talking about -- >> specifically about bitcoin, too. >> very just didn't sound controversial at all, just loves it >> everybody's just dropping the bitcoin bombs. and the esg -- >> which i'm sure makes some of the original holders uncomfortable just to see it go this mainstream. >> but it appreciates. >> christina, great to have you here that's it for "power lunch" today, everybody "closing bell" starts right now. and welcome to "closing bell." thank you, kelly i'm sara eisen stocks trying for a comeback after tuesday's tumble but it's been an up and down session. dow and s&p are near highs >> atreasury yields resuming muc higher after a dip this morning. that's weighing on the nasdaq. defensive names seeing the most strength

utilities, consumer staples are among the biggest sector winners. and dc drama remains in focus as a government shutdown deadline looms and concerns over the debt ceiling remains. 59 minutes left in the sessions there. >> coming up on today's show, a rare interview with the former pepsico ceoindra nooyi we'll get her take on the big spending plans in washington and the role corporate leaders she says should be playing right now in shaping policy. and why russ says we will end the year with stocks higher than where we are right now. >> the big stories today the "delivering alpha" conference is taking place today. start us off with the broader markets and the very nice jump at 2:00 p.m. >> we spent the entire day today

within the range of yesterday's high and low, which kind of tested the down side a couple of times. it seemed like that may be involved in a little burst of afternoon buying it's hard to pin it on any real news catalyst. i do see a little bit of kind of odd quarter-end jockeying, very defensive leadership today consumer staples and others are leading the way. so i wouldn't draw too many conclusions. after last monday's really big drop, tuesday was a nothing day. it was kind of flat, there was kind of a morning bounce, it didn't tell us anything about what was to come because you did actually have a rally the following day, which didn't ultimately survive we're still trading above last week's lows in the general 4,300 area kind of in no-man's land there's also these big mechanical hedging trades, everyone knows about that these funds have that are going to be rolling soon it seems to act as a magnet at certain levels if you strip it all away, it does seem though as if we're in another one of these style

shifts take a look at the pure value etf relative to the nasdaq we had the burst off of the post-election result last year that was a value outperforming and this is deep value stocks. then you had the re-opening trade as people got vaccinated or are preparing to do so back into the march high. similarly into june. so we've had these bursts high this also corresponded with yields surges. is this another one of those well, maybe. we've kind of gone vertical in a similar fashion that started these moves. we don't know if it's going to continue to these type of heights of outperformance by value, which of course is a lot of financials, energy, some industrials, autos, things like that but this is kind of what's been happening below the surface as covid caseloads come off take a look at this, though. this is how oversold the nasdaq 100 is internally. trading above just the 20-day average. it's like a four-week. it's pretty much as washed out

as it's been over the last couple of years. so it's maybe going to be hard to prevent the nasdaq 100 from bouncing at some point, maybe that's one explanation today for a lot of the back and forth indecisive action among these different styles, even as ten-year treasury yields did inch just a little bit higher from the morning lows. >> clearly higher yields yesterday was a bad thing, and kind of equated to selling for the major averages in terms of the intraday performances, a jump around lunchtime or 1 or 2:00 p.m., yields also jumped around that time >> they did. i kind of hesitate to really scrutinize every tick. keep in mind the nasdaq 100 was down 2% yesterday. so we're gaining, what, a quarter of that back right now it seems like it's knitting things together with minor moves as opposed to it necessarily seeming like an acceleration in yields from here i'm agnostic right now as to whether it means we're in this

regime where we always have to trade in the nasdaq inversely to what yields do >> 154 right now on the ten-year a little bit of a turn around. in washington the senate is working on a bill to keep the senate open. >> republicans and democrats are trying to finalize an agreement that would prevent a government shutdown at midnight tomorrow. this deal would keep the lights on through december the 3rd as well as provide money for disaster relief from hurricane ida and aid to afghans security projects could push the final vote until tomorrow. senate majority leader chuck schumer promised that the senate would pass it in plenty of time for the house to take up and for the president to sign it >> with so many critical issues to address, the last thing the american people need right now is a government shutdown

this proposal will prevent one from happening >> now, while congress may be avoiding one crisis, it is still in the middle of another as republicans and democrats remain dug in on the debt limit the house is preparing for vote on a bill that would raise the debt limit through december 16th, 2022 and house speaker nilayancy pel is telling them it is their duty to protect american families from the catastrophe of default. republicans remain united in their opposition, saying this would just pave the way for democrats' spending spree. remember, democrats would need ten republicans to break ranks and vote with them in order for this bill to pass that looks incredibly unlikely at this point. back over to you >> so who do we watch? we know that the president has been holding a number of talks with some of the moderate

democrats. who's the holdout? >> on the debt limit issue, it is really a united republican front at this point, saying that they are not going to provide those votes needed for democrats to pass this bill. so it's going to be up to democratic leadership in both the house and the senate pelosi and schumer to decide whether they're going to use that fast-track reconciliation process that would let them do this on their own. so far they have rejected that idea but as we get closer and closer to october 18th they may have no choice >> thanks so much. as always, much appreciated. cnbc's "delivering alpha" conference is underway with some great voices in the investing world laying out their strategies in this uncertain market leslie picker's got a look at some of the highlights so far for us leslie, over to you. >> that's right, wolf. we've had some pretty newsmaking commentary so far. we just heard from brett gersner that he believes >> we expect the nasdaq still has another 10 to 15% it can

give back to us, again, that is just us returning to the historical, the pre-covid peaks in terms of multiples for growth stocks that's a healthy thing while we're managing our hedge fund, we think a lot about that. >> he cut his long exposure to equities nearly in half. that includes selling out of xpedia and united airlines news he made during today's fireside, noting the easy gains off the covid bottom have been made there. he also said he was short about 50 spacs or special purpose acquisition companies. and he also bought peloton and zoom recently. he also touched on the investability of china >> certainly there's a possibility that this just is another bump in the road, that everything reverts back, that bab and all these stocks rip again. but i don't think anybody can say that with a high level of

certainty. >> he noted it's a fundamental time of change in china and the next year six to 12 months, in his words, will be telling guys >> leslie, thanks so much. we appreciate it it's been a great day so far and of course it is not over we will have more from "delivering alpha" in a little bit, and the conference continues. you can still tune in and register online, and you can find all of the key highlights from earlier in the day on demand, deliveringalpha.com. and after the break jason trennert tells us the biggest headwinds he sees for the stocks in the coming months you're watching "closing bell," cnbc ♪

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xfinity makes moving easy. go online to transfer your services in about a minute. get started today. welcome back stocks regaining some ground after tuesday's selloff. though it's been a tentative bounceback we're at the kind of best part of the session, which is 0.7% in gains for the dow. defensives are leading the day with utilities in consumer staples up more than a full percent. joining us now the chief investment strategist. jason, great to see you, as always before we get to today's bounce, let's talk about yesterday's selloff. what was the cause for that, in your eyes? china yields, d.c. >> you know, wolf, i think it's a combination of all those things to me the most important change over the last week has largely been the announcement that the fed is going to start tapering

and the bank of england is going to start tapering. the bank of norway, hungary, pakistan there are a lot of essential banks around the world that at the margin is very much at the beginning stages, are just changing their policy on monetary policy. and i think that's probably the single most important thing. it's not to say that that was the focus of what was going on yesterday. there were a lot of other things to worry about, including the drama surrounding the fed as well as the budget negotiations. but, to me, the most important thing to watch is central banking. >> so, do you think yields have got further to rise, or will we pause here and what does that mean for equities >> wolf, my own opinion is that it's still hard to kind of fathom the idea that you have inflation that's running, let's just say, at 5%, and you're getting a negative real return of 3.5

that hasn't been particularly great rule of thumb in terms of trading bonds. so you still have $13 trillion of negative yield in sovereign debt around the world. but to answer your question directly, i think rates are higher because i think inflation is stickier. i do think that prevents some challenges for the growthier parts of the market. it doesn't have to be a disaster it's not like switching on and off a light switch but i still am largely of the view that stocks are going to outperform growth for the most part as rates normalize. and as the global economy starts to normalize as well >> i think of you as a fed watcher a bit, jason can you believe this drama around, first of all, fed chair jay powell and senator elizabeth warren calling him a dangerous man. two fed presidents resigning on

the same day and expirations coming from a number of other governors including the vice-chair for supervision and the vice-chair of the federal reserve >> right >> that seems like a lot of uncertainty. how does that play out, in your mind >> sara, you're very kind. we have a genuine fed watcher in our shop, but i'm kind of an amateur one, or been doing this for 30 years and i've never seen anything like this. it makes me a bit nervous, i have to say, because i believe the fed, and this is warranted, i think the fed has among the best reputations of any government agency in washington, d.c., largely because they stay out of politics and they generally try to do the right thing. this does have a little bit of an element of a purge to it. i don't think it's any coincidence some of these things are happening during the negotiations for the fiscal stimulus package

it is a little bit concerning or disconcerting that people would use the central bank in that way. and i'm not casting aspersions on anyone in particular. i'm friendly with some of the people on the fomc who i think are wonderful people but i would hate to see the fed become overtly political because i think that really risks real damage to our financial markets or capital markets jay powell is about as dovish as you can get without damaging confidence in the central bank without him, they better have a very good replacement. i will just say that or i think you're going to complicate things, the administration might complicate things for itself >> but, jason, what could they appoint? they're not going to appoint a load of hawks, are they? so how will it drastically

change the outlook for equity markets? >> no, as i said, jay powell is about as dovish as you can get i do think there are going to be significant changes in terms of bank regulation with randal quarles leaving. i thinkyou're going to have people that are obviously somewhat more progressive. i think what you want is diversity of thought i don't think you want the situation where everyone thinks the same way on the federal reserve. and that's what worries me when you have all these potential changes where, you know, it could seem as if you're stacking the central bank, and you don't want that, it seems to me. but now to someone who participates in the financial markets, myself who runs a brokerage firm, i want a straight shot. and i don't want to make it overly dramatic, but it is -- for the federal reserve, this is about as dramatic as it gets this is soap opera type stuff.

and we have enough soap opera stuff going on in the rest of washington d.c and it seems that we would rather avoid that in our own central bank, if we could. >> probably for the best jason, thank you we'll leave it there dow's up about 260 points. and speaking of we are getting some news right now from the fed. steve liesman with the details steve? >> yes, sara, directly on the issue you were just talking about. san francisco fed president mary daly becoming the first president to talk to reporters after those resignations of eric rosengren and robert kaplan. she says that the fed wants to ensure that they are transparent in their processes and the fed is committed to getting this right. and she means the review process and the disclosure process at the fed. she says the federal reserve needs the trust of the american people to do our work. specifically addressing these issues, daly says in terms of

the rules and whether they need to be changed, that is clearly the case she goes on to say we disclose our information on a regular basis, and people are saying this is not sufficient daly backed changes that may be coming for the review process initiated by fed chair powell. on policy she says she anticipates the federal reserve will meet the, quote substantial further progress test by the end of this year for tapering and that the fed -- does not envision the fed raising federal rates in 2022. i expect we'll hear more additional testimony from jay powell still to come, our interview with the woman who rose to the top of one of the world's biggest consumer companies, former pepsico ceoindra nooyi joins us in just a bit we'll tell you about the company's latest product drop next with kanye west

check out some of today's "top search" tickers yields are now a little bit higher, 154 is your yield. just to put it in perspective, in early august it was around 116. going south after rneaing. tesla and apple right up there we'll be right back.

36 minutes left to go of trading. let's check in on some individual market movers for you. a firm announcing plans today to debut a debit card that allows customers to buy and sell crypto directly from savings accounts they have with the company they can pay online or in stores that stock up about half a percent. shares of dollar tree soaring today. the discount retailer says it's adding more products at higher price points in its stores it is increasing its buy-back by $1 billion to 2.5 billion.

that stock up 16.5%. biggest gainer on the nasdaq 100. and the was itis over for kanye west, latest drop with the gap the yeezy hoodie now available for order. retails for 90 bucks and is available in adult and kids sizes. shares of gap have mostly run up on a lot of this yeezy news. they're up a little more than half a percent they're still stuck, unlike some of his sneaker launches. the only point i want to make is gap gets so much publicity it's written up everywhere including on a lot of the sneaker blogs on hype beast and complex which have so many fans because of yeezy's and kanye's power in that market it really is expanding a market for a company like gap and to younger and cooler consumers, i would say. >> is there anything different about the way it's cut, the

shape? to my very unfashionable -- it just looks like as plain a hoodie as you could possibly imagine. >> it's very plain so the shape -- you can see it's not -- there is a shape, it's kind of got a little bubble cloud thing going on like the jacket that he released for gap. and the colors are pretty and they're selected by kanye, who's got really good taste, and people like to go along with that >> well, you are clearly more of a believer in the product than i am >> i like the blue i did purchase one >> well, there you go. >> test it out and come back we can maybe see you in it when it arrives we have to move on that new drop is out shares of cybersecurity company flcloudflare down. we'll speak with their ceo about

the recent stock bond yields dipped a bit this morning after their surge yesterday and of late. 154 on the 10-year nearly 2.1 on the 30-year. "the bond report" is brought to you by mimco, a global leader in active fixed income

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off session highs up 226 on the dow.

earlier today i hosted a panel as part of cnbc's "delivering alpha" event our conference discussing the 3d shift in wealth management, how digitization, demokayization and diversity are impacting the industry i also asked the panelists about current market volatility and where they will head from here >> we continue to be constructive on risk assets. now, again, the lens that we look through is we're a long-term investor, and we're looking at this over longer cycles we're not confused about the near-term risk of inflation and things like that but we mayconstructive on the market and we look at that as an opportunity if we see any meaningful selloff in the current time period. >> she agreed that people should remain invested but did say they should also start making adjustments to their portfolios, specifically around inflation. i asked her where she sees

opportunity right now. here's what she said >> we're really very interested and intrigued by infrastructure, both listed infrastructure as well as private infrastructure we know this is obviously a huge topic in washington wa and as we think about the need for long-term income, this is an asset class that is quite long in nature. and also has inflation characteristics built in as well as when you think about renewable energy, focus around reinvesting in our infrastructure in this country, we're very excited about that as a potential place to place money. >> the "delivering alpha" conference still going on, and you can still register in fact you can also find all the great "delivering alpha" content on demand if you do, go to deliveringalpha.com for details right now. wilfred? >> well worth checking that out. we're up about half a percent on the s&p with 28 minutes left of the session. it's time now for a cnbc news

update with rahel solomon. >> here's what's happening at this hour. we begin in dallas where an explosion caused by a natural gas leak partially collapsed an apartment building seven people were injured including two firefighters who are in critical condition. they were investigating the leak when the explosion happened. premiums will be falling next year from any medicare advantage and prescription drug plans. the average medicare advantage plan will cost $19 a month in 2022 that's more than $2 less than this year. tickets for the beijing winter games will only be sold to people from mainland china. beijing organizers say that their focus on keeping the olympics safe. athletes and other participants must prove that they are fully vaccinated or quarantine for three weeks ahead of the games and in london royal fans of the new james bond movie, prince charles and prince william and their wives camilla and kate and cast and crew at the world premiere of "no time to die.

it is the 25th bond movie and it's finally making its debut after being delayed three times because of the pandemic. and shockingly, wolf, i don't see you in this video. >> that's because i couldn't get to london for this >> naturally you were invited >> nor was i invited but i have seen the headlines of some of the reviews that have started coming out in the british press. they say five star the one in the "uk times. i didn't read the review because i'm waiting to see it next weekend. but i'm very, very excited indeed looking forward to it. >> as am i >> i just liked kate middleton's dress. rahel solomon, thank you when we come back, fluidflare making moves today to protect your email inbox from cyber's threat we'll talk to the company's ceo about this initiative next dow up 222 later former pepsico's ceo indra nooyi goes on the record about corporate america and president biden's build back better agenda >> why isn't there more of a

support rising up for this bill? why are people still questioning whether this should be done? and why are people skeptical about whether this is a good spending of taxpayer money it's time that we move beyond discussing of whether this is a good program to talking about what's the best way to design it and implement it fast. we'll have much more from that rare teiew miinrvcong up later on "closing bell." "delivering alpha" is sponsored by netjets, the worldwide leader in private aviation

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been up a tear since going public in 2019 amid broader market selloff concerns and a downgrade from oppenheimer. the cybersecurity firm recently announcing a new offering for its customers on email protection joining us now in an exclusive interview is cloudflare's ceo matthew. it feels like emails have been ripe for scams and phishing and all sorts of bad stuff for a while. why now are you moving into it >> i think emails are often the vectors where bad guys are getting into corporations. and it's the one area where cloudflaredidn't have an offering so we realized there was a big opportunity for us to provide a new level of service regardless of what email provider and email host a company is using. and so it made just a ton of sense for us to enter the space, and we're excited to bring all of our technology to help people

better protect their organizations from the sorts of threats that come by email >> how bad is it right now when it comes to some of those email threats? say, versus when we were in covid and there were so many cyberattacks going on because everybody was working from home and digitally. >> you know, i think that if you look behind the scenes, whether -- at any of the attacks that are making headlines, often times, and, in fact, the majority of the time the initial source of how attackers got into organizations was through an email. we saw a record number of phishing attacks which are the types of attacks trying to target people stealing their information. it is a source where attacks come into organizations. and we realize that through the total approach that we have to providing network security to our clients, adding email just made a ton of sense. we're looking forward to helping our clients be safer online and hearing about fewer cyberattacks

in the news. >> matthew, your service is really for the real serious coders within the kind of computer world or for big corporate clients? or are you offering retail services to the average computer user like me as well >> yeah. so, we provide services to everything from individual developers up through some settle largest corporations and businesses around the world. and i think one of the things that makes cloudflare unique is because of the fact we service from the very small end to the very large end this isn't something, though, for individual consumers in those cases we don't have a product right now to protect their email inboxes. but we're always thinking about how we can continue to use our network to serve a larger and larger audience and continue on our mission of helping build a better internet. >> so, with that in mind, matthew, what's your read right now on enterprise spending on your products on cybersecurity and specifically which

industries are spending the most >> sure. so i think that throughout the last 18 months as we've lived through covid, we've seen companies turn to the internet more and more. and so that has been, you know, both an exciting time for us as a company where people are relying on the internet more, and they need to make sure that it performs the way it should. but it's also been a struggle because i think a lot of i.t. organizations have really kind of locked themselves down and said we're all hands on deck to stay online and make sure that our teams stay productive. but i think it's changed as now it seems we're coming out of the other end of covid is that i.t. organizations are starting to think about how can they redesign their networks and take advantage of cloud technologies like cloudflare in order to make sure that if we have to go through something like this again or if we continue to support hybrid work environments, that they're not

relying on sort of the old sort of on-premise hardware boxes of the past i think those have been trends that have been helpful for our business i think i.t. organizations are starting to pick up the phone again. and a lot of people are coming to us to choose our solutions and really modernize how they think about their network infrastructure and cybersecurity needs. >> matthew, thanks so much for joining us good to see you. >> i appreciate it straight ahead, we'll look at how washy parker's training in its wall street debut in the market zone which is next. we slipped a little bit but still decent ♪

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and start to rise again. so really only a partial recovery what stands out? >> yeah. the playbook is still in place i would say today is a little bit inconclusive it's a push. we're down 2% in the s&p yesterday. regained a third of a percent of it doesn't really tell you much either way there was some pretty intense action yesterday if you looked at the volumes in the big etfs, it was kind of thorough i still think, broadly speaking, it feels like a month-long shakeout in the context of a pivoting in the market back towards some cyclical themes but it's tough to pick it out of the noise of the headlines and of the just kind of the seasonal static that we've been dealing with for a few weeks >> josh, i'm reminded that last week you mentioned that you'd used the ten days ago monday selloff as a buying opportunity. did you use yesterday as a buying opportunity >> well, all the time depending

on the strategy. absolutely we have to. and i think what's interesting and just keying off what mike said about what's happening beneath the surface here so, the s&p looks way better than the nasdaq. 33% of s&p 500 stocks are above their 50-day so you don't have a lot of short-term momentum helping really anywhere. but 69%, more than two-thirds of s&p stocks are still above their 200-day. like the selloff that you referenced today, the one last week, all of this stuff has happened within the context of a market in which most stocks are still going up on a time frame that's, like, reasonable the nasdaq's much worse. only 36% of nasdaq names are above their 200-day. if you're a bull you might look at that and say this is the washout i've been waiting for since february but these setups are not pretty. the cbo call ratio spiked yesterday but didn't spike high. same with the vix.

23 is not crazy. like, 23 is not a moment where you'd be, like, okay, let me come rushing in to buy everything so you can find a lot of the high-growth tech stocks continuing to puke most of that is related to what's going on with the 10-year treasury and with yields i honestly expect that to continue arc is breaking down beyond recent support arkk is now 31% below its highs. it's at the lowest level since early june teledoc looks tremendously terrible zoom looks awful both of those stocks are puking to new lows. and even the high-quality names in that cohort let's put up a chart of shopify. and then let's look at square. these are important because these were considered to be the best of the expensive tam stocks, if you will. and those are now rolling here

so, i do think it's going to be an s&p versus nasdaq situation going forward i think the cyclicals will continue to benefit from the story with rates and the fading of delta. i don't know that you should be lining up to buy some of these charts that are looking worse and worse right now over in nasdaq land. i just don't see an entry here >> shoutout to whoever's on charts today quick work there, sam or crystal. melody, great work quick work josh, quick follow-up question on that, though. do you fear that if the mega caps, the sort of safe part of tech starts to take part and follows suit within the nasdaq that then your kind of confidence to use every significant pullback as a buying opportunity would kind of evaporate a little bit >> no. i think it's fine. look, those stocks have an outsized impact on what's going to happen at the index level

like, the math is the math so, the question is can you have a scenario where apple, amazon, alphabet, facebook, detract from the index level performance, but then you look and you go, oh, wait, gm is back above 50, oh, wait, jp morgan is 169 breaking out. so, like, you can have that kind of a market where there are very constructive moves in large cap stocks, just not mega cap stocks and maybe you'll look at the s&p and you'll say, oh, it's down 1% this week. but there will be a lot of money made outside of those big cap techs. that may be what brings balance back to the force. so, i'm okay with it if that's the market that we're in that's what seems to be happening right now. it's fine. nobody's getting hurt. >> let's talk about warby parker, prescription eyewear company has gone public through a direct listing today

kristina partsinevelos has a look at it >> it is valued at more than 6 billion bucks after it completed its direct listing this morning on the new york stock exchange a direct listing is when companies issue no new shares, only existing outstanding shares with no underwriters they opened up at $50.05 per share. while the company did start off as a direct-to-consumer play, it has rapidly been expanding its brick and mortar footprint their co-founder and co-ceo outlined his strategy earlier on "squawk box. >> over the last 12 months we've generated roughly 500 million in revenue. but we still only have 1% market share. we just think that we have a lot of white space in front of us. >> the company's strategy is part of a greater trend. the movement of brands to launch online first and bypass whole sale all together. and we can see that shares right now, i checked they were down up slightly, definitely not puking, as josh says

>> no, they're up 35%, not puke. >> right which also shows health of ipo market despite some of the market bumps late. kristina, thank you. shares of tesla up more than 10% in the last month. elon musk joined vox media's code conference last night >> i think the stock price is too high, in my opinion. so, i don't know what we're supposed to do [ laughter ] i'm not the one making it go up. >> in the meantime, vocal tesla both cathie wood unloading larger shares of tesla shares. she bought shares in some of her

other favorites like square, zoom, nvidia and robinhood tesla's up a little bit today, josh, but, i don't know, how do you feel about elon musk talking about his stock price being high talking about how we didn't play that sound bite but also spoke a little bit about how the biden administration is biased against tesla, didn't invite him to an ev event, says because they're listening to unions. it would appear that's probably not what you want to hear if you're a tesla investor. >> i don't know, sara. i would say if you're in this stock as a tesla investor, this is what you came for like, i would say a week where nothing happens is like the worst-case scenario. they love this so i don't know if it's necessarily terrible the ark angle is more interesting to me. she's doing something that is revolutionary, that nobody has ever really done before. when you think of the famous stock pickers and mutual fund

managers of the past, they all had the 13-g system to shield them from having to explain intraday what they're buying and selling. the quarter would close, and then they had 45 days delay to first put something out, and then the internet might pick it up, somebody would write an article and that would be the end of it. she has 500 people waiting every night to see what she's buying and selling. and there's not always a good reason for a buy or a sell other than just making room for different things and it's a lot of spotlight on one person trying to run one strategy i give her a lot of credit that level of transparency, nobody else is doing that. you can't name a famous investor who's subjecting themselves to that much scrutiny intraday. it's wild. so i wouldn't take her sales of tesla to necessarily be, like, meaningful either. there might be a lot of other stuff going on beneath the surface with creation and

redemption an etf manager is not in control the way a hedge fund is in control of how long money stays with them. so, i would try not to read too much into one or two days worth of activity in that active etf or in tesla. >> we get that sort of transparency from you, though, josh, once a week, not once a day, but we appreciate it anyway boeing upgrading its stock to overweight today. the path to recovery and global travel looks secure, they say, as increasing administration of covid vaccines drive traffic to the u.s. and europe as well as new markets. shares of boeing rallying 3% today. mike, i guess yesterday what held up was kind of more safe re-opening plays, banks and some of those energy names, whether they're safe or not but with different characteristics. but clearly a bit of room for the likes of boeing. >> and boeing, of course, it

really does just trade very sensitively to every marginal expectation for the travel miles and the airlines i do think if you look at the airline stocks they have had a little spurt higher recently as well the goldman sachs lockdown measuring any restrictions is pretty much at the lows for this year it seems as if the market's pretty much gathering itself for another little burst higher in travel volumes right or wrong, that's definitely the way things look right now. i would doubt that airline stocks become leaders. the real absolute epicenter of a crisi crisis-type stock. they usually have this massive relief rally but there's room within that to actually have them perform decently here. and boeing is trapped in this range. >> mike, two minutes to go we've lost a lot of the gains. s&p's only up a tenth of a percent. and the dow is only up 78 points we started the hour up almost

300. >> the entire day was within yesterday's range. it was kind of a noncommittal day all around nobody making any real bold moves. you look internally very similar story, a few more stocks down than up in terms of volumes. you might have a little bit of a better advanced decline split. i mentioned earlier somewhat defensive leadership today this also could be kind of quarter-end, grab some of the lagers pharma and consumer staples up 1% or more and the volatility index, it didn't really get back to those heights above 28 and sell off yesterday which it was at the highs last week, 23. it's still on edge we're still waiting on, you know, debt ceiling nonsense and things like that so i think it's probably going to stay this way for a little while. but those would want to see that recede pretty soon >> as we head into the close, we are down more than 2% for the week on the s&p.

the dow is only up by about 96 points up more than 260 at the high of the day. boeing is the biggest contributor to the gain. goldman sachs and american express. s&p 500 remains higher by only a little bit more than a tenth of 1% material communication services and technology all negative in the s&p. utilities the best-performing group today along with some other defensives like staples and healthcare the nasdaq ending lower. that turn in rates, yields moving higher, dragged tech right down with it small caps also lower. >> great balance at 2% a little bit of a selloff in the last two minutes of trade. welcome to "closing bell." i'm wilfred frost along with sara eisen and mike santoli the cnbc commentator. the russell 2000 in the red down 0.2. only about a quarter of a

percent or so. utility's the only one up, more than 1%, whereas four sectors were in the red. coming up, former pepsico ceo indra nooyi on whether she's in favor of raising corporate taxes to fund initiatives that help working families such as universal childcare. plus, we are awaiting a vote in the house to raise the debt limit. we will bring you the results as soon as that vote is complete. josh brown ceo is still with us. and a professor of finance jeremy segal joins the conversation as well mike, i'll come to you first a nice rally we were talking about at the top of the show that started at about 2:00 p.m but all of that, the nasdaq closed in the red. >> on the thinner side, i do think we saw the fact of the big index names in the nasdaq. banks up 1% today. industrials, you know, on an equal weight of basis up 0.4%. it wasn't that nasty a story

inside but i also think it was pretty much kind of a neutral result here for the overall market. you did not find people racing in to buy that debt. maybe there is a kind of a slow motion retest of last week's lows underway in the indexes but if you want to sort of say, okay, does that mean that it's telling us something scary credit markets once again just not alarmed at all by what's happening, whether it is the politics or the economic path. so i do think all those things tell you that we're still dealing with a lot of kind of quarter and positioning noise and people trying to assimilate the fact that we have had some kind of a slowdown how is that going to flow through to third-quarter corporate profits? >> professor, tomorrow is the last day of the month and the quarter, and it's tracking to be a pretty ugly month for stocks worst since september of last year for the s&p and the nasdaq. the nasdaq down 5% for the month. has your bullishness changed at all heading into the year now

that the fed has become more determined to go ahead with a taper and potentially look toward an interest rate hike next year? >> right and i have become more concerned, particularly the interest rate picture. and that depends on the inflation picture. now, friday that's going to be a benign number because that's based on the cpi, which we know is way understating what the inflation is i think when we get the cpi next month, and if it really runs hot, then we could be in trouble because if you listen to chairman powell, he opened the door for faster tapering i think the market is okay with the tapering, ends in the middle of next year but if inflation runs hotter and it's not looking good anywhere on the inflation front, he will have accelerate that

and very honestly, the market is not prepared for that. now, it may not be still october the 13th when we get that cpi, there may be concern earlier but that's the big challenge for the market and i really think that's one piece of my, you know, very much we see the nasdaq be underperforming the standard value stocks and cyclical stocks >> professor siegal, if that happens, an accelerated taper as opposed to sudden rate hikes what would that lead the market to do? are we talking a 5% to 10% pullback >> if he has accelerate it, i think you're in correction territory, which is more than 10%. i'm not calling for a bear market and this could be after the market creeps up another 3, 4% till mid-month or later, it's so hard to time these

but if there is a faster taper, there will be a major correction the market, you know, the story that the low yields are the reason if there's a faster taper, that means the yields are going to be rising earlier, and that will change the mindset i'm not going to say it's happening right now. and i don't think stocks are particularly over. i just think that is the big thing going forward. i am nervous about the trends that i see in the inflation rate >> so, just to be clear, professor siegal, the current time line on the taper as the fed laid it out or hinted strongly last time is they would announce it in november and it would wrap up in the middle of some time next year. is that an accelerated enough time line though for the market to be wobbling here? we certainly have seen that in recent days and weeks, but does that continue? >> that's an okay time line.

but if inflation runs hotter, and i think it will run hotter, but if it does, there will be pressure on him finishing the taper earlier and saying we now have to move cloeszer to when we raise rates to slow down the inflation. clearly the market is not ready for that that is number one threat i think in the stock market for the rest of 2021 >> josh, you're still quite relaxed if these types of things do play out and we do have accelerated tapering >> yeah. i want to ask a follow-up to professor. good to see you, my friend what would be the urgency for accelerated taper if they're not even thinking about raising interest rates so, i have this theory that the reason why the stimulus is 120 billion a month, right, 40

billion mortgage bonds, 80 billion treasuries, is specifically so that they would have a year to take $10 billion off of it, similar to the last time they did a taper. they would have a full year each month, month by month taking less and less off. what would put them in a position where all of a sudden it would be worth it accelerate that and say, oh, by the way next month we're taking 20 billion off the stimulus it seems to me that they would never do that, almost no matter what happens because of that continuity they're trying to provide us all with so what do you think would cause them to suddenly do that >> well, josh, i think it's going to be bigger than 10 billion a month. to finish by the middle of next year, you need to do 15 to 20 billion a month. but if we start seeing, you know, 0.6, 0.7% per month inflation data, october,

november, december, we all know cpi is way understating the housing inflation, the rental inflation is almost nil in the data right now and it's all going to -- look at the shortages that are going to come in the fourth quarter i mean, they're not measuring the inflation because people can't buy the goods. many people say i'll pay 10%, 15% more to have the goods today if i can well, they're going to come on and they're going to come on more expensive and the fed cannot ignore the inflation mandate. it has a dual mandate, not just the employment, which it says it is almost. but if it ignores the inflation, that is number one fault of the central bank that is very detrimental. they're going to have to move faster, and the market is not prepared >> yeah. it's certainly a risk out there. hang on because we do want to hit the "delivering alpha" conference it is a risk it's underway right now.

our headline conference, some of the biggest names on wall street advising investors how to navigate this market leslie picker here with some of the highlights from the day. leslie >> sara, one of the more confusing ways of navigating the market is through crypto, although it has been a huge outperformer of alpha recently, delivering more than 250% returns for expert investors in that area. now, several prominent managers making news at the "delivering alpha" conference with their crypto news today. >> how could you not love crypto look at the movement aren't we all tired of paying all those transaction fees and exchange rates and seeing currencies in different countries being completely devalued and watching our friends in argentina carry -- around to try to purchase based on inflation rates i mean, crypto is just a great system it's frictionless. it's decentralized and young people want their own

financial system so it is here to stay. >> bravo shared that he owns bitcoin and is, quote, very bullish on it. and katie haun is considered one of the fourmost investors in crypto she said many in the crypto industry actually want regulation, but it can't be a one-size-fits-all approach >> a lot of people, there's a myth out there that those in the crypto industry don't want regulation, and that is actually, i can say, a myth. it's not that the industry does not want regulation. i always say it wants clarity. but it also does not want to be treated as a monolith. >> jim coulter says he thinks bitcoin is interesting, but carbon credits is really interesting. still to come, what's sure to be a fiery conversation beginning in about 20 minutes' time guys >> all right, leslie, thank you. by the way, not too late to sign up for that conversation. you can get all that great

content on demand. just have to go to deliveringalpha.com. we know that's been happening. what's notable is how bitcoin has acted during some of these big selling days on the back of higher yields. bitcoin looks a little more like a tech stock in terms of the price action than gold or any kind of safe haven currency, which a lot of people embrace it as what do you make of it >> yeah. i'm glad you noticed that. bitcoin's correlation to the nasdaq 100 disqualifies it from some of the ways in which it's being described as an aid to a portfolio. hopefully that doesn't continue for very much longer but you're absolutely right. i think a lot of the sound bite's coming from the conferences in general i was at salt a couple of weeks ago. i would imagine that'll continue through the end of the year. i think it makes people in what's being referred to as

tradfi, traditional finance, feel like they're cool you see them wearing sneakers and stuff cool they're wearing t-shirts and trying to talk about bitcoin as much as they can i totally understand that impulse. i'm not mad about it but i think that there's very little substance to most of what people are saying about it these are not the sort of people that are sitting in the discord chat and listening to people explain papers and white papers and really going through these projects these are not the people listening to the into the ether podcast or reading packy mccormack. they say this is the new cool thing and let's trade that and if you tell me in six months there's some other thing that's going up, they'll move on to that so i wouldn't worry too much about this institution and that hedge fund, quote, adopting crypto most of these people will gamble on anything. >> josh brown, thank you very much we'll leave it there >> you know i'm right. you won't say it, but i'm here

to say it. >> no, right that's why we turn to you. >> all right see you later, sara. bye, wolf. >> thank you up next on the show, black rock's russ on whether he believes today's muted bounce is for real and which sectors he's recommending to his clients on any other market pullbacks later former pepsico's ceo indra nooyi on how the pandemic has distorted the work/life balance and how corporate america can help fix that. we're back in just two minutes

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strength has been pretty extraordinary. do you think it can go on? >> i think it can. and it's pretty important for a couple reasons i'd say from our perspective one of the things we've been relying on more in the last, call it three or four months, is the dollar is a hedge. you're not getting the same negative correlation, that same portfolio efficiency from bonds. but you are actually getting from the dollar. we've been raising our dollar allocation particularly against the euro because on days like yesterday and again today is the market weekend, the dollar's actually proven to be a pretty effective risk mit gant. >> so, you think it doesn't hurt u.s. equities or it's the perfect hedge in that sense? and how does it inform your kind of sector allocation, if that is to continue? >> so, it's not that it's -- you know, again, the dollar rising is a de facto form of tightening financial conditions

now, fortunately, most things are going the other way. we're still in a period where financial conditions are ridiculously easy. i think that's one of the factors that ultimately support stocks but as you think about the dollar, part of the question is how is it moving versus risky assets and what has been happening for really the last six months is the dollar's been moving with a negative correlation to stocks something we used to see from bonds, not as much these days. and we think about what are the hedges in our portfolio? it's not rates nearly as much. it certainly isn't gold. the dollar's actually fulfilling that purpose, which is why we've been raising that allocation as one of the few reliable hedges that are left. >> what are you guys doing in china, russ? black rock was so bullish in china for a while, and we've had this big blowup of evergrande and a potential debt collapse here, which looks like it's going to be staved off for now so what do you do? are you dipping back in?

>> we're pretty steady in china. we haven't really done much in the last few months. we've got some small positions in chinese government bonds. we do have some small positions also on the equity side, mostly in technology. we're holding there. i do think, you know, one of the reasons we and i think black rock in general are constructive about china is not that there aren't real risks, but the chinese authorities do have considerable latitude. china's been running one of the most orthodox monetary policies of any country over the last year if china feels that they need to stimulate the economy, they need to put a floor under the economy, they do have the wherewithal to do it and they are likely to basically do what they need to do to support the broader environment. >> pivoting back, russ, to u.s. equities what have you been doing over the last couple of days of weaknesses is this a buying opportunity, or are you waiting for a certain level before you kind of see it as a buying opportunity?

>> wilfred, i don't know if there's a magic level where i go all in we are starting to look for opportunities. the last few days have been obviously painful. i think today has not inspired anyone in terms of a balance we know september is week. it's living up to that reputation things do start to get better as you get later in the fall. and i do think that some of the issues that are headwinds for the market now, whether you're talking about china, the budget negotiations in washington are likely to get resolved over the next, call it, four to six weeks. so we are looking for opportunities in the market. we're actually looking in a lot of both the beating of growth names which have been hit hard both in tech and also in healthcare, and also emphasize the consumer side. there are some risks, higher inflation is not good for middle-income consumers. higher gasoline can also be a headwind but the fact remains this is a very good environment by some measures the best in decades for

the u.s. consumer, wealth is at a record high. we've got more job openings than there are unemployed we've got about 2.5 trillion of excess savings that has been put into bank accounts over the last 18 months. so we continue to like the consumer and we continue to add positions in that sector >> russ koesterich, thanks for joining us with your views, as always, from black rock. >> thank you up next, former pepsico's ceo indra nooyi on washington's huge spending plans, and whether corporate leaders should be speaking out on political issues and later elena hernandez and why she thinks puerto rico is an attractive place to invest right now. we'll be right back on "closing bell." that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online

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former pepsico chair and ceo indra nooyi's new book "my life in full" hitting the shelves this week. wall street knows her for building pepsi into one of the biggest food and beverage companies in the world successfully fending off activist pressure to split the company in half. but in this memoir, the focus is her story and the parts of her life investors and consumers didn't see, being a wife, being a mother, a daughter, and all

the demands that come with that while leaving a fortune 500 company. i sat down with her to discuss all of it and asked her whether she ever found that balance between work and home. >> there is no balance it's a juggling act. somehow you've got to have all these balls in the air and learn how to juggle them so they don't drop sometimes they do drop, so you've got to live with that i think the key thing is to have a spouse that commits to equality in the home and supports you every step of the way. an entire ecosystem between family members, neighbors, the community helping you with juggling all of these various priorities and responsibilities that you have. and somehow figuring out a way to stay current in the workforce. and it becomes difficult because you've got remain a lifelong student. you've got to read and absorb. and in my case it was because i didn't sleep much and i fortunately had a decent memory retention power. so somehow i put those all together and managed to keep all

of these different parts of my life in harmony. it wasn't easy, but somehow managed to do it >> you know, the pandemic has changed work/life for so many people it's distorted the work/life especially for women do you think on the other side it becomes harder or easier? >> it's harder if there is no separation between your work and home in some shape or form because if it's completely blended in, what happens is you end up being the one making all the sacrifices when there's limited broadband access, the woman ends up being the person who gives up broadband access for the kids and the rest of the family if somebody needs to have a birthday party planned or kids running around with problems, i'm noticing that women end up giving up what they have to do with their paid work to be able to keep the family going i think first of all in families people have to talk about equality if there is a partner involved but many families are also

single-parent families i think it's very, very difficult for them to navigate through all of this if there isn't some separation of work and home so i'm a big believer that it may not be all five days of the week, but some days you have to go into work so that you can actually have a work/life where you understand the company culture, understand who's on your team, and then come back home and work flexibly from home some days, but you always know you have the option of going to work in order to be able to work in peace, work in a focussed way so you too can advance in your job. >> almost all developed nations except for the u.s. have done a lot more when it comes to parental leave and universal childcare and just more support for the family and for women in particular at home do you see this as a problem for corporate america or an american problem? >> i think corporate america with communities, states, ngos,

everybody has to come together and families all come together and address this problem as a systems problem. i think if we punt it to corporate america, then you're leaving behind all the government, people who work in government or state governments or who work in small and medium-sized enterprises you can't just say it's a corporate america problem. on the other hand if you punt it to the federal government and say it's got to be a big governmental program, nothing happens and it gets caught up in the politics i think this is one time everybody has to come together and say what's a sensible way forward. >> absolutely. and i think some of it is being addressed. president biden is working toward that in the build back better reconciliation bill that's currently floating around congress at least child tax credits, more care for universal child preschool care do you think corporations should pay more in taxes to fund these sort of initiatives right now? >> i think the bigger question we should ask ourselves is i too

have seen it in the bill for build back better. why isn't there more of a support rising up for this bill? why are people still questioning whether this should be done? why are people skeptical about whether this is a good spending of taxpayer money? it's time that we move beyond discussing whether this is a good program to talking about what's the best way to design it and implement it fast. and that's where we are in this fork in the road at this point because i'm afraid that in all debates and discussions this program will once again be either cut back significantly or go to the backburner so i think corporate leaders need to lean in big time and have their voices be heard as do community leaders and ngo leaders and families and everybody has to come in and say we need help, guys if you want the best and brightest to be engaged in paid work, we need help and i think this program is only going to see the light of day if

everybody stands up and says let's act on it. >> but you've seen the criticisms, adding trillions more potentially to the deficit or at least spending trillions more, adding to the entitlement programs, raising corporate taxes and potentially hurting growth at a fragile time you've heard all the arguments against it >> i mean, i've heard all the arguments. again, i'm not a policy person in the strictest sense i'm more of an economist trying to think about how to allocate the resources the right way to grow the gdp of the country. i'm not an expert, but the experts need to come together and look at the program in its entirety, the whole build back better bill. look at it in an entirety and look at each bill and see where should it be prioritized, rather than dismiss the whole bill as a government giveaway. let's look at each of the pieces the devil is in the detail >> here you talk about policy as someone who's covered you for many years people always ask, do you think she'll join the administration

after you step down as ceo of pepsico? has that ever been a consideration for you? and is it something that you would be open to >> no, i am not a political person i'm a corporate leader who wants to give back and help make change, but outside of the political system >> it does raise the question about this whole notion of corporate leaders getting more involved in politics, or at least politically charged issues that impact our society. voting rights, abortion laws, just really heated topics. what do you think is appropriate on that front in terms of ceo engagement >> it's a tough question, sara, because i've always said even when i was ceo that wherever you take a stand, one-third of your employees support you, one-third of your employees are against what you did and one-third are quiet. so you can either say two-thirds support or two-thirds against. the problem with corporate

leaders is they're expected to fill a void because nobody else speaks up. and if you don't speak, people go, hey, why are you running such a big enterprise if you don't speak up because at the end of the day in a capitalist society corporate leaders are all that matter. but it can't just be corporate leaders carrying the torch for all issues then it becomes, are you busy running the company or are you focused just on social issues? why aren't corporate leaders speaking up as much as they are? the reason they speak up is because they need to hire the best and brightest people in every state that they are operating in and if a certain state is not conducive to hiring the best and brightest, they have to speak up and say don't like what's happening in the state because i cannot do business in the state by hiring the best and the brightest. so corporate leaders come at it through a how do i best do business in that state and they don't want any state to be excluded because they want to be able to do business in all

parts of the united states so i think when corporate leaders speak up, they're speaking up because they're coming from a point of view which says give me the whole country as my oyster to do business in. >> our thanks to indra nooyi who is the former chair and ceo of pepsico. when i talked to her about why she wrote the book, which, as you can tell a little bit from the conversation does turn from memoir to manifesto at some point on things like paid family leave and more access to free healthcare and childcare and more flexibility from corporate america in terms of hours for women and for family she said she was originally going to write a series of policy papers but she was then told that nobody reads those things so she wrote a book instead and clearly making an impact by sharing her story. a diverse woman who rose the ranks and did it, as she said, without a work/life balance. but eventually did it and learned a lot of things along the way.

>> i love how you say that memoir to manifesto. but very resounding clear answer of would you like to go into politics no, with a nice good pause after that no room for interpretation there. great stuff though, sara i really enjoyed that one. indra nooyi with sara. up next, mike santoli looks at another potential headwind for the market after stocks lost steam into the close plus, elena hernandez on whatec stors investors should be buying amid inflation concerns we're back in a couple of minutes.

welcome back time for a cnbc news update with shepherd smith >> here's what's happening now deadlines, stroke of midnight tomorrow night yet still no votes scheduled on capitol hill to extend funding for the government and avoid a government shutdown. the senate majority leader chuck schumer saying he believes there is time to extend through december 3rd youtube with a big move today,

announcing a total ban on vaccine misinformation it's removing all such posts and shutting down the accounts of prominent anti-vax influencers youtube already had a policy against covid misinformation but this new ban is much broader. it includes getting rid of claims that vaccines are dangerous, don't work, or that they cause autism or cancer. none of that is true in a blog post the youtube reports, it came up with this new policy after false claims about covid vaccines started to spill over into other vaccines and britney spears having her day today. a hearing in her conservatorship set to begin any moment now. the judge in the case expected to decide whether her father or anyone else, for that matter, should serve as her conservator. britney spears asked a judge during an explosive hearing back in june to end the 13-year court-ordered conservatorship under which her father jamie had near control over her life

jamie spears then positioned the court to end the conservatorship all together tonight we'll have the decision from live outside the courtroom where members of the free brittany movement are out in force in support of the pop star that's "the news" right after jim cramer 7:00 eastern cnbc sara, back to you. >> all right, shep, we'll see you then now let's go back to mike santoli who's taking a look at earnings expectation, mike, amid this bumpy ride in the market. >> yeah, sara, it's kind of the heart of the matter. and this has kind of flattened out and rolled over a little bit. the projections for s&p 500 ear earnings this year and left. the third and fourth quarter numbers are left and third-quarter estimates have been racheted down as we head into the end of the quarter and into the reporting season. that's a little bit of a change. we went in hot to these other quarters of the year, though we did step down a little bit at the very beginning of the year maybe it's a little more of the normal cadence where analysts

kind of trimmed their expectations going into the reporting season not a lot of movement on the 2022 number. it's coming in right now just under $220 a share so, as we sit, that's about 20 times earnings projected for the year that's going to end in 15 months it's on the higher side, but probably not crazy in the context of a bull market given the composition of earnings with all of these big fast-growing growth companies unless, of course, yields and inflation are kind of surprised to the upside which sometimes makes people feel less, or at least has historically >> yeah, a lot of them have been able to pass it on, have their pricing power lately thank you, mike. up next, warnermedia's ceo weighing in on which of his competitors poses the biggest threat to his business right now. you may be surprised by the answer a check for you on the big winners in the communication services sector today. have aite biof ltlt a

bounceback we'll be right back. we'll be right back.

at the code conference this week, the future of streaming and the role of video games was front and center our julia boorstin was there >> the streamer wants to invest more in content and also in games. and then last night the company announced its first big game

acquisition, buying developer night school known for titles such as "oxen free," a supernatural adventure game. they also took a dig at the studios saying they are conflicted in the way they distribute content warner media's ceo told me that that acquisition was insincere, that his biggest threat isn't netflix, but rather amazon >> i would probably say amazon would be that company, simply because of their breadth, because of their depth across a whole host of different things, both devices, content, retail, of course. but i do want to kind of talk from my own book a little bit. we just grew revenues 31% last quarter for warnermedia. >> hbo max is continuing to roll out internationally adding six new european countries this month. he didn't rule out potentially

even adding games to hbo max guys >> you heard from so many leaders, julia, in media and entertainment and tech over the course of the conference what do you come away with do you still get the sense that we're in this continuing bull market for content where the streamers are just racing to add new content, pay a lot of money for it and continue to add subscribers? >> yeah, absolutely. i did get a sense that these companies are going to continue to invest in content but the definition of content may be expanding it's not just about series and movies it's also about this game content. and it's really interesting because they are also navigating what the future of the theatrical movie business is going to look like warnermedia movies, warner brothers movies are available simultaneously in theaters and on hbo max this year that's going to end next year. but there is hope that once the delta variant feels a little bit more under control that people

will be getting out more frequently into theaters the question is do they go out to fewer movies than they did pre-covid? but still a lot of investment in content right now, sara. >> julia, great stuff. the coverage was awesome over the last couple of days. thank you very much. up next, bracing for a market speed bump. stocks rising steadily so far this year. but some big potential risks to your money could still be looming. gentrust's elena hernandez breaks down the biggest headwinds she's watching, after the break. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. ♪♪ whose resumes on indeed match your job criteria. ♪♪

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or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. welcome back puerto rico expected to receive $43.5 billion in federal assistance for the pandemic by 2023 according to the fiscal oversight and management board it's also expected to receive the remaining 70% of at least $63 billion in disaster relief from congress towards recovery from hurricane maria could all of that make puerto rico an island of opportunity for potential investors and lots of other factors, too, of course let's bring in gentrust principal elena hernandez originally from puerto rico. she joins us from the island where she leads gentrust's office there very good to see you thanks very much for joining us, elena. i really enjoyed reading some of

notes you shared ahead of this one of the takeaways being that you think puerto rico increasingly is a great source of capital to raise to invest from a growing economy there, but also a place to put that money to work as well. >> yeah, absolutely. i mean, we see so much opportunity in the island of puerto rico. as you mentioned, there are a lot of federal funds that are still yet to arrive but have been assigned to the island. there's a lot of kind of pent-up need at work on infrastructure, we've seen a huge acceleration in the state market both personal as well as industrial in the island. the island is one of the leaders, again, in the pharmaceutical industry. we're like the fifth largest manufacturing hub right now for pharma in fact, 90% of all pacemakers in the world are produced out of puerto rico. and five out of the ten biggest

drugs. so we've seen an expansion in industries, pharma, biotech, software, et cetera. obviously the continuation of the tax incentives have helped but also we've seen a silver lining to the horrible tragedy of hurricanemaria, and now wit covid, with all the federal assistance, there could be a lot of opportunities moving forward, if spent correctly >> in terms of what particularly the investment opportunities are in puerto rico, and where you're putting money to work, what type of assets are we talking about public market assets or private market, for someone on the ground with access like you? >> both of my thoughts in both aspects. when it comes to public markets, we know the story of the puerto rico bonds that being said, we have a restructuring, you know, that we are hopeful there will be an agreement. if that happens, and it's confirm, we actually do think

there will be a pretty good amount of demand coming in for high yields. so that could be ab, there's a lot in regarding to businesses we have seen the same sort of trend that you have seen in the u.s., in the sense of create and expansion in the island, so there's a lot of opportunity in different uindustries going forward. >> i remember when john paulson made news a few years ago in investing in puerto rico a number of hedge funds really poured into puerto rico. i think they lost a ton of money, whether it was the bond issues, the hurricanes, so has

that capital dried up? >> we have seen a huge migration from the united states to the puerto rico for many reasons you have a stable u.s.-based economy. you have a have i similar laws in most are vertical to the u.s., if not falling under u.s. laws and then you have the tax incentives that the government has created to engage more companies and individuals. i think there are definitely opportunities. obviously there has been a tricky history, but the real yesterday is point is coming back stronger, resilient, with entrepreneurs, some businesses that either have sold their business or merge their business, or being funded by, you know, private equity in the u.s. coming into puerto rico you can see the strength, kind

of the elevation that these businesses are gathering from all these assets interested. also, in interesting opportunities of yield and of growth you know, remember, puerto rico is kind of a window to billses in latin america, too. so there's accelerators on the islands helping company through latin america, trying to expand in the u.s., et cetera so they, you know, the window of opportunity has expanded so much, just because we have all these kind of new procedures and opportunities in place >> elena, in terms of the broader markets and actions we have seen, yields rising obviously fairly significantly in the sell-off, do you think there's more of both of those moves to come, or sage a buying opportunity. >> we're long-term investors, so in the big picture, the mark is

up about 3% from the high. it's not a huge move, so in terms of a buying opportunity, it might be for some, but what i would say is that, you know, the reasons we see why it happened, and why investors have to be cautious, obviously the main reason is i think the market is waking up to the inflation fears. a lot of people are still in the camp that inflation is transitory, and we've never been in that camp i think as we see more costs continue to stay high, supplies, logistics, commodities, et cetera, they're kind of rethinking that and adjusting their portfolios toward it i think in terms of rate, if you see a jump above 175, i think you'll get an equity market move repricing, but i think for now we're expecting the range to stay between kind of 125, 175,

unless you have bigger inflation prints, or drastic other news, that the debt ceiling doesn't end up coming to an agreement, or, you know, it goes into a bigger issue, but for now we don't see that happening they're going to deal with it quietly. or be raised, i should say, closer to the date that secretary yellen gave us. >> elena hernandez, thank you for joining us >> thank you for having me. from gentrust. up next, jay powell and nejat yellen gearing up to testify before the house tomorrow. that's straight ahead after the break.

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we will get earnings tomorrow jobless claims and real gdp are on deck, and testimony before

the house financial services committee. so anything, mike, that powell says on inflation and the moves we are seeing right now potentially on interest rates and reaction to the fed laying out a taper timeline, potentially cease there's nor upside risk will be scrutinized by the market, as well as his tenure, after he got blasted by senator warren, and some of the vacancies now at the fed. >> his tone has somewhat shifte on china you wonder if that allows the market to feel as if there's a bit of room between any further inflation prints and any change in the timeline for the fed. we're also looking at euro zone inflation tomorrow, which is not usually a big market mover, so

we'll keep an eye on that. >> it's been an extraordinary week for the dollar, and the euro bearing the brunt i wonder whether powell will try to pull back a bit of that structure comment that came yesterday. we are out of time here on "closing bell. thanks so much for watching. "fast money" starts now. live in the nasdaq marketsite, this is "fast money. i'm melissa lee tonight on fast, trouble in the charts, and one chart technician says go ahead ready for more down side ahead. plus, game on. netflix shares rallying, as they make a big move into video games. options trader and why they see a