next year you decide there's a serious risk of persistent inflationary pressures despite ongoing employment shortfalls? >> yeah, i mean, again, it's a risk management thing. i can't reduce it to an equation, but ultimately, it's about risk management. so you want to be in a position to act, to cover the full range of plausible outcomes, not just the base case. in this case, the risk is skewed for now, it appears to be skewed toward higher inflation. so we need to be in a position to act in case it becomes necessary to do so, or appropriate to do so, and we think we will be so that's how we're thinking about it and i think, though, that judgmentally, too, it's appropriate to be patient. it's appropriate for us to see what the labor market and what the economy look like when they heal further we know that we were on a path to a different place, as i

mentioned, when delta arrived. and delta stopped. it stopped job creation. it stopped that transition away from a goods focused economy where there's excess demand for goods because their services are not available, people are not traveling. that transition itself could help bring inflation down because presumably, people would spend a little less on goods while they start spending more on travel and all sorts of travel services and things like that so that, we want to see that healthy process unfold as we decide what the true state of the economy is and we think it will evolve in a way that will mean lower inflation, bottlenecks should be abating. we start to see that now with some of them, but overall, they haven't gotten better overall, and we're very aware of that that's really how we're thinking about it we're thinking time will tell us more in the meantime, we don't think it's time to raise rates now you know, if we do conclude that it's necessary to do so, then

we'll be patient, but we won't hesitate >> thank you let's go to edward lawrence at fox business >> thank you, mr. chairman, for taking the call. the federal reserve, i want to talk about climate change. the federal reserve released a statement saying the federal reserve supports the efforts to identify key issues and potential solutions for the climate related challenges most relevant to central banks and supervisory outcomes is this putting us on a path to regulate what banks can offer loans on or invest in, like coal plants or fossil fuels >> that's not a decision for bank regulators or for any agency that's a decision for elected representatives. so we feel that any role that we have, and we do think we have a role in climate change, it relates to our existing mandates our existing mandates are really prudential regulation of financial institutions we expect them and the public will expect us to expect them to understand and be in a position to manage their risks.

so that's physical risk and it's transition risk for climate. and by the way, the large financial institutions are doing this already, and you know, we think that's right within our mandate. there's also a financial stability question the overall stability of the financial system and so from that standpoint, we can do research we can try to help understand what will the pathways be through which climate change affects the economy, both physical risk and transition risk that's what we can do. and that's what we will do we'll do it well, within the frame of our existing mandates, we'll do it well we're not the people who will decide the national strategy on climate change that has to be elected people. and not so much us we feel like we have that narrow mandate, and we will do it well. >> thank you >> thank you victoria at politico >> hi, chair powell. so the fed recently announced that there's going to be new

conflict of interest rules for investments by fed officials and this follows obviously the resignation of two regional fed presidents i'm just wondering, do you think there's more that you will need to do to rebuild the credibility of the fed such as requiring officials to put their assets in blind trusts also, if you could speak to whether you have any concerns that any rules or laws were broken by fed officials. thank you. >> so you know, let me just say that the system -- the ethics system we had in place had been in place for decades and had as far as we know, served us well and then that was no longer the case and so we had no moment of denial about that as a group we stepped in and we took the actions that we took and within one fomc cycle, we announced a new set of rules to

try to put us back where we need to be, which is we need to have the complete trust of the american people that we're working in their interest all the time absolutely critical to our work as it is for any government agency and i feel like this called that into question, so we reacted, i would characterize it, strongly and forcefully if there were other things we could do that were reasonable, we would certainly do them, so you asked about blind trusts you know, the overall authority for ethics around these issues in the federal government is the office of government ethics, oge. and they have a long-held position which is not favorable to blind trusts. they do not encourage them they don't think they're effective. they think they're cumbersome and they think there are better ways to get at the things that need to be done, and those are the things we're actually doing. i don't know there are any blind trusts for that reason, because

they are the -- they say this on their website if you look. in terms of laws broken, i asked the inspector general to look, to see whether there were rules broken and whether there were laws broken i won't speculate on that, but that is with the inspector general now, and of course, out of my hands. >> thank you we'll go to mike mckie at bloomberg. >> mr. chairman, the critics of your patience policy argue that given the long and variable legs with which monetary policy works, you are likely to end up given inflation by having to raise rates faster and farther than you would have liked, and therefore send the economy into recession. given the fact that basically your forecast has been chasing inflation over the last year, and now you're talking about it now coming down until the second or third quarter, why would they be wrong in thinking that?

>> well, so let me say what's happened, and we're very, very straightforward about it, is that inflation has come in higher than expected and bottlenecks have been more persistent and more prevalent. we see that just like everybody else does. we see that there are now on track to persist well into next year that was not expected. not expected by us, not expected by other macro forecasters now, let me say, it's difficult enough to just forecast the economy in normal times. when you're talking about, you know, global supply chains in turmoil, it's a whole different thing. and you're talking about a pandemic that's holding people out of the labor force for reasons that we can sample but we can't -- we don't have a lot of experience with this, so it's very, very difficult to forecast and not easy to set policy

so we have to set policy, though, so that's what we're doing. and so to look at your question this way, i don't think that we're behind the curve i actually believe that policy is well positioned to address the range of plausible outcomes, and that's what we need to do. it would be premature to raise rates today. that's not -- i don't think that's controversial certainly, i don't know anyone arguing for that today and the reason is that there's still ground to cover to get to maximum employment, and we don't want to stop that when there's good reason to think, there's still good reason to think although it's been delayed, clearly, there's good reason to think that the economy will reopen, particularly if we do get past significant outbreaks of covid, that's when we're really going to see what the characteristics of the labor market are, and you know, i think the bottlenecks that we're seeing in global supply chains around goods and frankly now in our own domestic ports because

demand is stronger than the capacity of the ports, those things are going to work themselves out we have a flexible economy it will take some time, but it took, you know, experts managed to create a vaccine faster than certainly than i expected, and i think this stuff will work itself out over the course of next year. that is my baseline understanding, and that's very widely held among people but you know, we are prepared for different eventualities, and we will use our tools to achieve price stability and maximum employment, and we're going to let the data lead us to where we need to go our policy will adapt and has already adapted to the changing understanding of inflation and of bottlenecks and the whole supply side story. which is also partly a demand story. so our policy will continue to adapt as is appropriate. >> thank you let's go to nancy marshall at marketplace. >> hi, chair powell. thanks for taking our questions. so you announced that the fed is

going to taper at a rate of starting at $15 billion a month, and that's more than twice the pace of the last taper so why are you tapering faster this time? >> the economy is in quite a different place than when we tapered back in i guess it was 2013 we were much farther away from maximum employment inflation was much lower this is an economy where demand is very, very strong very strong. and job openings substantially exceed the number of unemployed people so the need for further stimulus is far less than it was in 2013, where we still had quite a ways to go. i mean, after we began that taper, it was still many years before we reached what i would characterize as conditions consistent with maximum employment, let alone price stability. so this is quite a different situation. and you know, the committee unanimously felt today that we had met the test that we had

articulated and this was appropriate, and this is faster than what people had expected six months ago it's earlier and faster, and that's because, as i mentioned, our policy has been adapting to the situation as it evolves, as it's clarifying itself that's partly because we see inflation coming in higher >> thank you let's go to mike derby >> thank you for taking my question i wonder if the fed has given any thoughts yet to the end game for the balance sheet in terms of once you get the taper process complete, will you hold the balance sheet steady or will you allow it to start passively winding down and then in a related question, do you have any greater insight into what fed bond buying actually does for the economy in terms of its economic impact have you been able to, you know, measure it or quantify it in any

fashion? because i'm sure you know there's often been questions about what is bond buying actually doing to help the economy. >> sure, in terms of the balance sheet, those questions that you mentioned, we haven't gone back to them now that we have tapered, i expect that's exactly what we'll do and we'll do it in an orderly fashion we'll talk about reinvestment and all those things we don't have to make decisions on those yet, but typically, when we're doing a new subject like that, we'll have a series of briefings and discussions that's what we will now begin to do in terms of the effect of asset purchases on the economy, so there's a tremendous amount of research and scholarship on this and you know, you can kind of -- you can find different people coming out with different views, but i would say most mainstream view would be that you're at the effect of lower bound, so how do you affect longer term rates there are two ways one, you can't lower rates let's say you can't lower rates

any further, hypothetically. you can give forward guidance. you can say we're going to keep the rates low for a period of time, a specific period until certain conditions are met, the market will do the math, and that will have an effect on longer term borrowing. that's one thing the other thing is you just go buy those securities buy longer term securities that will drive down longer term rates and hold them lower, and you know, rates right across the rate spectrum matter for borrowers. lower rates encourage more borrowing, encourage more economic activity. you can service your debt, you have more free cash flow you know, it's not different from what we do with the short end. so that was discussed long before anybody did it. that was i think milton freeman said that's what you can do if you're pinned at the lower bound many years ago that's how it's supposed to work, and it's quite hard to be precise about these things because, you know, you only have one economy and you can't run

two different economies right next to each other and do a scientific experiment, but most of the findings are that it does support economic activity in the way that you would expect, which is to say at the margin, more economic activity with lower rates, which is why we do what we did more accommodative financial conditions lead to more economic activity over time with a lag. so i think that's the main finding i would say on qe. >> thank you we're going to go to paul at cnn. >> chair powell, you have addressed already questions about the stock purchases that took place, some of the regional fed presidents, and addressing the american people to make sure that they can trust the fed. i was wondering also, in light of the fact that we now have questions about your own future, whether or not president biden will nominate you for a second

term, what would you say to the president and to senators that potentially would be voting on a renomination about this specifically with regards to your future as fed chair for a possible second term >> so i won't -- i will answer your question, but i'm not going to have any comment whatsoever on the renomination process at all. i will say, though, that i have briefed administration officials, and i have briefed people on capitol hill in detail about what we did and why we did it and seeking their feedback, getting their reaction, but you know, this is part of my job is, congress has oversight over the fed, and we take that very seriously. if you're on our one of the two committees that has oversight over us, i'm in regular contact with you, probably, and when something like this comes up, i'm on the phone, i'm offering to meet with you and explain it

to you and answer your questions and identify any concerns people might have that's just part of my job, so i do that, i don't talk about particular conversations, but you can assume i'll always do that and i certainly did it in this case. >> thank you >> let's go to hannah lang at the american banker. >> hi. i wanted to ask about the supplementary leverage ratio is the fed still planning on seeking comment on ways to permanently address that and how concerns are you about banks' willingness to intermediate in the treasury market without a permanent fix >> i don't have anything for you on sum lpplemental leverage raco now. we're looking if there are ways we can address liquidity issues through that channel we also have -- there's a working group headed by treasury about over treasury markets and what happened in the acute phase

of the pandemic and what structural things may need to be done so that would be part of that work stream, and i know that there's a lot going on i'm not sure when that report will be out. so it's work under way that's one of the many issues that are part of that, along with things like central clearing of treasuries, greater central clearing, and many other ideas. it's important that we have a liquid treasury market it's a huge public benefit that we do. and you know, i think we need to do those things that enable that you know, while also assuring safety and soundness of our largest financial institutions, who tend to be the main dealers. so we have to make sure that that's always a first order of concern as well. >> thank you >> thank you let's go to brian cheung at yahoo finance. >> hi, chairman powell just to expand on the ethics conversation, you talked about how you engage with people on

capitol hill and in the administration you talked about what you have done already i'm wondering if you can take a step back and assess whether or not there was reputational damage as a result of that, either from the public's view or from the financial community's view of the federal reserve's independence, and secondly, do you look back on the whole episode and have thoughts on your individual responsibility in preventing something like this from having happened? >> you know, i think it's too soon to say what the reputational damage is i think from the very beginning, my reaction was, we need to deal with this straightforwardly, transparently, and forcefully. that's what we're going to do. i mean, it means everything to me that we do whatever it takes to make sure that nothing like this happens again and i like to think we made a real good start on that. if you think about it, you cannot execute a trade unless it's pre-cleared and then you have to say execute, it's not even a trade really, there's no trading going on this is for investment and

getting liquidity for life's expenses you then have to wait 45 days to actually execute that sale or purchase so i think it's a pretty good system we'll always be looking to make it better. so in terms of our independence, look, i think we will address this, and i think we have, and i like to think it's enough, but it's -- you know, we're just beginning to implement it. we have to write the rules, which we're doing, you know, as quickly as possible. we need more people. we're going to have to resource this much more significantly here at the board. and also, we're going to need appropriate technology, because we have, the fed -- the system has more than 30,000 employees far fewer of them will be covered by this, but the senior officers who will be covered by this will, you know, will have to have technology access and it's going to have to work

efficiently, so there's a lot to work todo to implement it. you know, again, i would just say this system has been in place for decades. and it was in place when i took over it was in place for the last at least the last three or four chairs and it was what it was and you know, it proved to have weaknesses in it part of that was, it wasn't uniformly enforced across the system i'm a big believer in the value of the federal reserve system and the reserve banks. but you had 12 different ethics officers at 12 different banks and ethics people here and you know, compliance wasn't -- it wasn't all exactly the same. it was a little bit different and uneven and also the rules, we didn't imagine the problems that happened and they may have actually been, i don't know this, but they may actually have been in clients with the specifics of our rules. they were clearly not in

compliance with the part of our rules that said don't do anything that would create a bad appearance that's clear this was a bad appearance. so anyway, what can we do? we are where we are. it happened. and we just have to deal with it fo forthrightly and transparently and own it, and step up to meet this moment. i'm totally committed to doing that and again, if there are better ideas, i would love to hear them, but i think we have so far made a good start. >> you say you have spoken with administration officials did that include the president >> i'm not going to answer who i spoke to at all. i just am not going to give you any names, so don't take that as a yes or no. i'm not going to start down that road >> okay, thank you we're going to go to jeff cox for the last question. >> yeah, thank you chair, where just want to dig a little deeper on employment.

we have seen what's been called the great resignation with folks leaving their jobs in record numbers. is there any feeling there that maybe you have been accused of fighting the last war that perhaps the labor dynamics have changed in the post-covid environment and that full employment may not look like what it looked like before >> yeah, so what's happening is people are leaving their jobs. they're quitting their jobs in all-time high numbers. but in many cases going back into employment and getting higher wages so a lot of the higher wages you're seeing are for job switchers rather than incumbents so that's just -- that's a sign of a really strong labor market, as opposed to people just running off and quitting there have also been -- there are significant number of retirements, and we'll just have to see what that means toward the end of the last cycle, which was the longest in

our recorded economic history, we did see labor force participation moving up well above what economists estimate was the trend. and part of that was people staying in the labor force and just not retiring at the rates they were expected to retire maybe this was just catch-up on that i am a believer that over time, you won't know how far -- you won't know what can happen with labor force participation in advance. you are just going to have to give it some time. because we saw that over and over again there are things where we can say, you know, this is where the limit is, labor force participation is a much more flexible subject for me. and so i do think we need to be humble about what the limits are of label force participation we expect labor force participation to pick up we don't know the pace at which it will do so. so in terms of full employment,

as i discussed earlier, i think at the very beginning of the recovery, the natural thing to do is look back at labor market conditions in february of 2010 at the end of the longest expansion in our history it was so much to like about that labor market. really historically good labor market never perfect, but a good labor market we're in a different world now this is -- it's just very different. the pandemic recession was the deepest and the recovery has been the fastest and wages didn't really go down. real incomes were more than fully replaced by fiscal policy. all of this is completely unusual. an economy where inflation was driven by services is now inflation where all the inflation is in goods, which have had negative inflation for a quarter century. you ask about full employment.

i think we have to -- i'm very open to the thought that it's going to be an empirical question of where it is located and we're just going to learn more and more. one thing i hope we'll learn in the near term is once the delta variant really does continue to decline, what's going to happen to employment? are we going to start to see over the winter, you know, significant increases in jobs again? if you look back to three, six, and nine-month average job creation is between 550,000 and 600,000. if you think of that -- you don't have to think back to the million job months of june and july you can just think, okay, 550,000 to 600,000 if we should get back on that path, then we would be making good progress. and we would like to see that, of course. so we'll know so much more, and believe me, we understand it's a different world in so many ways. and we're very open to that. >> thank you, mr. chair. and thank you all for joining us today.

>> thank you >> that is the end of the press conference with fed chair jay powell we're at session highs on the equity markets with yields rising across the board. as the fed chair, of course, announced that the taper would begin. the speed of it could slow down or speed up as appropriate, but it was ultimately seen as a doves announcement of a taper highlighted by the fact we're at session highs up about 0.5% on the s&p 500. welcome to the closing bell. i'm wilfred frost. >> i'm sara eisen. my north star with the fed reaction is the u.s. dollar, which is weakening a little bit. >> always your north star, full stop >> true, but it usually has a pretty good read on what the fed is doing i think the interpretation by the market s okay, we're going to start scaling back emergency stimulus as expected, but this fed is in no rush for lift-off or raising rates you have a first clue of that in the statement when they used the word transitory to describe inflation. he says we think we can be patient. if a response is called for, we will nothesitate

we do not meet the left-off test, not as maximum employment, not even having that discussion. >> the hint on that side was we could perhaps reach the employment mandate at some point late next year, which was the only kind of hint we got i agree. every other time that was brought up, he didn't take the bait whatsoever and said we're not there yet. >> stocks are higher, the yields are higher, the dollar is weaker full reaction to fed chair powell's comments in just a second also ahead on the show, lemonaide shares are jumping as the company jumps into the car insurance space. the ceo will join us to discuss his strategy to take on established insurance giants >> from, earning results have led to some wild stock moves this week, and we have more reports coming your way after the bell today, we have qualcomm, roku, etsy, electronic arts. we'll bring you all the numbers as soon as they cross. >> let's get to our panel. first, sarah bloom raskin, professor of the practice of

law. and david zervis, mike santoli as well. sarah, i'll come to you first, and your take on this announcement that tapering is going to begin immediately, and whether or not this was ultimately a dovish announcement, the market is right to interpret it that way in terms of when it comes to rate hikes >> well, wilf, you know, the fed and the fomc, they did exactly what they said they would do they said they would telegraph it, they would plan it, they would announce it. it would happen in november, and sure enough, that is what they have landed. so what we are seeing here is a disciplined approach where they have told us exactly what they will be doing for the next several months they have announced the amount they have announced the pace and significantly, note that they have separated the tapering

decision from the lift-off and that is straight out of the fomc's playbook. that is a disciplined approach they're going to first discuss the tapering, which they have done they are not discussing the lift-off yet and you saw in the response, responses that chair powell gave, that discipline, that notion that we are not getting to lift-off yet, we're focused on the taper and that, i think, was done quite well >> sorry, i didn't know who was going to get the nice question mike, market reaction in terms of seeing the stocks at session highs. does that make sense with yields up across the board as well? >> i think it makes sense in terms of a little release of tension relative to where expectations had come in simply the repricing in the bond markets, you know, last week got people wondering if in fact it

was going to be slightly more hawkish. mostly as expected in terms of the pace of the taper. and as you mentioned, chair powell kind of declining opportunities to get more specific on rates. it does make sense to me, the seasonal factors really are in play in terms of upside to stocks unless there's financial condition tightening, and we're not seeing that. >> let's get to steve liesman who was a part of that news conference, and steve, i thought a really good question, i'm not sure whether you got a clear answer, but about the trade-offs right now between the higher inflation than target and the maximum employment that the fed chair is going for, and how that factors into the rate decision what was your take >> yeah, thanks, sara. i kind of agree. but i think it waspert of what maybe wilf was talking about he didn't want to answer that question let me lean just a little bit, without really disagreeing with you, on how dovish this was. i think it was very utneutral. i think to create that sort of neutral context, i would say this

the chairman came in with a dramatic repricing of expectations for this -- from a december rate hike expectation to now one that pick your day, it's either june or july, where the 50% probability is he did not support those he did not lean against them most importantly, he didn't change them. and i want to sort of get back to sara's question, which is what did he say when i asked about the trade' off he acknowledged, if you listen to what we're going to play for you now, that part of the tapering is to get the fed in a position to eventually raise rates. have your own judgment here. >> we see higher inflation persisting, and we have to be in position to address that risk should it become -- should it become really a threat to -- should it coriate a threat of more persistent longer term inflation. that's what we think our policy is doing now >> so yeah, picking up on what sarah bloom raskin was saying, it's taper and then raise rates. one of the reasons you taper,

you do $15 billion and you get it done, is to get yourself in a position to address inflation down the road. he is not out of sync. he's not in sync with what the market is doing. the idea of a june/july rate hike i think is still on the table. i still see it at this moment priced into markets. >> steve, thank you. let's get back to our panel. paul, i know you're sort of a powell fan boy, and i'm sure you were impressed that he laid out very clearly what his intentions were today with the taper, with inflation, and with rates. what did you come away with? >> you're right. he did an absolute masterful job. >> i knew you would say that >> i want to echo what steve was saying in that he really was turning the page or moving from one act to another act in a play they set down the markers for

tapering last december when they said substantial further progress so we have been living in that act. he drew that act to a close. they will have to be doing tapering for the next six, eight months but officially, he started a new act today, which is a humble, risk management dynamic. he's very open minded to a powerful economy, and he wants that he's also open minded to the notion that inflation doesn't come down as quickly as they expect so he's willing to go either way. be fully patient in letting this economy heal, but also lean against inflation if it's persistent so i'm agreeing with steve i think he did a job right in the middle, risk management, masterful. >> so david, if he's a master in doing such a good job, i guess you'll be hoping he keeps that

job. is that your expectation and your hope? >> i think for the market, it would be better if he keeps his job. i think bringing in a new fed chair always brings with it some tests of their credibility and some risk. we have been highlighting that in some of our notes i don't think it's a done deal, by any means, but certainly i think his performance today, you know, i don't always agree with powell, but i would say his performance was strong today, and much better than the last september fomc meeting where he seemed quite flummoxed by the scandal. he had the scandal under control, they did this significant change in trading restrictions that looks like it would satisfy pretty much anybody in congress or the administration so i think he sits in a better place today than he sat last time and that's a good thing. one thing i would say on policy about what steve said, and i think steve said something really important, which is that

he did not push back on a near six-month move in the first rate lift-off since the last fomc or say back to jackson hole when he was even more dovish we got a very significant repricing at the front end, and he didn't really say no, guys, you're crazy so to call it really dovish has to put it in perspective of where we have come from over the last six to 12 weeks, which is a pretty significant change in front end pricing. i do think the market was relieved we didn't get some sort of bank of canada rba, bank of england style catch-up move and we have seen a lot of central banks go a little extra hawkish, so probably the market reaction is more that he didn't do that and that's great, but he did endorse a pretty significant repricing, which is really important. >> yeah. about two rate hikes priced in by the end of next year. sarah, of course, there are

always critics, and there are some loud ones now who think this inflation is not transitory that it's aggressive and that it's worrisome, and it's disruptive, and that the fed is behind the curve what's the risk of that? >> and you actually heard in a lot of the questions, at the press conference, that the price increases hurt households. i mean, you can call it transitory, you can call it expected to be transitory. you can say this is something that is not going to be, you know, not going to be long lived and permanent, and yet it causes pain now it causes budgets to be strained now. and this is not an easy time for many households. and so to be dealing with price increases now and strains on the household budget is not an easy thing. and so this is really where the ability to communicate about why what the fed does matter, why this is really not a set of

theoretical concerns but one that really goes to a sense of, you know, personal financial wellbeing, is really like this is the moment. these are the kinds of -- these are the kinds of pressure points that the fed is under and that the fed needs to do and tries to do a job, a good job in communicating the sense that it does connect with households it does connect with the sense of personal and family wellbeing, and that it must. and so you do hear that, and this is a hard time for many families >> paul, what are the chances of a rate hike in the first half of next year? >> i think it's pretty low i think you could see one signaled in the first half of next year, which would then follow a tightening in financial conditions so the fed doesn't actually have to move the fed funds rate to effectively get a tightening of

financial conditions they can rhetorically doing that, so i think there's a possibility that they could rhetorically tighten in the first half, but actually changing the fed funds rate, i don't think so, because i don't think it's actually necessary. i think they're very open-minded about the possibility, and also i think it's very important that mr. powell said that he doesn't know what maximum employment is and that he's going to be open minded and humble and let the data tell him. so the notion that we have to get back to where we were pre-pandemic is no longer on the table. he's going to let the data tell him what full employment is. >> thank you to sarah, paul, and david for joining us today to discuss what is now the session highs reaction to the fed taper announcement >> buying stocks, selling bonds, and the dollar we have a big hour of earnings coming your way.

etsy, electronic arts, roku and more set to report and as we head to break, a check on bonds ten-year yield around 1.59%. session high was just above 1.60%. no change in the fed rate hike probabilities in the bond market still expecting first hike around next july we'll be right back. sales are down from last quarter, but we're hoping things will pick up by q3. yeah... uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade

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on the heels of a strong earnings report. the luxury fashion company beating on the top and bottom line and raising the full year outlook, saying it's confident in the growth opportunities for versace, jimmy cheu, and michael kors and check out footwear company allbirds priced above expectations at $15 a share, and is now almost a double in the first day of trading, up 91% hoping to capitalize on investor interest in sustainability, yet the company has yet to turn a profit jim cramer talking about allbirds and you can go to cnbc.com/investingclub to learn more or point your phone at the qr code on the screen. >> lyft, zillow, and bed bath & beyond huge movers today. we'll hear commentary from those company's ceosexinhe rket zone.

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plus some of the lowest options in futures contract prices around. get e*trade [ding] and start trading today. in the trading day we're now straight into the closing bell market zone commercial free coverage of all of the action going into the close. mike santoli here to break down these crucial moments of the trading day. we also have josh brown back we'll kick it off as always with the broader market stocks are rallying after the federal reserve's news conference this afternoon. any close higher for the dow, s&p 500, and nasdaq and russell 2000 would mark a new record closing high, and it looks like we're going to get there i know you took off for your birthday yesterday, but we got

that quadruple record, the russell caught up, and it doesn't seek like investors are shaken quite the contrary by what the fed was saying >> it did so quietly with low drama, which is what i like when i'm not here, because it seemed like nothing got thrown out of whack. >> quiet with low drama. >> yeah, that's true i try to do what i can i do think it makes sense if there was a removal of a slight potential negative in the fed's approach and powell's press conference, i don't think anybody really thought there would be that much deviation from an orderly taper and no real specifics on rate hikes, in other words, trying to separate the taper from the tightening eventually, but there was enough kind of tension in the air because of the way bond markets have moved beforehand that i think it just released the market to extend its trend this is not the beginning of anything we're up 8.5% in 30 days in the s&p, up 11%, 12% on the nasdaq 100. this could be, let's finish off the move in the short term we also get a rethink the next day after the fed meeting, but

the trend is a friendly one right now. >> from quiet with low drama to josh, who i hope won't disappoint in the other end of the spectrum >> not quite, lots of drama. >> what's your take, josh -- >> that dry british humor. >> hurdles over what was potentially another challenge, which was this announcement, and we're off to session highs again, record highs. >> yeah, frosty, who has been telling you since the summer that the taper would be greeted by some combination of a yawn and relief who has been saying that not a lot of people. >> you have, loud and with plenty of drama. >> listen, i'm not like a macro genius i'm not very good at seeing things coming, but i have a pretty good feel for like investor behavior. because that's what i do for a living we talk to investors all day i really did not think, and i haven't for a long time, that this was going to be a quote/unquote event. it's a bigger event for the people who make content about

the fed than it is for the people who are actually investing and trading. so i think everything that was announced today was pretty reasonable and was right up with everyone's expectations. but i think the story right now is really about analysts were too pessimistic about the numbers that have just been reported for q3. they started to lower their expectations toward the end of the summer, and that turned out to have been wrong companies are really weathering these supply shocks and labor shortages and price increases better than most of us, myself included, would have imagined. and now, you're in this situation where you have got behavior normalization on a grand scale. lyft just told us that, they told us that people are getting back to their normal lives they're taking lyfts back out to dinner, weekend stuff. they're going back to airports so that is exactly what we're seeing when we look at the retail space look at the xrt up 3% today. look at nordstrom, plus 4%

macy's, plus 7%. highest level since early 2019 dick's is going crazy. my stock, simon property group, forget about it. forget it. it's gone. it's up 100 points from where we were talking about last summer and now the transports are rocking. so people's behavior is normalizing. the russell is busting out the materials are busting out. the airlines haven't been doing anything for weeks now they look like they want to break out. if you just understand these two things that we're weathering high prices better than expected and that people's behavior is normalizing, it keeps you in this market and not obsessing over $15 billion in taper versus $20 billion or whatever. that's really what we want to focus on >> meanwhile, shares of lyft rallying on the back of big earnings this was just referenced cofounder john zimmer was on "squawk box" earlier today talking about the return of drivers to their fleet >> you zoom out and look at retail hospitality and other

industries like that where we compete for talent, going back to january, our active driver pool is growing five times faster than those other industries because of the flexibility. so we're still coming out of a pandemic, and the marketplace has to get to the right service levels, but we're happy with what we're seeing and we're confident we're going to continue improving service levels >> what is your positioning, josh, in lyft and uber >> so i'm in uber. uber is having a decent day, not as good as lyft. uber is going to report thursday they will not be reporting a profit the way that lyft did, i don't think. it would be a surprise if they did. based on their guidance, but part of that is because they're still expanding in food delivery and food delivery is an unprofitable business. they also have to write off part of their stake in didi, which was another chinese disaster, and so that will be another count against them so i don't expect a great number out of uber this week.

so to speak, but i think the outlook is going to be very bright for a lot of the same reasons that were cited by lyft. so that's the name that i'm in i do think the trend is higher for both delivery and ride share, and uber is going to have a lot more to say on that subject so i'll be listening >> including more drivers which lyft saw, which is always helpful. zillow plunging today after posting a big quarterly miss, both on the top and bottom lines. also announcing plans officially to exit the home buying business because of an inability to accurately predict prices. the company reported a pre-tax loss of $422 million in its home segment. said it would lay off 25% of its workforce. remember, ceo rich barton joined our show yesterday right after that news broke to discuss the decision >> now, we have seen a growth rate, an acceleration rate in the housing market that we never witnessed before in history, and as you can imagine, that has

made predicting the price of a home six months into the future difficult, and we're doing it at a scale one tenth of what it needs to be to get to the scale we need to achieve to offer good prices so we step back, we assessed, we looked at the volatility in our earnings that we're reporting today, and we said, hey, we don't need to be doing this. >> taking the stock back to levels we saw over the summer of last year. i mean, it's been brutal, not just today, but in the lead-up to all this, with all the news reports about this home buying flop how is the stock valued at this point? >> look, it's valued a lot less aggressively than a little while ago. there's been a massive misallocation of capital to the company's credit, they're trying to mitigate the longer term effect of it. what's fascinating is this was exactly the outcome that i think the kind of casual observer might have had when they announced this deal. like the idea that you could have an algorithm to make a market in houses and get big

enough that it would actually be profitable the best explanation from the beginning is they want to get fresh prices into the market, almost as a service to clients so that creates a knock-on effect for their content it seems, no, they expected to make a good return on trading houses and it's really not the case right now >> this looks like a give-up trade right now. >> i want to ask santoli, you know the brokerage business and the market maker business really well they're talking out of both sides of their mouth in this explanation. you can't say that you're trying to predict the price three to six months out of the homes that you're buying. you can't say that on the one hand and say we're a market maker, we're buying and selling. market makers aren't sitting with inventory for six months. which is it? if you're saying it's a market making activity, you can't really do that with something that moves as slowly as the housing market, so from the start, that premise was flawed if you're saying, hey, we have this sick algorithm, and our

rocket scientists in the back figured out where homes should trade, that should almost be like a hedge fund business, if that's what we're doing. so i think they have a lot of confusion. >> don't you like the stock, josh >> i did i got a loss in it very quickly. and i really thought that the buying made sense, but now the deconstruction of why it didn't work says to me, hey, idiot, you should have realized there's no such thing as market making in an asset like this nor is there such a thing as predicting the future. i got the stock wrong, sara. i haven't been in it for a couple weeks, but i just listen to the explanation and there was like a logical flaw embedded even from the start. >> i agree with that i think the issue is that if you're trading anything or making a market on anything, you can only be so big in a given market, and zillow, they were too much of the activity in some

markets like phoenix, and kind of a self perpetuating thing, and someone with a trading algorithm is going to make sure they're not too big of a percentage of the overall volume, and it's not possible. that being said, it's about as low a price ratio in zillow as it's traded at ever, so clearly, a lot of froth has been swept out. >> clearly, josh wasn't the only one disappointed by that announcement of why that business went wrong for them it's continued to sell off yesterday, last night after the analyst call, after our interview, and throughout the session today. down 25% now, popular meme stock bed, bath, & beyond moving in the other direction, after the announcement of a digital marketplace to sell things from third parties in a new partnership with kroger. mark tritton announced the new kroger tie-up. >> it's a clear entry point for both our bed bath brand as well as the bye-bye baby brand to

reach out to a rider range of customers and be the dominant brand in the u.s. around the bed and bath category. so home and baby categories. we see that being tapped into a much wider customer base, and in some cases, a wider geography base is a big win for us and creates that authorities and gives kroger key brands and key statements and key banners they can utilize to also create authority with their customer. >> bed, bath, & beyond also said their $1 billion buyback program was ahead of schedule, but tritton told cnbc the company will be cautious about purchasing shares at the elevated level a little off its after market highs last night >> kroger up 5.5%. we have two minutes to go in the trading day. mike, what do you see as we look at records all around. >> pretty strong, even when the index was flatter or slightly negative, the internals were relatively strong. 2 1/2 to 1 just about volume split in favor of advancing stocks

small caps leading, that's often the case here. take a look at the russell 2000, year to date, a pretty assertive breakout nothing says you can't go back into that range, but this lasts seven or eight months and we finally did get out of it. you have biotech names as well as financials helping out. you have historical strength in the end of the year voltatility index dipped now it's at 15 there was a lot of clinching up ahead of the fed meeting, and you have a jobs number on friday, but it might not be considered that much of a volatility catalyst. right now, back at the floor for the year >> oil is the only really big significant decliner today, down about 5% wti, and below $80 per barrel for the first time in a while. that means energy is the worst performer sector three are in the red, energy down 0.9%. the others are higher. we're pretty much at session highs, which are, of course, record highs as well

.75% on the s&p, and the nasdaq up 1% as we approach the close, just 20 seconds left of the session. there goes the bell. yields higher across the board following the dovish fed announcement pretty much at session highs, and indeed, record highs >> second day in a row, all four major averages closing at a record high. welcome back, everyone, to "closing bell. i'm sara eisen here with wilfred frost and mike santoli, cnbc market commentator the dow adding 104 points, about .3%. as you can see by the intraday chart, the fed pours fuel on the rally and turned the dow around. goldman sachs the biggest drag united health care, the biggest contributor. along with nike, amgen, and home

depot. s&p 500 rallying .6% consumer discretionary in the lead along with materials, staples, and technology. a mix of some of the defenses and the growth names and some of the cyclicals as well industrials, energies lag. nasdaq up 1% a record high for the tech heavy nasdaq as well you really saw some strength in some of the earnings movers like t-mobile, we had the ceo on yesterday. up 5.3%. overall, a good day for tech, and small caps join the party again, and actually performed the best, up 1.8%, closing at a record high. investors are now bracing for an enormous hour of earnings. get ready. qualcomm, roku, booking holdings, etsy, take two interactive, electronic arts they're moments away from reporting. we have instant analysis of all the numbers coming up this hour. plus, ev maker fisker also on the earnings calendar ceo henric fisker will break down the company's results in an exclusive interview a little later on in the hour

first up, on the market, josh brown still with us, preea misraw joins the conversation, first to you, mike, on what continues to fuel these records after records in the market. is it earnings, the fed, all of the above? >> it's the removal of perceived potential negatives is creating this embrace of risk i do think you have really a reheating of the speculative flows that have come out because earnings have been solidly better than expected and giving you enough to feel as if there's upward room for revision in the next couple quarters at the same time, just financial conditions remain loose. so the fed not stepping in the way of that. you look at credit spreads, extremely tight. all that stuff working together with the seasonal effects, i do think that explains a lot of what's going on, but just to reiterate, this didn't just happen this is the 13th month in a row we hit a record high in the s&p 500. we rarely had a longer streak than that, and we are up 8%, 9% in 30 days so nobody should be surprised if it flattens out and cools off a

little bit >> preea, where is the market settled on expectations for the first rate hike following this afternoon's central bank action, and what's your expectation? >> sure, so the market has been pricing in right after tapering ends, we're pricing in the first hike in july '22 our view is much later than that, in the second half of 2023 but it's really not so much about the fed reaction function. it's our view on the growth. we think there's a significant drag next year and a lot of the growth this year will fuel through that fiscal stimulus through reopening as some of the transitory forces abate, we think that it's going to take a while for the fed to reach that maximum employment so our forecast for the first fed rate hike is much later. i think what we heard from chair powell today was certainly tapering, but that was priced in, but he pushed back something that was very risk positive. he pushed back against the idea that the market or inflation was forcing the fed' hand.

this is sort of a global issue, i think global interest rates have been pricing in sooner exits, and what we heard from chair powell was clearly we can be patient the baseline outlook is inflation is going to deceleration, not right away, but in 2022 when it starts to decline, the fed will be vindicated in terms of being patient on the exit, and pushing back against the idea of a policy mistake, that they're behind inglobal inflation, which is why i think the market has taken this to be a bit of a dovish tapering. >> we are starting to get earnings streaming out electronic arts just out frank holland with the numbers >> shares of ea up about half a percent. the company beat on revenue and posted eps of $1.02 a share. we're not comparing that to estimates. right now, you're seeing up .5%. the company expects its battlefield 2042 game to be a driver of sales in the holiday quarter. that game was pushed back to next week. it was originally supposed to be released back in september so far, i talked to michael

pacter, video game analyst at web bush he said the beta test of the game, they have not gotten great reviews so far, still the company has high hopes for the game there will hopefully be a continuing franchise, similar perhaps to gta for take two. shares of electronic arts up half a percent after a beat on revenue, eps of $1.02 a share. >> frank, thank you. in general, how has the space been reacting to some of the reopening and the fundamentals we're hearing off earnings >> it's been struggling. activision was down 14% today. not a good report. that probably softened up ea a little bit ahead of the response that's why you perhaps some relief i'm not sure if it's pure reopening. the preordering trends haven't been that great. depending on where we are in the release cycle. and the stocks used to trade as a bigger premium than tay do right now, so who knows if that's longer term or an opportunity for them >> priya, what are your expectations for the dollar from

here i guess we're seeing it have a bit of an effect on oil prices of late. will it continue to rise >> right, so our view is that it's likely to fall because we have a much later start to the hiking cycle from the u.s. i mean, there was this idea that the u.s. exceptionalism was going to help the dollar, but what we're not seeing is the global central banks might be faster to exit, certainly the bank of england, the bank of canada, than the fed we think the labor force participation dynamic is going to hold the fed back because they're still waiting for people to re-enter the labor force. we do think people are going to re-enter the labor force, so all that could justify the fed being later. if they're starting out a bit later, that can actually weaken the dollar so that's going to be positive for financial conditions we have a bit of a more negative view on the dollar over the next year >> let's get qualcomm numbers. josh lipton.

>> qualcomm reporting q4 results hereby eps of $2.55 that's versus $2.26. revenue, $9.32 billion verses expectations of $8.8 billion beats on the bottom and top. q1 guidance also better than expected and $10.8 billion in revenue versus expectations of $9.7 billion. qct, the chip business, $7.73 billion, versus expectations of $7.2 billion licensing in line with expectations looking at the revenue streams here hand sets up 56% rf up 45%. automotive up 44%. iot up 66% back to you, wilf. >> josh, thanks so much for that don't miss, by the way, the ceo of qualcomm, "squawk on the street," tomorrow morning. josh brown, i'll come to you on this one

where do you stand within this space? are you pivoting back at all to any of the older names versus the nvidias? >> nvidia is like one of my largest holdings in tech, period have been in the stock almost seven years. it's really the one i have been most focused on. i don't really follow qualcomm closely. it's great company i hope they get it together. stock has been in a down trend since february, in an environment where most semi-conductor stocks have been ripping all year so that's been a tough one i'm not that interested in the areas that they work i'm really interested in more cutting edge technology and nvidia seems to have pole position in every industry that going to define the next five to ten years in this world, quite frankly. so that's what i'm doing and not a lot of deviation there. >> i just want to hit on bird, the stock of the day, allbirds

going public, oversubscribed, above the range, prices above the range, and doubled in its market debut my favorite factoid about the cofounders and co-ceos, tim brown and joey is their background one was a professional footballer from new zealand and the other is a professional engineer who is an expert on renewables clearly, there is a market for a truly sustainable business they don't make sneakers like this, like allbirds. what's your take on the stock and the move >> well, i love the story, what they have been able to do. they really built this direct to consumer i remember like the first instagram posts that they were putting up of the shoes. and i think i was wearing them in '15 or '16. my friend mike murphy was an early investor and he put me on to them. i followed them on instagram and became a user. they were very good at doing that, and i like the response the market gave this it's not my type of investment

i try not to bet on fashion. it's just not something that i'm particularly good at but i just love that the shareholders were rewarded, the customers were rewarded. the founders, the early investors. and it's something that, like, it's a product people love, and it's a better way to manufacture clothing than what the global standard is. so hopefully other large companies in the apparel space look at this and use it as a model for their own efforts. >> well, they partnered with adidas which is also interesting because it shows you adidas cant necessarily do that technology by themselves. we're getting breaking news out of washington on the spending bill ylan mui has the news. >> sara, house democrats are out with a new proposal to address the cap on state and local tax deductions this is in the legislative text of their updated social spending package and it would increase the cap on s.a.l.t. from $10,000 currently to $72,500

that new higher cap would last through the end of the decade, 2031, and it would be retroactive to this year unclear how democrats plan to pay for this, this has been an extreme point of contention with progressives who were worried that raising the cap could provide a net tax cut for the rich senate democrats appear to be working on their own plan as well for now in the text of the house's new updated social spending package, there would be an increase in that cap on the state and local tax deductions guys >> likely to work, ylan? >> well, it would work in terms of addressing their concerns that so many people are falling, getting caught by this cap and having to pay higher taxes we know that they have been working on this, both pelosi and schumer have signaled this as a priority, but the form of this proposal has been hotly debated over the past couple days, so there's still a chance it could change, but the current proposal is to raise that cap to $72,500

in order to prevent the wealthiest of the wealthy from taking advantage of it >> thanks so much. bookings holdings earnings are out now, and seema modi has those for us >> hey, wilfred, a nice beat on the top andbottom line for the third quarter. the key metric to watch for online travel is gross travel bookings which came in at $23.7 billion. that is a 77% increase from the prior year quarter and a sesequential improval in trends which the ceo says was primarily driven by better results in europe, revenue in the third quarter, $4.7 billion, which was more than double the amount of revenue recognized in the second quarter of 2021 bottom line, the recovery in hospitality really being led by leisure travel average daily rates continue to rise that's giving pricing power to the hotels and online travel operators. the stock surging higher in extended trade, up 6.7%. ahead of next week, wilf, where the u.s. finally eases

restrictions on fully vaccinated foreign travelers. we'll have the ceo of booking holdings joining us tomorrow morning on an interview on "squawk on the street. back to you guys >> seema, thank you. looking forward to that. >> roku earnings are also out. market not liking it julia boorstin with the numbers. >> market not liking it at all you see that stock plummeting in after hours trading. the company beating earnings estimates, 48 cents estimated revenues falling shorter than expected, missing estimates by about $3 million there were a couple other key factors weighing on that stock, including revenue guidance the company guiding to $893 million as the midpoint of q4 revenue versus estimates of $944 million. so that's a key factor weighing on the stock another key thing here is that active accounts fell short of expectations, 56.4 million instead of the 56.7 million

expected average streaming hours also less than expected at 18 million instead of 18.3 billion, average revenue per user in the quarter did beat expectations, topping $40 for the first time but it really does seem to be that revenue outlook that is causing the stock to plummet more than 10% in after hours guys, back over to you >> thanks so much for that one down 10% meanwhile, fiskers numbers are also out phil lebeau. >> take a lack at fisker this is a prerevenue company they're not going to have revenue, true revenue until they start selling their first models next year. for the third quarter, they lost 37 cents a share a little weaker than expected. they had a very slight revenue of $15,000, basically zero the outlook, it's mixed. expenses for the full year coming in higher than expected, but the expenditures, the company says they're going to be cap-x at least will be lower than expected. don't forget, coming up later on this hour, we will talk with henric fisker, the founder and ceo of fisker.

we'll talk not only about the q3 results but more importantly, what's the outlook in terms of building that first model, the ocean suv, that's coming up a little later on. you don't want to miss what he has to say back to you. >> we won't. we will be right here, phil frrx that we look forward to it later in the show pivoting from fisker, josh brown, to another ev company what do you make of the latest surge in tesla >> i mean, it's the kind of stock where it almost defies logic, reason. this is a stock that will rally on the rumors of an announcement and the announcement happens, it will have an equal or greater rally. and then the founder will come out and deny that the news even occurred, and the stock will go up even more so i don't -- i don't think that my views can even be helpful in a situation like this. i think the smartest thing to do is accept the fact that there are tens, maybe hundreds of millions of people who want to

own the stock almost no matter what, and they will not be stopped. and sometimes you just have to live with things that are incomprehensible to you, and all of the automakers who are combined smaller than tesla have had to live with that reality for, i don't know, five years now. and i see no reason why it would stop anytime soon. so i enjoy watching tesla just like the rest of us. >> another good day, up 3.6% josh and priya, thank you both for joining us >> roku shares getting rocked on weak revenue guidance as we just showed you the stock is the biggest holder in investor kevin landis' techfund we'll have him join us next to work out if this 10% pullback is a buying opportunity >> plus, we'll get the outlook for the ev industry in a breakdown of fisker's numbers as we mentioned when we're joined by henrik fisker later in the show

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kristina partsinevelos with the numbers. >> we're seeing earnings per share, a beat. 62 cents stronger than what the street was expecting on revenue of $532.4 million. also a little higher than what the street was expecting at $518.9 million however, you're seeing the shares down about 1% that could be because the active number of new users did decline for this quarter that came in at 7.4 million new buyers so these are people on the website, last quarter it was 8 million. the quarter before, just over 9 million. we're starting to see this downward trend the company did acknowledge that, but they did point out gross merchandise sales excluding face masks because that was the most popular item last year, was up 23.7% year over year. see people are spending more, those that are acchaet active buyers overall, a top end bottom beat for etsy shares down a little over 1% back to you. >> thank you also guidance coming in, in line

with expectations, and don't miss an exclusive interview with etsy's ceo tomorrow morning on "squawk box. a little more color because they're giving guidance on the holiday quarter. something etsy is trying to do is distinguish itself from all the other retailers that are depending on the complicated, choked up supply chain they say 83% of their sellers are 1%, 97% of them are working from home, and the sourcing of raw materials is hyperlocal, they say in the u.s., half source materials within their own state. in other words, they don't see themselves having the same problems as otherretailers getting goods shipped on time and they added all sorts of features so you can see the estimated time of delivery you can also filter out where it's coming from, which state or which country, which they feel will give it an edge in the holiday shopping season, which is turning out to be a little chaotic with most retailers warning on the supply chain. i wonder if investors will get a credit because the stock hasn't

really been doing much >> it's sort of gone sideways for quite a bit right now. obviously, it's still digesting the huge move during the pandemic it seems the point they're not kind of going up against the same huge hyperscale retailers for the same products that are on boats offshore probably is going to resonate. >> people are into that as a decor item >> roku shares, let's hit that, falling pretty hard. down more than 9.5% now. they were down more than 10% a moment ago on the back of earnings that beat on earnings and missed on revenue, and the revenue outlook came in lighter. joining us is kevin landis, and as of june, roku with the largeings position in his opportunities fund streaming hours also coming in less than expected and active accounts missed the mark what happened here >> well, i think i'm going to do what everybody else is doing and blame supply chain and disruptions in covid

uncertainty. look, i think you want to be on the right side of the cord cutting and streaming trends, roku has been the place to be for years now. stay-at-home trade came along sort of accidentally and helped it, but it also just kind of added a huge amount of volatility and uncertainty, and so now they have a miss. and a quarter that looks kind of chaotic, and it happens sometimes. still a good story >> other threats starting to come into play or bigger threats than they faced in the past for rival smart tv type setups we have seen one announced by our parent company, comcast, for example. >> right so this reminds me a lot of kind of their once upon a time, their parent company, netflix, kind of getting in the middle of these things and having to fend off bigger companies coming in with different offerings. you know, roku has kind of got a little bit of a squabble with

google right now or with youtube right now. and it sort of reminds me of netflix when they were squabbling with walmart. the trick for a small dedicated, focused tech company is to try to be everybody's partner and not go around picking fights with people and embrace the people who look like they might be your rivals find a way to partner with them and work with them i think they're doing a pretty good job of that they try to be everybody's partner and nobody's rival >> okay, kevin, thanks for joining us sticking with it despite a disappointing earnings release and down 8.5%. after the break, lemonade in the driver's seat. insurance company is looking to take on the likes of geico and progressive with a launch of its latestroct we'll speak with the ceo next.

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lemonade rallying today after announcing the launch of its car insurance pramp. the company plans to tailor rates to each customer through the use of technology on its app that measures how much and how safe an individual drives. it will also offer discounts to people with ev and hybrid model cars as well as low mileage drivers. despite the move, the stock has had a rough year with shares

down more than 40% let's bring in ceo dan schreiber, who joins us exclusively. the day is finally here. who could have predicted that you're entering the auto market? >> it's a fantastic day for us, a big celebration. with exception of yourself, nobody predicted this, of course joking aside, just 16 months ago yesterday, we were just a homeowners insurance company, and today, we stand with homeowners and pet insurance and life insurance and pretty monumentally as of today, car insurance too. so it's been a transformative few months, and today, a very festive day for our company and for our customers indeed >> so just illinois initially, why there? and how quickly might you roll out nationwide >> so we do plan to roll out as quickly as regulators will allow. so this is a state-by-state regulatory approval process. we have given a nod to tennessee

as the next state, butulo rr see them going out rapidly, and it's really using technology in a way that the industry doesn't today, allowing people to get much fairer prices, reflective of how much they drive in a way that incumbents that you mentioned like geico and progressive struggle to do, and also an environmental impact component as we track the miles and how you drive, we're going to tally up the carbon footprint that your car emits and plant trees in an effort to offset those emissions. so quite a few transformative technologies and services involved in this product that the industry hasn't seen to date >> what is the transformative technology, though, your edge in terms of underwriting the risk of auto insurance that the big guys aren't doing? >> yeah, so the telematics technology, as it's known, which is using all of the senseors in the phone, to monitor how you

drive, how frequently you drive, where you drive. now, just in the last annual meeting, warren buffett spoke about this technology, and what he said was, and i quote, geico entirely missed the bus. they absolutely failed to see and adopt these kind of technologies and it's not because incombnlts are unaware of these capabilities. of course, they know and follow these things closely, but this is actually not good news for them if you have a huge book of business, 10s of billions of dollars invested in pricing people to some kind of average, then this technology is destructive, disruptive to you because what it suddenly shows is about two thirds of your customers are paying too much, and the last thing you want to do if you're warren buffett is give a 30%, 40% discount to two thirds of your customer base then the other third are being subsidized by them, they're paying too little and you need to raise rates for them, and then you get churn and lose the business there as well it's a damned if you do, damned

if you don't value proposition for incumbents, but for us without that legacy, this is truly transformative, allows us to price in an accurate way to rate and risk in the way the industry doesn't and doesn't want to. >> dan, you have had a great first 16 months since going public and you have proven people wrong and moved from renter's insurance to home insurance, but is this step the step that comes with the most challenges is this the most competitive market you have launched into yet? >> i think so. i think we're up against incredibly serious competitors geico and progressive among others spent over a billion dollar as year just on branding and advertising. suffice it to say we spend less, so we are very much the upstart, the challenger coming up against companies for whom we have tremendous respect, which is why we are relying on technology and social impact and other components that are difficult for them to lean into, but i

think are very much in tune and in step with the times that we're in our leaders around the world are today gathered in glasgow, trying to figure out how to manage and cope with environmental disaster of our own making and coming along with an insurance policy that offsets carbon emissions, that gives discounts for electric vehicles and hybrids, that insures the charging equipment that home that gives roadside assistance if you run out of charge, all these things that give discounts to low mileage drivers, they're in step with the time, and are our response to the incumbency >> stock did well today. 5 5.4% we appreciate you joining us on a big day. >> thank you so much >> ceo of lemonade >> up next, we'll ask a council of economic advisers member from the biden administration how the fed's decision to start tapering and adjust its inflation outlook will impact the economy. and later, the ceo of ev company

fisker will join us to break down his earnings results. that stock has been on a tear g th the whole ev space. we'll be right back. retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better.

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today's after hours earnings movers qualcomm earnings popping after a top and bottom line beat electronic arts, higher on the revenue beat bookings holdings surging on much better than expected profit in sales roku under pressure. a top line miss and weak guidance sees it down 8.5% etsy lower, only slightly, despite beating analyst estimates. though not on that page. at this time, a cnbc news update with shepard smith >> hi, wilf. here's what's happening. a giant step forward to get out of this pandemic that from president biden just a few minutes ago, as he made remarks about kids and vaccines. the president saying the vaccine will be available in about 20,000 locations across the country and there will be enough shots for all eligible children by next week mr. biden also announcing 20 million americans have received a booster shot paid medical and family

leave is apparently back on in the massive social spending bill on capitol hill. house speaker nancy pelosi made that announcement today. two sources say it will have four weeks of paid leave, but joe manchin is still not onboard. he objected last week so they took it out. now that it's back in, manchin said late today he's still opposed. >> and aaron rodgers reportedly tests positive for covid the green bay packers quarterback will now miss at least this weekend's game against the chiefs it's unclear whether he's vaccinated back in august, when asked about that, he said yeah, i'm immunized. head coach was asked about that today in a news conference he said, that's a good question to ask aaron rodgers which reporters already did. if he's not vaccinated and does have covid, he's out for at least ten days under nfl rules >> tonight, robocalls and spam texts. we all hate them billions of them flooding

inboxes and voice mails every year tonight, we'll hear from an expert about how to stop it once and for all on the news right after jim cramer, 7:00 eastern, cnbc sara, back to you. >> that sounds useful. thank you. i hate those things. shep smith the federal reserve announcing today it will begin tapering bond purchases and will leave interest rates unchanged as expected fed chair powell saying this will allow the labor market to heal further also acknowledged the pain people are experiencing with inflation. listen >> we can understand completely that it's particularly people who are living paycheck to paycheck are seeing higher grocery costs, higher gasoline costs when the winter comes, higher heating costs for their home we understand completely what they're going through, and you know, we will use our tools over time to make sure that that doesn't become a permanent feature of life. really, that's one of our principle jobs along with achieving maximum employment

>> joining us, heather boushey, a member of the white house council of economic advisers welcome, heather good to see you. do you think as the federal reserve now begins to scale back its stimulus, that will hurt the economy? >> here's the thing, at the white house, we do not comment on fed policy. i want to be very, very clear on that of course, they have said all along that the pace of the recovery would drive their decisions on paring back their asset purchases. i want to point out something else that chairman powell said today, which is that, you know, the inflation that we're seeing, they believe is being driven by the supply side bottlenecks thrk supply chain issues happening across the economy because of the pandemic, and that's it really still is what's going on here i remain very optimistic you know, we have seen a lot of growth in this economy over the past year. since the president took office, we have created 5 million jobs, unemployment rate is now below 5% and we're on the cusp of being

able to build on that success through putting in place the build back better agenda and the bipartisan infrastructure deal that the president has worked so hard on. and these combined are really going to go a long way towards making sure that we take where this recovery is now and shore it up for the future >> but as you said, we are facing unprecedented supply chain bottlenecks and shortages and delays and inflation is at levels we haven't seen in years. so how much do you think that is costing the american economy and will continue to do so >> well, here's the thing. we know that this is -- this was always going to be tough, recovering from an historic pandemic and of course, as delta, you know, came at the united states over the course of the summer and early fall, that added to the challenges all of which has really made the supply chain bottlenecks tough you think back to a year ago, where the economy was, just how bad things were with mile-long lines at food pantries across the country and people really

worried about how much their thanksgiving turkey was going to cost we have come a long way, but businesses have had to make a series of decisions, not knowing the shape of the pandemic. now that we have the vaccine and the president announced today children will be able to get the vaccine, younger children will, this is all helping our economy to recover, and as we work our way through it, i'm very optimistic that prices will start to come back down. we'll start to see markets realign as supply and demand get back into alignment. >> as monetary policy stimulus is reduced or removed in due course, is it more important than ever that fiscal stimulus gets increased >> well, at this point, you know, given how much the economy has recovered and the unemployment rate has come pretty far down, the most important steps to take are to put in place the historic packages the president is focused on that are designed to boost productivity, make the investments across our economy,

to maintain growth and really importantly, make it possible for millions of people to participate in the labor force because we will be addressing many of the challenges families face with care so i think that is really the next step we need to take to make sure that the economy is on a sustainable path of course, alongside all of the incredible work that is happening right now in glasgow as a part of the climate conversations that are happening that the president has just returned from. >> so i wanted to ask you about that in particular, heather, because president biden made a big deal that he's there, and he criticized some of the other leaders like russia and china for not being there as a strong statement, but i'm curious just how much the u.s. is doing when it comes to fighting climate change, as the richest and one of the biggest, you know, polluters in the world can't get the climate bill passed months of wrangling among the democratic party we don't have anything like a carbon tax on the table because of some of the promises the

president made about not taxing people who make under $400,000 so where's the progress, where's the proof? >> here's the thing, let me say a couple things about this first of all, there have already been some historic announcements that have happened, you know, just actually today in glasgow you know, so for example, we have seen about 450 firms come together through the glasgow financial alliance for net zero carbon that has come together representing 130 trillion, that's trillion with a "t" dollars in assets to commit to net zero carbon by 2050. that's a historic next step, historic accomplishment, and it really does speak to the power of the strategy we're employing here, which is you need public action on climate change, provide direction, to provide goals, and you need private action and these things need to come together to have the economy move forward and that's what the build back better agenda has always been

about, making these investments in infrastructure that are going to green the economy, they're going to crowd in that private capital, and making the kinds of investments that cost the economy that are going to support innovation and new firms and new jobs across the economy, taking advantage of the opportunities to move to net zero carbon. >> yeah, just so politicized here, heather. thank you for joining us we appreciate the time >> thank you heather boushey from the biden administration >> next up, the ceo of fisker breaks down his company's results. "closing bell" will be right back [uplifting music playing]

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♪ ♪ principal. for all it's worth. shares of fisker slightly higher right now after reporting earnings earlier this hour let's bring in phil lebeau who is joined by fisker chairman and ceo, henrik fisker over to you, phil. >> thank you, sara henric, let's talk about the third quarter. loss, as everyone was expecting. how do you feel about the cash burn as you head into 2022 >> i feel really good about it i think that we are spending the right amount of money. we obviously have secured pretty much most of our suppliers and, you know, we have our deal with magna, which is really clear, so there's not been any surprises >> are you confident that you're still on schedule and you will have the ocean in showrooms by the end of next year >> absolutely.

>> by the end ofthex year? >> absolutely. they will be in the showrooms and we'll do deliveries end of next year. one of the advances with our manufacturing plant is they already start next year in the first quarter building two vehicles a day on the prototype line that's a big advantage of having someone like magna doing that. >> but you're going to be building that vehicle over in europe as you know, as you're following what's happening in washington, the new ev tax credits that they are probably going to pass in some fashion in washington, at least that's the expectation, if they are passed, there's a real incentive of up to $12,500 for evs built at union plants here in the u.s and then $7500 for other evs you'll be at a real disadvantage relative to some of the evs that will be out on the market, right? >> no, i don't think so. first of all, i don't believe that bill will pass the way it is, and even if it is, we still have a really well priced car. i mean, the truth is that we cannot reach the goal of having

half of all vehicles in the u.s. by 2030 only with a few vehicles that are produced here in the u.s. and if it's only produced by union workers, so i kind of doubt that bill will pass, in my mind >> one last question project pear will be built in lordstown, ohio. how are the conversations going in terms of the plans for getting that plant up and going and production started there >> it's going great. we're on target with that program. it's really exciting it's a real innovative program, obviously. so we have a lot of innovation discussions right now, also related to manufacturing we want to innovate not only with the car itself and the technology but also the manufacturing, and of course, what needs to come together as well is battery, and we have just announced a battery deal, so everything is running exactly the way we want it >> henrik fisker, the chairman and ceo of fisker. it's a tight day with a lot of

earnings reports we appreciate you joining us and i know you have to go to an earnings conference call sara, back to you. busy day with fisker reporting its q3 results a loss, just a smidge worse than expected but nothing major >> phil lebeau, thanks to you for bringing us that interview, and our thanks to henrik fisker as well. >> the s&p 500 has rallied 7% since the beginning of october up next, mike santoli looking at whether the strong start to the omerle the year is sustainab fr he. we'll be right back. ♪

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there will not be another fed meeting tomorrow i can say that for sure. if the baseline rules of trading the stock market are don't fight the fed and don't fight the tape, it explains this bullish trend. the tape is very, very positive. if anything, maybe getting too positive in the short-term, depending how you draw that trend line we are going to bump up against

the end of it at the 4700 mark this gets us back to where we were on this aggressive move to new highs into mid april it didn't halt the market in its tracks, but it eventually gave back or didn't make much more progress after that final push keep that in the back of your mind it has been a chase of the riskier type of stocks low volatility is holding steady low teens type gains through the year there are several things that have broken out after going sideways retail stocks. banks had done that a couple weeks ago. so clearly it is a message from the market we have to see if in the

short-term that changes. where is the market not working? payment stock, financial platform growth stocks financial data and indices, s&p global and mastercard and visa. these were rising in tandem for years. now we see the market data stuff is ripping a problem in payments. square earnings are coming up. some are falling but not others. keep an eye on that. >> thanks, mike. after the break your earnings scorecard 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.

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a quick check on the afternoon's biggest movers qualcomm leisure travel up 6.75%. roku shares dropped 8.25%. etsy lower despite beating

estimates. buying the dip on zillow >> down another 25%. >> that's part of the game if you believe these are long-term innovators and disrupters, you buy when you get a chance not always going to get it right. sometimes you have to sell something to buy something else. that's the other end much the equation >> we are seeing in your couple days absence, massive single stock moves. seeing it a bit tonight, but we saw it earlier in the week is that short covering or suggesting too much extension to the outside? >> i think there has been a rekindling of some of the speculative flows. some of it is people trying to

triangulate and have more accelerant in there. it goes along with the market seeming like it can't lose in the short-term you can take it at some level. i don't think it's at a critical point, but it finished way off its highs. it's tough to sustain the stock even when you have the company doing a buyback. >> peloton will be fascinating tomorrow the shares have been under pressure for a while we have an exclusive interview with ibm what about follow through on these record highs, post fed and the idea that there is no rush to raise rates >> macrowise, it's hard to see anything that will get in the way. to me it's more when the energy behind the rally phase peters

out. that's more of a tactical thing, not a fundamental thing. the end of earnings season sometimes means you have a rethinking the fed did not give you any incremental reason to worry about tightening >> they are patient on inflation. >> patient will you about not hesitate to move >> that's going to do it for "closing bell. "fast money" begins now. >> overlooking new york city's time squares, this is "fast money. i am melissa lee tonight on fast we have our eyes on another round of earnings movers after the bell. we will bring you the trades and shares of the on line trading somebody seeing their worst day in three years