resulted in behavioralchanges. >> right. >> i think a bunch of state attorney generals might achieve that much faster than the united states congress. >> we started obviously to see piecemeal efforts. but you provided a comprehensive picture of what it kwo look like. >> thank you. >> ignition interlock. >> that does it for "the exchange" everybody. thanks for your time power lunch begins right now and welcome, everybody to power lunch and here is what's ahead on a busy monday the energy threat. at what point will energy prices trigger potentially a global recession? it's a question investors are asking these days. and our panel of experts will answer it. and the search for pricing power. a top analyst says inflation will be the most important market driver from here on out and he's got a list of stocks you may want to consider

and the next frontier of virtual reality start-up left for deed but today it has new life and new strategy to help transform business the ceo is here to talk about the future of monetizing the mette verse. kelly. >> a magic leap over here. hi, everybody at session lows on the market a 300 point swing from the highs. up 200 earlier today the dow down a third of a% the nasdaq down 0.1% the two sectors leading the the way over the past month. financials and energy beginning with energy where the xle is down tad by a third of a% hitting highest level since january of 2020. the xlf for the financials turning lower after the new intraday all-time high you see before noon going negative there goldman, jp morgan and visa weighing on the dow. the beginning of earnings season and the economic calendar is jam

packed let's bring in bob pisani with what he is watching. bob. >> and kelly, the important thing is here lots of economic data, lots of earnings stories remember the economic data, very important. because august was really choppy we had the delta variant slowing down things a little bit september, a bit of a bounceback we're looking for data supporting the idea of a bounceback get a look at the economic data. we have the cpi, of the price index on pnds owe wednesday. fomc on friday and friday retail sales with michigan consumer sentiment. september data all important but the earnings start wednesday. as we have during the earnings week during the start it's mostly financial pps blackrock and jp morgan on wednesday bank of merge. us bank. citigroup, wells fargo thursday. goldman sachs on friday. as kelly mentioned, financials have been on fire. but particularly the superregional banks, new highs in companies like fifth third,

the highest level for fifth third down in the middle of the day. but since 2007 a lot of superregions before the great financial crisis us bank comp and some of the insurance companies doing well the higher rates are really what matters for the companies. meantime, energy is as kelly mentioned having an incredible run. congo fip fill i want was downgraded on valuation. you think show up 25% in three weeks. why? well obviously you got global demand increasing oil prices up. but these things are so small. this company is $91,190,000,000,000 that's a conocophilips, pretty small compared to the rest of the s&p 500. you get a little bit of demand all of a sudder the prices through the roof 25% increase in. >> 3% of s&p 500 that's what the xle is right

now. >> think back 20, 30 years ago, bob. energy was was 15, 18% of the -- >> exxon was biggest in the united states as with the pount. >> thanks, bob let's look at how to play the economic reports with us stephanie link high towers chief investment strategist great to have you on at this hour appreciate your being here let's start with economic numbers that are coming out later this week that i know you're focused on. one is cpi that is -- we're talking more about inflation later this hour. give us your thoughts on it, whether you think it's transitory, more lasting because, boy, home heating prices are going up later this year >> and it's good to see you, tyler. cpi and ppi are big data point this week. i think some is transitory but some is not. we're watching wages rb rental costs. rental costs follow home prices.

we know home prices are up on average about 16% to 18% year over year. so those parts are not transitory in my view. so let's see how the nfib how this translates into the nfib sentiment survey and we have jolts in retail sales. i think retail will be good. they were good last month but i think the consumer is in good shape. >> you have a lot of demand, consumer demand. but the problem seems to be on the supply side. it seems there are shortages. >> yes. >> endemic across the economy. whether automobiles, clothing, christmas presents, things like that how troubling is that? and how -- how sort of slowing could that be in the overall economic picture before we get to stocks. >> it's definitely troublesome i think it lasts for much longer than the fed is expecting. so there are two reports this week that are coming out and it's going to be very interesting to hear what they

have to say. j.b hunt, let's see about labor cost inflation and driver shortages, and we know what happened to fedex. so was it the same problem or not? but demand, tyler, they're driving things all over the place. it's food and beverage, paper and packaging, auto parts. it's so broad based. i want to hear about demand. can they handle it and do they have pricing power i think jb hunt has better pricing power because of the truck load and intermodal. fastesten al a proxy for construction demand. how are they dealing with if in the face of h higher pmi and supply mcmahon we are getting a lot of data points i don't think it's resolved any time soon but it's eventually resolved. >> let's move to the financials which is obviously a point of emphasis later in the week walk us through what you expect expect there with the big banks. >> 47% of the financial services

report this week as bob mentioned be the big six the most watched the most at this point and they're setting the tone all of them talk about macro, which i can't wait to hear the economy where we were talking about inflation and the the interest rates and fed, the other question is lone growth. has loan growth inflected yet? i think this quarter is good next quarter guidance is better. and it's the three cs i'm listening for. hour is the consumer doing, credit i think it's benign capital markets and the note interest income guidance going to be given higher interest rates and steeper curve throughout the quarter. >> do you have a favorite bank for long-term investors? >> i have three. >> let's hear it. >> jp morgan is zbraet but expensive. that's the only reason i don't own it but flawless execution. i like morgan stanley, babying bank of america and wells fargo for different reasons. morgan stanley diversify mix

they did a lot of a lot last year but they are doing good in terms of m&a in terms of pipeline. you get a 2.8% yield and buying back so 12 billion in stock. bank of america is the spread play the most exposed of all six. if you think rates are going higher buy this back they are buy being back $20 billion in stock and wells fargo is the cheapest of the ones i own. citigroup is the big six wells fargo is 1.2 times book. buying $18 billion of stock back it's a restructuring story a cost savings program story of $8 billion it's asset story we're not learning about the asset skap take that off the list but we will. with and that's a big catalyst down the road. >> you gave us more content in 47 and a half minutes. >> stocks to bitcoin now the

crypto current soy on a tear up about 30% since the start of the month six trading days in. >> kate rooney has a look at the bull run. >> they call it up tober. i've been talking to bitcoin topping 57,000 for the first time since early may it's october rally now stands at about 30% and just about 12% off the all-time high for around $65,000. all this comes amid hope of a bitcoin etf approval there is about four etfs up for approval in the coming woks including pro shares invest ko and van x. saying they think it it would be beneficial for prices regardless of demand for the actual row product. there's been seemingly upbeat comments by the fed and s.e.c. that appeared to embolden investors as ned davis research put it in a note this week although the firm notes that bitcoin tends to have a

correction every 40 days oss. >> they points out the outperformance in face of fears of inflation and places itself as uncorrelated asset. coin shares pointing out that the last week the strongest week of inflows since may and telling me a lot of the inflows are coming from institutional investors and professional investors allocating for clients. s are some data showing higher percentage of bitcoin transactions over $10 million which tends to suggest moves from birg institutional players. this is according to glass node and fundstrat. kelly. >> we also, kate, have comments from jamie dimon this has been one of the most fun navers in bitcoin the last couple years blasting it gwen, calling it worthless. the quote from the iif conference today he says quote i personally think bitcoin is worthless i don't think you should smoke

cigarettes either. our clients are adults they disagree. here is the rest of the quote. if it they want to the access buy or sell bitcoin we can't custody it or but give thiem legitimate as clean as possible access people always give him a hard time about whether it's holding back jp morgan away from choicing crypto the way others are doing. he has an interesting point. as the industry the mature there is a right way a and wrong way to do it thp. >> he has been a longtime holdout and skreptic in general. he has called it a fraud in the past almost less critical than in the last couple years. but definitely says something about jp morgan. firms like goldman sachs go in the other direction and offer access to their clients. it will be interesting if this affects the jp morgan stance and you've got though think that he is running the show, this

could impact, you know, what availability there is for cryptocurrency but it's true the legitimate path even if you look at the etf path gary ganes letter and others have said it's bitcoin futures versus spot prices it's becoming more mainstream which the old school bitcoin thus yavts would almost shy away from for me saying we don't need jamie dimon preponderate the adeal is getting around the banks. you have both sides of it. >> totally very well said and all this as bitcoin is above 57,000 as we are talking kate rooney the latest. pricing power plays. which stocks are poxed to best combat inflationary pressures? our next guest has a list of names. and later kwoent still king for netflix. especially talking squado squid game the stock getting price target hikes. our trading nati toneam tells us if it's too late to buy. stay with us i promise to be a careful steward

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welcome back to power lunch. i'm dominic chu. we are tracking weakness in retail gap, abercrombie & fitch and american eagle american eagle underperforming as of late, down more than 10% in the past four weeks on the e-commerce side, we see a wide rank trading in negative territory, etsy, stitch fix,

resellers like threadup and the real real online furniture marketplace, way fair. kelly, tyler, a lot of this is supply chain related the impacts felt in a wig way. back to you. >> dom, thank you. >> inflation surging this year, redefining how investors play the mechanic the core pce index at a 30-year high our next guest calls rising prices the number one market driver from here on out. talking about the pricing power. chris is a chief strategist. this note caught our eye you are bayo saying put on the inflation trades, period what would you say to those who say what about stag flags, deflation aren't these problems in energy going to slow the economy in one big picture question you have many picks. how long is the inflation trade going to work. >> thanks for having me on, kelly. we're seeing the stagflationary

tread where economic growth expectations are decelerating and inflation rising it's hard to say ttsds o at this juncture we're whether we're in the 1970s environment investors have to think beyond the classic energy, metal and mining stocks. as they look across the portfolio think about what businesses have durable pricing power and can withstand a lot of the inflationary shocks that are occurring in the economy, whether it's heretofore supply chain or what could be going forward more consumer demand driven >> i think the point you are trying to make is you do see risk of this slowing the economy. it's important not just to have pricing power to deal with inflation but also strong enough brands that they're not hurt potentially by a loss of demand. let's go through the five categories, first couple categories in consumer you like mcdonald's and tap evidentiary. why tap evidentiary. that's a parent of coach, right?

>> just remember i'm a chief strategist i don't cover companies fundamentally. you i think speak to the nature of the industry. it's a brand companies and people want brands one of the things looking for when thinking about companies and pricing power was the structure of the business in the industry what companies have high gross margins? and high kbroes margins are indicative of pricing power. and tap evidentiary has high gross margins, indicating people wants their kids and they have pricing power on the goods same for mcdonald's. a lot of the pricing power is more of the franchisee level but they can mix around the dollar menu or change mix. and have price power than perhaps higher expensive restaurant and they get also the tradedown effects. >> let's talk about retail where you like auto parts. a lot of people like the auto parts sector and wal-mart. >> yeah, so, you know in the retail space, companies like wal-mart have pricing power in the sense that they can pushback

on suppliers they have the nature of the industry as such that they're a big one. and then on advanced auto parts you think about auto parts more generally cars break down people need parts things need to be fixed ptd used car price are high and new car inventory low. instead of buying the new car you fix the old one. they can pass through costs in that industry as well. >> how about transportation? another area you like. union pacific and trans -- i can't see it transdigm. >> transdigm is a supply supplier tots aerospace companies. sole supplier on many things in airplanes. you have the government certificated is to do that there are essentially no other alternatives for their products in certain things that's a business with high gross margins and few competition in some of the platforms. abthen the rails naturally nature of the beast of what they do, have pricing power

alleviate some of the coninvestigation on roads and transport stuff from a to b more efficiently than other modes of transportation like in trucking where you have a shortage of truck drivers and so forth. >> in tech and software, chris you have texas instruments, n individually, adobe auto derveg. i don't see big tech i don't see tesla. >> yeah, i think, i can't really tell you why tesla is not on there, the gross margins aren't that high right now. they may nb five or ten years. >> software to me is the squint essential pricing power. they have high gross margin to begin with, embedded in corporate structures and they have high nanosecond on the other sigh same thing with the semis given the shortage and the products that go -- the products they go into have high demand. kind of the same. >> on the big tech front where does that leave wsh facebook, google online advertising platforms. netflix totally different kinds of things.

>> some of the names not on the list haven't had higher gross marginen than pre-pandemic one of the things we looked for are the gross margins higher in the recent quarter compared to pre-pandemic one of the key drivers of whether someone has even higher pricing power than the next company is whether they've been able to push it through recently >> let me get a question in. you began by saying it's important in this environment to look beyond the traditional plays here banks, financials, energy, metals, mining does -- i take that. but does that mean you necessarily feel that those traditional inflation plays are not going to work this time or just that these may be better ideas. >> i think a bar bell approach. >> got it. >> you can only own so many. if you are managing a portfolio and need diversification you have to look beyond copper,

energy and bank names. >> i'm not saying that was the answer i'm looking for but i'm glad you explained it that way, chris. all right. >> i love it, very surprising with gross margin trends in some of the companies he was discussing all right. a quick break, coming up ahead, the next frontier for magic leaf we'll look at the vr company promised to conquer mette verse but failed in the real world. a week away from the netflix earnings multiple firms hiking the price targets. will squid game help netflix wrap its tent cals around viewers? and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community

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speaks the same language. honeywell forge. industrial grade software. welcome become mime rahel who will son and here is your cnbcious nupt, x jinping is intensifying efforts to curb capital i. in his country. "the wall street journal" reports they are looking at ties the financial institutions a private companies and and every grenada and didir opinion banks may cut back on lending slowing economic activity. the white house says it's closely monitoring rises eing

prices for gasoline and oil. promising to use every tool to address anti-competitive markets. it is calling for countries to increase youbt wild video, the florida highway patrol releasing dash cam video slowing a disclose call this happens as the driver was helping a motorist with a flat tire on i-95. a chain reaction sends a pickup truck crashes in car the woman will suffer monitor energy and the car start going all by swid seeping another pickup truck drove away. back to you. >> wow, that shows you how dangerous those moments can be when you're on the shoulder of a road thank you very much, rahel. and glad people were just really not badly injured there. stocks near session lows as you see there. the industrials moving a little bit lower as we move along

count 143, or about 0.5% the s&p in perng terms off a bit less and the nasdaq you would have to say is fundamentally, kvl, flat. >> yes, it is. 0.04%. to the downside. let's look at movers start art starting with pg&e start down almost 5% plan to shut off power for tens of thousands in northern california due to wildfire risks. the stock down 20% this carrier. california is is the same time moving to ban sales of new gasoline generates solar stocks in the green. the etf up 4.5%. the best day since june. sun power sinceo up 11%. and finally sofi climbing about 10%. actually 12.5% a bullish call at morgan stanley. calling it a powerful revenue growth story it's up now 46%. power lunch on oil trading

above $80 a barrel good for energy stocks but are there long-term consequence sns could it render itself obsolete? we'll ask when "power lunch" returns.

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well the oil market is closing for the day. there you see it up yet again. west texas crude domestic at above $80 a barrel brent crude, 83.66 1.5% moves for both. natural gas pulling back about 3% at 5.3. and today an analyst at brenants posed a question that many investors ask, at what point could higher energy prices possibly trigger recession joining us now is global head of the commodity strategy she is also a cnbc contribute are. john is sheer as well, founding partner of again capital, also a cnbc contributor so, folks, let's just go with the question we pose there is there a point helema at which rising energy prices could tip economies not just in the u.s. but around the globe into

recession? >> i mean, we're certainly watching very closely what is happening in key markets like china. china is facing crippling energy shortages. shortages in 20 provinces, causing a drop in industrial output we'll watch europe as well they face a serious natural gas pricing. the risk is that the industry has to shut down because of the energy intense oev industry. it's a cold winter we are facing a real winter of discontent if we have a squeeze on power supplies. >> what is the cause of these shortages, helema. >> it's multifaceted ppd you want to think about the fact at a stocks for natural gas are historically low in europe unseasonably cold winter in asia pulling demand and then there have been issues about supply real question marks on was russia holding back gas supplies into europe to force completion

of in order stream ii? is there additional surge capacity in russia there was a conflugs of factors. but the also lower than the expected and needed winds power and issues with hydropower what is the backup when the renewables fail? the issue will be if we have an unseasonably cold winter is there enough gas in the system to prevent the crippling power cuts. >> john, what do you say. >> we're on the cusp of recessionary influences from the high level prices really right now. and it's been a double whammy for the rest of the world. not only are they hitting high oil prices but the dollar is rallies which crude oil is denominated in which adds to higher costs here in the u.s. it's a mixed bag because of our larger energy footprint we've had in a long time houston has done an incredible roll with gas and texas a.m.

beating mamma. you captain live with these people right now but but beyond that part of the problem you asked about it's saudi arabia they are sticking it to us they could put more oil on the mechanic they could extinguish this rally with the flip of a switch. they have messed up the market more times than you could shake a stick at and here we are. >> where do you think prices are going from here, kalima. >> i think we have to watch what happens with winter. if we get the warm winter you're not going to have the demand that we're looking at for natural gas. and importantly for oil as a replacement product for impasse. i mean, part of the reason we are having this run up in oil prices is the concern that it's going to be a replacement product for gas. and so a lot will hinge on what does winter look like? john mentioned saudi arabia. i think saudi arabia is under

pressure from the biden administration to put more barrels on the market. i think the biden administration, the higher prices go will start to think about again tapping the strategy ig petroleum reserve which may not work much for long in terms of capping gasoline price in the u.s. but they might go that route to incentivize saudi arabia. >> saying nothing of what pressure the biden might put on saesh saudi arabia think of the pressure of the biden administration domestically into the election year if people pay triple what they paid last time for fuel to heat homes john, helima talked about major energy shortages in china and that would affect presumably industrial production, the same she said could be said for europe if that happens, and already a tenuous supply chain could be

even worse off and there be really shortages on products on shelves. and economies that slow really beyond where they are today. try and go buy a car in any place. i have just gone through it. there is no inventory at all, because they're not being made and it applies to other things. >> is shows you how effective centrally plan economies continue to go the experiment fails one cycle after the next how in the world did china get so short of coal, short of crude oil how in the world did they think they could push back on the global free market commodity prices by drawing on their strategic reserves of everything from iron ore to crude oil yeah, we're hanging in the balance here and we got to hope that central planners is there, you know, can roll out another of the five and year plans they are indiana the eight ball.

we are too our natural gas storage levels are plod evidently where they should be at this point. but the gas is rushing into storage here but, yeah, china is on the cusp of a stag flags like we haven't seen in a generation or two. and also, too, don't seem to have the tools or the economic wherewithal to pull themselves out. particularly if they stay in economic war with australia. which they have been doing they are acting out for whatever reason they think is in their best interests but they are affecting the global supply chain in a big way. >> what is the message from a day where xle is lower on the solar having the best day since last june. >> i'll tell you that a lot of the new energy folks, the green energy folks always wanted high oil prices, high fossil fuel prices so the other alternative fuel sources or energy sources could become fiercely gettive if

not more than fossil fuel generated electricity like from natural gas or oil-related products this is actually good news for them because they've been under supply pressure as well to the upside making them expensive for a long time. for the past several years they couldn't close to competing with oil and oil-related products this is very good news for them. and it's going to, you know, give folks a second hard look at whether or not we should stick with et petroleum based supplies. >> all right we've got to leave there, folks. great to see you, john, you too, appreciate it. and sign up for jim cramer's investing club reading more on on the energy market jim will send daily emails and appearing in videos online all to give you his unique insights into the markets you can sign up to find out more at cnbc.com/investing club just point your phone at the qr code on the screen and it will take you where you need to go.

up next, the next frontier of tech. we looking at one company betting oh on the metaverse. the ceo is transforming vr and the company. 'rba ia ment you founded your kayak company because you love the ocean- not spreadsheets.

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welcome back to power lunch. we are tracking gapes in the casino stocks. names with big expose tour macaop wynn, las vegas sands our own jim cramer bought into erwin resorts early yerp bleaching regulatory concerns in macao. if you'd like more of jim's insignatures you can read his news letters, the cnbc voevg club head over to cnbc.com/investing club where simply by pointing your phone's camera at that qr code on the screen you soo he there. kelly, back to you guys. >> thank you, dom. >> looking at the next frontier of tech, the metaverse not just for gaming but for business jewely borsten is here from the augmented reality company magic leap and the interview with the ceo. julia. >> thank you, kelly. magic leap works to advance the

next frontier of augmented reality and not with games like facebook oculus but in the business space the company pivoted in 2018 after the $2300 consumer headset flopped. the one secretive company raising $3.5 billion wrote down stakes by 95% but last september peggy johnson, evp joined as crow and focused the company on the enterprise and those customers today on cnbc the company announcing it raised laugh a billion dollars at a so 2 billion valuation and it's also unveiling the magic leap ii which it says is the smallest and lightest device built for the enterprise there it is. look at it now, it is designed to be worn bip everyone from surgeons to industrial workers to those in the defense sector for tactical training the hetd set also has unique features, able to dim the real

world background to make it easier to see augmented raltd elements in the foreground joining us to discuss today as new is the ceo peggy johnson peggy, thanks for talking to us today. explain to us what makes the headset so different and why you focus specifically on the enterprise market. >> thanks, julia thanks for having me back. it's been quite a year for magic leap we've had great commercial traction with markets. health care, defense, manufacturing. we've developed technology partnerships over the past year, google, vmware, amd. and the product itself, we are so excited about the upcoming launch of magic leap ii, the feature you mentioned, segmented dimming is important forepersons like surgeons in brightly lit operating rooms. you can still in that

environment show digital content. we doubled the field of view that's the canvas you have in front of your eyes to put digital content in front of. we have really improved image quality, text legibility but most importantly for enterprise users we reduced size and weight it's an all-day, every-day wearing device and all the critical features, what we heard from the enterprise and will help us reach it further into those markets. >> so what do you think this means in terms of the types of companies and the types of workers who will be able to start working in in virtual world, this augmented world that you're offering through the headset? >> yeah, you know, one group of workers that hasn't always had the digital tools that we do, knowledge workers, is our front line workers these devices will allow workers often times mobile, say a manufacturing worker, inside of a facility, they can put the

headset on, and augment the physical environment in front of them they may be looking to repair a machine that's gone down they can pull up a video in front of their focus they can bring in an expert talking them through a repair. the expert can see what they see. it will be quite empowering for a whole new group of workers show haven't had the technical advantages we've had as knowledge workers. >> yeah, you know, peggy, we have talked a lot about the metaverse, how facebook is investing in this space. showing how people could use head sets for virtual meetings what is your investment in this enterprise space mean about the future of the metaverse with businesses and enterprise? >> so businesses have -- facebook's largely focused on consumer businesses have very similar needs. you -- with the metaverse, what it will do is map the 3-d world for you. if you go into that manufacturing facility and you

place some digital content on a piece of machinery, the next day you walk in, that digital content will still be there. you're growing a metaverse of virtual content inside of our physical world and sbenterprising have the same needs as consumers to have that kind of environment within to work >> you're competing in this space particularly with different sectors such as the defense industry with microsoft and others what's going to enable you to compete some of the big, deep-pocketed rivals >> well a couple of things first of all, it's a big market. idc estimates it will be about $140 billion ar/vr market by the end of 2024, which about 37 billion of that is enterprise ar we are also a partnering company. we -- we make great tech but we are going to rely on our partners to help us.

they have their own go-to-market channels that we can leverage. that's been our focus, looking for the partners who combined we have a strong story in magic leap. >> tyler math mathisen here. >> these look like fascinating devices what if you wear spectacles do they work. >> we have inserts that you can put in if you do wear spectacles and what does that december is keeps that headset close to your eyes, which is important to have the right focus. so the inserts slip right in and off you go we've accommodated for that. >> all right thank you. >> fascinating to hear how the enterprise is going to be part of the metaverse as well, peggy johnson, thanks so much for joining us today with your big news. >> thanks, julia. >> and julia, thank you and peggy as well. we appreciate it. >> thanks for asking for our friend >> for your friend.

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welcome back to "power lunch. netflix agreeinging to a mega merchandising deal with walmart. the streaming service selling toys and t-shirts for hit shows. through an exclusive partnership with the retailer. analysts more bullish on the stock. key bank raising the price target on the stock. let's discuss with the team, ari and delano what do you make of this news? >> hey, seema. i think it's great news. for the netflix standpoint you diversify revenue and have consumers take the fandom offline where they can wear the things and do the marketing for the brands they are behind and makes sense. from a price point standpoint netflix is trending in a great position and over the past five days bumping against that 646 number and i think there's more

room to the upside and may see profit taking in october 19 but generally this is a long term strong story for a company doing a great job to encompass kind of an all encompassing content strategy and bullish on the stock. >> netflix is a standout hitting an all-time high last friday where do you see the stock going from here? >> yeah. we think the trend is higher here continues to make lower lows and higher highs and would be reasonable with a pullback post earnings to get bought for the reason you stated. the key point is that it's coming off a new high in a difficult marketplace. only faang stock to make a new high in october. seems to be a faang stock doing well been a difficult year for the stock when you look at it. extended off the moving averages

but a near term pullback of $600 would mark an attractive standpoint >> thank you say hi to your kids for us kelly and tyler? >> you know i want to ask him a million questions now. up next could the holidays be at risk we'll take a look next >> and now the latest from trading nation.cnbc.com and a word from our sponsor.

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they provide the potential for regular income...are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376 we have heard the warnings of empty shelves this holiday season which items will be the hardest to get dom has a list >> we have the report. a lot of supply chain issues showed you the trek from the care bear from a factory in china to the store in massachusetts. but what else besides cars will there be a short supply of especially towards the season here of course we got the commercials showing the new cars with the red bows on them how about smartphones and ear buds to toys and decorations

let's not also forget clothing because you have athletic shoes and apparel taking a hit the nikes, under armour, shoes might not be as available as seasons past what is underpinning that lack of supply? how about the energy crunch? in china we haven't talked about that there's a lack of power in the world's second biggest economy with 60 companies suffered from some sort of power outage and disruption so far and there's a lack of workers we talked about in vietnam due to the virus pandemic so you put all together and it's shoes, clothing, toys, airpods >> it is not everything. it is just sort of a grab bag of things right? unpredictably in short supply. >> what i thought was interesting was carbon dioxide for soda >> sparkling water.

>> why because of the power issues and the cost in places like europe they cannot produce fertilizer fast enough. because carbon dioxide is a by-product of making fertilizer and purify it and can it to use. for things like soda or other items that require it. there's all kind of knock-on effects right now. >> it's spotty shortages maybe you don't have the size selection in depth that you want but so what's the possibility that people and consumer slow spending because they can't find what they want >> there's the real possibility. >> now wait a minute i think this is a ploy to get us to buy early and buy full price. >> pay more. >> a great point because what ult you will find is the lack of

promotion at pricing environment that we have seen in years past. many talk about pressure on profit margins with so much inventory and got to discount it there's no requirement this time around might not see the discounts this time. >> thank you i think. >> going to costco thank you for watching "power lunch. "closing bell" starts right now. welcome to the "closing bell." i'm wilfred frost at new york stock exchange the bond market closed today major averaging kicking off the week slightly in the red i'm courtney reagan in for sara eisen. cleveland cliffs announced an acquisition this morning and southwest airlines getting hit after the company canceled more than 2,000 flights over the weekend. we'll have more coming up.