industrials have a strong bid and within industrials defense and aerospace. look at a company like raytheon or northrup grumer, but raytheon a new 52 week high the bid is there because no budget cuts coming and china is sabre rattling good time for defense. >> good stuff. thanks for watching today. "the exchange" starts now. ♪ thank you very much, scott hi, everybody. i'm kelly evans. here is what is ahead on "the exchange." sell-off what sell-off? stocks are once again nearing all-time highs, the dow and s&p within 1% of their records big fund managers are now the most bearish they've been in quite sometime we will look what that means for the market and bitcoin rising again today, just shy of its own record high back in april as the first bitcoin futures etf starts trading. what the head of the sec said today about the future of crypto regulation and we will speak with a crypto specialist who says a future's based fund is

unfriendly to retail investor. plus, which retailers can weather supply chain snarls. the company that could be the next meme stock and goldman with a new conviction buy let's kick off with the market down at the nyc with michael santoli. mike >> yeah, kelly mostly green here. the big-growth stocks providing more of their share of the push higher, within 1% of the all-time high. i think it is 4536 as a closing high on the same day one question is the market going to follow the seasonal script perfectly two years in a row last year and this year, september 2nd, high. sell-off for three weeks into september. a bounce, a further decline and a recovery last year we didn't get done with did downside until october 30th, right before the election. right here it looks pretty textbook the way this is working out. so you would have to say you give the benefit of the doubt to some of the seasonal advantages. one thing i will amend, kelly, that b of a fund manager survey.

the fund managers were bearish a week and two weeks ago when the survey was done. that was here, not where we are right now. that sells you about market psychology look at the style and sector moves here banks versus technology, they've kind of each had their moments over the course of the year. banks obviously built up their advantage earlier on, making new highs, usually pretty bullish. tech still below the highs but actually have out performed this month. it has not been a clear growth versus value split right now we have treasury yields higher but below highs from the spring. crude oil, of course, a big mover. getting a little bit over bought, getting stretched on the charts but, boy, it is a very, very strong trend right here it doesn't say more about demand or supply, we don't really know. so far the markets are able to absorb it. one final point, we were at these levels in twr2014 we spent 2010 through 2014 above $80 a barrel in oil, obviously with a smaller economy and consumers with lower income.

so maybe it is a silver lining >> we will talk about the survey thank you, sir as mentioned, bank of america latest fund manager survey is least bullish than in a year, with managers reporting cash levels at a 12-month high some of the other findings have 85 per secretary expecting a rate hike next year. joining me to discuss is kim forest, chief investment officer at boca capital markets. welcome, how does that line up with your own thinking >> well, i think they're probably a little short sighted and probably missed a lot of the news that inflation isn't quite as hot as everybody anticipated. maybe a couple of weeks ago. we got some data at the end of last week that really validated. we have inflation but it is not super hot.

>> just remind me, which of those data points? it has been interested as well because i think there's a question for something like retail sales is it strong because there's strong consumer demand or is it just higher prices >> well, i mean no doubt inflation is higher than we've had probably for a decade but it is in line i think it was both pmi and both cpi, both were lower than the analysts had expected, right so it was lower than the average, although it was still high i think that kind of is showing us some of the inflation and not all of the inflation is transitory, and we have a lot in the supply chain that's causing everybody issues and, you know, that affects prices. it just does >> what about the sectors they're talking about? are banks and energy attractive to you >> well, we're running right now a sector neutral strategy where we try to match up with the -- our holdings with the s&p 500.

so we have to own those. i think having earlier bought energy, i feel pretty good about that, and the same thing about the banks. i think they are good, but that really feels like a short-term trade, not a longer term trade we kind of do. >> tell me, what do you do like for the longer term? is it industrials? >> well, it is industrials, and we're going to be really watching those earnings very carefully as well as technology. you know that's a big favorite of mine. but here is the thing. what we're looking for in any company, and that's an energy company, a bank or industrials and technology, is how they use technology so what we really want to do is find companies that are well-run, and we've found that technologies that create and, more importantly, deploy technology well are winners in the long term. they can survive things like short-term cash -- or inflation because they're doing already

what they can to not waste money and to not just chase things they have a good plan and they're executing well >> sure. and we've talked about zylinks which is one i know you like >> yes >> sticking with the industrial's theme, what about 3m, is it a company you are looking to buy or you are waiting to pounce? >> well, we bought it earlier this year and we really like it because of its global reach, first of all, and we feel that it is just a really well-run company and it understands what its clients want to have out of that company so we think it is just a well-run company it did trade higher this year. it is off a bit and, you know, we are always looking to add when stocks go on sale >> all right so, finally, if you are looking for companies like 3m, sort of at the industrials more broadly, does that mean you think we are coming out of this fundamentally in good macro shape? >> well, the macro's always the question you know, the latest news from

china and their lower gdp, you know, that's concerning, not just because china is a big and becoming a consumer-oriented market, but more that it signals what their demand is for their products so that is kind of a global question mark. take a longer view, i think that will serve you best as an investor, and that's what we do. so i do think things are still improving. we have, you know, signs that things aren't as dire as we thought maybe last month, and we'll see at the end of this earning season by listening to what all of these companies say about what the future brings, and we'll know then. >> and we'll see at the end of the month if the rest of the fund managing space changes their mind and agrees with you kim, it is great to have you thanks so much >> thank you >> kim forest with bokeh not to netflix the company reports results after the bell and the stock has seen a massive run, up about 25% in two months, outperforming all

of the other mega cap tech names. analysts like what they see ahead of results today bank of america says it is confident in netflix's return to strong growth, maintaining their buy rating at $680 price target. barclays highlighting the company's history of top-line beats. ubs, bear and piper sandler raising the price targets with piper the most bullish hiking to 705. evercore isi adding it to their tactical outperform list goldman maintaining the neutral ratings saying "squid game" heightened expectations of everybody. julia boor sten is here with three keep new berhes to watch >> kelly, with record-breaking viewers for "squid game," investors hope it will jump start the growth analysts expect it to grow 16% on a 47% increase in earnings per share. now, the other key number to watch is subscribers

netflix projected it would add 3.5 million subscribers in the third quarter and, even more important, is what subscriber guidance the company gives for the fourth quarter analysts forecast 8.5 million additions for q4 as the company rolls out even more content. we are also listening for commentary on woohat is next fo games, competition and content investment, kelly. >> back to growth sounds like it is the main theme. how would you compare it with the story around disney these days where people seem to be pulling in -- i think it was morgan stanley earlier this week concerned maybe their subscriber growth numbers, you know, the gloss is coming off a little bit. >> yes so the tale of two very different streaming services right now. the question for netflix for so long was how much had they pulled forward growth. the company had disappointing results in the first two quarters of the year and they said, look, it is because of production delays. we will have so much new content hitting in the second half of the year, q3 and q4, they anticipated they would see a

really big uptick in subscriber additions. now the question is how saturated is the u.s. market, do big hits like "squid game" show that there is more potential here in north america, which is a very saturated market, and what kind of growth arethey going to see internationally the other question that we might hear addressed by netflix is what is their pricing power. maybe they can't add that many more subscribers here in the u.s., but maybe they see opportunity to raise prices down the line now, disney is a different situation. much less content but their content is much more high profile, familiar brands and many would say more popular content even though they have less of it disney also has the struggle of getting enough new content out there to help them add subscribers, and it was warned they would have problems hitting the near-term target with choppiness which makes investors worried. >> no one likes choppiness on that point, julia, have they

kw quelled the rumors, about spinning off espns, which have been around a year, maybe two years now. i think the company, you spoke to them earlier this week and they tried to say once again it is not on the table. >> look, analysts have for a while said it would be a great idea to spin off espn. disney has not commented on these reports. there was a report that disney was looking into spin off espn and espn plus. a source i spoke to close to the situation told me it was not in the works because disney has been investing very much in different things for espn plus including sports betting, which would grow the value of espn and espn plus, and they just made some new deals including for the nhl. they also have more nfl rights so disney really sees a lot of value in espn and espn plus so that it is not in the works for now. although, kelly, who knows what the media landscape will look like in ten years so i wouldn't make any bets that far out >> i know. >> but for now it seems like disney really wants to grow the value of those assets.

>> julia, thank you very much. disney shares down about half a percent today. again, had a tougher time earlier this week. netflix after the bill tonight coming up, the first-ever bitcoin futures etf making its public debut about 3.5% right now over net asset value. up next we will speak to the ceo of a crypto friendly bank about her concerns for retail investors. plus, one of the names billionaire todd boehly has. we will speak with him about merger, sports and media we are back in a moment. this is "the exchange" on cnbc thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant?

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its all-time high. earlier on "squawk on the street" explained gary gentzler explained why he endorsed it >> i think we in the sector should be technology neutral but not policy neutral what we're trying to do is ensure to the best we can within our authorities to bring projects into the investor protection perimeter >> joining me now with more on the impact across the financial sector and for investors, kaitlyn long is chairman of a crypto friendly bank kaitlyn, great to have you today. >> thank you >> do you think it is the retail investor interested in the product or more for institutions who really can't deal with straight bitcoin >> certainly a lot of institutions like 401(k) plans and some iras need the product rather than bitcoin itself, but

there's certainly a lot of retail interest in this. what everyone should be aware of though, as you have correctly said in the intro, is that this is not bitcoin it is not the same thing, and very likely the returns, if past is prolong, are going to lag actual underlying bitcoin by a quarter to a third so there's a big tracking error in futures-based etfs in commodities, cash-settled futures-based etfs, and everyone should expect that >> would you be more in favor of -- what would we call it? a cash bitcoin etf, or do you really believe not your keys, not your coin? if you want bitcoin, literally, physically try to take custody of it and don't get involved with these kind of products? >> well, that is definitely the best way to own bitcoin because you don't have counterparty risk bitcoin is an asset that is not anyone's iou as a result you have the ability to be your own bank, to own it yourself, but you do have to

take personal responsibility to educate yourself, invest in yourself in the knowledge of how to manage your private keys. the problem is that many don't want to do that, and as a result we typically -- they're looking for wrapped products like this however, there are better ways to own bitcoin than a cash-settled futures etf >> sure, although it is understandable a lot of people don't want to deal with all of the steps of physical custody and that kind of thing let me just pivot and, you know, as somebody who is kind of a -- i don't want to call you a die-hard, but maybe a long-time bitcoiner, what are your concerns about the price action today, specifically about some of the leverage, you know, kind of the credit creation within the system i thought you had a great line the other day about how people always warned wall street would ruin crypto, but it is crypto itself where we are seeing this kind of speculative activity what are your concerns >> that's right. this is the first bull market

happening, post happening bull market where we've seen leverage for those not familiar, bitcoin has a distinct four-year cycle that is tied to what is called the halfening where it is cut in half typically every four years. we typically see big bull markets coming not long after the halvenning, which the last one was in 2020. this is following the his tore pretty well. we are seeing a lot of leverage that has entered into these markets and it can cause price swings certainly i would say in the last few days have been a lot of investors waiting for the etf approval it is a positive sign, but it is a double-edged sword for the reasons we talked about earlier where we are getting a lot more paper claims to bitcoin than there are real bitcoin and there's no lender of last resort for bitcoin. there is no one that will ever make 21 million of them, it is

impossible at this point, and, therefore, there's a lot more risk of the price being swung around this time we don't know what it is going to do without a lender of last resort in the next correction. >> and what would you say then to people who are looking to get in these days? i mean is there a reason why bitcoin should be in a sort of class of its own when there's so many others to now pick from >> well, it is interesting because there is a very good argument for bitcoin to go higher, and, again, if past is prologue with bull markets, we've seen that it can go quite a lot higher, and bull markets definitely tend to surprise people on the upside however, the bear market drawdowns, i just put out a tweet referring to pan tara capital's chart. the average bear market drawdown is 68% from the peak so there's definitely a lot of price volatility what we don't know about this time is how much the leverage is going to amplify that.

there's a lot more liquidity, a lot more ways to buy bitcoin, including now the etf where you can get exposure to the price differences. again, that's not real bitcoin, but what we don't know is how those are going to perform i just saw in an article nft today, a reference to overcollateralization of 35% on bitcoin-backed loans, but when the average draw down is 68%, you can see how that map doesn't quite work some that have that kind of leveraged exposure might not survive the next bear market cave caveat emptor, do your homework. so many people have been explaining to investors for free the issues with investing in futures-based etfs, so educate yourself there's no substitute for that >> it would be a wild rideif w have something like a 75% drawdown, which is not what you are saying but kind of directionally hinting it, at sort of how the system is set

up caitlin, i appreciate it thank you for your time today and kind of explaining the architecture to us and the latest product we appreciate it >> thank you my pleasure. >> caitlin long is the chair and ceo of evente bank coming up, senate democrats are expected to propose a new threshold for bank accounts to report in flows and outflows to the irs after big blowback we have e te daithlastetls from d.c. when we come back paola needs a parachute. so, salesforce customer 360 unites your marketing, sales, commerce, service, and it teams around her.

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1% here are some of the movers. the semiconductors, the smh higher again today there it is. no, that's nxp anyway, the whole sector is up about 2%, only 3% from last month's record others are also participating. speaking of chips, marvela is hitting a record high. it is gaining about 1.25% day. jim says he is locking in a gain of 180%. he is a long-term believe of the name and would be a buyer on a pull back. you can read about jim cramer's trades in his new newsletter the cnbc investing club. sign up by heading to nbc.com/investingclub or point to the qr code on the screen now to tyler mathisen. high, tyler. >> reporter: here is what is happening at this hour near houston a jet with 21 people on board crashed and caught fire. a mcdonnell douglas md-87 failed

to gain altitude when taking off from houston executive airport the faa says all passenger and crew escaped and only one person was injured. south carolina lawyer alec murdaugh was denied ball and ordered to receive a psychological evaluation, this the second set of charges he faced since finding his wife and son dead last june prosecutors allege he used funds meant for the sons of his k housekeeper to pay off his own debts. facebook will pay $4.75 million to the federal government and up to $9.5 million to eligible victims. china says rocks it brought back from the moon show lunar volcanic activity lasted far longer than previously thought scientists say the volcanos were

still erupting on the moon until 2 billion years ago. that's about 800 million years later than current estimates on the news, the $10 billion replacement for the hubble space telescope and what makes it the most complicated science mission ever launched, tonight on the news with shep smith at 7:00 eastern. kelly, back to you >> the next frontier tyler, thanks. there could be a new meme stock on the horizon we will talk about that in rapid fire next. plus, home furnishing headaches and something walmart this way comes stay with us we are back after this it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined.

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♪ welcome back, everybody. let's catch you up on a few stories that should be on your radar. it is time for rapid fire. here to break down the headlines, of ami capital management joining us along with courtney reagan and bob pez sawnie joining us from the nyse. first up, gold man sack swapping in walmart for target on conviction list, saying increased market ability and market share are reasons to be bullish on walmart this is one of the great pair trades of the year the stock under performed,

hovering around break even compared with target's gains of 43%. goldman reiterated the buy rating on target, just removed it from the conviction list mainly on outsized growth. chris, which one would you be a buyer of >> kelly, i like this call i think walmart has way under performed not only target but the s&p since the beginning of last year. both have great managements. i wouldn't sell my target but i would pick up some walmart here. i think they're the only ones online that can come close to amazon with logistics and delivery method. >> bob, what would you add to that if we zoom out it will show walmart was a great performer in 2020, so part has been a pandemic hangover effect >> i think the call makes sense as a relative value trade. but i think there's something obvious going on here. walmart -- target is doing better than walmart because, number one, it has a much better home furnishings department in my opinion number two, i think the average consumer perceives that target is a better shopping experience.

my wife, there is a walmart and a target equi distance from my house. my wife goes to target because she likes the shopping experience better. i'm not saying anything against wal-mart but i think the public perceives that and that's been a factor in them taking market share. >> courtney, where are the companies on this battle, which is kind of to become one of the big main players in this category you know, there's amazon and they might go physical there's obviously walmart and target expanding online ordering and pickup options >> yes, i mean i think that a lot of the points have been made here are good ones, of course. target definitely has a bigger and more significant discretionary business when it comes to the percent of total sales than walmart does. remember, walmart is a very important player in the grocery category, which does drive repeat trips that is something that i think we do need to pay attention to, and that is very important walmart had been working on the buy online pickup grocery order

well before the pandemic target had been doing that for non-grocery categories both have some competencies in that area, albeit in slightly different silos. i think that when you look at walmart, walmart stock does seem to behave more like a consumer staple, especially as of late, and target does seem to behave more like a consumer discretionary player, although they are both staples because of those different focuses, if you will, when it comes to categories >> that's a great point. they're so similar yet so different. maybe there's something for everybody depending on what the investor is looking for. let's move along bank of america says demand for certain so-called hard lines retailers has been above their expectations, but still they say some companies are better positioned than others they say relative safety in services like mr. carwash like less reliant on supply chain they like home depot and lowe's and specialties as well.

the biggest losers are bed, bath and beyond and best buy. is it a question of who can supply the product, courtney, because there are plenty of questions about the housing cycle still? >> absolutely. i think it is an interesting call when they particularly are pointing out bed bath and beyond versus best buy and i know, kelly, you will laugh about the tickers like we talked about previously >> always. >> it is always very confusing for us if you think about best buy, of course, they are sort of this last-man-standing in a sense when it comes to a physical consumer electronics retailer. of course, yes, they have online operations, but they really became a standout player in the pandemic ceo corey barry was on the "today" show last week saying, look, inventory is not a problem for us we have 50% more inventory this holiday than last holiday, 20% more than two years ago. we don't see prices are going to go up and actually we think we could have good deals coming forward. >> wow >> that's a different message than we've heard from a lot of different retailers, but then

you have bed bath and beyond undergoing this big turn around and they have a lot of room potentially to grow, albeit competing in categories that are largely commodity but private brands they're trying to use to differentiate themselves >> i would love, bob, to hear companies talking about how they're well supplied and able to cut prices. that would tell you something very different going on, it a least for certain players. >> yes what i worried about for the supply chain, remember, we are really going to get a test now, going into november and december stuff will start flying off the shelves. we will find out what kind of supply chain problems there are. but i really worry about smaller stores see, you have these home depots and lowe's with hun ddreds of people with supply chain logistics trying to make stuff is delivered to stores if you are a smaller store, you are waiting for a truck to show up i think it could be a problem for a lot of people. maybe how to play this, maybe gift cards would be a big thing this year. if you can't get nike sneakers, buy gift cards maybe that's an interesting way to play supply chain shortage.

>> interesting moving along is macy's, the next meme stock sales dropping 3% after shooting up 17% yesterday, you recall, on talks it could take the ecommerce business public. it is said a bigger opportunity would be for macy's to become the next meme stock. while the trading volume was below game stop at the peek, they highlight why they could be in the sight of investors. what do you think? >> i think becoming a meme stock is a tough way to make a living. i think the fundamentals are good for macy's unlike other meme stocks so retail is anice place to be now. i would advise investors if you are thinking about meme stocks, look at the bonds. macy's have shot up in the last week, bonds have gone nowhere. we haven't seen any upgrades so it would concern me. i would say buyer beware on macy's >> bob >> i don't understand this whole story. so i know there's this story

sachs is going to spin off and it is going tab lus. it is a different story. they have fewer stores than macy's with this whole macy's idea, how do you spin off an idea you might spin off the ecommerce business how many stores do they have they must have 600, 700 stores the distribution for the ecommerce business is the stores people go pick them up at the stores they send them out from the stores if you sever that link, what do you have you have got to build up another distribution chain for a different company. i don't see how it particularly makes sense. at least with the other one, some of the other ones out there with sachs, you have fewer stores they had like gilt, right, courtney, that gilt, that hoity-toity that they've got >> i totally agree, bob. i'm curious to hear your tack, courtney >> i have spent a lot of the day talking to people on the phone

and i'm starting to understand the argument for separating the businesses i started out in bob's camp, and i'm not saying bob doesn't have a good argument, but i do think it is interesting if you think about as an investor that once a high-growth company, you are going to look at some of the online-only stores if you invest in a macy's, for instance, you are getting both the physical and the digital experience sachs seems to have been able to figure out how to separate the two businesses, even though the consumer will not feel the difference that's the key that bobby think is harping on. if you are a consumer that buys at sachs online, you want to be able to take it to the store as long as they can fulfill that, which they say they can, it might make sense from a valuation standpoint to separate the two companies. then you have two separate investments for employees and for recruitment. it is said that disney doesn't

necessarily own the cruises but they manage the experience retail is one of the businesses doing everything together when maybe they shouldn't be. >> bob, are you convinced? >> the only question is this sachs has not many stores, right? how many do they have, 60, 70? >> that's right. >> macy's must have 700 stores >> this have fewer than macy's, right. >> we are talking about ten times as many. >> that's right. and for many, many years, of course, macy's has been working along with other retailers to bring the two operations together obviously macy's started with the physical footprint, then created this digital experience. then they had to figure a way to bring them together. so what you are doing is sort of reseparating them, but keeping that consumer layer intact i agree, it sounds really challenging, but people are trying to convince me that sachs has figured out a way to do it >> yeah. >> in the beginning, yes, it was about value creation, but now it actually makes an awful lot of sense from a business perspective. >> so -- >> by the way, big volume today in macy's again for the second day. we're going to do probably 35

million shares they did 50 million yesterday. it normally does like 16 so somebody is playing the story for sure >> we have to go chris, the final word on the way out. would you buy macy's ecommerce business if they spun it off >> i wouldn't. i think they're late to the game i like what courtney is saying, i understand it. that's what the market wants you to do so they're trying to respond to market demand but i don't think it plays to their strengths. >> interesting we love you for keeping it short. thank you for everybody for joining us today, with a brawl over the future of macy's. still ahead, the energy crunch in europe and asia not just boosting traditional players like oil and gas stocks. we will tell you where investors are piling in right after this

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>> reporter: hey, kelly. momentum behind uranium stocks after years of investors largely overlooking the space. this comes down to what some believe will be nuclear power's vital role in the energy transition spot uranium prices topped $50 in september for the first time in september first time since 2012 according to data from usc, and investors are taking note. the north shore global uranium mining etf and global x uranium etf are two funds that track the space. both up more than 20% for october. together, these two funds have seen more than $1 billion in inflows this year. the biggest winners this month are australian micro cat names of bannerman energy and vemi resources. some of the larger players are also seeing gains. now, part of the recent rally has been thanks to retail investors with uranium jumping on social platforms. new data from a tracker that

tracks retail trading shows in the last few weeks retail traders slowed their buying. the firm said this points to institutional investors as behind the most recent leg higher kelly. >> we have talked about nat gases and prices come on down it is nice to be in person finally. nat gas and oil, is the crunch lessening at all as we are going into the winter months >> right now weather is the name of the game, and everything will depend on how the winter weather turns out. what we're seeing is what is happening in europe and asia is pointing to a need for base load power source, and that's something like nuclear solar and wind are great, but they're intermittent they can't just be called upon at will. nuclear is the only viable option, but, of course, a lot of critics really don't like nuclear. >> and the u.s. is a tough country to make it work. great in france, but here a little bit tougher slog. pippa, great stuff as always pippa stevens today. you can read her story on the uranium names but going to

cnbc.com/pro vivid seats going public via spac in a deal with horizon. up next, we will talk with horizon's chaianndrm a ceo todd boehly about where he sees opportunities. back in a moment your strateg.

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♪ welcome back, everybody. billionaire todd boehly's eldridge investment has strong comparisons with berkshire hathaway, but their focus is media, music, technology and sports and gaming. some key businesses include draftkings look at these names. cloud nine, rolling stone, epic games to name a few. joining us from the milken conference is todd boehly along with our brian sullivan. brian. >> reporter: thanks, kelly again, those are the ones we know there's a spac today, horizon acquisition picking up vivid seats today, today is the first day. todd, part owner of the dodgers with a big game today, and the lakers, who have a big game tonight. you have your fingers in everything, todd thanks for joining us. >> absolutely. >> reporter: so what are you trying to build with eldridge? i look at the pieces i get them separately. what is the whole connection

>> ultimately it is a holding company which makes a diversified pool of investments, and, you know, so we're permanent vehicle that, you know, is myself and one partner, and our goal is to make good investments and keep compounding. >> reporter: i can say it definitely leans entertainment, right? we talked about investments in draftkings the vivid seats deal, by the way closing today at horizon >> thank you very much. >> reporter: you own golden globes, you will redo it and thank you because it needs to be redone you will modernize it. what is the entertainment side of this for you? because we are here in beverly hills. >> l.a. is a great time. i don't know if you have been to the new sofi, but l.a. continues to up its game and we love premium content. taking over the role as being the interim ceo of the hollywood foreign press, and they're going through a great reform process i'm speaking to a lot of the publicists about ways we can better the show and better the

process, and, hopefully, they're listening because i feel like some of it feels like they're in glass houses. >> reporter: make it more inclusive. you are bringing back more inclusive. it seems like a dated industry >> we have new membership and we have 21 new members that are all diverse. it was dated but it had really bad governance so it couldn't change they had to have a crisis and it couldn't change so they had to have a crisis. >> from an investment perspective, i'll call this the everything rally because everything is up in price. some people don't seem that concerned. you're a buyer you've been a net buyer of a lot of things, including this hotel we're in by the way. you're not worried about value wass being stretched >> we're spending a lot more time originated investments. finding things at the ground floor and helping them grow. our job is to get into it early. find something that has a unique story. and being able to execute against it we knew the business very well

we have reorganized our ticketing when we were at the dodgers and vivid was a brand we worked closely with. if you look at the other marketplaces out there, vivid's at a 40, 50% iscount >> how did somebody, what did you see that clearly somebody else missed something. >> we had good alignment because the existing shareholders rolled forward so they're not monotizing their stake now we have a completely unlevered balance sheet. we created it, the second quarter was a lot better than we expected we bought down our purchase price over a turn because of how strong the recovery was in the second quarter >> so you're betting big on the consumer i'm out here in california i'm a chargers fan if i want to check my golden nugget or draftkings or fan dual, i can't do it. i'm geo located because there's no sports gambling here. do you see a day where sports

gaming, the sports book is maybe not 50 states, but close >> i wouldn't see why it's everywhere ultimately, it will become a competition and if you don't have products people want, they're going to go to different places but i think every state will come to the realization, it's good for their entertainment >> when you look out at the macro economy, coming out of covid, you are heavily, you're flex jet, you've got your vivid seats, your draftkings, sports teamsas well is there anything with employment, the economy, covid, anything you see that makes you nervous about the american consumer and gdp the next 12 to 18 months? >> listen, no one's ever able to predict that's the thing that knocks everything sideways there's always some type of event that occurs. you don't see anything now there's a big debate whether

it's going to be a trillion dollars, 2 trillion, 3 trillion. how much is coming hopefully they get that approved that would be tremendous for the economy. >> not worried about the inflationary effects when everything is already high in price. >> a lot of this is supply chain issues we have to work through a bunch of stuff as we recover from the great stop, right? the whole machine, our earth, stopped for 18 months. now it's got to get going again and it's going to be bumpy but i think there's no reason that growth shouldn't be embedded in everything because the consumer's back and wanting to spend >> well, listen, speaking of that, you've got to get going. kelly evans husband, buehler on the mound, an afternoon game starts in about 20 minutes better get out there >> this is a big day but we've got buehler on the mound. >> hopefully it's not like that. good day

kelly, you can tell eric i'm pulling for the dodgers as well. flip his hat inside out. >> got to get down there is it my imagination, or are you getting hoarse after this week >> i was at virginia tech. we've got howard marx in about 15 minutes >> got to try to sneak out to that game. brian, really appreciate all the great work you've been doing a win for the banks on capitol hill today the changes democrats are making to a proposal that will impact millions of americans come tax season

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at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. welcome back senate democrats are altering some key parts of their proposal aimed at recouping billions in

lost tax revenue >> kelly, democrats are raising the -- under when it would have to be reported to the irs. as little as $600 could have triggered those new reporting requirements that would be some massive pushback from banks, consumers, even moderate democrats. so today, they're increasing that to $10,000 and that doesn't include wages or social security janet yellen tweeted that this new plan reflects the administration's strong belief that we should zero in at those on the top of the income scale who don't pay taxes they owe while protects american workers who do republicans though are still railing against this plan no matter what the threshold may be >> it's a stupid idea that i hear from iowans all the time that they don't want the peering

eyes of the irs snooping on them the middle class is going to be hurt as a result of this >> the banking industry has been fighting this tooth and nail so kelly, today's move just shows you how tough the politics of this proposal really are >> so, ylan, say somebody is a house painter and doesn't report the income if they have more than $10,000 coming in and out of that account in more than a year, would they now be detected >> if they are not having that income reported, then yes, they would fall under this new threshold. this is an annual amount not transaction by transaction, but how much money is going in and out of your account every year republicans say this is a massive overreach by the irs of course democrats say this is just one small piece of information, two small pieces of

information, in flows and outflows just like interest income or wages are already reported >> how much money will this new version raise? >> we don't know the details o f that yet we know that the original version would raise something like $400 billion. >> thank you very much for that reporting today. that does it for the change, but we're just getting started around here. "power lunch" begins right now indeed, we are, kelly. welcome to "power lunch. here's what we've got for you this hour. two power players. first, oak tree's howard marks he'll tell uswhere he's findin opportunity right now. and amc entertainment ceo, adam aron the company embracing its meme stock status we'll ask the ceo what