the meme trade, but i think long term, investors should look for opportunities to buy here. >> hard to apply technicals to a stock that trades on sentiment, but what happens if it breaks below $35, the level it traded at after going public? >> that's a key level if it breaks down in any way because obviously, it acted poorly immediately after the ipo, and two days in a row, it was $35 level. if it breaks below, you lose a lot of momentum and confidence in the stock that said, i agree with dellano. it's going to continue to be volatile usually when a stock goes public, within a week or two, it finds a level. this one hasn't yet. so i think what people should do is spend -- build a position over several months, even five or six months. that's when it's going to find a level because i do like it on a long-term basis.

one thing i will be looking at on the resistance side is the $57 level. that's the recent highs, back from early august. if it can break above that level, that's going to biv people more confidence it's not going return back to the $35 support level we were talking about, and it breaks above $70, which was the high, the meme stock high, that going to give it a lot of confidence that it's going to go a lot higher that probably won't happen anytime real soon, but a level to look at further down the road >> stock trading at $50 a share right now. matt and delano, thank you for more trading nation, head to our website. back to you. >> thank you very much >> speaking of robinhood, that stock is one of the most recent holdings of ark's cathie wood, and she'll be on tech check tomorrow at 11:00 a.m. eastern to discuss that. >> up next, fema set to overhaul insurance pricing this fall. how will this affect homeowners? details when "power lunch" returns, as we look at climate consequences

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welcome back to "power lunch. a check on shares of tjx companies. the parent company of tjmax and homegoods and marshalls tracking for its best day since november after the parent company of those companies topped earnings and sales expectations in the latest fiscal quarter. if you look at that, it's a signal customers have been eager to return to stores after the lockdown in the u.s. on that note, the company says the start of the third quarter has been strong with comparable store sales at locations that are open up in the mid teens over the same period last year tyler, still looking for a bargain at tjx >> i think my wife is single handedly responsible for much of

this >> my family is throwing in a few bucks, too >> home goods is her favorite place. >> the treasure hunt is on >> she says right now they are low on inventory because people have been, to your point, people have been going back and shopping at her favorite store there we go. all right. the national flood insurance program provides over a trillion dollars in coverage for more than 5 million policy holders in close to 23,000 communities nationwide it's best to undergo an historic overhaul because of climate change what will that mean for how many -- for how much homeowners pay and the value of their homes? diana olick explains in "climate consequences." >> reporter: climate change and its devastating impacts are now accelerating faster than ever. according to the u.n.'s new climate report out this month. and yet fema's national flood insurance program hasn't changed at all since its inception but it is about to

starting in october, the nfip's insurance pricing will reflect a property's unique flood risk, finally factoring in climate change as of now, federal flood insurance is based on a property's 1% annual chance of flooding and its elevation under the new model, fema will also look at the home's replacement cost, whether the risk is rainfall, river or coastal flooding and how close the property is to the source of that potential flooding. and most importantly, fema will now factor in future catastrophic modeling from climate change, including sea level rise, drought and wildfires. >> it's a complete transformation of the way that we're developing what your risk is for your property and then price it accordingly >> reporter: as of now, someone in florida with a million-dollar home and someone in montana with a $200,000 home are paying the same rate for insurance. even though their risk is decidedly different. under the new model, rates will

go up for some and down for others >> it's just important that we address that inequity that the lower value homes shouldn't be subsidizing the higher value homes going forward. >> reporter: changing that, however, will change the value of some homes. matthew founded first street which calculates flood risk scores for every home in america. >> so depending on how much that insurance goes up, it's going to correlate perfectly to the value of that home for any new home buyer who comes in and says this home looks great but now i have to pay $6,000, $10,000, whatever it might be a year in flood insurance which is just going to take away from the value of the actual asset itself. >> reporter: about 30% of the homeowners who buy fema flood insurance are not in mandatory fema flood zones they buy it voluntarily and may see the biggest price increases because their homes have generally higher values. all of it is necessary, however, not just for equality in the program but to keep the program

afloat financially fema has been hard hit by the number of disasters hitting areas where homeowners have no flood insurance. back to you guys >> do we have any idea how much rates might go up in those areas like florida where the prices of the homes are higher and the risk is higher from flood than it is in your example, montana do we have any idea of that, and then i'll come to my second question >> okay. well, we don't have exact ideas because it's going to depend on each unique home in those areas. but, obviously, in areas like florida you'll see it go up more everybody's flood insurance goes up about 10% every year. so some in lower risk areas will actually see it go down. some in higher risk areas like florida could see it go up >> i'm told we don't have time for another follow so i'll save it for next time i wanted to ask about fires. but we'll save that for the next time >> but i'm also thinking as well, tyler, about the massive population shifts to places like florida. we've seen people getting

sticker shock. new jersey property taxes are terrible but they don't realize what they're walking in to get insurance let alone flood insurance for the homes down there. >> what you spend on that increment is reduces the value by a commensurate amount >> six or ten grand a year new rumors swirling around a new iphone that could have a big impact on suppliers. n'gonyere. what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.

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its 52-week high and it's approaching $2.5 trillion in market cap this as rumors are growing online about the iphone 13 josh lipton has more >> reports and rumors are flying fast about the new iphones on the way. the expectation is you'll see more modest upgrades to these new devices. the iphone 12, remember, was certainly important. it was the first iphone to support 5g usually apple follows a significant update like that with a relatively more modest one. they expect a faster processor, longer battery life and camera upgrades skeptics think the new iphones won't sell as well as the iphone 12 there are nearly 400 million active iphones out there at least three years old, by his math he's banking on a lot of upgrades meanwhile, some apple suppliers under recent pressure. names like qualcomm, skyworks and broadcom one apple analyst says that isn't necessarily a red flag chip names could be under pressure for a lot of different

reasons from growth worries to supply constraints but apple he's betting will ultimately secure the chips it needs while rivals may not be so lucky back to you all. >> thank you, josh people always seem to want those newest, latest, greatest phones. thanks, josh lipton. thank you for watching "power lunch. "closing bell" starts right now. welcome to the closing bell. i'm scott wapner in for wilfred frost. investors digest the fed minutes. small caps a bright spot as we head toward the close. hi, sara >> i'm sara eisen. let's look at what's driving the action the federal reserve releasing minutes from the july meeting just last hour as the taper conversation ramps up. most participants saw tapering this year. the delta variant does pose a down side risk to the outlook. more retail earnings out today target and lowe's topping estimates with lowe's surging on those results. and soft economic data point