increased velocity in the supply chain. >> if you could require all the trucks to be full that might go a long way towards moving things around orrin, thank you for joining us. we hoke hope you check in soon. >> thank you for having me. >> that does it for "the exchange," everybody busy hour. "power lunch" begins right now >> here, kelly s what's ahead on "power lunch." a new wave of cyber attacks. russia believed to be behind the aggressive campaign, ignoring u.s. sanctions that target the i.t. supply chain. we will look at the risk for companies in the security stocks that are in play plus, the facebook papers, the latest black eye to the social network the stock falling over the past month. will the bad news extend to its earnings plus crypto for the masses, mastercard will now let banks offer crypto credit and debit

cards. is this a turning point for the bitcoin economy? here's where the markets stand. the dow is up 75, about 25 off the session high its underperformer the s&p 500 broad market is up half a percent the nasdaq composite is up almost .9 right now. tesla surges to a trillion dollars market cap today 995 gets you that trillion dollar market cap a. huge move higher in the last couple of sessions, believe it crossed over 9$900 billion just a few trading sessions about the oil etfs are up at 52-week highs you can see there. the solar stocks are also jumping. bloom energy, plug power, and sun run are the winners there. bloom up 37% it. has been a volume time the name

the last few years material names participating today as well with freeport, nucor and u.s. steel moving higher dow up as well, copper miner mcma ran up 4.5% beyond meat is sitting this one out. it continues to drop as it loses another 1.3% today following its 12% decline on friday. it is now down 24% this year. we begin this hour with a new cyber crime campaign hitting corporate america. watch as i navigate. microsoft warning that russia-linked hacking efforts are large and ongoing. eamon javers is on that story. it comes as online sports betting business steps up its cyber security measures. contessa brewer will bring us those details. and we will talk with an analyst about the companies aiming to protect against these new age cyber attack

eamon javers is who we begin with. >> microsoft found another wave of attacks by russian intelligence just like the devastating solar winds hakt last year. that was conducted by the russian svr intelligence service. this is another hack targeting retailers and service providers. the idea is the russians hack into the suppliers' product and when they sell them to corporate and government clients the russians get there, too. >> their customers include government agencies, think tanks, academia, the same sorts of organization has the russians do like to gain surveillance of as they conduct their espionage operations >> microsoft says between july 1 skps october 19th of this year they informed 609 customers that they have been targeted 22,868 times by nobelliyum, microsoft's name for this group which has been identified as the russian

svr. microsoft says this is an increase in the nation state hacking they observe all of this coming as bad news for the biden administration which has been talking about the apparent lull in russians ransom wear hacking since the biden/putin smumt in geneva over the summer but the activities described were unsophisticated password spray and phishing, one of the mill police stations for the purpose of surveillance we already know are attempted every day by russia. u.s. government response here minimizing slightly the significance of this clearly, the russian espionage campaign is going gang busters. >> what are the russians after >> you heard tom wurt from microsoft there saying they are going after academics and government clients it is all the same sort of spy stuff that the russians have been going after since the days of the cold war. it is u.s. capabilities,

intentions, whathood leaders are talking about. that's what you want as a super power to gain insight into your rival. this is the spishl spy versus spy thing, it is now taking place in cyberspace. >> thank you very much. now to contesta and the gaming industry's growing cyber risk what do we know? >> kelly gaming companies are paying pour than double for cyber insurance. it is considered such a risk in online betting that start-ups are having a tough time fanldsing policies sharp rank told me it needed coverage to complete a huge deal with another gaming company, but 189 different insurance companies turned it down phenol lesion it secured a policy with a boutique firm but with a kanch cap of $1 million the head of marsh's gaming practice says shooins insurance are scrutinizing these gaming companies as high-profile targets. >> it is deep dives. the insurance companies are

contracting with third party companies to scan your systems and find out what your vulnerabilities are. they are taking a very proactive approach in discerning whether or not you area good risk to them. >> but the ceo ofsmarkets says gaming is just getting a bad rap. >> there is so much money that flows through the system but i don't think that sports betting is an unusually good target compared with any other e-commerce business that deals with lots of cash. >> he says getting the tech and the security right in the first place is more important to him than insurance because of course a claim can't make up for reputational damage from a hack. one reason he is highlighting that owning the tech is so important. some insurers won't cover gaming

at all. >> you put your finger on it it's not just the gaming sector. if you look at a typical form get cyber insurance for any kind of company good luke trying to decipher it. it's littered with acronyms. it has insane metrics you have to come up with. it is obvious companies don't want to exposure because the risk is so high. i wouldn't be surprised if the gaming industry has difficulty procuring it. >> marsh told me in august, overall, cyber security insurance was up 112%, august compared to last august. and when you look at what the insuresers are looking for, it's not just, hey, do you have two-factor authentication in place. they are doing a deep dive to look at these systems to see where the vulnerabilities are and to make sure they are not taking on more risk than they are willing to pay for.

>> exactly that's a great angle contessa thank you. is the risk to corporate america greater than ever? will the u.s. government retaliate against russia our next guest is a former nsa and marine corps hacker who now helps the corporate world identify vulnerabilities he has operations in 20 countries and clients include three of the fortune top five companies. david, welcome i don't want where to begin. let's begin here we hear and see on advertisements all the time about cloud, the cloud, the cloud, it's coming, it's here, it's vital but is it vulnerable >> that's what we are starting to see when you start looking at the capabilities of these atta attackers -- it is not just what we are seeing with the nation state disrupters we are also seeing the ransomware hackers increasings because they are making so much

money. managed service providers -- the things that keep me up at night as a cyber security professional are the supply chain attacks it is not a one to one attacking a jbs or a colonial pipeline from a ransomware perspective. you are talking about attacking hundreds of thousands of organizations all around the world from a single source or a single hack. the russians have had a lot of success. there are early launch was a number of years ago when they targeted you canian tax software then solar winds the united states is looking at this is saying this is an opportunity and cloud is the next evolution of attack for news i think of alphabet, amazon, microsoft, are they the point of vulnerability or are others who feed into cloud sort of secondary

contractors to vulnerability. >> all of the above. solar winds, they had success because they hacked into microsoft, vmw, cisco. it was credit myselfed from a third party's secondary company that happened to have access their infrastructure this is how we designed our security systems we trust our third parties we use salesforce and amazon for shipping goods we bolt in other computer systems so we can advance faster in technology versus developing it ourselves, which hasworked well for us right now. but models that we came up with around this weren't designed to handle the level of threats that we are seeing today from these adversaries. et cetera not just nation states anymore. we saw with kasaya where we had evil, a ransomware group targeting thousands of customers. it is not just a high sophisticated level of adversaries like russian and

china. it is also ransomware which is alarming >> the cloud is a target for hackers because they get wide access and a drove of data is it time to move past the cloud? time to get out of the cloud all of this is an effort in some ways for the necessary computing power required by this pooling of data, but are there other example where is people can do more to protect themselves by unplugging, moving more on site? whatever it is. >> we have to look at what information and what trust factors we have. be sensitive around the types of information. it is our intellectual property that allows us to be a competitive organization on the private secretary auto, we shouldn't put that intellectual property in cloud infrastructure we need to look at other ways of securing as well, and you have to examine the threat model and

build multiple layers of the fence across it. we have had a lot of success approaching it that way versus blanket trust against a third party cloud provider >> let me get one quick final question and answer from you, david. are we doing nothing are we fighting back we hear about the attacks on us. why aren't we or are we attacking them >> two things keep me up at night. the supply chain is one. and our capabilities from a cyber war perspective are recently number two. china launched an attack across world calls halfnium it was a force saying we are not scared of the united states we are losing from a policy perspective, geopolitically. that's that keeps me up at night. we need to go on the offense.

>> you took the word out of my mouth. i was hearing you say, defense is not enough. we have got to have some offense. >> 100%. >> david, thank you. >> appreciate it. shares with tesla earlier today crossed the trill dollar market cap for the first time. on heels they have crossed over $1,000 per share they are up 10 -- almost 11% today. again, the catalyst, you could cite the hertz anounsment that they are going to add 1-000 tesla cars remember, this company did for five for one split last year this is $5,000 if you want to think of it from that point of view. cyber security stocks are on a tear then selves joel fish bind is an analyst at truist securities which published saying not surprisingly spending on cyber security is continuing to rise joel, these stocks have been

volatile in years past, not always great performers. what's different now >> obviously, the environment has reached a critical level, both from a government perspective, but also a company perspective. there is no silver bullet in security these stocks are next generation security stocks. they are fighting the adversary. they are remediating the threat environment. we think there is more to go if some of these names? we are going the work on joel's audio there, but, again, as he's saying, the stocks moving to the upside now is a reflection of eamon's reporting and . >> a big week for tech earnings. our next guest says there is another stock that's just as important to watch he will name it next. plus, tesla, the ultimate

moment stock after breaching $1 trillion in market value should you buy it? should you own it? our trading nation team will give you their perspectives. as we head to break a look at regional banks and consumer discretionary etfs, both hitting intraday highs in today's session.

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on the spending bill, comments from senator joe manchin saying an agreement is possible as early as this week our next guest says he's watching a few stocks beyond this week's big tech earnings. let's bring in the chief investment strategist at jd montgomery can we start with the d.c. spending headlines a time of inflation and d.c. spending suggest the market is not spooked by hyper spending. is the market's reaction rational to you, that it is encouraged by the prospect of this bill, basically >> i think there is a couple of things at play there, kelly. one, if you look at, say, the tips break even inflation curve it is inverted while it moved up literally across the board, so it is at break even rates for the ten-year today stands at 2.66%

elevated at the same time the short-term rates are. that suggest has the market is not spookds by the fact that more spending is going to beget hyper or higher inflation. second, the market doesn't like uncertainty. whatever comes this bill, the fact that we will see something more tangible evidencing what is being agreed upon so the market can digest then ultimately adjust to it is a long way of putting something that's been/ing out there as a known unknown into the known known category i think that's what the market is taking away from what joe manchin mentioned. >> curious as we look at the valuation levels of the dow and s&p at all-time highs in general, do you say embrace the broad market do you say get selective on sectors? do you get even more selective on particular stocks here? what would your advice be. >> kelly, both, we think there

is still room for the stock market to continue to grind higher obviously, we are at valuation levels that are not necessarily rich but not overly demanding. we are pricing just under 21 times for what is expected next year, 2022, and about 19 times for what's out there right now, for 2023 and given the lack of alternatives, the equity risk premium afforded to stocks at those valuation is actually fairly compelling. in addition to that, though, within the marketplace we continue to believe that this rotation that we have had back into some of the somethingcal economically sensitive sectors like energy, financials, perhaps industrials catching a bit as is basic materials is indicative of the fact that market losses in the third quarter show a reacceleration of growth in the

fourth quarter and first quarter of 2022 that should cycle the defensive and defensive growth counterparts >> thank you thank you. let's get back to more on tesla. trading above $1,000 valued at more than $1 trillion. we are not kidding we are not making up these numbers. phil lebeau is on the story for us phil, these are memorable milestones in the history of tesla. >> huge milestones, tyler. i think what stands out is not just that tesla has grown so big so fast but this is an automaker. and i think if you had brought up the idea of a trillion-dollar market cap for any automaker people would have scoffed at you. for some perspective here -- generally speaking, toyota's market cap has been somewhere in the 260, $270 billion range. i don't know where it is today and then you have got volkswagen, that's usually about

160, $170 billion range. that gives you some perspective on how much bigger tesla's market cap is than toyota and folks having aon, which, by the way, are the two largest automakers in the world, far bigger than what tesla is. tesla's annual sales this year, they might hit 48a -- sorry, 885, 890,000 vehicles. they were 490 last year. by comparison you are going to have both toyota and volkswagen, they are going to be well over 8 million vehicles, 9 million vehicles, somewhere in that range depending how much things have been dialed back in terms of product because of the chip crisis bottom line, this is the automaker that really has moment up not just in terms of market cap but in terms of where the industry is headed when it comes to electric vehicles. >> is there -- we had a guest on last week, kelly, you may remember who it was what had a

price target of 42. >> it was 150 on tesla. >> 150 on tesla. >> yeah. >> and i guess the question is, at these levels, how, if the at all, does the investment community view this stock as overextended that's question one. >> right. >> question two, what does tesla do for an encore they have thot got battery technology, they are building factories, they have got hot cars they have first mover vng advantage. they have stylish looking cars is there next move to go in and buy another automaker to increase their sort of market share? >> no, they won't by another automaker. that's not the way elon musk has proposed growing tesla they are growing it organically, opening their own factories, with their technology. if you are tesla, where would you think about buying another auto make center what advantage

does it bring you? he has already shown that he can disrupt markets around the world on his own i say his own. the company can do that as a whole. and in terms of the valuation, tyler, i mean, that's the big conundrum not only for investors, but for analysts as well if you are an investor and you are bullish on tesla, you do not look at this company as simply an automaker you look at it as an energy play w energy storage, with solar whether it is also a company that down the road, you know, does it continue to grow in terms of autonomous vehicle technology that's the great idea here if you believe in that, full self driving technology -- there are people who pay a subscription for full self driving technology even though these vehicles are not autonomous the idea that they are autonomous, that is the hope down the road. if they are, and if you find swrb who is willing to pay that on a monthly basis you say this

is it, this is everything i need for the future that's where you look at the revenues potentially growing incredible amounts that is the idea behind saying i think this stock can go far higher adam jonah saying it will go to 1200 he's not valuing this company as a traditional automaker. he sees it as far more. >> look at what is happening with hertz today they came out of bankruptcy in june, appointed the former ceo of ford last month his first move happen to place this massive $4 billion order with tesla look at commercial that's tom brady. >> smart move is this expensive move, phil they have outlined, hertz has, a $6 billion turnaround plan we are seeing key elements of it the equity today, if i am looking at the right chart, htzz, this is a 20-something-dollar stock and it is being cited as the catalyst

for driving tesla over the trillion dollars market cap. >> this is a smart move for both companies. from hertz' perspective, yes, the stock moved higher as it came out of bankruptcy and mark fields understands the auto industry, what hertz has to do but is there any momentum when you talk with regular investors about hertz the business have you ever heard anybody say like the auto rental industry right now. he has created the momentum, with this move to buy 100,000 tesla model 3s there is buzz out there. now some customers will say i want to use hertz because i want to rent a model 3, i want to see what it is like for a weekend, for a week you have a chance of trying it right now. there were our ways, touro and others where you can do that as well for tesla, this is a no brainer. 100,000 vehicles being sold to hertz.

and as i said earlier today, they are the kleenex of electric vehicles, when you mention electric vehicles you think of tesla, this is more confirmation of that. >> phil, thank you very much interesting conversation on tesla. after the break, energy stocks on pace for their best months since february, soaring oil and gas prices of course helping those gains. plus a supply chain ho-ho-hold up. will ups be able to keep up with holiday shipping demand? "power lunch" will it right back and that's no joke it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight.

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. welcome back i'm rahel solomon. here's your cnbc news update at this hour. four years after the unite the right rally in charlottesville, virginia, turned violent jury selection is under way in a civil trial. nine plaintiffs argument the vie lesbians was premeditated. they want compensation the ralliers say they are exercising their right to free speech. in new york, thousands marched to protest a covid maxine requirement by city makers who are supposed to have

their first dose by monday to avoid being put on unpaid lead. joe biden is in new jersey today promoting his build back better agenda and supporting the governor as he seeks re-election. fans of afghanistan's cricket team displayed the country's pretaliban flag ahead of a match against scotland. even though visa issues delayed the team's arrival, the game went ahead. markets are in the green again this monday afternoon. the dow up about a quarter of a percent. the s&p 500 up half a percent. and as we scale the mountain the nasdaq may be last on the list but first in terms of returns today. higher by more than 1% bond yields moving lower prices higher, though, still before 1.6% for the ten-year as you will see there in just a moment yes, i promise rick santelli is tracking action

at the cme hey, rick. >> up deed, the starter maturities, two year, three year, five year, seven year, higher yields and a bit lower. the longer are unchanged, the ten-year at 1.63, and the 30-year bond is higher in yield, a bit of curve steepening. looking at a one week of tens and understand that the high water mark so far even though yields bounced down off of 1.67 resistance several times open the chart to march of '21. 1.74, is the high water mark of march of '21 that was the highe yield close going back to january of '20 bund yields, intraday, up to minus eight. today. last week, .07 finally, we look at the break

evens, we have been talking about them a lot ten-year break evens are hovering just below 3.7. that's the highest since 2006. five-year break evens are now over 3%, the highest on record, as we continue to monitor that ponder this, that reverse repo parking lot of cash nowhere near a record today of $1.4 trillion. we are also talking about $1.6 trillion of new spending if manchin goes along with it all of that is fuel for a future inflation fire. >> triple f. rick, thank you -- fif, oil prices are rising getting back to 2014 highs and trading is closing for the days pippa stevens is at the commodity desk. >> breaking above $85. jumping to a seven year high of 85.41. present crude hit three year high of 6.70 tight supply is driving this market crude couldn't hold its highs and pulled back during the

session. pointing to upcoming talks between iran and the eu as pressuring rice pricings, brent crude at 34.74 wti down to 83.52. wti is coming off its ninth straight week of gains that's the longest winning streak since 2015. and that is putting major pressure on gas prices the national average for a gallon is now 3.38, the highest since september of 2014. according to aaa they know prices have gone up every day over the last 27 days. americans are paying 20 cents per gallon more than last month and $1.22 more than last year. some calling for $100 oil prices, prices a the pump could be climbing more. the company again in hot

water s. management now the biggest risk to the stock? the trade ahead t nbe, xtofheumrs

welcome back, everybody. facebook, as you surely know, embroiled in controversy it is showing up in the stock price. shares recording losses over the past five weeks. so what can investors expect when the company reports earnings after the bell today? the managing director of internet equity research at oppenheimer. he just reiterated an outperform rating on facebook and has a $405 price target. welcome. >> thank you. >> what are you expecting in terms of the earnings? do you expect any of the controversy that's been swirling this company in the last month basically to show up in those numbers? or is that controversy come too late for that? >> well, you know, i can talk to you about what we had expected and kind of where most -- but the reality is after snap chat reported last week those expectations went well we spent the last two business

days talking with our clients as to will facebook face the same type of issues as snap have they done a better job? we think they have we think they are more prepared. we can talk about the differences in advertiser base, et cetera. obviously over the weekend there were more kind of i guess emails or the announcement of emails shared and plenty to talk about. however, i think investors are basically focused on, you know, what's the revenue outlook and how much does the company expect it to slow down given that snap is looking for a meaningful slowdown. >> for those who haven't followed snap as closely as you have and obviously the parallel is very interesting, give us the cliff notes persian on what happened at snap and why you think facebook is better insulated against a towel snap like snap. >> sure. basically, you know, snap has done a phenomenal job basically building an