xors do like cars, they have to be able to afford them we are seeing new cars coming in and being brought and enjoyed as classic cars '80s and '90s cars, vintage off-road vehicles. >> broncos broncos are the new ferrari. this is the car that won the 1966 lemans. it is a $25 million car. these cars are going up in value every year. >> robert, thank for bringing that to us that does it for "the exchange," everybody. "power lunch" begins right now kelly, thank you very much, and welcome back to you. we will see you in just a minute welcome, everybody else, to "power lunch," a rally on wall street arc big one stocks gaining altitude this afternoon. we are kmeeshl free for next half hour to discuss whether the move higher can last, the sudden spike in yields in the past

hour we will also dive into rivian, the arnsz, bitcoin, and the cratering in natural gas prices. a big hour ahead, kelly, tell us where the arches stand right now. >> ingoing steam this afternoon, picking up around noon eastern now the dow is up 755 points, really tracking with the ten-year, which has been lifting off during this time as well it's the outperformer of about 2.2% the s&p up 1.5%. nasdaq lagging but definitely still green, up 1.2% walgreens, visa and am exall highlight the dow's moves. they are the biggest gainers but it is well spread through the components ranging 3.7 to 4.3% higher let's flip and look at bond yields we started the day 1.36, 1.37, he can see how low we were people were scratching their heads given the powell pivot

late morning and early afternoon we took off. traiting just under 1.44 right now. like rick said last hour, if we get to 1.50, expect bigger waves. but that's a little ways off bitcoin also attempting to rebound after the rough weekend. you can see the basically 20% drop on saturday treading water ever since. we are just under $50,000. 49 and change right now. further selling pressure a little bit this afternoon but pretty much holding steady what happens next? can this rebound rally last? mike santoli is over at the nyse >> kelly, relatively encouraging in terms of the cadence this recovery, also that the market itself is responding to a setup which coming into this week looked like the prior five or so percent pullbacks we saw earlier this year. there were two of them in each case the s&p came back below the surface a correction

of the average stock that all was in place. my take on how we are seeing it right now is in the morning everyone was wary of the continued force selling we saw last week. when it didn't materialize, then you could do the dip bye also, the return to this area right there, the highs from september nd we gave up about half of the october into november rally. all of that is relatively textbook look at some of the real beaten up areas, some of the excesses that have been purged in small cap growth, also cloud software. if you look at those things compared to the s&p 500, you see what happened here it's really an isolated exit fromthose types of areas we have been talking a lot with it that's the area that saw a huge run in the first quarter of this year you have wrung out some of the overconfidence in this market in certain segments the underlying economy, if you want to look at some stocks that tell you how the domestic

consumer is doing, look at housing related, auto related and consumer finance that would be here home depot, car max, capital one all vastly outperforming this year haven't wavered that much this year that's an indication of what the real economy is doing even if the markets get unsettled by some of the fed talk and of course the variant. >> mike santoli, and all that money coming into stocks have had a big impact on the bond market after a slow start to the morning, yields have taken off in the afternoon from santoli to santelli in chicago. rick >> tyler, it really was one of those mornings where everybody was scratching their head. you saw the equity markets have some power in the u.s. you saw some of the overseas markets with the same strength but yet whether it was bunds, treasuries, tea they weren't

going anywhere even the short maturities aren't going anywhere they were getting all the action over the last several yooeks flattening the curve today the curve is steepening. look at the difference between the intraten-year and the intra30 on the right side. how much more aggressive as you go down the curve the selling has gotten the catalyst of course -- well, there are several. the equity markets are a big catalyst look at what's going on overseas two-day bunds. you can see, nowhere near the horse power there even though their equity markets were up part of that is their central bank is in a different place than ours. this is a very important move, especially consideration we have inflation data at the end of the week tyler, back to you. >> rick, thank you very much. the nasdaq rebounding after last week's selloff, but significantly underperforming the dow and the s&p, not just today but also over the past

month, as you see right there. in spite of all of the pain, our next guest still sticks with tech into the new year valerie grant at alliance bernstein. welcome back, valerie, good the see you. >> good to see you >> it is hard to argue long term with technology, your top two picks are a couple of companies i have never heard of, one is microsoft, the other google. why do you like them despite the fact that they have gone up a lot already this year. >> both companies really have a lot of things working in their favor. if you look at their competitive posit positioning, for microsoft they have a dominant position in in their enterprise software market and a really growing and attractive position in end cloud computing. i think that that will endure for a very long time what we have also seen, because we focus a lot on human capital because it's a responsible

investing portfolio. you find that microsoft is also a destination for talent they have 100% pay equity, which they disclose. so i think as they are looking to increase their retention of talent, they are really the go-to place for a lot of software developers and people with other valuable skill sets during the great resignation looking at alphabet, similarly, a dominant position in online advertising and really i think best in class in mobile advertising. youtube is a very strong growth catalyst on a go-forward basis i think the company has also begun to demonstrate better capital discipline again, alphabet is also a destination for talent in ways we can see and measure as relates to levels of turnover, pay equity, and key performance indicators that gives you a bit of a sense for why those are core holdings, if you will, from both a fundamental and an esg perspective.

>> why has tech -- not big tech particularly, but why has technology been stumbling? >> because people are nervous. people are nervous overall if you look at the vix, the vix is up over 88% in the last month. there is a lot of uncertainty. if you have companies that have richer valuations or longer duration assets they tend to take a bit more of the pain. the reasons for the uncertainty and the fear are clear, right? we have covid resurging. we haven uncertainty about global economic growth, and a host of other measures but i think we are going to have a strong fourth quarter. so i am sticking to the names that i mentioned as well as some other technology holdings that we have. >> what about 2022 what do you see on the horizon let's talk about how much you expect interest rates to go up and what the impact of that might be, what you expect in

terms of inflation and how that might impact margins positively or negatively. >> right, i think that -- let's start with inflation, because that's really what we hear the ceos and cfos of companies talking about the most i think inflation will persist through 2022, at least until the latter half. and the biggest driver, the biggest thing that's hard to overcome is wage inflation i think that will actually persist even i don't understand 2022 as we see some of the supply chain disruption resolve, hopefully, right, as the covid pandemic resolves, hopefully, some inflation, i think, will expire but i think the wage inflation is really here to see. that's what we are going see in terms of pressure on margins in 2022. >> valerie, that landscape is exactly the landscape people use to say, that's why you should be in financials and energy and the dow and energy and cyclicals and

financials and the rhett of it are you also a fan of those stocks we have heard your case for the big cap technology companies but put those puzzle pieces together for us. >> sure. we certainly have exposure to financials obviously in a rising rate environment you want to have exposure to financials to mitigate that risk, if you will. we have no exposure to energy. obviously, that was a head wind earlier in year but in the last month what we have seen is that the wti has fallen off i think over time we will see that the long-term sustainable of cash flows of some of the energy companies is really difficult to predict and may not be as favorable as people expect >> valerie, thank you very much. do you know why i like youtube, valerie? not that it matters. i like because it shows you how to do things like light the pilot light on your furnace, the how-to things. it's really good for that.

valerie grant, thank you. >> you are welcome. >> i use it for that once a ay not that specific issue but something. >> something like that a water cooler -- i used it this morning. >> i have had friends who repair their own plumbing using youtube. and i am like trying to boil water. shares of rivian are taking off after a slew of analysts initiated coverage of the company with a buy rating k. they go head to head with tesla. joining us one of those analysts who put a $165 price target on the stock. that's the second highest on the street one of the notes caught my eye, it was using 2030 estimates to justify these price targets. i don't know if that was yours >> first of all, thanks for having me. look, we obviously have to forecast a little bit further out here for companies like rivian where there is a great growth story but they are starting from nothing. they are ramping right now we think that the ramp path they are on can actually be faster

unanimous what tesla has accomplished from the first ten years of their life for a variety of reasons so we have looked at a myriad of different valuation metrics including a 2025 sales target as well as 2030 ebitda, and a ten-year dcf we have to look further out to compensate for the growth. >> if you look at tesla, it did take them a decade to basically ipo and then reach the kinds of scale they are at now. from that point of view it totally makes sense. what was your nation of the information's piece that amazon had concerns about rivian's batteries. >> you know, look, all electric vehicles might not fare as well as colder weather. we think this is a known issue it's tough to know based off the one report i would assume that this is something that the company and amazon are both well aware of and working to mitigate.

remember also, amazon mostly has test vehicles now, and they don't necessary lee have the final vehicles or final battery pack and final software configurations in the vehicle. we think that can change overtime i don't believe that will be a long-term impediment to the story. on the contrary, i think amends's involvement in the story is important here because rivian is really going to help amazon try to decarbonize that last mile, amazon's last mile fleet is growing and it hasto go from 100% ice to 100% electric. >> if we look at your estimates -- it would be good to run through the numbers a little bit. for deliveries you are talking about 1.25 million in 2030 how would that stack up to what ford is likely to do, what tesla is likely to be doing at that date and underpin the valuation of

$90 billion thatthe market cap has. >> we have 1% global share total and using our electric vehicle forecast we think it will be 4% battery electric vehicle share you know, it's not insignificant. but there is still room for growth if you look at the rivian plan here, right, initially -- what we really like about the story is selling cars comes back down to product ask we think rivian has great product. we think the r 1t is an exciting vehicle and can probably even appeal to consumers who wouldn't have thought they would want a pickup the r 1s moves to the top of three-row electric suvs. if you think about how they are positions to brand, outdoor, adventure, we have seen this work in other industries such as like a patagonia, yeti, and automotive, jeep, right?

jeep is certainly more of an outdoorsy planned. if you look around there is a lot of families driving around in jeep vehicles we think rivian is positioned to capitalize off that market. >> i think of truck buyers as being very loyal to their brand. you are a dodge ram kind of person or you are a ford f 150 or f 350 person, or you are a chevy person how is this company going to pry those brand-loyal consumers over to a brand that they have never really heard of? >> that's a great question, it's one of the challenges that need to for sure overcome what i would say is a couple things first, the u.s. market, which is where their product is attacking first, is squarely a truck market almost 80% of sales are now trucks

that includes pickups and suvs and that's where rivian is focused. in terms of the initial pickup truck, this is really -- it is not exactly like an f 150 or schiffy several raddo or ram it is more of a mid-sized truck. thing they are going after more of the adventure crowd it will be a halo vehicle for them and also more of a niche vehicle. over time, rivian is going to couple out with more products at lower price points that hit the larger and broader part of the market. >> joseph, can we talk tesla you also updated your price target to $950 what was the catalyst for that what do you make of the price action lately tmplg price target change on tesla was a little bit of, you know, market-to-market recently, rbc published an electric vehicle forecast out to 2050 we reassessed some of the longer dated numbers for tesla that

caused us to raise your price target i think, you know, over the very near term -- i know tesla is off its highs. there has been myriad of, you know, reports, and s.e.c. investigations, and obviously, elon has been selling stock as well, which adds to the pressure i think in our view tesla at around these levels is mostly fairly valued, you know, for the -- for the growth we see over the coming years. and we do expect there to be a significant amount of growth it's just i think the valuation compensation. >> room for tesla, room for rivian, room for maybe the legacy automakers as well, as they pivot and catch up. joseph thanks so much for your time today we appreciate night thanks for having me joseph spac. >> does joseph have the perfect name, spac, for today in finance. >> with a k, though. >> not a c

the reopening stocks are rallying today julia boorstin is looking at the live entertainment names >> tyler, there is more optimism that omicron will have a muted effect and that is sending in-person entertainment stocks soaring today. collect out the feedertheater ss they have been hammered in the past month right now up 10%, 5%, and amc even up 2.5% it is taking into account preticket sales for spider man the road home. concert company live nation is up over 8% and also, endeavor group that's exposed to live events through ufc and some of its other rights that stock up up 5%. also, of course, i want to mention disney is exposed to large gatherings of people via

its parks division that stock is up today as well b 2.5% >> julia, what about twitter what's going on there? >> well, twitter -- well, so, twitter is trading much higher today. it had a selloff last week on the heels of the announcement of a new krechlt coming in. today the stock is up about 5.5% a couple of things in play barron's had a headline saying twitter stock is cheap, why it can double from here that was out friday afternoon. jp morgan name twitter one of its top stock picks into 2022 in a report out last week but this is a stock that did see a selloff last week. the ceo is making management changes that were announced at the end of last week bringing in new -- switching around executives and promoting some folks from within i think inside a sense that that

stock sold off too much. back to you. >> we appreciate it. now to dom chu for a market flash on the banks loving rates today >> the bullish feel to the economy getting better is pushing up the banks as well we are seeing it first of all play out in the interest rate picture. the fern treasury note yield at session highs. a at highs roughly 1.44% just to give you an idea of the range. the low of the 1.37. that's where it has been predominantly to the upside. you can see it over the course of the last couple hours moving toward session highs that's having an impact on the bank stocks. big banks are always the ones that we focus on more with regard to the overall picture. but if you look at yields and where they have been over the course of the past couple of months you then look at how it's playing out with the mega cap banks. look at shares of jp morgan. bank of america, citi, wells fargo. even the investment banks, goldman sachs and morgan stanley

up 2 to 3.5% in trading. where it is having more of an impact, regional banks, more sensitive to traditional interest rate and lending activity zions, m and t, keycorp, all the top performers on the regional banks side of things if you look at regional banks and bank etfs overall versus the s&p 500 you look at some of those moves and put those in context and it goes to show you maybe there is a catchup trade to be had. >> this is all interest rate related, right, the assumption being that interest rates are going to go up higher quicker than anybody thought >> also about the differential between short and long-term rates. they have been collapsing as of late that tends to be in the past an indicator of slowing economic activity maybe there is a bit of a rebound now as things widen out a little bit but again it is going to be dependent a lot on fed policy

and economic expectations one on the short side and one on the long side. >> thank you dom. lawrence and other stocks linked to the reopening trade getting a lift today strong gains this afternoon. as you see there, 10% for american, 11% for united and a start-up carrier is expanding in a time when encurrent looms. breeze airway as, their ceo david kneelman is here along with our phil lebeau phil >> let's bring in david neilman founder and ceo of breeze who joins us frommis lip new york where you are announcing an expansion in your service. tell us why you believe this part of the country, that tri-state area, is right for your expansion. >> you know, it's -- i'm very familiar with this area, having founded jet blue and i always looked at islip and found it interesting there is about 2.8 million

people who live in this part of the country. and there is a lot of migration between the mid-atlantic area and new york we announced today, norfolk and charleston non-stop service from $39 starting in february we think it is going to do awesome. we have a lot of kinds of similar destinations we just fly to places where there is no non-stop service and it has been well received by our customers. >> david, i want to ask you what you are seeing with regard to omicron and the covid-19 cases as we have seen an increase around the country is that slowing demand or is this becoming what i hear from people in the airline industry, at least with domestic travel, it's sort of a known entity and we are just adjusting to it? >> any time you have something new coming up, like omicron, there may be a hesitation, some days of hesitation the market is reacting today to some good news, i think.

this was my hunch from the beginning that it was a weaker version. people are going on with life. they have vaccines we have our protection measures in place i think so many people just want to return to normal life i am really relieved that it's looking like omicron is not nearly what people feared it was. you know, it's -- a lot of pent up demand out there. people want to kind of get back to normal. >> is it the same thing with the face mandates now that they have been extendsed into march, one of those occasions where it has been to a certain exextent accepted it is bog to be part of the airline travel experience. ate not being taken away it has been extended. >> i am glad it was extended only six weeks, kinds of the 20th of january through the middle of march. the six-month extensions obviously were more concerning i think it is right and fair to

say let's give it another six weeks or so to see how it goes but at some point in time we have to decide, okay, you are immune compromised tz you are concern about it let's provide you an n95 mask. you are in a safe environment on the airplane for those that aren't concerned or around in the category of risk, they can go about their normal lives i hope we will get to that point. everybody wearing kinds of a cloth mask isn't really protecting people the way they need to be if they are immune compromised. >> david one last question last time we talked with you you were in alabama taking delivery of your first area bus of america a 220. you are going to put it into service this year. as you add more of those into the route structure do you expect to be adding service on those a 220s out of florida into some destinations, perhaps two popular destinations in northern

south america? >> absolutely, florida to central and south america is some markets that we can fly even in islip today, i think a lot of those west coast markets make a ton of sense. being arizona or california. imagine flying out of this part of the country and going non-stop to some of those places that airplane gives us a tremendous flexibility because of its 3,500 mile range and the number of seats, i might add. >> i hate to cut you off there, i appreciate you joining today as breeze expands service into tri-state area the ceo joining us from islip, new york back to you. >> phil, and mr. kneelman, thank you very much, we appreciate it. lets he look at energy oil has been taking off this afternoon each as the price of natural gas continues to plummet. down 10% today, more than 25% over the past week as we are getting warm weather forecasts

for december nat gas down to 360 per million btus ice brent just over $70. let's bring in john kilduff. a shakeout for crude over the past week. if the rest of the market is shaking off the omicron concern, should we expect crude to go back to $80 plus per barrel? >> i don't think it will have that dramatic effect,cally, simply because this market has other issues in front of it right now, especially in what's affecting natural gas, is this warm winter we are experiencing. looks like december is going to be one of the warmest decembers on record. without pressure on the heating demand that was hyped up with the natural gas crisis in europe we lose a big pillar of support. i wouldn't necessarily be concerned about us rapidly going

back into the 80s. >> that about applies in nat gas, john? there was worry there. it wasn't just that a cold weather would stoke demand it was that there wouldn't be sufficient supply, particularly in europe? >> here in the united states we dug out of that hole or filled that hole. natural gas supplies within this country are within the range of normal, we are only a hair off the five-year average in terms of supplies. so far, so good here we are concerned about europe but a lot was done over that way as well. the russians are playing nicer and the chinese moved heaven and earth to up their coal supply. it is taking pressure off their demand for natural gas that's helping the things that you have with the natural gas market that you don't have petroleum is it is siloed we can't move massive amounts around the world it's constrained in that regard. >> john, let's go back to crude

for a moment again, it's fallen precipitously. why don't you think it is going back up? because of opec? >> again, the lack of the winter fuel demand is going to be key here there is something called the la nina effect persistent in the south pacific which should produce a fairly benign winter thankfully, if that's your thing. it is a big concern removed from the market also, too, opec did put another 400,000 barrels on the market this month i think the russians are going to press to keep going at that pace next month and even into february i think we have that -- consumers have that going for them and just, too, i mean to the extent there is any more omicron developments, petroleum is going to take it the hardest i mean, it just absolutely takes it on the chin when there is something up with the covid-19 variants, pleural. so, again, that's another

constraint on the price rally. >> so the iraq oil minister sees oil at 75 plus that's not that far on brent from where it is today where do you see over the next three to six months? what's the range >> well, i think -- we sort of tested down around 68 the last week on the massive selloff. there is sort of a base. there was a sideways trending margaret for a while there earlier this year between 68 and 72, tyler. i think we will live there until we get into, say, february then we could see another push lower until we get into the next peak demand period crude oil getting back down toward 60 to 65 is not out of the question unless and until we can fully come out of the post pandemic crisis and see a full return of international air travel that's the piece of demand that we are missing and it is not coming back really now any time soon again. >> what does that oil price

portend for gasoline prices? relief there or is it pennies per gallon? >> absolutely. i think you will see the national average below $3. there was a consumer response to the recent high prices we had one of our worst gasoline demand numbers in months last week the holiday shopping season gets that back up but we will see if it remains subdued. i could see the national price at 2.80. >> have we release the barrels from the spr >> kelly. >> did we release the perils from the spr >> no. they are in the works. there is part of a budgetary deal done over the past years that you are seeing oil trickle out of the spr just as part of that to me, the spr -- that announcement was underappreciated to put it in a different context, if saudi arabia said it was going to increase production by a million barrels a day for

the next 60 days, this market would have crashed that's effectively what happened with the spr increase. you can twist the numbers a million different ways but it look like a lot of oil coming to the u.s. opec plus was rightly concerned about it but it should be enough to keep a lid on prices. >> very interesting. very interesting john, thanks for your time today. crude at session highs with the rest of the markets with rates and all. coming up on "power lunch," bitcoin joining the rally after cratering this weekends. we will look at what caused the sudden selling that jolted the market and whether it can happen again. brack, on "power lunch."

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welcome back i'm kristina partsinevelos here's your cnbc news update at this hour. the justice department is suing texas over its new congressional redistricting maps it says the plan discriminates against minority voters even though they make up the majority of the recent population growth in texas. >> these redistricting plans

will diminish the opportunities for latino and black voters in texas to elect their preferred representatives. and that is prohibited by federal law. >> jesse smollett has taken the stand to counter testimony that he paid two brothers to fake a racist anti--guy attack against him. the brothers accused smollett of staging the attack because they dislike the actor and sought to make money by black haling him not to testify against them. the philadelphia flyers fired their head coach after their eighth straight loss the flyers now have one of the worst yards in the nhl an after encouraging start to the season. this is a moment when i would say go, halves, go but their record is similar to the flyers less than 90 minutes left in

the trading day. we want to get you caught up across the markets let's begin with bob pisani and determine whether stocks are acting rationally. >> it is in turmoil but not acting irrationally, not with the fed pulling back on liquidity. the whole move here was dr. fauci earlier in the weekend when he said there were encouraging signs in the early data but that's a small quote to base a market rally on. but you see today some of the travel stocks -- some of the stocks have been hit badly delta down 25% in the last month. a big bounce today biggest moves are companies that benefit from ep urge canning news on omicron. >> about of america, american express, boeing and caterpillar. some laggards on the do you generally tech stock is continuing to lag. apple is one essential that

defies all sorts of gravity. salesforce, semiconductor names like nvidia and advanced micro also speculative tech, shopify and square they are not participating in the rally either this tends to be a cyclical rally. what else is left? when you are afraid of omicron headlines, when you are afrayed of the federal reserve raising rates you go into defensive names. a sign that the market is comfortable today is you can see the wassive stocks, the farm suitcals the consumer staples names and some of the other kimberly-clark for example, all flattish on the day. so this is a sign we are generally comfortable with the idea of looking on the bright side of the market or bright side of the news, at least today. tyler, back to you. >> thank you, bob. let's het back now to rick santelli for a check on the big move higher in yields. hey, rick. >> hi, tyler as i am talking we are going to be looking at 24-hour charts,

all up and down the curves, twos, threes, tens and 30s long dated treasuries, tens and 30s are more aggressive. this is big deal we are in the taper. we are talking about a ticker taper and talking about raising rates. we have now shifted the folk us from the shortened to the long end. the curves are steepening. we have cpi at the end of the week of course as bob pointed out, you could call the equities tumultuous, anything you want but call them higher and towards the highs because that's what is really shaken awake the treasury complex. how many sessions last week, right around noon, it would start to give up its gains today, traders were patient, and when not only did equities not give up their gains they started to get hotter as we went into the afternoon that fueled selling in the long dated tress

res. as look at the banking index over two days it has put that at some of the best prices we have seen in a week kelly back to you. >> thank you, rick santelli. a wild weekend for bitcoin while you might have been sleeping very early saturday morning it took a 20% nose dive. a sharp sudden drop of $9,000 in less than an hour? why did it happen? we are talking crypto crash when we return. i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪

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welcome back to "power lunch,". bitcoin trying to join today's rally, moving higher after a very rough weekend that saw bitcoin drop as low as $42,000 according to estimates, more than a billion dollars in long positions were liquidated on the price drop as trader sentiment plunged. joining us now, frank chap aro director of news at the block, and cnbc's kate rooney kate, describe the news from over the weekend. >> it is a flash crash we have seen the dynamic a couple of times this year. it happened in may, september, and it comes from crypto derivatives. there is leverage out there.

it got flushed out of the market some of the long positions closed it comes from futures, options and lot of this action is happening offshore it is a global asset when you have got one big liquidation event, bitcoin whale selling, it tends to start a cascade. it triggers more selling fundstrat has estimates out there about $2 billion in long positions across the entire crypto market being liquidated we see a spiral effect one person sells, it triggers a cascade. some called it a liquidation train. we have seen the dynamic play out. it exacerbates some of the selling and we saw bitcoin call by 20% in 40 minutes just aggressive declines it looks to be finding support near its 200-day moving average where it is right now. is it the bottom, is it the start of a bear market or are we looking for a bounce i think that's the big question. >> bouncing a little bit today

frank, kate says it is a liquidation train. it look like it ran off the cliff, that train. do you have any sort of difference of opinion with what kate said? that's number one, as to why what happened over the weekend did. and number two, what's the lesson of it for people like me or ordinary investors who are either in or want to consider getting in to bitcoin or a similar coin. >> totally i think kate is exactly right. you have two parts of the equation the first part institutions looking at a shackry macro investor wanted to take money off the table on frye. a lot of money was taken off the table, on the other side of the coin, maybe pun intended are the retail traders who are overinvested in this market, they can't really take it anymore and they are certainly overlevered. if you look at the offshore he can changes we counted over $178 billion in liquidations that happened over the course of friday and saturday's trade.

the reason for this, the thing to keep in mind for investors looking at this market is these cycles will continue to play out for three reasons. the first of which is, there is higher volatility in crypto. there srnt circuit breakers that we have in traditional finance, nothing that can keep a floor after things start going down really really quickly. and the market never closes. so there is not really an opportunity for information to be digested once this cascading effect takes hold. >> frank, i also wonder -- i thought it was very interesting that you could see and calculate the liquidations that were taking place for those that talk about the leverage that's still in the system mixed with stable coins and whatever, is there a way of calculating that as well. >> you had a number of exchanges offshore limit the amount of leverage they offer to their clients. there was the well-known 100x leverage offered by bit max

which was kind of a meme in 2017 them and a lot of others changed that leverage. but you still can get 20x. my understanding from the traders that i speak to on a daily basis, the fact of the matter is retail at this moment is really overlevered. a high proportion of retail using leverage right now. >> kate, very quickly, you mentioned a whale, a person who may have triggered it. do we have confirmation that there was such a whale if so, what's the speculation on who that might be? >> so it appears somebody sold looks like half a billion dollars. you can see that from the on chain analytics. one of the things now is legacy institutions come in and start holding. i am told they are looking to preserve some of their annual gains heading into the ends of the year it makes sense they would sell if they had made a profit here it tends to be an all or nothing stance in crypto a lot of institutions don't want

to be left holding the bag and they have rotated, might also be things like tax selling. we don't know exact lee when it is, but we will keep you posted. >> thanks, frank, and kate. utilities usually aren't as sexy as crypted bow-to-'s 2% gape looks good. meantime, tech stocks are down 4% we will look at both sectors and ask is safe the new sexy when we come back.

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welcome back to "power lunch. what's moving in this market rally picked up this afternoon reopening stocks are by far the biggest movers expedia, booking, airbnb up 6 to 8% check out the airlines double digit gains there off the levels up 7 to 9%. and if you're going to fly somewhere you need a place to stay marriott, hilton, hyatt with nice gains today about 5% on the session. ty utilities a top performer today. investors rotated out of tech and into safe haven groups which are the best stocks to lead the next leg of the rally mark teper and mish schneider. what do you think? utilities a place to hang the hat or not

>> i have an expression when the uncle is drunk at the door it's time to pay attention. that's what's happening here there's benefits in that it's interest rate sensitive and tells you it's superceding the notion of rates going up and has a part of the infrastructure package so some energy stocks that particularly relate to utility will do well also, water. we are looking at the water stocks within the xlu space but a caveat is that it is not near its august-september high yet and has work to do before it's really sexy. >> mark, her drunk uncle showed up what do you think? >> he's probably not very sexy just like utilities. i try to not get overly cute with the utilities exposure. it is like a set and forget it

sector for me but about 2.5% of the s&p 500. that will amount to one position for me despite the last week or so of outperformance defensive stocks have been a dog over the last 22 months or so on an absolute and r relative basis it also really -- utilities haven't acted like a risk off play when they're supposed to. i don't want to get cute here and own the best one so i have nextera. you have the traditional utilities with the renewables. if the biden administration gets this build back better agenda to go through they're going to be huge beneficiaries of that plan. >> thank you we appreciate your time today. for more trading nation head to the website or follow us on

twitter. now some of the big chip names are getting chopped today. nvidia giving up about 3%. but if you look at the year to date changes for the names you see green on the screen. some best performers in the market can they keep that up into next year what the analysts are saying next ♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor

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welcome back less than an hour in the trading session seeing the bounce in stocks this afternoon and about 150 points off the highs dow up 776 at a high point i believe. still the chip stocks are sitting this one out >> shares of nvidia weighing down the nasdaq today and down over 3 ps and pulling down the

semiconductor sector as a whole. you can see those still a sea of red with only intel up over 3%, almost 4%. the semiconductor etf shares -- teetering within the last few minutes but overall what we'll talk about keep in mind last week the federal trade commission did file a lawsuit alleging nvidia, this is a $40 billion deal supposed to be between nvidia and with uk chip designer arm and the ftc believed that would stifle innovation analysts say don't fret. it can be offset by chip demand heading into 2022. an example is today citi analyst named applied materials as a top pick for 2022.

the bank prefers semiconductor capital equipment companies because of the increase of government incentives. there would be subsidies to manufacture chips here and alleviate the shortage other analysts bet on micron technologies for 2022 noticing a drop in micron's memory chip inventory and predict more wafer capacity growth and believe the firm can leverage and increased the price target to $99 at $82.75 analysts have bullish on the sector >> yeah. quite a down week for nvidia thank you. appreciate it. we have an hour left in the trading day.

stick with the next folks coming along in a minute to take you through on a day where the dow is up 630 opponents. now off the highs but nevertheless roughly 2% gain and nasdaq trailing a bit but also higher thank you for watching "power lunch. "closing bell" starts right now. thank you. welcome to "closing bell." i'm sara eisen here at the new york stock exchange. plenty of green on the screen to kick off the trading week. the dow is erasing last week's losses. >> good afternoon. i'm wilfred frost. today investors digesting the latest on the omicron variant and optimistic headlines white house medical analyzing dr. fauci saying the data is encouraging. reopening plays like airlines, cruises and online travel jumping today. oil is getting a pop