>> freight fedex specifically. retail's doing great guess how they get their goods freight. >> good stuff. josh brown >> don't tell anyone, but a massive breakout in amazon is possible it's challenging that 3,700 level once again it's knocked on the door i think eventually it gets through. >> thanks guys "the exchange" is now. thank you, scott hi, everybody. i'm kelly evans. ahead today on "the exchange," a monster day for retail macy's and kohl's both surging after results. how did the market underestimate them the ceo of kohl's is about to join us. and a partnership in the metaverse, nike, a company founded to get people to go out for a run, is teaming up with roblox where people stay home and play in a virtual world. so what will you do in nike's metaverse, and how will both companies make money from that and one of the hottest recent ipos isn't a tech stock,

it's portillo's, up 75% since going public less than a month ago. we'll talk to the ceo about growth in a time of inflation. but first the market's dom chu is here with the numbers >> those chicago-style dogs have just about everything on there you can think of and the markets are so filled with story lines, it's almost like a chicago dog the dow industrial's in the middle of a range. the s&p 500 is 4697. we were up roughly 20 points at the low. so it's been a decent range so far today. the nasdaq composite up 0.2% also the chip stocks very much in focus, nvidia on the heels up 8% right now, and 800 billion dollar company global foundries also up in the news and the vaneck semiconductor, up

2% right now chips continue to be a hot spot. we'll see at all whether the momentum slows down. and then take a look at some of the travel and leisure names right now. there is still a concern about covid. there is still a concern that maybe things could slow down for some of these re-opening trades. but wynn resorts down 4% carnival cruise line down roughly 2% and expedia, marriott, watch that re-opening trade a little bit weaker today in that trade back over to you >> that was a chicago hot dog of a market let's turn to inflation now. while nearly every measure shows americans are worried about rising prices, there are also signs that inflationary pressures are easing somewhat. crude prices are slumping to six-week lows. coal prices in china are down 55% over the past month. and the baltic dry index at a five-month low so has inflation already peaked? it's a debate heating up in the

markets. and rick santelli joins me now i don't see you as being a peak inflation guy. >> no, i'm not a peak inflation guy, but i'm a potential low guy. i mean, it is possible that the rate of change of the cpi and the ppi, especially year over year, may moderate, meaning it might not be a new record going back x amount of years every reed going forward but i don't think we've seen the end of the inflation chapter >> let's talk about the only thing that matters to markets with this whole debate and it's really bond yields, isn't it we've talked about, on the one hand, you have super high record prices for inflation protection, break-even rates and all that. on the other hand, the ten-year bond yield and the rest of the rate spectrum remains pretty low. what do you make of it >> well, i think that the thumbs on the scale globally are so large. it is very difficult for me to tell where rates ought to be i know one argument is if you look at ten-year rates, they've been very responsive to the most

recent run-up of inflation and, granted, we have moved from the all-time low of 50 basis points in august, i believe of last year, to what wesee now, about 1.6% but where would it be? and it's the same argument for inflation. and i know that there's going to be a lot of people scratching their heads here but if you look at the big changes in calculating inflation and one of the biggies in the 80s when they changed it from following the price of a home to home equivalent rent, it changed everything then you look at how medicare was factored in and healthcare and there's distortions. i know people who calculate cpi, for example, in the old-style way, and it is significantly higher so, the lesson here is that interest rates and inflation may not be priced or pegged exactly where they ought to be but the problem is the rate of change moving forward. i do believe that once the fed starts to tighten that you're going to see a much more

responsive treasury market, and that's going to be a problem for the fed. >> and i know there are some out there, rick, jeffrey's among them, saying they now expect the fed to announce a faster taper next month that would wind down by march do you think that's likely and how important is it to clear the way for rate hikes before finishing the aspect of the wind-down first? >> i think it's a huge topic and i do agree but you're not going to hear the fed chairman or the committee give you any significant information after the taper begins and after a few months once it has begun, i do believe that they will speed it up because they're not going to raise rates while they're tapering and i understand that logic. but i also understand the logic they need to raise rates the markets want them to raise rates, and that explains some of the volatility especially in the yield curve with regard to how short rates have gotten a lot more stubborn with their moves to the upside. >> very well said. rick, thank you. rick santelli talking rates and

inflation. now let's move to shares of coal which are higher after the retailer more than doubled earnings estimates profit margins got a boost and a 25% drop in inventory from two years ago. but the stock is basically flat over that same period. and the company didn't issue fourth quarter guidance. so what does kohl's have in store for the holiday season and the year to come courtney reagan joins us now >> thank you very much, kelly. and, michelle, thank you for being here with us today kelly ran through some of the highlights of the quarter, by and large a pretty good quarter that you turned in i think so many investors are wondering can this momentum be sustained? as kelly mentioned you all didn't give a fourth quarter guidance what are you thinking for holiday? can you keep this up >> well, you just said it, courtney we had an outstanding quarter. and it really is a testament to our efforts to reposition the company. it's working it's working now, and it is setting us up for long-term

profitable growth. a couple highlights, our sales were up 16%. i think, importantly, part of this repositioning was the profitability. so record earnings, we did guide the year for an all-time high eps. we're hitting our profit targets. our operating income level three years ahead of time. we're hitting it this year and lastly we announced a huge stock buyback. this is all about the long-term strategy for the company and i'm very confident and optimistic in our future >> there's obviously been a lot of focus on what's going on in the supply chain, around the world for almost everyone that sells anything, whether directly to consumers or business to business of course, there's some inflation that's happening as a result in part of some of that as well as things like labor cost so sort of a two-part question where are you positioned

inventorywise for the holiday season are your goods here? do you have what you had hoped to have? and then, secondarily, what kind of pricing can consumers expect? will discounting necessarily be at a lower level this holiday season >> yeah. so, courtney, let me take the first one from a supply chain standpoint we're in great shape our season is off to a very strong start we planned for this. we've a lot of efforts in the works for some time around bringing in key receipts like black friday items, bringing in those early. we've expedited deliveries we've done a lot so i will tell you that our stores have great items for sale we've kicked off well. we're ready for next week with black friday and beyond. and we're working through it i will say we've had some spotty issues one of our business's women has been impacted. but we are in a great shape from an inventory standpoint.

we're ready for a lot of great sales this holiday >> and then the second part of your question -- >> yeah, as it pertains to sales and promotions, what can we expect >> you bet well, as we were just talking earlier, we are operating our business very well and very profitably and as it relates to consumer pricing, value is a core tenet of kohl's. we are always doing a lot to make sure that we're offering relevant pricing, great deals. we've invested a lot in technology and capabilities from an analytics standpoint to help us price our goods and whether that's up or down. we actually have seen some good full price selling and that's really come off of our pricing and promotion strategies and our inventory management disciplines. i'd say just the headline for kohl's great deals, great value, and especially this holiday. >> you've had some recent experience dealing with some activist investors we know that there are some activist investors present in some of your competitors that are urging department stores to look at what sachs is doing

because it is such a growth vehicle. they are a much smaller business, goes after a different customer it's not the same thing as kohl's, but it is a department store. have the activists pressured you to look at that same strategy to spin out something that may be undervalued by the market right now, your ecommerce unit >> what i would say is that the board and the management team, we are always open to ideas that can create long-term shareholder value. on the channel is central to our strategy we invest in a lot to date it's a powerful part of our future as we look forward. there's a lot of synergies between the two channels 40% of our digital orders get fulfilled by our stores. our customers are loyal. we're really pleased with what omni has done to date, and we look forward to that being a key part of our growth going forward. >> one of the big initiatives

this year was opening up those sephora shop & shop stores, and then of coursethe continued partnership with amazon for the in-store returns as well as some of the amazon products that you sell what are your expectations for those two strategies into the holiday? are you continuing to see new, younger shoppers and higher traffic? what are we looking for there? >> we are. we are really pleased with both of those partnerships. clearly amazon has been a partner for quite some time. with that program we continue to see new customers, younger customers, traffic and we're even seeing higher conversion as customers get to know kohl's, they're buying more things from us so that's been really encouraging. and then sephora we're literally weeks into this 200 stores but the early indications are really, really positive. we're seeing traffic, we're seeing new customers, 25% actually of our sephora and kohl's shoppers are new, and they are more diverse, and they are younger. and we are actually seeing a lift to those stores overall

so, it's good news, but it had pretty minimal impact in the quarter because we just opened these stores so the opportunity lies ahead of us and by 2023 we'll have 850 of these sephora kohl's shops so it's really exciting. >> hopefully by 2022 we can ditch the mask and really be able to show off all of the sephora products a little bit better michelle gass, thank you so much for joining us here today. i'm going to send it back to kelly in the studio. we've got some breaking news on a disinformation campaign against the 2020 presidential elec election >> the department of justice at this hour unsealing an indictment against two iranians in their 20s that the u.s. government says were involved in an elaborate scheme back in the 2020 presidential campaign to influence the united states' election here's what the department of justice is saying. they say the two men were s

said kazami and -- sent threatening email messages to intimidate and interfere with voters and they created and disseminated a video creating disinformation about purported election infrastructure vulnerabilities. to what end would all of this done they think the iranians here were trying to undermine confidence generally in the u.s. election, confidence in democracy itself among americans. they are targeting both republicans and democrats with this campaign. the two men are not within u.s. legal reach so they will remain unarrested for now but they're going to have a hard time leaving iran if they want to travel given all the interpol interest that's going to be in these two men. this coming just one day now after we saw a release yesterday from u.s., uk, and australian authorities. all of those folks issuing an alert about iranian hacking aimed at companies this one focused really on

infrastructure and the healthcare sectors cisa, fbi, uk, and australia are warning of attacks actively targeting a broad range of victims. they include transportation, healthcare, public health, and also australian organizations more broadly all of that far indicates a really aggressive campaign now from the iranian side. yesterday at our technology executive council event, i had the opportunity to talk to the ceo of the cybersecurity company, one of the tops in the world. i asked him what he makes of the iranian hacking capacity generally. and here's what he said. >> they're operating with efficiency, they're operating with malware that can be updated. they have a framework where they can update their malware super fast so end point can think and learn and detect what they've got. they can be very efficient at getting leapfrogging our defenses as they learn >> so he has a high opinion of the iranian hacking capability

he said if it comes to an all-out cyber war, the united states could be in some trouble here here's what he said on that point. >> if we had a successful cyber war in just the cyber domain with another nation, my gut is we lose. because we're in the glass house attacking mud huts it's just too asymmetric >> he is one of the sort of leading lights of the cybersecurity saying he would guess at this point that the united states would lose and what we've just seen yesterday and today now from the u.s. government are warnings that the iranians are taking this very, very seriously. >> so how might this all play into, for example, negotiations over its nuclear program >> it's all part of the diplomatic dance between the hostilities between the two countries. we see an effort by the u.s. government to do sort of a brush-back pitch ahead of the 2024 elections to say stay out

of the 2024 elections, we know what you're doing. they give the names, the ages, the workplaces, the companies that these guys are affiliated with, of all the people involved in this campaign this is the united states saying, look, iran, we know exactly who you are, knock it off. we'll see if it's effective at all. but, to your point, it is coming in the context of all these elections. >> midterms coming up too. any important election we know this interference could happen wish it was better news. still coming up, shares of portillo's, the chain known for those chicago-style hot dogs are climbing back after a 20% drop on their first earnings report since going public the stock has nearly doubled since last month's ipo we'll talk about what he's seeing in the supply chain we'll give you the numbers to watch and how to trade them in today's "earnings exchange" coming up after this

this is "the exchange" on cnbc i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

welcome back chicago eatery chain portillo's out with its first earnings report since going public in october. shares were down about 22% at the lows, then briefly turned positive now they're dourn around 7%. the company said it was able to pass along higher costs to

consumers successfully navigate supply chain snarls and remain strong profit margins. joining me is portillo's ceo some very fun company name thanks for joining me. >> thank you very much for having me. >> i haven't had the chance to try this yet but if we talk any more about it -- are you on the east coast? where are you guys >> well, we're based out of chicago. so we're primarily in chicago. but we have restaurants in florida. we go as far as florida, and then the other coast we have california, arizona. we're in nine states now across the midwest and the two coasts >> do you want to be in all states i know when we looked back at the history of companies like shake shack, a big part of their valuation was always predicated on how many restaurants they could open >> yeah. i mean, look, we shared this in our public filings we anticipate getting to 600 restaurants eventually and that's a pretty audacious number given we're at 68 today and we'll keep expanding across the midwest. and then we're going to go

selectively to the sunbelt eventually we'll be in all states but for the foreseeable future we're just going to expand across the midwest we're going to be in the states of florida, arizona. and we're opening in texas at the end of next year, which will be super exciting for us >> and people seem to like the fact that so far you've never closed a restaurant in your 58-year history. so you seem to know where to go and how to run this well is this the most challenging time you might've faced in that 58 years in terms of maintaining profit margins and having labor supply and all of that >> well, i'm going to use a hack expression because everyone says this but it is legitimately unprecedented times. i don't know of anything in the last 18 months, in my professional experience, that has happened in the past it's been just crazy from a business standpoint you're playing a game of whack-a-mole the minute you think you've solved one problem, something else is popping up it's been an incredibly challenging time but then i'd say that for companies that can handle that, it's actually really great time

because you can't really set yourselves apart from the rest >> most of your costs would have to be labor. i would assume the food itself, while they're probably up, are still a relatively small percentage overall or what does it look like >> our number one cost is food cost and it's because we give so much value to our guest every ingredient we put into our food is super high quality so the number one cost for us is actually food cost then number two is labor and the combination of them are, you know, about 58% of our total costs. >> maybe that's a good thing these days i've seen people big through corporate head count numbers and say the higher they are, the more concerned we are. so to be able to run a little bit lean has to be attractive. how is that going to change? has the pandemic and all of these issues made you look at this and go how can we better execute each location to maximize profit and minimize cost >> it's a great question

i think a corollary to your question is does being public make a difference in how you run this company and i would tell you on both those issues, the key for us is investing in talent and people in the front line. the most important people in a portillo's restaurant are the people on the front line who take care of our guests. it's, in some ways, our business is super simple. highly engaged, awesome team members on the front lines taking care of guests is how this business performs and, so, what we'll keep on doing is investing heavily in our front line people and in our general managers to lead those front line people. that's, i think, one of the key differentiators for us and that's how we have every one of our restaurants perform so well keep in mind, the average portillo's is well over $8 million in auv and employs a hundred people that's a legitimate general manager job. so taking care of those people is the key to our success. >> absolutely. what's their average pay, and

are you going to use the ghost kitchen opportunity to expand? >> well, when it comes to pay, i would tell you that our average pay right now cost is a little over $15 an hour and we don't pay minimum wage anywhere i don't want to get into the specifics for the gms, but we think that our gms are probably the most highly compensated in the industry that's a very purposeful thing for us we want them super happy, we want our front line team super happy. and we want to make sure that they feel the love from the company. and then a great question about the ghost kitchen. we have a partnership with kitchens united, and we have a ghost kitchen in downtown chicago that is really meant to take some of the pressure off of our city restaurants who have been inundated with third-party delivery and catering. we want those restaurants to be able to focus on the people coming into the restaurant and on the drive-throughs. ghost kitchen has been a fantastic add. and we will look strategically at places where we can benefit

from a ghost kitchen to do that third-party delivery, that catering business, and take a little bit of the pressure off the volume coming into the restaurant >> absolutely. and you also have a direct shipping business so people, i guess, can literally -- if i'm in new jersey i can still order a hot dog that way >> you can and you should they're amazing. i would tell you the beef kit is my personal favorite because when you order that beef kit and you make it per instructions, it's as good as getting it in one of our restaurants >> i might do it for thanksgiving at this point because we're just having one of those years. thank you for joining me it's great to have you on today. he is the president and ceo of portillo's the labor crunch does continue to weigh on restaurants' bottom line companies like portillo's are turning to ghost kitchens. they're kind of virtual kitchens, there's no front but without the need to staff a dining room. and investors are taking notice of this trend. kate rogers digging into the story for us >> reporter: major restaurant chains are leaning into the

ghost and virtual kitchen space to optimize efficiencies and speed up service inspire brands announced the launch of its alliance kitchen incorporating food from its portfolio including arby's and buffalo wild wigs. it's also a place to test new technology like flippy wings in a real restaurant environment. reducing labor needs by 54%, and equipment costs by nearly 50% compared to five stand-alone restaurants. >> we've set up a model that because our entire kitchen is conjoined, we have essentially shared workflow, work process. >> vc firms have piled in. nearly $3 billion was invested into the category globally last year wendy's is also betting on this space as digital orders surge. the company teamed up with soft bank-backed reef technology to open 700 ghost kitchens by 2025 in the u.s., uk, and canada. >> traditionally, companies like wendy's have been restricted by the high cost of real estate

and we provide a physical platform that lowers the cost and lowers the barriers. we really complement the current network of wendy's and allow them to grow in new geographies and markets. >> and while restaurant companies like inspire and wendy's are opening up physical kitchens, others have launched virtual brands that operate out of their own existing kitchens including denny's burger den and chili's. those will use places that are already built and paid for >> thank you so much still ahead, shares of deere are higher after workers finally voted to ratified a new contract and end a five-week strike what it could mean for the next union workers. stay with us 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.

welcome back to "the exchange," everybody we're well off the session lows. dow is down 276 earlier on we're only down 57 points right now. the s&p is positive by 11. the nasdaq is positive by 41 and here are some of the stories this hour. ford is looking to get into the chip business, announcing a strategic partnership with global foundries it could eventually lead to joint production in the u.s. shares are up nearly 4%. at the same time, gm's president was telling an investor conference that it's working with seven chip suppliers in order to reduce the number of unique chips on vehicles by 95%. shares of gm are down 3.5% today. cvs is closing 900 stores over

the next three years, shrinking their footprint by nearly 10% in order to redesign locations. they're taking a billion-dollar hit in q4 and say that workers at the affected stores will be offered other roles. shares are higher today by only about 2.5% and a reminder that i need to get my booster let's get to tyler mathisen now. >> here's what's happening at this hour. oklahoma's governor granting a last-minute reprieve to a death row inmate whose case has drawn the attention of celebrities and activists. he commuted the death sentence of julius jones to life in prison without the chance of parole his execution had been scheduled for this afternoon the congressional budget office says it will release its cost estimate for the build back better bill within hours the move sets up a house vote on the legislation later this afternoon. and on "the news," president biden holds his first summit in

years with leaders from canada and mexico see what's at stake for the key allies that's tonight at 7:00 eastern with shep smith on "the news." and mud and floodwaters consuming streets and bridges of the italian island of sicily look at that, the flooding also damaging many houses, businesses firefighters say they conducted more than 300 rescue operations today on sicily. it's just once a year that birds are honored guests at the white house. these two turkeys are going there tomorrow meet peanut butter and jelly they will be presented to president biden who will ceremoniously pardon them just in time for thanksgiving >> calling them pb&j is the only way my son would actually eat it >> look apt those things those are some birds >> they're beautiful up next, shares of applied materials up 82% this year as the chip shortage continues. could today's results derail the

run? roth stores has issued stronger than expected earnings guidance only once in the past four years. what'll they do today? and is the stay-at-home trade still alive? we have all the key numbers to watch and how pittoosion all of these after the bell reports that's after this. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

if you're 55 and up, t- mobile has plans built just for you. matching your job description. whether you need a single line or lines for family members, you'll get great value on america's most reliable 5g network. like 2 lines of unlimited for just $27.50 a line. only at t-mobile.

on "squawk box," crucial insight for investors. why the highest inflation in three decades isn't rattling the market plus, choosing next fed chair, the impact on your portfolio tomorrow, watch "squawk box" any

time on demand welcome back, everybody. it's time for "earnings exchange" where we give you the action, the story, and the trade on three stocks reporting after the bell today let's begin with applied materials. it's actually the third best performer in the smh this year it's up 80%. it's right at its 52-week high along with pretty much everyone in this space. analysts are focused on the outlook on the supply chain as well as product innovation into areas like the metaverse that have been powering other stocks higher joining me with the story, bob pisani who is also there for the very imminent ipo. we have the founder of -- and he willgive us our trades today what's the story >> first off, it's good to be a semiconductor capital equipmentmaker it's about the perfect moment. demand's off the charts. the key of course, as you mentioned, is finding out about

whether there's any real supply chain issues out there my sense is that it's being alleviated a little bit. we've heard from toyota recently two things about them that are very interesting almost all their sales are outside the united states. they get about a quarter of their revenues by sales to china, about a quarter to taiwan the rest outside the united states the other thing is they've got a great growing services business. they actually have services where they go and do upkeep for the equipment that they actually sell it's a brilliant model it's about a quarter of their revenues it seems to be growing that part >> this one you'd be a buyer of? >> this is what i would be a buyer of here, kelly as bob was mentioning, that applied global services part of their business is an area where they can see a great portion of revenue mix. also it'd be better for their margins as well. it's about 48% and that's obviously strong they're using cash flow to do a couple things, one, return to

shareholders and they're looking to be offensive. they've looked at merges and acquisitions i think this is an area where we all know secularly there's a lot of strength behind semiconductor industry you really broaden your exposure to the winners in this space that's what i'm looking to do for my portfolio and clients >> let's move along to retail where consumers are also continuing to spend near-record rates. shares across stores have been lagging this year, down about 3% and one of the worst-performing stocks in the xrt retail etf on a day when macy's and kohl's are popping, where are does that leave the discounters like ross store? >> tjx had great numbers they reported really good traffic. they reported really good comp store sales. i never thought i'd say this in this year, but i'd say it's good to be a retailer overall now, it's true the bottom line is sales have been flat to declining for a lot of these stores for many years. but this quarter i will bet you

that ross stores reports comp store sales 10% higher than 2019 we have to use 2019, not 2020 as the real metric. but it looks like they're going to report sales that are up. that's the first time that's happened in a long time. number one, are the inventories okay generally, we've been hearing that they're going to have enough supplies for retailers in general. i want to make sure of course that they're going to actually say that and then the second thing, of course, when does the consumer start pushing back against the higher prices that they're having to charge for their apparel? so far all of these retailers have pricing power but that's going to be a bigger issue in the first and second quarters >> yeah. with this one, obviously everyone's focused on how well they in particular can execute less common they beat on revenue, even less common they beat on comps. only did that 12 times so, you can see sort of some of the sogginess in the trade

>> there is some sogginess in the trade. i think some of the issues there are when you have consumers flushed with cash, they might be looking to upgrade the areas where they spend their money they're looking at more of discount apparel they mentioned a little bit of that obviously looking at the valuation, it's trading at 30 times which i think is a little bit rich we're not getting consistent growth all the time when we look at comparable stores so i think that's an area where you have to look at it one area that's really keeping me out of the stock is that they really don't have an ecommerce presence and i think in this environment you really want to have that so that's kind of why i've stayed out of the stock here, kelly. >> again, ross down 4% over the past three months or so. we'll see if they can turn things around tonight. let's move along now to work day. 36 analysts covered the name and only two have sell on it they just got an upgrade to outperform yesterday what are people looking for

today? >> human resource management software is an enormous space. look at some of these etfs around it. work days must be up 300% in the last five years. and it's in a perfect space right now. we've got this big great resignation going on what does that mean? it means there's a whole big effort to retain employees what does that mean? that means there's a big emphasis on software management. how do you keep employees, how do you do that you use cloud human resources. you've got these hybrid work structures they figure out these hybrid work structures. i don't know about the valuation. i don't know how to value them 85 times forward earnings. 85 and this is not unusual in some of these cloud companies pay com is 80. salesforce 65 times forward earnings i don't know what delano thinks, but this is pretty rich territory. >> now they're saying 91 times for dell anno, which is higher

than nvidia. i think 1.32 billion is what people are looking for subscription revenue backlog i like bob's point that this is basically a play on workforce churn which we're seeing a lot of right now >> 100%. the last was about 4.4 million resignations at last print that is the big play it's a long-term play. as we're seeing in the near term the stock has gotten 16 times sales. so investors want to look at that if they're looking for an entry point. but the long-term is there that work from home, that flex structure is still going to be imprinted in what we do going forward. but i do think there's a lot of competition in this space. you're seeing all the incumbents, but you're also seeing some new entrants coming into this space as well. so they might pass some headwinds. but you want to be involved in this space it's going to be an area where there's a lot of rich valuations right now in a lot of these places >> it's 1:45 eastern

where's the sweetgreen ipo >> this is even further out than alibaba was. the good news here 54 to 5450. 28 was where it priced that even-priced above the particular range so there's a lot of demand but the joke around here is we've all ordered salad for lunch. [ laughter ] literally there's 125 people sitting around saying what are we having for lunch? i think we're having salad [ laughter ] >> i don't know which will happen first, the ipo or those salads show up would be, thank you so much today. still ahead this online gaming platform surging over the past month the name and one company's bet that users will just do it at nt. as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv!

payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com.

welcome back, everybody. sweetgreen is open for trading it opened at $52 a share after pricing at 28 last night

so, almost a doubling there. it took a long time to open. we were just talking about it. but here it is hitting the public market ticker sg. coming up, nike is the latest company betting on the metaverse launching nikeland on roblox what's behind the move and whether it'll be effective in capturing that young, crive luat demographic, right after this.

on "squawk box," crucial insight for investors. why the highest inflation in three decades isn't rattling the market plus, choosing next fed chair, the impact on your portfolio

welcome back to "the exchange." roblox and video game development softermaker unity are both having huge months. they're up 60% and 40% respectively and the metaverse is showing no signs of slowing

this is a virtual world where players will be able to play games and wear nike gear virtually. welcome to our newest cnbc contributor. >> it's great to be with you, kelly. >> it's great to have you. i'm trying to imagine what possible downsides there would be unless financially investors got worried they were just going to put a ton of money in this space. but if this is the future, then why not invest there >> i agree with that 100%. you've got to give nike credit here because they're always on the bleeding edge of trying to create deep connections with their consumers. i think what's going on in terms of this is to say, listen, we all know that the metaverse is going to be there, and there's going to be a significant amount of consumers, especially the younger ones, like you were saying, that are interested in this and so because these are the digital natives, they're basically born swiping left and right. this is basically going to be their world and nike knows that.

we need to make sure that we don't miss this train and we are able to start creating loyalty and familiarity at a younger age. >> and to quote from you, as you point out here, 67% of roblox users are under the age of 16. it's where they can share, interact, young. it is a natural gateway that creates that loyalty from a young age. i wonder how much you are nerding out on the metaverse and on metaverse and net 3 and all of the future worlds from our audience, they are obviously not there yet. a lot of this is a long time away today we are talking about it. it is in some ways marketing -- i don't want to call it a stunt but it is a marketing move, isn't it >> it is a very bold marketing move if you think about what nike does, kelly, nike is known for making these kinds of big bets, colin kaepernick, we believe he

is going to be the younger generation's muhammad ali. so we are going to bet on that this is what nike does this is basically an extension of what they are as a brand. you are 100% correct you are talking about digital native, i am a digital immigrants i am learn being tiktok so i can report on it next week if woke put nike sneakers on you when you are an avatar in this metaverse and you are creating your identity and your identity is forming then what we are essentially doing is building the familiarity that's going to create a connection with you as a younger consumer what is going to happen in that virtual metaverse, kelly, exactly like you are saying, it's going to have a problemityic possibility of happening in the real world. >> the as terrific you could put on nike is political polarization we are seeing it with nike,

starbucks, the new alternatives that bill themselves as the coughe for conservatives, or the apparel brand for conservatives and the upstarts are gaining a loyal following in many cases. does this allow it to leapfrog all of those concerns and position itself of on the side of youth and -- do you know what i mean. >> absolutely. >> does it isolate them from those concerns >> you are 100% correct. let's never assume nike doesn't know who its customer s. that's number one number two, they understand that, listen, we are going to put out -- we are going to live by our values. so we don't necessarily want to bring everybody into this tribe, if you will. if you want to ride with us, that's awesome, but if you don't, that's cool, too. because marketing is all about speaking to a specific group of consumers and knowing who you are. nike understands that, you all might get upset and start burning the shoes on twitter but check the stock price, 171 today and you will see that it

looks like this. it is because nike understands its market it understands its own brand, and it understands that it has made the decision, kelly, that we are going to live by our values and our ideological beliefs and we are going to take those younger consume who are are aligned with those core values along with us and we are going to align in the digital place where is they already are, playing and living and being it is a smart move my opinion. >> you nailed the stock price. it is $171 do you want to share any other picks while you are here >> i would love to get advice myself. >> thanks, so much, sir. stay tuned >> i still ahead, third time is a charm, deere workers reviewing a new contract offer sweet green holding on to

52 you are 40 cents in the green ghnow. we are back in a minute. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.

(rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. what's strong with me? what's strong with me? (crowd cheering) - bito, bito, bito, bito! what's strong with me? what's strong with me? with me! with me! what's strong with me? with me! with me.

welcome back after a month-long strike, deare and the uaw reached a deal sending 10,000 workers back to their jobs seema mody has been following the story and joins us now with the latest. >> kelly, it was a struggle. john deeree had to go back three times to the negotiating table last night, 61% voting in favor of the performance based targets and an improved pension plan, which is what this worker says he's most supportive of. >> the pension program is -- again, it might be the best literature on the contract and for us, i think that it was enough to get us to vote

>> jeff, along with 10,000 union workers that were on strike across illinois, iowa, and kansas for the last five weeks will go to work today or tomorrow and get that 10% wage hike and bonus it will cost $83 million the company reports earnings next week. we are watching shares higher at 1% right now cnh industrial, its chief rival in the agriculture equipment space has union contracts that are coming up for expiration, kelly, starting in spinning 2022 this labor strike conversation is not over yet. >> what was the labor pension that workers were impressed by >> an improved pension man now offered to new hires versus those who have a couple years under their belts as a new worker at first it seemed like their

main focus was just getting higher pay as they continued with the discussions and negotiations with deere, it was clear they were looking for other ways to improve their overall work benefits. >> how much different is this package from the last round? >> the wage hike, there was no change there it was a 10% hike this time versus the 5% to 6% offed in the first contract the main change between the second and third offer f that makes sense, was this modification around the pension plan wow. >> that's what got more yes votes versus no. now we have a deal the first strike since 1986 coming to an end. >> incredible. yeah, and we wonder again f there is a lot more to come or if they were uniquely adept at making use this time seema mody reporting that does it for "the exchange." thanks for your time today "power lunch" begins right now kelly, thank you very much we will see you in just a

second welcome to "power lunch," i'm tyler mathisen we have a busy who ahead here's what's on the menu. fed watch. jerome powell or lael brainard the president's big decision is coming soon. his pick could have implications for different stocks in some key sectors. we will give you a list of each. and the ev battery economy it will reshape century-old supply chains and it's giving investors a new way to capitalize on the fast-growing electric vehicle industry. and the driver's manual. we will break down the inside of the car, from the seat makers to the dashboard companies, to the electronics makers to find the stocks that could turbo charge your portfolio. >> buckle up, everything the major averages are mixed the dow is down 55 points. er with well off session lows. we were down more than 200 earlier. the s&p is up ten. the nasdaq is up 21. retail is helping stocks today earnings in he can to us after macy's