>> cvs people are going to go to the store to get tested. the front of the store is going to do well the stock is cheap >> yep jon? >> gap stores, brian, gps, gap stores, bought it during the show >> thank you steven weiss >> skyworks linked to apple. skyworks is going to continue to move higher. >> all right, everybody, great show thank you. i will see you tomorrow on the "halftime report" as well. that does it for us. "the exchange" begins right now. thank you very much, brian hi, everybody. and here's what's ahead today on "the exchange. rescue and cleanup efforts underway as hurricane ida slams louisiana, millions without power and the energy market is bracing to see how long refineries will be offline we've got all angles covered markets are rallying today with more new highs in the s&p and nasdaq, 56 new highs, dom, something like that.

wild that said, september has traditionally been a weak month for markets. as we close out august, where do stocks go from here? airlines cutting capacity. do the stocks get ahead of themselves it's ahead this hour, but we start with the records and dom chu is here with the numbers >> kelly, it's like 52 record closes forget about the number of intraday closes we've seen 52 record closes and maybe it's again today. that's what we're seeing in the nasdaq 31 record closes for it. we're going to put the yellow stars up there right now because we did see the record levels the dow is the laggard today, just about flat. the s&p 500, the first time above 4,500. you can see that move higher and the nasdaq up by one full percent. megacap technology and communication services names are leading the way. names like alphabet, apple, nvidia amongst a slew of stocks that have made record highs so far today.

checking out one other part of the market that's getting a lot more attention support.com, a software company, amc entertainment and gamestop we're going to call this the og, the original gangster of the meme stocks is up about 5% amc is up 10%, 11% but support.com is the latest. wall street bets reddit forum target for short sellers they're trying to bid the stock up it's up 38%. just to give you context, earlier this year to start the year this was a $40 million market cap micro cap company. it's now worth close to $900 million in today's trade. so, keep an eye on support.com, wall street bets, short sellers, reddit, you name it, all part of that theme paypal exploring stock trading on its platform. according to sources familiar, the shares up 3% meanwhile ripple effects carry to robinhood what does it do to robinhood

those shares down 4.5% now we'll have more on that story throughout the course of the day. still an interesting move, a divergence, if you will, right, kelly, for those online payments and brokers, paypal, robinhood going in opposite directions i'll send things back to you >> we will have much more on that still to come let's turn back to the broader markets. what is driving stocks forward to all of these stocks dom is talking about and how has this changed as delta spreads bob pisani has more. >> kelly, the important thing is rotation we've been seeing in and out of growth, in and out of value throughout the month let me show you some stocks that have had strong momentum in the last few weeks it's generally characterized by tech, biotech and some industrials. last couple of weeks regeneron has been on fire a number of biotechs have been on fire. alphabet and a few megacap techs have been doing well including facebook and a smattering of industrials like adobe -- excuse

me, eaton, for example adobe is perpetually strong so far this year. subsectors, thematic tech has made a big come back in the last couple of weeks. cloud computing has been on fire fintech in general semiconductors have been strong. software has been strong what's this got in common? it's thematic tech has the momentum right now in august overall we've seen a modest return to cap stocks and growth stocks over small cap and value. this has been switching leadership all throughout the year but so far this month, the s&p 500 the big cap modestly outperforming big caps small caps has done a little bit better overall but most of the gain came early in the year. growth has been outperforming value. value is far bigger performer earlier in the year, but in the last month growth has made a comeback how about what's going on in the worst months and the best months in terms of what we're dealing with of course september is the worst

month of the year. this is since 1945 august, september, are two of the three worst months and that's just a fact you see the down side is fairly modest february also is now remember october gets better november, december january usually is the best three-month period for the year. kelly, back to you >> bob, thank you. bob pisani my next guest sees a number of caution signals flashing but has stock picks he feels are underappreciated, barry james. barry, it's great to see you let's start off with the note of caution you're sounding. >> yeah, you know, the market is quite elevated right now and the first thing i want to say is new highs do not mean you need to sell because if you had done that you would have sold at the end of last week and missed a 20% rally. >> sure. >> new highs beget new highs i'll say that to begin with. there are caution points the information out of jackson hole about tapering had a bit of

a setback and the market recovered. there's a couple things we see we think will impact the market. there's too much enthusiasm. bank of america says their private clients have 60% of assets in stocks it's a record. if you take it to the broader audience, if you will, a third of financial assets of households is in stocks, another record so, that makes me a little bit nervous. the other thing is the people i like to follow, the smart people, are the companies themselves and they're showing too much enthusiasm right now as well they are adding and adding and adding shares at a pace that's higher than what we saw in the dot com bubble yes, they're buying back some but they're dumping it out there. the last thing i would look to say that makes me nervous is margin debt. when people are buying stocks, the market goes up but when you hit a peak and it starts going down, and we're down 4% from the peak, it

indicates that 75% of the time the market's down in the next six months or so those are some of the warnings but look for the exit. don't run through the exit >> sure. >> that's what i would say right now. >> be nimble, stay alert let's turn to some of the names, barry, are these names you would buy now? would you wait for entry points? talk me through the list a little bit >> sure. what we see right now, it's time to rebalance and refocus rebalance, if you're way above your equity that you would normally have in your portfolio, take it back down. use this to rebalance. and then refocus at what you're looking to buy we think quality, quality, quality is really important. and we've seen that in a lot of the quality indices. and what do i mean by that high return on equity, low financial leverage and we like companies that have stable or rising dividends those are the three. and i have a couple names, and i'll get to those if you want me to >> sure, let's go quickly through two of them so people are aware.

asml, the chip maker, semiconductor equipment maker and dan hur are two of them. i want to dwell on this for a moment, you probably heard paypal paypal owns venmo. venmo is potentially look at getting into stock trading and going up against robinhood i'm going to ask you a speculative question, barry. if they were to go in that direction, would that make the stock more or less attractive to you? >> oh, it would make it a lot more attractive. as i said, a third of financial assets in households across the country are in stocks and people seem to have a strong draw that way right now. i think that would be a pretty good move for them and they have the money to do it and the cash flow to do it i don't see that as being any problem. >> this is interesting to me what is your perspective as somebody who's both a money manager obviously. you trade yourself you're watching this explosion of retail interests and now the proliferation of zero trading platforms and trading and the rest of it how much competitive space is

there for all of these new platforms to get into this territory? i don't really understand. is it just because the market share is growing so much or they're trying to take it from others, especially at a time the s.e.c. is warning about gamification and some of the things that made has robinhood so successful. where is this all going? >> that's a great question, kelly. as i look at it, people that think they can day trade, they can't. less than 1% can actually make a living day trading so, that's the scary part. and i've seen it with cousins and other folks, friends of mine that have tried it and in the end they had to give it up i don't think that's a permanent situation. but if people will look and invest wisely, not speculate but invest wisely, it gives a much broader audience and there's still plenty, plenty, plenty of money out there that could move into these types of things. so, i'm not particularly worried about that in terms of having a negative impact overall on the economy or the stock market.

>> interesting also reminds me of the journal story over the weekend that had a bunch of stories about social media and the new influencers in terms of stock picks and all that they said one of the cardinal rules is to always be bullish, that being bearish doesn't grow your followers, doesn't grow your audience. and i'm thinking, that's, again, another sign of a bull market. we'll leave it there we appreciate your time today. barry james from james investment research. let's get to the latest in the fight against the delta covid variant. while vaccines and boosters are getting the headlines, a spike in cases has led to a need for more treatments. companies working on antibody drugs, let's bring in meg tirrell with more on this angle of the story >> some of these drugs have been available on the u.s. market since last fall from eli lilly and regeneron. and regeneron's drug was used to treat president trump when he got stick with covid-19. there's one on the market with

vir partnered with gsk dr. fauci targeted these treatments saying early treatments can reduce the risk or hospitalization from 70% to 80%. they're for people with severe risks either because of age or underlying health conditions regeneron tells us that from early july to now the usage or at least the shipment of these doses has gone up from six fold from less than 25,000 doses before mid-july per week to now more than 150,000. hhs also tells us they've seen significant increases in ordering in recent weeks primarily from areas with lower vaccination rates. and you can see here that region in the southeast accounts for almost half of the orders we've seen since july 1st. and then the area around texas for about a third of the orders we've been seeing. vir technology ceo telling us

he's concerned there could be a shortage of these drugs. they're the only company that doesn't have a government purchase order eli lilly and regeneron do they say the supply is plentiful. lilly's drug was paused in the united states because its combination wasn't working against some of the variants the fda says it works against the delta variant and now has been unpaused in the 22 yellow states where the variants are less prevalent these drugs getting a lot more use now in lower vaccinated areas. >> unfortunately friends of ours in florida, this is literally what's happened to them over the past couple of weeks i'm curious as people are starting to speculate about whether delta has quote/unquote peaked, what can you tell us about case count hospitalizations i suppose it's these people trying to find comfort as the numbers continue to spike. >> the numbers are scary, 100,000 people in the hospital right now with covid

these are numbers we didn't expect to see again after the vaccines got started rolling out broadly. i have seen notes suggesting that at least the pace of the increases has been slowing, and that is some good news but it's not the news that you're looking for, which was the case numbers and hospitalization numbers and death numbers being as low as they were back in june and now with schools going back into session, there's a lot of concern about what we'll continue to see throughout the fall >> we're talking some of our neighbors and said do we need to set up little bubbles again for the winter i don't want to deal with this all over again, but here we go meg, thanks so much. meg tirrell with the latest on the covid front. coming up we're continuing to follow the damage from hurricane ida. we're tracking the destruction to the energy supply and looking at how much it could cost the insurance industry the latest on both of those fronts in a moment

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bad will the damage be richard, it's good to see you. first of all, how's the damage this morning as we know? >> well, a lot of facilities are out of power, and roughly 2 million barrels a day of capacity are offline right now luckily the stormmissed many o the more vulnerable areas, and it could have been worse it could have been up to 4 million barrels that are out >> is that about 12% of supply, roughly, speaking? >> let's put it in terms of gasoline that's like 750 barrels a day of gasoline and in the united states we consume over 8.5 million barrels. so, it's a big number. that volume typically is supplied not just to the gulf coast area it also goes up the pipeline, the colonial pipeline system to the u.s. east coast,and it's exported mexico relies on u.s. gassing exports. so, really all three regions are a little bit vulnerable here to

this loss of capacity. >> so, we've seen a lot of shortages crop up for various supply chain shortages are we going to see a repeat of that >> from the refiners perspective and the terminals, i don't think so there's roughly 8 million barrels of extra inventory in the u.s. gulf coast above what would be a minimum level u.s. east coast is a little bit tighter, but 8 million barrels of capacity, that could cover this outage for a couple of weeks, let's say so, at the refinery level, we're probably okay. at the terminal level, we're okay the question we always have is is there panic buying. that's what happened when we had the cyber attack, the ransomware attacks and other things where people start filling up their gas tanks. there really is no call for that there is no shortage now, and there doesn't need to be a shortage over the next few weeks. >> i understand that one of the things we're waiting to find out

is just how long refineries will be without power, that the situation today from a storm that hit yesterday is not so much about what's happened in the past 24 hours but about if these outages persist for a week or two weeks or even three weeks, right >> that's correct. most of the refiners learned their lesson from katrina. they hardened their refineries they moved their equipment up above typical water levels they made it more resistant to wind so, the facilities are likely not damaged or not extensively damaged. the key question is when will they get their power back. now, what we've been looking at entergy, what they're supplying. several refineries have power right now. it's not like the whole region is down. several refiners still do not have power we would expect one to two weeks for facilities to come back, assuming that energy works at getting power back then the refiners have to go in and assess if there's any

damage and then the restart process typically takes a couple of days if this is over in one or two weeks and supplies are adequate for one or two weeks, we'll probably be okay >> yeah. and i think sort of the second path of that would be if it goes on for longer, then we'll see. >> exactly we just don't know what will happen if there's another storm. people have been comparing this to katrina katrina was unique it had -- it was the largest storm of its time. the u.s. economy was roaring, gasoline demand was high, refineries were running full out, and it really caused a lot of problems. and it was followed immediately by another hurricane three weeks later, rita. so, that one-two punch really spiked things up prices back then spiked by a dollar a gallon or more. we do not expect that to happen

this time. prices up four cents agallon prices are up compared to a week or so ago, but a lot of that is the global price of crude oil has moved up over the last week. >> sure. those differences you pointed it oare quite jermaine, both in demand and the addition of the hurricane in 2005. >> i want to add one more thing. because the u.s. east coast is supplied by the gulf coast, if we have a price effect, we should see it in the east coast as well as the gulf. >> sure. i'll let you know when i go to fill up in a couple weeks. we appreciate it today, keepin us posted in the energy complex. shares of a firm are soaring as amazon moving into the buy now, pay later market. peloton is down 15%. more on these movers right after this

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welcome back, everybody. let's get a quick check on markets. the dow hanging on to a slight gain, the s&p up half a percent and the nasdaq is strongest today, up 1% we have a bunch of individual movers shares of affirm are up huge after announcing they are teaming with amazon for buy now, pay later. just extraordinary leading the s&p after barron's s recommended the stock -- i'm sorry. this is hp hpq shares are up about 3% on the session. dell up about 1% meanwhile capital one is on the worst performer on the s&p, now they feel the risk reward trade

is skewed to the down decide sof is down almost 5%. let's get to rahel salman for a cnbc news update hello everyone here's what's happening this hour president biden is set to discuss hurricane ida with governors and mayors whose states and cities have been hit by the storm ida came ashore as the fifth most powerful hurricane to make landfall in the u.s. ida's death toll remains at one, although casualties are expected to rise. many roads remain blocked and cell phone service is knocked out in some areas. in afghanistan, evacuation efforts are winding down the pentagon saying there is still time for remaining americans to get out of afghanistan. and on "the news," troops staying alert for more terror attacks and full remarks about

afghanistan. you're updated back to you. coming up, hurricane ida tearing through louisiana at a category 4 storm now a tropical storm making its way across the u.s why ida could become one of the stest orcolistms on record and what it means for the insurance stocks next. stay with us retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.

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welcome back the rescue and recovery effort is continuing today after hurricane ida slammed the gulf coast. billions of dollars in damages are likely contessa brewer with a look at what it will mean for the insurers contessa >> first big u.s. hurricane to make landfall this season, and insurers with exposure in louisiana will likely see a hit to their third quarter analysts, with estimates coming in of more than $15 billion and in some cases as high as $25 billion but of course there's flooding that continues in the region authorities are out assessing the storm's impact as we speak so, we may not get a real clear cut picture just yet but here's what happens. typically after a hurricane, 65% of the insurance claims that come in come from homeowners' policies, 30% from commercial lines and then 5% in personal

auto that's according to a note published by wells fargo analysts alise greenspan she says reinsurance could kick in for insurers with major exposure in louisiana. so, for instance, state farm has the highest market share at 23%. progressive has 12%. all state has 10%. berkshire hathaway 7%. and then musaa has 5%. aig, travellers, chubb, the hartford have far less but exposure here. two things we'll watch, whether this adds to the pricing power we've seen to insurers, they typically can only raise rates in these regulated markets after they show proof that the damages are exceeding what they're charging for policies and whether companies pause share buybacks to see what the rest of the hurricane season brings. as far as ida goes, the storm itself is predicted to go to the

northeast bringing more rain to already saturated states think of tennessee and all it's been through that could mean more claim and tornados add to the insurance risk we know the tornado watches and warnings are widespread. so, right now it's just that the insurers are bracing to see what claims that they're going to tackle coming in and where they're coming from, kelly >> absolutely. contessa, that's great information. thank you, contessa brower our next guest says when you combine covid, rising prices, higher prices are likely to see with us for a while. kathy, it's good to have you so like we've mentioned there's a lot of reasons why insurance companies might be able to raise rates. how much of an increase do you expect and which stocks should benefit the most >> well, as contessa was staying in her piece, the personal lines insurers are a little more egg are lated and it's a little more difficult for them to raise rates. there's a little more

justification. there's a lot more tightness, if you will, in the commercial line space. so, i sort of have a little bit of a positive bias in the commercial lines market, and i like chubb i think they're well positioned to raise rates i like a specialty insurer i think aig that has several panels, not the least of which is restructuring and the splitting up of the life in the pnc group. so, i think there's some catalyst there but i do think the combination of multiple catastrophes and expected heavy storm season and the multiple risks that you mentioned are all fuelling an increase in insurance rates. and that ultimately becomes the catalyst for the stocks. >> yeah, because the way we're all having this discussion almost sounds like these companies want storms to happen. they can't wish for these losses

>> no, and honestly if you look at what the stocks are doing today, the uncertainty is weighing on them and clearly no one wants losses. there is excess capacity in the insurance marketplace. and the sort of supply and demand calculation is such that, you know, losses extract capacity, which drives up premium rates. they clearly don't want the losses they're all in a good position to be able to pay the losses i don't necessarily think the incremental increase in rates from these catastrophes are going to necessarily turn the market the way it would if we were coming into this hurricane season in a soft insurance market the market's already hardened, so incrementally i don't necessarily see this as much as a catalyst, more of sort of one more piece to a puzzle that leads to firmer rates.

>> and, you know, it's interesting because i remember writing about this topic at the "wall street journal" probably 15 years ago now, 10, 15 years ago, something like that, and even at the time there was discussion about the market's a little soft, there's excess capacity, how are we going to get to hard market, how are we going to raise rates so it feels like a perpetual nagging problem for the industry and somehow they seem to survive, arguably thrive, i don't know that much about it, in this kind of environment. let's talk about the other pressures they're facing for instance, cyber risk in particular there's a lot of losses on these policies the prices are hardening dramatically it's really expensive to get this coverage. what do you think is most important in terms of people having to pay more for their insurance? and, again, does that go back to which names you would recommend to here people hold on to for the remainder of this year >> well, i think it's important a interesting and important to separate people paying more for

their insurance versus investors kaps capitalizing on a market phenomenon those are almost conflicting goals, if you will so, i think the -- you know, the cost of transferring risk has become more expensive over the last two years it is what it is as it relates to cyber, i think the one thing, the uncertainty over how cyber insurance coverage is going to be structured going forward is something that i think investors and industry watchers need to be aware of ransomware is currently covered or the payment of ransomware is covered under certain policies an argument could be made that that's fuelling some of the ransomware attacks so, i think we're going to see a restructuring of the cyber insurance market we've already seen -- cyber insurance is the line of business with the greatest

increase in rates, bar none. so, i think we're going to see some structural changes in that marketplace. >> yeah. and as you said with wide ramifications for businesses in this country so, again, going back to your strong by recommendations, all state, buy on aig and chubb. tfts great to have you here kathy. we appreciate it kathy seiffert of cfra research. still ahead, the pain continues for peloton with shares down today and 13% over the past month we'll look at why analysts are cranking up their resistance on this stock right after this. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform.

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welcome back, everybody. peloton had been a stay-at-home darling as gyms were closed for months it's recently been hit on multiple font ares, disappointing earnings, a price cut. joins us now to discuss peloton

investors' new reality, lauren why do you think this is prompting such a gut check >> sure. well, thanks for having me, kelly. and i think there are really a number of factors at play here like you said before the break, if you're a peloton investor right now, it really is a good analogy to think of this as cranking up the resistance a notch or two on the bike essentially what is happening here is peloton is still growing, but the landscape in 2021 is certainly a lot different than what it was last year and growth was coming very easy for peloton last year, so much so in fact that the company ran into a number of supply chain snafus had to invest in fixing that part of its business just because command was so heightened but now investors are really staring downthis new reality and i think what prompted a selloff of the stock last week was the fact that growth in the future is not going to come as profitable as it has in the

past there are a number of levers that peloton is having to pull on in order to keep fuelling growth and a lot of that means additional costs one headline last week was the fact that peloton has reduced the price of its original bike product by about $400. and a number of analysts i spoke to said that cut came sooner than they anticipated and was a little bit larger than they expected so, that leaves some scratching their heads as to why peloton is making that cut. a second factor at play here is the fact that peloton, you know, they need to find new pockets of growth, new customers. and in order to do that, they're really going to have to ramp up marketing expenses i actually spoke to president william lynch on the phone after those earnings results came out and he told me they're going to lean into marketing in the next few months to ramp up awareness of its treadmill product as you may recall, peloton recalled both of its treadmills earlier this year. and the less expensive version, the tread, is going on sale

again today. so, peloton, for this fiscal year that just started, it is not forecasting to be profitable it's not forecasting to be profitable again until the following fiscal year. >> and, i mean, you talked to simian siegel who's been bearish on the stock for some time on the value wation. even today he's on one end of the spectrum, obviously warning that a lot was already baked into the valuation and where shares were trading. it's also interesting to see citi initiating with a neutral these come with big glamorous releases about how great the companies are. for them to initiate with a neutral fearing moderating growth, they think their colleagues have extrapolated recent strength for the next few years. and it speaks to a change in sentiment. maybe that's the setup for the stock to reach that next level once expectations come down. but i'm not sure if the price is there yet. >> definitely. and i think last i checked

analysts average price target on the stock is right about 130 bucks per share. of course that's a bit above where it's trading at today, and i know it's down about 3%. but i mean, there are a number of things that peloton could do, a number of catalysts that could drive future growth. one is going to be additional product launches i think everyone's waiting to see what peloton is going to launch next. when john foley was asked about that on the earnings call, he held off there have been rumors about a rowing machine or stream equipment. peloton is also continuing to launch overseas into new markets. recently it launched in australia. so, it's a bit of a wait and see game, like you said. >> absolutely. lauren, it's a great piece thanks for joining me today. head over to cnbc.com to read her full piece check out this mystery chart. it's a travel stock. it's climbed nearly 10% over the past month despite the spread of the delta variant. while the stock may be up, it's

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welcome back to "the exchange." with covid cases still surging in the u.s., travel and hospitality companies and their investors are trying to gauge the appetite for get aways phil lebeau has a look into the details and seema mow da is tracking the details >> it's not just cancellationsm cancellationsment. you're just seeing softer bookings we asked the folks at aig to track the number of seats. they do this on a monthly basis. it's pretty clear what we're seeing for september and as you go into the fourth quarter in the month of september, the number of seats or the capacity that the airlines will have out there, it's going to be down 9.1% and in the fourth quarter, it'll also be down just 6.8% but remember we're still early we could see further cuts for the fourth quarter and all the

major airlines are trimming their schedules. this is not a case of a few trimming it. it's across the board. here's the reason why. look at the passenger levels we have plateaued. it was down 21% in july. started to see softness in the second or third week of august really fell off -- i wouldn't say fell off, but we saw a slowdown last week there were nobody who over 2 million a day in terms of passengers, we haven't seen that in a couple of weeks we're talking about american, delta, southwest and united. all of these guys are expecting business travel to be a little softer this fall and typically september/october is when you start to see stronger business travel they're not seeing that so far so, you're seeing weakness there. and then when you look at the other airlines, they're also seeing some weakness in terms of people, whether it's with bookings or in some cases near-term bookings or near-term flights they've cancelled. customers have cancelled those flights. that's why you're seeing just an interesting and tough period, kelly, over the next couple of months for the airlines. >> how big a catalyst or in

terms of annual demand -- obviously i would assume bigger for leisure than for business travellers how big a deal are the holidays as we get into that period and people are once again going not this year? >> i think itdepends what we'r seeing with covid-19 i think it's clear people have decided, look, i am going to travel even as we're seeing resurgence in cases, there are still a number of people out there it's not like travel has fallen off a cliff like it did a clear ago. at the same time i think there are a lot of people out there. they have decided if there's a surge in cases we're going to put off that trip. and we may see that for the holidays >> phil, thank you phil lebeau tracking the latest on the airline front let's turn to steven with the dwer jen si, some holding in there, others dropping back, others charging ahead. >> yeah, they used to all move in tandem, kelly, but now you're finding investors are becoming a bit for selective, if you will it's the names that are betting

on the vacation traveller that are outperforming so far in august, if you look at the cruiselines up around 9%, 10% so far this month and then you look at the hotels, a very different story there hospitality giants are down around 4% to 10% part of that has to do with the growing concern about the business traveller the expectation was that come labor day companies' employees would be coming back and would start to check into hotels but now there's this new survey from the american hotel lodging association which found that 67% of business travellers are planning to take fewer trips this year. we heard from chip rogers, i know you interviewed him as well he's saying that hotels were already on pace to lose more business travel revenue this year than they did in 2020 now, if companies do delay in-person work, does that

increase demand for remote working? that seems to be the consensus among sales site analyst track airbnb this tells you the story so far in august. airbnb up about 8% versus marriott which is down a similar amount and that, of course, you tend to think about airbnb as a travel stock, but the market puts it in that stay-at-home bucket on this idea that if the delta variant becomes a bigger concern, people prefer to stay in a home versus a hotel. things are going to get back to normal by labor day. no, it's going to be years, i don't know i don't know when. it's going to be more of a slog than i thought on that note, seema, what is the latest with this eu directive about travel from the u.s. now >> reporter: yes, so what we're hearing is that europe is restricting nonessential travel for americans to europe and will come down to the individual member states to come up with their policies and their guidelines so wait to hear from italy, spain, france among other

countries in the next 24-48 hours. one of the criteria europe uses for a safe list is that a country has a stable to decreasing trend in covid cases. that's not what we're seeing here, and that's why you're seeing europe respond with these restrictions international travel will be a bit more complex going into the fall and the holiday season. i know you were looking forward to that girls trip with me we may just have to delay that to maybe early next year >> how many screaming children do we want i guess my question would be, does this imply -- >> reporter: bring them all. >> does this include quarantine periods? i will send them and take a rest does a quarantine period mean you can't travel there at all? what are we talking? >> reporter: two officials i spoke to in italy said they may go back to saying vaccinated americans only, we will allow you in waiting for those details in >> seema, really appreciate it still ahead direct listings

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2021 has been a record year for ipos with 279 companies raising $104 billion and we still have a quarter to go the names have have gone public have underperform the companies that have hit the markets via direct listings like palantin, spotify and coinbase access is for institutional investors there's one company granting access to individual investors. the co-founder of rainmaker securities it's good to have you here tell us what you are doing and what you think it's so important

to help people get access. >> thank you, kelly, for having me it is a broker/dealer enabling a marketplace for private securities transactions. we help investors before they go public most of the growth has been occurring in the private markets. we enable employees and shareholders to get early liquidity while the company is still private. >> are we talking high net worth or accredited investors or the public >> we enable all sorts from the biggest investors in the world to some of the smaller investors. we have a variety of techniques. and we're one of the largest market makers. heretofore were very difficult to access. >> does that give you a point of view in which they go public, direct listing versus spac

versus traditional ipo >> it's an interesting question. you mentioned a couple of the direct listing companies companies that choose to direct list probably are already great businesses and have a great following and that's probably one of the reasons they are successful ipos. otherwise they wouldn't choose to go public via direct listing. we see all sorts of companies. they need to be ready to go public we do get a lot of information seeing how they trade up, the types of investors in the private markets and it does become a good indicator in the public we are a good early view of how successful these companies will be >> i guess one final question and i want to get to some valuations, if it's becoming the elite way of going public you'd have to think it might attract

companies that wouldn't otherwise qualify so think might enjoy the halo effect. >> i think the companies themselves have to stand on their own. i think the quality of companies creates the success of the direct listing the companies are all great companies. they're well known they didn't need the traditional marketing expose fureexposure. i don't think a direct listing will create a great company. i think the opposite is true >> let's pivot to spacs now. a nice write-up this morning how law firms and others are trying to come out in defense of the spac which is really not gotten a great reputation what's your own opinion? >> a company that is public company ready will determine its own fate a lot of money raised early in

the last 18 months in the spac market they were chasing deals and there were companies that were ultimately spac'd into companies that weren't ready to be public companies. i think a company does need to be able to go public the ordinary way or else it's not going to succeed i think there were too many examples of spac companies that really weren't ready to be public and that's why they haven't succeeded. i think we're seeing a rationalization of that and more scrutiny of companies that become part of a spac ipo. the quality going public via spac is much greater than it was even six, nine months ago. i think that will be a trend a spac will be a viable alternative to going public. i don't think the quality of company is going to be diminished versus a traditional ipo when the spac market was super hot. >> it's an interesting point greg, thanks for joining us again. we'll talk next time about some

of these private market valuations $100 billion greg martin, we appreciate it. >> i'd love to let's look at how the ipos have done. the renaissance ipo itf is flat. remember the year last year? it's up less than 2% this year snowflake up just 2% this year palantir a 10% gain. peloton weighing on it big time down 33% that's it for "the exchange. "power lunch" begins right now stick around kelly, thank you very much welcome to "power lunch. here is what's ahead on this busy hour. knocked offline, hurricane ida shutting down almost all oil production in the gulf the ceo will give us details and a trader will give us his next play and from the economy to earnings to events, it's conference season. yes, the three things that should be on your radar this