"power lunch" begins now >> i'll see you in a sec welcome to "power lunch" and here is what's ahead we've got a busy hour. buy this, sell that. from taper to tightening, the fe fed expected to speed up its tapering timeline. we'll be there for you all day in the afternoon to watch that story. meantime, the stocks to own and the ones to ditch ahead of that big decision what goes up is starting to come down high flying stocks faltering the memes creating soft cracks in this market is it a sign that valuations now are beginning to matter once again to investors and a regional banking player the ceo of valley national will be with us to talk about rates and why some inflation he thinks is permanent >> all the major averages are lower, but the dow is only down half a percent while the nasdaq is down 2% points wise, almost double what the dow is microsoft and sales force, the

worst. microsoft having its worst day since march 2020 tesla meanwhile among the biggest laggards on the s&p. it's down almost 20% this month. meantime, bank stocks are highigher uber shares higher on comments from its ceo that last week was the company's best ever, best ever, in terms of gross bookings both for ride share and delivery shares up nearly 4%. >> all right, kelly, we're just about 24 hours away from the fed's policy decision. they're meeting down in washington today the decision tomorrow, central bank expected to accelerate its tapering of asset purchase, which would allow officials to begin living interest rates a little bit earlier next year if that's what they end up doing. so what do you do now in anticipation of buying or selling? is it time to buy this it is time to buy this, sell

that, fed edition. i guess my question is on the buys, is it a direct derivative of what you think the fed is going to do and are your sells sells because of what the fed is likely to do zblt on the buys, these are companies that are cheap jpmorgan trading at 13 times earnings take chevron almost a 5% dividend yield when you get into an area when the fed is going to taper then potentially tighten, you want comp companies that have immediate catch flow, solid balance sheets and companies that can grow their market share in the case of chevron, they have enough capital.

25 billion of free cash flow in the next five years to either buy back shares or buy competitors. in the case of jpmorgan wh, what the fed is doing by tapering is saying look, our economy's strong, but jpmorgan when the economy's strong when lending is up when asset management picks up and potentially when interest rates move so a combination of companies that are trading at two-thirds the market valuation with strong dividends that are growing take the other side of it. when the fed is saying we're going to taper when the economy's strong, they're saying we want to be in companies that can really grow and where cash flows again with coming in now not in the future. and the companies that i would sell at this point did very well when we had a lot of uncertainty, but the competition has actually come back to them so take teledoc for example. very good company, but trades at a multiple of sales. the acquisition they made last year is worth more than the

combined market value of the two companies and more so, tyler, their competition is there united healthcare is now competing directly with them so what is the mote around their business especially when investors are going looking for cash flows up front. >> you could say the same thing about your second sale, the much beleaguered peloton. they've got a wonderful, sort of first mover advantage here, but nobody's standing still. well, that's sort of a funny way to put it, isn't it, for peloton. but nobody's standing still. >> exactly if you look at it, valuation matters. what is peloton saying our cash flows will be much greater in the future. you get that discounted back in today's dollars, it's worth a lot less nobody is staying at the same place. the mote around their business is disappearing. two things are happening you've got more competitors in that space the apples of the world, fitbits, and the other part

people have to understand is that we are reopening and this was a great story when we were stuck at home and in a reopening world, this stock needs to really reflect earnings growth not just revenue growth in company that people are going to be focused on rejiggering their portfolio, hey, i want companies in today's dollars >> we've covered these four stocks, actually, let's broaden out a bit. is the economy ready for what you think the fed is going to do in other words, begin to withdraw cash from the system, with what the fed's goening to say. that is what we're thinking about and if the overall global economy in the markets actually

pullback, they don't have to go as fast. they're not committed to it. they're saying thatst the trajectory what you're seeing is that strong companies are doing well. today, jpmorgan, financial, energy stocks are up companies will do well in a rising rate or tapering environment. it's just that some of the speculative ferver might come off and that's not necessarily going to stop central banks because they've been giving away the money. the other thing people don't talk about is what is the clearing price on bonds? in the credit markets? we don't really have a functioning create market right now and i think this is going to lead to markets going up and down it's not a panacea for everybody. we had a great 18 months and now volatility's come back, but historically, that's what we've had to live with i think this is going to be some uneven waters for the next few months, but these are some great opportunities if you're a long-term investor to say hey, i want to look at my portfolio,

see what companies i want to own n for the next three to five years. key is diversification not, i have to own all these stocks in one sector >> sarratt, always so clear. i really appreciate it we have you back, we're going to talk about the non-functioning credit market. i'd like to explore that more with you thank you. >> absolutely. happy holidays >> you, too. game stop, amc, bed, bath and beyond down 30% or more over the past month and herb is cheering this. he is going to feel the eyre of these investors. >> it's not that i'm cheering or i'm happy about is that it appears that valuation is starting to matter again and even then, you could argue that on many of these stocks, they're still way overvalued relative to

what you might have said was overvalued in 1999, 2000 when things crashed, they're still higher than that but it's something you're starting to see and feel you go around and talk to folks, you don't feel as silly just mentioning the word valuation. when i was doing research, you saw companies that were crazy. one thing people didn't want to talk about in 2019 and 2020, they did not want to talk about valuation. now, i suspect it's becoming just a little more front and center in the conversation >> so the interesting thing is yes, game stop is down, but it's still way up and it's been a year >> it's still up and it can still be gaming. i can't sit here and tell you what's going to happen to these meme stocks. we know a lot of people have had a sense i'm sure of their vagal nerve, getting nauseous a bit,

and that's good. you need to feel the reality of this it's not just a game but i think if you look at some of these companies, i had written a thing the other day, docusign has come totally unglued, but when i wrote about it a few days ago, it was still trades at 14 times sales that was still considered back in the day when these kind of companies blew up, they sold for maybe a halftim times or one oro times sales. who knows what's going to happen i don't know but we know there's a sense here where people are kiecnd of wakig up i want to point out an interesting statistic. there's a company out there called kalish concepts it's a research firm there was a chart they put out on the percentage of companies in the u.s. that trade for over ten times sales. in 1999, that number was like 20%.

at the peak. right now in this cycle at the peak, it was almost 40%. 40% we're trading over ten times sales, which would be considered very expen sifsive for many of e companies. so it gives you an idea of where we were and how valuation just didn't matter, which brings you back to this whole thing of maybe now people are starting to pay attention. >> you anticipated my next question, herb, which was directly to that chart which i thought was so interesting because we remember what happened in '99, 2000, '01 the height of the dot com bubble and now we're seeing sales ps i love you a little under 40% of -- >> 40 time >> of total. >> 40%, yeah there was another interesting chart in this, and i'd written this up in a story the other day. on empire. and the interest, the other interesting chart that they had

was they were trading those trading over ten times with what they looked at the cheapest stocks they sort of track each other. then came back down. they also revert back. it's just a question of how long, when but i thought those charts were good and they gave you the perspective you needed here. >> what do these tell you as an observer about the possible future does it tell you that all stocks are going to come down or that those that are most highly valued by these metrics are likely to blow off steam and come down? real quick if you could

>> look, tyler, i know everybody wants someone to come here and say this thing's going to blow up and blow everybody will sit here and tell you it depends on what the fed does i personally think if things revert to a mean, whatever that is, it's going to be something out of left field you hadn't counted on >> usually is. >> even then, we're still going to be asking if question catch a falling knife, buy the dip. at some point it will be catch a falling knife. even back in the day, i heard people say catch a falling knife all the way up there are many cases that can be made if you have a situation with covid just sort of disappears, that things will -- so there are a lot of still uncertainties here what will happen, tyler, i think you need a wash out to make things healthy, but i think we

sit here and say boy, we have 401(k)s and iras and everything else >> the wrong time. >> i can't afford to have that happen, folks. just saying. thank you, my friend >> great being here. >> coming up, is a hawkish fed actually good for banks? we'll ask the ceo of valley bank about the move in rates. and why inflation could throw his business a bit of a curveball. plus, disney shares crater t ing this year. our trading nation team is taking their positions and a working lunch with the ceo of freelancing firm, upwork, and why she says the office will never be the same. as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship

will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

we want to bring your attention to bank stocks comerica, huntington, bank of america, jpmorgan higher as well now, these moves come as yields on u.s. treasury notes tick slightly higher and as of course we all await the fed's highly anticipated interest rate decision tomorrow afternoon and be sure to tune in to closing bell this afternoon in the next

hour we will hear from bank of america chairman and ceo brian moynihan, a must watch interview there. >> thank you very much, dom. the fed is meeting for the first time since jerome powell signalled a policy shift inflation risks are still in focus and our next guest is seeing that firsthand. the president and ceo of valley bank, a major player in new york, new jersey, and elsewhere. mr. robins, welcome. nice to have you back. >> thank you great to be here today >> let's talk about what you expect the federal reserve to do beginning tomorrow and how that will change the playbook for banks like yours >> i think the fed would continue to message there's going to be a wind down of some of the monetary policies they

put in place and lead to a rise in interest rates going into 2022 for bank stocks, a rising interest rate environment is a real positive. leads to an increase in the slope of the yield curve which for banks like valley would be good for overall earnings. one factor we might have to consider that we haven't is the amount of stimulus that's currently in the market today from a monetary and fiscal perspective and what that does to deposit rates i don't think banks are going to be pressured to raise deposit rates in previous environments, which once again, would be a benefit overall to traditional bank stocks. >> good for the banks, maybe not for the savers, but that's what we've come to get used to. it's basically the difference between what you pay for deposits and what you're able to lend money for let's talk about inflation and how it is affecting you because we led into this saying that you see inflation being more, less transitory and more permanent.

i can see that, but once wages go, i think a lot of the wage inflation has been a kind of catch up phenomenon. and a labor shortage phenomenon. and that once it's over, the rate will slow that's not to say they'll be taken away and you'll have deflation of wages i think the higher wages are here to stay, but the rate of growth is more transitory than not. what do you say? >> i would tend to agree with you 100% what we've seen from a wage increase percentage is here. it's difficult for an employer to get back to wages we've provided the pace is going to slow down as we see more workers come back we're still seeing millennials not at the same participation rate i believe there's a few other factors that will affect permanent inflation increase i believe from an environmental

perspective that we are finally beginning to understand the true cost from an economic and environmental perspective, some of the cost processes and services that we put in place and now these are finally beginning to push through to the overall consumer i think this is still going to push inflation up as we pricing moving forward >> what do you mean by that? >> i was with a customer the other day and just for them to refit some of their manufacturing plants to be more consumer, to be more environmental friendly, ten to 15% increase in what that manufacturing cost is. i think as a society, we've gotten away far too long without understanding the true environmental costs for some of the manufacturing we've done across the country and rightly so some of these costs are now going to be embedded back into the cost of production and as a result, there's going to be continued pressure on inflation as we migrate towards understanding the true economic cost of some of the environmental policies we put forth. >> we know a lot of times, it's

not just one factor. it's half a dozen or a dozen different ones and that could be one. we spoke with a bank investor, analyst yesterday, jeff hart, who said the time to buy the broader banks was when loan demand starts to rebound what are you seeing in loan demand trends these days >> the business customers i speak to are really optimistic about what 2022 is going to loo like we anticipate to continue to see strong demand for the fourth quarter. the general businesses that i speak to are really optimistic about what 2022 is going to transpire to be. >> all right you say buy the stock. buy, buy, buy. thank you very much for your time today appreciate it. still ahead, the ppi report. wasn't 10%, but still the highest on record. these are historic inflation levels christina is in el paso with a look at the fallout there.

>> we've got many small businesses across america that are still faced with inflationary pressure. and that's why i came to this terminal in el paso. after the break, i'll explain why businesses are still ea pcein to incrseris to 2022

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welcome back senate leaders have scheduled a final vote on raising the nation's debt limit by $2.5 trillion. that's expected at 4:00 p.m. eastern under a complicated arrangement with republicans, it will need a simple majority to pass that is expected to happen a top democrat says they'll vote. and also a vote on whether to pursue charges against mark meadows. today, the house rules committee voted along party lines to approve a referral to the justice department andrew cuomo has been ordered to surrender to new york over $5.1 million in proceeds from his 2020 pandemic memoir.

they say he'll fight the ruling from a state ethics board and a report says that amtrak will suspend its requirement for workers. they can instead be tested regularly. they will not need to restrict service in january as planned. kelly. back to you. >> aren't they under a federal mandate because they're federal workers? didn't biden order them to have this in place? >> it did seem that way, but perhaps they found a loophole. we'll see if other companies take suit as well. >> historic labor shortage i wonder 10% inflation, almost. wholesale prices are up almost that much in the past year it's pretty much unprecedented in the u.s so how are businesses dealing with it? christina is down in el paso, texas, with more

>> almost every good and service we use affect the services behind me. but the terminals here are faced with increasing inflationary pressures from fuel, wages, and employee benefits. >> throughout '21, we've been constantly increasing prices as fuel has gone up, equipment has gone up, with the shortage of steel and aluminum prices are through the roof. >>. >> and take diesel prices that have gone up almost 46% in this past year, but if you compare to pre-pandemic, they're up about 6% or private hourly wages? those have declined and a new survey says that corporations plan to hold roughly 3.9% of total payroll or wage increases next year. that's actually the biggest jump we've seen since the great financial crisis so with fuel increases and wages

increasing, a lot of corporations are in a predicament, a dilemma do they eat the cost and hurt their margins or pass them on to consumers? >> what they'd ideally do is absorb the cost then reduce the costs. by training the labor better investing in better machinery. pass it on to their consumers. >> although many corporations like the one here have had to pass on the cost to customers, you have many who believe inflation is going to taper off and consumer prices, which means you and i and these corporations are going to feel the pinch. back to you. >> thanks. ahead on "power lunch," inflation remains top of mind as the federal reserve begins its crucial two-day meeting, but a

new cnbc fed survey says while many believe higher prices might not last forever, worker shortages will more on that, next ♪♪ ♪why do you build me up (build me up)♪

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90 minutes left in the trading day. last one before the fed's big decision first, let's get latest on the selloff in stocks. bob? >> just looking at the s&p, certainly the nasdaq, you think there's something really wrong going on with the market, but there isn't really there's a problem with tech and it's about valuation let me show you the dow though to show you that things aren't that bad actually, there's a fairly broad move on the upside going on in some of the bank stocks like goldman. consumer names like walgreens. even energy stocks are on the upside why are we down? it's largely tech, but a particular kind. big cap, microsoft and the software group is notably on the weak side. we see some names like crm in the dow jones industrial average. apple topped at 182 yesterday, but it's really software issues. a respected analyst downgraded

shares of adobe. downgraded a bunch of software names saying they hit their price targets and at this point, they're looking at 2022 and woing if they can continue to grow that's what i'm talking about. there are valuation concerns going on there you see adobe down service now down intuit if you look at the mid cap name, software as a service, for example, cloudflare. zscaler, data dog, pager duty. they're down 20, 30, 40% from their recent highs if you look at the etf part of this, igv there, ever since powell turned and and said november 30th, he's concerned about inflation, that's the powell pivot we've seen a problem >> now to rick for the latest on

yi yields kind of shrugging off that ppi report. >> definitely. like they do many top inflation reports. and you don't have to look much farther than the effect it's having on equities what is the only real edge for equities when all the central banks try to take their thumbs off the scale at the same time it's going to be a rough ride maybe and that's one of the reasons, maybe the biggest reason, why treasury rates, especially long data treasury rates, seem so unresponsive. look at interim twos and tens. at 8:30 eastern, we had hot, hot, hot producer price index and the effects? we did see rates move up, but they moved right back down we saw volatility and mostly in the longer dated treasuries and the amplitude of the volatility was large, but didn't last long. look at the year-to-date of the t dollar index

it's up over 7%. why am i bringing it up? part of this is the same story european central banks dragging their feet look at the dollar versus canada if you look at the canada versus the chinese yuan, it's at the lowest level in 21 months. we want to pay particularly close attention as all these central banks seem to be moving towards or hoping they could move towards removing stimulus, we're going to hear a lot more tomorrow from ours and might start to see more effects on inflation numbers when that occurs back to you. >> we know they like to move together thank you very much. oil is moving lower for the second straight day, but the energy stocks are holding up a little better this time. pippa stevens has the commodity close. >> crude is down for the fthird

time in last four days wti is down 1% at $70.57 earlier, it broke below 70 bucks dipping to $69.51. brent crude down to $73.57 the dollar is higher which makes oil more expensive for other currency holders they said the surge in cases will temporarily slow, but not upend the demand recovery that's underway some energy stocks are tradeing in the green refiners marathon, phillips 66 up >> the ppi showing almost 10% wholesale inflation in the u.s. over the past year where are these high prices coming from? steve liesman went looking for answers in the latest edition of

the cnbc fed survey. what did you find? >> one bit of good news. it's seen peaking in february, but that's doubled the fed's target supply chain problems, the number one source. which is the reason most see the current levels at temporary. fiscal and monetary policy are given the rest of the blame for the inflation problem. why supply bottlenecks may work themselves out, less certainty for the outlook of the other part of inflation, labor shortage that's been driving up look at that change. 41% say it's permanent and we have to learn to live with it. that's up from 24% in the prior survey a big change in outlook for the labor crunch barry writes as core goods inflation eases in 2022, core services and energy inflation will accelerate.

now, what's behind that? a mismatch between available jobs and skills. seen as the top reason employers can't find workers followed by health concerns and government benefits, which have run out so far wages being too low. ranking towards the bottom maybe that's going to change will continue lingering inflation. those lie behind the projection if the fed is going to double its taper to $30 billion and begin hiking rates as soon as june whether that's enough depends on how both the temporary and potentially permanent parts of the inflation story play out and kelly, that producer price number didn't suggest it was all that temporary >> just for background, how much is the fed putting into the asset purchase program now how much have they been tapering and you say they may double it to 30 million a month? 30 billion a month, excuse me. >> yes that's right so here's the math they were at 120 they went down 15.

so they're at 105 for november and december what is supposed to happen is they're going to go down by 30 that's the expectation of the market so that will bring them down to what would that be, about 75 billion would be the next month and that ran out pretty quickly. they'll be done around march >> if you go at 30 billion a month, it takes less than three months to get you from 75 down to zero, that that will be interesting. very interesting day ahead we'll see you tomorrow i'm sure. >> sure. >> somewhere somehow. by some device i'm going to be outside the federal reserve tomorrow, folks, for our decision coverage. the statement at 2:00 p.m. press conference at 2:30 on "power lunch." we're told the weather is going to be lovely >> you might not even need, ifgs looking forward to some ear much muffs or leather gloves. >> wear a scuba suit underneath like tom brady

disney down nearly 20% morgan stanley coming out with a note defending the media giant saying the selling is overdone overreaction should you believe in the stock? our trading nation team will take it apart, next. ♪ ♪ ♪ (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 ♪

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welcome back disney is lower again for its fourth session in a row. the stock may be at the cross section of the reopening and stay home economy, but facing headwinds in both new covid-19 variants pressuring its parks unit and weaker subscriber numbers. shares are down by 18% in 2021 morgan stanley keeping an overweight rating, lowering its price target to $181 a share how do you trade disney? let's bring in tyler, mark mark, welcome back i know you've been a long time shareholder in netflix, but the analyst at morgan stanley pointing out that from a valuation perspective, disney clearly looks more attractive. i'm curious if you're ready to make the switch.

>> not just yet. if you go back to mid april 2019 when doisney plus was announced i shrugged it off. it went from 116 bucks to over 130 and man, oh, man, did i take a beating in the twitter sphere. if i look at all of disney's business segments now, there's just a ton of challenges you've got to omicron response not the virus. the response the mandatory masks, travel restrictions that's a big headwinds to parks and cruises and that keeps the lights on. on the other side of things, streaming subscriber estimates continue to come down. i believe in the company long-term. it's on our watch list here's where i would buy it. i'd buy it below 120 bucks why? because that's pretty much where it broke out when disney plus was announced so that would give

me the ability to be patient on the reopening side if i'm getting their services for free. under 120, it's a buy. >> about 30 bucks lower from where it is right now. todd, when you look at subscriber growth, it's becoming an increasingly competitive marketplace within streaming, right? >> it sure is. before we add to the portfolio, can we talk about the sector to start? communications has fallen out of favor. first, we've got to stabilize on the sector level, then go to the industry level break down netflix and disney. publishing and internet are showing strength, but the entertainment, broadcast, are falling out of favor so i like netflix over disney by far. like mark, i've knowned netflix and have been bullish on in since 2019 if you take a look at what disney's done, the stock has been very flat from 2015 to '19 when they first entered streaming. financials got shaky in '19. they spiked expenses

a lot of people said disney was going to beat netflix, but that narrative has been rolled back significantly. not a lot of companies are going to be able to spend what netflix is spending. maybe even apple it's going to be hard to compete with netflix i'm going to continue to stay with netflix >> the rivalry continues great to see you both. for more, head to our website. follow us on twitter tyler and kelly, back to you >> thank you very much coming up, another working lunch. join us at the table to talk freelancing with jon fortt he's got the upwork ceo, next. and now the latest from trading nation and a word from our sponsor.

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these are good times to be in the freelancing business. that's what upwork does.

they connect companies with workers who help them fill unfilled roles today, jon fortt brings up close with the company's ceo >> hayden brown took over in january 2020, right before the pandemic hit since then, the world has rediscovered remote work and employees have demanded which are exactly what up work's model is about hayden grew up with flexibility as a core value. they moved from connecticut to kathmandu and seemed natural to her. >> the summer vacations were always like camping in people's backyards through germany or something. we never had money to do expensive vacations and we would go to far off places and make it work because we would camp or do something on a shoe string

but that was always really fun and i think less about it being hard but so excited to be in this new place my dad was in the peace corps in the '60s and grown up hearing about nepal and excited to know this place on my radar as a kid and immerse myself in it. >> she is working on matching talent with work and making that process flexible artificial intelligence is part of that she says and tossing out both the old playbook for work and assumption that the remote model is what the future will look like. >> five-day work week. in office cubicle model is gone. we inherited that from henry ford and other paradigms that i think worked then and now the new paradigms need to emerge and takes a next couple of years

we'll get to the new normal but not right now. around relationships facetime won't go away and in-person experiences won't go away but take a different tenor. >> not the app on the iphone i i'm thinking about the work and wonder if it's a key ingredient of where we go it tries to create a track record of how workers and companies collaborated on projects like amazon reviews but for companies and people there's a chance of more flexibility i think and faster progress whether a contractor or a worker at a company. >> it almost feels like a perfect plug-in for linkedin why don't you ask them to do something for you? >> it's at the micro level

the stock is still above its pre-pandemic level while the financial performance is good a lot of those stay-at-home stocks have lost investor favor and time to get back to the fundamentals. >> for people that don't know how it works, how does it work in other words, do i sign up with them? >> yep. >> a company looking to place people i sign up and make a match? >> exactly then there's a review afterward where both the company reviews the talent and the talent reviews the company. reputation gets built that way they put a dollar value on the work that's done so that helps signal to the marketplace here's the level and quality. >> how do they put money a commission >> exactly a marketplace that way where they put the people together. >> would they have an obvious rival here >> there are a few think

thinking about traditional companies and platforms that do something similar and upwork with a scale unlike those and that micro detail in the data about projects is interesting. >> how cool does hayden sound? >> kathmandu. >> my dad talks in - >> most kids worry at moving across town at 12. nepal? let's go. >> thank you. this is one for the gram 2 billion in the gram. in instagram hits a major user milestone. we'll discuss that next.

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all right. welcome back instagram marking a milestone. 2 billion active monthly users it comes a week after the head of instagram appeared before congress to answer questions about controversial content on its app. let's bring in the reporter behind the article salvador rodriguez good to have you with us 2 billion users. they had a billion three years ago? >> that's right. took them eight years to reach the first billion and three years to double that amount so this is a milestone they hit in october. according to my sources it happened just before the name change facebook to meta and it is quite the feat and did not

make a big deal about it and probably because of the scrutiny they come under from lawmakers and parents from the difficult 2021 for instagram. >> did meta concede they're above 2 billion? >> no. even in the reporting they declined to comment. they didn't want to publicize this number really but that is the figure according to employees at the company now who spoke with us and yeah it is quite sizable and it really dwarfs many competitors out there. >> doesn't dwarf tiktoks in terms of new users and clicks and the not necessarily the target demographic but younger users. tiktok is beating them >> tiktok is a headache for instagram so instagram is growing. it's sizable but coming to the user base that count it is most, the ones to

age with you that's where instagram is struggling and facebook is going after the demographic especially with the product reelz which is a clone of tiktok. >> the company changed the name to meta. like to tyler's point it is caught in the middle here. will instagram have a future in the metaverse? >> it is interesting when i reach out to throws or talk to people in the know doesn't seem like instagram is proactive in the metaverse and maybe a small effort but focus seems to be on the product now and that alone will be critical for the future of the company facebook is growing much slower. metaverse is quite a ways out so in this medium term instagram is essentially going to be what props up the rest of that meta 'em pish. >> yeah. it is like nat gas for the energy space

the bridge to the new future thank you very much. >> exactly. >> big day tomorrow. we'll join you from washington you will be here yes will have it all on the fed. >> looking forward that. thank you for watching "power lunch." >> "closing bell" starts in a few seconds. welcome to "closing bell." i'm courtney reagan in for sara eisen. inflation headlines sending the averages lower today. >> i'm dominic chu wilfred frost will join us in a moment let's look at what's driving the action today ppi jumping 9.6% in september. fastest pace in record fanning the inflation concerns as the fed meeting gets under way today. the world health organization said the omicron variant is spreading at a rate not seen