no i will not go to the gym. >> you have got the turf do a refresh for all the viewers who want to replicate it that does it for "the exchange," everybody "power lunch" picks things up right in and out -- right now ♪ >> and welcome to punch, i'm eamon jafrsz in tour tyler mathisen today here's what's coming up. full steam ahead, the markets are factoring in faster fed following positive vaccine news from pfizer and investors are taking it in stride staying power. the stay-at-home trade is still a thing, believe it or not bank of america says demand will remain elevated for the home-related items the analyst behind the report has the names to watch. and power failure. texas sustained $195 billion in damage during last year's deep freeze is its grid ready for this winter we have a live report from the

lone star state. >> thank you, eamon. the market taking a breather from its two-day rally the nasdaq the outperformer up 68 even toe the turn year above 1.5% earlier on. it has come down after a mediocre test reauction and news on the omicron variant here's the tie'd how, 1.56 got above 1.52 late morning. we have been pulling back some the nasdaq having a lift today we also have optimism amplg after pfizer said its booster helps protect against omicron. it is giving a boost to the cruise lines today las vegas sands united also showing 4 to 5% gains. continuing a strong week for them treasury yields still with the 1.5% range, firmly above where we were at least last week meantime, the biggest s&p gainers in the today's session,

the travel and entertainment stocks i just showed you the casino play still has legs. we begin this hour with pfizer and studies that show a booster dose of its actionine provides strong protection against the latest covid variant. the stock trading. meg tirrell has the details. >> eamon, last night, actually, we got some data out of south africa that suggested that the efficacy of the pfizer biontech vaccine goins omicron could have taken a big hit at least if the antibody neutralizing levels but this morning pfizer and biontech put out their own analysis suggesting yes, two doses does show a 25-fold decline in the neutralizing antibodies that block the virus from being able to infect cells. but boosters boost it back up by 25 fold. >> three doses of our vaccine against omicron basically is

equivalent to two doses of our vaccine with the original strain these are good news. two doses, the reduction was significant. but the third dose restored those very, very high. >> of course the cdc already expanded eligibility to boosters everybody six months out from their mrna vaccines or two months from their j&j shot the number of boosters ticked up since thanksgiving we have heard about appointments being hard to get for boosters perhaps they might become harder now knowing this seems to protect against omicron. it is still early days we will exempt more information but positive news this morning >> meg, i tell you, we had difficulty in my area in maryland getting booster appointments able to get them, but not for weeks. you have been exhaustive and some would say super human in

your coverage of this since day won. i wonder with today's news do you start to fell like, et cetera the time we can begin to say we are getting to the ends of this pandemic, at least economically or is that too much to ask >> you know, so much hinges on what this winter looks like. we are still in the throes of a bad delta wave, in the beginning perhaps of another one heading into the winter. while hospitalizations have not been as bad as they were last winter, because we have the vaccines' protection, they are still increasing and we are still over 1,100 deaths averaging every day. it is really hard to say that the pandemic is really over in any real sense, economic or otherwise. we will still have to see a lot more protection in the population and see how this wave kind of shakes out and thank you for the kind words, eamon, i thought you said i am exhausted that is definitely true. >> exhaustive and exhausted, both, definitely but congratulations on your coverage it has really been terrific. hopefully this pandemic doesn't

go on much longer for all of us, especially for you >> as i am reading headlines out of the uk, boris jansen says you should still have nativity plays. we are still at this juncture. >> it is crazy. >> the fed seems to be on one of two paths, one if the virus continues to get worse, one fit continues to improve >> it's like heads or tails. markets are reading new positive vaccine development and comments from officials to suggest that almost whatever happens with the virus the fed will raise rates probably in the spring news today from pfizer that a third booster works against omicron raised probabilities for fed hikes with may now the likely date for the first hike a second in september, and the third priced in for december with around a 60% probability. there is toying of a hike as

soon as march but it is not priced in just yet the probability for quicker rate hikes had already been on the march after fed chair powell said he would view another wave of the virus as inflationary rates on the would-year began to rise on those comments from powell last week it surged this morning before easing back. the sharply repriced fed outlook comes with little or no reaction so far in equities it could give the fed confidence to pursue the faster tape and rate hike timelines. unless -- the only caveat here is a drastic economic slow down resulting from a very rural issent virus we also have the new jolts data which shows a little drop of people leaving their jobs but still 11 million opens and millions more looking for work. >> this is another reason,

kelly, your question leads right back into hawkishness in terms of the fed outlook you would think by now we would be approaching some kind of equilibrium where we have the right prescription, the right wage levels to bring people back into the work force. these job openings at 11 million tell me there are still wage hikes to come through the system here so it may be that to the extent that you have wage-driven inflation, the inflation numbers could get worse from here. and that's a reason for the fed to be more hawkish and pursue the speedier time line. >> steve liesman, you wonder whether bosses are psychologically resistant to the ideaed of wage hikes as woe watch in other sectors, tech stocks are snapping back the s&p tech index higher today following the nasdaq's best indicate since march our next guest says it is a sector you need to own and calls it the investment vehicle for buying profitability let's bring in michael

couldn'tor wits. tell me what you mean by that. >> we have seen a big surge in tech stocks over the tech sector in the last few months, in the fourth quarter and tech usually does pretty well in the fourth quarter the reason tech stocks are outperforming i think is really the question our view is that it's because investors are looking for profitable companies as we do face a slowdown in earnings next year so the reason we believe that to be true is that number one, sec as a sector has the most highly profitable companies of the 11 sectors. in additioned to that, that same sector, highly profitable companies r outperforming in just about every other sector. so it's not unique to tech it's just tech has a lot of it as we go into the next phase of the market cycle in 2022, where earnings growth slows, a factor like profitability typically does really well that's why tech probably does pretty well next year.

>> is tech not hit ased aboutly as other stocks during the pandemic other sectors struggling during the pandemic because their operations were affected due to supply chain and everything else i wonder, as other sectors find their equilibrium going into 2022 if you think relative to other sectors tech might not perform as well relative to other sectors catching up. is that a fair read? >> out of 68 industries right now, earnings expectations today for all but three of those are above precovid levels. the obvious airlines and hotels -- i forgot the third one -- do not have those earnings quite above the precovid levels but they are up 60% from their lows. i would say no, tech stocks because they have the most companies with higher growth, strong fundamentals, lower beta, and higher profitability, that sectoring is going do well it's really the big caps within

that space that do well. buying the tech etf or the index probably works pretty well in the last weeks we have seen a divergence in dichotomy within the sector companies that have negative earnings or lower quality growth stocks have not done quite well because they don't have high profitability. so there is definitely -- if you are a stock picker within tech you have to be cognizant whether or not the company has high profitability or not we think there will be bigger divergence next year. >> are you a roaring twepts kind of guy, once the pandemic clears, whenever that is, do you think we will get to the roaring '20s that everybody was talking about over the summer but got pushed back due to omicron >> i mean the stock market has been pretty good over the last ten years. i don't know what more people want >> there can always be more? we have seen the equity market valuations double. i don't think we are going to double in the next ten years but, no, i think that's the

wrong way of thinking, especially into 2022, because right now we've got such low risk premiums. credit spreads are still super tight, financial conditions are extremely easy that's because the economy and earnings are so strong right now. that's going to change next year as we begin to see a reflection of the end of fed easing and some tapering and tightening in emerging economies and fewer positive earnings revisions. you don't want to be a risk-on bull next year being bullish in the tech sector is not that. it is quite the opposite it is lower risk companies again, those with profitability. and so i think the recipe next year is lower risk, better fundamentals, equals higher return. >> it is interesting, because we just heard from steve liesman talking about the market slugging off the idea that the fed is going to hike either way here given projections for gdp and everything else we are talking about. i wonder if you could put the fed back as a risk factor and

say they are going to do what they are going to do but if the economy is strong for tech or other sectors maybe it won't matter as much as we are used to thinking of it as mattering. >> one thing i will be at is the ism prices point index it paekds in may at a loefl of level of 90. it has come down in the last few months that's usually the first sign of inflation peaking. doesn't have the issues that cpi does as we comp last year's base effect our view is that covid gets -- the backdrop gets better for covid. that will actually be disinflationary or even deflationary in some areas, which would actually take the fed hiking expectations and slow that down. so whether or not the fed -- if the fed raises rates three times next year, i'm wrong but if they rates raise only once then i think it is a

different backdrop from what the markets are expecting. >> an interesting way to think about it, maybe the post peak of the pandemic equals sort of a post peak in inflation as well michael, thank for your thoughts appreciate it. coming up, the stay-at-home trade still has staying power. bank of america has a number of stocks it says will continue to climb. we will dig into that. and a bank battle, two traders, two opinions on whether the sector is a buy at theseevs. adg tion, coming up. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living.

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or visit an xfinity store to learn how our switch squad makes switching fast and easy this holiday season. welcome back the stay-at-home trade has staying power, according to bank of america's latest survey taken at the height of the omicron surge, 80% of respondents say they refer to work from home, 88%. >> uh-huh. >> nodding along here. 70% are planning a home improvement project in the next 12 months on top of everything we have already seen and these are the kinds of tail winds our next guest says should be good for the stay-at-home plays like home depot, lowe's. liz is an analyst at b of a. a conversation that comes you will all the time now, a lot of people think, especially with omicron, that people just aren't going back to the office the way

we thought even six, nine months ago. >> we have run this survey every three months since the height of the pandemic, not only is the majority of americans still working the majority of their work week from home, up to 42% now. the 8 % of people that said they previous to work from home haas hasn't changed either. i has continued to go up we thought people were maybe tired of working from home that doesn't appear to be the case according do our is it survey a lot of the stay-at-home beneficiaries in the home improvement space we think would continue to do well here. >> how many upside do you think home depot, lowe's, floor and decor -- those stocks could have >> the valuations are not unattractive here. lowe's trading at 19 times next year's earnings. that's a market multiple.

>> wow. >> these are not stocks that are trading like they have been running at a huge growth rate and that's going to go into perpetuity these are not bubble stocks. they look attractive from here especially when you consider the market share gains from home depot or lowe's in this environment where schi shortages are a big issue. these are the retailers getting prioritized by suppliers for product. that's a advantage. >> behind me here at cnbc global headquarters it is a rare day here we have actual people back in the building at cnbc to lift the curtain a little bit, it is visiting day here at cnbc for a lot of the workers who were working from home come back in to the office in january today is the day to come in and get your bearings. some of the people here have never been in this building before because they were hired during the pandemic. i saw one person in the cafeteria who didn't know how the check out system worked because he had never worked here before the draw is they are handing out

office semis in the lobby here that's the big thing to get the work from home people to come back to the office >> are you suggesting -- >> you have got to be sticky notes. >> whatever it takes. >> 88% of the people want to work from home sticky notes is not going to bring them back to the office. what is? >> a flexible working environment, coming in a few days a week to collaborate and having flexibility to work from home when you have to do things like managing child care, right, or other at-home needs toer the retail side it is catering to that having an office in an actual work building and also having home office as well so the home office trade is still very, very attractive here stho but bosses don't like the idea of work from home, right? all the bosses who are bosses now came of age in an era when

all of them could see his or her minions in front of them this has made them uncomfortable for two years. when you see all the ceos saying you have got to come back in, there is going to be tension between the work force and the people operating the work force. >> it is going to be interesting to see how it evolves. i mean, right now, the evidence from our surveys is pretty clear, that this is way that the work force wants to go right now, i think they actually have a fair amount of power in that dynamic. >> i -- we only have a tiny bit of wall space in the kitchen i am repainting it this week i went to home depot to pick out cabinet knobs. i am living everything you are speaking of. style ahead, 2021 has been a banner year for ipos in terms of numbers, but not performance up next well look at the rough

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welcome back i'm rahel solomon. here's your cnbc update at this hour england is going the plan b to control covid. people who can work from home are being asked to do so a mays fask and covid passes will be required for many indoor spaces the prime minister says omicron's rapid spread made the moves necessary. >> we know that the remorseless logic of exponential growth could lead to a big rise in hospitalizations and therefore, sadly, in deaths that's why it is neither proportionate and the responsible thing to move to plan b in england while continuing to work closely with our colleagues in the devolved administrations see we slow the spread the verse. meantime, president biden wants the country to be carbon neutral by 2050.

legislation calls for washington to buy only electric vehicles by 2030 an attorney for the white police officer on trial for shooting dan day wright says all the 20-year-old black motorist had to do was surrender. he was shot and killed while trying toavoid arrest. officer potter says she was using a taser when she shot him with a hand begun. >> stitch fix has been public for four years, belief it or not, but this year a host of new e-commerce names came to market. are they crowding people out court me reagan has more on rough road these companies have faced. >> kelly, yeah, this year saw a flurry of direct to consumer and e-commerce first companies dive into the public markets. but it has been far from smooth for most of them

poshmark's shares down 52% since the ipo in january auburn shares shed 40% since a month ago. rent the run reports after the bell today, down more than 40% from its ipo in october. average analyst's rating buy other overweight for most of these. hype is hot for many of these names, revenue growth is, too, but profitability is still elusive and hyper growth just isn't enough to satisfy investor who is watched stitch fix struggle as well as hyper darlings uber and lyft santa may not be able to deliver what investors want either because so much of the bull case is banked on potential but really, it is a show-me story for investors. >> what if you like the sort of

idea of all of these -- of people doing shopping via e-commerce are there other ways to play that theme instead of just these particular retailers. >> yeah. so i actually tapped into the wisdom of our friend mike santoli about some of this i really wanted to get his take on why he thought that the analysts were so positive on the stories here but the stocks were doing the exact opposite he said, look, it is stories like stitch fix that really haven't been compelling that shy people away. and they can invest in names like shopify or square that still sort of play on this e-commerce boom or the boom of small and medium-sized e-commerce players but they don't have to wait for this profitability engine to kick on as the capital expenses just continue to grow. >> i ask mike everything, personally courtney -- >> he knows it all. >> he's got it all courtney, thank you very much. still ahead on "power lunch," will the lights stay on this winter in texas in months

after the state's deep freeze, the grid could be tested again is it ready? we will dive into that next. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade.

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commodities, and how texas is getting ready for winter a year after their disastrous power failure. let's start with stocks. right now, you can see the major averages coming a little bit higher the dow still down 35 points the s&p up 6 now, and the nasdaq up nearly half a% adding 66 points, the gains in early this morning fueled by pfizer's news about the vaccine's effectiveness against omicron. check out apple, which is becoming something of the new safety trade it's leading the dow again today. it is up 2.5%, 16% now in a month. and treasury yields, meanwhile, are also continuing to gain this week the ten-year crossing 1.5% rick santelli is out in chicago tracking more of that action for us rick >> yes kelly, let's start with this morning's number you know, that jolts was pretty powerful slightly over 11 million the second number slightly over 11 million we were closer to 11,100,000 on

the july number. we have two biggies. while this was going on the last jobs report we learned that the labor force participation rate moved up a whopping .1 to 61.8 that's 1.5 points, 1.5 below the 63.3 precovid participation rate why am i telling all this? because we have an issue here. if we don't get people back to work, we are going the see what the uk and others are seeing it really takes a toll on the economy. now, if you look at tens, here's a two-day chart of tens. once we traded above yesterday's 1.48 high, it went zoom, zoom, zoom, cht pattern of late. let's go to a three-day chart. monday's high, 1.44, when we traded above that yesterday, we firmed up. there is this strength selling into higher yields that continues, and it is steepening the yield curve if you look at the 0-year since

the friday after thanksgiving, boy, really zoomed today et cetera the one maturity that's up the most on the session. and it's getting close to preomicron levels. contrast that with the two-year, which even though it is down a couple basis points today you can see it is higher, higher than the variant day, the friday after thanksgiving finally, the pound versus the dollar the one-year chart the weakest level versus the greenback. they call their workers inactive, the people that disappeared post covid inactives are a real problem for the economy. calby, back to you. >> gets any lower they might get a tourism boom. the weight of omicron fears continuing to boost oil, which is higher again today. >> oil moving between gains and losses today before ultimately finishing here in the green. it was pretty muted session compared to what we have seen lately traders are saying omicron won't have as much of an impact on

demand as previously thought, wt up .7% present crude at 75.9 for a gain of .7% as well oil is now 16% above the recent low on december 2nd. and the market is also shrugging off a smaller then expected decline in crude strikes although demand for petroleum product averaged 20.9 million barrels per day over the last four weeks, up 10% compared the last year. while wild temperatures in u.s. sent natural gas prices tumbling in europe natural gas prices are once again at record highs commerce bank saying this trading knows no bounds. >> i feel like that carbon price is the key to the price of the rest of the energy complex pippa thank you very much. speaking of energy, as we head into winter we are nearly ten mondays from one of the worst disasters in texas history

a. record cold crunch hit stretching power grids to their limit and beyond it cost nearly $200 billion. more importantly, it cost more than 200 texans their lives. as this winter approaches, many are asking if it could happen again. brian sullivan is down in texas with more. brian? >> reporter:cally, that 200 estimate may be low. there are some numbers as high as 700 that may have lost their livls less than a year ago but with covid and the rest going on this hasn't gotten the attention it deserved. this on some level would be the most extensive natural disaster in american history if it was count as that. the winter storm hit weather dropped for a week power play prices surged to records that cut down and shut down a lot of power generation 4.5 million texanings lost power to their home. it is its own grid

they couldn't bring in power from other states. 200 plus people lost their lives. water was shut off some people didn't have water in their homes for weeks or mondays because pipes burst. the question is, that happened afterwards, finger-pointing. who is to blame? regulation wind coal, the plant behind us the stack froze so solidly you couldn't even get the bulldozer to pull it up. the question, has anything changed from then to now or this winter that could prevent it again? we spoke with the mayor of houston. he also previously served in the texas legislature. he really said, no, but they are working on it. >> within that field there are at least $50 billion for electric grid. we are hope iing to pull down s of those dollars for the state

of texas >> reporter: so, kelly, there you go that is of course the infrastructure bill that mayor turner is talking about. there is a lot of talk right now. that's the problem there is not a lot of action one thing they are doing is they are proposing to make sure that natural gas relay stations are deemed critical infrastructure an important distinction because that means power companies, when they panic liker cot did last february, can't shut that down, which means the power plants can at least keep getting natural gas. because, remember, they didn't shut down because they were told they thut down because the power got shut off at the relay stations so they couldn't get the fuel they needed the answer, no, nothing has really changed but the fact is winter is coming >> two factors primarily blamed are there was no winterization for these systems for obvious reasons. if you wrnize a state's entire

power quid it is incredibly expensive. hopefully people are doing it locally as much as they can. but it is hard to do if it is not built that way the second factor, the state has its own power grid there was nowhere else to get power. i don't know if they changed it so they can import power if they need to. >> they have not in fact, there is not each re -- not even a discussion about that there are pipes connecting here and a couple of other states but those froze and shut down, too, because of lack of relay power it probable plow wouldn't have helped that much but texas does what texas does texas is its own things, they are proud of that. they try to keep the federal regulatory commission off their backs. i will leave you one anecdote about where we stand and when it comes to money i reached out to nrg and estra

to install generators would be $200 million across the state. i mean these days that doesn't sound like a whole lot of money. if you did that, you might be able to ensure the water and the power could stay on so people could make soup and have heat to light it it all comes down to money, which is why we are talking about this throughout the day and we will on the news with shepard hit tonight as well. like i said at the top, this was not a pure natural disaster because there was human error as well, machinery air audio. but if it was considered a natural disaster it would be the most expensive natural dat in the history of america with nearly $200 billion, with a b in property damage. and yet they are still talking about it

they are praying for good weather. not a strategy >> not at all. brian, thank you so much brian sullivan reporting. coming up, bitcoin hanging around the $50,000 level as congress holds a hearing on the cryptocurrencies what it means for the future of crypto and decentralized finance coming up. plus, roku company settling a feud the tas xtosdeilne ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪

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welcome back, everybody. let's hit some power movers. we will start with nxpi. the stock is on pace for its biggest job since june of 2020 after ubs initiated it with a sell and a 176 price target. they are saying growth are underperform sentinel reported better than expected ruts but several analysts cut their price targets. it is down 6%. dave and u.s. abouters, rising after earnings, saying the recovery seems to be taking hold as walk-in business is

rebounding but special net and revenues still way down from 2019 i have personally been spending a lot of time at chuck e. cheese the play is up 7%. for dave and busters and all the being movers going to our website. exexof all six crypto companies testified before the house financial services committee. unstable coins was the focus joining us now, rosie rios great to have you here welcome. >> thanks for having me. >> in many ways ripple is emblematic with the problems of with the way crypto is regulated where the whole approach has been piecemeal no one involved in any project ever knows if there is going to be a clamp down waiting around the corner while everyone waits for the broader rules to be clarified. >> for me, i think of ripple as actually a solution. i had many options in front of me the reason why i chose to join

ripple's board is because it actually has some functional value. you know that xrp is the technology that's used to facilitate cross border payments among financial institutions it is a great model of how to think about the utility of some of these investments moving forward. >> i want to ask you about a story i reported on earlier in the day today. that is the situation that happened in coinbase back in november we had this unusual situation where a stable coin that was supposed to trade at the value of the yen suddenly popped and then crashed a lot of the kroibs users were frozen out of their accounts by the exchange locking in a lot of losses for a lot of people those people are outraged, filing petitions, they are organizing on facebook from a washington perspective, you look at a situation like that, where the exchange simply locked the customers' accounts and say, hey n a couple of week we will get back to you with solution how would a regulator approach that situation and say, yes, the

exchange has to eat the losses or no, the customers have to eat the losses. >> this is uncharted tear other for a lot of folks, especially washington, d.c. unfortunately wash is usually a follower not a leader. when you can talking about technology innovation at this level, where people's personal money is at stake that's going to make a difference you have to leave emotion off the table. i think you have the right people in place. gary gensler -- having him is a great move i think obviously with the council chaired by secretary of the treasury, i think you have the right people in the room to be able to have the conversation that are really hopefully going to provide a road map for all of these issues what you just mentioned is one issue. there are many other issues, many other players, the s.e.c., et cetera. >> let me put you on the hot seat and ask you if you were in a

regulatory position -- it doesn't exist right now. if you were, and you looked at a situation where the crypto exchange locked customers out ever their accounts and said you have to sustain those losses until we figure out what to do here, how would you handle it? >> we have to think about it from a policy perspective that's going the last for years to come, and obviously evolve for years to come. flexibility and optionality is going to be key. a lot of the new investors, the next generation of investors who kind of want the autonomy, the independence to make their own decisions all has to be taken into account i don't think there is a one size fits all. there is not going to be just one incident that is going to set the mark for all of these issues moving forward. >> what do you think is at stake in this hearing taking place today? the stable coin coinbase issue -- the real case seems to be how do you allow tokens and

defy, and coins to take off and be available to all kinds of investors, not accredited once, while staying within the regulatory bounds of the u.s. system when should we expect similarity on that? >> well, i think, again, this is a framework. all you can really think about today is a framework who are those who have the most at stake, i mentioned the financial stability oversight council. they are definitely policy issues that all of these stakeholders have to keep in mind i don't think any of this is easy i think if the answer was clear today, that answer likely would have been proposed this is the beginning of a process, certainly not the end of a process >> all right rosie, thanks for your time today. we appreciate it. >> as the feds seem sure to be raising interest rates soonerer later you might think this is a good time to bet on banks. one of our trading nation

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the more questions we have. the biggest question now, what's next? what will covid bring in six months, a year? if you're feeling anxious about the future, you're not alone. calhope offers free covid-19 emotional support. call 833-317-4673, or live chat at calhope.org today. shares of beyond meat are popping today as they add two

tyson executives to the c-suite. kate rogers is here with more. >> the stock up over 5% on the addition of execs with years of food industry expertise. doug ramsey will become chief operating officer. and bernie will become chief supply officer that is a new role reporting in to ramsey. he also comes from tyson with 30 plus years operation there and supply chain management. short interest also doubled since july according to data at 36%. now it's expected that operational challenges will continue to weigh on results with net sales expectations of q4 between 85 and $100 million back over to you >> kate, thank you >> now let's check in on the

banks. investors look ahead to december's pivotal federal reserve meeting. is a potentially hawkish bank a boone for the fed? john, you are bullish on the group. tell us why. >> yeah, five quick reasons. we know the fed's raising interest rates that far does good thing for banks. two, the consumer is healthy which helps the bank loan books. we've seen massive m&a over the regionals over the past three or four years i think that's going to continue, the u.s. is overbanked and five there's going to be a reconstitution of the s&p 500 where fintech companies that are coming out of the tech sector and being reclassified as financials, which is going to attract more growth-oriented investors into the financial sector so, i think the financials of banks look attractive here

>> something may be in the charts that has you concerned the past couple of weeks what is it >> we're seeing the yield curve, which has been getting much steeper, is now starting to flatten out quite a bit. if that continues, that's going to have -- even though the fed's going to be raising interest rates, that will have an impact on their margins again, i hadn't been very bullish. i'm more neutral rather than bearish. you see that the 50-day moving average has been really important on the kbe bank etf. if it breaks below that belevelt $53. that's kind of a doubly key support level. if it breaks below that level, i think people will want to back off and look to buy on a more serious pull-back rather than right here >> so if investors don't want to play the whole sector and if they don't want to go with the etf, if you're neutral on the sector, how do you say yes here, no there, or do you? >> i think one of the things is

you go with the high quality names like jp morgan, bank of america. incredibly great management. go for the high quality. >> great matt, john, thank you both for more "trading nation," head to the website or follow @tradingnation on twitter. >> penetrating, insightful coming up, roku's feud with youtube is over, and the stock is taking off. we will have all the details, next and now the latest from tradingnation.cnbc.com and a word from our sponsor. every trader should accept that losses are a part of the process. so in an effort to reduce your risk and define your max loss, consider using stop or stop orders this approach can help eliminate emotion from your decisionmaking and set you on the path to consistent trading schwab is the better place for traders.

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that helps you build a future for those you love. vanguard. become an owner. as i observe investors balance risk and reward, vanguard. i see one element securing portfolios, time after time. gold. your strategic advantage. welcome back, everybody. look at shares of roku among the best performers in the whole market today after they patched things up with google, you're going to have you too. julia boorstin has more. >> roku shares skyrocketing 19% after that company reached a multi-year agreement with google to keep youtube and youtube tvm rokus streaming platform google had threatened to pull the two apps from roku tomorrow if -- and a blackout could've sent youtube to amazon's fire tv

or apple tv. now that uncertainty about what was going to happen had been an overhang on roku shares. roku saying, quote, this agreement represents a positive development for our shared customers, making both youtube and youtube tv available for all streamers on the roku platform and youtube saying, quote, we're pleased to have a partnership that benefits our mutual users now the terms of the deal were not disclosed, but this does resolve a contentious battle over what percent of ad revenue roku could take from youtube and roku claimed that google required it to preference youtube content over other providers. this is a battle that drew the attention of congress as there are many there that looked to crack down on big tech senator amy klobuchar issued a statement in support of roku >> amazing, julia, thank you very much. it tells you actually about the significance of all of these platforms when a senator weighs

in >> i think washington doesn't quite know what to make of it and who the big winners are going to be. and the question is who are the big spenders going to be >> it's been fun having you here thank you for your time. >> this is great this beats work from home. >> thank you for watching "power lunch," everybody. "closing bell" starts right now. ♪ thank you. here at the new york stock exchange, the explosive rally that kicked off the week taking a bit of a breather today. though the nasdaq and small caps are outperforming. >> let's take a look at what is driving the action today got an early boost this morning after pfizer said three doses protections against the omicron variant. chip names are under pressure today in part of a bearish initiation that stock among the worst perfrs