expensiive sneakers ever sold. >>do you think this is a bad sign for new york in the long run? >> it is not great when any industry that used to be only in new york spreads out it is not greatfor new york. >> now they have this option instead. it really is a fascinating glimpse into it robert thank you for bringing it to us. our robert frank that does it for "the exchange," every. "power lunch" begins right now good afternoon, everybody. and welcome to "power lunch. we've got a busy hour ahead. here's what's on the menu. chipotle, for one. higher prices for food and delivery they are not turning away customers. digital sales are up, profit more than doubling the ceo will join us to discuss his strategy for the months ahead. plus, new threat a shortage of magnesium could threaten the global auto

industry it is a key ingredient in aluminum, which is a big percentage of today's cars and trucks what's the impact going to be on ford and gm and others a new report has light on this emerging risk. the next frontier, trading baseball cards going digital and venture capital, kelly s pouring in. >> going digital i can't wait to see what that looks likes. the dow is up 62 points. the outperformer the s&p down by nine the nasdaq, down 150 points, about 1% this, of course, the flip side of higher bond yields which we are seeing globally and higher inflation expectations in particular now let's look at snap, posting its big u.s. one-day drop in record after reporting that apple's new data rules are weighing it's even bringing facebook down 5% today intel sliding 1.9% -- i'm sorry, it's getting worse down more than 12% this after

the ceo warning profits will come under pressure. earnings released last night the weakness seems to be contained. the semietf is down 1% today and let's get down to mike santoli who has more from the new york stock exchange. >> the broader market, as mentioned about the s&p trying to quarantine those kind of isolated trouble spots that you mentioned. doing a decent job of it this is over the last ten days steady upward path not only day to day, but intraday things firm up over the course of the day. clearly giving a little bit of clearance to those people who thought it was a decent low in early october. even though it is choppier and earnings season pulls the market in several directions at once and clamps down on index volatility look at the economic below the

surface equal weighted etfs. industrials and consumer discretion father doing very well this month. consumer staples and health care really not doing a whole lot so that's still telling you, transports are up big today. it tells you that the market is positioning for a decent reacceleration of domestic economy, whatever that might mean for the fed and for inflation down the road. look at the two-year note yield. you know this very well. it has been flying this is over the last year or so it has gone pretty much vertical the market is rushing to price in a couple rate hikes next year the persistence of inflation and the fed having to move their feet about their stance on it is getting this moving. longer term yields come in big today after a big move this week >> mike santoli. our next guest says he expects s&p returns to slow just a bit into the end of the year and the start of 2022.

but he says there are still ways to invest in this environment. let's chat with hue johnson. welcome. good, as always, to see you. i guess your thesis basically is that both the peak economic growth for this little mega cycle that we are in and peak earnings growth is behind us for now. am i understanding you correctly? >> yeah, it is -- yeah, it clearly is, tyler, we had big numbers. in the second quarter, 6.7% gross domestic product when you look at the numbers for earnings for example, this year, about 49%. when we look at 2022, what we are going to be seeing is something like % year over year earnings growth for the s&p 500. and then 2023, we'll probably see something closer to 6% so we are seeing the peak in growth rates i think that's going to get reflected in the kinds of returns we are going to see in stock prices so i've got the stock market really coming down a little bit,

about 3%, between now and the end of this year and only up about 2% to 3% between now and the end of 2022, and 9% between now and the end of 2023. now, that can change and that can change if we get much better earnings numbers there is a good chance of that it has been the story of this bull market. continuously better earnings numbers. but i don't think it is going to get a lot berm i think we are going to be in a low return environment. >> let's say we buy your thesis here, that returns are going to come back closer to the norm, that earnings are going to still grow, but decline from historic growth numbers where is -- how do i make money in that kind of market where is there cash to be made >> yeah, it's going to be testify, tyler obviously the first thing you have got to do is pick the right sectors. and mike santoli said something pretty smart or perceptive when he was on just a minute ago.

he said the first thing you have got to do is pick the right sectors. he mentioned a couple of them. but materials, industrials, they are performing well today. they are going to perform well if we have an ongoing bull market, which i still think we are going to have. and then i would also add consumer discretion father and technology those are economically sensitive sectors and the types of sectors that perform well. the first thing you have got to do is get the sector right those are the four sectors i would focus on then the next thing you have to do is enhance your returns by having a good dividend yield a. good dividend yields in those sectors is always attainable there is a combination that you can do you can go beyond that by working with private equity if your investment adviser can steer you in the right direction towards real estate. that's a little bit beyond what i am talking about what i am talking about, sectors right, dividends, that's the way to do it. >> you are like a kid who brings good toys to the party you always bring stocks' names

let's name a couple of the candidate parties that you like. it seems like a couple of them are also positioned to be beneficiaries if and when the supply chain troubles recede >> i think the supply chain troubles, and they are pretty big, are substantial now are going to recede over the next six to eight months. the labor shortages are going not going to recede that quickly. but the supply shortages will. companies like magna, that's in the automobile -- basically related to the automobile business if we start to see the semiconductor shortages start to get cleared up, and i think we will see that, we will start to see better numbers out of the automobile sector. magna is going to be one that's going to benefit from that and of course union pacific. it's not necessarily -- it's really a transportation, obviously, company if we see the supply sort of

shortages or the backlogs, the real problems in, say, the ports start to clear up, you are going to see union pacific start to do more business. i also mentioned caterpillar, but caterpillar is much more related to the infrastructure agreements that we hope to see coming out of washington. >> right. >> so those are the kinds of companies that are going to do well in a low return environment. they are not very exciting, tyler, but i think they are going to do well and they have got attractive dividend yields. >> i would rather be good than sexy hue, thank you, appreciate it man. >> you are welcome >> thanks, kelly. >> as we just heard, supply chain is one of the reasons why some strategists expect lower returns. and the problem is evident at the nation's warehouses. jane wells is in lynwood, california, to explain >> kelly, it's really weird, this warehouse has capacity it should be more packed right now. so check out our drone shots and let me explain what is happening. as trucks come in and drop

containers off from the port and then the boxes are supposed to be picked up by other trucks which come in to take them inland but these boxes which used to be turned in a day are sitting here up to a week the reason why there is still plenty of space is because the trucks are slow in coming. as we were just talking about, there is a shortage of labor across the board not just of truckers, but here inside the warehouse >> we have been struggling because of covid we would ask for labor to come in, and even if we asked for, let's say ten, 20 people, we would get three. >> reporter: demand for warehouse space is so high that rents are going up, the cost of labor is going up. that means the cost of everything you are buying is going up. >> there is a labor shortage throughout the process you know, we need more workers in the construction trades, to build our buildings, our customers need more warehouse workers to work in the fulfillment centers. >> reporter: but building

warehouses is a great business right now. it would be even better, except -- wait for it -- supply chain issues duke realty is rating up to 11 months right now for steel >> what kinds of goods are in the warehouse right now, jane? christmas gifts? >> they are starting to get christmas stuff. but there is still some halloween stuff in here, kelly and i'm told that means it will not make it to the stores by october 31st >> wow which in that case means it's what -- i mean, it thrown out? >> next year discount. >> discount. exactly. jane, thank you so much, we really appreciate all the reporting you have been doing on this issue. warehouse reits have had a strong year. ing a industrial up 40%. polaris higher by 45%. coming up, chipotle hiking prices to offset higher costs and customers are paying up. could sales have been even stronger if chipotle wasn't

facing a labor shortage? the ceo joins us in an interview you will see first and only on rbz. later, facebook, amazon, microsoft, alphabet all report next week. they are names beyd onbig tech our trading nation team will tell you what they are watching.

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welcome back,r, a record quarter for chipotle, the company reporting sales of nearly $2 billion, its most infer a single quarter

also up 22% from the same period a year ago the stock rallied 38% over the past year. it pulled back about 3% today. let's bring in kate rogers who has a first on cnbc interview with chipotle's ceo brian niccol >> thanks for being here. >> great to be here. >> last night on the earnings call pricing power came up a ton. the company has it, consumers are willing to pay more for meals. we don't know how long the environment is going to last but how much pricing room do you have looking ahead. >> the way we look at it for our business is how strong our value proposition is what we continue to hear from consumers is they love our integrity, the customization, the speed, the access. the fact they can still get a chicken burrito or bowl exactly how they want with the quality of culinary and ingredients, we

believe we have plenty of pricing power to use at our discretion we will use it when we need to, but obviously, we would prefer to really keep our value proposition as strong as possible i think we have demonstrated we have been smart and judicious in when we choose to use the pricing. >> you have done better than competitors in terms of not allowing the current labor challenges many are seeing impact sales or slow them down what will it take to keep that momentum moving ahead? raising wages again? using technology what do you see. >> i think it is going to be a combination of a lot of things one of the things we consistently hear from our folks and the new employees we have is they have our purpose, love our culture. the idea of food with integrity. and then that with a approach to these jobs where we are such a growth company we are going to be building 3,000-plus restaurants they can really grow with our company from a crew member to a

restaurant manager, ultimately to a field leader, or multi-unit leader i think that really distinguishes us obviously we want to continue to make sure we have the best when it comes to benefits and we are providing the wages that get people excited about joining our company. but i think the other differentiator is just the purpose and our growth that our company has. >> you just mentioned some of the stores you are going to be opening. you mentioned last night testing out smaller format stores with chipotlanes only are your highist margin transactions given changing consumer preferences that evolved over the last year and a half how much more do you see the smaller format stores being a part of the company? is that the future in the months and years ahead? >> it will be a piece. what i see as the future is what we demonstrated this quarter 75% of the restaurants we opened

had these chipotlanes. it is order ahead and pickup you will continue to see us lead with the full chipotle experience that is enhanced with this which i boat lane discoccasion or access point. then we will use it as an opportunistic format that we can use as a seam restaurant or a fill-in. we believe it gives us more head room on restaurants to grow in the future. >> two quick questions are you able to find enough workers to keep all of your restaurants open and staffed as long every day as you will like, number one and number two, since you mentioned it, what percentage of your sales in store are actually digitally originated in other words from a phone with somebody using the app >> two great questions we have been very fortunate to

really be able to get our restaurants staffed. of course we still have some restaurants where we are working hard to address the issues for the most part, the majority of our restaurants are staffed and i have got to give our teams a lot of credit. they have done a phenomenal job of hiring, training, and retaining employees. so we are in a really good spot. obviously we will continue to work hard because this is one of the toughest labor environments i have ever seen and we want to continue to attract and retain the best people. a lot of work is still going to continue in that space we have the flexibility of running our digital make lines as well as our front line which give us flex where we can keep the restaurant open for full operating hours at a minimum with our dining rooms and flex our digital business it is a hidden gem that we have discovered after we have been able to grow the digital business to your second question, 40% of our business is thousand done

digitally. the majority of that comes through the app. >> right. >> one of the things we are excited about is the piece that's growing the fastest in our business now is the ortd ahead and puckup, whether you pick up of the in the restaurant or threw the which i boat lane, that's the transaction that's growing at the best clip. >> my son until recently worked at one of your stores. he said at their location it was 70% digital. that's interesting >> i am glad to hear he's an employee or a former employee always good to have alumni. >> last question, on loyalty you have 24.5 million members, grown that in under three years. why is that growing so quickly is it mostly young people? how are you hanging onto these customers? why is it working so well? >> one of the things that's been really amazing is obviously when we had to go to all digital, it gave people experiences with our digital ecosystem. one of the key pieces of that puzzle was the rewards or

loyalty program. we are now up to 24.5 million people the team has done a great job figuring out how to communicate with the people who joined the program so it is engaging not annoying it results in influencing behavior which we see more through frequency of purchases the other thing, since we launched the rewards exchange where it allows you to basically get rewards with lower points versus just waiting only to accumulate points to get a burrito. we see that having the greatest impact on our light and newest users into the program so we are really excited about the composition of the program and the way that we have enhanced to it really drive ongoing purchase frequency with new and light users. >> i think we will leave it there, brian niccol, thank you for joining us, congrats on the quarter. great to hear from you >> thank you we are proud of the results. take care. >> kate, thank you very much brian niccol thunk as we'll.

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i'm kristina partsinevelos here is your cnbc news update. in wisconsin, a highly anticipated non-partisan election audit found in evidence of widespread fraud. the report says wisconsin's elections are quote safe and secure in minneapolis, a police officer has been charged for a deadly pursuit that killed a motorist brian cummings is being charged with manslaughter and criminal vehicular homicide cummings was pursuing a stolen vehicle at nearly 80 miles an hour when the crash occurred. subways in the nation's capitol will run with sharply reduced service through at least the end of the month the local transit authority removed about 60% of the system's rail cars following a

derailment last month. it is working on plans for repairs before the cars can go back into service. in indianapolis you have a house reduced to debris by a violent explosion. six people, including a firefighter, from injured. all have been hospitalized authorities say the explosion may have been sparked by a cigarette. >> that is amazing boy, amazing nobody was fatally injured there, at least so far as we know thank you very much kristina partsinevelos. a check on the mark. the dow may be cruising towards another record high. we don't know, of course you have got to stick with us until 4:00 we will find out then. s&p with modest losts, .1% off just four points the nasdaq taking a little bit of a nose dive, down about three quarters there is crude west texas up again, like a bubbling crude up 1.33% at $83.61 the bopped market. the yelled on the ten-year is

lower. that is putting a winning streak in jeopardy. rick santelli tracking the action i guess it is a winning streak if you want yields to go up, rick >> yes, if you are short the marketing price and yields is going up it would be a winning streak if you are looking for the long to go down, not so much. this chart starts on the 15th. we will go back six sessions every session has higher yields. we are up eight basis points on the week, down five on the day hence looks like the streak may be broken. if we think about 30s minus tens, that spread is called the knob many believe that it has predictive values. here's an eight-month chart of the knob on top offive-year note yields. the flatter the knob gets -- right now it is the flattest it has been in almost two years we see upregard pressure on rates. that's something to pay attention to in terms of inflation, it has been the buzz phrase for many months now, but, boy, the markets are really showcasing it here's the five-year break even

comparing five-year notes to five-year tips, treasury inflation protected securities this started in record keeping in '02 approaching 3% it hags never been higher. the ten-year break even, a little bit higher than 2. %. the highest level reflecting inflation since april of 2011. kelly become to you. >> 2.6, almost 2.7%, rick, thank you. ahead on "power lunch," higher fuel prices are also hitting corporate earnings it could get worse we will run you through who is most at risk supply chain woes affecting automakers semiconductors, and now aluminum wl scoran weildiuss when "power lunch" returns

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higher fuel prices are hitting earnings. >> supply chain bottle necks, labor shortages, and now energy cost weighing on bottom lines.

oil surged 70% this year and is now trading around a seven-year high that means rising input costs for companies that depend on the commodity airlines are highly sensitive to oil prices americans' fuel costs rose 68% last quarter year over year, united were up 56%, and delta's jumped 55% it could be about to get worse delta envisions q4 fuel costing between 225 and 240 per gallon, up from the average 194 last quarter. that price rise goes straight to the consumer higher jet fuel prices leads to higher ticket prices we are hearing similar things from railroad names. both csx and union pacific reported fuel costs that jump more than 70% in the last quarter.

jb hunt saw a nearly 60% rise in its fuel costs rising energy costs can take longer to show up in reports from industries that aren't wholly dependent on commodities. this is especially true since the latest round of quarterly results is backward looking. and it is up more than $10 since. ultimately, companies higher costs will be passed on to consumers that means, guys, less money in your pocket. >> those are really amazing numbers. look at the fuel costs, there, kelly, on the airlines. >> yeah. >> and then the trucking this is why you have to wonder whether some of this inflation, pippa, is going to be stickier than we have been talking about for the last year. >> yeah. it is certainly a question that's top of everyone's mind. we are starting to hear this from not just these particularly sensitive areas of the economy we are hearing it more and more from cpg companies that also have to pass on those higher costs. basically, if you are moving anything, you are exposed to

this this is the story we are going to be talking about for quite some time. >> scarcity economy in many ways the auto industry is also facing a new emerging head wind, a shortage of magnesium. it is a vital components in aluminum china accounts for 86% of the global supply, that supply is slowing as the power crunch in china forces factories to shut down our next guest wrote about the impact on automakers, brian johnson comes to us from barclays great to have you. who is most affected by this, everybody? >> really, everyone is affected. there is about 400 pounds of aluminum in the average car made in energy america, similar probably in europe, although smaller cars ford is probably disproportionately exposed they relaunched the ford pickup truck, america's top selling vehicle based on an all aluminum body it probably has 900 pounds of

aluminum good news. it replaced 1600 pounds of steel. but an aluminum centric vehicle. >> what's the next step if aluminum is in short supply? structural i think it is the most energy intensive melts to smelt or whatever the verb is. there is going to be an issue not only if power prices stay high but in general as we try to see all these nations producing less emissions does that mean higher eye aluminum prices? is there any replacement. >> the worry now is not just price, it is actually supply. >> sure. >> china supplies about 86% of the world's supply of magnesium. you can't make aluminum for automotive grade aluminum without mag niece sum. a lot of credit to my colleague in london, amos fletcher who covers the mining sector there the government in china, because it was hitting its co 2 and pollution caps, basically shut

35 of the 55 magnesium factories. it is a dirty, carbon coal-intensive process at one point, production was down by 40%. now it is down up to about 72% of the first half average. but that's still not enough. china consumes most of what comes out of the mines in china. so exports are still down over 60%. >> sure. >> with the way the supply chains work, compounded by all the issues you cover day-to-day, that means if the magnesium can't come in from china to aluminum smelters in north america there is going to be crunches in supply of aluminum >> as you note, we might have bottles instead of aluminum cans if the shortage continues. you still have automakers toa buy.

even tesla, for nimble on the chip issue, couldn't get around the aluminum supply issue. is there anybody who can get aluminum from u.s. sources is that out of the question? >> the aluminum comes from u.s. sources but the mag need yum needed to make it an alloy comes largely from china what we are looking for on the ford call is some assurance they have lined up supplies at least for the first half of 2022 price of steel is up threefield since 2020 aluminum is up 6%. paradoxically, even though the f-150 when it first came out had higher costs aluminum versus steel, now the steel trucks are more expensive in terms of input cost we are less worried about the impact on the cost side of the

equation than can ford even make these trucks more broadly, will it be the next thing that crimps auto production in the first half of 2022. >> we had a chiron up there that said magnesium exports out of china are about a third of normal once again, explain why they have come down so much and forgive me for being a wild haired conspiracy theorist, but it feels like maybe china is playing with us a little bit here >> i'm not going to speculate on that the reports coming out are that because of caps in either carbon emissions or just regular pollution in china d there is the winter olympics of course coming up, that this particular region ordered 35 of the 35 production facilities to close down so that can obviously -- and there is some indication that the chinese government is aware, because it not just china -- not

just us, but china needs aluminum to build their cars it may be easing but obviously the first place it is going to go is into chinese factories not us factories >> brian johnson, appreciate it. >> thank you. coming up next, a growing conflict of public interests thefederal reserve on abouting its members from owning individual stocks. does the problem extend beyond the fed. we will take a look. should policy make of rs corporate executives be allowed to trade stocks? we will debate it next

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welcome back, everybody, lots of buzz on wall street over the fed's new rules banning its policy makers from owning stocks some are questioning why it took so long and whether it will result in a bigger crisis of confidence from institutions more broadly let's bring in bethany mcclain great to see you again. >> you, too. >> why did this take so long here at cnbc, as you probably know, for general staffers, we operate under very strict trading restrictions like those that have just been put in place at the fed. >> right prospect you stunned to find out

those didn't exist already that to me was the biggest shock, that the rules had to be put in place because they didn't exist previously although in truth we should have known that steven friedman resigned from the new york fed of a it turned out he was trading goldman sachs during 2008, the year they became a bank holding company. really, we had a heads up that this was going on, and the general counsel at the time said steve had followed all the rules. >> right. >> looking back how did we not say, wait, what. >> what are the rules? what are the rules and why are they such a piece of cheese cloth here? what does this do to the confidence we have in institutions it wasn't that long ago that we were looking a the same thing at committee members on capitol hill who were learning stuff behind closed doors, that they were then able to go out and make hundreds of trades on and we find that out

what does it do to our confidence and the feeling that there is one set of rules for them, and another set of rules for me >> i think it's really problematic. one of the analogies, to me, is gavin newsom going to the french laundry and eating indoors and maskless at a time when he was telling all of his constituents, when restaurants were closed to indoor dining and he was telling constituents not to venture inside without a mask on rules are forthy, not for me i think it is problemate knick this moment in our country's history. we need to have trust in insti institutions they have been undermined in many ways over the past decade i just -- i wish the people inside them were smarter and understood how frayed the whole thing is even if something is technically legal, don't do it don't take advantage right now it is a dangerous time i think it is a dangerous time for the fed in particular because some of the costs of the

fed policy over the past decade, ultralow interest rates, asset purchases in terms of widening wealth inequality and blowing a big bubble in the market are starting to percolate as well. it is not just institutions broadly. all this stuff just weakens our trust. >> i think that's exactly it there is a wealth divide and an income divide in the country to begin with the policies of the fed and the tax policies may or may not have exacerbated that wealth gap. here along comes another thing where you say, well, the people who know on theinside, as you said, the rules are for thee, but not for me. >> yeah. i think it's -- it's dangerous i'm shockedever time i find another piece of this. i was actually shocked to find out it was legal for members of congress to effectively insider trade. >> yeah. >> equally surprised to learn

this when you have -- i went back and looked at some of the southern district of new york and some of the language around their crackdowns on insider trading that have taken place and how reprecomprehensible it is for anybody use privileged information in order to make money for themselves at the expense of other investors in the market and i think my goodness gracious, the amount of hi accur hypocrisy in our system is ridiculous it is problematic. >> we were talking about a d.c. analyst about this issue of congressional insider trading. he said, you know, that it doesn't galvanize the public, the idea of kind of coming up with legislation that would finally ban it and put an end to it do you think that's really true? i mean, there's got to be some congress person out there who could gain huge sort of personal

name recognition if they would champion some legislation like this i don't see how people couldn't at some point have to pass it. it seems way overdue >> yeah, i find it hard to believe that that's true even if it is true, i think that it's sort of insignificant let me explain what i mean i find it hard to believe it is true because i think if it's cast -- it depends how it is explained. if it's explained in a way of people being able to do things that make them money and if you did a version of the same thing, you would ends up in jail. i think the unfairness of that is palpable. i also think even if someone were inclined to slug that off, members of congress all suck, they are all corrupt anyway, it still isn't what we want it chips away at our confidence and trust in our lawmakers in a way that might be subtle, and every little bit of damage adds up. >> it makes you cynical.

breathes cynicism towards those institutions as you pointed out earlier, it is not just the institution of the fed or institution of congress has suffered in recent years. it's science it's the justice system. it's -- education system all kinds of these institutions have been -- i don't know. >> compromised. >> burnished or sullied. >> sullied or whatever, right, bethany. >> i was going for compromised. >> compromised good word. diplomatic nice. >> thank you, i'm not always diplomatic you must have gotten me in a good mood today. compromised, yes right? and we can't afford that right now. we want our institutions to be better than we expect them to be, not worse than we expect them to be. >> right >> and we want people to exist the way the rules are written to make the system as fair as it can be rather than the way the rules are written giving advantage to those who are already advantaged i just think it's -- i think it

is problematic at this moment. >> compromised, bethany, is a very writerly word you are one of the best writers in a writerly world that i know. >> totally agree you know, i would love the see someone like aoc or somebody pick up the mantle, make this the cause. >> yeah. >> get rid of it for congress. and the fed is accountable to congress how can the congress hold the fed accountable when it doesn't play by the same rules. coming up, our trading nation team will make down the names to watch outside of the mega tech thames we tcwah all the time like apple and microsoft. stay right there power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade

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welcome back it's not just the stocks in the trillion-dollar club like apple reporting next week. roughly a third of the s&p 500 on deck to report outside of technology making up $10 trillion in market cap like mcdonald's, ford sh starbucks

with a crucial read on the consumer and supply chain concerns boar rice slausburg and soprano sapuru delano, i think you have your eye on visa. tell us why. >> i do. i think there's a couple reasons why. from the fourth quarter, you look at the consumer that's the focal point and looking at the increasing volume, payment transaction and the operating metrics that are important to visa and rebounds looking to the holiday season. there's a dip and a reason why some of the stock pulled back over the last quarters with a bit of the dip in the operating metrics but they look at the total adjustable market and the top line should rebound. they're still 85% of the transactions done globally in

card i think if you look at it fundamentally they're a minimal cap x. high margins i think investors should look at the stock. there might be an opportunity there. >> boris, you have been digging through the names tied to the economy. industrials, autos, like 3m set to report on monday. >> i think the consumer is the key here with a disconnect of consumer sentiment that's dour with the supply shocks and consumer behavior which is i think better i'll look at coke, 3m all to see how strong the quarter has and more importantly what their forward guidance is because if it's strong it's resilient for

the market going forward. >> thank you for more head to the website, follow us on twitter back to you. >> thank you. after the break, old fashioned trading cards making a comeback but with a digital twist. we'll explain. >> and now the latest from trading nation.cnbc.com and a word from our sponsor.

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you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire welcome back just about everything is going digital. baseball cards auctions are being live streamed. julia boorstin has the next frontier for the old fashioned collectibles julia? >> thanks to the surge of live stream sport card sales, the sports trading market is projected to grow from $14 billion in 2019 to nearly $100 billion by 2027 according to verified mark research the largest live stream shopping platform is whatnot raising $225

million with a valuation of $1.5 billion. they focus on sports cards, pokemon and their sales grew 200 times between july 2020 and july 2021 >> i think the driving force behind it is e-commerce just continues the grow and obviously covid set that off and i think the second thing is that people are now turning online to connect particularly during times when human connection is tough stuck at home and not traveling as much. >> loop raised $15 million to focus on just cards and says it's done tens of millions of sales and it's raised 15 million so far and not just startups cashing in on the latest card trading wave

a biggest auction house said the index that tracks sales of thousands of cards up 1,000% since 2008 kelly? >> i mean -- all right if it's happening it's happening. what about nfts? >> i think that they play into this and people never thought about sports cards and then got into nft for the sports nfts and then, wait, i might as well get back into the sports trading cards so i think nfts led people back into the tangible analog things. >> we hear there's a second facebook whistle-blower to go with the woman that appeared on "60 minutes. >> we don't have the name yet but alleges that facebook allowed hate and illegal activity to go unchecked

back to you. >> obviously the company themselves hinted more could be coming on twitter this week. >> julia, thank you. >> thank you for watching "power lunch. get the digital baseball cards. >> have a great weekend. >> you, too. "closing bell" starts right now. happy friday, everybody! welcome to "closing bell." i'm sara eisen at the new york stock exchange another mixed session on wall street trying for an eighth win in a row and the nasdaq also pulling back dow positive still near record levels. >> holding up reasonably well. i'm mike santoli in for wilfred frost today. tech stocks are tumbling today after earnings shocks. we'll have more on the moves in a moment american express helping to boost the dow after record car