>> ford. it's on the verge of a 20-year breakout. >> and pete? >> i'm going to give you hilton. there's some buying out there in april, scott. >> okay, digood stuff the market off the open today. we did have records across the board, dow, nasdaq and s&p at new highs. the dow crossing 36,000 for the first time today that does it for us. "the exchange" is now. thank you very much, scott hi, everybody, i'm kelly evans happy monday ahead this hour on "the exchange" hyperinflation how about hyperinflation for stocks all-time highs for the ow, the s&p and the nasdaq but it is a big week that could test the bulls with earnings, a fed decision and the all-important jobs report. plus, chips, cleaning and rental cars. our earnings exchange has the moves and the trade on msp, and

avis we have the latest on the lines and the cancellations. but first today's record-setting markets. i'm happy to report dom chu is back with us. >> it's so good to be back with you guys, kel. it is good news for the bullish investor we do have as kelly points out record highs for the three major indices in the u.s the dow industrials get that gold star, the s&p 500 the gold star and the nasdaq as well. we're off our session highs but we did hit the 36,000 mark, the 36k mark at one point today so, again, a very bullish mood for the overall markets. i will say we did dip into negative territory at one point so keep an eye on these record levels one another place to keep a close eye on is the consumer discretionary sector why? because it's the best-performing sector over the course of the last one-month period. the reason why you're seeing that big 13% gain over there is because in large part a 53% gain in tesla

tesla is the second biggest component in the s&p 500 after only, yes, amazon.com. so a lot of that bullishness being driven by tesla. record high $1.1 trillion valuation still for those tesla shares and one stock to keep a close eye on, also on the mobility front. shares of harley davidson up 7.5% today because the u.s. and european union have agreed to an agreement for steel tariffs and aluminum tariffs on both sides what that means is many of the retaliatory tariffs put in place during the trump era by the eu on u.s. manufacturers now start to go away harley davidson could have faced very stiff tariffs on its products in europe by the way, since the highs this year, we are down 30% off those levels but keep an eye on harley, one big stock on the move today i'll send things over to you. a new month and record highs for stocks and even tech is shaking off apple's earnings

disappointment the stock is outperforming the major averages my next guest says this is where the big money is still to be made joining me now is seung-hui cho. it's great to have you here, welcome. >> great to be here. one is a hong kong name. you'll have to tell me about these companies, latin america i think that is. let's start with the more familiar name, marvel. what are you seeing at a time where there's massive debate about what's going on in the chip sector? >> marvel is the largest position that we have in the etf. under the strong leadership of matt murphy, it's executed one of the best turn-arounds i've seen in the 15-plus years i've been covering the serctor it's transitioning to being one

of the fastest growing semi conductors over the next five years. the reason being, we think they'll take a lot of share inside of the cloud. so there's a change in the industry where they're going to customize silicon and we think marvel has all the tools and pieces to take a lot of share in the cloud. the two other names that you mentioned, the names that you weren't as familiar with, one is a leading saas company in china. it's relied on the wechat platform but they are diversifying their business. we're very bullish on the forward fundamentals this is an industry that we think china will support so i think there's a lot of fears about what will happen to china cyclically and from a regulatory perspective, but software is one of the areas we think they'll support so we're bullish on their fundamentals >> i want to say it because i'm going to enjoy this. if i'm reading the notes correctly, this is an innovative

payments company based out of uruguay. before we get into the nitty-gritty on that, i want to back up for a second when we're in the middle of this massive market debate where people go you might have bond yields rising, you seem to have growth maybe in amazon and other core platforms slowing, do you have any big picture concerns about the performance of a fund like yours over the next six to 12 months? >> certainly the biggest concern right now in the marketplace is inflation and the direction of interest rates in the short run there's no doubt that a rise in interest rates would be a headwind to the tech sector. as long as fundamentals stay healthy and the rate move is not too fast or too extreme, we're not overly concerned i would point you to look at the last two times we've seen big rate moves in the tech sector. the first one was september of 2017 to 2018 and the rates move from 2% to over 3%, but the

nasdaq was up over 25% during that period of time. the second period was just recently, august 2020 to march of 2021 when rates went from 50 basis points to over 1.8% and the nasdaq was up 15% plus so as long as fundamentals remain healthy, and we do think they will remain healthy in the tech sector over the next 12 months, we're not overly concerned about the rate rises. >> let me ask you a question if you say the fundamentals aren't a headwind, is the momentum and investor interest in these kinds of funds itself a warning sign there's g-tech, ark-k and other funds that cathie wood has is there enough of another leg to run on? >> look, i think the market is slowly realizing that disruption is happening all over the marketplace and everybody wants to be on the right side of

disruption benchmarks are backward looking. they tell you about what's happened in the past but don't necessarily give you the right investments for the future because these disruptive funds are waiting in the marketplace because i think there's a recognition that disruption is here to stay. >> let me circle back and that's a couple of interesting points you made in a case of marvel which is up 43% year to date, what kind of upside do you see here do you look at these with the typical sell side, upside case, 25%, 40%, or do you look at these as 1, 2, 3, 5x opportunities depending on how quickly that innovation is adopted? >> we're very valuation focused here one of the things that we like about marvel is that the earnings estimates really don't indicate how strong of a position marvel's competitive positioning is we think marvel can earn $4 a

share in three or four years we think it could earn more than $4 a share and the stock is already at $68 they could be one of the fastest growing semi conductors from that point in time we think it could potentially double from these levels when it goes from a value stock to a growth stock, these types of transitions are met with skepticism but that's also providing the opportunity as well. >> it's fascinating. i'm going to cheekily ask you about intel, do they need to buy marvel >> i think i am going to be meeting with the intel ceo in a couple of days one of the things intel needs to do is pivot harder to the foundry strategy the one concern that the market has is that the market is shrinking because of what i talked about with cloud customers customizing their own silicon. one of the new investigators of growth really could be foundry i think the ceo agrees actually

because he just raised his capex targets to become a foundry and compete. >> i appreciate you fielding that one sung, it's great to have you on today. thanks for all the ideas and the perspective. >> absolutely. thanks for having me sung cho. the etf he's speaking about is g-tech. the second largest independent mortgage company just reported a jump in market share. here to talk about how and where they're making inroads, loandepot founder and ceo anthony shea joins me in a first on cnbc interview. welcome. what would you say about the housing market and all the hubbub about what's going on at zillow >> the biggest issue is the lack of inventory, kelly. interest rates are still historically low the economy is strong. we're seeing very, very strong signals. we're just hoping for more

inventory. >> so you'd still say to everybody thinking about selling that now is a time to do so. i hear that they're holding out for pretty high prices do you think that's going to be sustainable? >> well, the housing market is a function of afford ability so based on the strength of income and based on the strength of the overall economy, as long as the housing prices are still affordable, we will continue to see it be very, very firm. >> why was your loan origination volume actually down somewhat quarter over quarter >> the market, because of rising interest rates, kelly, you're going to see refinances decrease so overall the housing market or purchase market is strong but the refinance market is going to start tapering off a bit so as you witnessed in our earnings release, we increased our market share quarter over quarter, year over year by 46% as the market is shrinking, the stronger players will take this

opportunity to build in strategy and increase market share. >> you're up to 3.5% of the market what do you mean by your difference sort of footing financially or otherwise compared with some of the others who's losing share or who's not capitalizing on it right now >> well, the cycle really started back in 2008 during the financial crisis where supply and demand curve was completely wiped outwith the leading mortgage company at the time, if you recall it was countrywide. so that vacated 23% market share. our industry has been building ever since then. loandepot's differentiation point is we're one of the very few that has a brand built in the last cycle so we believe brand is important. also we are well diversified in our different origination platforms. we work directly to the consumer we have built proprietary software and we have been

working very hard on trying to improve customer service level as well as building a trusted brand to that consumer. >> i think you owned a mortgage of mine once, but i think this is still an industry that's pretty fragmented. your shares are up 20% today but still down 60% this year we've seen this pattern across a couple of mortgage originators or players in this space they have pretty woeful share performance, certainly for prices in the housing market why the disparity? >> well, we definitely have headwinds because of rising interest rates rising interest rates creates several challenges but opportunities. the challenges are that gain on sale or margins, our earnings will be under pressure that type of pressure is going to also push a cleansing process where the weaker players will vanish they will not be able to take the pressure over a long period of time.

so the opportunity side, keep in mind that although we're number 2, our market share is only 3.5% so there's a lot of runway for established companies that continue to develop market share. also barrier to entry is significant in this business loandepot is one of the few companies that is at scale and prepared to large or grow even further. so any newcomers coming in post financial crisis of 2008 is fairly limited i'd be surprised to see any more lenders up and coming that can create scale. >> anthony, thanks for joining us today to explain it we appreciate it. >> thanks for having me. >> breaking down loandepot's quarter. still ahead, travel turbulence thousands of flights canceled over the weekend can the travel system handle the coming holidays? plus we're back in another edition of earnings exchange looking at some of the names set to report after the bell today

we're talking chims, clorox and rental cars. here's a look at the sector heat map energy is leading the way with some gains in the just under 2% range. tech actually down a third of 1% we're back in a moment as i observe investors balance risk and reward,

i see one element securing portfolios, time after time. gold. your strategic advantage. it's another day. and anything could happen.

it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

welcome back airline stocks just had their worst month since march 2020 when the pandemic first hit and was in full swing. now american airlines becomes the latest carrier dealing with mass cancellations phil lebeau is here with those details and why this could be the new normal for travel, phil. >> it will be the new normal perhaps because when you have a storm or something that causes a lot of cancellations, maybe over a one-day period or two-day period, there's just not the staffing flexibility in order for many airlines to immediately ramp up. so you have people, maybe 10, 50, 100,000 people who may have lost their flights because they were cancelled as a result, what happens is they find themselves struggling to get back on track the airline finds itself struggling to get back on track. take a look at what we've seen the last couple of months. american between friday and sunday, approximately 1,800 flights were cancelled we know what happened with southwest a couple of weeks ago,

about 2,000 flights. spirit, more than 2,800 flights were cancelled american says that it expects fewer cancellations today. i just checked on this they're just under 600 cancellations for today. so that's about 12% of the company's entire flight schedule and they're adding 1,800 flight attendants who are coming back online after being on leave. the reason that these airline stocks are higher despite the fact that it'stight staffing right now, the white house came out with guidance in terms of how to enforce vaccine mandates if you are a government contractor, which almost all the airlines are so you have this looming deadline december 8th when theoretically everybody should be vaccinated if you are a government character today the white house said they'll give the companies ruled contractors some leeway, some latitude for them to figure out how to enforce the rules so that is seen as a win of sorts for the airlines that it will not be

a hard and fast, hey, come midnight you're out the door if you're not vaccinated. i think what we're going to see is you're going to see a lot of people who were not vaccinated, who work for the airline, leaving immediately. there will be a way for the airlines to figure out how to keep them working in some capacity. >> for southwest we were talking about the way in which the vaccine back fired and created the shortages or cancellations they were dealing with what about american, was that a significant contributing factor as well? >> no. and i don't think that southwest -- kelly, i don't think southwest was vaccine related. i do think, is it possible that there were some flight attendants or pilots or others at the airline that are not happy that the airline said, hey, look, we're going to have to have everybody vaccinated yes, that's possible although officially none of the unions say that they authorized a sickout at southwest i don't think that's what happened here in american. i think what you have is a case

where they're so tightly staffed, that as they have been ramping up flights, they need to get these crews connected with the aircraft once you have mass cancellations and they had a lot of them late last week due to high winds at dallas-ft. worth, which is the main hub for american, once that happened it's like a wave. it's really hard to catch up and that's the impact that we've seen we will likely see this for the holiday season, kelly. you will see if there's a bad storm somewhere, it's going to be really hard for the airlines to catch up. >> it makes me think people should try to book an extra day. don't do that 50-minute layover. >> but the problem is if your flight gets cancelled, there's no empty seats for the airline to say, you know what, we're going to put you and your husband and your kids on the next flight. there's just no seats there. so they have to find a way to absorb all these people who had their flights cancelled. >> it's going to be quite a challenge, not to mention the experience at the airport if there's no starbucks open and that kind of thing phil, we appreciate it

>> you bet. >> phil lebeau reporting on the airlines. blockchain developer platform is announcing a new round of funding that's backed by big names spanning from wall street media to silicon valley. plus a new cnbc documentary will dig into the meme stock phenomenon of amc and its self-proclaimed apes here's some of them to explain why they are so invested in the company. >> i'm hoping that i will be able to pay off my debts i have a lot of student debt. >> even if it's not the big, big numbers, i hope we all make a sizeable profit and also make a sizeable statement >> it will go to the moon. even if it doesn't, it's been a wonderful ride. >> i've got amc for generational wealth i want my kids kids kids tbeo financially stable. >> why am i an ape i'm an ape because [ bleep ]

them, that's why (loud drumming) drums! drums! aaaaaahhhh! at least geico makes bundling our home and car insurance easy. we save a lot. aaaaaahhhh! ohhh! (loud drumming) animal! aaaaaahhhh! for bundling made easy, go to geico.com. uh-oh...

your record label is taking off. but so is your sound engineer. 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, everybody. we're keeping an eye on markets. the dow was briefly negative but is hanging on to a 50 point gain the nasdaq the outperformer and the s&p is barely positive, up less than one point. energy and consumer discretionary are leading. tech is one of the bigger laggards we're talking about a decline of a quarter percent. digging into energy which is up 1.5% crude is higher after a nine-week win streak it posted an 11% gain in october, its best month since february now it's adding just over 1% marathon is another leader and transocean is higher ahead of its results after the bell.

in fact, it's higher by 6.5% shares of deere of surging after it reached a deal with the united autoworkers union about two weeks after they called a strike for the first time in 35 years. deere shares are up more than 6% today. it's on pace for its best day since february and it's up more than threefold from its pandemic low. novavax surging after saying they resolved all vaccine manufacturing issues and expect full submission of their vaccine to the fda in several weeks and it is up 13% now to sue herera for a cnbc news update. >> here's what's happening at this hour. the white house says children age 5 to 11 can start getting their covid shots next week. about 15 million doses of pfizer's vaccine for young children are already being shipped. in new york city, about 9,000 municipal workers have been put on unpaid leave for

refusing to comply with that city's covid vaccine mandate thousands of firefighters have also called in sick in apparent protest. as of yesterday, about one-fourth of new york's firefighters have not gotten a first dose of the covid vaccine and one in six police officers are unvaccinated on the news, the latest on vaccine mandates in los angeles and chicago and the pushback from government workers. dune in tonight, 7:00 p.m. eastern time. and an offer from elon musk. he says that he will donate $6 billion to solve global hunger, but only if the united nations food agency shows exactly how that money will be spent musk's offer is in response to a request from the agency's head for billionaires to increase their donations. the u.n. saying $6 billion won't solve world hunger, but it will help prevent mass migrations and save 42 million people who are now on the brink of starvation

you are up to date, kel, i'll send it back to you. >> thank you very much, sue. mxp semi conductors has top and bottom line beats in 16 out of the past 20 reports can it go for 17 as the chip shortage continues >> avis getting a handful of downgrades but with car rental at premium prices, will it repeat last quarter's blowout earnings s rsqute clorox get wiped out in itfit arr? that's all coming up in today's earnings exchange. ght ♪ ♪ have a good time 'cause it's all right ♪ ♪ now listen to the beat ♪ ♪ kinda pat your feet ♪ ♪ it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ oh, it's all right ♪

(rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

welcome back, everybody. it's time for another edition of earnings change where we give you the action, the story and the trade on three key earnings reports. today's lineup is nxp semi, clorox and avis. the chip maker reporting q3 results tonight. analysts expect earnings of $2.27 a share. the company reported 43% sales growth last quarter as remote work boosted the chip sector but management has the supply issues as a headwind that will last until 2022 let's bring in josh lipton for

the story and delano is a cnbc contributor and he'll give us the trade. josh, the story first. we've talked about this. is there overshipment already in some parts of semis, like auto, they might be exposed to >> so it's up about 30% so far this year. it's about 10% off its august high i checked in with bernstein's stacy rasgone. he wants to know just how executives are thinking through the sustainability of demand in their order patterns and any color and commentary we might get about what they have seen in the auto supply chain. that's this company's bread and butter and represents 50% roughly of revenue also those broader capacity constraints we talk about with these chip makers, how executives are enthuthinking abt the bottlenecks and what they're thinking in the quarters ahead nxp is an apple supplier

apple probably represents mid to high single digit of revenue here, kelly. >> delano, what would you do with the stock >> i think investors have had a pretty good ride i would continue holding that big thing investors will look for is the automotive and how that area of their business grew in quarter three and if that can be sustained as we look at some of the supply chain issues, inflationary pressures that's a big thing i'm looking for in the stock look at the mobile business as well what's the growth rate on the mobile business chip sector. one upside for the company is they do have diversification of revenue even though apple is one of their bigger end user they do have some diversification. they have over 25,000 customers, so i think that's also a good positive thing also look at trading 55 times price to earnings so that might be a downside risk when investors look do i want to get in the stock right now.

>> in some areas of semis, we're all talking about shortages but are there places where they're overshipping is that going to keep the whole sector at a permanently higher plateau? the big question is are they heading into a lumber situatio or not >> it's kind of been a challenging earnings season for semi investors because you're kind of getting mixed messages texas instruments reports and kind of calls a top in terms of customer order patterns. then on semiconductor, they just reported they reported obviously investors are happy that stock is soaring today we'll get another one today with nxp. >> josh, thank you very much our josh lipton. let's move along to clorox speaking of kind of the lumbering -- analysts are expecting a sharp decrease in

year-over-year sales clorox sales are down 20% after a monster 2020 they get a bulk of their revenue from cloeaning products but goin for full disinfectant at home isn't the same as last year. sara eisen is here i would imagine expectations are pretty low. >> they are certainly low. they got crushed after last quarter, which was a huge disappointment for clorox. the stock is down about 12% just since that augustreporting staples overall are flat in that time and the s&p 500 is up here's the problem for clorox. it's really supply and demand. after we all got vaccinated, the demand for all of those disinfecting wipes and bleaches just fell off a cliff, at a time clorox was ramping up its capacity to meet the needs of people going out and buying that stuff during the pandemic. that's problem a

problem b is the supply chain has been rough all the things from resin to pulp to chemicals for the bleach have gone up clorox was expecting margins around 36.5% i talked to an analyst at jpmorgan who says that's the lowest margin for clorox since the 1990s. >> wow. >> which gives you a sense of how much pressure they're facing on the supply chain. and there is a risk, a small risk that they could lower that guidance even lower on margins. >> wow >> so they got bailed out during the pandemic for the surge in demand from everything, they make trash bags, glad, to the disinfectants. >> what would make this more attractive for you, a lower share price? what sara cited is a pretty troubling stat. >> yeah, it is a pretty

troubling stat and they have a lot of headwinds going forward and that's still to be figured out. on the flip side what could possibly bring investors back to the stock is there is still a little demand for some of their products when you talk about cleaning, grilling andtheir bags and wraps, i think there's also pricing power potentially too with that strong brand and with demand in some of the areas of the staples being still there, they could have pricing power. they have announced some pricing increases to hopefully combat some of the margins assayera mentioned that are being compressed also investors might be there for a dividend play but just in general, i'm just not in the stock and wouldn't be rushing to buy. >> and still at a 29 forward pe so not cheap by any stretch. sara, we appreciate it we'll see you in about 90 minutes time sara eisen covering clorox this afternoon. finally, let's talk some

avis budget. analysts are expecting $6.52 a share. the car rental company is up 360% this year and coming off its best quarter in history. this all goes back to rental car prices travel demand coming back, their sales tripled in the second quarter. phil lebeau is back. a couple of interesting angles they sold cars last year they shouldn't have and are now low on capacity. number two, we saw it get downgraded after the hertz/tesla partnership. so that was a glimpse into some future competitive challenges. >> well, they do have some future competitive challenges, but you've got things working in their favor. there's more corporate traveling. they have tight inventory in terms of vehicles. they have better revenue because they have the pricing power and that's likely to continue into the first half of next year. the problem is this, when you look at that chart go to a one-year chart

this sets up perfectly for a by the rumor, sell the news kind of situation where people will sit there and say, boy, we've heard this all before. this is so good. this is a really nice run. time to sell this stock. so that's why when you talk with analysts, and i looked at some of the analysts notes on avis budget and most people said do not be surprised if you see a bit of a pullback after the numbers come out today. >> they're up fivefold i know you're not that excited i'm trying to get delano excited here today and i know avis doesn't do it for you. would hertz with all the moves they have been making lately >> in this rental area, there's a lot of demand. on the supply side, the chip automotive side, i think avis is in a strong position, hertz is in a strong position avis, obviously it's been an

unreal run for the stock that's been impressive profits doubled last quarter and that's really obviously something that analysts were saying was one of the best quarters they have seen in history. i wish i was in the stock and i think investors that have been in it, they have had a great run here i think as phil mentioned, there might be a pullback. last time we saw earnings, the immediate reaction was a 16% drop in the stock. i think that's an opportunity for investors who still like it long to get in at a better valuation, better price. so you never know, there could be a drop. but obviously the company is doing incredibly well. the stock price has been a crazy run. >> i see a dunder-mifflin hat behind you delano, thank you so much. phil lebeau, thank you as well a very busy news day between autos, planes and all the rest of it. up next, everything from

bitcoin to nfts to video games run on blockchain technology we'll talk to the ceo of a company that acts as a middle tuprabout how they're hoping to fureoof businesses we'll dig into that, next.

welcome back blockchain developer alkemy has seen growth. this platform acts as a middle man between the blockchain and developers to create things like appses and nfts for video games. it recently completed a $250 million fund-raising round which values them around $3.5 million. joining me is kate rooney along with the ceo. >> great to see you. thanks for being here. >> thanks for having me. >> of course, of course. kelly talked about some of the

other applications people hear blockchain and a lot of times think about bitcoin but blockchain has moved beyond finance and some are calling this web 3.0 what are you seeing being built on this technology and where are you seeing the most growth right now? >> absolutely. so we see a lot of growth because alchemy is powering the space. what we're seeing is an explosion of different industries, music, real estate, finance, and real applications moving in and being used for example, adobe, tiktok, these companies are all building real applications on the blockchain. >> alchemy has cornered the market with nfts what's stopping an amazon from coming in. you've made the comparison to aws. why wouldn't amazon build their own version of this and why wouldn't a big tech company come in and try to steal market share here >> what we're seeing is a lot of big companies are trying to move in it's a very complex technology and has taken us years to build.

we've been able to dominate the market share. >> it's kelly. i just wanted to ask you about this headline. there was a crypto punk nft sold for $530 million sort of to itself it started all of this discussion about how trustworthy these transactions are are they really representing true value that's rising in the nft space or is it somehow all just smoke and mirrors what can you tell us about that and about the activity that you see happening? >> that's a great question what i would liken it to is 1999 you saw a lot of companies that didn't survive and maybe weren't real use cases at the time the interesting insight is that the technology of the internet was really useful and i think we'll see a similar thing in blockchain and nfts in particular the core use case of nft and ownership is powering the future of the web 3.

>> i want to ask you about defi. gary gensler says it's a misgnomer to say these are decentralized. do you have to do background checks for make sure you're not powering things that might violate securities laws and are you worried if the s.e.c. does clamp down on it >> that's a good question. we are like a platform that is agnostic to a use case we don't actually deal with the finances what we do is provide an open platform that anybody can build on. >> got it. i also want to ask you about the m metaverse. we've had mark zuckerberg and facebook moving in a lot of your partners are working on certain aspects of the metaverse. is it a good thing to have facebook involved here >> i think facebook is one of the largest and most influential companies in terms of consumer

products as we move towards web 3 and the metaverse, i think they will be very helpful in laying the groundwork for this new technology. >> well, thank you so much for being here great conversation we look forward to hearing more about alchemy. kelly, i'll send it back to you. >> that wasn't exactly a no about that facebook question but it wasn't exactly a yes either kate and nikil, thank you both very much for your time talking nfts. shares of amc have surged 1400% over the past year as reddit retailers flood into the once beaten-down name. cnbc talks to some of those redditers about why they're sticking with it

in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today.

welcome back shares of amc entertainment, the more than century-old movie theater chain, have been on a wild ride this year after teetering on the brink of bankruptcy in 2020 its market cap now sits at $18 billion and that's thanks in part to a group of 4 million retail investors who now own 80% of the company melissa lee has been following this story and spoke with one of the most well-known influencers

in the ape army. >> i think what attracts people to amc is the unity behind the trade. it brought people together to appreciate that you can come together and set aside your differences for something that you believe in in this case it's fighting against a corrupt market a market that wasn't built to be fair for every single party involved i think that's what single party involved i think that's what amc stands for, speaking out and making noise because any great change that comes in the world over the last decades and hundreds of years didn't come quietly, it came with noise, came with blood. >> i think that was the biggest wakeup call, there was a statement being made here. it wasn't oh, well we are all stuck in the pandemic, let's have some fun. >> not every -- april out there is powered by this social equality idea but this goes facebook this is a rigged institution. they saw their parents get desecrated in the stock market

they listened to retail brokers into stocks, lost a lot of money, they saw occupy wall street, and this is sort of the latest exhibition of this populous fervor. >> it has been a successful one. i think everybody for the january run-up thought it would last a couple of days. but it is nine months, and game gamestop is still higher what happens if the prices drop because one by one people sell or something happens i have heard people saying when this blows up people are going to be more furious at the system than ever before i am curious about that? >> there is no belief this is going to go to zero again. i mean the fact that amc has raised this mush cash and has that cushion at this point, it is not a teetering on the brink of bankruptcy company anymore. it is well beyond that so the idea it is going to go to zero, and that badly, you know, that's probably not necessarily on the table also something really goes awry

for these people it is more than that a lot of them it is the fact that gary gensler is take a ban on payment pool -- now all of a sudden it is a focus of the chair of the securities and exchange commission? that is something. >> i think it also feels d there is something satisfying about the customer being able to influence the operations of a company instead of -- how many times, p/e backed firm ruins its pragszs, the terrible customer service -- whatever it is, now it tells like there is an opportunity for the critical mass average person engaged in the interns being able to influence a company. >> we have seen it adam talks about how he's really in tune now to his shareholder base, 80% retailer he is listening to the thing they want to do. those are his customers, his

shareholders there are a lot of things that that amc is looking into, streaming live sports events, a partnership with gamestop, accepting crypto all those things came from the retail community it is part of their efforts to move beyond movies as we know, movies may not be the be all end money for the chain. >> they should stream this documentary. thank you for coming on to tell us about it. you can see the apes documentary on the cnbc channel on youtube. still ahead, muni bonds are seeing outflows and negative returns after posting a positive start to this year we will tell but t dhe.c. changes that could be looming next

hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone, including up to $800 off the epic iphone 13 and iphone 13 pro. you're a one-man stitchwork master. but your staffing plan needs to go up a size. 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 i'll shoot you an estimate

as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. everything you've seen me do was made possible by what you don't see. cause when you're not looking, i go to work. ♪♪ strength isn't a given. it's grown. it's earned and tested. ♪♪ we all have the strength to see what's possible. it's up to us to unlock it. tonal. be your strongest.

welcome back, everybody. muni bonds are coming off three negative straight months as investors are worried about the news out of washington my next guest says the key thing to watch is the inclusion the 15% minimum corporate tax rate in the packages. michael, great to have you back. why is that tax rate so relevant >> well, it's important because if you get banks and insurance companies which are about 24% of the moneyy market, if their holdings start to become partially taxable in some way which in theory could happen with this book tax unless it was specified by congress to not include municipal income, then what you have is a market where the individual investor really becomes the primary and almost only investor interested in munis at this level. that lack of diversity in the market isn't particularly helpful. it makes the market less

structural sound so it is a situation that could be a problem even though muni credit by and large is strong. >> i heard there could be muni apes look what they have done for amc. maybe a retail investor base isn't that bad connect the dots you are sake the 15% corporate tax may mean banks and those firms will sell muni bonds because they don't want to pay tax on the profits >> right now, if you own a muni company if you are a tax on insurance company you are being shielded from the income tax rate but if you end up not paying enough tax such that you fall their in new minimum tax the income becomes partially taxable. it doesn't necessarily mean you are going to sell your muni bank portfolio but you might not want to add more at current levels

wh it would mean the demand flow of the market would be largely based on individual investors. >> that's interesting. i never would have connected those doubts i appreciate you pointing this out. let me ask, if they have to sell for basically not fundamentally economic reasons, in other words, they have to sell because they don't want to pay taxes does that create a dislocation that individual investors should buy because they wouldn't otherwise get that opportunity >> it creates a vulnerability in the sense that you are taking one solid demand base and weakening it that vulnerability probably expresses itself over time in the market becoming more volatile because it is more concentrated in the individual investor when you see outflow cycles when they are pulling out of mutual funds it creates volatility that

has nothing to do with credit quality. to your point, yes it becomes an opportunity for any investor, really, but probably the individual investor who is willing to own the asset despite the volatility. >> it could undermine the performance, the steadiness they might be looking for. >> right. >> we will be watching to watch what happens next with those bills. that does it for "the exchange," everybody. thank you for tuning in. "power lunch" begins right now kelly, thank you very much welcome, everybody, to "power lunch. i'm tyler mathisen here's what's ahead for a busy monday afternoon the fed has never been this far behind the curve so says a strategist we will talk to this hour. he has a list of inflation-related sectors that could drive the market spac-takular spacs are back, but with a catch. a lot of concessions are