>> dr. j >> cvs, scott. i bought the 87.50 calls that expire friday because of unusual activity at higher strikes, i like this one going into the end of the week. >> sounds like crowdstrike is you, josh brown. >> yeah, new record high for crowdstrike today. what more can i say? top billing. >> yep all right. good stuff, of thanks everybody "the exchange" starts now. thank you very much, scott hi, everybody. i'm kelly evans. ahead on "the exchange," another day and another set of record highs for stocks with earnings season off to a pretty good start, consumer confidence bouncing back. the housing market is still strong and a potential stimulus deal, do the markets have a green light for the remainder of 2021 plus, the debut of our earnings exchange today. as the season ramps up we have the action, the story and trade ahead of three key reports tonight. microsoft, alphabet and robinhood. with the white house looking for ways to pay for the

multi-trillion dollar spending lan, treasury secretary supports an unrealized capital gains tax on billionaires. why our expert says it is the worst ever dom chu is back with the numbers. >> i'm back and here with a vengeance because the markets overall hit record highs again the two indices we want to watch are the dow industrials. they get their gold star because they hit a record high the s&p 500 hit a record high as well the nasdaq is within stone's throw of its own record high, but still less than a percent away from their even with the down market today. the dow and the s&p, those levels being retaken here. it doesn't seem like so loan ago we were talking about the woes in washington, d.c. and possibly the collapse of evergrande, the chinese property giant again, markets shrugged those off for the time being we'll see if it sticks kelly mentioned, robinhood, microsoft and alphabet with irngs after the bell i will throw out amd which comes out with earnings report after the closing bell today

the reason it is important is because it has been one of the leaders of the big semiconductors over the course of the weeks here. nvidia, advanced micro and xilinx, which floated to the red today, all hit record highs in trading today. all off session highs but still semiconductor trade is strong here, not at record highs but close. watch that particular trade. maybe the stock we all want to keep watching whether you are long or short it, you have to pay attention what is happening with tesla now the fifth biggest component of the s&p 500 it didn't go into the index that long ago, still, though, it is down half a percent, well off the session highs. at one point it hit its own record high again and that market cap still stands, again, kelly, at the 1t level, over $1 trillion at one point around 1.06 trillion, closer to the 1 trillion mark. we will keep an eye on the tesla shares at some point it may take a rest but for now it is at record highs. back to you.

>> what a move that has been, dom. thank you. better than expected data this morning is helping to push stocks to the records he talked ab about. consumer confidence bounced back unexpectedly in october. september's home sales hit a high joining me, welcome to you both. jim, you see more bullish catalyst for stocks? >> i'm sorry yes, i do. you know, effectively i think the data has been good and in what we are seeing right now is a pretty steady chain of better than expected data the surprise indices are actually starting to rise more aggressively, you know, at least in the fourth quarter. the third quarter i think was a little bit of a reset, but now what we're starting to see is the data really start to come into its own i think once we get past the third quarter slump, i think the fourth quarter and even looking into the first quarter as supply chain issues hopefully get

better, this should be a positive going forward >> and i realize i'm going out of order here, so my apologies kevin, what about you? when you look at bullish catalysts ahead, what is still out there if we are now to the point of rattling off all of the good news? >> yeah, kelly, with the inflationary pressures likely to stay present for the foreseeable future, perhaps even be further exacerbated by additional fiscal stimulus and delay in monetary tightening, we have a positive outlook for the balance of this year for u.s. stocks, although there may be more short-term bounce and volatility along the way. one area we particularly like is dividend-paying, value-oriented equities those same stocks that maybe benefited by the ultimate passage of an infrastructure spending bill that should benefit certain cyclical sectors that are generally more value oriented >> you have a couple of names, kevin. you have chevron, cummings and sysco. do you think these are stocks people can own for the nextst

months >> all three are in the most recent series of the morning dividend yield select trust and touch upon the industry, the industrials and technology sector, all value-oriented sectors. each pays a dividend above 2.5% and has an attractive p/e of 16 or below value-oriented, dividend-paying u.s. stocks, we believe will not only provide upside positive ten hal for the balance of this year but into 2022 as well. >> jim, i want to talk about your views on the dollar which i think you called in a secular bear trend it could worsen inflationary pressures across the economy, couldn't it? >> it could. the issue is how quickly the dollar declines. i think the dollar declines but i think it is somewhat slow. i think it has a lot to do with china. i mean, you know, effectively china is taking a very different role in the world. they're trying not to be the export engine. effectively, they're not as much of the price setter for goods as they were in the past.

they're trying to create internal demand and we think that the dollar is going to decline somewhat slowly but we think it is in a bear trend. in fact, if you pull up a chart of the dollar versus the cny, what you will find is that the dollar has been in a pretty strong bear market versus the chinese currency this does have some potential to increase inflation in the u.s., but what we also have to recognize is that inflation is expected to really drop off pretty quickly starting in the second quarter of 2022 because all of the, you know, reopening base effects start to really become hard to beat and effectively the year-over-year comparables for inflation will show it starts to decline. essentially that will be somewhat of a -- i guess somewhat of a ballast against higher inflation prices versus a softly weakening dollar. >> we can hope so. no hyperinflation from you two today. we appreciate it, guys thank you for joining me kevin mon and jim carron on

these markets. we got the results of a two-year bond market. i want to go to rick santelli. what can you tell us >> you know what, it wasn't so bad. the problem with this particular auction, and let's go through it, 60 billion of two-year notes kicking off 183 billion of supply this week it got a little messy right at the end, right a few seconds before 1:00 eastern. the yield at the dutch auction point, 481 it really was trading closer to 4.8, .48 plus. we give a demerit for that it was quite strong, the best since may of this year 58.1 on indirect, very strong. of course, those were foreign entities 22.3 on direct you know, that's like mutual funds, insurance companies that's the strongest since november of 2019 the dealers take less than 20% so i gave the auction a b-minus. it really wasn't a bad auction, and i think the best way to look

at this is we continue to see the short maturities are getting a bit nervous as they try to reflect not only the taper, which is more of a long maturity issue in my opinion, but when the fed is actually going to start raising rates. you know, the home price index today was the highest going back to 1985 on the s&p core logic, a year-over-year change. we are continually seeing pressure on these shorter maturities i think it was interesting that ten-year notes and 30-year bonds made their low-yield high price around the auction results so we are seeing some buying in the longer data treasuries today. >> all right good stuff, rick thank you so much. rick santelli out in chicago well, an fda panel is meeting right now to discuss whether to recommend pfizer's vaccine for young children meg tirrell is here with the latest hi, meg. >> reporter: hey, kelley so the morning was spent by presentations from the cdc, the fda and from pfizer, all about the vaccine safety and efficacy in kids ages 5 to 11

remember, it is a third of the dose given to kids 12 and up and to adults. there was also a lot of discussion about the risk of covid itself to kids to try to help with that risk/benefit analysis the fda in its briefing documents saying about 22% of overall cases since the pandemic began have been in kids under 18, 8.7% in kids ages 5 to 11, the ages being discussed today more recently they say it is up to 39% deaths of kids under 18, 691 for the entire pandemic, 146 in this age group they're discussing today. so those numbers, while a lot lower than for adults obviously still tragic, and the reason a lot of folks say a vaccine is needed for kids. now, the main issue that they're talking about today is this risk of mayocarditis, the rare effec that can come with the vaccine the fda presenting an analysis showing the benefits of

vaccination outweigh the risk of myocarditis in multiple scenarios. that will be the focus of advisers this afternoon. we are in a public comment until 2:00, then the discussion continues. the voting is expected to happen sometime between 3:00 and 5:00 remember, kelly, this is just a recommendation to the fda. it then makes its own decision and then it goes to the cdc next week kelly. >> tell me about myocarditis, it is so scary because it involves the heart and others say it is not that severe and it goes away what are the risks of it and can it be mitigated if people are aware, i guess especially for boys, that those risks might be higher >> yeah. the presentations this morning really made clear it is a risk that is higher for males than females, and it seems like it is higher in people in their sort of high teens and then, you know, can kind of go up through their 20s. there's some discussion that the risk could even be lower for younger kids, but it is just not really known because the trial was just a few thousand

participants even in the 40,000-person trial they really didn't pick up this risk the good news is that when they see myocarditis as a result of the vaccine it seems to resolve itself and it is typically more mild than the hospitalizations that come from covid itself. so all of that is being discussed today. but, of course, it is something scary and they're taking it very seriously. >> remind me quickly, meg, after we get the vote then what is the sequence of events in terms of the timeline >> so the fda will take the vote into consideration, make its own decision on emergency use authorization. that could come any time really within the next week before a scheduled cdc advisory committee meeting november 2nd and 3rd, next week. they will give their guidance if the fda has given the green light, and then the cdc director will sign. if all goes well we could see kids getting the vaccine as soon as november 3rd or 4th >> wow thank you so much. we really appreciate it. meg tirrell with the latest there. still ahead, a new and

controversial tax proposal is gaining momentum and the target audience is already looking for ways to dodge it we have the details and fall-out for the public markets ahead plus, don't miss our debut of earnings exchange bottom of the hour, really halfway through the hour we will look at the action, the story and trade for some of the biggest names recording results after the bell today we are back in a moment. this is "the exchange" on cnbc (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

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♪ welcome back, everyone a new tax proposal targeting billionaires is gaining momentum on capitol hill. robert frank is here with the details and how some may already be trying to avoid it. robert. >> reporter: kelly, we are still waiting on the details of this tax proposal to raise revenue for the social spending plan democrats are looking at a special billionaire's tax. it would apply to marketable security, so that's stocks or bonds, rather than owing a capital gain tax when the stock is sold. the government would tax the annual increase in a stock's value or unrealized gains regardless of whether you sold so elon musk, who gained $120 billion in paper wealth this year but hasn't sold any shares, he would actually owe a tax of $30 billion. illiquid assets like property or art would be taxed retroactively

after they're sold billionaires with an annual loss would get a credit against future taxes as you mentioned, accountants and tax attorneys for the wealthy already looking at potential loopholes here some are looking at trusts to hold their stock, others looking at perhaps putting assets into their foundation or gifting to charity to put them under that $1 billion threshold some are looking at shifting their wealth away from stocks and public assets to private assets that wouldn't face this annual tax kelly. >> all right, robert thank you, robert frank. our next guest says the new capital gains tax could not only be ineffective but calls it one of the worst ideas ever. he is nyu sterns school professor. it is good to have you back. this one you say takes the cake. why philosophically is it such a departure? >> if you think of -- writing really bad tax laws, here is

what you would do. you would focus it first on very few people and those people have the capacity to fight back this law does that you would tie it to something that moves a lot capital gains is the most volatile of bases to base taxes on you would make it really difficult to compute and pay the tax, which is what happens when you have unrealized capital gains, and you might even steal taxes from other tax sources that you already collect now, this bill accomplishes all of those in spades i mean it is almost perverse in terms of -- as i look at the description, it is not quite fair because the actual bill is not in front of us if i were writing bad tax law, this is what it would look like. >> so why do you think they're looking at going this route and is -- do you think there's -- again, i use sort of the word philosophic. is there a philosophic effort to make this step because it might start with billionaires but ultimately be something that all americans would have to reckon with >> you know what

it is not just really billionaires, right, because if you are a billionaire with $20 billion in inherited assets and that stays roughly around $20 billion, the tax doesn't affect you. if you are a billionaire who takes $2 billion, builds a company and makes it worth $20 billion, the tax is coming after you. you might as well call the steps the bezos/musk tax let's face it. it is a tax that builds on the dislike people have, not just for billionaires but for billionaires who become richer quickly over the last decade so from that perspective it is not even consistent in who it punishes it punishes a subset of billionaires, entrepreneurs who started businesses, and it lets loose or leaves alone billionaires who got inherited wealth where nothing is happening to their well. >> you know, there has been a tweet about how his preference would be to do something that eliminates the step-up basis saying, in other words, why should it be the case if i sell

an asset i pay capital gains but if i pass it to an heir and they sell it, they don't. do you think that would be a fairer, a better, a broader way to raise revenue >> it is a more direct way to do it, right. get rid of that free step-up you get in inheritance, but congress never seems to want to take the direct way part of the reason for that is when you have a paper-thin majority you have to go with desperation plays, and this wreaks of being a desperation employ this is the only thing they can get through. so from that perspective, there are lots of other things you could do you could raise rates, you could fix the inheritance problem. this is the worst possible way you could have taken and they managed to do it >> it is interesting to me as well to watch what is going to happen with salt, which could end up benefitting a lot of the sort ofwealthy that fall just below this step even while it appears like there's a big crackdown underway i'm sure your students ask you about this all the time. if they said, okay, well, if the

country wants child care, if the country wants paid leave, if the country wants these various redistribution programs and you want that wealth to come from jeff bezos and elon musk, is there any other way to do that >> no, i think that there are -- there are other ways to do it, but each of those ways comes with opposition from a subset of the party that needs to vote for it so i think while you can map out more direct ways, you can raise rates, you can -- you know, the inheritance tax fix is an obvious one, but you can't start with a fixed spending amount and then ask, how do i fund this because that's not the way the world works. that would be like my looking at a $5 million house, deciding to buy it, finding that i can't afford it and asking you, what is wrong with you, why can't you come up with a way of my buying this $5 million house? maybe the answer is that you can't do everything you want at the time that you want it and that you might have to find compromises that work with the

revenues you can actually raise today. >> i thought you also made a good point that in some ways would this be a pull-forward of future sales and therefore actually undermine its ability to raise funds over the long run by moving it into the present. some really interesting points here i appreciate you joining me to talk about it. thank you. >> thank you from nyu sterns school of business still ahead, breeze airways is taking delivery of the first airbus as it expands service to underserved markets. we will speak with the founder and ceo about their expansion plans, push for market share and return of air travel this defense stock on pace for its worst day in over a year and a half as they reassess their five-year business plan. we will tell you what is behind the move low he next eps me movi. even after paying for this. love you, sweetheart they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it.

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♪ welcome back to "the exchange" everybody. dow is up 20 points. the dow was up 150 at session highs so well off those levels some of the movers this hour include has borough, which is jumping after the earnings beat and revenue came in line supply chain disruptions cost it about $100 million and lost toy orders in the quarter. still expect full-year revenue to rise between 16% and 17%. lockheed martin we teased going into the break, on pace for the worst day since the pandemic since march 2020 they raised the eps forecast but slashed sales outlook for this year and next year they're reassessing the five-year business plan given supply chain issues, shares down 13% today. they have an agreement to deliver fewer f-35 fighter jets to the u.s. government shares of draft kings are climbing after the company said it is scrapping plans to buy

uk-based betting sports. it was reported last month they were making a $20 million bid for them, and sales have been drifting lower since you see the reversal playing out today. ahead on "power lunch we will speak with one of the newest members of the nbc sports family, former super bowl champion and mvp drew brees, joining us to talk about the rise of sports betting and why he is taking a stake in points bet. now to rahel solomon for a cnbc news update. hi, kelly. here is what is happening this hour. heavy rain and intense winds barrelling up the east coast today and into tomorrow. new jersey governor phil murphy warning residents to brace for power outages and severe flooding >> the entire coastline from sandy hook to the delaware bay is under a gail warning until

2:00 p.m. tomorrow, wednesday. given these winds, no one should be surprised if they lose power. college enrollment saw its largest two-year decline in 50 years as more students opted out amid the pandemic uncertainty. the number of undergraduate students is down 10% from two years ago. on the news tonight, usc halting all fraternity social activities after allegations of sexual abuse that's tonight at 7:00 eastern and buckingham palace says queen elizabeth will not attend the global climate conference in glasgow. the queen is following advice to rest instead however, she participated in a few virtual engagements from windsor castle these were the 95-year-old british monarch's engagement this week after she was ordered to take time off >> 95 and ordered take take time

off. my hero. yes still ahead, big tech with reporting this week. what to watch for and how to trade after the bell including ab, croft and robinhood. it is the debut of "earnings exchange" next

♪ welcome back to "the exchange," everybody 30% of s&p 500 companies reporting earnings this week that includes the five mega cap names with weightings accounting for nearly a quarter of the index. what better time to launch our new series "earning exchange?" they all report after the bell let's kick off with microsoft. the street expecting revenues around $64 billion, eps just shy of 24 bucks a share it it rallied 60% this year as they continue to outperform on reopening. digital ad revenue, growing cloud. let's bring in deidre bosa and also a contributor who will give us his trade on the stock. deidre, here is the thing. it is a clear winner but question is when do they shift from the driver's seat to taking a bit of a breather? >> right when you say clearest winner, it has been all year. it is by far the best performing faang and expectations are very high this quarter.

everyone is asking in terms of internet businesses -- excuse me, advertising businesses, how are the apple privacy changes going to effect. we saw snap and facebook, but, of course, google and alphabet in a different boat. it is likely to benefit from the privacy changes because advertisers tip ally going to facebook and snap, they see the targeting has been compromised guess what google has a lost of first-party data those cookies operate a lot differently on google search, so it is actually likely a winner sure, youtube mobile ad business may have suffered a little, but search business is expected to really have accounted for that and make up for that potential loss google, kelly, is likely to continue to be a winner here, at least according to the street. >> i see dalano nodding in agreement. you are right. it is tesla everybody is talking about, so i imagine it has to sort of benefit the company. >> 100%. i think just as deidre

mentioned, kind of the biggest focuses are the global ads they mentioned last quarter that has come back from the year prior obviously. i think that's a big indication there. if you look at the growth in youtube, which doubled last quarter from the year, same period year before, it is up to over $7 billion in ad revenue on youtube. i think it is a very big thing to look out for coming to earnings they also mentioned platform engagement grew in adults, up from 73% to 81%. think looking at the business overall the structure, ad revenue is coming back, especially when you look at search google and alphabet was one of the big benefactors from ee opening because travel search surged at that time. i think it is an indicator why the stock is well. i'm still long and holding i think the downside risk is doj and what may happen as far as mna, but i don't think it is a big risk >> as you said, just hold it into earnings. de lawn owe, stay there. deidre, we appreciate it let's switch gear and talk about

another mega tech name outperforming the market microsoft. its shares up 40% after they come off one of the best years in recent history. they announced a $60 billion buy back, and they have focused on cloud which has seen revenue growth slow over past few quarters let's bring in josh lipton to discuss. i think slowing cloud both is not the narrative people want, unless it is slowing >> bulls are confident with sach ya' nadella is on the call he will talk about strength and momentum in his key businesses including azure, his cloud computing business which goes head-to-head with aws. the street still thinks you will see probably 48% revenue growth for azure year over year of course, we want color and commentary about office 365 as well other themes and trends to listen for on the call is teams, which is microsoft's chat and

video conferencing app remember the last time they reported, microsoft said teams had about 250 million monthly active users it will be interesting to see if we get an update to that also that windows business, kelly, keep it in mind as well the new windows 11 operating system, windows still accounts for about 15% of the company's revenue even as it has transitioned to the cloud computing powerhouse, kelly. >> fair enough de la delano, i think of them facing a cliff more than google why wouldn't it be the case? >> i think there's a few reasons. the diversification of the business is a strong point for microsoft as we know, and we are obviously focusing on azure and cloud and how the intelligent cloud business can grow. i think we've seen a great rate of growth slow down a little bit. it is still growing at a fast clip as you look at a margin standpoint, they discussed how

they're pouring resources in the higher margin areas of the business as we saw maybe in the personal computing segment of the business there may be a slow down as we see the demand is outstripping supply because of the chip shortages they're having i want to look at some of the higher margin business segments and how it is growing. i think investors can stay long, perform well over the last year and i think it continues >> josh, a quick final word many we will get amd after the bell as well. we talked to chip analysts worried about overshipment in areas like pcs, not that it would affect amd that much necessarily. but how would you describe sentiment around the chip space and around the pc space right now in general is it still pretty strong? >> well, i think coming back to microsoft, you know, there's another theme we want to explore there with nadel on the call and the cfo when you talk about the pc market. analysts say it is strong but showing signs of peaking, especially at the low end. that's another question i'm sure nadella gets on the call >> any time we are talking about

investors. let's turn to robinhood, reporting second for as a public company, the monthly active user number is the key metric to watch here shares are off more than 50% from record high back in august. they're still trading around the ipo price which was 38 we're at 39 today. in their first release, robin hoold forecasted seasonal winds resulting in lower revenues and few funded accounts this quarter. kate rooney here i guess they're trying to set the bar a little low >> yes, they guided last quarter saying, we do expect a slowdown. analysts i have been talking to are really wondering what does a robinhood quarter look like without a viral event like gamestop you had it in first quarter, really the first time we got numbers for robinhood ahead of the ipo or dogecoin last quarter. it is up from something like 73% the same time the year earlier

wall street is now looking to see what does a normal quarter look like for robinhood, and a mix there of revenue whether it is equities, options is making up a bigger part of the business and, of course, crypto last quarter robinhood was looking like a crypto company. the other thing about the crypto business, we mentioned dogecoin, sort of the viral events and drivers going forward. analysts are a little mixed on what is the driver going forward. one analyst from jmp said to me, yes, there will be more viral events they are just impossible to predict though they say the mix between social media and stocks or cryptocurrencies is not going away by any means. that is still a tailwind for robinhood, but it is just you can't predict it who knows what the next viral event or meme stock or meme coin for that matter is going to be >> right you kind of want exposure from all of it to benefit from the pop outs you said you are long, but in the long term it is based on

economic classes >> i think kate hit it on the head volatility and price movement on the crypto side is so important in the business, i don't know how long it will stay as far as the risk standpoint. if you look at the price movement it is interesting we haven't seen the price moving up as cryptocurrency prices have risen over the past month. >> true. >> we haven't seen robin hoold act the same as coin base and some of the other names. but i do agree engagement and net funded accounts, monthly active users are so important here i think it will play the story in the long term i got in around 38, you know, personally, and i think a little bit of the stock steam has come out from the original ipo. but it is still, you know, actually performing better than the s&p over the time that it has been an ipo, but i think investors have to be looking at these trends because i think it is still a company that the story has not yet finished, kelly. >> delano, you make a great point about how you think the share price benefitting more from crypto than it has. do you as an investor want to see them double down in that

direction or should they leave it to the specialists in that space? >> i think they definitely have to when you are look inat the story of who is actually investing in crypto, obviously it is a lot of times big institutions, but if you look at their account type, the average account size the 5,000. a lot of times small investors, people not investing in large institution areas are investing in crypto. when you look at the age range of people investing in crypto, robinhood has to double down and be a player in that space i think for sustainability of the long-term business model, kelly. >> the estimates fortonight tell you a lot of the 300 million in transactions, they're expecting half of that to be options. about almost half of that to be crypto and only about 60 million dollars worth to be equities looking forward to what the company has to satisfy kate, thank you. our kate rooney will be monitoring that delano, it was fun. >> it was fun. thank you for joining me the major airlines not back to full pre-pandemic capacity.

we have an interview with breeze ceo david neeleman right after this ♪ ♪ ♪ ♪ ♪ ♪

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♪ welcome back, everybody. take a look at shares of walmart, which are dropping today. jim cramer is a seller in his latest investing club newsletter he wrote he sold walmart around 149, as it reapproaches its 52-week high. he bought it earlier this month believing it had more room to run, but with the recent runs he is taking some profits he owns about 3% in the portfolio. for more on his moves and trades, go to cnbc.com/investingclub or point your phone's camera at the qr code on the screen still ahead, jet fuel prices are climbing but one small carrier is making big moves. remember, you can catch the show any time, anywhere, by listening

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they did miss on revenues and daily and active monthly users were lighter than expected in an effort to reattract young adults to the platform the company is making a $10 million bet on the metaverse and will report the numbers on a separate segment starting next quarter. metaverse in its entirely could be worth at much as $82 billion in the next four years joining me to discuss is roger dickerman from digital artifacts. welcome. a lot of viewers want to know what is a hall of fame in the metaverse? >> so hall of fame has to do with digital art, and digital art is the newest medium of art and really comes to life in the metaverse with both framing concepts within the metaverse and then over my shoulder over here a framing concept on our very walls >> so let's talk about the metaverse. you know, there's alot of different companies who want their reality or their world to be the one that most people are in who is leading that and which ones exist right now and where

are people already making money? >> you're going to smile, kelly. how about nfts and blockchain technology they're proving out the concepts before our eyes. we see another couple billion dollar a month in the art market, but beyond that let's go to games let's go to play-to-earn blockchain gaming, speaking of daily active users, over a million active users a day, an $8 billion company go to artists again, i will point over my shoulder the artist that rhymes with duck render, he is building out his most recent project which involves crystals like these, cost over $30 million. that's one single artist >> it is beautiful behind you. i can see the hand holding the crystal. it is moving and shimmering. if i own something like this in the metaverse, whose metaverse is that and where is facebook in all of this? >> this is the most fascinating question, right. this is a land grab right now. we have smaller metaverse companies trying to pave their way like decentralland, for example, a nice call out there

>> light >> now you have those like facebook who see an opportunity, they see the writing on the wall, they see the billions of dollars, they see a way to own the digital assets in the form of nfts, now it is their turn. you will see facebook step into the center along with others like epic games which raised a billion dollars for their metaverse concept. now it is time for them to duke it out >> to people like you when you hear the facebook news kind of laugh and go, yeah, the boomer facebook company is going to get in on this i don't think so or do you go, absolutely they're going to come in and be able to invest more and make it better than anybody else's? >> that's the thing. they're so well-position we can laugh at this or that or the other, but at the end of the day they have okay lus, a vr technology that is ready and probably more advanced than other competitors. i didn't, there are other more ago aisle digitally native companies doing the metaverse thing but never scoff at a facebook coming into the market. >> i guess the question is has the world, a lot of this digital

technology whether it is literally the blockchain, bitcoin, even in the world with netflix and then tesla, has it proven there's a real advantage to being a first mover and when should we actually expect facebook's investments to bear out and be something tangible we can all experience >> there is an advantage to being a first mover, but in the case again of a company as large and well-capitalized as facebook, a second mover can do just fine as well. kelly, what was the second question remind me. >> when is it something we can all actually experience? you know, how are we going to do that is this primarily access as a video game, with a headset does it have anything to do with my mobile phone? >> so that's the question. this is actually going to move off of mobile, right it is going to be mobile -- internet was the last great revolution now we're about to step in further than that, so mobile ww web, yes, but vr head sets ultimately we will have to see. it is a long-game play people like facebook make this announcement and think 2022. this is a five, ten, 15-year

play to see it come to absolute fruition >> they're probably happy we're talking about this and not the metrics for the quarter and what is happening with the ad platform and their latest whistleblower. that's something roger, thank you for joining me today. >> thank you, kelly. >> roger dickerman is ceo of artifacts. coming up, airlines have gotten hit lately. while the majors work to recover capacity, one small carrier is expanding and looking for new markets. we have those details next on the exchange from

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welcome back business and travel are picking up and ticket pricing is strong, so is now the time to expand an airline? the founder of jet blue and breeze thinks so phil lebeau is here with the details. >> a big day for breeze.

in mobile, alabama, the company took deliver of its first a2-20. it was built at the plant in mobile this will be flying next spring with delivers of 80 planes that have been ordered by breeze. ramping up between next spring, now and 2028 take a look at the breeze network. you see a company that is primarily targeting underserved markets in the southeastern united states, but the plan is eventually, that route structure that you see is going to be expanding and expanding on a steady basis let's bring in founder and ceo of breeze joining us from mobile david, congratulations on the new a 2-20 give us a sense of how quickly you'll be feathering in others into your fleets >> thank you for having me on, phil it's a really exciting day for our company and for all of our team members you know, like you mentioned,

this airplane is going to give us reach and we're going to take one a month for the next 80 months and maybe 120 months. as they come on, we're going to keep adding more and more routes and for our current route system, the planes are decidedly like an hour and a half, no more than two hours these will be three hours plus, maybe four hours long range and almost exclusively in markets that have no competition we've proven that we can stimulate a lot of traffic in these markets and this airplane's going to continue that trend >> are you a little bit surprised at the way you've been able to stimulate traffic since you launched in may? obviously, you targeted underserved markets so you knew there were people who wanted to fly there, but when you see the demand that's been coming forth from some of these smaller cities, so to speak, has it surprised you? >> yeah, it has. because usually when you see a market that has maybe ten or,

five or ten people per day traveling in that market, we would expect a five or six we're seeing 10x, up to 20x in some markets so it's really incredible. you know, we started in may so we were late for the summer and then we got kind of the delta variant in september october factors are higher january july a smaller airplane and be flying on these inclusive routes but now we're going to go longer the thing that's interesting about this plane, we'll show you the interior, but we've got 36 first class seats in this plane. because of the two three configuration, made since to go two two. the upcharge, maybe 50 bucks it's a new dimension that makes sense. >> david, in your career, you have seen a lot of ups and downs for the airline industry certainly after 9/11 and then you had the recession in 2008

and 2009 how does what we've seen in the last year and a half with the pandemic and recovery, how does it compare to what you've seen in the past? >> no comparison there's been nothing like this anywhere, ever for the airline business at least in my career. because of the uncertainty, because of how long it goes on kind of the, all of the changes that have taken place. thank goodness we have vaccines. thank goodness, you know, people feel more comfortable traveling. thank goodness we have a really safe environment on board our aircraft for people to still travel safely. so big rebound in the summer and now we're seeing another rebound. people want to get out, travel, and see new places an they want to feel safe doing so >> when we talk to your colleagues in the industry, they said look, higher jet fuel prices are going to force us to raise our fares starting this fall, this winter and next year.

what are you expecting >> yeah. obviously it's a big component of every airline's cost. thankfully, this airplane burns so little fuel compared, 25% less so you know, actually, you could say from a competitive advantage, we're better off if fuel goes higher i don't like to see that anyways, but at least it buffers the rise in fuel prices. certainly fuel prices fares will go up, but fares going up or down is much more of a demand than cost as we've seen in the past hopefully the fuel prices will come down a little bit >> one last question, david. i have been flying quite a bit over the last few weeks and i've noticed the airports are super crowded. it's not a very fun experience right now. the flying experience. what are you expecting for the holidays is it going to be pretty

miserable for many people? >> yeah, i hope not. once we get through the stimulus period hopefully people will want to come back, go to work. i think these vaccine mandates going to cause a bit of an issue if they aren't extended. there's a certain segment of the population that's not willing to do that. so you know, you know, hopefully leadership in washington will understand that so we can get through the holiday periods instead of having deadlines that come on just before the holidays that really is going to be, make it tough for travelers, but you know, if i have to recommend one thing, go non-stop don't connect through a hub. that's what we have is non-stop flights. >> founder and ceo of breeze airways joining us from mobile, alabama. thank you, david on a day when kelly, they received their first a2-20 and they're going to be receiving more of those over the next several years. >> thank you so much thanks so david. phil, you make an excellent point. probably saw the story this

week denver airport held a job fair hoping for 5,000 attendees and got 500. investors aren't getting back into the stocks. jet blue down 9% flat on the year delta down 7% in the past month and one of only two airlines still in the red for 2020 and the worst performer is spirit. down 15% in the past month and lower today. "power lunch" begins right now what a great question by phil are holiday travelers going to be miserable this year looking forward to that. welcome to "power lunch," everybody. the dow and s&p 500 hitting all-time highs yet again the nasdaq had been the leader but pulling back throughout the day. more big tech companies report results today. google, microsoft, twitter to name three and the inflat