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tv   Power Lunch  CNBC  September 23, 2021 2:00pm-3:00pm EDT

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its ground division that handles most of e mers residenttially. >> and way they are handling it versus all the others you mentioned. the stacks are all over the place generally trending higher because of the demands and because of the higher rates. frank, thank you very much we appreciate it today. that does it to the exchange, everybody. thank you for joining us this hour "power lunch" starts right now yes, it does, kelly. welcome, everybody, to "power lunch. glad you could join us on this thursday afternoon here's what's ahead this hour. big rally on wall street mondays losses out of here erased all of the major indexes less than 3% away from their recent highs. how should you play the rally? what should you do maybe nothing. and twitter and strike teaming up to tip in crypto. and was the reddit army
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right? the shares of one-time meme stock blackberry soaring on better than expected results the ceo will be with us to discuss the company's strategy to go all in on a connected future kelly. >> tyler, thank you very much. hi, every. let's get right to the rally fresh session highs, we are just off those levels the dow is up 611 points 178% s&p up 1.5%. nasdaq up 1725%. all of these are pushing markets back into the green for the week. in the bond market yields are moving higher as well, more notably than what we have seen in equities. the ten-year just south of 1.4%. rick santelli saying watch this level. if we close above it it is going to change the technicals it is helping bank stocks. citi, regionals all higher ci citis $71. energy names, devin energy, apa.
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we are going to dig deep sbeer the rally and see what the bulls are buying and what they aren't, bob pisani is down on the new york stock exchange. >> the bears are stunned even the bulls are stunned right now. monday we were down 5% and the bears were sitting around saying finally, we are going get a 10% correction it is about time they have been crushed people have been emailing, why are rerallying can you explain to us? i can give you ideas of what people are talking about powell communicated do not conflate the taper with rate hikes. it is not coming for a long time those rate hikes there is generally a lot of confidence in the economic recovery yes, there is issues around what's going on with the covid variant. but we are still moving forward on that. there is a little bit of optimism about these washington comments that there may be a framework, quote, unquote, for a
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human infrastructure package, some deal coming down road put it together, you have got a rally. even china is being pushed aside. people believe that can be managed somehow. we'll see. the cyclicals are on fire. anything having to do with the recovery is doing well carnival, delta, multimonth highs. marriott is doing well, live nation is doing well same thing with other cyclical groups, the energy and industrial stocks. we have new highs on conoco phillips devin, one oak, which is a natural gas company cabbot was $15 two weeks ago, now $20 today. banks, ten-year yields at two-month highs and the banks have gone nowhere for six months and now are having a nice multiday run here. what's underperforming big tech is underperforming u. see, cyclicals are doing well today and growth is underperforming. it is not down but microsoft is barely
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participating in the rally the bears are on notice that we had the best chance for a correction in a year and a half, and it has been a failure so far. back to you. >> bob, thank you. bob pisani with the latest for us. let's get to more on the bond market right now, where rick santelli is tracking a flattening yield curve rick, i want you to educate me, because i am a little thick when it comes to bonds. let me give you my hypothesis as to why the yield curve mighting flattening one is that the shortened, the two years and lower, investors there know eventually interest rates are going to move higher the fed going to engineer that that brings their rates up at the same time, at the long ends, investors seem to be convinced that long term inflation is not going to start and that the fed will do its best to keep that long term inflation lower. so those rates, instead of moving up, they are sort of staying where they are or coming down therein lies the of the floridaening am i close to half right
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or not >> a plus, i give you an a plus, tyler. you described it perfectly right when we all are right in tune with the major flattening -- remember, tyler, that the antagonist on this was the 30-year bond the 30-year bond was acting sluggish while all rates were moving up more aggressively, especially in five-year and ten-year to some externt but that flattening has been put on hold partly thanks to large part europe and domestic politics look at week todate tens today we popped out to the upside i look at different moving averages than everybody else 34 day and 55 day. my favorites both around 130 right now. they have gone from being above the market to below it which really works out because if you look at the chart going back to 2012 in july and 2012 in july of 2016 those were the previous
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double bond before covid right under 140. that's why any close above this because they worked so well is going to really pop the technicals we have seen heavy selling by ctas and hedge funds as of late. that was one of the big things we were paying attention to not all of it was in long maturities some was in the five-year note yields finally the dollar index shouldn't it love higher rates normally but europe took certain stage with bund yields and express yields moving up aggressively. as you look at the dollar index a 24-hour chart shows it is going down but if you open the chart up to august, it does seem like it's a double top traders are going to pay close attention to that chart. >> if i can get an a plus from rick santelli i will take it any day of the week. our next guest says the best way to play this market is small caps especially if you are looking to hedge against inflation and rising interest
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rates. let' bring him in. explain why you say the small caps are the better way to play right now. why? >> i look back historically, in fraufs and recessions small caps typically lead since the march 2020 lows small caps outperformed large. if i go back over the last six times the red raised rates since october of 1986, small caps have done about 17% so ate has been his for likecally quite good also if you look at the breakdown of what's in the s&p 500 versus the russell 2,000 the s&p is 28% in technology, the russell is about 14% technology does not do well in a rising interest rate environment. i think it is going to be a good time for small caps to outperform plus they have a heavier rating towards financials which do well in a rising interest late
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environment. we want to be long small caps and like the domestic nature of those companies. >> yet a couple of our picks are actually technology companies. porch group. talk to us about that. it is basically a software company, and palomar technology is a technology company. >> yes palomar is actually -- it's actually an insurance company, which is interesting they use incredible technology to get extremely granular on their underwriting they do a great job. they are in their infancy. what i love about small caps in $201712.5 million total addressable market, today it is about $18 million. when you look at porch, it is a bit of a software company. the most painful thing i think a lot of people can do is move they actually are sort of a concierge when a home buyer buys that home. and they will put you in line with anything from buying
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homeowners insurance to internet cable to security cameras. it is a business we like a lot and we think is going to navigate well through this environment is this we heard people in the last hour talking about why small caps could be a good place to go if you want less china exposure while we figure out what exactly is going on with that economy would that also be a reason this area could outperform? how long do you think outperformance like this could last >> to answer that second question, i guess when you look at small caps, you know, when a rate height dc when the first rate hike happens small caps outperform the first 12 months, then underperform over the next six months then over the 18 months, they perform well we would be long term holders and go that route. as far as china, we don't like the exposure to china. we like being more dependent on
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the domestic economy one of our holdings that has gotten to be more of a mid to large company is caesar's, which has no exposure to china or macao versus looking at las vegas sands or wynn. it has exposure. we love not having that exposure and felt certainly comfortable as we continue to do as we see the evergrande saga playing out. >> caesar's is sure pushing its sport betting and sports book on television these days. i think jb smoove is part of that ad campaign let me ask you this. i don't want to go into -- let me give you a macro thought. as you look at the s&p 500, do you think it is more vulnerable today to a downturn? or is this comeback that we are seeing today something that is going to avert or forestall a downturn, and that we are back on steadier pavement what do you think? quick. >> yeah, i think, again, when you look at the just incredible
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exposure that the s&p has to just five companies, i am pretty negative on those larger cap tech stocks that have gotten so popular and so expensive i do think technology is gob to be a tough place to be in a rising rate environment. i would rather be in small caps that do better and have the winds at their back. >> appreciate it good see you. a number of developments out of washington today including senator schumer saying there is a framework for tax increases in the reconciliation bill but the discussions may still be far from over. let's get the ylan moi to break it all down for us today in d.c. >> top democrats met with treasury secretary janet yellen this morning to discuss those tax provisions in the $3.5 trillion spending plan that meeting include tds house speaker nancy pelosi and chuck schumer as well as the irchaman of the tax writing competents, ron wyman and ritchie neil yellen appeared at the press conference this morning with
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democratic leadership as schumer made that announcement. >> the white house, the house, and the senate have reached agreement on a framework that will pay for any final negotiated agreement so the revenue side of this, we have an agreement on >> but the menu of options still looks pretty broad a person familiar with the negotiations tells me there is strong sfoerlt for restoring the top individual rate to 39.6% capping mega iras and getting rid of conservation easement reductions but the difference in the house and senate priorities include the treatment of capital gains, whether to get rid of stepped up basis and new irs reporting requirements still pelosi said the house would begin advancing its version of the spending package soon but on the infrastructure bill she waffled when asked if there would still be a vote on monday. she said only, the democrats are trying to take this one day at a time back to you.
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>> question on stepped uppis this would affect mostly estate taxes, wouldn't it so where do we think the estate tax exemption willwall fall and where the estate tax rates might be and talk to me about stepped up basis because i can't get enough of it. >> yeah. so this is -- had been a major priority for president biden but it's something that was not in the ways and means version of its tax plan because there'sa lot of concern that this could sort of ensnare people who have sort of smaller family farms, it would be investments hand down over generations, they would be taxed when that person dies. one potential compromise that's out there is this idea of carryover basis instead in which the basis would be shifted to the next generation but it would not be taxed at death. that could be an area where the two sides could reach some sort of agreement one of the big issues with this
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is that it is an enormous revenue raiser and one of the things that democrats talked about during their press conference this morning was trying to figure out where they are going to ends up on the spending side to determine how much revenue they are ultimately going to need, and which of those options on the menu they are going to have to choose. >> it is interesting because i look at the estate tax and i think of it as fundamentally something we don't rely on in this country it is fundamentally a tax on wealth as opposed to a tax on income, right? >> yeah. i think that one of the concerns is in how large would that exemption be so there has been negotiations between the senate and the house on increasing the size of the exemption so it would not include some of those farmers who are very vocal and a powerful constituency in washington but the final level has not yet been decided >> ylan moi thank you. coming up, the ceo of strike that ing a deal with twitter. he will tell us why tipping in
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crypto is a big boone for the industry i can see my waiter. i am going to pay new crypto sure, man. earnings on deck for -- nike they clipped it there. it is okay, everybody. it's all good. can it overcome its supply chain issues our trading nation team takes their positions. we have lots more "power lunch" ahead. as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship
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get started today. welcome back to "power lunch," everybody. biden administration set to nominate saule omarova the pace of crypto adoption continues, with a new partnership announced today just an hour ago between twitter and the crypto wallet company strike twitter now allowing users to send tips to accounts in bitcoin. twitter doesn't charge any fees and strike won't take a cut. shares are up. how big an adoption is this. joining us jack mallard, the founder and ceo of strike. great to see you again i want to emphasize, this is as twitter is rolling out the tips feature to all users and integrating with a lot of apps and other things to make that
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happen but from the crypto point of view this is more about providing tips over twitter, isn't it >> kelly i'm back. did you miss me? yes, kelly, it is. they are integrating other monetary networks but let me make this point abundantly clear, the bitcoin monetary network is the only global monetary network they are integrating. you are talking about a monetary network that can achieve transactions instantly and at no cost you combine that with twitter and all of a sudden you have absolute payment disruption that has been a long time coming and i am proud and excited to see night will there be anybody who doesn't want to be tipped in bitcoin? just because in the u.s. it is property there is more tax implications it is more implicated. even though the lightning
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network may facilitate the transaction it is still property, still headaches there. what would you say with strike -- can this feature be used in new york and i am not sure what other states you don't have full licenses in yet. >> last time we talked about the depiction between bitcoin the asset, a precious metal like asset and then the bitcoin network, like the visa network, like the paypal network, like the western union network. it achieves monetary functions on a global network, instant global cash finality i would like to divide those two, kelly what we do at strike is we escrow and settle the value globally, instantly, and at no cost and allow you to integrate with just dollars, just japanese yen, just euros. as it is rolling out, nobody is touching bitcoin we are just using bitcoin to make tweeting at someone as easy as sending money at someone
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anywhere in the world any time any place any currency doesn't matter there needs to be a conceptual division of the network which stands alone in its disruptive innovation in the bitcoin and the lightning network and just the asset. you don't need to touch the asset to gain benefit from the network you. >> used the phrase a couple of times. instant global cash finality i don't know what that means those sound like terms of art, which is fine, i know it is from the world you live in and not the world i live in. that's number one. and number two, where the hell are you? you look like you are in an empty warehouse or something where are you, man everybody knows that innovation is built out a giant empty women's closet i can't tell if that's a rhetorical question or not. >> that's what ifls wondering, it looks like an empty woman's closet not an empty women, an empty
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closet. >> you are a smart guy here's what instant global cash finality means at relatively no cost a western union payment can take zero to eight days remittance to small emerging third world countries can cost up to 50%. why? can the dollars in my pocket in this women's closet land in another country in less than a second at no cost? no how can any money do that? it has to be natively digital and bear that is the nature of bitcoin. close your eyes and picture an dual bitcoin traveling across the global and landing in a physical place instantly and at no cost. bitcoin is the first digital asset to enable that it works everywhere in the world. what the internet did to communication in enabling instant communication protocol and a singular open communication for the entire planet bitcoin is doing that for money. you are going to see a grand
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dematerialization of all of these monetary networks that have fixed cost, credit risk, counter-party risk, credit float. the visas, the mastercards, the western unions they are going to be demon advertised into one standard that can perform settlement in an instant, at no cost and in one fashion, agnostic of our country. >> there are 195 countries in the world. >> who's counting? >> pardon? >> who's counting. >> yeah, who's count but if i am hearing you right, you are saying that bitcoin or crypto can become a and is already a global currency worth the same amount in every place at the same time and so if i am in jakarta, i am getting the same value as if i am in toronto. and that can be a very good thing. i am not having to go exchange rates and so on and so forth
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it's all the same. that's a good part of it, right? >> yeah. you know what, i think, again, we need to separate and divide bitcoin the network and the innovation it delivers as compared to the visa network and the transunion network to bitcoin the asset that can be compared to gold one of the best savings assets of all time a remittance payment nowadays on a platform like twitter or our on platform strike if i want to send u.s. dollars to europe, chaps is strike debits the u.s. dollars out of my chase checking account. i don't need to own bitcoin, i don't know where it is i auto convert to it bitcoin, zips that physical value across the world where it lands in europe in real time at no cost and transfers it back into euros. we don't make you interface with bitcoin the asset. we don't make you a deliver that
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bitcoin is going to go to the moon we are using the underlying infrastructure to be a payment rail to replace the outdated expensive methods that exist today. >> robinhood is launching a crypto wallet. you are checking boxes with state regulators here for your own. can you welcome and embrace crypto waltz from robinhood, venmo, from cash app, other players in this space or are these all rival wallets that you would prefer obviously people to use yours, which is strike >> yeah, we, kelly believe that in an open network, new participants are added in. they are not subtractive you are talking about a open monetary network. in the way that google invites more website to join the internet because it makes google a more valuablecompany we invite more network participants
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to join the world's first open monetary network because it makes our services more valuable we are talking about disru789ing monetary functions as we know it onto a singular global mon monetaried is standard, there is going to be many, many winners in this grand disruption we are excited to see more people join. >> we appreciate you joining us today, jack. we will have more questions, if you will come back and join us in the future. >> next time, some shoes buy yourself some shoes. >> don't hang up on me yet i have got some crocks >> all right thank you, my friend >> take care guys, thank you. >> markets with a nice rally today. salesforce and financials leading the way. reopening stocks having a big day. airlines, cruise lines, travel stocks, restaurantare ees grn across the board much more on the day's big movers coming up
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this hour. delta airlines wants all carriers to share their lists of people who are banned from flying due to unruly behavior to further protect airline employees across the industry. the memo from belteda says it has put more than 1,600 people on its no-fly list during the pandemic. the u.s. is ready to talk with iran about reviving the 2019 nuclear deal. that's according to an unnamed official speaking with reporters on condition the official's name is to the actually used. the official says that iran hasn't indicated it wants to talk. a wall of lava is flowing toward a village the worry is if the lava reaches the see, there could be explosions triggering land slides and generating clouds of toxic glass. the national cathedral is commissioning stained glass windows with a racial justice
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theme. they will replace windows showing two confederate generals the construction is expect to be completed by 2023. let's get a check on the the rally. we are just off session highs. the dow is up 6:21 at the start of the hour. we are up 590 with a 1% gain outpacing the other major averages many of the nameswe talked about earlier, financials, keying off the higher bond yields and energy sector, those are driving the moves? we will talk about some of the reopening names because several of them are among your power movers this hour shares of darden moving higher after they feet first quarter expectations and boosted full year 2022 sales expectations stock is expected to close at an annual time high today shares of del technologies a jump today after announcing a $5 billion share buyback program. the company planning to initiate
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a dividend in the first quarter of 2023. a cruise stocks getting a pop a. reopening play carnival says it expects to have more than 50% of its ships sailing by the ends of october and quantum space continued its rally for a second day the company announcing earlier this week it signed an agreement to work with another top auto company for the usage of its lithium batteries. it is up 21% this week. ahead on "power lunch," the energy sector is the best performer not just today but for the week, the month, and the year we will get a check on oil prices come up. and blackberry shares got caught up in meme-mania back in january. butit 345i not have been redditors being nostalgic about their first phones we will talk about the company's successful pivot and what more they are doing now stay with us (judith) in this market, you'll find fisher investments is
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the oil market is close forth the day as it does every day around the time. price is near a two-month high let's go to pippa stevens at the commodity desk >> it does close this time every day but today is a good day for oil building on yesterday's strength, jumping to the highest level in seven weeks sentiment in the broader market is supporting prices for crude specifically, easing travel restrictions means more demand and ongoing supply
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issues wt sirks at $37.30 right now for a gain of 4.5% crude up 1.4%. also lifting oil price is this remarkable run-up in gnat gas, which is up about 4% today after taking a little bit of a breather over the last few sessions if prices stay elevated, utilities could shift from gas to oil should also note that energy is the top s&p sector today, up more than 3% also the best sector for the week, tyler, and the month back to you. blackberry is one of today's big movers the stock up more than 12% on a narrower than expected loss and strong demand for it is signr cyber security and internet of things software products shares up 63% this year. blackberry's foray into cyber came after its ditched its hardware business. once a leader in smart phones the market share declined sharply. now with software it gets more
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than 0% of its revenue from cyber. joining us to discuss blackberry's future is john chen, executive chairman and ceo. good to have you back with us. for those who vant followed blackberry over the past few years, would you define the company today for us in a phrase or what, what is blackberry now >> thank you, tyler. we are now a security software company. as you pointed out earlier, 60% of our revenue comes from cyber security, protecting governments and banks and infrastructure of sports and the remaining revenue mostly comes from automakers, tier one of the automakers. so we are big in both the electric vehicle and the connected cars with our software that's going to the operating system, the safety, for middle wear to how cars connect with and talk to each other that's what blackberry is today. >> i find it fascinating
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you have engineered an amazing pivot. in the electric vehicle or automotive heir area are you also largely involved in the security feature, cyber security >> that will be the next move. safety are mostly our number one blame to fame in that. and then a lot of the john structures -- yesterday we announced that 24 out of the 25 ev producers in the world today, the top ev producers in the world uses blackberry software in their designs mostly, it is for safety and other functions like advanced driver assist and those kinds of functions. >> cyber security, $120 million out of $1275 million quarterly in revenue margins are high what is the growth projection there in cyber security software and software products? what are you looking for there in this area that is so critical right now? >> well, we always be looking
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for double digit growth in terms of buildings and so that -- because it is more of a subscription revenue stream, we are going to see that revenue start coming in over the next two or three years. we expect for example, next year that everything is going to see double digit growth inclusive of revenue and building that's how we think about our business today. >> john, are you going to continue to sort of invest in both aspects, where you have the cyber business, you have cars? or will you kind of wait to see which opportunity is the better one, and then kind of double down on that one going forward >> we just, kelly, we just organized ourselves in these two units going after two growth markets, one is the iot market specific cle on the car side of the equations as well as the
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cyber security sector going out to businesses protecting businesses we are going do both the iot today has a little bit of head winds because of the ship shortages around the world for the semiconductors, shortages for the auto but that's going to be short-lived. and we are seeing our revenue coming back. and the cyber as we talked about earlier is going to grow we are going to double down on both we have a plan to do that. >> how, as you look back on it, there was a time when blackberry was a meme stock a reddit darling. as you look back on that experience or analyze it today, what were your feelings about that was that a comfortable time for you or an uncomfortable time >> we don't run the company -- i have been here seven years we don't run the company based on daily stock price changes it's always nice to know that, you know, we have been noticed it's also nice to know there are a lot of retail investors that like the name. and we see it.
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but we are not going to react to, you know, daily stock volume, huge volume and pricing. so given that, i can't really describe to you whether i am comfortable or not comfortable since we don't engage in that or react to that, it doesn't change any operational item we are okay with that. >> as you are sitting hering the me this i am looking at a chart of your stock n. january it was up in the 20s. it has come down but obviously, that was a moment in time when blackberry became one of those meme stocks and now it is reacting presumably much more traditionally to earnings and revenue and so forth, which is going in a very nice direction. john chen, thank you. >> thank you, tyler. >> you are welcome. still coming up, we will take a quick break we will check on power house, the latest in our blueprint sirz we are going the look at all the things that go into your home. last week we built the house
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today we furnish it. which home furnishing stocks are a buy. before we go to break, look at the dow, up 570 points. financials leading the way stay with us
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welcome back, everybody. we are continuing our series on building the perfect power house portfolio. this week, our focus turns to the home interior and the different brands that make and sell the things that furnish your home, things like copy of couches, tables and bedding sold by companies like wayfair, ethan allen, rh and temper sealy which names are the best buys? ken leon joins us from cfra. great to have you. a lot of these names already moved up substantially on the pandemic work from home trade. wrl do you think is the most opportunity today? >> we will still see a multi-year secular change, which has been really positive for home furnishing. up 30% we have had a pause this summer on whether consumers will shift to leisure or services but you know what? the wealth effect, the enjoyment of live, work, and play in the home means on the demand side
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households are flush with cash and they are fixing their homes. and home furnishings, including bedding s a big opportunity for the industry, better than ever before, certainly before the pandemic. >> why is that because especially as we have seen costs go up, we have supply chain shortages and issues i understand that demand may be high but is it high enough to compensate for all of that >> everybody is talking about the housing markets. even though 296 million people, households don't move, they realize their homes are worth more and if they are hybrid or remote employees today and they are part of the affluent sector, they are fixing up their homes and lifestyle becomes important. there's a shift in terms of making your home, perhaps, more contemporary or coastal or transitional so i am fine with the demand side the real issues we have is on the supply side, as we have seen across different industries. >> absolutely. so while we have those concerns,
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can you still -- names like restoration hardware i imagine they are enjoying healthy profit margins. anybody who aims at that price point is wayfair, temper sealy, why has a name like wayfair, they are seen as kinds of a low cost destination, so they have to keep costs low, number one to be competitive. number works it is a delivery business, and we know the challenges that they face. >> it is an e-commerce platform. it's really going for that part of the segment that doesn't want to go to target or walmart for furniture but when you look at brick and mortar retailers, there is opportunities to do it better their customer base has grown, literally from 20 million in 2019 to 35 million today, and growing. so it fulfills kind the mass market touching near affluent, and they have a good formula that works. >> how do the digital retailers,
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whether wayfair or to the extent that restoration goes through the digital channel -- how are their margins affected by returns? because often you will buy a rug or you will buy a ceiling fan as my spouse just did when it arrives it doesn't look anything like it did on line or in the catalog >> that's a great question you know, retail management will talk about omnichannel, the ability to have the physical presence plus also have it integrated to the platform so it might be the first phase of shopping. so furniture today survey pointed out that usually that discovery -- it is kinds of like shopping for a car -- is done really on line but very often it is going to the store. when we talked about rh -- tyler, rh has stronger margins than lvmh. large three grand. gary seedman ceo came to
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restoration hardware, it is now rh today if you have been in an rh gallery, it is phenomenal. and it has great stickiness. they never do promotions they are expanding into london and paris and moving on. rh is in a class with itself. >> i will say this, there are a couple of stores in big malls that are always pull of people rh is one of them. the apple store is obviously the other of them. ken leon we appreciate your time today. >> thank you. up next, supply chain issues loom over nike's earnings. the results due out after the bill -- the bull -- the bell ia o llbu ist buy ahead of the numbers? our trading nation team will weigh in they will say it better than i will
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welcome back to "power lunch. supply chain challenges are expected to be a focal point when nike reports after the bell low vaccination rates resulted in factory closures and the stock was downgraded to neutral from buy but what do the traders think? let's bring in katie stockton
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and quintra. i'm looking at nike down over a month. any chance the bad news is priced boo the stock already >> the correction in nike has generated an oversold buy signal as of the last week. it's funny if you look back at the chart it has a similar buy signal ahead of the june report and makes one to step in front of the earnings report there's good support on the chart not far from 148 to 151 and there's no resistance until the 50-day moving average comes into play and sets up flavor bring. >> quint, if not nike is there another company you would be a buyer of >> no. i'm not a buyer of nike here the stock is pricing in significant future growth rate trading 31 times earnings why the expectation is for a dollar
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12 but the whisper number is $1.21. they have to say special to keep the upward momentum going in nike i'm not a fan of the stock i would sell it ahead of the earnings. >> okay. 159 a share. head to the website or follow us on twitter back to you. >> thank you is silver losing the luster. we'll look at whether prices are set for a breakout or a break down we'll be right back. >> now the latest from trading nation.cnbc.com and a word from our sponsor.
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keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved. welcome back silver headed for the forty down month in a row and the slide is happening while gold is holding up is silver set up to rebrown or fall further let's bring in christina with the answer. >> a sliver of hope. futures trending down as risk on appetite returns today silver is on pace for it fourth straight negative month after the lowest level of the year on
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monday, even pure played silver mining foirms taking a hit this week you can see on the screen down massively for four decades gold and silver tend to move in tandem given the use as an industrial metal and the perceived storage of wealth and wall street bets members vouch for but since december silver weakened and gold moved sideways >> when you have a combination of monetary conditions not being all that favorable or at least the perception of them not favorable and industrial side concerns for demand for silver, silver tends to overreact relative to gold. >> a great use of electricity and supply chain issues could moon the silver prices will be depressed. >> i think the supply side pressures will be in place for a while. talking to the shipping
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companies they don't see the shipping situation improving for all of 2022. >> some say silver has bottomed out because of short term pressures and as we push towards electrification of vehicles and appliances silver will play a role in energy efficiency and could be a big boom for the commodity. >> i wonder why it seems that the retail army had more success with equities than the trade like silver. >> that's an excellent point and i wish i would know the answer many are watching right now. i said we'd talk silver. maybe do not necessarily believe in the safe haven or storage of wealth idea. >> you would think if anything comities of famous original silver market more prone to these herd moves but yet it's incredible to look how silver performed this year. >> used in a lot of things.
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>> industrial use beyond unlike gold which little industrial use and has decorative value and stored value value silver is a different animal. >> thank you, christina. thank you for watching "power lunch." >> those were purple crocs earlier. >> i keep thinking it's friday. >> "closing bell" starts right now. feels like that a little bit. welcome to "closing bell." i'm sara eisen recouping the losses from monday's plunge. dow up as we head into this final hour of trade. >> i'm wilfred frost a look at what's driving the action today easing fears around china and the taper plans to drive the rally. treasury yields jumping giving a boost to the financial sector. salesforce giving the dow a boost after raising the

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