price point and eventually bring it below what traditional animal meat products would go for. >> that would totally change the equation for people who might look to you be institute kate rogers with the latest on the alt meat front that's it for the "the exchange," punch starts right now. let us all trait meatless chicken tenders. i thought they already were. welcome to "power lunch," everybody. here's what's ahead. yields pop the ten-year breaks a key level, is the bond market about to drive a great market rotation? what could it all mean for you and your money the race to regulate crypto. do stable coins pose a systemic threat. >> that's the question regulators are grappling an expert will tell us why he thinks stable coins need to be

banned out of here and will investors be punched by the energy crisis in china the cio of -- those how you can protect your portfolio. >> nuggets have gotten better over the years, more chickeny. the dow is the only average in the green, up 152 points, about 100 points off session highs. financials and energy are outperforming. the s&p is about flat. tech overall underperforming that's why the nasdaq is down behalf a percent crude at a three-year high that's gift a lift to energy games like occidental, diamondback and apa. all up 5 to 8% the price of natural gas is also near session highs that's boosting shares of antero resources and cabot oil and gas. natural gas is $5.61

the banks higher as well it is a finergy day. the ten-year yield hitting a key level breaking 1.5% earlier on we have not seen that since june rick santelli has more on these moves this afternoon rick >> just because you haven't seen it in a while and just because you are not seeing it very long today, in my opinion, doesn't mean you are not going to see a lot more activity at higher yield levels look how far the treasury yield market has come. ten-year notes on that fed wednesday. 30 basis points. come a long way. at one point, 20 basis points. now about 17 and various curves are acting a bit funky. tens, minus twos steepest in three months tens minus five, there is a one year chart you can see how flat they are.

the twos are not a good part of the curve to observe use five to tens, fives to 30s and all the rest of the curves and what we are seeing is the nation of raising rates and the notion of a taper making the curve move in different ways here's the best chart. ten-year chart of crude oil and ten-year note yields the world runs on energy when the world runs, ten-year notes run up higher. everybody is expecting this year's gdp is going to be between 56 % and 6% way too strong for rates are rates are too low. they are too low the only notion in my opinion keeping them at bay is living with covid and i think we are starting to see domestically and globally that that is going to be the only alternative and ultimately we will see not only rate markets move higher but equity markets move higher as well.

tyler back to you. >> thank you rick santelli as treasury yields do rise how will it impact equities and will it threaten the stock market rally? our next guest says not necessarily and says equity rallies never factored in the extreme low of interest rates. you know, my sense is on interest rates, what is not so -- what is less important is than how much they rise or how quickly they rise but why they are rising am i right on that >> thanks, tyler, i appreciate you guys having me you kind of took words right out of mymount it's really an it depends story. if this is slow and steady and the result of economic growth, that's good news we want the economy growing. economic growth is not something to be scared of. if the fed thinks it can take their foot off the quantitative easing because the economy is in good shape that's good news. as you note, it is kinds of how

much do we handle? if they go materially higher, there is a point at which it is bad news and why we are doing it. >> here, what do you think the rising rates are telling us? are they telling us that inflation is more intransjept and not transient? number one and number works, is it telling us we are at a point where the economy is maybe getting ready to slow down a little bit? >> yeah, i mean i think if you look at equity markets last week, it might be telling you something that's in between, which is that -- i think everybody looks at the current inflation numbers and they don't exactly look transitory. but at the same time, i think what the equity markets applauded last week and believes is that the federal reserve stands ready to to what it takes in order to keep them in check and they are moving slowly and smartly. so i think the equity markets are saying they are going to start easing but they also seem to have our back in the sense that if things start to go awry, we seem to

trust them to stop that. >> greg, let's talk through, as we contemplate the larger themes some of the names you think are poised to benefit. there is not a lot of obvious rate plays here. not a lot of big banks, united health care, o'reilly, texas instruments, right >> you hit the nail on head. that's intentional i think for long-term investors it is often difficult not to get caught up in what currently is being obsessed with by the market couldn'tly the market is obsessed with getting the inflation and the and rate calls correct. half the people are going to be happy. half are going to be sad we are long-term wealth investors. oftentimes secular growth stories get left aside they are a little bit less interesting because they don't touch upon the hot button issues that you mentioned. >> yeah. also, i think in here you mentioned the kind of persistent

issues with worker short ans and labor issues obviously we are seeing supply chain issues more broadly. is that anything you have to factor ins an investor is it possible the side step or do you hope the companies are going to figure it out it seems every day we wake up the news is worse. >> i think it is something you have to be mindful of. frankly, relative to the inflation story i am much more concerned about labor than i am about inflation because the fed can impact inflation and i don't know that they can do anything if labor keeps being an issue. so as we enter 2022, that's something i am really watching as it relates to the names we are looking at, we are certainly cognizant of whether or not labor is a problem in some sectors, it is a big problem right now. >> greg, thank you for your time today. rockland trust. wall street is watching washington where congress faces votes that could have an impact on our nation this week.

ylan mui has the details. >> the first item on the agenda is making sure the government doesn't run out of money after the fiscal year ends on thursday today at 5:30 p.m. the senate will vote on a bill that funds the government through december 3rd and raises the debt ceiling through december 2022. but republicans plan to block this bill as a way to protest democrats' big social spending package. democratic leadership is promising that package will come up for a vote sometime this week in the house even though there are still major differences in their party about it but democrats want to show that they are making progress as a way of placating progressives who are threatening to tank the infrastructure bill when that comes up for a vote in the house on thursday unless they can show that the rest of president biden's agenda can move along with it speaking to reporters, after getting his booster shot today, biden did acknowledge that these deadlines are aggressive and the timing could slip. >> well, it may not be by the end of the week. i hope it's by the end of the week but as long as we are still

alive we have three things to do the debt ceiling, continue resolution, and the two pieces of legislation if we do that, the country is going to be in great shape >> so biden there echoing comments from house speaker nancy pelosi who is calling these next few days a time of intensity. guys >> you know, comment to us, if you will the idea that the debt ceiling once again as come back as an item it is like tieing the damsel to the railroad tracks as the train comes along to get your way to make the train stop, you tie the damsel but the debt ceiling is paying not just for whatever future borrowing and expenditures might be incurred under in this administration raising the debt ceiling goes to pay for legislation that was passed in a bipartisan fashion this year, in a bipartisan fashion last year. and throughout -- as far as you go back.

so it's really agreeing to pay for things that a lot of the guy who is are opposing raising the debt ceiling actually voted for back when. >> yeah. both sides of the aisle really understand this. even if there were no new legislation to be passed at all, the debt ceiling would still need to be raised in order to pay for spendsing that has already been agreed to as you point out, tyler. >> right. >> that's why there is a push amongst some policy kinds of folks on capitol hill to get rid of the debt ceiling altogether or to sort of shift the responsibility from congress to the president and make it the president who has to raise the debt ceiling and congress can just approve or disapprove of it unfortunately, it is unlikely that's the route that congress goes this time we are much more lickly to see the football get kicked doesn't a little bit longer. it can get kicked down the road a lebt longer.

because it does keep coming up again and again. >> yeah. >> and both sides have been successful in using to it get what they want. >> i can't imagine mitch mcconnell handing that key to joe biden or senator schumer handing it to a gop president under any circumstances. great reporting. thank you. appreciate it. we have been talking a lot about the solar stocks recently and the proposed clean energy funding. policy uncertainty out of washington is one reason why the stocks have been slumping. invesco's solar fund is on track for its second lowest month in the last eight >> coming up, a major player in the red hot buy now-pay later space. the co-ceo of afterpay will join us exclusively from a code conference he will be talking about the future of payments and his biggest challenges. later, piper sandler calls best buy a top pick. our trading nation team will

tell us if they agree or if they are betting on different name. heading to break some of the new stocks hitting new 52-week highs in today's session. one of the auto parts companies in there it's advance

welcome back, everybody. buy now, pay later is one of the

hottest areas of investment in tech a firm which partnered with amazon is up today paypal just bought a japanese buy now pay later company and square is buying afterpay, it is a huge topic out at the code conference in los angeles. that's where we find john ford with an exclusive interview with the khouw-ceo and khouw founder of afterpay. john. >> kelly, thank you. nick mole nar, khouw-ceo thank you for joining us here on cnbc. i know you told this story before, but let me get a bit of it here. what was jack dorsey's pitch. >> what was jack's pitch look, there is obviously a big transformation from particularly the next generation of consumers shifting away from credit to debit. two out of three millennials don't own a credit card. when you think about the heritage of square being about economic empowerment and more specifically small businesses on

one side of the equation and cash up having 70 million annual active consumers also playing into that debit economy it was a complimentary marriage. >> people are right now understandably concerned because of how buy now pay later sounds. we are told not to the do that but of course we are doing it already with credit cards. how far does that go what percentage of the u.s. market do you think in your vision shifts away from credit cards to buy now pay later >> we launched afterpay in north america just three years ago we currently account for 6.5% of all online apparel in the region if you compare that to australia where we process 15 to 20% of all online retail. there is a really big opportunity here most importantly, we did build the product to be the opposite of a traditional finance product. if obligatory of people pay back a credit on time, the model

doesn't work there is an opportunity to build a product that is free for the consumer that means they can use their debit card and get the flexibility with the appropriate checks and balance that's why they love the product and why growth is present. >> what about those who say when the economy turns down and some people stop paying their bills buy now pay later and afterpay are going to be particularly burned >> we thought about this from when we designed the product from day one there was a couple of really important points it is low average value short duration most importantly, once someone is litton one installment they can't continue shopping until they pay their balance back. there is a great cycle where over time we are engaging with more high-quality consumers because we give good people more

flexibility and naturally people who are late over time they are g.i. given less flexibility. those checks and balances are part of the reason consumers love us as much as they do. >> gary gensler from the sec is here later today how much does crypto matter to what after pay does? >> a lot now, given square's strategic importance of crypto we are really excited by that. i think what crypto represents is putting the power back in the consumers' hands it also is led primarily from the next generation. when you look at this millennial and gen z consumer and this movement that is underpinning crypto or a whole range of other components rolling out through the finance ecosystem you know for that is incredibly exciting where. that gets to i think the combination about respective ecosystems creates a great framework to bring that to life. >> in the various markets where you operate, which regulators

are doing the best job >> from day one, we have been pro-regulation it is about being a fit for purpose framework i think that all regions are naturally at different phases we have been flew a lot more in australia and in the u.s. the framework is pretty well defined. from our perspective, it starts with, does this have the consumers' best interests at heart? and how do you make sure there is the appropriate checks and balances and you know, that high net promoter score, the results that we see from a merchant and consumer perspective i think play into that conversation. >> we will see what gensler has to say here at code later. nick, thank you for joining us from afterpay. back to you, tyler. mg up we are watching energy stocks best performer in the s&p 500 today, up 3.5% but also, the best this month, and the best this year we will get oil's closing trids. and we are going shopping, shopping for retail stocks that could be big winners this

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welcome back i'm raheel solomon sheer your cnbc news update at this hour. just days after the cdc recommended a third shot of the pfizer vaccine for people over 65 and other high-risk people, president biden received his booster about an hour ago at the white house. >> boosters are important. but the most important thing we need to do is get more people vaccinated the vast majority of americans are doing the right thing. over 77% of adults have gotten at least one shot. about 23% haven't gotten any shots. and that -- that distinct minority is causing an awful lot of us an awful lot of damage >> new york state governor kathy hochul says she is not backing down from today's deadline for health care workers. get vaccinated or get fired. a nurses union supports the

mandate. and harvard business school is moving in-person class force all first-year students on line. some second-year classes will be virtual due to covid cases on campus despite vaccination rates of 95% for students and saf. >> for a week or two or something like that? >> until october 3rd, exactly. >> thank you for the news update. a check on the markets dow is up 141 points s&p is trying to fight into positive territory down three points at the moment. the nasdaq down 56 tells you the story of the day, financials and energy, higher, health care and tech are lagging. crude up wti at 75 a barrel pippa has more >> five straight sessions of gains following five straight positive weeks recovering demand and

increasingly tight supply drive this is market brent crude advancing 2% to $79.64 now within striking distance of $80. goldman says brent will skip over 80. they hiked their predictions by $10 expecting 90 by the end of the year saying quote the current supply demand deficit is larger than we anticipated. now it is time for power movers let's start with credit suisse -- cutting altice's outlook saying their fiber build out is a short-term negative. excel ron a higher on reports of a mystery buyer bid forth company. most likely bristol-myers, which currently opens over 10%

and morgan stanley setting the price target of silvergate 150% higher from here the company providing bitcoin-backed loans read more about this upgrade and all of today's big calls at the cnbc.com/pro site. still ahead on punch, another call for a ban of crypto this time it is not about potential crime. our next guest says stable coins could be a threat. not so stable. he will make his case next if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events

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welcome back to "power lunch. well, everyone knows there are big risks sorted with bitcoin and other cryptocurrencies stable coins are supposed to be less volatile since they are backed by assets like treasuries my next guest says there is no good way to prevent the tanger they pose and they should be banned it is great to have you here it really brings back memories of the '08 financial crisis and the role you played with money market mutual funds and shadow banking at that time with that welcome, can you

explain what the think the risk is of stable coins and if it is just to crypto or to the broader financial system >> stable coin is essentially a bank deposit i have give $100 to the stable coin issuer and i get 100 stable coins. i am spezed to be able to redeem these coins on demands at par. it is exactly the kind of security, a debt security issued by a bank, these issuers are essentially banks. so if stable coins were to grow large, and if the technology improves, which it will, i would be able to buy lunch with my stable coins then we would have the possibility of a bank run on all these stable coins the reason that's a possibility is because of the contract it's demandable. because also because they are not regulated. we don't know what they really hold back in these coins there seems to be two views on some people are skeptical and some people just believe what

they say so i think it is time to look into this carefully now rather than wait for another financial crisis. >> what are they purportedly backed by today? a and, truly, does it really matter because if people were to sell all at once in a kind of rush to get their liquidity back, no matter what the backing asset is, would come under immense selling pressure and its price would go down, so you wouldn't be able to, in therapy, to get back par value. >> yeah. that's the point that's the problem we don't -- some of the stable coini issuers provide more detailed information about the backing than others. some of them are very vague. but there is no way they can really credibly convince us. some have accounting reports but they are a little bit vague. so i think -- i think, you know, it's a problem, and there is no way for them to solve this

problem because they are to the regulated. they want to be regulated. they want to be bank charters. on the other hand, they don't want to be regulated that is, i think, the problem for the government. >> i am curious how this is all likely to play out it seems as though, professor gordon, if we have been talking about row reg will iters might regulate bitcoin or cryptos, is really the first step regulation of stable coins? if they are classified like a money market mutual fund, will it have a cascading effect sir, some of the others would say we are providing more transparency, more of our holdings are backed by treasuries maybe this is why there has been so much nands for treasuries and so much more yield that aside, could we get a status quo outcome if they don't change that much what they look like today one of the options you presented in your paper is just banning them all together. how likely do you think that

would really be? >> i don't think that's very likely because they already have a lobby. you know, the -- the hype would be that it's the free market and we are squelching technology, and blah, blah, blah we went through this before in 1863, and we decided that the government should supply money we banned free bank notes that were issued by banks and we went for the government issuing a currency that's the route that china has taken, by the way in uh-huh. >> so the issue here is really should the government supply money or should we let the private sector try to supply money? now, if you call them mutual funds, you know the problems with that. we made that mistake in the '70s in the faces they faced a run. and in march, 2020, they faced a run. we haven't solved that problem. >> but they are not treated as currency this is the one thing i wonder about. are we allowing people to create

money if it is not treated as currency i guess the separate issue is the extent to which you speak with people, there is a lot of activity happening on these platforms between cryptos and -- >> yeah, that's right. >> yeah. go ahead. >> right now, you can spend your stable coins on an heexchange usually, what do you is buy some kind of cryptocurrency that's because the technology hasn't really expanded to the point where i can spend stable coins at grocery store but that will come i mean, right now, you are right, it circulates as currency in a very, very limited way. but it's best to nip these things in the bud. you know -- >> right >> you know, otherwise we are going to be in a mess in ten years. >> let's talk if i might -- i was out to dinner on saturday night with a group of friends. and we were having a heated debate about cryptocurrency, which speaks more my social life probably than anything else.

on the one hand was a guy i respect greatly who said eventually all of these crypto things and the all of the people who made so much money in them, it is going to go to zero. it is going to flop. on the other side, very vigorously, equally smart cats as far as i can tell they said, no, no, no, it is going to endure where do you come down on that >> i think you want to distinguish between fiat crypto which is deemed to be money but it's intrinsically worthless and isn't backed by anything like bitcoin or dogecoin. those are bubbles. i think they will go to zero bitcoin is not scaleable it destroys the environment. it has limited use the stable coins, however, i think can evolve into something. so i divide the universe between fiat crypto and stable coins

of course there are other smaller categories there is thousands of stale koinls but the market is dominated by a handful in 1859 we had hundreds of car companies and later on there was a shakeout in the the market stable canes are going to have to evolve. if you think about, what if facebook's stable coin hasn't been issued yet. right? >> uh-huh. >> they can't implicitly guarantee their stable coin. they can bail it out if need be because it is going to be issued through a bank in california, sirgate bank but if it grew large enough even they couldn't bail it out. it is the stable coins which will evolve into something and which could endure and cause a problem. >> i have to sneak one more in when do you expect the s.e.c. will act on this >> their business is the

exchanges. they should react on exchanges those are unregulated. i think stable coins has to recognize it is a banking issue. we will see what the president's working group comes up with. they are going to issue some paper in the near future but i don't really see, you know, what they could say that would be same i think they are between a rock and a hard place. i mean all the possible solutions have problems. >> professor, thank you. it was a fascinating conversation we would love to have you back don't go on twitter this afternoon because -- >> >> i'm not on twitter. >> good. neither am i, my brother thank you so much, professor gary gordon with the yale school of management. >> you are welcome. >> at my dinner party, kelly, there was a joke that was too long to tell there but the punchline of the joke was that there are eating sardines and there are trading sardines that was the tie you can think of the correlate

to these currencies, and there are trading currencies and spending countersys. >> i don't like sardines. >> you would not have bought them in the place. t you would buy the trading sardines not the eating ones. china's latest crackdown, energy usage big fact reese forced to halt products, but crane share's ceo is trading higher. what this latest move to mean for companies there.

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china is imposing strict energy consumption rules that's reportedly halting production at some factories including key suppliers to apple and tesla. >> new possible challenges here for our global supply chains

reports are indicating several apple and tesla suppliers suspended some production in china for several days as chinese authorities imposed strict energy consumption policies reuter's saying in response to tight coal supplies and toughening emissions suicide companies like uniony micron technology suspended production for some period. analysts are quick the point out this is affecting a range of industries, not just electronic. everything from steel production to soy bean crushers are being impacted what does it mean for investors? i shock with gene money munster of global investors. apple and tesla did not respond to requests for comment. but munster saying this could ultimately delay demand for some of their products though he bets not destroy that demand. their customers, munster argues are often committed fans, we know, and they will wait for those products to arrive

>> back to you thank you josh we appreciate it. all of this leading some economists to warn ever lower economic growth in china is this another punch to the gut for investors there, and over here, who may be playing that market joining us, crane shares brendan ahern. what's going on in china a lot of things have been unsettling the matter of the debt-plagued real estate company. a power shortage now that is affecting industrial output. there are supply chain blockages and hair balls across the the globe that are -- and out of these kinds of things, it seems to me a global recession could be spun. am i wrong >> we think the coal shortages in china today are really affecting two different parts of china's economy. one, you have it affecting the industrial output. so we've seen that prices of

coke futures which are used for steel making, those prices have driven dramatically. at the same time, thermal coal prices for electrical transmission and for heating those prizes are rising. some of this comes from china's attempts to limit coal at the same time we are seeing that due to mining safety issues output of coal in china has come down as well as china is lessening imports from trail why just due to political rhetoric issues ultimately, china is kind of short on cole. we are also seeing it in the european union and the united kingdom where due to high lng prices a slowdown in the amount of wind generation in europe, we are seeing similar very high energy prices. something that -- i think you are right. it's something that's a little bit of a concern not just on a china perspective, but globally.

>> but globally. when you have these kinds of input costs going up, it is -- it not answer affects margins, obviously, but it affects output and you have, in china's case, the possibility of a not negligible decline in gdp. >> i think we are going see the chinese authorities respond by opening up their commodity's strategic reserves we saw that a month ago. likely to see that again it might pave the way to potentially smoother relationships with australia, where china has a strong demand for australia coal imports that have really lagged at the same time, they might tap the brakes on some of the push to clean technology, solar, wind, hydro, nuclear they have got to give those industries a little more time before pushing a very strong commitment toward clean energy unfortunately, coal might be used as a stopgap. they will have to ramp up production. >> even there prices are up and

we are talking about short ans and issues i don't know what's going to happen going -- the weird thing is the way that china's own press is writing about it, talking about the need to ration and conserve and you wonder, you know, if this is from the sort of more or less the communist party itself, like what's really going on. in the meantime we have people marking down their gdp forecast. kweb has been steady down 50, 60% from the highs in the spring but it's almost as if this is not more of a concern than everything we have already been through with china we are looking at the new mora forecast they have taken it down by half a percentage point still 7.7% are they going to muddle through? >> i think the forecasts are coming down from slightly above 8% to below it certainly there is talk of trying to lessen demand from a consumer perspective at the same time part of the problem is that due to the very

high prices a lot of the electrical transmission companies are lessening output i think that's where there will be a lot of pressure put on those electrical transmission companies to ramp up production. ultimately, it is going to hit profits of the utility companies because they are going to be told you have to ramp up this production regardless of price the economy needs that energy. and that's probably going the fall on the balance sheet of some of these utility companies. >> right,again your internet etf i don't think includes them, right? >> definitely not. definitely not. >> brendan ahern of crane shares 90 days from christmas heavier to early to shop for stocks that might do well this hall season. up next, our picks on retailers who can vitenaga all the problems, supply shortages, worker short ans and all the rhett of -- rhest of it.

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welcome back to "power

lunch. and with fewer than 90 days to christmas a huge issue this holiday season, on the hunt for other that is stand out from the pack let's discuss with the team today. ari wald and ava ados. great to have you both here. ari, why is lowe's a pick? how many people are christmas shopping at lowe's >> here are the reasons we like. i don't know about christmas shopping it's what we call hitting the trifecta it's got a bullish trend behind it rated outperform and there are portfolio analysts supporting this stock based on relative strength to the segment of the market so here are the levels to watch. the stock is testing the may peak we expect a breakout we recommend buying it in

anticipation for it given the unlying trend. meantime there is support at $200 marking the 50-day average. >> i would happily get anything from home depot and lowe's for christmas. ava, let's talk. a couple names that you think could do quite well here why? >> one is become rh and one online and why i like them is in the market where the retail companies have shown artificial if i may growth over since the last year in the comparisons the two companies actually had good growth last year so their growth now of 91% for it sy and 38 first more rh is a sustainable growth it shows a signal that these companies can continue growing and that comes together coupled with profits so both these companies have profits

etsy has 22.5% income margin and that's 20 times high irthan the industry average and then in the case of rh ebitda doubled in the last three years. >> good reasons to look at both names. ari and ava, she said, thank you. for more head to the website or follow along on twitter. any strong housing market there will be money to be made on flipping homes but not as luke ra tiff as it once and we'll tell you why and delivering alpha is back, this wednesday. this year's focus on maximizing returns in an area of new opportunity. we'll be talking spacs, crypto, esg with goluests. there you see some of them go on line for more and how to register

i'll see you there. now the latest from trading nation.cnbc.com and a word from our sponsor.

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we know the pandemic caused a run on housing flipping may be making a comeback but at lower returns and diana olike joins us with the latest hi, di. >> hey close to 80,000 single family homes and condos flipped in the second quaerlt of this year. that's lower than what we have seen in the past decade and the fist increase in flipping in a year the profits are shrinking. down to a decade low while the gross profit on a typical flip is a 67$67,000 gain the return on investment was down due to highest costs involved with fixing up. home price growth did begin to slow a little so the return is 33.5% compared with the original acquisition price down from 37%

in the first quarter and 40% in same quaerlt of 2020 and the lowest return since 2011 when the market did not start the recovery from the subprime crime. it's all about location. oklahoma city, philadelphia, fargo, north dakota, pittsburgh, omaha, buffalo and baltimore and overall more homes are coming on the market to help investors get back on. >> a lot of them i'm guessing the median price of a home or a flipped home in those kinds of metros is lower than the national average. >> reporter: probably because those are lower priced markets and seeing the gains and the demand because we have first time buyers, people moving because they have that flexibility now. so flipping in lower priced

markets is going to result in bigger profits, for sure you don't see san francisco or l.a. or new york city on the lists. >> that's kind of my thing how risky is it for people to flip at the top of the market if price gains are slowing as you said they are in many markets? >> reporter: the gains are slowing but remember we are up around 18% in price gains from a year ago so even if it's 5% you make some money but watch mortgage rates higher the fewer buyers out there and tougher to flip for a profit. >> you said basically the returns are down from 37% to what 35-ish 34-ish >> 33% down down from 40% a year ago. if you flip a house you have to upgrade it somewhat. >> some costs of appliances and

plumbing so forth if you can get it are higher. >> reporter: and supply chain. everything is about supply chain. >> thank you >> i think tyler's thinking about flipping houses. >> no! no no way. >> not his thank you for watching "closing bell" starts right now. >> you don't know the mathson law. mathson buys at the top. welcome to "closing bell." i'm wilfred frost at new york stock exchange a mixed picture today as we kick off a trading week with the s&p and nasdaq in the red. >> i'm morgan brennan. let's look at what's driving the action today energy today with goldman raising the year-end forecast for oil. growth names are under pressure with apple and google and microsoft in the red and the durable goods number up this morning th