and old navy i like the pull back and would be a buyer >> interesting it is one of the stocks you mentioned, josh, as well what is your final trade >> stephanie >> yeah. >> did you see the easies though >> we have ten seconds ten seconds. >> what do you think all right. >> no. >> final trade, amazon >> all right yes, steph a new hoodie. have a good weekend. "the exchange" starts now. now i need to know, now i got to check it out. thank you, scott hi, everybody. i'm kelly evans. ahead this hour a major breakthrough in the fight against covid-19 merck's pill cuts hospitalization rates. the stock is soaring, giving a big boost to the dow we will dig into all of it supply chain woes are slowing growth, auto sales falling as there aren't enough cars to sell we will talk about the impact of the chip shorter with former nissan ceo carlos ghosn and ask about his escape from japan. plus, a safety pick, a deal is gone, a settlement, and will

all-you-can-eat save movie theaters if we have gotten to this point, i think we know the answer get your popcorn ready for rapid fire, but beginning with merck news dom is here with the numbers >> i used to buy popcorn because it was free refills on the large. anyway, kelly, working a nice rebound today. it has been a seesaw session i had to get that off, seesaw session. we have seen gains and losses but right now floating towards the positive sides of things, at least for the dow. three-quarters of a percent to the upside the nasdaq lagging a little bit here, just about flat on the session. a real sentiment helper this morning, the premarket in the early session today has been merck shares the idea they could have an anti-viral drug, a medication that could cut hospitalization rates by 50%, helping to propel the shares to the highest levels we have seen going all the way back to january of this past

year it is off session highs right now. merck, one of the big drivers in today's session so far and it had a carryover effect in other parts of the health care, biotechnology, pharmaceutical space. if you look at other treatment makers like regeneron, off 5.5%. a lot of the vaccine makers are seeing some weakness the context here is companies like novavax, moderna, pfizer, biontech have seen nice rallies because of their covid vaccines or covid vaccine candidates, but in this session novavax is down 16%. moderna is down 11%. pfizer is off 1%, and biontech, pfizer's partner in its covid vaccine, off 9% right now. kelly, watch the ripple effects for merck. we will see if it carries through. again, many of the vaccine makers or vaccine candidate makers have done very well up until this point here, giving back some of the gains today back over to you >> yeah, we've heard the huge debates about what to do with them now, dom. stocks generally are holding on to gains following the positive news about merck's

covid drug could better covid and economic data give us an october to remember in a good way this year joining me is barry james, president and portfolio manager at james investment research great to have you back you have been cautious about some of the headwinds for the market this year what is your thinking now, now that we've had this reset? >> thanks, kelly i got a word for you, it is called confluence. it is kind of a weird word, but if you go just north of st. louis you find the confluence of the big money, which is missouri, and the mississippi river. up to that point the mississippi is a nice, green river then the big money comes in and we know what the mississippi is like after that. well, the big green part there is low interest rates, easy fed, great earnings, and it has favored, you know, the stocks in the technology area, growth and large cap. but the big muddy, that's what is coming in right now that's where we are. that is, you know, higher inflation, higher interest rates, and one thing that is surprising people, we are seeing

earnings estimates going down, not up research says that's not a good thing when that starts to happen because it has always been up, up and up for the last quarters. so that tends to favor smaller cap, more cyclical, and more value. so that's what we're focusing on today in our golden rainbow fund >> now i'm google mapping the areas that you are describing. i wasn't sure if you were saying big money or big muddy in this case we are interested in both. you have a couple of names that you think could do well in this environment. matador, fifth third bank, old dominion as well old dominion has not been a great story this year. there are so many headwinds on the supply chain and labor front. do you see those getting resolved >> well, when we look at old dominion, it is way ahead of its competitors in terms of its margins, in terms of its free cash flow, and so there's a lot of things that we really like. they're rewarding shareholders i always like it when they reward me with dividends or

share buy backs, things of that nature we think those are real good but they're best in class and they're keeping their drivers. a lot of people can't, but they're keeping. they're investing heavily in that, and we think that the supply chain problem will actually work to their favor >> barry, can i ask you about energy just curious for your thoughts, what you make of the big run-up in prices, the global supply crunch, what is it going to mean for the u.s. would you be long any names in that space >> yes we've been overweight in our golden rainbow fund for a while now in the energy sector, and we like, you know, the producers out in the field like matador. they're more permeon basin but they have real high revenue growth they have great operating margins and they're paying down their debt rapidly those are three things we think are important for any company you buy right now that have quality, and the other is pricing power. if we go hat in hand to opec, that's one of the big things to me prices are not going to be coming down any time soon, and we have not recovered all of the

drilling that we had, you know, with the last -- the last kind of slowdown that we saw and all of the stuff, you know, offshore with the hurricanes. so we think there's still plenty of room left in that area and probably higher prices yet to come in energy, and so there are a number of energy companies that would be worth while picking up >> i didn't even realize matador was one of them. you're two steps ahead of me they're a $4.5 billion market cap, and that's about tripling this year. how long can you feel comfortable being in some of these names? we've seen huge gains in some of the pure group as well, anteros of the world, range as well. you have to wonder with the entire global maker complex leaning against higher energy prices, leaning against fossil fuels in the long run, how do you know when to pocket these gains and step to the sideline >> well, that's a great question when we look at our research, when there's a growing, growing

surplus, you know, we see the -- you know, the tanks are all full and they're just lined up offshore to bring oil, you know, into the states, that's going to tell us that the price has probably reached its zenith. we don't think we are there yet. even if we are near a peak, the earnings that are coming in right now i think are pretty strong and will support the companies for the moment so we don't see it in this next quarter at least >> all right i'll describe you as tactically optimistic on the markets, certain areas you do feel comfortable. thanks for joining us to talk about them, barry. we really appreciate this always barry james is with james investment research. coming up, from auto exec to international fugitive, we will speak with carlos ghosn about his new book, the state of the auto industry and his life following his daring escape from japan nearly two years ago plus, we talked about the surge in net gas prices but now bank of america is out with a

cold call, saying prices could be up over $100 a barrel they're ahead on the commodities exchange this is "the exchang o bce"n

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early last year, and now we're getting a look at how much supply chain issues have slowed the automakers' sales in the last few months. phil lebeau is here with the numbers. >> hey, kelly. it was a rough third quarter and the numbers we are getting today back it up take a look at the third quarter sales from general motors, honda and niece saw. gm down almost a third compared to the same quarter last year. when you look at toyota, doesn't report on a quarterly basis but for cement down 22.4%. finally, tesla we haven't received the delivery numbers from tesla we likely will get them tomorrow or sunday. the expectation is for a record quarter when it comes to deliveries we will have more on auto sales throughout the day i want to pivot to carlos ghosn, the former nissan chairman and ceo who joins us live from beirut, lebanon, where he is promoting a book he has written about what has happened with his liechl, especially over the last couple of years. carlos, thanks for joining us. there's the book, "broken

alliances," which you have written. a big question a lot of people have when i bring up your name, they say, he's in lebanon, what are the chances he is there for good or does he think he will ever leave lebanon >> oh, i hope i will, and i'm fighting for it. i mean the only thing that forbids me to get out of lebanon is the fact there's a red notice sent by enter poll at the request of the japanese authorities, but there are ways to fight the red notice because enter poll has its own rules usually when human rights are violated they should not intervene. when the issue is political, they should not intervene. when the issue could be solved outside the legal boundary, they should not intervene so i have these three elements in my case so i have to be patient, but i obviously hope to be able to leave lebanon one day. >> carlos, since we last talked, americans peter and michael taylor, were sentenced in japan for their roles in helping you escape from that country i think one of them received one

year and eight months, the other received two years in prison what did you think as you saw their legal case unfold? >> well, frankly, that means -- you are mentioning the taylors, i would mention greg kelly which is still struggling with the japanese courts. all of this turns around the hostage justice system in japan. you know, frankly the statistics of the prosecutors winning 99.4% of the cases is, frankly, just amazing, amazing not only is the statistic amazing, how can you win 99.4% in a supported democratic country at the same time you are proud of it. you are saying, my god, the prosecutors are doing a wonderful job in japan because they're winning 99.4%. we never talk about the defense. we never talk about the judge. it looks like they are, you know, just establishing the sentence and making the decision and everybody else is just a decoration

frankly, i feel bad. not i feel bad for them, i feel bad for all of the people who are going through the system, particularly if you are poor >> carlos, separate from your situation, you are watching the auto industry. i know you still talk with a number of people in the auto industry what do you think about this transition we are seeing with so much money being poured into the development of electric vehicles right now? >> oh, it is normal, phil. you know, i know this is a 13-years-old story when i launched the first mass market to the electric car. i told you we were going to get there. a lot of people were skeptical now the whole industry is about a transition to electric car you know, this industry is about three things now, electric cars, autonomous cars and mobility for all. we are seeing this unfolding in front of our eyes, and those who prepare for this, invest in this before the others will be the winners, who will be the winners of the game. it is amazing to see how many companies are saying, you know, we are going to abandon completely the combustion engine

in 2030, in 2035, 2040 the same company which in 2008 when i launched the first series of mass market electric car were laughing and were very skeptical about it >> you and i have talked you have had great things to say about elon musk and tesla when we've had conversations in the past put tesla aside. we know that they're the industry leader right now. is there one automaker that you look at around the world and you say, if there's somebody other than tesla that's going to rise up and truly be the company that's going to take tesla off the king of the hill in terms of electric vehicles, which company would it be and why? >> well, in my opinion it is going to be a german company i would hesitate to tell you if it is going to be mercedes or volkswagen volkswagen and the whole group of the company i would say the germans are the ones who after criticizing the electric car in 2008 and mocking

it, you know, discovered all of a sudden that they needed to move, and they moved swiftly japanese are late. they are stuck in with the hybrid and now with the hydrogen cars maybe hydrogen cars, which we call dfuel cell, will come one day, but the next 10 or 15 years are going to be the era of the generation of electric cars. >> are you surprised the japanese automakers have taken so long to really get their act together when it comes to investing in electric vehicles >> not at all. you know, the strength of the japanese is, you know, the rigor by which they can enhance and develop systems that they adopt, but it takes a long time for them to adopt an innovation, and for electric car, except nissan that i was leading at the time, they were very, very slow to move and they are still slow to move, and they're going do pay a high price for this. >> and what do you think about a lot of these startups.

we just talk about the motors that sold their plant to foxconn. what do you think happens to the other startups, do they last five, ten years? >> look, the startups are normal when i see all of the big carmakers are so slow to react, an innovation that obviously makes a lot of sense, which is obviously part of this industry, and they see that, you know, not a lot of companies, established companies are jumping on the bandwagon, obviously it favors startups who say, okay, let me occupy this space. so i think a lot of the startups will prosper as long as they put their act together and they really operationally are able to offer what the consumer wants. so i'm very optimistic about some of the stocks around electric cars. >> carlos, thank you for spending your friday night in beirut, a little bit of it, with us here is the book i know you are out promoting right now, "broken

alliances. carlos ghosn, thank you for joining us from beirut, lebanon. kelly, i will send it back to you. always interesting to hear what carlos has to say, especially to get his thoughts on where the industry is right now. >> yes again, saying people laughed at him when he was pioneering ev cars with nissan more than a decade ago and still thinks the japanese might be late with their focus on hydrogen. thank you for bringing that tous that's our phil lebeau speaking with carlos ghosn. eamon javers is here with the story. >> kelly, the department of justice says a texas man has been sentenced to ten years in federal prison today for his role in a plot to blow up an amazon data center the department of justice saying seth aaron penley, who is 28 years old, planned to blow up an amazon data center he said he hoped a successful attack could kill off about 70% of the entire internet he also claimed to a person who was observing him that he had

been present at the january 6th attack on the united states capitol building here is a quote from penley to an fbi informant saying, the main objective is to f-up the amazon servers, adding that he hoped that anger at the oligarchie would be enough to provoke a reaction that would convince the american people to take action against what he perceives to be a dictatorship in the united states on april 8th penley met with an undercover fbi employee to pick up what he believed to be explosive devices. those devices, the department of judge a justice says were inert, and then he was arrested subsequent to that. the headline here is a texas man has been sentenced to ten years in federal prison for a plot to blow up an amazon data center. of course, kelly, this raises the specter of a terror threat not only to amazon but other potential american companies in the wake of the january 6th attack on the capitol. this appears to be at least

ideologically linked to the attack on the capitol. back to you. >> a reminder cybersecurity isn't the only kind of security these companies need to worry about. thank you very much, eamon jaffers in washington today. coming up, congress prevented a government shut down before the midnight should down but couldn't pass the infrastructure bill, yet plus, el salvador is harvesting the power of a volcano. it is not that one that is from hawaii. we will give you information shared by the country's president. stay with us on "the exchange.

♪ ♪ welcome back, everybody. quick check on the markets show the dow up 340 points paced by merck, up 9% after its oral

treatment for covid. the dow, again, up about 1%. s&p up two-thirds of 1%, nasdaq hanging up to a quarter of a percent gain all are lower for the week let's get to rahel solomon for an update. hi, kelly. the top women's soccer league in the u.s. cancelled all games this weekend the national women's soccer league making the move as it deals with the fall-out of allegations of sexual misconduct against a former coach, north carolina coach paul riley was fired yesterday following claims of sexual coercion by two former players. the u.s. trying to improve relations with france following uproar over the nuclear submarine deal with australia. secretary of state antony blinken announcing he will visit france next week spain's canary islands, an erupting volcano opened up a third lava vent. authorities are watching to see if lava from the vent will join the main flow towards the sea or cut a new path downhill. on the news tonight, protecting houses from wildfires. how a company is using foil to

wrap homes and prevent damage. i'm going to have that story tonight at 7:00 eastern. kelly. >> awesome looking forward to it, rahel thank you very much. coming up, we will dig into the state of the energy sector as we head into the winter season bank of america's global head of commodities is with us for his call to hit around $100 a barrel big news from inside cnbc, our own jim cramer delivered to your inbox with the cnbc investing club he will be sending daily e-mails, writing for the website and appearing in videos online to give you unique insights into the markets. he will tell you all about his winners and losers, total transparency you can sign up to find out more at cnbc.com/investingclub or point your phone at the qr code on the screen for the details. very cool stuff. "the exchange" is back after this

♪ ♪ welcome back, everybody. the energy crunch hitting europe may get worse as china is telling its companies to secure energy supplies at any cost. and in the u.s. fears that a

cold winter would limit supply here as well are sinking in. oil is rising today, off highs for the week natural gas down about 3%, around $5.60 look at the moves in september wti west texas crude jumping 10%. brent up 8%. natural gas up 34% in a month, and now there are calls for the u.s. to cut off exports and ensure supplies at home. francisco blanche says oil could top $100 in coming months. francisco, welcome back. you are talking brent but wti probably wouldn't be far behind. >> that's right. i think wti probably will be a couple of dollars when behind that call. remember we are at a unique point in time now. we are just all energy prices are going up as you pointed out it is global gas heading into china we are seeing a tremendous amount of demand for liquid natural gas there. we are seeing european gas prices falling right behind the chinese prices, and then, of course, the u.s. market still

tight on the back of this global, extraordinary global conditions we have here. >> you know, i don't want to overly connect the dots, but i wonder if it is partly why airline stocks have been underperforming? obviously this would be a big input for them, but let's talk more broadly you are warning that the oil crisis could cause something like we saw in the '70s or like we saw just before the financial crisis hit do you think people are focused enough on the effect it is going to have here or, if i were to take sort of the optimistic case, maybe it is just, you know, gasoline is a little more expensive, your heating bills go up 10% but it is not the end of the world? you know, what is the likely outcome here >> well, look, i mean i think what you can say is at the very least the u.s. is much more insulated from the global energy trends than the rest of the world, as we just pointed out. china and europe are paying $30 per mmbu for natural gas in the u.s. gas prices are maybe $5 or $6 for mmbu. the oil market is, indeed

global the benefit to the u.s. is obviously the u.s. actually has a lot of domestic oil production so i do think that the spike, if it does happen, will be less detrimental to the u.s. economy. on a global basis it could be very complicated because, remember, u.s. inflation is 5% germany inflation hit 4.1% in september. we have central banks telling us inflation will go down in the next few months. if we have a cold winter oil prices are going to rise with gas. >> yes >> it will be really hard to bring inflation down what do you tell the market if you are powell, if you are christine lagart can you tell them it is a transitory situation when we know supply chains are broken around the world, when we know there's all kinds of issues moving goods around the planet there are shortages of labor in pockets of the economy can we send that message if prices go up 20% from current levels i highly doubt it. >> i think the warning is pretty clear as it is

let me ask you about the energy price piece of this. if things really go parabolic, they will eventually collapse, won't they or do you think it is a permanently higher plateau >> well, i think eventually, yes. so we have a winter weather spike. you are going to hurt segments of industrial activity we have already seen some uk industrial players shutting down activity we have seen also similar impact in europe, but, as you pointed out in the beginning of the program, the chinese government is telling companies to essentially secure energy supplies at any cost to me this is all concerning because, remember, we have issued monetary and fiscal policy like never before remember, monetary policy, the monetary policy expansion is 3.3 times what we saw in the financial crisis for covid, and the fiscal policy is 4.5 times so we've sent out an enormous amount of money into the world and now we wonder why prices are

rising supply chains were broken to begin with and we have this enormous amount of fiscal and monetary policy floating around. so my concern is that we end up triggering something a little more complicated here that's hard to stop given where we are in the inventory cycles. inventories are just low, kelly. >> explain it quickly, if you can. in other words because of all of the extra cash that is causing demand way outstripping supply, when you say things could get a little more unusual, does it mean we could see much more extreme spikes to the upside before this is over? >> i think there's a risk of that obviously, remember, nights saudi arabia or russia are particularly interested in solving an energy crisis that they don't feel they have created because a lot of the energy crises we are facing today is somewhat connected to the green policies we have been pursuing by limiting our coal fire generation, by limiting our nuclear power generation in different parts of the world and oil-fired generation and just generally oil usage. so we are kind of putting a

straight jacket around the economy globally, and then we inject all of this money and prices get out of whack and we are surprised. maybe we shouldn't be. i think ultimately the macro risks i think will continue to build and inflation, of course, is always going to be the biggest challenge for central banks and frankly for equity and bond investors the deal with here >> it is like alan greenspan used to say, it reacts with lags here we are 18 months possibly having cascaded it into an energy cries we will leave it there thank you for your time. francisco blanche with bank of america global research. a dispute settled, a deal off the table and an idea just tasty enough to get people back to movie theaters, all coming up in rapid fire. heading to break, take a look at the markets which are higher again. the dow is up at 365 points. bearba ia nue e ckn mite w are be e

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♪ ♪ welcome back, everybody. let's catch you up on a couple of stories it is like a grab bag version of rapid fire let's welcome in our julia boorstin, nancy tangler and derek thompson, staff writer for the atlantic i think maybe his rapid fire debut. this is kind of a big deal derek, welcome and welcome to everybody. our first topic is general mills. shares are higher at it was upgraded to a buy, saying investors are missing out on a good story lost in a beaten down sector general mills beat across the board when it reported last week, seeing strength in pet food and pantry stables thanks in part to stay-at-home habits shares are up 3% this year, nancy, as the reopening trade has taken hold do you agree with this call? >> not really, kell. i think you want to own a great story and a great sector at this stage in the market.

you have a company with 1% to 2% top-line growth, flat eps guidance from thecompany and input costs rising 7% to 8%. so it seems to me that there's probably better places to be and that this is going to be sort of a muddler alonger. >> julia >> well, look, general mills is all about the pet trend. they have all of these different pet brands, and the fact is a lot of people got pets during the pandemic and they still have those pets to me one interesting angle here is the fact as people have more hybrid work, maybe work from home some days and the office others, i wonder if they will be cooking more or sort of continuing the cooking trend of the pandemic because they're not fully back in the office and going out for lunch every day. >> yes, i can confirm. derek, maybe you can give us a peek inside your household there but there's a lot of cooking going on these days. >> there's a lot of cooking going on these days. i used to go out to restaurants all the time now i have learned how to cook i used to go to bars all the time i learned how to make cocktails.

so there's been a lot of work i used to rely on the service sector for that is definitely in-sourced because of the pandemic i feel that very strongly. >> will you be back out there as soon as you can? i would like to be but the last time i tried to get take-out pene pasta vodka sauce was $27 and it was the end of that >> to me, i respect vodka. look, i want to go to restaurants and bars i love restaurants and the bar scene. it is one of my favorite things about living in a city and it is why i hope to always live in a city but statement i will never forget the skills i learned, so i think the threshold has been raised i make a pretty good cocktail, so in a way it means that i really need that bar to be pretty high to get me out. it might have trickle down effects with sort of the middle class of restaurants because they might not essentially compete very well against my own kitchen. >> i agree i'm thinking to myself, you know, i'm not half bad i never thought i would say that but these days i'm not half bad. i think nancy's point about the

investment hangs over as the conclusion to all of this. let's move along and talk about the deal that was just scrapped between zoom and five 9. the five 9 shareholders rejected it it was about a $15 billion takeover bid for the cloud contact company. they left with 13% premium on shares wasn't enough square paid 30% to after pay in that deal. zoom shares have been down 30%, julia, since the deal was announced. so, you know, cathie wood's take on all of this is that five 9 is going to wish that -- i don't want to put words into her mouth, but they might come back at this one and think it was a missed opportunity >> well, look, there are a number of analysts that upgraded five 9 shares on this, thinking there is more upside and that five 9 could have gotten a higher premium to me, kelly, the really interesting angle here is zoom what does it say about what zoom needs for its next leg of growth the fact it needs to focus on

the enterprise customer, and that's speaking of hybrid work is where their business is going down the line. >> nancy >> i think the sell-off in the zoom price obviously was the reason this deal was scrapped and now they're both up on this news if it were me, we don't know either, but i would probably be dipping my toe into zoom here simply because this is a company that's got arnings, the industry leader. they can figure it out if it is not this acquisition it will be another. >> i see derek nodding in agreement. let's move along, talk about the superhero settlement in a case that rocked hollywood. scarlett johansson and disney agreeing to settle a suit she brought in july, claiming that disney hurt her earnings by releasing online rather than theaters disney accused her of ignoring the dangers of entering the theater, misreading the public at that moment anyway they said she was paid $20 million for her work on the film both sides said they were

pleased to resolve their differences. exact terms weren't disclosed. what did we learn here >> i don't know if derek's shot froze there. julia, what did we learn here? >> what we learned here is that studios want flexibility going forward and they know they're going to have to pay stars for it theatrical performance was tied to the outcome for producers, directors and movie stars. going forward it will be a lot about flexibility and also about the value of streaming it is notable that they didn't disclose the terms one report from deadline.com said that scarlett johansson is getting paid $40 million all in. these are big numbers here, but it also doesn't look good for either party that it had to go to a lawsuit i think going forward we will see whether it is movie stars or studios try to avoid the scrutiny of being in the public sphere with a very high-profile lawsuit like that. >> derek, what would you add to that >> sure. so i had to quickly do some reporting on the deal. look, basically she is the

biggest female star in the world, uniquely in a place of power to fight for actors, to find a way that streaming revenue is divided among actors and i think that's what it is about. my understanding is emma stone got a great deal for the "cruella" segment because of the prospect of this settlement with disney this is about the way stars, that executive producers that get points on box office or on streaming revenue are going to benefit from the total revenue made from these projects down the line that's really what it is about >> disney investors seemed relieved this episode is behind them, $40 million or not shares up about 4% speaking of movies the "wall street journal" is highlighting how a small movie theater in suburban detroit got creative with pricing to get people in the seats. $25 for a ticket and all you can eat popcorn, soda and snacks or $12 nor the regular ticket, no food nancy, is it going to save the theater? amc shareholders will need something blockbuster here >> so, well, you are all cooking

and i'm eating popcorn every night for dinner for me this is an epic deal. i mean i might even think about getting a plane ticket to the theater so that i can engage in it look, we know that theaters make a lot of money off of the food concession, and yet those numbers are down pretty materially and capacity utilization is down according to amc. i think right now they want to get seats filled and this is a way to do it, and then they can save it out another time i don't think it will be a money maker for the theaters but i do think it will draw people in >> amc shares, julia, around the $38 mark, but more scrutiny on the fact that box office numbers are not anywhere near what they used to be >> they're not near what they used to be but we have a big james bond movie, "no time to die" coming out a week from today. i think it goes out to the conversation we were having before about what it takes to leave the house. the bar is raised for restaurants and also for movie

theaters i don't think this particular food deal necessarily makes ends, considering how much revenue used to be generated from concessions, but i think we will see more theater chains invest in a more high-end experience, allow people to get beer and wine and good food while watching the movies because you have to make the experience really different from sitting home on your couch >> you have to compete with derek's pepe last word? >> my pepe is a reason to stay home i can't wait to go back to movie theaters and to see "dune" and the new james bond movie more movies are streaming at home, and it means more studios will want to reach audiences where they are, which is at home movie ticket sales peaked in 2012 the big releases from the major studios peaked in 2007 they have just been in a long-term static decline, so i

think this is just really the cherry on top of the sundae. thatyou will see movie theater in the future a smaller product. we will look back to 2018, 2019 as the end of that theater >> thank you all for rapid fire. it has been a pleasure, really fun. derek thompson, julia boor sten and nancy tengler. what is going to happen once all of the politics have played out? those answers coming up, as the dow continues to rise this afternoon. up around 400 points hdieang into the weekend

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♪ ♪ the government is staying open, at least for now we know that much after a short-term funding bill was passed we still don't know the fate of infrastructure or the bigger spending bill congress is working on elon moye ylan mui is joining us with where things stand. >> reporter: kelly, president biden is headed to kplil to try to break the logjam over not just the spending bill but the broader infrastructure package they met for over three hours this morning and they have another caucus meeting later in the afternoon. lawmakers say they're making progress they describe the mood as dynamic but there's been a growing desire to hear directly

from president biden the white house has been dispatching top officials to the hill for the past several days, but there was a hope that the president himself will seal the deal >> i think the president should be involved. very few of us have seen the president in the nine months he has been president, and i think he should come to a caucus. >> reporter: now, progressives are still holding out for a vote on the broader agenda before they will get behind the infrastructure bill, but the head of the congressional progressive caucus, pramila jayapal, sold reporters democratic leadership have been listening to their concerns from the start and she signalled openness to some other kind of assurance their priorities won't get watered down >> things only happen here when there is urgency and, you know, some reason for people to be at the table. we have seen more progress in the last 48 hours than we have seen in a long time on reconciliation, on the build back better act. >> reporter: technically, kelly, the house is supposed to go into recess after today, but i can tell you lawmakers are already

cancelling their flights back to you. >> and that piece of this begins thank you very much. our ylan mui diligently following it for us. will a delay in the infrastructure vote put the rest of president biden's economic agenda in jeopardy joining me with what the standoff for the party means fo "wall street journal." wonderful to see you thanks for your time again so, is this just the back and forth that we can ignore and still expect infrastructure and the spending plan to be passed by the ends of the year, if not shortly thereafter >> i think more likely than not. not certain. but the fact that president biden is going up to the hill probably means they are close enough to having an agreement within the party to get this done because you don't sends him up to the hill to fail you send him up to close the deal that's that's probably the deal the optics of collapsing with nothing to show for their first

year when they have control of all of congress and the white house, that's too much failure for them to contemplate. what's the old mark twain saying, nothing focusing the mind like the prospect of a hanging. that's i think where the democrats are today. so i suspect they will get there. it has been plenty messy but we have seen in the past that messiness isn't remembered so much in the long run if they can just get this done. >> absolutely. it's always forgotten, then we just go on to talk about the infrastructure bill, the spending plan and so forth do you think the spending plan is going to be modest. the infrastructure plan seems locked in with over $550 billion in new spending. and communities disappointed at the not very ambitious scope of it but that's the reality of the sort of purple washington that we have. even if they pass everything, because it doesn't sound like $3.5 trillion will pass. it sounds like 1 or $2 trillion,

you tell me. what do you think it will be remembered for even if it all gets passed. >> it is going to get smaller. that's the foregone conclusion sinema and manchin have seen to it that it will be smaller but it seems the white house and congress have lost control of the messaging. we are talking about the difference of spending $2 trillion of additional money say for example, or $4 trillion. either way that's a lot of spending progressives set up this debate so that they are talking about cuts there are no cuts here there is only a question of how much additional spending will be added. in a way, they should be po portraying this as a democratic victory no matter what the bottom line total is by the way, they have next year to come back when they are still in control of congress and try to do a little bit more. yeah, i think it is going to get smaller but it is still going to be plenty big. you and i have been around long enough to remember when a trillion dollars in spending was something big.

>> the big response to the spending crisis was $787 billion. at the time it was unprecedented. there are options on the table, i don't know where we stand, for instance, expanding access to medicare i guess if you leave in place obamacare, it won't have that much of effect which of these do you think are the ones that will be legacy pieces that pass if a they are included in the final legislation? >> well, i think the health care one is an interesting choice because in a way there is a philosophical difference among democrats. everyone wants to do more on health care. the question is what more do you want to do if you expand obamacare you are expanding coverage messily lieu medicaid to cover more americans. if you add to medicare dental and vision coverage you are significantly improving the lot of older americans at a significant amount of costs but

you have changed the medicare program, which is the higher priority for democrats, that's one of the things they have to decide either way i think that change in health care will be one of the legacy issues that comes out of this. i think the other one that we ought to keep an high on is additional help for families, whatever form it takes talking about increases, permanent increases in the child tax care credit, more help for working most, more child care credits. a lot of money will go to young families no matter what. when democrats stop arguing about the precise amount of money they will be able to say we made significant improvements for the economic lot of working class americans. people will disagree with how important that is but that's what democrats will be able the say. >> that message becomes very important this the mid terms, obviously. jerry, thank you >> sure, happy to be with you. bitcoin jumping 8% today, that's good news for el salvador, which recently made it legal tender itnt you hear when the

country is doing now to address energy use concerns. we are back in a moment. if i 'x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.

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welcome back el salvador has become the country to watch this the evolution of bitcoin first making it legal tender now taking the extraordinary steps to address mining's energy usage problem. mackenzie si gal owes is here with more on what we know about their latest efforts involving volcanos >> for the first time, el salvador is officially using power harnessed from a volcano to mine for bitcoin. they have so far earned $259 worth. details are sparse but earlier this week the president posted a video showing sweeping landscape aerials of a energy factory in the thick of a forest bordering a volcano. we saw a ship full of bitcoin

mining rigs as well as tech anythings plugging in and installing miners. the electric company which already running these power plants across the country. so they are not starting from zero when it comes to infrastructure kelly. >> it seems like they are trying to address the energy usage that, with the energy crunch happening globally right now is one of the major things that critics often talk about when it comes to using bitcoin, period, right? >> right it absolutely is if this works, it could be a huge plus for the larger debate around bitcoin's carbon footprint. what we are talking about here is geothermal energy it's renewable it's clean in some places it might be making use of a previously untapped resource which makes the case that bitcoin can act as an accelerant to renewable energy development >> yes, if we can get more volcanos on line, it seems like that would be a good thing for

everybody. mackenzie thank you so much. we really appreciate it. well, that does it for "the exchange," everybody thank you for your time. before you start your weekend, "power lunch" begins right now ♪ good afternoon, everybody, and welcome once again to "power lunch. as kelly just said here's what's ahead this busy hour power up, because the energy sector is getting a boost to start the fourth quarter, coming off a big september. goldman sachs ramping up its already bullish forecast for oil and nat gas. we will talk with the analysts. plus, what's next? clean energy investment a multiple trillion dollar global movement but many of those stocks have been faltering we will tell you how to play it. energy, a tale of two cities. and the great outdoors the pandemic pushed people outside, pushing up vista outdoor's stock.