i bought calls in pulte during the show >> cvs you're going to see more booster shots producing earnings and the balance sheet continues to get cleaned up >> okay. and shannon? >> love jim's trade but paypal's mine we're already landed with many subscriber, and i love the idea of expanding that. >> all great stuff have a great long weekend everybody. thanks for watching "halftime. "the exchange" begins now. thank you, brian and hi everybody i'm kelly evans. here's what's ahead this hour. a big disappointment on the jobs front with a silver lining in wages. on top of that clash comes the clash between the confidence of consumers and ceos does one explain the other we'll explore what the conference board says. and in the aftermath of hurricane ida, are insurance premiums for people and businesses about to spike? we'll look at the storm's impact and what it means if these events become increasingly

normal plus, first exxon, now chevron. engine number one is revving up to take on another oil producer. we begin with today's market action as dom chu enjoys his long labor day weekend the dow is down 95 points. the s&p flattish, down by 4. and the nasdaq is the only one in the green today, hanging on to a green of 21 or 22 points. let's look at a bigger look at what's going on in the market so we get a better feel for the jobs number. let's start with metal things like silver spiking 4% today. golder higher as well. even copper turning positive on the week, not what you might expect if we're talking about a macro slowdown story platinum up a couple percent and palladium in the green as well some of the casual dining names falling, carnival down 5%. a significant move to the down

side down which does jive with what we heard in the slowing in leisure and hospitality. we have a couple big earnings movers to talk about look at mongo adding 12% today pagerduty, 11% and dock ewe sign. here's where the report came out, 8:30, we saw the initial spike lower as people were concerned about the headline miss then we saw this lift higher, which we held throughout the session today as more analysts look at the impact of higher wages on the fed's future progression, even if they punt on the taper for the time being. let's get out to rick santelli for more market reaction for us. rick >> yes and let's look at the charts and talk about maybe a postmortem on exactly what prompted that big u-turn, kelly is talking about looking at intraday of 10. initial drop down to 1.27, 1.28 and boom we did a u-turn

if you look at a one-month chart, rates are firming in the u.s. you contrast that with 1.5 month charts going back to the middle of july, you can see they're much hotter in europe. next thursday is their policy meeting. many believe they're going to have more religion with regard to buying programs than our fed does at this point in time it doesn't stop there. look at their currency fresh two-month highs for the euro and the dollar index hovering at fresh one-month lows what prompted the u-turn kelly hit one of them. but up .6 on average earnings month-over-month prior to covid, there was only one time that occurred that was very early with wh the data series started. there's another issue. if you predicted weak jobs report and you were long treasuries looking for rates to fall, you were correct but what happened is there was a reassessment whether it was the pricing on the earnings or the

notion it's not going to dramatically change the timeline of the fed if you don't get paid, you cover your positions so, they started to sell they're selling when it's aiding and contributing to new wage numbers brought in we are not only up a handful on the day. we're not up on the week on long-dated treasuries. kelly? >> great explanation, rick thank you. rick santelli in chicago now let's get to washington, d.c. breaking news and new details on taxes >> kelly, democrats are debating a laundry list of potential tax increases at the ways to pay for their upcoming $3.5 trillion spending package i got a copy of the changes under discussion, and they include familiar provisions like raising the corporate tax rate, though it doesn't specify whether that would be to 28% or something lower like 25%, establishing a minimum corporate tax of 15% and reforming the

international tax code however, there are new ideas as well, including an excise tax on companies that buy back their stock. it doesn't say what that rate would be there's a new tax on corporations which average worker pay by a certain amount that's something senator bernie sanders has proposed multiple times and a requirement for billionaires to pay taxes on unrealized gains on publicly traded assets like stocks. that provision would apply to 600 people but raise hundreds of billions of dollars. there would be a cap on megaretirement accounts. it would require a distribution if an i.r.a. exceeds a set threshold. not all of these provisions are equal weight the document included excise tax on plastic and a carbon tax. it is unclear how to pay for the

$3.5 trillion spending package is heating up. the democrats are weighing which dials to turn and how far to turn them as they face that september 15th deadline to finish writing the text of this new bill and deliver on president biden's economic agenda kelly? >> looking through some of these items, elon, as we are learning more about them, the stock buyback excise tax, for instance, would apply to publicly traded corporations that buy back a significant amount of stock to reduce the amount of tax arbitrage compared to dividends and stock price they can treat buybacks as deemed dividends to all shareholders this would be a good deal and this is one of dozens of things under consideration here would you say this is the first flushed out picture we're getting of how the budget would be paid for? and this doesn't list which ones would contribute which dollar amounts to get us to that total. >> yeah. the dollar figure, the ultimate revenue raised will depend on

where those thresholds are spent. what is the rate for the excise tax? what is the rate for the corporate tax? and which number of these items you would have to put into the pie in order to raise that $3.5 trillion number so, one of the things that was surprising about this list is that it went beyond what the biden administration had previously proposed in terms of its menu of options to pay for the spending package so, there are a lot of different ideas under discussion because democrats are trying to find that compromise that can get enough -- all 50 -- democrats on board with this plan but yet not necessarily alienates the moderates like joe manchin so, you might have to do some unconventional provisions in order to make that happen. >> yeah, manchin just publishing that op-ed in the journal. we'll have to see which of these will be required to pay for that we'll turn our next guest,

billy is constitutionist at the report given the news that's just crossed, do you mind reacting to what elon just laid out? what are the market implications >> for all the rhetoric that we just heard, i think the emphasis is still to put the burden of financing of reconciliation and infrastructure on the corporate sector we're spreading it around a little bit differently but ultimately it falls in the corporate sector the principle was to try to avoid taxing the average guy and average worker but we all know that the corporate taxes always fall on the working guy. and 75% to 80% of those corporate taxes go there so, in my sense of the assessment of what's going on is we're endangering the fed's ability to fight inflation because the offset to the higher wages that we see, the high inflation that we see today, are the parts gaining investment thars being made in the

corporate sector if we endanger that, we won't get the offset the feds have to do much more in the aggressive tightening. >> in the view of the world, we have sticky tax pressures, corporations paying higher tax, meaning the economy is less productive so, the fed has to come in and throw the breaks on for everybody and slow the economy in a way that might not have to in a strong productivity world let's go back to one of the points you were making which was that the biden administration doesn't want to increase taxes on people making below $400,000. so, it's turning to the corporate sector and people are pointing out the point that you're making which is that imples italy this acts as a tax or a break on the economy, in part, like you mentioned, because corporations still employ people and maybe fewer of them there are plenty out there saying this is exactly where the u.s. should be turning because the corporate tax rate was

substantially higher just a few years ago with no discernible negative effect. what is your reaction to that? >> i would say that the fed has really had no inflation problem to fight at all. they had a disinflationary problem. we had so much in the way of productivity gains and downward price pressure they're trying to achieve their 2% target. we could redistribute the burden of taxes together. but i think the easier way to do that is to collect more revenues by closing the loopholes that's easier said than done everyone says we should close loopholes but it seems that is the front that no one seems to address and instead is going through higher tax rates i think that's a misguided policy i think the other thing to keep in mind is the bigger the spending packages, the bigger the demand has put out in the economy the more the fed will have to fight later on because the private sector is where we want the growth to come from, not the infrastructure-type spending which is quite minimal,

but really the reconciliation package of putting entitlements out there. that's the danger we have to keep an eye on >> how big are the loopholes how much revenue could they raise? and how would you tie this back to the labor market? >> i think the one thing we need to keep in mind is that you and i pay our taxes because it is collected directly from the salaries where the loopholes would be all the write offs that companies have as well as individuals have, especially the higher income individuals, in being able to reduce the instance of their taxes. so, those are the murder in the third degree so, those are the myriad of things that have gone through the tax code if there's any headway to be made, that's where it's going to be made. by raising rates even more, it just incentivizes more of these loopholes to be put in place >> ironically, i believe the democratic bill would still support repealing the salt cap, giving more tax breaks to high net worth earnings bill, thanks for your time this

morning, especially pivoting to this issue and being able to explain so well. we do appreciate it. we'll check back soon. that's billie of the milken institute. the s&p and nasdaq are hovering all-time highs even amid slowing jobs growth will this have a bigger reaction to markets if policy makers react in a knee jerk way joining me now pnc chief finalist and tangler investment cio. what's your reaction to the wage pressures we all saw and what this means for the fed >> even though we have weaker job growth expected in august, we still see the economy add an average of $750,000 per month over the last three months that's a very solid number i think there were some one-time factors, weight on job growth in august i think the economy is expapding. i would expect stronger job growth through the rest of this

year and i think that the labor market overall is in good shape. there's competition for workers that helped drive that big increase we saw in average hourly earnings over the month and i think the things despite down side risks, the delta variant still looks pretty solid. >> nancy, you know you're focused on productivity gains, which billie was just talking about. he's concerned they could be under threat here, depending on how the economy evolves. how would that affect the way you're invested? >> well, i agree with gus. i think that the average hourly earnings pop is also somewhat driven by the fact that services jobs grew at a zero pace so, what we prefer to look at the employment cost index, which smooths the movement between occupations and jobs, and that number will be very important to look at as it relates to productivity with corporations having $6.8 trillion in cash on their balance sheets, despite the new

potential tax proposal, they're using it to buy back shares but also to invest in capx, which will continue to drive productivity so, since april we've been moving our portfolios to a greater focus on tech, cloud, semis, the things that are going to drive the narrative and the productivity narrative in the coming years >> and you also, as i see, are putting on some hedges, let's call it, into the broader market's performance for the first time since early last year before the pandemic really set in why is that? >> well, you know, some of this is just instinct, kelly. but much of it is just driven by the fact that can you find high quality cheap stocks if you can't, that usually is an indicator that the market is begins to top. and there's always the aaii which is the american association of individual investors bull bear metric and that peaked a couple of weeks ago. and that usually leads a market crush.

we've been a long time without one. we've been expecting one for a while. we thought this was a good time since the insurance is pretty cheap right now with the vix at low levels >> final question with report of mixed signals but overall your belief that the economy is strong and expanding, should the fed delay the taper? >> we were expecting that the fed would announce in their early november meeting that they are going to start to taper in december that doesn't change. i think you saw some fomc participants who were pushing for a sooner reduction in the balance sheet. but i think we'll have the september jobs report will come out in early october i think that will indicate better job growth. and i think the fed is on track if they wait until november and start to reduce those purchases in december. >> all right phil could be a 2021 event gus and nancy, thank you for your reaction and thoughts today. coming up, the delta variant is putting a dent in consumer confidence, but one group's optimism is back to pre-pandemic

levels it might surprise you, the details next plus insurance rates are on the rise as extreme weather around the country becomes more common we'll tell you what it means for your wallet and why you may not be covered at all in some cases. stay with us exchange" on cnbc.!8( y prtg n ■

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welcome back, everybody. the delta variant weighing heavily on jobs data and consumer confidence in particular not everyone is feeling superpessimistic here. the university data in august tumbled to lowest level since 2011 it was worse than when the pandemic started now, in a recent survey from kpng, they showed ceo confidence is back to pre-pandemic highs, with 60% of executives confidence about the global economy over the next few years. so, what explains the gap? steve osland joins me. steve, it's great to have you. i mean, normally i would say, well, the ceo confidence is a good sign that hiring will continue but i'm listening to what just came out of washington, what ylan mui told us about tax proposals to pay for the budget,

and i'm wondering will this confidence last. >> it's a good question. in this survey it was done prior to the delta surge here. so, it was done back in july and it was focused on the next three years. so, i think ceos are looking at this thing they were a little bit more bullish. if they did it today, i'm sure that the ceos would be less bullish. if you're looking at a three-year timeline, ceos are thinking things will get somewhat back to normal. the confidence board's consumer confidence index was terrible. it was a six-month low but it was guiding future expectations. that's the measure of the here and now, what consumers are experiencing and that was driven almost entirely by the resurgence of the covid virus and the concern that jobs will cut back. so, you saw in the jobs report today exactly that happening with especially the service industries now cutting back or at least plateauing in job

creation so, i think everybody is sort of coalescing here and putting the brakes on. i think the headline, kelly, is covid lives, jobs die. >> wow, which is unfortunate 18 months into this when we were hoping to start to get back to normal much more quickly i don't know which of these is going to be enacted and to what degree we have now proposals to raise the corporate tax rate to have a stock buyback excise tax, to have a tax on excess corporate ceo among other items here to pay for the $3.5 trillion budget tell me what you think the important numbers are to watch there. i mean, we know a lot of this is posturing. we've seen a lot of these proposals for years and years and years, what's the biggest one on your agenda >> $3.5 trillion is incredible that's almost as much as the entire budget for the united states, and we're running a trillion dollar deficit on that natural budget

this would be 100% debt. you can raise the corporate rate but you're not going to raise more money we've proven that over and over and over again to extent that corporations do have to pay higher taxes through and they'r not able to restructure, it will get passed through to the consumer in terms of pricing all of this lands on the economy in one way or another and it diminishes the growth. you have to worry about what happens to inflation and the value of the dollar as you continue to put more and more trillions of debt on there at some point, you know, the dollar doesn't become an attractive reserve currency and you start slipping into higher and higher inflation that's why when you look at today's inflation, you don't know how much of it is an imbalance between supply and demand and people starting to get nervous that debt levels are getting too high >> it's always something that's floating around out there. i guess the last thing that i would ask is about delta itself. do you pick up on anything in

high frequency data that would suggest that a moment ago we said delta spreads, hiring p stops. but hopefully people say it's peaking, thestock market is obviously looking past it. could that be the case with corporate america or no? >> well, you know, part of this depends on the employees, right? so, the conference board just did a return to work survey, and 42% of people say they don't want to go back to work. they're really worried and that's double what it was just a couple months ago delta is impacting this. and that's particularly the case with women and millennials and we've got more than a third of people who are surveyed saying they're looking to lead their organizations, especially those organizations that require in-office work and especially those organizations that require vaccination. so, you've got a lot of different things pulling here. if companies can't get the labor they need, if they can't get back to normal, if the travel industry doesn't get back to

normal you're going to see the brakes put on again. and these things don't happen just rate bli where it smooths out. you can get a really fast stop to this thing and it takes a jump start to get going again. so, that's what we're worried about here it was all looking pretty good but delta has thrown a big monkey wrench into the works >> that's an amazing stat. only 40% of workers want to return to work permanently that's so shocking i almost don't believe that it's so low but it makes sense. >> it makes sense. you have 20% of people saying i want to work permanently remotely smart companies are trying to make it voluntary. they're trying to get into a cadence of in office but they're trying to make it voluntary. but you can't do that in the service industry you can't cut hair virtually we've got to see how the

vaccines hold up this is the other thing. two vaccines, we thought we were done but now you're seeing the mu variant coming through and overriding the vaccine there's still a lot we don't know about this skpriers the mutations and the impact on people and the vaccines and therefore the impact on companies and the economy. >> well said steve, thanks for joining us again. it's good to see you coming up, reddit is looking hire to advisers forts i ipo, but will wall street bet on wall street this isn't just a walk up the stairs. can watch over your heart. ♪♪

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markets. dow is down 48 points. come back story as we head into the afternoon. s&p is up. tech sector hits a record high you can see behind me. we have cue pa and caseys on tuesday, rh, lululemon and gamestop on wednesday. and affirm reports on thursday remember shares soared 50% on news of partnership with amazon. kroger wraps up the week on friday we're likely to get commentary on rising costs and return to grocery stores as people are concerned about delta. from wild fires to hurricanes and heavy rainfall, the summer has seen it's fair share of natural disasters it's causing insurers to 'lte yss coverage and costs. wel llou what it means for businesses and individuals alike businesses and individuals alike in a

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welcome back, everybody. as the south and northeast dry out and clean up from ida's torrential rain and wild fires still rage out west, no surprise insurers are sounding the alarm

about climate change contessa brewer joins me now with who the industry is pointing the finger at >> the damage costs from hurricane ida are mounting, and the outlook for properties damaged by flooding, 70% of the louisiana flooding happened to properties that do not carry a flood insurance policy, according to core logic. 46% didn't have coverage for wind damage. this storm ought to be a wakeup call to government, to businesses and to property owners that they need to get real they need to grapple with how much severe weather costs. more people are at more risk, she told me, than they think, and low risk doesn't mean no risk moderate risk means you probably flooded in this storm. flood insurance is available even if it is not mandatory. but yerkes says only 4% of the

people who live outside fema's designated flood zone choose to buy flood insurance, as if the threat stops on some line on a map. data analytics helped inform fema, which is repricing federal flood policies to more accurately reflect the risk. wild fire coverage is now difficult to impossible to secure in parts of california unless you go to specialty insurance. and the big carriers, chubb, aig, travellers, have limited their exposure altogether. now those coverage policies can cost ten times more than even a few years ago. but because they're highly regulated, because the state regulators, kelly, decide when they can ramp up the prices, some of these guys say there's just no money in it. we've got to get out of the game altogether >> i'm wondering about that as we clean up. contessa brewer with the latest on the insurance front

now for a cnbc news update rahel? >> hi kelly. hello everyone as the taliban prepare to announce that mullah bar bah will -- many stayed away before because they were afraid of pick pockets. since the taliban took control, thieves have been much less active chanting we afghan women are all together, a group outside kabul's presidential palace called on the taliban to respect their rights there are widespread doubts taliban will keep promise. how "the news" plans to approach afghanistan's new government after missing the olympics, national hockey league players are set to play in the winter olympics next year the league and players will have an opportunity to withdraw if

the pandemic is bad enough coming up quickly already. rahel, thank you very much rahel solomon. from redditers to stakeholder, apple's chip tip ahead of anticipated iphone 13. and data centers is erwhe the action is. those stories all coming up in rapid fire right after this.q■

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lrlt everybody let's catch you up on a few stories that should be on your radar this friday. it's time for a friday tech edition of rapid fire. so, here to break down the headlines, we welcome jon fortt, gina sanchez, and e na freed we are thrilled to have you guys all here let's begin with reddit. reuters is reporting that they are seeking to hire advisers for ipo. the company was valued at $10 billion in a private funding last month sources say that reddit helps

value at more than $15 billion but like robinhood, could reddit turn into a meme stock, jon, or is that the point? >> i love you've got john, ina, ina. you've got the separate reddit the product from the potential stock. $10 billion sounds like a lot until you consider pinterest at 36 billion, triter 30 billion, snap, facebook but reddit was founded a year after facebook and a year before twitter. so, why is it going to grow faster from here when it grew slower up until this point >> that is a very interesting point. let's get your take on it. is this the type of company you would want to own? has the retail trading boom postpandemic unleashed a whole new possibility of frontier or whatever you want to call it from reddit's future evaluation? >> that's possibly however i agree with jon that they've been around for a long time

and they've managed to catch some great momentum because of this meme stock craze. but they're joining the game and catching up with their much, much, much bigger brothers and sisters at a time when congress is still thinking about section 230, the communications decency act, and it poses some real questions for that entire space. so, it's just a challenging time to be coming in to this particular play. >> you guys are clearly not going to be part of the army here once this thing lists what about you >> i have to agree with gina, when you look at reddit, what's great about it is it's this huge discussion board for the internet and it is really valuable that they've managed to capture that community. but on the flip side, that's a lot of content to navigate, moderate, be held accountable for. and they don't have facebook-like advertising revenue against it they have a solid business they have advertising revenue. but, you know, facebook is generating huge amounts of cash.

google's generating huge amounts of cash, which lets them weather the new restrictions easier than reddit you know, to be honest, twitter has this challenge too where there's less revenue to cover a huge amount of content to moderate and i think that's exacerbated with reddit. >> all right here is a look at the meme stocks today, trimming slight declines here. but their persistence has confounded, especially the sizes of the trading boom. labor day weekend means the end of summer. it's apple season, literally apple shares have had a strong run over the past few months they closed at a record high yesterday. and strong underlying demand for the upcoming iphone 13 he says 215 iphones have not been upgraded in about three years. taiwan semiconductor is hiking prices today, 20% increase what does that mean for the 13

price and its tradeup attractiveness >> i don't know if it will mean as much as for the price apple is big enough and has enough cash to weather it in the sense what they tend to do with their cash is buy capacity so that they're the least affected by supply crunches and downturns. i've got to take this reflective the mistake people make with apple for decades is short turnism. ten years ago it was safe to say tim cook's legacy will be judged whether he comes up with the next iphone. no, it was just execution. that's it. >> what about the apple car, jon? are you a buyer of that idea that yesterday people have been floating the idea that that's tim cook's legacy is the apple car. >> no. not to say they won't do it, but it's ten years and it's a $2.5 trillion stock. he came up with the apple watch,

air pods icloud didn't exist before tim cook as ceo. think about that >> it's astonishing. i totally agree with you one of the great transitions of all time what would you say about apple we have this we have the walk back of the icloud scanning for photos this morning. so, they're under pressure on the app store. they've reversed course on that, alienating users they are -- they do have a lot to contend with. >> look, i mean, they're a huge company. there's no more apple the underdog and they're going to have to juggle many things simultaneously, which you're seeing them do right now to jon's point, i think they'll weather the chip shortage better than anyone else because they probably saw it coming and they typically have their capacity lined up ahead of time. i think on some of these other issues, there's a lot of pressure, particularly the app store. we've seen them make all these concessions around the edges to try and hold on to the things they value most, which is no competing app stores, no competing payment mechanism and

full control over their commission structure those things are still under pressure and i think will be over the coming years from students and from regulators >> yeah. and again as we show that chart there, year -to-date really impressive in the last few months if you want to add your position on apple, please remind me but i think nvidia is up this week they're taking the price target to 260 that's 16% more upside would you be a buyer of nvidia, gina what about apple nvidia is one of the best performers in the past decade. it astonishes to keep watching and going here >> so, yes, actually, lito advisers owns both nvidia and apple. but i will say the nvidia bet has been a bet that was already in place before the pandemic and just got a huge pandemic boost because they built out so much cloud infrastructure so, their cloud and data center

capabilities really put them on the frontlines but like i said, that trend was already in place and it's not going away. if anything, the move to the cloud has just gotten bigger >> i think nvidia fits into two major trends i'm looking at when it comes to trends writ large, especially when it comes to the enterprise space one is the cloud provider market we're talking about mark bell about that a few days ago. if you play there, in a way it's great. but you've got to have advantage with intellectual property or diversification that keeps you from getting cannibalized. so, think about nvidia and nvidia on in that context. and the other thing is customization. and that's certainly where arm comes in for nvidia and other players. you have to be able to not just give them hey you can have any kind of car you want as long as it's back when it comes to chips in the cloud you've got to be able to do

customization or the customer is going to do it themselves and cut you out. >> they've done very well. and intel shares down fraction nally today. finally today and speaking of gaming, morgan stanley is declaring activision blizzard one of its top non-faang ideas for 2022 it's currently around 81 that's 50% upside from here. activision shares have had a tough three months as they grapple with legal issues. morgan stanley is confidence in blizzard pipeline. activision, blizzard, all the gaming stocks have performed so well they're clearly taking a pause, a bit of a reset here postpandemic or close to postpandemic does this make sense for you as a top pick going into 2022 >> well, it does make sense to me that people are wondering where are we with gaming you're coming sort of hopefully maybe out of the pandemic. you know, how much time are people going to have for gaming?

i really think the demand is always there for gaming. so, i don't see that going away. i think the industry is reckoning with a couple things i think you're seeing some stuff about the culture of these game companies and they're going to have to spend more time on the workplace they're trying to create and i think the other thing to watch with the gaming companies is how productive were they during the pandemic. the gaming industry was one we wondered how well they would do during remote work a lot of collaboration, a lot of long hours in the office, can that be replicated those are question marks >> are you a buyer of activision blizzard >> i think it's an interesting idea activision had a huge pandemic boom and it's not only been grappling with the news you talked about but also the fact they're going up against really difficult comps. but they're settling at a level that was higher than they were during the pandemic. so, in some ways even though,

yes, they're down significant where where they were a year ago, they're still much higher than they were two years ago that's the point they've managed to benefit from that trend and the question now is can they hold on. i think they can >> and jon, i saw you nodding. we have to go. you think this is going to be a cultural shift for them? >> i think it's a big question around platforms in games right now and who's going to control them companies are trying to be platforms we subscribe to buy. microsoft and sony are trying to do that too. apple and google have been trying to do that and get challenged unity software and epic. all of them are trying to do it. who ends up getting the platform and profit benefit is your question that's where the question is >> thank you all john, gina and e na today. from investments in cold brew, juice and yogurt, we're going to talkto a venture capitalist about this. what's working in this portfolio and what's next?

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campus apartments saw significant rental growth last year and this year already joining me is the ceo of campus apartments, among many other things it's great to have you welcome. what kind of start are we getting off to in the fall >> i personally just dropped my daughter off to college about a week ago so they're all back at it, back in school. it's a different momentum than they had last year this time, that's for sure. >> prices are up for off campus housing. that's what we heard >> demand has been strong. what you're seeing this year in particular there was a cohort of students that took a gap year last year that are coming back this year so you have a little more volume than in the past >> yeah. although a little bit of volume now at what could be drying up later. i think "the wall street journal" was writing a piece in the last week or so about the decline in enrollment expected to be an existential challenge for smaller colleges and universities starting in

2024-2025. i don't know if that's the thing you worry about now or we're not modeling population growth >> there's over 5,000 colleges and universities out there it's like any business they need to adapt i can tell you this, in five years, ten years from now there will not be 5,000 universities and colleges out there there are some that aren't the value proposition for mom and dad paying the bill. it's just not there. campus apartments focuses top 100, 150 schools we're not worried about the decline in enrollment. >> and you think those will be fine one more question and i want to ask you about a few other areas. real estate has been the top performing sector for 2021 does that make sense to you, and what kind of future returns do you think are realistic? >> it does make sense to me. i read your earlier report about the housing index and where housing prices are and agree with what you said i think real estate has been a safe asset class for investment, someone's home and institutional real estate where we play and that slow and steady growth of current income you can't beat that.

and i think on top of that you have covid slowed a lot of construction starts and with raw materials more expensive and labor shortages that kept the supply boosting the values >> yes so you're in the camp big real estate you do think it's going higher let me ask you about a few other things you're involved in with darco capital. we've seen a tremendous amount of new companies coming to markets this year. a lot of maybe buyers resmmorsef spacs. a recent ipo, is this all the good thing of access for the public or do you think retail investors are getting a bad deal here >> i think it comes back to education. wheels sup a real company with real revenues. you're seeing some of the spacs are playing in companies that might be too early to be public in the prime time. a company like wheels up that announced our second quarter revenues over $1 billion, that's a real business. >> don't you think taking 20% is

just a bad deal, period, by the backers of these spacs >> i think it all comes down to -- remember, they don't get the money unless the spac does well and performs. unless there's alignment with shareholders and that's how we did our deal, that's okay. >> all right, well said. david, thanks for your time today. it's good to check in with you david adelman the ceo of campus apartments still ahead, chevron could reportedly be the latest big oil name to face off with engine name to face off with engine ermb or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions we have those details next every day in business is a big day. we'll keep you ready for what's next.

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welcome back, everybody. activist engine number one is reportedly revving up to take on chevron now in its latest proxy fight. after meeting with executives. leslie picker joins me with the story and the latest details >> reporter: kelly, a source close to the matter telling me engine number one did meet with

executives at chevron. however, this is not anysort o official campaign and unclear whether engine number 1 has amassed a sizable active stake in chevron "the journal" reporting the activist firm had been putting out feelers to chevron investors to see if they would be interested in forming a group to take on this company as of now this appears very early stage, but it's getting attention today because of chevron's oil major peer exxon engine number 1, if you recall, took on exxon earlier this year in what was at one point considered this long shot proxy fight, and they won securing three out of four desired seats on the board the defied odds to make exxon more sustainable forcing the hand of other large investors had been outspoken about making their own portfolios greener on the heels of that success it's not too surprising engine would seek out its next target carrying a playbook that worked. a spokesman for chevron telling

cnbc it has, quote, contingency plans to respond to events including an activist investors, the company knowing it engages regularly with shareholders and looks forward to discussing the next chapter of its lower carbon story with them later this month. kelly? >> leslie, do we know what engine number 1's goals are for exxon? >> we -- for chevron, you mean >> either way. >> reporter: obviously they have three seats on the board there with chevron it's a little less clear. however, their whole ethos, the whole impetus behind the firm, is this idea of taking on companies that may not have the top-ranked esg profiles, oil majors being in that category, and going in there and trying to help shift their strategy to be greener and lower their carbon footprint. that was certainly the case with exxon as well as changing some other traditional activist things like capital allocation

strategy and cost efficiencies and things of that nature. and then it's expected these conversations with centered around the carbon strategy of chevron as well. so you would expect at the next campaign that engine number 1 officially launches would be in that same category >> i'm curious what that looks like in practice leslie, thank you so much. be sure to catch her hosting cnbc's special "the fall reset" with a look inside the five speculative corners of the market it's at 6:00 p.m. eastern time at 2:00 p.m. eastern it's time for "power lunch." and hello, everyone. i'm eamon jofavers. a huge miss for the jobs report. is the fed taper off the table for now entirely and how do we get the millions of remaining unemployed people out there back to work and a spectacular meltdown $75 billion wiped off the market value of compa