strategies p "power lunch" starts right now >> see you in "power lunch" in a few seconds. welcome, everybody, to a very busy edition of "power lunch." sell-off on wall street, here's what's ahead >> at this point, the economy is very strong, and inflationary pressures are high and it is therefore appropriate in my view to consider wrapping up the tape every of our asset purchases which we announced at the november meeting, perhaps a few months sooner. >> so the fed chief weighing an earlier end to the taper, the pulling out of those fixed income security purchases that the fed has been making to juice the economy. we've got hot inflation. he says it's time to retire the word transitory to describe those higher prices. we have reaction, analysis and what this all means for you and your investments, this hour, what's next for the market, bonds, oil, we'll drill down on

biotechs, emerging markets and melissa, we will tackle the financials >> a lot of ground to cover in the next hour. major indices suggest the focus changed to fighting inflation rather than disruptions from new covid variants a bounceback within the last half hour, the dow down by 486 points, by 1.4%. s&p 500 4595 is the level, down by 59 points or about 1.25% and the nasdaq which was up -- down excuse me by more than 2% at this hour down by 1.25%. let's get straight to bob pisani with more on what seems like a turnaround at this point, bob. >> a little bit, but it doesn't take away the kind of shock investors really taken off guard by powell today. he's thrown a bit of a monkey wrench into the investor playbook already a monkey wrench from dealing with the omicron issues let me show you the sectors and emphasize something. this is a broad sell-off

there is the equal weight s&p, the rsp there. you see it's down 1.9% the s&p 500 down 1.3%, a significant divergence and the average stock is much weaker than the s&p which is market cap weighted this is very broad it's not just some tech issue that's out there it's very broad and almost 6:1 declining to advancing stocks. in terms of what's moving out here, look at the do you movers the breadth of the decline, material names, dow chemical, salesforce and microsoft are weak the big industrial names, 3m and caterpillar are weak the breadth of the market, most things are down close to 2%. you can't nail it on any specific sell-off. there's a conundrum with technology that we're facing right now. remember covid confusion, buy tech, because tech always wins on whether this covid going away

or covid stays with us that was the playbook we had the feds come through and say we'll start hiking earlier, that was the implication. if that's the case, then you want to sell tech, that's a type you want to sell tech. there's confusion now, what are we supposed to do with technology stocks, that was the great haven we've had. amd, microsoft, very strange flight to safety, call it flight to apple apple is getting huge volume and up, the only big tech stock trading on the upside. also we've seen heavy volume in technology, all of the big etfs, the heaviest traded etfs are tech names the tech spyder, vanguard, the qqqs is tech stocks, the russell 2000 small cap names have trouble if interest rates move to the upside.

we have a problem, tyler traders were worried omicron would hurt investor confidence, hurt the supply chain and hurt margins. now powell has come along and said wait a minute, we're going to get more hawkish, not less hawkish on the omicron concerns and that was something nobody was quite prepared for so everybody's trying to figure out what's the right playbook here and that's why you get heavy follow for example in technology stocks where nobody's quite sure how to play that right now tyler? >> thank you, bob pisani next our guest says the fed will likely start hiking rates september and move six times before the end of 2023 let's bring in bruce kazmin, head of global economic research and chief economist at jpmorgan. welcome. seems the fed chair is trying to thread a difficult needle between a concern about rising inflation on the one hand, and a

concern that a new variant of covid may be a damper on economic activity. what do you see him trying to to here and will he succeed >> i don't think it's quite as fine a needle. the economy is showing enormous strength in the fourth quarter we think we'll grow at a 7% annualized pace so he's no doubt presenting the uncertainty and concern about omicron but you have that inflation being persistent, the economy showing robust growth and he's been following a steady stream of fed speakers in recent weeks saying we should be considering accelerating the taper unless there's something on the health care front that is disruptive in the next couple weeks, it looks like that's what they're going to do. >> the concern about fast growth, higher inflation that for now at least overwhelms the downside risk of the omicron

variant and so forth what should i do with my money if this is the way the fed is leaning right now? >> well, i think there is an adjustment going on in the market and as i've been saying, the issue to me is the fed that goes earlier and goes on rate sometime next year is a fed that likely has to go more. however, i think part of the story here is the underlying health and resiliency of the u.s. economy the fed is moving because the economy can handle it, so i think there's going to be some digestion issues here, but i think ultimately a fed that is adjusting to a stronger economy, inflation that is an issue but not as much i think going forward once the supply constraints start to ease. i think it's appropriate to calibrate here and what we need to try to set the stage for hopefully what will be a longer expansion. >> glass half full or glass half empty i feel, bruce, is the exercise in reading the fed chair's comments when it comes to economic growth you say that the fed is moving because the economy is strong enough to withstand it but at

the same time, one could also interpret the inflation of such a risk that the fed has to move because there are downside risks to growth, and so with that backdrop, bruce, is stagflation, is that out of the question, in your view, for next year should that be a concern of the markets? >> i don't think so. i think the bigger issue here -- first of all, let me say, i'm not going to weigh in on omicron. maybe there's something far more serious than we're anticipating. powell will respond and we recognize we have a lot to learn on that front. however, i think what the economy has shown is enormous amount of underlying health in the private sector what we have is globally pent up demand, if we can get normalization off of higher vaccination rates, the fed is not going to be fighting you in the sense of trying to put weak growth in place and i think inflation is going to come off but i think if we talk about a fed that's tolerant of higher

inflation, a fed that wants to support growth but does not want to let things get out of hand, what they'll do is more than people expect but going to be reasonable for keeping this economy on solid ground. >> are there -- can we generalize to say this is a good time to be long risk assets or what i want to leave the viewer with some sense, i mean you've got a thriving economy, that's good, right? you've got some prospect of less stimulus coming in from the fed in the form of the asset purchases and the form maybe of higher interest rates, but i hear you saying the economy's really strong so does that mean i should just stay my course if i'm long risk assets or should i be pulling back? >> i'm an economist and not going to weigh in heavily on risk assets but i think to my mind the most important thing for equities and risk assets

more generally is not whether the economy is strong now but whether it can stay on a recovery path for a long period of time. i would argue that against that backdrop, the fed that's moving earlier, that's recognizing how this expansion is very different than last one and is going to require a higher level of interest rates, i think if it's on it early and it's done in an effective way, both on balance sheet and rates, that's a good signal but we have to digest that and plenty of risks disrupted by omicron or other things >> bruce, thank you so much. we appreciate your insights today. thanks >> thank ou. >> bruce ka. some market players to buy the dip, others say be patient our next guest says it's an overreaction sarat, great to have you with us >> thank you >> what do you think is going on in the market today? what is the concern that's driving the markets lower?

>> two things are coming to a head, interest over the virus and the taper. both saiides are getting hurt at this point to us, the fed is seeing something, now put the virus aside, the fed is seeing higher growth than expected, or seeing higher inflation than they expected and for that, meaning even if things slow down a little bit, they can still taper and the economy can then survive along with higher earnings, and earnings is going to drive the stock market and i think that's what's going to push us into kind of keeping where we are if not higher for the next six months to a year in the stock market >> anything changed sarat, in your view of how you position yourself, given what the fed has said, and knowing that in the next few weeks, we're going to know much, much more about omicron and the trajectory of that virus and the efficacy of the vaccines and treatments in

the next few weeks we might get nor insight on who will fill various vacant fed seats around the country, and at the federal reserve. i'm wondering, you know, to what extent are you certain in how you're positioned now, given the unknowns >> so you know, i think we were positioned to be more reopening and this is definitely kind of a pullback, hurt some of the positions that we own. i do still think, given if the virus is contained, that is the strategy going forward if you look at what rates are going to do to value stocks, what they're going to do to financials, if you look at reopening for transports, that's kind of the place you want to be especially given how hot this economy is, rising prices, and interest rates moving up where we have to be careful is if rates move up too fast, what is that going to do to some parts of the sector, the growth sectors and we've been talking about this for a while you have to be careful your cash flow is going to be

now, they don't want to be in the future and today you've got that condition where potentially you have some of the high valuation stocks coming down, not because they're not growing. it's just because of more of a value indication call. >> did powell surprise you this morning? if so, are you taking any action in response? >> i'm not taking any action response i was surprised given where we were with the virus, but you know, some of the, when they're ready to talk they have some preplanned speeches. the question in the next couple weeks as we get more information does the playbook change does powell and team then say things were better or worse or are they confident the economy can still be as robust given kind of what's going on with the virus information we're getting. >> you brought stock picks charter communications and uber, they seem curious maybe is the

word for a day like today, seeing a lot of pressure, especially uber on higher valuation on profitable names. >> uber is an interesting play, it is a stock everybody loves to hate because it's a reopening story. management is committed to being free cash flow positive. they're in rides and freight and eats if the virus comes back and strong, that could hurt them things are base case, this is a company that's going to benefit if people start traveling and going back to work and people are living in hybrid, so i think that's another reason for charter as well. charter does well hybrid environment people will pay more for broadband, a huge cash flow company that has steady growth rates. the combination of those two with rising inflation, these two will do quite well >> thank you so much, serat of ucla

>> thank you coming up, stocks that are bucking today's down trend, plus warnings from the ceos of moderna and regeneron will covid variant efficacy of their medicines and vaccinations a top biotech analyst will talk boosters and treatments as the etf trades 35% off its yearly high and later investors appetite for emerging markets. the sector etf getting hit hard. find out if our trading nation team is buying or bailing. let's look as we head to the break at some of the stocks hitting 52-week lows in today's session. at&t, cardinal, medtronic among them, bristol-myers as well.

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where's mom? she said she would be home in time for the show. whose resumes on indeed don't worry sweetie, she promised she'd be here for it. oh! nice shot! thanks! glad we have xfinity. with wifi speeds faster than a gig. me too. [claps] woah! look! [chuckles]

mom is on tv! she's amazing! [screams and laughter] yeah! xfinity brought us together after all. get started with xfinity internet and ask about wifi speed fast than a gig. click, call or visit a store today. welcome back to "power lunch. as you saw we are off our session lows i'm dominic chu. we want to bring you a check on the relative outperformers out there today including a range of names like pfizer and lam research, nike shares and electronic arts as well. one name in particular of interest bucking that overall down trend is apple, the biggest company out there outperforming its big tech rivals on a month-to-date basis as well.

microsoft, amazon, alphabet all sitting around 5% from their recent highs, while apple is closer to 1% away from that level, so keep an eye on big apple. tyler, send things back over to you >> thank you very much, dom. the inflationary surge the fed is fighting could become more uncertain given the emergence of the new omicron variant. shares of moderna falling after the ceo said current covid vaccines will likely be less effective against the new variant, his comments come as the biotech index falls about 35% from its yearly high michael ye from jeffries, always great to see you one question i have is this. are we going to find in the years into the future just like with the flu vaccine, we'll get a covid vaccine every year, because there are going to be so many variants of this illness out there that we'll need to adjust the vaccination

>> it's great to be here i think it's a great question and your answer comes in two ways one, is that as the virus is out there and as it mutates and as people are vulnerable, because either they don't get vaccinated or whatever, then yes, i think as long as covid's out there and is mutating, we will continue to need some level of boosters. i think the second part of that is over time, presumably the disease will get less bad, less severe and hopefully over time become less of a problem and so as you know, not everyone gets a flu vaccine. >> no, certainly not so without being flip, i don't mean to sound flip or insensitive, though inevitably it may, are these new variants actually good news for the share price of a company like moderna or pfizer? >> i'm not sure it's good news, but what it does remind us is that there is obviously a need

to get a booster certainly for the next years or next couple of years and that that reminds us and we'll need orders from governments, urgency to get jabs and i guess keeps it in the minds of people that demand is there. i guess you're right it's not to be flippant but a note about this, it's kind of like iphone 13 and iphone 12 there may be a different version, a better version every year you may need that version, et cetera, and so i do think it keeps a level of demand. it's just a question of whether that's already applied in the stock, tyler, where there's already an assumption. >> unless another phonemaker comes out with an apple killer, and i guess in your coverage adagio er therapeutics effectivi preventing the variant up to 12 months i wonder how you view that as a

threat to moderna or pfizer. i don't think you cover pfizer, in terms of its revenue stream from the new variant how do you factor that in? >> that's a great question look, we certainly think that vaccines and moderna and pfizer, biontech the vaccines are a main stay a smaller company like adagio plenty of opportunity and best antibody treatment better than the regeneron treatment because of the variants and the way the adagio antibody is designed there will be a need for treatments, a need for something that works for different variants which is adagio and people can use it for vaccine for immunocompromised people i think that's an opportunity for adagio and going to be a player but certainly not a major threat to moderna. >> how soon are we likely to know whether the existing

vaccines are effective against omicron or whether regeneron's monoclonal antibody treatment is effective against it for that matter >> we believe in the next two to four weeks as has been mentioned by pfizer and moderna, we'll get data on the existing vaccines that people have been taking and how they are doing on the omicron variant. we believe we will find that the current boosters, which i guess is like iphone 12, is effective, and albert said that he thinks the vaccines will be effective, but that better new improved version of it specific against the omicron will be best so it's okay if you're using the older one, that will be fine the new one, better one logically should be available for 2022 and that will be better that's my call and i think that's what's going to happen. >> michael, great to have you with us, always clear and precise. we thank you michael yee of jeffries. coming up, we're watching

the market stocks deep in the red. the dow is now down more than 480. it's not just equities bitcoin getting hit with the rest of the market but ethers higher paypal is down 1.5%, square down more than 2% "power lunch" will be right back ♪ ♪ ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪ it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard

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welcome back i'm rah shell solomon. here is your news update at this hour a suspect is in custody after four to six people were injured in a shooting in a suburban detroit high school over an hour ago. there are no confirmed deaths. california's ban on high capacity gun magazines reinstated by a federal appeals court. it was invalidated by a 7-4 court. the ban is a reasonable way to

reduce gun violence and does not violate the second amendment fund-raising groups launched by sidney powell according to "the washington post" says prosecutors issued a subpoena for financial records from several groups including texas-based defending the republic, a lawyer for the organization tells "the post" it will not be diverted by what it calls lies, innuendo and other distractions the associate the press dr. mehmet oz plans to run as a republican for the u.s. senate seat the host of the "dr. oz" show would bring his name and money to a competitive race and always very important state of pennsylvania >> interesting >> melissa, back to you. >> rahel, thank you. stocks, commodities and bitcoin head lower ether is up nearly 6%. why are the two biggest cryptos moving in opposite directions? kate rooney? >> we are seeing a divergence in

crypto markets bitcoin bouncing back today. it dropped as low as 56,000 but this a choppy trading week trading more like a macro asset. analysts tell me this is a sign it's becoming more mature and more mainstream part of traders portfolios and also some are turning if they need to take risk off the table jeff dorman put it long-term inflation narrative has been replaced by al gore rhythmic traders treating bitcoin like a super liquid, levered volatility index. the market there is also open 24/7 you look at some of the alt coins, anything other than bitcoin, ethereum up almost 6% and also speculation of an etf for ether may be boosting prices xrp and se solano outperformingu not as mainstream as bitcoin

they perform worse than bitcoin when there's a deep sell-off user and developer activity as well as investor tension around the metaverse we talk about a lot and something decentralized finance, a lot of the smaller tokens tend to be tied to those projects so there's a lot more attention being paid to some of these smaller coins instead of bitcoin and as a result looks like the market right now is expecting some of this buzz around altcoins to continue as we head into the end of this year look at coin base guys, too, outperforming today all of the crypto volatility tends to be good for its core business of crypto trading and announced its third acquisition of the month this morning coin-based buying is cyber security company unbound guys >> an interesting acquisition, considering the hacks it suffered, kate, and is that meant to remedy those or prevent them in the future >> so it's a small deal. it gets, solves the need for something called cold storage, so the idea that you would hold

your bitcoin off of an exchange so long-term, it could help with cyber security, i think all of the crypto companies are looking at that area it could also being can called an aqua hire where they are buying the company to get more of a talent so a lot of these smaller deals tend to be more in the aqua hire category but it also could help with the hacking we've seen and eamon javers reported on. >> thanks, kate rooney ahead on "power lunch," stocks are down sharply but they are well off the lows. the major indexes were down about 2% earlier today, big banks along with the regionals getting hit. we'll talk to a top analyst about that plus oil and energy shares hit by omicron and the inflation pressures together, and we will tell what you wall street says about those moves. that's next.

fed chair powell sending stocks, bonds and commodities into a tizzy let's get you caught up on all of those s. bob pisani at the new york stock exchange >> we this h a freakout between

10:30 and 12:30, dropped 2% on chairman powell's unexpected hawkishness. since then we have recovered a bit, not a lot but we have recovered across the board financials, tech, industrials as well just want to highlight a couple things banks continue to have a very rough time these are off of their lows but a rough couple of weeks overall. banks were darlings in october and november, most names are down 8%, 9%, 10% from 52-week highs. same with the energy stocks, huge darlings of the market, value is huge, energy was back in october and november, energy stocks have been essentially straight down for the last couple of weeks. most of the names are also 10, 15, even some cases 20%, halliburton is about 20% off of its recent 52-week highs also want to highlight retail stocks, great darlings again going into the value buy in the last couple of months. dillard's downgrade with a sell and nordstrom terrible earnings

report, gap at a 52-week low macy's big retail value is halted in the last week or so. look at the vix, rare to see the vix in the mid-20s three days in a row. only happened a few times, a spike here, happened in may and september. these were associated with covid outbreaks and anxiety around that and just a sign of a little bit of anxiety as we try to figure out how do you deal with the omicron variant, a second wave of potential supply chain issues and fed's unexpected hawkishness. good reason for the vix to be in the mid-20s. melissa, back to you >> bob, thanks powell's comments having a huge impact on the bond market. rick santelli is in chicago. >> you know, you get a hawkish fed chairman intersecting a nervous market regarding the variant of omicron and you get some serious volatility. let's start with the short dated treasuries, two-year notes, all of the charts are starting on friday, the friday we learned of

the variant strain look at how two-year notes reversed up today as chairman powell was sharing his newly found nervousness over inflation. look at the ten-year further down the curve, not much of a move, continues to slide to some extent some buying on flight to safety any yield pick, i pick tens, minus 2s, it's getting flatter faster and short dated treasuries rise and it isn't just in the united states with our central big center stage the shots the two-year in europe over the same three-day period very similar, holding its own. starting to aim upward with the ten-year bund sliding similar to our tens look at the intraday, 96, a neutral effect on the dollar in index. the apple of the market's eye

with regard to safety, apple melissa lee, back to you >> exactly right rick, thanks oil is leaking more than 5% about to close trading for the day. pippa stevens at the commodity desk >> oil prices tumbling to the lower levels fears omicron variant will hit demand. wti down 20% for november the worst month going back to the onset of the pandemic in march 2020 the contract is currently down 5% at $66.33, that is nearly $20 below where it traded at the end of october, when it hit a seven-year high. brent crude is down 3.9% at $70.57 the narrative here has shifted really fast, earlier in the fall, it was all about demand outstripping supply, but now we've got potential new lockdowns as well as the spr release and iran talks resuming and wall street firms are saying we don't have enough information at this point to determine how

much of an impact this variant will have, but some analysts believe that the longer term story remains one of recovery. morgan stanley saying current headwinds should prove be transitory and they predict a tight market at 2022 jpmorgan saying brent can hit $100 and $25 next year followed by $150 in 2023. the prices already outliers and they see brent averaging $88 per barrel next year in the near term, all eyes are on opec and its allies which meet tomorrow and thursday to discuss production policy for january amid all these new headwinds. melissa, back to you >> pippa, thanks bank stocks as bob mentioned taking a hit kbe down nearly 8% in the past week while the regional bank etr the kre negative for the month what's next for the sector if thefed accelerates the taper time with us is anton with cap advisers great to have you with us. rising rates good for banks but a flattening yield curve is not

and that's what we've been seeing lately. >> well, i believe the flattening curve is temporary. long rates will rise and a lot of banks will benefit from short term rate rises so if the fed raises rates, a lot of banks have prime-based loans and earnings will benefit dramatically from that banks are flush with deposits, too much in the way of securities, too much in the way of cash on their balance sheets and they want to put it to work at higher yield so i think we'll see the long end back up again today's the tantrum, friday was a tantrum and you think about the fact that the economy is really going to do very well and corporate loan demand will be there so rising rates the stronger loan growth means earnings investments are too low. >> the past couple of months banks with a lot of other value sectors do quite well and we erased a lot of the gains we've had over the last couple of months i wonder if you think we can

resume those highs that we've seen and also we sort of get a do over at this point. which names do you think you could buy at this point they maybe missed out on over the past couple months >> sure. i think there's a number of names that are really interesting to me, names like cadence bank a couple companies got together and a merger created a $44 billion bank, a lot of the viewers, it's in some of the great demographics of texas and atlanta, a lot of good growth, one of the cheapest pes in the mid cap banking space so really like that management team they'll buy back a lot of stock, they have a lot of capital and get great loan growth out of the southeast and texas and i also like the community bank which is really very fintech forward leaning. in the middleful a merger that may get pushed out the administration is anti bank merger but the merger makes sense and be able to employee blockchain to help the process

of the company they're buying, it's a large mortgage service earner originator and it will work very well fintech leaning banks are really going to end up being winners here so that's certainly one of them earnings rates have cash build to deploy and intrasensitive so earnings estimates will go up for this entire group assuming the economy does well and i assume it's going to do well i think this is a temporary blow >> how does the move away from using banks as mortgage lenders affect these banks in other words, the largest mortgage lender right now is rocket mortgage or quicken loans as i understand it, and whether they are a bank or not, i don't know they're not a traditional bank in the sense of a brick and mortar place like a wells fargo or a jpmorgan. how does that change the equation here, if at all >> sure. i think that banks have been originating selling mortgages

for a long time now. it's really uneconomical to keep them on your balance sheet so i don't think it's really changed the landscape much i think banks, regional banks that originate in their own back yards benefited dramatically from some of the housing booms, places like texas and tennessee, where those economies are booming, people are buying houses they are provisioning them and selling them and the business has been great and also very important to right size that business, too. volume drops off, you have to cut costs so i think banks have done a good job, particularly the regionals have done a nice job in some of the faster growing economies. >> anton, thanks annton schutz. coming up, today's sell-off extending around the globe with emerging markets in the red. our trading nation team will dive into those risk zones, plus as we head to break, check out some of the chinese tech stocks, alibaba down 3% and pinduoduo

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welcome back to "power lunch. the s&p 500 selling off today but for emerging markets it's far worse. check out china, brazil, south korea sharply off this year's highs, chinatown about 33% a strong u.s. dollar and uneven recovery and the emerging variant headwinds hitting this group. opportunity or many unknowns rebring in the trading nation team, todd gordon and jeff kilburg of sanctuary wealth. you're watching the correlation between the dollar and emerging markets. what are you seeing? >> seema it's important. the u.s. dollar index 96 as long as it stays under 97 there is an opportunity here you're absolutely right. this is not due to omicron this is not due to fed chairman powell's comments today. we've seen selling pressure in emerging markets as the u.s. dollar has been raising levels since july i think the opportunity right now is you have to understand the 52-week low in korea, the

52-week low in hong kong, 592-week low in eem, the etf we like to utilize for exposure that provides opportunity. if you're concerned about china, if you're concerned about russia and want to peel off exposure, own india or taiwan, ewt be selective as long as the u.s. dollar index stays below 97 i want exposure because we've been underweight all year >> india the best performing asian market so far this year. todd, putting the dollar to the side, how are you thinking about this variant in the context of the average vaccination rate much lower in these emerging markets compared to the u.s. >> yes, that's certainly an issue in the near term as jeff said i like his india play but the underperformance of eem relative to western markets is unbelievable last time we saw outperformance was 2008 up to 2010 and i took the last ten years today seema not cherry picking and the eems return 22% versus the s&p's

272% there's no question. we have no international exposure in either of our growth or value portfolios to that eem etf, it's about 80% and specifically 34% china china is dragging on this msci emerging markets with taiwan semiconductor the largest holding at around 7% in eem so china is facing debt restructuring out of evergrande and this communist party crackdown in china as presiden xi is returning to go back to the communist roots and stop, quotes western internet and celebrity culture influence, trying to crack down on internet-based companies creating overnight success stories. take a look at jack ma and alibaba. at some point mean reversion will come in and you can invest in it but not right now. >> china, a big part of why emerging markets are underperforming the u.s. todd and jeff good stuff, thank you. for more trading nation head to our website and follow us on twitter. melissa, back to you

as powell's comments hit nearly every corner of the market, the treasury market is raising another alarm, running out of funds -- the treasury i should say, running out of funds to keep the government running >> the latest on trading nation at cnbc.com and a word from our sponsor.

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fed chair powell got the headlines today. treasure secretary janet yellen with important news. the government is bumping up against the debt ceiling ylan muay has more. >> reporter: december 15th is the deadline that yellen gave to congress and testified that she can't guarantee what will happen after that there's $118 billion due to the highway trust fund on that date and the cbo forecast if treasury

makes that payment it may run out of money before the end of the month. our own debt limit tracker shows that treasury is already in the yellow zone. it has $269 billion in cash and extraordinary measures left, in you have to last two weeks or less but remember this is a dial. it can move back ward as revenue come in and forward as treasury spends more money and a couple big bills are due tomorrow in veterans benefits and $6 billion in military and civil service retirement payments. at thes said that republicans would be foolish not to listen. >> nothing would deserve more to disdain from the american public than if we as the economy is recovering were to explode both of those.

>> reporter: still both sides said they have useful and good discussions on the path forward. back to you. >> if they don't raise the debt limit will payments like to veterans retirement or social security stop as of a certain date >> reporter: it's quite possible yellen said the payments could be halted within a matter of days if treasury runs out of cash the question is when will that happen it's a bit of a moving target that depends on the money coming in and leaving treasury each and every day. there's a possibility of wriggle room if treasury delays the payment to the highway trust fund and unclear if they have that authority and yellen said the guarantee until december 15 and then it's an open question. >> thank you very much we'll talk more about the

selloff and why november options volume is approaching record levels we'll be right back. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪

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♪ (vo) reflect on the past, celebrate the future. ♪♪ season's greetings from audi. the markets are selling off today. there you see the dow, now once again pressing in on a 600-point loss picking up speeded in past few moments after yesterday's stocks bounced back from the mammoth drop on friday and the

volatility made november 2021 the busiest month ever for options trading. dom chu has more for us. who's doing the trading? small investors? >> they are doing that the trading is happening this year in january we are closing ott the month of november a sour and volatile note and a contributing factor to the ride that traders have been on is options market. according to the data compiled by the schwab center for financial research we are on track to see volume north of 45 million contracts per day for november previous record is back in january, north of 44 million contracts per day on average why the flurry of activity in action of black friday really pushed the monthly stats over to top

the same black friday was 25 million options contracts so the story is complex with drivers for options but this year a couple big catalysts are first tesla. and the immense retail interest in that stock and others and of course the meme stock trading. if you look at gamestop, amc back in the january, february spike and then tesla trading so far this year, that's been a huge driver of that retail interest in many of these types of stocks. >> you said black friday specifically there's a stat saying that they put $2 billion into etfs on friday it is the retailer investor willing to step up with that shock in the markets. >> it is a good thing. talking about the demockation of

finance it may somewhat add to volatility and does broaden out the base for the people participating and ultimately a good thing for the overall market. >> thank you. >> thank you for watching "power lunch." >> can i wish my son mack happy birthday new jersey drivers watch out. >> "closing bell" starts right now. >> happy birthday, mack. happy birthday, mack welcome to "closing bell," everyone i'm sara eisen at the new york stock exchange monday's comeback fades. they're pacing for november losses in this final hour of trading for the month. >> i'll add to that. happy birth day, mack. i'm wilfred frost. powell signaled a possible taper acceleration more on that ahead sentiment taken a