lower. on its's fifth day of falling. the pill meant to be administered to high-risk individuals with a newly diagnosed covid infection. that does it for "the exchange." stay right there, because "power lunch" begins route now. welcome to "power lunch" everybody. thank you, kelly wall street in rally mode today. here's what's ahead on a busy hour blame it on the weather. the rain that's what companies usually do when their earnings are weak will corporate america's new earnings excuse be the broken supply chain plus, the next trillion dollar industry? supporters all hydrogen a low carbon miracle but it's not without controversy. we will look at whether it could be the next big thing in energy. and the backyard trade, from

mowers to grills, to pools, we wrap up our power house blooper series with a move outcoors. >> i wish we were outdoors right now. it is beautiful. let's look at stocks the dow is up 530 points the s&p adding 2 the nasdaq up 246. the walgreens had an earnings beat, they are up more than 9% the semiconductor etf which has been under pressure three weeks is now up 3% xilinx has a new 52-week high. twilio drop box and akamai driving gains of about % bank results this morning easing concerns over inflation after the ppi posted its smallest advance this year. and jobless claims below $300,000 for the first time since the pandemic started let's bring in nike nike down at the nyse

what is this market telling you in how important is today's move >> i think it is constructive. i think it checks off a box, if you were looking for some kind of a process that says the market's six-week consolidation, chopiness, pullback, might be running its course might be i say, because you did have really better activity underneath the surface of the indexes than you had in the indexes themselves for several days i also would point to yesterday where you had plausible excuses for the market to back off further. apple's production cut news out there. the cpi was higher than expected yet you didn't necessarily have that much outright weakness. also we didn't get the late-day selloff we usually get i bring that up because tactically those are the clues where people say fine it is worth a shot today the commentary within the bank earnings conference calls about the strength consumer along with economic data points supports this point.

we are in the s&p 500 back up to its 50 day average most of this year that was the low for pullbacks. we have to ask if this is the next test on the up side constructive, all else being equal. >> talk the me about the inflation numbers, the supply chain worries. is this the typical hand wringing that we should expect, you know n a market in a bull market that is as mature as this one is or is it something really to be concerned about? >> i think it could be bothings tyler. i think the big question is have we been coexisting with these issues have we been kind of looking for more examples of them? have we be pricing in the risk force a while now. i think you might be able to answer yes to those things it reminds me a bit the trade war drama which spread across 2018, 2019 it was real head wind for lots of companies it was definitely sort of headline risk along the way.

but ultimately, it was not the key swing factor in deciding how the overall economy in the markets went maybe we are at that point right now. i know there are some efrl hints that for example, the number of ships anchored off of l.a. is actually down from the peak. maybe we are being hopeful on that but i think we can make the aircraft that we have largely priced some of that stuff? >> mike santoli thank very much. small caps rallying along with the rest of the market this day. our next guest says small cap logistics companies are a good place to invest. he rupds the federated her mess kaufman small cap fund in the top 1% since its inception in 2002 let's bring in steven denickolo. i hope i am pronunesing that right. in a yeah. >> i asked michael about inflation, supply chain concerns how real a worry are they for

you and the universe of stocks you cover? >> it is a great question. the overall mark peaked in early september. we have been grinding lower the last six weeks as i think investors have been grappling with difficult themes, the emergence of delta, fed tapering, and supply chain disruptions. look at the russell 2000 small cap index. it is up 15% year the date most of those gains were at the beginning of the year and we have been essentially flat since february highlighting the macro this year. usually you have a parade of negative preannouncements from lawn mower shortages not related to demand but to supply chain issues rising prices in raw material and supply short j as. i have never seen this before.

the market is trying to shake it off. but as we head into eps season one has to think the teams are going to give a conservative outlook which could cause additional short-term volatility. >> you think we are setting up for a really strong 2022 >> i don't know if i would say really strong? i think we are setting up for a decent 2022 given some structural positives that we have in the economy. when you look at inflation at 30-year highs and its freight costs, aluminum, rent, et cetera, you can't look at it in a vacuum without saying that number one companies are still managing to report record profit margins, number two, household net worth, bank deposits are at all-time highs with savings rates still above long-term trends and three, look at a ratio of inventory to sales they are way, way too low. so we will have a period o restocking which is a positive people don't like to say it but the consumer can handle some inflation in the short-term. >> let's talk about a couple of

your stock picks two are in the logistics area. one is a more broad logistics company. the other is a highly specialized one. talk us through both. >> the first one is gxo logistics. it was recently someone from xpo logistics to become the largest care place stock focused entirely on supply chain logistics, with specific focus on e-commerce. it 79 could be more timely gxo helps deliver goods faster and cheaper. they recently signed up customers like necessarily apple and nike read nike's latest conference call where they mention the word supply chain over ten times. and the difficulty of reverse logistics, that's returns, is underappreciated i have two sons, luka and tyler, not named after you tyler, unfortunately. but recently they needed new sneakers instead of going to the store we ordered five pairs each on line. they come home we tried them on and we returned

the ones that don't fit, they don't like the processing and warehousing of that return is a very complicated business that nike doesn't want deal with and they gain tremendous efficiencies when they outsource that process to gxo. >> that's one name you like in particular cryoport, cold temperatures, also logistics biological systems and novanta. why have the russels overall lagged this year >> because when you think about small cap companies in general, i am not talking about maybe secular driven growth companies but a small cap company has more difficult time, by nature, dealing with supply chain problems, dealing with global macro uncertainties, and just, you know, in an uncertain environment these companies have a more difficult time sort of getting the product where they need it when they need it. that's why, really, when you think about this environment today, any type of logistical

company should be fundamentally valued more today than yesterday. but the companies we look at at the kaufman small cap fund have secular drivers. even if it is a small cap company, cryoport, for example, extreme high value logistics i am not talking about sneakers here they transport cell and gene therapies. they require strict temperature control and storage of biological specimens mini-to-minilogistics where they are aware of the exact temperature and turbulence this product may encounter. they are part 600 fda trials no matter what is going on in the economic environment cryoport is a company that's going to be worth more tomorrow than it is today. >> thank you for your specifics and big picture thoughts about the small caps steven denickolo on on the other handings call it has become a common refrain to hear companies complain about supply chain.

on bank of america mentions of supply chain rose to a record in q2, more than last year. is this becoming a convenient excuse for poor performance? joining us now herb greenberg senior editor at entire financial researches cnbc contributor congrats on the new gig. >> thanks, kelly >> but you have that short impetus in you tell me, what should investors be listening for as we hear more and more from these companies? >> i think -- you know, we know that everybody is talking about the supply chain the concern i have, ie wrote about it the other day, was that it's the dog ate the homework. not now. we know supply chain issues are for real they have been around -- this has been the biggest deal for decades for most decades blizzards are real, hurricanes are real we know some companies can use them kelly as a convenient scapegoat at some point in time. right now you hope that analysts

really start pushing these companies on what they are doing so you can hold them out a quarter from now, two quarters from now because at some point there are going to be companies blaming the supply chain, remnantsings afterfacts of the supply chain and they are not real or won't be real. i think you have to distinguish. >> i wonder, herb, if it is actually that the issues are very real but supply chain problems are worse for those who are the weaker performers in a group, that's at a weaker competitive advantage or the smaller players. i wonder if there is almost a the more you hear it that tells you about how well the company is really doing in its market. >> i think that's a great question one of the things i looked at, two very recent ipos one is traeger, makes barbecue grills weber, makes barbecue grills they both became public at the

same time. weber said their gross margins went up. traeger's went down. weber was great at managing our supply chain what's going on. traeger has always sold as costco but they are not just at cost khouw. they are a gross margin problem but a they are actually cutting prices at costco, they are on sale at costco you look at that and say what's going on there is something going on? they are discounting them at costco and they have a road show where you can get extra off if you happen to be at the right store at the right time. those two make a great example because they are in the same industry. >> what am i supposed to conclude from that is this that something is going on with traeger or not going on with weber or costco cut a good deal with traeger or what what's my conclusion here? >> tyler, your conclusion is

that i think costco probably struck a good deal with traeger. but i come back to the fact that why would there be a special sales if gross margins are falling and they have a supply chain issue, what's going on there may not be anything but i want to point out one i think this that is there are going to be companies of that great is theups i was listening tocal audio when she said an analyst downgraded a stock because of this. i know a retail analyst, she is looking for great high quality companies that analysts are downgrading on supply chain issues and they become a really good play down the road. so you have two sides of it. you have got, what's really going on with traeger? maybe nothing but you ofv to pa attention. the other thing is which one of these are going to be a great buy going forward? i think that's the other side of the story. through it all we know the excuse is there, it is going to

be there even more, some of it is real, some of it won't be that's what investors have to pay attention. >> you have to be able to separate out the truth from the fiction, the fig leaf from the real problem. >> the real from the member recollection, tyler, for those of us old enough. >> good to see you. >> sure. coming up, buy now and pay later is disrupting finance. what is the impact on credit card names we will look at the names most at risk here. later, the ceo of hilton talks holiday bookings and the return of business travel. what's the best way to invest in that sector? our trading nation team is on the case

every single day, we're all getting a little bit better. we're better cooks... better neighbors... hi. i've got this until you get back. better parents... and better friends. no! no! that's why comcast works around the clock constantly improving america's largest gig-speed broadband network. and just doubled the capacity here. how do things look on your end? -perfect! because we're building a better network every single day. welcome back to "power lunch. i'm dominic chu. as we continue to track the market rally today particularly in the technology sector, the fintech space includes fiserv, global payments, ncr and toast

as well. then there are household names like square and paypal, also holding onto gains this afternoon. though both are still over 10% off their recent highs kelly, tyler, they seem to be volume tilt tile but they are up big today. >> they don't come down like that often dom, thanks. >> thank you, dom. let's get to leslie picker who has a news alert on macy's. >> i want to show you, shares of macy's now up almost 4% on this "wall street journal" report about an ongoing activist situations regarding johna partners they report the company -- firm took a stake in macys and are urging the spin-off offis e-commerce business. i confirmed with one source familiar with the situation that that is true it was nope last week that johna at a conference in new york gave a presentation about how it believes how the company could gain value from spinning to have

e-commerce unit. however, through this article i can confirm that that e-commerce business has drawn attention from potential suitors as an acquisition. it's what happened with sacks if i havate avenue. essentially the way this works, the back end of the e-commerce business will be run by a different company, whoever purchases it for the consumer it is the same. shares of macy's up almost 4% on this report today about activist johna partners taking a stake as well as sending a letter to the company yesterday. >> leslie picker reporting. with consumer push to buy now and pay later disrupting the fintech space, research expects the category to expand from $20 billion last year to nearly $150 billion by 2025. that's 45% annualized growth there could be casualties in the payment space along the way.

who is at risk let's bring in an equity analyst. a, it is great to see you again. who is most at risk from this shockingly large growth? >> well, most directly at risk actually, this might not be the first names that come to mind are companies like synchrony and alliance data systems that provide the private label credit cards to retailers, those traditional cards where you have got a sak's card or a mays audio's card the most direct thing buy now pay later is substituting for is a modern version of that retailer-specific private label card they are probably the most directly at risk those players have about $200 billion in volume in the united states we are expecting buy now pay later to grow to $150 billion over the next few years. most of that substitution could probably come out of that

category. >> for people less familiar than you and than many are about buy now, pay later, how does it work how do the companies that offer buy now pay later make their money? >> so, yeah, these are specialized firms like affirm or afterpay or clarna that you might be starting to see on retailer website when you go to make a purchase, you have an option to click on a button that says do you want pay for this in four interest-free installments that's the buy now, pay later. paypal offers it as well ask the way it works is that that player, let's use affirm as an example, does a real-time very assessment of you and approves you for that sort of mini loan might be a $400 line. >> uh-huh. >> then they go ahead and fay the merchant then they turn around and then they sign you up for their app and they ask you to load a debit

card or some other form of payment. then they collect those payments for you in biweekly installments for the next couple of months. then the idea is they have brought you into their ecosystem and they start he had confusing you targeted marketing, promotion, et cetera so they are actually making their money primarily off the retailers who are willing to pay a premium. usually they are paying as much as 5% or 6% of the order value for the buy now pay later buttons because they have been demonstrated to increase average order value and increase conversion rates of consumers. >> increase order values by quite a lot. there are estimates they might increase your typical or average order value by 30% to 50%. enormgous numbers. why don't you think this is a bigger risk to the traditional card companies >> actually, they use the card companies in many aspects of their business the most obvious one being that

when you go to repay those payments, those four installments, you usually use a debit card it's 80 to 90% debit card. the card guys are getting more transactions because it is turning what was one transaction into four or five transactions then, in addition, they often use the card companies on the front end to pay the merchant and to expand their merchant acceptance to -- you know, they will provide -- once you are signed up for a company like affirm or afterpay they will often actually provide with you a digital version of a card that you can then use at any weren't that takes visa or mastercard. it doesn't have to have that special button once you are signed up. they use the cards in multiple places throughout their businesses. >> did square recently buy one of these places like this. why wouldn't visa or mastercard

f this works, why wouldn't they take them out? >> you are right square announced the plan to buy afterpay. >> right. >> which is the major australian play, he one of the top three players globally what visa and mastercard are going. mastercard launched a product called mastercard installments what they are providing is essentially a white label version. they are competitive response is they are providing a generic version of buy now pay later that any of their card issuers or any of the fintech partners can use. as a consumer what we should expect that we will see is we will start to see all of our traditional banks like a chime or a sofi all start the offer this type of financing because mastercard is offering it. yeah. >> all right interesting change in the way we do business. >> a big change. that's huge. >> but if you -- the beauty of the credit card is you pay it off -- i mean, those who do not

pay immediately, you pay it over a longerert approximate. here you are being asked to pay in four installments i buy a $400 dyson vacuum i have got to pay $100 for four months, what if i get behind i am going to be charged something. >> these companies don't allow you to keep spending you have to address that payment before you can use their service again. >> i see. >> what that looks like -- obviously people are going to fall behind. there are reports about it happening today, is it happening in affirm as well as the others. i don't think they have been tested in any of these kind of cat clis s. >> stress test. our power house blueprint. now it is time to boost the curb appeal we are hdieang into the backyard when "power lunch" returns with your qb's increased spin rate, any pass with a launch angle of at least 43 degrees puts sanchez in the endzone. you a data analyst or something?

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welcome back i'm rahel solomon. here's your cnbc news update. the state of texas is responding to a federal lawsuit challenging its new abortion pan. texas argues abortion is not a constitutional right because it is not mentioned in the founding document

instead, texas contends it is a court-invented right, what it calls a concoction of judges that want to impose their ideology on the nation president biden celebrating the return of in-person learning in the nation's schools. he says that 96% of u.s. school districts are fully open thanks to health measures like masks and vaccination force older students and teachers. as for younger children -- >> i know parents out there are anxiously waiting for a vaccine for children ages 5 to 11. the good news is the fda and outside experts in the cdc are set to make its determination as to whether the vaccine will be authorized for that age range in the next few weeks if authorized, we are ready. >> and in west virginia one of the trucks carrying concert jimt for country singer jason aldean went off the road. he was not on the truck.

no one was hurt. the concert will go on as planned in charleston. a city i know very well. >> beautiful state, west virginia yes. a market check it is a happy one if you are long in the market dow industrials are up 500 points up nearly 176%. the s&p up in percentage terms even more, up 1.7% at 4438 the nasdaq capacity up 254 that is 1.75% higher ten-year below that 1.6 level that is also helping stocks today. should we look at oil? let's see what oil is doing. it has been a nice run for oil it continues up 1% at 81.29. how about financials for you >> about of america, morgan stanley seeing nice gains after their earnings reports on the flip side we will see -- there is the flip. there's the side wells fargo down about 1.5%

following its results. but our jim cramer is still a believer in his latest investing club newsletter out minutes ago james saying investors have to be patient about the turnaround story. if you want more from jim on that one, sign up for the newsletter by going to cnbc.com/investing club. or point your phone at the qr code and it will take you to it. here are today as power movers walgreens rallying more than 9% after it reported strong earnings eps and revenue beating expectations results getting boosts from covid-19 vaccinations as well as the sales of at-home covid testing, cold and flu product ups receiving a bullish upgrade at stipulatel telling firms to buy the shipping stock saying continued focus on yield management will pump the company.

finally go ahead sinking as much as 5% as tesla's elon musk tweeted he is talking with airlines about installing his rival in-flight airline service star link satellite onto planes that could compete directly with go go. >> at this letter thank you. ahead on "power lunch," everybody. the green light, despite being lower today alternative energy stocks are having a monster week. plus, hydrogen is high it could be a low carbon solution that could eliminate about a tenth of the today's greenhouse gas emissions we will explain when "power lunch" returns

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that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? welcome back, everybody. oil prices almost doubled over the past year. but it is not just crude that's doing well alternative energy stocks also rallied of late. pippa stevens has more. >> mixed performance today but the group is up big this week. oil and gas prices are surging making renewables like wind and solar more atwraktive. and the power crunch hitting europe and asia is causing a

rethink about the global energy system here in the u.s. the biden administration yesterday announced steps to significantly expand offshore wind development. they are targeting 30 giga watts of capacity by 2030, which is enough to power more than 10 million homes annually this is still a long ways away but there are big stock implications for manufacturers then there is product developers and this also touches the utility sector and some of those names are leading the way. nuclear power is getting another look here. the north shore global uranium mining fund and global x uranium fund pour than 15% this week officials from france and japan sthaling the need pour more capacity financially, there are solar stocks the invesco solar etf is down today, but still up 10% for the week and on track for its best

week since march names like those remain high >> very high hopes to qukick things off. another alternative energy source is hydrogen it has been haled as a possible alternative energy source for decades but still represents only a tiny fraction of the energy industry. our next guest says hydrogen's moments is here and it could be a savior as countries search for alternative sources of low carbon fuel. joining us now, the global energy and climate innovation editor at the economist. vijay, welcome hydrogen has been a popular source to ponder it has been often called the future of energy and will always remain the future of energy why do you think now is its moment as i understand it, capturing

hydrogen sometimes requires more energy than you getout of hydrogen in. >> tyler, you put your finger right on it. there has been a lot of hype about hydrogen going back decades. some of our viewers will remember a couple of decades ago big companies like daimler-chrysler, toyota, gm were betting billions on fuel cell cars. we were supposed for millions of these. we don't so it is right to be skeptical the other point to remember, hydrogen is more of an energy carrier, like electricity and a war to store energy like batteries. you can't just get hydrogen freely on earth. it has to be made from something. that takes energy. anyone who tells you it is a magical new source of energy you have to ask them where are you going to make your hydrogen. like electricity you can make it in dirty or clean ways the reason why it is getting another look, you are going to

have a decor banization of the energy sector in the come years. some sectors where teslas and wind mills won't save the planet. >> vijay, as we think through all of this, and obviously the sort of battery-powered cars have completely won for the time being. there are still some hydrogen fuel cell technology out there maybe for trucks obviously we will see if that's a bigger use case. my question is whether hydrogen could play a bigger role in being a nuclear substitute or compliment as renewables have intermittent problems could hydrogen get quick enough to that gap and how fast could the price of green or blue hydrogen come down? >> two good points can it play a role in grid stabilization? that's one of the properties that hydrogen has. as its developed it can store energy across seasons. batteries in california -- they

have got grid scale batteries that can last four hours, let's say. by hydrogen can safely and cheaply store for many, many months and bring the power back to conversion. you lose some energy along at that way every time you convert. but with natural gas shortages and lack of energy on the grid because of a large renewable presence but not enough backup power. we are going to have the same problem in the u.s. as well, the more renewables penetrate, the intermittentsy problem becomes a bigger problem for the grid. the second thing you said was the price? right now it is too expensive. it is not for today but the depth of fwhrg has launched a moon shot for different technologies they want to try to bring down the cost of hydrogen by 80% by the end of the decade. it sounds crazy and would be a dramatic decrease. but that's exactly what happened with solar, with wind over the last decades the biggest input costs to

making hydrogen is the cost to the renewables themselves. that's the number one cost that's been plunging dramatically analysts like morgan stanley for example, think within three or four years within the best places for america for renewables we are going to have cost competitive hydrogen going up against renewable energy. >> a couple of quick questions hydrogen burns quickly see hindenburg there energy is released what is released with it are pollutants released with it or is it clean burning number country and number two, when you make it, what is the clean way to do it you said it's really not so much a fuel source as a conductor of energy >> sure. real quick hydrogen of course is explosive. it is a gas. but let's remember, gasoline is extremely explosive and we work with it every day safely

there is actually a decent sized hydrogen industry already for things like fertilizers and petrol chemicals the hindenburg did not blow up because of the hydrogen. s that a fallacy it was the paint that covered the hin ben derg. >> i learn something every day. >> they need better pr consultants for the hydrogen injury put your finger on the point, hydrogen is not a primary energy source you have got to make it from something. the nerds call it an energy carrier. you have got to make it from something but then it is perfectly clean. there are fuel cell forklifts thousands of them using hydrogen today. if you are making it from clean source you are decarbonizing an industrial application that's where it is going to be used first if you make it from natural gas you have got to be very, very

careful to use carbon capture sequestration technologies which are available but frankly there is no vogt motivation to use them there is no carbon reg ilation why mother the hydrogen made today is dirty but it can be made more cleanly if you put the right regulation or technologies in place. >> thank you for your insights it was really clear. we will have you back often as we explore this interarea. >> the stock performance for f fuel cells have been strong over the past month. up next, finalizing your power house portfolio for the final week we are going to go outdoors. we are going to trade the stocks that focus on the backyard as "power lunch's" power house blueprint continues and concludes. so, should all our it move to the cloud? the cloud would give us more flexibility, but we lose control. ♪ ♪ ♪ should i stay or should i go? ♪

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you like deere i don't think of them as a backyard lawn mower maker? >> it is a small part of their business it helps them to fill up their dealer network with more product that the customers want. >> they are not having trouble getting supply out there >> i mean, everything is tight basically, inventories are about a third of where normal levels ought to be. but that's helping with pricing as well. >> let's move on to altar holdings what do they do? why do you like them >> altar is more of a die -- altra is diversified what they do for the backyard is very small it is a great management team, spinout of dana herr's babies. they have a great operating style and know what they are doing is this middleby and heyward holdings heyward, the pool company.

tell bus middleby. >> they make cooking equipment the restaurant side of things have been tough. but it is coming back. great management team and they have a huge residential or growing residential business with high-end grills and all the stuff you would like to have in your backyard. that business has been booming the last two years. >> given that all of these are geared towards the performance and demand of outdoor accessories for people's homes do you see any sign of softness there yet or does the cycle to you look strong enough to sustain several more quarters of outperformance >> you can't really think about quarters just because just think about the two dynamics people are still at home more. we have tight supply, and inventories are really low it is going the take probably all of 2022 to catch up on where the demand is and most of 2023 to rebuild inventories heyward holdings it is a pool supplier, am i right on that?

>> yeah. it's the equipment the high-quality stuff in the back there. >> you are neutral on it why because my sense is everybody is building a pool. not everybody, obviously. >> that's part of -- yeah, well, that's part of the reason. what if there is a hangover as we get to the s.e.c. seconds half of 2023 and everything gets filled up? like what's going happen after that. >> joel, thanks very much. we appreciate your insights. you gave us helpful stock picks. >> able to pack a lot in. now it's time for vacation hotel stocks are coming off a strong summer as they rebound from lows is the wos over for sector. >> trading nation covers that next it looks like it, craig. and the defensive linemen are playing peek-a-boo. i've never seen anything like that before. harris now appears to be burping the baby. that's a great moment right there. the ref going to the rule book here. what, wait a minute! harris is off to the races!

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[swords clashing] - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. welcome back to "power lunch. hotel stocks joining in on the market rally today hyatt, intercontinental and hilton all higher. this is what i was told about what's driving the recovery. >> leisure demand has been incredibly strong. now that kids are back in school, you don't have as much

in terms of voluntarily yule but the summer leisure was the best of 102 year just the fact didn't see a rate in the summer higher than '19 levels which were the peak in the history of the company. leisure demand remains very, very good. >> what could it mean for the holiday travel season? let's ask our guests john, as it relates to business travel he did say that small and medium-sized businesses are getting out there and as companies a hybrid model that will increase demand for hotels. looking to stay somewhere in the city. >> i think the whole travel leisure system is larger than hotels cruise lines, airlines you have more people retiring. you have pent-up demand and the

short term i think there's still a lot of uncertainty looks like the back end of the delta variant and not through the pandemic yet who knows if there's another variant to come through? you need to be with i think individual companies and stocks that have the balance sheet to withstand further volatility let's not forget that the cost to travel gone up. ticket prices gone up. fuel costs are clearly a big variable and labor costs are a big variable for the companies they need to hire more people to service the customers. >> yeah. speaking of services, quint, i asked the biggest challenge for the industry right now he said the labor shortage. >> yeah. make no mistake about it that's true for everybody i think everybody out there and raise pay and push that on to

the consumer and try the stocks have moved in anticipation of what we are seeing the market bring this is stuff forward and many stocks are already trading at all-time highs kor relating with the summer and the demand for leisure travel and i think investors have to be careful take hilton for example. it looks pretty good the stock's trading 33 times forward earnings and set to double off the covid lows but my person what john said, balance sheet. looking at the stocks they're so levered up negative tangible book value when and if interest rates do rise and have a sustainable uptick i think debt is going to become a concern from an investment perspective so i think they're fine for a trade here but i would definitely not overstate your welcome. >> shares up 8% this month john and quint, thank you. for more trading nation, head to

our website, follow us on twitter. >> thank you. next coinbase has a request for the u.s. government. check out the dow up 530 34,908 the tally >> and now, the latest from trading nation.cnbc.com and our sponsor.

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douz lawmaker offices and several agencies to discuss aspects of the proposal saying feedback from capitol hill is welcoming. >> may be the direction it will go to a separate regime. >> or a big combined one s.e.c., cftc and this. >> we'll see you tomorrow. "closing bell" starts right now. hello! and welcome to "closing bell." i'm sara eisen nice rally today for stocks. major averages positive for the week. >> thank you for letting me know that it was me next. i'm wilfred frost. have a look at what's driving the action walgreens after strong earnings this morning a good showing from the bach banks. and good economic data this morning with weekless jobless claims and september ppi lower than expected. coming up the chairman of wells fargo on