>> josh? >> don't tell anybody this, but very quietly, matterport is up about 12% in the last week i don't know what's going on a lot of news being announced. very exciting situation. >> very exciting tiffany, your final trade. >> farfetch. they own luxury retail that's it. i'm quick. >> that's it they own it. all right. guys, some really new and interesting picks on final trades appreciate it all. thank you very much for watching "halftime. we'll see you tomorrow "the exchange" begins now with markets at record highs. yes, they are. thank you, brian hi, everybody. i'm kelly evans. here's what's coming up. return or resign ahead of tomorrow's closely watched jobs report, new data shows job candidates either getting more interested in returning to work or never coming back to their old jobs at all. we'll explore what it means for

the big jobs report in the morning. plus charging ahead in the strong quarter but still down more than 50% from their 52-week high we'll speak to the ceo to discuss these numbers and what's next for ev. and cars, cost concerns and canned goods inflation and supply chain issues weighing on earnings across nearly every sector today some names to snap up despite the headwinds coming up in rapid fire. with the s&p and nasdaq, how many stars do we get to see today? dom chu is here with the market action >> it's amazing how much you can change the meaning of a word just with the emphasis resign versus re-sign. as kelly pointed out, the gold stars out for the s&p 500. hit a record high after the opening bell and cruising to the higher side. the nasdaq, same thing as well it's actually a fairly even day across the board, about 0.25% to 0.5% gains but the s&p 500 still above the

4500 level and nasdaq above 15,000 a lot of traders saying maybe this has some legs and could be a breakout in the making we'll continue to watch those indices. also on the cryptocurrency side of things. we did see bitcoin earlier today show a little bit of life there, cracking back above that 50,000 mark it's been trying to hold that ever since ethereum prices have been on an absolute tear. that orange line over the last few months here has actually more than doubled in value so ethereum far outpacing bitcoin. their massive move higher. and then our stock of the day is a stock we don't often talk about but it's the best performer in the s&p 500 so far today. by a wide margin a 10% gain for quanta services what is quanta it's one of the biggest makers of electrical power grids for utility companies. not a utility itself, but it makes all the stuff that utilities use. they are going to buy vlatner

group, a maker of renewable energy projects and grids. that company is getting a bid because everyone thinks it could be a great deal down the line if there's a continued push for that green investing, green energy, esg-type investing watch quanta services. a big move higher. it gets a yellow star because it hit a record high today. >> that's a great story, dom thank you. dom chu. stocks are climbing today, this time despite morgan stanley cutting third quarter gdp forecast by more than half it's down to less than 3% growth from its original 6.5% estimate. why do investors keep shrugging off a slowing recovery let's ask my next guests mark smith is a senior vice president from wells fargo advisers and brian mcculley from the hennessy funds welcome to both of you mark, why no greater concern for all the slowing growth we're now starting to see? >> thanks for having me back on, kelly. the economy and the market

remind me of this book i read in high school, "the tale of two cities." its but the best of times, the worst of times the real estate crisis at all time highs cash on hand in americans' pocket at all-time highs and you've got my clients who are small and midsized business owners just got out of a pandemic and coming all the way out. they are leaner and meaner than ever all good things on that end but we're seeing reopening from my clients in corporate america saying they don't have to be back to work until 2022 '23. the fed is really dovish they're not talking anything about raising rates any time soon and you saw this week the u.s. is on the list of countries that europeans shouldn't travel to. so a lot of different things that we're looking at but value is where i'm seeing opportunities, specifically in the financial sector you're seeing that from '08-'09 they haven't come back like a lot of other sectors have. and their diversified revenue streams, it's phenomenal

credit cards, mortgages. wealth management. asset management investment banking if you are talking about this like a tech company, it's so funny that the financials are competing against the tech company. they are in competition for their life and all of these companies are doing really well on the financial side. financials for sure and materials is another sector to look at. every one of my clients who is buying a home or renovating a home, all their materials up 20, 30, sometimes 40% and the waits are 9 to 12 months to get things i think the material sector really has a good story as well to continue the performance. up 17% year to date. >> let me turn to you. you like car max, rh, allegiant travel what would you say to those sort of -- why do markets keep doing well even as the data point toward a loss of momentum? >> well, we still have a very accommodative fed. stimulus programs are robust and

consumers have a lot of money in their pockets to spend there are difficulties hiring employees. employees are getting raises and i think there's a general belief about this reopening experience we're having so when we look back and take stock of where we're at, we're up fivefold with dividends reinvested in the s&p 500 over the last 12 years since th bottom in '09. and we're seeing a lot of relatively speculative activity in the market with meme stocks back approaching their highs with spacs being so popular. aggressive growth companies, you know, being very richly valued and so our approach in this market is really to look for areas that are not so hot but still have a lot of value to them we're finding that in some reopening plays and transportation carmax, allegiant travel, rh are good examples of that. >> do you think the market

overall is going to underperform in the years ahead >> i think we're looking at a mid to high single digit total return in equities over the next decade and so it's, you know, probably below historical averages. but relative to fixed income, you know, i think it's a pretty good place to be especially with interest rates as low as they are. >> let's pick up on the low interest rates, and talk about the financials for a moment. rightly or wrongly they do trade together so, you know, if you think interest rates are going up, financials are an obvious play but what if they don't tell me howyou think or what you'd do with that trade if i told you the 10-year would still be below 1.5% next spring. >> that's a great question there's a good indication it could be based on how dovish the fed is but i think these financial firms have found a way to make money when all the winds are blowing against them and so the fact that they really diversified, the ways they make

money and they are really competing well against a tech industry that is coming for their neck i'd still stay long the financials no blaert matter whee interest rates are all you're seeing is value there. and so i would continue to have that, no matter where rates are in the next 12 months. >> all right, mark smith and brian mccully, thank you both so much for talking through these markets on record highs today. let's turn our attention to china with authorities summoning 11 ride-hailing firms over illegal behavior as the crackdown on companies continues. shares of didi, they are lower another 3% today and down 50% from their all-time high in july eunice is live in beijing with the latest for us. >> thanks, kelly that illegal behavior is unhealthy competition, disturbing market order or recruiting drivers who don't have the right perm mitts. so the transport ministry ordered that companies need to

improve their workers' conditions and sort out pricing for drivers and rectify, they said, all of these unfair tactics by the end of the year separately, china tightened its controls on show business. promising that they would rein in salaries for celebrities, harsher punishments for impose harsher punishments for tax evaders and mandated broadcasters ban artists who have incorrect political views or effeminate styles companies as you can imagine are scrambling to fall in line with all of these beijing initiatives. alibaba for one confirmed to us that it is investing more than $15 billion to support president xi's common prosperity goal. funding small and medium sized companies and farmers and when the social media platform weibo shut stock tip accounts that have millions of followers but that have been deemed by beijing

to be bad mouthing the financial markets as well as economic policies >> let's pick up on this because we're also hearing out of china this move to create a beijing stock index, crack down on more speculative areas of stock trading. what do we know and how does that fit into this move against ride hailing firms >> we don't know a whole lot of detail at this point in terms of the way it might relate to ride-hailing firms, not so much except that there's been some speculation that this is one way that president xi could try to attract other companies that list overseas to china because the government here is trying to support the -- and promote a lot of the financial markets here in china, vis-a-vis -- compared to other parts of the world so this new market in beijing is going to be focused very much on small and medium sized companies. president xi said the government is going to deepen the reforms for the new third board which

also specializes in small and medium sized companies he wants to make beijing the center for innovation oriented small and medium sized companies. not a lot of detail on what that exactly means except the stock market regulator very quickly, i might add, put out a statement saying that they are very excited about resolutely implementing president xi's order. >> and we are very excited to see how that all goes u, eunice coming up -- boosted jobless benefits for millions of americans are set to expire this weekend. new data suggests more people may already be interested in returning to work. the latest sentiment read from both recruiters and candidates plus, catastrophic wildfires in the west are putting america's water supply at risk posing a threat not only to wall street but to businesses in every industry we'll tell you how it affects water stocks next.

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welcome back to "the exchange." with federal enhanced unemployment ben put its set to expire on monday, the job market is still tilted in workers' favor. here with the latest from recruiter.com sentiment index which can often give us a

glimpse of what the official jobs data will show us tomorrow, i'm joined by the ceo of recruiter.com. overall it seems like sentiment is pretty good >> yeah, the recruiter sentiment is the same as it was last month which was at our high since the pandemic at a 3.9 out of 5. the interesting thing is that, remember, august is typically not a great month for recruiting neither is december. and yet even in our own business we're seeing really record numbers across the board really for august itself. so the sentiment is certainly high >> so to you, that would point to a strong overall jobs report tomorrow >> i would say that we're certainly seeing more backfills starting to happen now candidate sentiment was the same 3.1 out of 5 that it was last month but that meant it didn't decline for the first time since april. it didn't decline. and we're hoping that it's gearing up for candidates getting ready to go back to work

and either go back to a job since they've been unemployed or to actually start that great resignation or great reshuffle as we're talking about now >> tell me why you think we're at this catalyst point for a trend that's been firmly under way, which is that people are finally looking to get back to work or maybe looking to change what they're doing altogether. why are you now seeing more and more about this change being picked up in your data >> thank you so much, kelly. we saw this past month was that in the prioritization of candidates we've been neck and neck with compensation and remote work. we saw work/life balance go from 15%, which it was in july to 20% in august. so that's really interesting because it's telling me that as a candidate, i'm more qualified than i was ever before, whether that's the job or programmer or person willing to walk into a factory live they are more qualified. but i want that work/life balance. don't tell me it's only remote

or only hybrid or only in person i want to understand what the balance is and we're seeing in our own ai sourcing tools that we have today the need to be more creative in attracting those candidates we're seeing that across the board. that's a great opportunity for employers to attract candidates and for candidates to get attracted to companies that will be more creative in how they try to hire them >> i see salaries still inching higher more recruiters seeing salaries increase last month. so let's posit tomorrow morning the number -- i listen to you and think it's going to be a blowout and nobody is expecting this adp was a miss a lot of wall street has been taking down their expectations for it would you think that's because the demand side of the economy is slowing and because of delta or would you think that's because there's a constraint that companies literally can't fill their roles so they'd like to hire, you know, the equivalent of a million roles but can only hire 600,000? >> i would say in the equation

of hiring, the top of the equation has to change there are fewer candidates applying to jobs we're seeing fewer people raise their hand and saying i'm more interested in fact, we saw that even in the index. fewer applicants per job than there were even a month ago. that number has to change because there's only a certain number of placements your typical talent acquisition professional or recruiter, be it outsourced or insourced can actually do on a monthly basis if you're trying to attract more people, either i need more people looking for those jobs or i need more recruiters or more talent acquisition professionals to help move people through the funnel and let's add that creativity. so you have all these forces acting together. i want to go back to work but i only want to go where i'm going to have that work/life balance a better salary. i don't have a college degree. i don't always want to go back into my office full time i don't only want to be remote but i want that balance. and as companies start to align, their expectations of the

employees will start having a faster match between what employers are looking for and the candidates >> and maybe wall street giving us a glance of that raising base salaries it's very interesting, evan. we appreciate it always great to check in with you. >> thanks, kelly >> recruiter.com's chairman and ceo. if you want a clear read on what investors think about the labor market, look at the performance of a bunch of names that specialize in recruiting korn ferry seeing a massive 64% gain this year just a few percent off all-time high manpower also having a great 2021 jumping 35%. and it has a lot of global exposure as well and finally, zip recruiter which went public in may up 24% the stock is headed to 35 and above. it's at 26 today coming up -- ford auto sales were taken to the wood shed in august plunging by one-third from a year ago. we'll dig into the data and tell you what one big investor says is the reason to blame

shares of hormel are slumping to its lowest level since the pandemic low since march of 2020. they're down 5% today. even after beating estimates its profit came in line with expectations but why is the stock sliding so much today? we'll tell you what management said on the call 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.

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i submitted an application and within two days had $30,000 in my account. through my experience with sofi, it's lifted kind of that shame of debt. and it's lifted the debt, which has also helped immensely. ♪ ♪ you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq welcome back to "the exchange." dow up 127 points. it's the outperformer with 0.3% gain nad dak up 31. here are some of the movers. we're watching american eagle get its winged clips a little today with its worst

post-earnings loss in two years aftermissing revenue estimates down about 9%. but the real story here is our earnings editor is that retail profit margins continue to show strength american eagle's 14% profit margins, operating margin, highest since 2008 just last week advanced auto parts handily beat estimates thanks to stronger than expected profit margin. something to keep in moind as investors sluhrug it off. costco, kroger, pool company, albemarle and waste management now to rahel solomon >> here's what's happening at this hour. across the northeast, winds and flooding from what's left of hurricane, i da have caused at least 25 deaths. tornadoes reported in new jersey and new york with some homes destroyed. president biden telling the energy secretary to do everything she can to keep gas flowing. that includes releasing gasoline from the strategic petroleum reserve.

>> that's why we're not waiting to assess the full impact of the storm is going to have on oil production and refineries. we're moving already to increase the availability of gas and easing the pressure on gas prices around the country. >> in on "the news," live reports on the ground from the northeast and louisiana with the latest on search and rescue efforts. that airs tonight at 7:00 p.m. eastern. federal highway officials estimate more than 8700 people died in car crashes in the first three months of the year that's a 10% jump from last year even though americans actually drove 2% fewer miles you're now up to date. kelly, back to you >> faster drivers, worse accidents. meantime, sales slumps and delivery delays for the auto sector can five below stay true to its name and are you still watching? netflix's stealth rally. all that is mi uincongp "rapid fire" in just a moment

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welcome back let's catch you up on a few stories that should be on your radar. it's time for "rapid fire. here to break down the headlines, michael santoli, seema mody and zelanos saporo.

great to have you in the mix as well let's begin with supply chain and semiconductor issues continuing to crush the auto industry see the ford numbers sales dropped 33% in august from the previous year. they cut f-150 production. they've cut ships to plants around the country and the tesla roadster is delayed until 2023 he's calling it the year of the supply chain shortages can any automaker handle this problem? delano, what do you think? >> i definitely think there's going to be persistent problems for all automakers, especially this year going into next. i think i like what tesla is doing in the sense of we have a stock that's $740 billion market cap stock that's now seeing some turn around in the stock trade i added to some of my positions over the last month as we saw yield goes down and recalibration of expectations for growth investors look at the largest market share

here, the best player when it comes to electric vehicles i'm sticking with that tesla trend. >> do you think cathie wood is right? she thinks ev sales are going from 2 to 40 million by 2025 she also tweeted last night that she thinks the slump in auto sales from the traditional oems is coming at the expense of growing ev sales share it feels a little early for that we know ford is dealing with so many other issues. this just may be another one at the margin >> yeah, 100% agree. it can't just be just the shift from a traditional oems to electric vehicle this is that supply shortage issue that's happening to all manufacturers. but i do think these right in the sense of you'll see that shift, seeing the government back a shift to electric vehicles i think they are in line with trying to look at ways to increase their percentage of sales. so it's definitely not a complete shift but you're seeing some trends in that area >> seema, what would you add

>> i think referencing supply chain risks is becoming highly convenient for these executives. supply chain means so much it's containers, raw materials, the overreliance on china and other asian countries for semiconductor chips. what they don't unpack what that word, that phrase means, investors and cathie, that leaves the door open >> michael, where do you come down on this >> we're down 5 million units annually in terms of sales from what was anticipated from 18 to 13 million tesla will go from 500,000 sales last year to 800,000 this year the used car prices have soared for gasoline-powered cars. the backlog in terms of orders for gasoline-powered cars and prices are at record levels. to me, two things can be true at once ev shares are going to be going up and this year's decline in auto sales is almost entirely about supply so it really is hitting the dealers in a way harder than

anybody else look at carmax and auto nation shares they are getting hurt pretty hard no cars to sell. no service plans to sell >> those are some of the strongest performers earlier this year. let's turn to more supply chain issues this for seema these have more hopefulen to five below beat on earnings but did miss on revenue. shares down about 12%. analysts at jefferies say this is a great time to buy the dip they love five below's management team. they're well equipped to handle further disruptions. so we know that people don't like the dollar stores in times like these fixed costs. five below, fixed costs. supply issues stemming from china. do you buy what jefferies is selling that five below is well positioned for times like these? >> yeah, there seems to be times in the economic cycle where the consumer becomes a bit more budget conscious and they're thinking about their wallet with every purchase and that seems to be the type of environment where a company like five below would

outperform are we in that environment remains to be seen i read this earnings transcript which i found interesting. they talked about how they're seeing growth in the pets category, which i am not a pet owner yet but i assume if i was, i wouldn't want to spend a lot on all the stuff you buy for a pet and i'd perhap goes to a five below maybe there's amazon for that. and they can participate in all the trends out there because they have that manufacturing footprint in china which i thought was interesting. >> seema is feisty today i am very much enjoying this delano, do you want to weigh in on if you'd buy for your pets at five below or why you'd be more cautious on the stock? >> i think in the near term you're looking at -- we're seeing management guide and be cautious about going forward with their expectations on growth. but i definitely think there's obviously opportunities for investors to look at this as a buying opportunity in the long term especially they just dropped

considerably, year to date, up 9% you have to look at both sides >> got you next up for hormel, not just supply chain headwinds it's the way inflation is playing it into that i mentioned hormel, worst level for the stock since march 2020 management warned of rising costs in the quarter the ceo saying we saw significant inflationary pressure in almost all areas of our business now this is as proctor & gamble is ramping up production of paper towels and toilet paper again. mike, spam might have some pricing power, but analysts have long said the rest of hormel's offerings don't have as much brand strength as competitors. >> right exactly. and campbell's yesterday had similar things to say about the cost pressures, about the attempt to pass them along, about transport costs and

everything else. i do think there's a real separation that's gone on within the general consumer staples area between the food companies, the packaged food companies which, if you remember last year, part of the narrative was, hey, everyone is pantry loading they are kind of learning to love our brands again and re-establishing relationships with the traditional brands. maybe that has legs. and now you're going up against very tough comps and you can't necessarily pass through all the costs. so the market is depressing the valuations on the traditional package food companies compared to p&g and kimberly-clark and colgate-palmolive. >> it's a great point. and there are more diversified they also -- i'll ask delano about the dividend in a moment, but these are names you may have thought, look at the trade working over the past three months tech is winning back to this pandemic feel. obviously you've covered well what's going on in the travel space and yet and yet and yet a

stock like this cannot get a big year >> and to your point, does it really tell you that a company like hormel does not have pricing power? interestingly enough, a couple of weeks ago, chipotle talked about raising prices and the stock ripped higher, whereas what's happening in the hospital ite sector, they're lowering prices because of the cancellations they're seeing and hoping consumers will come in their door we'll see what happens with hormel >> usually if investors like pricing power, they like inflation. they like the stocks when they are raising prices you see that with the strong brand. not the case here. is this maybe a play where you can look to the dividend and say that this is an income play? >> exactly right i am not a holder. not a buyer. more of a growth investor. if you are looking for defensive dividend play, the five-year chart is only up 13% it's really not an area for growth and that's something -- income play here for hormel. >> let's stick with growth and talk about what's going on with netflix. this fits the idea that there

are more of these trades, growth related, pandemic-related trades starting to work again netflix is up nearly 20% in the last three months after underperforming for basically the 12 months prior to that. bank of america saying netflix sees more downloads ahead of big content releases more than 40 movies this fall. could that be behind the climb >> 100%. netflix was kind of trading sideways for a bit caught a big year in the last few months and i think that back load of content, the big area in this streaming battle and competition is that content. everyone is going to shift when they see the best content and stay with them netflix is continuing to add subscribers, especially internationally. opportunities for investors to look at netflix as a play for growth >> seema >> airbnb gained 10% in august netflix gained a similar amount. so a lot of these companies do fit in that stay-at-home basket. more competition now

i will say my favorite shows used to be all on netflix. now i'm waiting for "succession" on hbo and "marvelous mrs. maisel." >> netflix has gone from being the upstart challenger to the incumbent. they are the biggest one and what tv is right now we've had every other conceivable streaming service that could be a threat already launch they're already out there. we know what they are facing of sub ads are and netflix has not necessarily gotten much worse. we've reset expectations on sub growth if i'm reading the market's mind that's partially behind this along with the big content push. just an excuse for more sign-ups and they love these companies with big revenue, recurring revenue subscription base and some pricing power look at charter and comcast making new highs it's not that dissimilar if you look at it as all part of the tv

ecosystem. >> three cheers on the panel for netflix. very surprising. thank you all. really appreciate it michael santoli and seema mody and delano wildfires are ranging along the west coast how that's threatening the watershed and why big business is concerned about that. and we'll talk to the ceo of a water tech company about the innovations being used to help solve it xylum is up 35% this year.

this may look like a regular movie night. but if you're a kid with diabetes, it's more. it's the simple act of enjoying time with friends, knowing you understand your glucose levels. ♪♪ welcome back it's been a summer of really extreme weather from hurricane ida slamming the south and northeast to wildfires exploding across california, even into lake tahoe and those fires are putting watersheds at risk which has a big impact on people and corporations alike diana olick takes a look on the rising risks from climate change ♪

>> reporter: as fires tear across america's west, the risk right now is to life and property soon, it will be to water. >> when we have large-scale fires like this, huge amounts of erosion that end up filling up the dams and reservoirs that store water and that help create hydropower >> like a bathtub fill with mud, the reservoir capacity is reduced and water contaminated it's estimated in california about 70% of the state's drinking water either starts or flows through national forests >> we are feeling a huge sense of urgency to do work in the forest to make them more resilient to climate change and to these large-scale catastrophic fires >> reporter: two years ago, the first ever forest resilience bond was launched by the nonprofit blue forest and its

founder zach knight. it was just 4 million. >> we were well oversubscribed from investors for this first project. >> reporter: that private capital was used to thin and restore about 15,000 acres in the tahoe national forest. investors are being paid back by local water and hydroelectric utilities. and now working with the world resources institute -- >> we are about to launch our second forest resilience bond. 48,000 acres of restoration. >> reporter: the value is six times the first at $25 million and investor interest is so strong, there's already about $200 million in the pipeline for more >> corporations in all sorts of different sectors in the beverage sector, agricultural sector, tech sector, they're all taking this quite seriously and looking at how they can be part of the solution. >> reporter: for tech, many of the data centers which need water to cool themselves are located in water-stressed areas.

but water seeps into every aspect of commerce >> water is essential to our business we need it to manufacture our products and we need it to use our products >> reporter: in just the last year, proctor & gamble provided a $200,000 grant to restore 400 acres in the eldorado national forest which feeds the water supply of sacramento and other bay area cities. that is in collaboration with the forest bond. >> business has a responsibility to address these issues. and for water specifically, i think it's really a matter of identifying those areas where your business may be at risk >> reporter: the return on the forest bond is only about 4%, but investors are more interested in the risk-related returns. that is lowering their risk from costly droughts and dwis ruptions to their water supply and that risk is growing as the climate heats. >> when you mentioned how much water data centers need and companies like proctor & gamble,

can they lead the way in shoring up the water supply? >> absolutely. it's just more about investment in trying to make these forests more resilient, more healthy so they don't burn as quickly as we see more droughts. if they can invest in this type of restoration, that's going to lower their risk we have foundations and water utilities looking to help, but once you get corporate america involved and get some real money in there, that's what's going to make the difference. >> could be a big help diana olick, thank you with major watersheds at risk of losing some of the water supplies that they have, the ongoing water shortages are likely to get worse. water company xylem is using technology to help solve it. their shares are up 65% over the past year. joining me is the ceo, patrick decker i want to mention and make sure i'm reading this that water futures on the cme are up 90% thus year. water is getting more expensive. is that good or bad for a company like yours if you guys do water recycling

>> well, first, thanks for having me. i would be remiss if i didn't give a shout out to all of the first responders over the last 24 hours here in the new york area with hurricane ida. so we talk about the lack of water in parts of the world. we talk about the abundance of water in other parts of the world. and so again, i just want to say thanks to all of the first responders my thoughts and prayers are for all those affected by ida at this point in time this really brings into focus as you've teed up a focus on the three biggest water challenges facing the world right now the first is accessibility to usable water the second is resilience of our infrastructure to climate change and then third, as investors always ask me and that is, how are we going to pay for it so how do we make it affordable? so those are the three big

themes that we put out in front of the public that we have to address. >> so your company, you think -- as i mentioned, if the price of water has doubled this year. this is just the commodities traded it's a very fragmented market. how can your company help make water more affordable? >> kelly, digital is the key and, you know, digital is only as important as it provides data to inform utilities and the users of water to more effectively manage their existing assets. so when we think about the big issues there, you know, we think about how we treat water in a more affordable way. how we test water in a more affordable way and how we transport water to where it needs to be in a more affordable way and the reality is, you know, the solutions exist today that didn't exist ten years ago to be able to address that in a very

effective way. >> so what are some of those solutions? you guys do a lot of water reuse. it can be complement or to desallinization. and if the supply of water is at risk, it could seem like using the current supply is needed give me some example in practice of how that can help address the shortages. >> sure. it's a great question. one of the examples is, you know, one big challenge as evidenced by storm ida is storm water overflow and this is only one example or use case that we share with customers. and that is, how we help utilities and cities meet their epa guidelines around storm water overflow, and we have an example of different cities around the u.s. in the world where, let's use a reference of, it might cost $1 billion to

build infrastructure to catch water and manage that water during overflow. we're able, along with other companies, to do that at 20% of the cost based upon making the existing infrastructure more effective and smarter by using distributed sensing technology and using artificial intelligence to make that grid smarter and make it more agile >> no, i can see why that's obviously a huge interest right now and investors seem to like what you're up toas well the shares outperforming the s&p by 50% year date patrick, thanks for your time. we appreciate it one time bond king bill gross is trashing treasuries we have those details next with the 10-year yield dropping below 1.3% today you can catch this show any time, anywhere by listening to it and flongolwi "the exchange" pod podcast. we're back in a moment

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welcome back to "the exchange." one-time bond king bill gross is taking another bold stance on his long favorite asset class.

gross says bond yields are poised to ride as the fed begins tapering making it trash he writes in a blog post, cash has been trash for a long time but there are now new contenders for the investments garbage cans will stocks follow earnings growth had better be double digit plus or else they could join the garbage truck, bill gross he sees the at theten-year tradg around 2%. he's been bearish on bonds saying he began betting at around 1.25% still ahead, shares of charge point climbing on the heels of a strong quarterly report the stock has taken a beating since going public march 1 we'll speak to the ceo next.

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surging after strong results, but they're still about 50% down from their 52-week highs so up 8% on the session, down 53%. they're not alone. ev go, the ev charging place down 62% from its 52-week high blink charging down 48%. analysts blame the weakness on less than expected items for the senate version of the infrastructure bill. so why is chargepoint so bullish? raising its third-quarter guidance and seeing sunnier skies ahead. the ceo joining me, pasquale romano of chargepoint. great to have you. welcome. >> thank you for having us >> why do you think sentiment is turning a corner here? >> we've seen this trend, i don't think it's really turned the corner it's starting to be realized we're in the early mass market, and that's evidenced by the strong results we just turned in >> if we're in early adoption of the ev market does that necessarily mean that ev charging stocks will do well, or

is there too much competition and uncertainty around what exactly the charging network and economics will look like >> for us we're a tech company, so we sell subscriptions to form a network. we sell those businesses and the associated charges so we link them together. we're seeing very strong demand across all subvertcals in the industry and i think that's evidence that businesses are seeing ev show up in the parking lot and engaging accordingly and so for us it's all about execution, about grabbing that scale and just continuing to execute and taking advantage of the demand >> so, to be clear, are your clindz and customers any kind of business who wants to have charging stations on their property or are they actually

charging stations the hardware themselves >> it's any business that wants to put charging on their property we will obviously consult with the business on the appropriate type of charger to put on the property and the hallmark of our business is the chargepoint network which we build to our business customers on an annual basis. they put in a parking lot so it's a recruiting revenue business >> i know a lot of the bulls like the name because they think it's like an uber or iairbnb without getting into the economics of things. what about competition and consolidation? we see a ton of different players, a ton of different names. no one is sure the horse to bet out in five years' time, let's say. >> kelly, i think that's just natural. it's very natural to not understand who is going to be

able to get through the transition to scale company and this market is breathtakingly large, anything associated with transportation is breathtakingly large. you've seen us announce two acquisitions, one is close and one will likely close in the fall consolidation is part of the equation here i think as an industry what it's about is execution >> is tesla a competitor brian sullivan did a great look at how much better that technology is than a lot of the other options out there right now. if they open it up to everybody, does that undercut your business model? >> not at all. we very much are in -- tesla yields with one subvertcal which is when you're driving beyond your battery range, the everyday charging is mostly handled by

chargepoint and we're making great strides in europe with our customer base there. if you look at our focus in that particular segment of driving down your battery range, you could go quickly, the driver needs something to do because while it's a fast fast charge, about 10 to 15 minutes so we're focusing on the players. >> i'll go to costco with that kind of time pasquale, thank you for joining us today pasquale romano of chargepoint that does it for "the exchange." "power lunch" starts right now kelly, thank you very much hello, everyone, and welcome i'm tyler mathison we are just about 18 hours away from a very important jobs report, one of the most important in years, really if the numbers are good, the fed will have no reaso