few minutes from what i understand >> yes, sir. >> coinbase. we know the fundamentals is bouncing off the 20-days the fundamentals and the technicals look strong >> i see that moving to the upside on the back of that earnings report. thank you so very much for joining us today a happy veterans day to all the men and women who have served this great country and, again, salute to our own jim lebenthal and digas wright "the exchange" is now. welcome to "the exchange," everybody. i'm in for kelly evans here is what's ahead the heat is on, hot inflation numbers turning up the pressure on the fed and raising questions about the need and the speed of its taper. we will look at how far behind the curve they might be. plus, it's no secret that auto prices has been soaring are there any signs things are improving? we will ask the ceo of car guru's.com following strong earnings and a stellar rally this year. and earnings exchange. we've got the action and the story and the trade on three key earnings ahead

lordstown, blink charging and warby parker we begin with today's markets don chu with the numbers >> it's the nasdaq composite it is outperforming today. we're up 112 points right now. roughly up about 146 or so points so, again, some interesting moves there, tilting more towards the upside of of the nasdaq it was again a lot of the technology stocks, growth stocks that were triggered to the downside yesterday, somewhat on rising fears over inflation and rising interest rates as well. the dow industrial is now down about one-quarter of 1%. the s&p 500, 4654 there. the stock of the day so far that we want to keep an eye on is rivian, the electric truckmaker in its second day as a public company. now at $123 a share. that's on top of yesterday's

massive gains. that puts the market cap of rivian at roughly $105 billion you've heard it worth more than general motors, worth more than ford, although ford owns an interest in rivian so rivian shares now topping $123 a share we continue to watch to see whether or not any momentum comes out of that trade. and then another one in a more established name within the s&p 500. the second best performing stock in that large cap index today is tapestry we have to say it. it's the company formerly known as coach it's the parent company for a lot of brands like it, kate spade and others up almost 9% right now. tapestry comes out with better-than-expected profits and revenues, and they actually upped their forecast take a look at tapestry shares and by the way a $1 billion stock buyback program has been now added to that particular move here in tapestry. so watch those shares, the consumer on the luxury end of things apparently doing pretty well, enough for them to buy back more stocks, john, and of course up their forecast back over to you guys. >> and i guess they got some

inventory, which is not to be taken for granted in this market dom, thanks. meantime, traders are moving up their expectations for the first fed rate hike following yesterday's cpi number and now new data from bank of america shows bigger in flows to high-grade and high-yield funds. so, is the fed starting to sweat from the hottest inflation reading in 30 years? steve liesman is here with more on the fallout for rates steve? >> yeah, john. heat's on the -- there's talk of the taper even before it has begun. could go faster than first announced. wall street economists speculating that the rapid and more widespread inflation we got in yesterday's october inflation report could prompt the fed to a quicker reduction in asset purposes that would open the window for faster rate hikes potentially. the report has to increase the likelihood that the fend ends up accelerating its qe taper. however, we think the bar for speeding up tapering is quite

high they think december is still on at 15 billion after november the fed itself allowed for this possibility when it announced the 15 billion dollar monthly reduction in the 120 billion in asset purchases this month the committee is prepared to adjust the pace of purchases if warranted by changes in the economic outlook at the current pace, the fed would finish the taper by may. if they stick to their plan of tip tapering before hiking, june would be the earliest possible month for a hike how's the market betting take a look. they put a 36% chance and a 62% chance of one in june. 73% for july expedient taper? there's still time for more workers to come off the sidelines and supply bottlenecks to clear but the window for inflation to come down before the fed has to hurry the process is narrow and closing fast, john >> well, what is the message from the two-year on rates with

all of that? >> right so we're not trading today, john so we have like a point in time here that 51 or 52 basis points on the two year is neutral as to speeding things up if that were to go a little bit faster and go up a little bit more, that would also be an indication, john, that the market is betting on perhaps a faster taper and a quicker rate hike if that number gets up in the 55 or the 60 basis point range. and watch those tip spreads as well >> that's something we can keep an eye on. steve, thank you so, what happens to rates and stocks if the fed does decide to speed up that taper time line? joining me now is vice chairman and head of investment at ariel investments. so, you think that interest rates have got to go up especially in this high inflation environment? >> yeah. i mean, negative real interest

rates make no economic sense it does not make sense to have a 10-year at 157 when we're staring at 6%cpi now we're not going to have 6% cpi for the next four years but i think we're going to have north of 3% for the next four years. so this interest rate makes no sense, and it's mostly the product of government buying in bonds, peoplehiding and using bonds as a hedge nobody is looking at these interest rates as an investment opportunity because it's a negative result. so these rates have to go higher they make no sense on an historical basis all of this talk of transitory has just been wrong. all of the factors pushing inflation are pointing in one direction, which is higher for longer and the government -- the fed needs to stop talking about tapering they need to stop buying bonds and adding to the money supply m2 has gone from 6 trillion

to -- that's a 30% increase. >> if you're right about that and rates heading higher, what's that going to do to consumer sentiment? because already it seems like the consumer feels like the economy is worse than at least the numbers would tell us it is. >> yeah. so far the consumer is still feeling pretty good. they feel good about their job they feel good about their prospect for getting another job. they've actually had a nominal increase in wages, although not a real increase. there's a lot of studies that show that workers do tend to look at nominal wages. and, frankly, they have a lot of pent-up demand they didn't buy any cars during covid and they want to go on trips now. so we think the consumer is in very good shape, which is why we saw a great jobs number. we think we're going to have a good economy but a lot of inflation, higher rates, and that's got real implications for where you want to invest >> yeah, talk about that, growth stocks, what's the impact there? i mean, on one side i guess you could argue if it's truly a

growth stock with good prospects, it's going to grow, it's going to turn in good numbers. but valuations, maybe, not going to be at the levels where they are now if interest rates are that high? >> that's a very important point. i always point to microsoft in the year 2001. they were a great company in 2001 over the next ten years, their earnings tripled, and their stock went down 35%. why? because they started that period at a 45 pe and they ended it at a 13 pe so there are a lot of these companies today that you're absolutely that they're going to do fine from an operating point of view. but the stocks are not going to do well when people start using a real discount rate rather than this very unusual discount rate that they've been using for last ten years. >> so how do you prepare for that what do you put money into if not -- and, plus, i mean, tech stocks are such a big part of major indices, especially the s&p 500. is there anywhere to hide? >> so, big stocks, tech stocks

were a very important part of the s&p 500 in 2001. that was exactly why you didn't want to buy the s&p. you wanted to own value stocks in 2001. and right now you should own value stocks we got lots of great banks trading at 11 and 12 times earnings we have some energy companies. i happen to love apache which is trading at about seven times earnings we have some consumer discretionary names that are tied to the auto industry like borg warner trading at ten times earnings there's lots of good value in value stocks and there isn't much value in tech stocks and there is no value in bonds >> no kinds of bonds whatsoever. people are still -- i mean, they're used to those rules of thumb about how much you should be in bonds. but what do you substitute for what would have gone into bonds for safety in this kind of an environment? >> very, very, very short term fixed income so i'm talking six month cds i'm talking basically cash

so you're going to want to have a very low duration. i know people can't have their whole net worth in stocks. i get that you need to be diversified with real and natural resource companies. i think you can -- actually, this is a time when owning some gold probably makes sense. but i don't want you to have -- nobody should have all their assets in stocks so very short term fixed income securities like cash >> boy, with -- sorry, inflation doing what it is, but still i guess you got to get protection somewhere. charlie, thank you now, coming up, today's singles day shopping event is setting sales records still in china. that could be a good sign for retailers banking on a strong holiday season up next we're going to speak with the head of one company that's tackling taxes for millions of transactions around the world and on deck for today's edition of earnings exchange, we've got blink charging, lordstown motors and

warby parker we will bring the story after this ok, let's talk about those changes to your financial plan. bill, mary? this is "the exchange" on cnbc carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪

starting to get some push back on this concept of the metaverse. but if you dismiss this theme out of hand simply because it doesn't appeal to you or it's associated with mark

> well, the holiday shopping season is in full swing with

cyber monday just around the corner but with ongoing supply issues and rising inflation, this season could look a lot different for some companies joining me is ceo of abilara which managed taxes for $90 billion worth of goods during cyber week in 2019. scott, good to have you. you guys had earnings last week i believe it was you announced some big new deals across verticals including manufacturing, retail. we've been talking about inflation, the supply chain challenges i imagine customers are probably having to take pricing actions, and that's affecting them. what are you seeing within your customer base as they adjust to this situation >> hey, john great to see you again thanks for having me i always say at this time of the year, it's our super bowl. when you talk about doing sales tax transactions, there's not any bigger days than what you

have in black friday and cyber monday but what we've seen over the years is a stretching out of that time period as people are trying to get peopleearlier in the process. and so that sort of cyber week has turned into cyber month. and we can see that in the number of transactions that are happening on a daily, hourly, even down to the second. but what you're also seeing, i think, with what's going on here is everybody is worried about how they are going to deal with the supply chain issues. will there be the toys that they want on the shelves? will they have all those things? so people are sort of getting in line earlier and we're seeing a much greater sales volume than we saw last year at this time. >> now, you're also investing for growth you acquired crowdreason, which focuses on property tax compliance applications. tell me about the thought

process behind that, what that adds to your portfolio and what business need for your customer base do you think that's particularly going to solve? >> when we started out, we started out just in the sales tax space. we were solving a problem that was happening in the magic moment of commerce it was really the last vestage to be automated. when you stop and think about it sales tax has been around for 5,000 years. it's not like it's something new. but we came along with a new technology being able to apply cloud and sas technology to the problem. and really create an environment where we thought we had a chance to be part of every transaction in the world we really do believe that we have an opportunity around the globe to be part of every transaction in the world but, beyond that, what we're creating at avalara is a global sas compliance platform. so it's not just about sales tax. it's about all of the taxes and the revenue that states and governments get.

so, i always like to say we're following the money. so we started out in sales tax now we do hospitality tax, excised tax, telcom tax, we do business licenses. wherever states and governments are getting revenue, we are taking the opportunity to help them get automated, take the burden off the customer, and property tax is just one more area and it's a huge area so i like to say we're building out for the current time but futureproofing our business down the road >> let me try to tease out more of the thesis here we've seen what's happened to the conversation about globalization over the past couple years it's not as popular as it once was. is the world becoming increasingly fractured whether you're talking about the separation between u.s. and china, whether you're talking about different tax regimes and different countries? or are things coming together? if there's a fracturing, is that

what it is that you're trying to address? >> you know, so, from a geopolitical perspective, look, you can have your opinion of whether it's fracturing or it's coming together. but from a commerce perspective where we see it, what we see is that it's undeniable that commerce is global today i mean, every ecommerce platform, every business is thinking about how do they expand and exploit the global market so, from a taxation perspective, from a commerce perspective, from a compliance perspective, i mean, they're all blending together now >> going to have to have software solutions to get that business done globally even if it's not as easy as it was scott mcfarlane, the ceo of avalara, thank you >> thanks, john. appreciate it it >> look forward to seeing you. coming up, a special castle edition of rising risks. we are looking at the long-term

effects of climate change on some famous fortresses plus, this stock is falling to a new all-time low and is on pace for its worst day ever. we will tell you what's behind that drop, next.

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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. welcome back to "the exchange." market's trying to stage a rebound from yesterday's inflation-driven selloff the nasdaq's the biggest gainer of the major indices getting a boost from big tech stocks and the chipmakers some of the movers this hour, disney is on pace for its worst day in more than a year after its first earnings miss since may 2020 disney added just 2 million disney plus subscribers after more than 12 million last

quarter. their pain could be netflix's gain shares there enjoying a bump of more than 2% it added about 4.5 million subscribers in q3. and shares of beyond meat faceplanting after missing revenue expectations and giving a gloomy outlook the company blaming temporary challenges including labor shortages, supply chain issues and severe weather affecting a pennsylvania facility. but wall street's not too optimistic about a turnaround. only one analyst has a buy rating, and bumble was the mystery chart we showed you before the break shares hitting an all-time low and having their worst day since going public the slide coming after it posted user growth declines for the first time as a public company bumble did raise its full-year revenue forecast the ceo telling us on tech check this morning they're building for decades, not days, and that days like these do not get in their way. up next, shares of lordstown motors climbing on its

manufacturing deal with fox con. but will its quarterly numbers leave investors hitting the brakes and warby parker's first results as a public company could reveal just how hot direct-to-consumer brands really are. in today's edition of "earnings exchange." we'll be right back. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

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welcome back it is time for "earnings exchange." really results exchange sinds lordstown, and warby parker are all expected to post losses in their reports. tough ride for lordstown motors this year with the stock down 65% and 80% off its 52-week high the move lower driven in hart by a hindenburg short report accusing the company of faking its ev orders. after rivian's strong debut yesterday, lordstown motor shares are up more than 26% into their results tonight. can the prerevenue company provide any guidance on its first real delivery? phil >> and, john, i think when you look at lordstown, keep in mind that there is a new ceo, wasn't

involved in everything in the past behind the stock falling so much in this report today look for him to talk about here's where we are, here's the plan going forward. remember, fox con they've entered into an agreement with them now buying a good chunk of that facility in lordstown, ohio they will be working with fox con as a contract manufacture. and then what will they be able to tell us about the new endurance pickup truck there was so much hype under the previous ceo about, hey, how many orders we have, when we're going to roll this out do not expect that from the ceo of lordstown now this is all about where are we at, where are we going, and a much more predictable and stable environment for lordstown investors. >> i've still got charlie from the beginning of the show about this rising rate environment and the danger for growth stocks so i wonder, with companies like lordstown that are pretty short on results right now, i wonder

if investors need to be careful and what benchmarks, what signs of progress they can expect to see that might hold the stock up >> i think there's going to be a fair amount of skepticism for investor when's it comes to lordstown and some of the other ev startups until they can post some results that they can say, okay, you told us that you would do this, whether it's by the first half of 2022, the end of '22, '23, whatever it might be so i'm not sure we're going to see great growth out of these ev-related stocks. yes, they will be up on a day like today or coming off of yesterday because of enthusiasm following the rivian ipo but i do think that there will be a period here where investors are going to say, okay, you've got some interest here but now i need to see results over time. >> kim, i wonder if these ev names are just following each other around i mean, rivian may be getting a multiple because of tesla and now lordstown, you know, getting a rise because of rivian

how do you invest here if you do at all >> it does seem like a snake following its tail just a little bit. i don't know i would do this extremely cautiously and if you can look at the chart on that stock, it tells you some things first of all, they had an accounting issue, which is never, ever a good thing it was a sales-related issue there were sales that they talked about that weren't actually there what i learned in this industry is my very first director of research said if you see one cockroach, there's probably more cockroaches. and i think that's why the stock has been languishing because they really do want to figure out if this new ceo and cfo are going to be, well, a little more truthful than the last one so there's that. and i would be very careful on this stock because not only are they, you know, light on cash and that's why they had to do the foxconn deal, but now they

have another partner that they have to satisfy, which is foxconn. so, it's a complicated story, and i am just going to say there are simpler stories that you can invest in. and that's what i would point you to do. >> well, let's see if the stories may be simpler in the infrastructure here, phil. let's talk about another ev related stock. it's another prerevenue company still building out >> right >> is there a different kind of compelling story here? >> well, it's more compelling from the sense that you know that you will have these infrastructure dollars that will be going into adding ev charging stations around the country. we're in a bit of a land grab right now when it comes to ev charging stations. and i think for a number of investors the real question becomes when can i clearly understand and see when there is

going to be revenue and sustainable profits from these ev charging companies. they're not in that point yet. i think investors are still trying to wrap their heads around how many of these will have to go in, what is going to be the cost situation when it comes to the installation of these chargers so, i'm not saying that you have to sell this stock i'm just saying it's one of those areas when you're looking at the charging companies, things still need to be clarified for investors. >> kim, do you feel any better about this one i guess, in a way, it's betting on evs in general versus any one particular company >> i do. and i also hear what phil's saying, that especially prerevenue companies buyer beware, and i agree wholeheartedly however, if this company is involved in a land grab and getting nongasoline station charging units out there, i think it could be, if they do it

right and compelling purchase for another company that wants to either expand its footprint of ev charging stations or just get into it. so, to me, i'd keep this in the back of my mind as a potential candidate for acquisition. and that's always kind of an interesting play but when and for how much i can't tell you >> so is this kind of like cell towers, in a sense, then, kim, do you think you talked about kind of the land grab aspect and the idea that there is this infrastructure that's going to be necessary for the overall buildout and adoption of a technology >> i think that's an excellent analogy. because they're going to want to put these things on property they don't own it's just a lease. so, that's one aspect. and there's going to have to be a lot of them just like with cell towers, probably more than would need for regular gas

stations because we can gas and go pretty quickly. but it looks like currently you have to stay charging for kind of a long time so, the footprint's going to be large. >> phil lebeau, does this put players like blink in competition with tesla when it comes to charging? are there barriers to entry that investors should think about that one charging or ev-related company might have versus others >> well, one thing that they do encounter with blink and with other of the ev charging companies is the charging time how quickly can it happen, and that depends entirely on the type of charger that is put in there. for example, you may have some businesses that will say, look, we're going to put in a charging unit, and our customers with evs can charge while they're inside the store. do you think that's going to be a fast charger not right now it's not for many people they charge and they say, okay, well, how long is this going to take, what am i going to get out of it in the future if you have a chance, john, to go someplace

and you know that it's a fast charger and you know that you can get a fair amount of juice and a short amount of time, that's going to be more valuable and right now it's all over the map when you look at the charging stations. so, to an extent, to get back to your question, yes, tesla is a competitor because when you look at the super charger network, one of the things that you hear from tesla owners is they love the fact that when it comes to charging up, they know where it's at and they know how quickly they'll be able to charge up. >> it's like cheaper gas, only you're paying with your time, not necessarily just with your money. phil lebeau, thank you and, finally, let's get a look at how the direct-to-consumer trend really is doing with warby parker's first results as a public company before the bell tomorrow the trendy eyeglass and eye health company is trading right ahead of its opening price of 54 bucks a share after its direct listing in september let's bring in courtney reagan for the story on warby how does the path to

profitability look for warby, especially with this retail buildout, courtney >> that's the big question, john and basically the physical store locations is what's going to help offset some of those massive investments into ecommerce. the company is expecting both to grow they've previously said they hope to add 30 to 35 more retail locations by the end of this year 2021, bringing their total in-person shopping experience stores to 155 to 160 so we're going to look and see if they can give us an update on that and the path to profitability is the story with so many of these direct-to-consumer companies and warby parker did have a year where they broke even a couple years ago, but they've posted losses since so, of course, that revenue comes at a cost. and investors are only going to be patient for so long the shares did surge on the first day of trading as a directly listed company when it went public they searched about 36%. they're now just about flat in the last six weeks since it made its debut as a direct listing,

which does fare better than other direct-to-consumer ecommerce kind of players like rent the runway or alberg which do have some physical locations, too. i think it's really going to be about what the outlook is for this company going into the rest of the year and that path to profitability. another point that i'm curious about, john, and the annuls are still ramping up coverage so we don't really have a good outlook on this, is if any of the consumers looking to spend those fsa dollars by the end of the year could be a ramp-up into the fourth quarter or not kind of remains to be seen now that some companies are allowing you to spend those dollars a little bit later. and of course eyeglasses might be a tough thing to buy as a holiday gift so i don't know that warby parker is going to be as much of a holiday shopping play as some of the other retailers but still a lot to learn from the first quarter as a public company. >> yeah, maybe some people shopping for themselves. we will see. but, kim, i used to in this direct-to-consumer space want to

look at peloton as an example of a stock that it continued to do well but, boy, rough few weeks for that one so, what do you need to see from warby as an investor if you're going to get in here, and how do you feel about it? >> sure. a couple things. when i originally looked at their s1, i did notice that their margins are increasing now, and i mean gross margins. they seem to be able to make glasses more profitably, which that's what they make so that's a good thing so i would want to see that part of the story i'd also want to really watch how much they need to spend on their, you know, physical stores so, that is a concern, but i know as somebody that has had glasses for a very long time, actually going to the store is a lot easier for me than ordering them five at a time and going, oh, those didn't work out. so, i think they're going in the right direction.

and, finally, somewhere along the line, i think it's them, i'm pretty sure, they've talked about maybe wholesaling. and i think that's really interesting and shows how flexible of a company that they are. but, yes, they're direct-to-consumer they were ecommerce only they made the bold move into stores, and maybe they want to have another line of glasses that they could sell to their competitors if they can make glasses at a good margin so, i think that's kind of key to their success are they going to be flexible enough in addressing their market >> well, i know they've definitely got contacts going and moving further into eye exams. courtney reagan, kim forest. and thanks again to "power lunch. and let's get to rahel solomon for a cnbc update. lawyers for former president donald trump asking the federal appeals court to temporarily block a transfer of documents to the congressional committee investigating the january 6th

assault on the capitol the national archives is due to turn over the first batch of white house records tomorrow the trump team wants more time to appeal earlier rulings against them president biden meantime has rejected trump's claim that the documents are covered by executive privilege. and this morning biden participated in a wreath laying ceremony at the tomb of the unknown soldier. biden promised to work with congress on benefits for americans who have served in the military and queen elizabeth will attend a service on sunday commemorating the end of world war i. while she did record a video message with the global climate summit, she has also missed several public appearances in recent weeks with doctors advising the 95-year-old monarch to rest after medical checks in a hospital last month. tonight on "the news" with shepard smith, a former marine trying to reduce suicides among veterans by providing service dogs to help restore their physical and emotional independence you are now up to date john, i'll send it back to you >> such an important story,

rahel, thanks to you and with the cop26 climate summit in scotland coming to a close, we will get a look at the rising risks the climate change poses to some of the country's oldest and most popular landmarks in scotland. "the excng wl rhthae"ilbeig back tter, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade. (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

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welcome back cnbc's rising risks series has been looking at how climate change will have an impact on both residential and commercial real estate. but today it takes a look at those effects on something a bit different, diana olick is in scotland with the story. ♪ >> reporter: for 1,000 years, edinburgh castle has stood watch over dozens of wars and social revolutions. it is a testament to time itself but time may be running out. >> when we have really extreme rainfall events that we haven't seen in our time, our lifetime or recorded history, then we're

not actually even sure what might happen to some of these buildings. >> reporter: just this past july a freak storm dumped more than a month's worth of rein in scotland in barely a day, doing serious damage to edinburgh castle >> it had quite significant effects in terms of damage to floor surfaces and the interiors. so we've been working really hard to remedy that. but we also need to start thinking about how we react in future to an event like that given that those events are becoming more frequent >> reporter: scotland's ten warmest years have all been in the last three decades, at least since they began tracking this in 1884. warmer temperatures cause heavier rains and the intensity of daily extreme rainfall events over edinburgh are expected to increase this could cause three to four times the annual normal damage to the area's historic castles blackness castle stands on the edge of the sea on the front

lines of coastal erosion the historic society is fixing outer walls to protect it, because while castles are part of scotland's identity, they're also invaluable to its economy >> over a third of the tourists that come to scotland say they've come specifically to see heritage sites, and obviously that generates millions and billions of pounds for scotland's economy >> reporter: the scots do love their castles and want to protect them from climate change but there is an argument to be made that protecting these great relics of the past might not be the best thing for scotland's future because restoration is costly and some argue the money could be put to better use in making the city itself both greener and more resilient to climb change >> culture is dynamic. it's part of who we are. it's part of our community we change as a society, and sometimes we lose things but it's also about understanding that it's okay to lose things. >> and today's theme at cop is

the built-in environment parties working on plans to both protect older and newer structures and building more resilient communities in the future i spoke to the ceo of jll said green buildings, that's a great ambition, but real estate developers in the u.s. are still way behind >> how far behind? there are technologies that are going into homes and buildings that are reducing carbon footprints, right? >> yeah. i mean, you have a lot of smart technology going in. just think about that smart thermostat in your house or even mowen, which is putting in these detectors in the walls to source out if there's a leak in a pipe that will save water but it's really the bigger structures it's getting developers behind it because it could take five to ten years to get office or hotel developments or wherever the larger commercial structure is going. they're retrofitting but they're not planning enough or quickly enough for the future, john? >> big decisions being made.

i don't know about letting scotland's castles go, just expecting something's going to replace that that'd be a tough pill to swallow. diana olick, thank you up next, shares of car gurus climbing more than 10% over the past two days on an earnings beat and strong revenue guidance we're going to talk to the ceo about that and how the pandemic has permanently changed how peopleuyar b cs. this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

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welcome back to "the exchange." according to car gurus, new auto inventory rose for the first time this year in october. but prices also climbed higher thanks to inflation. new car prices were up 24% year over year last month, while used cars were up more than 30% from last year's levels that's giving car gurus a big boost. the online marketplace saw sales surge 51% last quarter, while shares are on pace for their best year ever, up 24% for more, let's welcome the ceo of car gurus jason, so new vehicle inventory increasing a bit but is that, in part, because people figure i can't find a car anyway so they're not actively

shopping what's going on here >> thank you very much for having me on, john so, new car inventory is still down quite a bit it is up over the last 30 days but it is still down about 70% from last year used car inventory is also down% not as bad, but inventory is down across the board. you see a lot of dealers' lots that are less full than they normally are as a result, especially with high consumer demand prices are up quite a bit, which you cited. >> when does that turn around, do you think >> that's a good question. the industry has forecasted that it could be as early as early next year. but i think increasingly the estimates are pushing into later next year. >> why is that >> it's born out of the chip shortage ong the oems, the new car manufacturers. they canceled a lot of their orders, understandably, at the start of covid and then had to get back in line for the chips.

as a result, it's working its way through the system and new cars are hard to get if you were to try to buy one now you likely wouldn't get it for several months. >> i wonder, too, from all i hear about the foundry prices rising for chips, particularly the type that are going into the auto industry, which aren't the latest process technology, if those prices are going up, it seems like the car prices are probably going to remain high, which makes me think this inflation ant transitory i don't know how much do we read into that? >> i think -- it is a great question i think what's a bigger driver of car prices right now is that imbalance of high demand with low inventory. what you are seeing is that new car prices and used car prices are both up. people are paying for speed. they will pay oftentimes more for a used car that they can get today than the same car they could get new but not for six months and cars are sitting on lots

much less time the days on market for a new car is down about with thirds of what it was about a year ago i think the increase in chip prices might cause a slight increase in new cars in the future bee inventory is normalized but i think the big issue right now is the inventory constraint. >> what is going to determine what the car market looks like when we come out of this plain and constrained situation. if demand remains high and the economy in general is strong i emergency it might be a softer landing but there are scenarios around there, where this goes badly if the economy weakens and then the supply shows up in the second half of last year -- i mean, prices -- we could be in for quite a ride. >> it could be i think what we are starting to see now as we do consumer research and the size of our consumer audience is that consumers are realizing and reacting to the high prices because of the demands imbalance right now. in a poll we did, we found 56% of consumers are aware of much

higher prices. as a result, almost a third of consumers are delaying their purchase i think like in a lot of -- a lot of us learn in economics class is that supply and demand tend to aboutance over time. i think another big shift is a lot of consumer behavior is moving on line, which is where we are focused on our platform consumers do more of the purchase on line, send less time in the dealership. and that's allowing dealerships to have some profitable quarters here because they don't have the size of the sales force they used to have software once again helping to drive efficiency jason, thank you from car gurus. coming up, rivian customers haven't gotten the vehicles they preordered but the company delivered for them in a very different way. we will explaine hexcng we'll be right back

welcome back. >> rivian following in robinhood's footsteps setting aside preipo shares for existing customers giving yesterday's climb in rivian's first day of trading, those who took the option saw big gains you must be coming out of pandemic, you cut your hair. i see you have got the business cut back great story. interesting the way they allowed customers who preordered to also get in on stock. but not everybody flipping it, huh? >> what is particularly interesting here is we have seen this with airbnb, with uber, docimity the difference here with rivian is there are no customers because there is no product on the market it is just people who put down their $1,000 refundable deposit

who were in the queue and available for these ipo shares so the strategy has been implemented by other companies, but certainly an interesting wrinkle here with rivian >> and the folks that you talked to, they are not just interested in one ev company. they are interested in evs in general, it seems like is this a way to kind of brand themselves with an overall potential customer base that's got a lot of options >> yeah. i -- i mean, there are so many ev companies out there now with high priced stocks even though there aren't very many products out there. so you are both looking for an investor base. you are trying to do something original or clever for your investor base. and some of these companies are going public via spac, so can't do something like what rivian did. you know, there are companies offering incentives for putting down preorders you know, you are playing in

this very crowded field even though, really, if you want to get an electric vehicle out from one of these sure flight comp -- sure play companies tesla is really still your own option. >> there are more and more electric vehicle stores right there in malls it is like another device that you can buy. the marketing is interesting isn't it >> you think about where all this fits in kind of the broader market here is that, you know, with tech being up and to the right for the last decade-plus now and all this money having been made both from people who invested in tech stocks and through all the ipos, you know, everyone is looking for the next growth markets to put their money. you are seeing it in crypto. you are seeing it in some of the downstream crypto products like nft. and evs are a massive place where people are putting their money, whether in the products themselves, what they can get

access to, or certainly the stocks we are kind of ending the show here at chapping change with some of the growthiest of growth stocks, talking about rivian and evs and some companies that don't really have revenue yet to a large extent, limited product, and we started off with a warning about exactly those in a rising interest rate environment. thank you. that does it for "the exchange." "power lunch" starts right now john, thank you very much. welcome, every to "power lunch. i'm tyler mathisen today with frank holland welcome, frank here's what's ahead. buy this, sell that. it's like eat this, not that this is the inflation edition of buy this, sell that. the focus on financials and staples. our market pro has the names worth owning and those worth throwing the target crypto. the infrastructure bill includes stricter oversight of the crypto industry it could impact investors as