can't call him in a anymore. >> retire the name along with transitory. qualcomm, price target, six months 27% return. >> dr. j >> any show that has edward g. robinson, big thumbs up, josh. otis worldwide otis bought during the show. >> quick, josh, then got to bounce. >> berkshire hathaway break outconfirmed. >> good stuff, everybody see you tomorrow "the exchange" is now. i'm jon forward in for kelly evans. what's ahead, the fed rally fading dow holding on to gains by its fingernails. nasdaq the big loser and only major index to lower for december what's changed since yesterday how do you play this market? plus -- a boost in at&t shares higher on upgrade and a price target seeing the stock climb more than 20%. the analyst behind that call joins us to make his case. google versus disney

underrated restaurant stock serving love on the street, but we begin with today's markets and dom chu. >> focus on nasdaq as we have often, jon it is pretty much epicenter what's happening with regard to the mixed market we're searing dow jones industrial flat on the session, although towards the lows of the day right now. you can see 357949 last trade relatively flat, up 21 points. s&p down 27 handles, 4681 last trade there. big trade here 2% losses for nasdaq composite down and much of that is due to weakness in mega cap technology names. specifically apple, microsoft. also watch what's happening with software-related names and cloud computing stocks while we have seen mixed reactions on a year to date basis, it's the legs lower over the course of last three weeks here that have a lot of traders paying close attention if technology revalued at a

lower level given prospect for higher interest rates, growth rates ahead, and by the way, if you want to see real evidence of divergence within technology trades, check out intraday action now in the best performing and the worst performing stock within the s&p 500. accenture up 9% now after its earnings report. i.t. tech commenting firm driven by demand for cyber related consulting services and cloud computing related services up big. meanwhile a big software player, adobe, down 9% in trading today, because it reports earnings that were generally better, more mixed. both companies, though, accenture, upped forecast. adobe put out a forecast below some analysts expectations divergence in technology, adobe, a company you're very familiar with been a steep move low everover e last couple of days.

>> covering that company as a beat reporter in the year 2000 come a long way since then dom mentioned, yesterdayed enthusiasm following the fed meeting couldn't carry into a second day as tech falling apart a bit. what's the turn in sentiment a portfolio manager at capital as advisers welcome. dow leadi ing lower, apple what's going on hoare? going on here? >> what we saw out of the fed yesterday, three key takeaways one increasingly data-dependent fed that's quickly going to adapt and change based on data coming out secondly, the playbook is quite different this time and they've been very clear that the economy is very strong going into this rate hike. that we're expecting to start lifting off in 2022.

then thirdly, max employment is not necessary to see liftoff i think you're seeing a real divergence between longer equities and tech specifically and significant out performance by banks and other diversified financials positively levered to higher rates. >> you like banks, and diversified financials in this environment, but do you like the ones that have underperformed recently or the ones that have been best performing does it matter within that cohort where you go? >> i think what matters is growth that's what we're really focused on we're seeing a lot of green reflecting growth from the h8 data, credit card data incredibly positive. loans showing up near 7% year over year for the industry wide and starting to see pick-up in commercial lending as well which we actually think will really

accelerate in 2022 some of the supply chain shortages work their way out growth is the name of the day. we like the credit card stocks specifically they are a a little beaten down on potential credit cycle fears, but i think growth far outweighs that then from a pure bank perspective, we really like the regional banks they're asset sensitive, positively levered to higher fed fund rates also within that circuit really strong growth trajectories from names like silicon valley. >> now, i know that a few months ago we heard so much, the world is federal reserver c forever c. software names talked up yes, tech weakened a bit some names in tech have weakened a lot. if the world has changed, are there some bargains to be found perhaps in names beaten down the most over the past few weeks and months >> i think there are some

bargains i think perhaps an overshoot on some of the growth driven not only tech names but payment processing, visa, mastercard for example, really trading at recessionary-type levels when the outlook going forward is to get back to pretty impressive consumer spending numbers. a pick-up in travel, pick-up in small business i think that's all positive for some of these stocks that are really taking the brunt of some of the down side in recent weeks. >> what does that do for retail investors, at least a segment gotten so used to dealing with ets specifically the cloud etf is one, a popular cloud etf captures that bargain sentiment or back to a stock picker's market, as we like to

say? >> i think a stock picker's market seeing increasing volatility in the market overall as we sort of transition back towards a higher rate environment i think there will be some potential disruptions going forward from potentially new variants coming out, and potentially slowed down some parts of the market. so i do think stock picking comes back in vogue here >> all right makes sense. portfolio manager, sheryl, thank you. >> thank you. now to a bold call in the tel-comm space shares of at&t popping after morgan stanley upgraded the stock to overweight from neutral. at&t shares had a tough year down nearly 20% and near lowest level since 2009 analyst and managing director at morgan stanley made the call and joins me now simon, this is a tough one, because the dividend payout in a wayused to be, i

guess. why is the value here now? >> sure, jon, we've seen a significant underperformance by the telecom stocks during 2022 on fears of wireless wars. actually, underline performance has been pretty good at&t led the wireless industry in subscriber growth the last couple quarters and we still see good momentum in the core communications business going through the next couple of years. but, really, the genesis of our call is combining the attractive entry point on valuation with the upcoming completion of the warnermedia-discovery transaction. so over the next few months we're going to get a lot more clarity around what sort of structure they're going to have for shareholders to get that discovery deal completed and by middle of the year should be completed. you're right going to change the dividend policy payout between $8 billion and $9 billion on a pro forma paces, yield of 7% one of the top three or five in the s&p 500 with a delivered

balance sheet free cash flow after dividend an interesting story now the lack of clarity around the deal is holding investors back. >> okay. where are we in the capital spending cycle around 5g for at&t and perhaps for telecoms in general? seems subsidizing smartphones quite a bit, particularly trying to incentivize individuals and businesses into all you can eat-type plans in 5g is that something investors should be concerned about? >> sure. a great point. we saw a big 5g spectrum end up earlier this year. carriers talked about big spending really from a '21 through a '23 period at&t has an upgraded fiber program and particularly we liked the communications infrastructure like the tower

structure. we think they'll benefit there nonetheless a path to strong free flow cash generation during this investment period allowing them to continue return capital to shareholders. >> a lot of talk about metaverse, what various people think that is, what it is, people need to be connected to it probably while moving around which could be good for the likes of an at&t, but to what degree do you think they're prepared to take advantage of that and when would that be something you factor into your outlook >> sure. heard a lot about it this comes into the category, building new 5g networks and fiber networks and killer apps with them. seeing a lot of interest in fixed wl wireless coming through and virtual reality and the met vert show a lot of promise and see more wearables, glasses and so forth over the next several quarters not just selling smartphones but additional devices that are going to generate additional

revenues i do think it's an important question on monetizing that, because if you look at the lte world, teleco carriers did fine, but in many cases it was some of the other tech companies that did even better out of 4g. >> and how much subsidize the equipment to get beam into the metaverse if that's their plan thank you. >> thank you. and coming up, the fed sees as many as three rate hikes in 2022 a big impact talking rates, inflation and impact on the consumer coming up. plus, rivian reporting its first quarterly results as a public company we'll tell you what to expect and key numbers to watch "exchange" is back after this. >> announcer: this is "the with insurance agency help you

with homeowners insurance and protect yourself from things like fire, theft, or in this case, water damage. now if i had to guess i'd say somewhere upstairs there's a broken pipe. geico. save even more when you bundle home and car insurance at geico.com. feel stuck with student loan debt? ♪ move your student loan debt to sofi. earn a $1,000 bonus when you refi— and feel what it's like to get your money right.

i'll give you three weeks earn a $1,000 bonus when you refi— to get clay calloway in this show. no one's seen him in over fifteen years. there's no rockstar in here anymore. ♪ but i still... ♪ just sing. ♪ haven't found... ♪ your song's will carry you. ♪ what i'm looking for ♪

small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. welcome back the s&p regional banks index up nearly 40% this year and with jay powell and the fed more hawkish at yesterday's meeting banks to see more of a boost next year. joining me, phil green, prospect chairman and ceo phil, how do rising rates really change the game beyond the expectations we've already seen show up in the market?

>> jon, thanks for having me today. we really positioned well for higher rates and, man, waiting for this for some time we've seen inflation on main street for a good while now, and we've been moving our balance sheet more and more into liquid instruments. in fact, if you look today, 30% of our balance sheet is in a checking account of federal reserve earning 15 basis points. we're really watching the short end and we're hopeful we'll see movement in the near term. >> what happens when, perhaps, consumer and business appetite for risk also starts to slack off? make even more than the interest rate increases themselves have an impact. i mean, such a low level even three increases probably won't do that much but if they shift the mind-set and sentiment could have impact. thought about that >> shifting so less activity

i guess that's possible. it's probably, partially, behind what the fed wants to do, but honestly, we're seeing so much demand today that it would be hard to imagine that some modest increased as mentioned would shut things off. we've seen really good growth in our loan portfolio consistently since the june inflection that we had, and that really happened through the delta variant and seeing it so far what's hooping through omicron. we're hopeful to continue to see good activity, and in our loan book and we expect that. >> i also mean, for the consumer part of your business, the types of services that consumers demand maybe there's a shift away from trading-type products. like the robinhoods of the world, which we've seen fall in the markets, and maybe towards savings products, because maybe you'll actually be able to earn a little bit more of a fraction on your savings? >> well, i think that's a good observation, and they will be

able to, and so i thinkyou'll see more demand as prices go up. really had to bear some of the brunt of this policy we've seen. >> what does that do to the whole movement in fintech? not companied called fintech companies like yours, to better serve them where will you have to put that investment in an environment where you expect rates to possibly rise for the foe seeablsee a foreseeable future >> implementing a hybrid knowledge, taking technology and marrying it with high-touch and physical presence. expanding locations, double locations in houston in the middle of tripling our locations beginning that process in beginning of january for our dallas market. so we are combining the high-touch part of it with

high-teches, investing across the entire spectrum, and we really believe it's going to help us, and we're actually seeing great account growth today. in fact, as of june of this year, we exceeded our all-time annual growth in new customer acquisition and seen that to follow on in september wh. >> what do you expect to happen with lower income families and customers hit so hard by the latest inflation, and also tend to be either unbanked or under banked is there the possibility of technologies stepping into the gap with rates rising to help that customer? >> i think so. i think that we need to be cognizant of the impact this is having on individuals, and inflation is a tax on them something we'd be careful of i think you're seeing not just neo banks but the banking industry respond

take us, for example we introduced the early payday product a few months ago get your paycheck two days early. that was a high value proposition for fintechs and also back in earlier this year implemented what we call overdraft grace, where we pay your overdraft $100 below at no charge as long as you have a small direct deposit with us those kind of things i think are helping people through this period of time. >> yeah. those moves potentially big. that's real money. phil green, thank you. >> thank you. still ahead, airline execs questioning the need for masks in their testimony before congress yesterday but not everyone's onboard with that we will hear from the head of the association of flight attendants next. and take a look at semistocks hitting hard today. semiconductor sector etf smh falling more than 3% msp and broadcom hexcng" ckft this.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back it's been a year when unruly flyers refusing to wear a mask and comments by two ceos might have thrown jet fuel on that fire extensively talking bailout money, southwest and american questioning a need for a mask mandate in the air. >> i think the case is very strong that masks don't add much, if anything, in the air cabin environment. it's very safe, very high quality compared to any other indoor setting. >> i concur. the aircraft is the safest place

you can be and true of all aircraft same epifilters and air flow. >> tsa extended mask man date earlier this month and administrator "has said frequently the combination of vaccinations and face masks work and are highly effective in terms of the slowing the spread of the virus in the transportation system and they make travel safer for everyone." joining me now, someone who has to enforce these mandates. president of the association of flight attendants, sarah nelson. sarah, american tried to walk back what its ceo said, but i can imagine this only makes a different situation more diff diff difficult. was this putting their foot in their mouth touting what takes flas the cabin what was it? >> i was sitting in the witness table, when that happened extremely unfortunate and i was shocked actually, and this is not the way that the industry has responded with putting

announcements in place, clear commune caucuses about enforcement of the mask policies frankly, i worked with these people to put these mask policies in place well before the federal government did, in order to keep people safe and also encourage confidence in air travel now, i want to correct the record, though, because i was in that hearing room and then asked about it, doug parker has corrected the record on this they didn't try to walk it back. he absolute didn't hear what gary kelly said about the masks. responding to the hepa filtration if you listen to his answer, that's what he was talking about. he made it clear he didn't mean to make that connotation gary kelly afterwards said absolutely with me on masks and i should not take that any other way. i'm here to report that because it's important every understand transportation runs into trouble

when it's not consistent in communication. much more difficult for us for enforcers in the cabin and often taking that violence sometimes. >> and flown several times in the past few months. it's suddenly they're substitute teachers in a bad middle school class. sedge p several passengers not wearing masks or not wearing correctly and having to make a calculation. do i risk my own safety continuing to remind people about this mandate, or what? what's to be done here >> so there's a lot of danger in this that you are alluding to, because on an airplane you can't just walk away from the problem. you can't call for additional help you've got to deal with it right there, and when conflicts burst out, there's a lot of humanity crammed into a short, very small space and things can get very heated and very dangerous quickly. so, yes. we have to deal with de-escalation all the time, but

when a constant fighting about this what it does is puts people in a position who are safety professionals and being hesitant about doing those safety responsibilities, and giving people safety instructions that's not just on masks it's all the things that keep people safe on an airplane that's a concern it's also a concern, though, with the outbursts that these are huge disruptions and be distractions and we are handing something to people who wish to do greater harm another tool to use as a distraction that may make us miss a cue of a coordinated attack we have to get this under control. >> yes how is this going to affect labor relations within the industry going forward because this is an issue unlike any i can recall seeing where you've got video of flight attendants as risk the job sort of politicized. i don't know if there's specific things your members are asking for. >> yes. >> to help them do their jobs

going forward, but i imagine could be an issue, yes going forward with labor >> yes well, look first and foremost what airlines had to do was negotiate with us, incentives over the holidays there are more flight attendants on the job per airline flight hours than pre-pandemic. but people are not picking up the voluntary overtimes they so w regularly picked up prior to the pandemic airlines have to pay more. that's one thing we also have to deal with the issue, too we have to have clear communications, clear consequences it's good the doj is finally making this a priority and starting to prosecute, but until we get through that and people are landing in jail, we're not going to see that as a real deterrent and have to do other things also stop alcohol in the airports this is pushing alcohol a major contributor to these events, and giving people the wrong idea that they can actually carry their own alcohol on to the plane or that they should be

drinking right up to the last minute before they fly. >> i hear that and also hear implied that the ceos might have caused a ding to their bout um line, making flight attendants jobs more difficult and not wanting to pick up extra shifts. it's not looking merry and bright for in retailers. names lagging in the market are next. uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.

welcome back to "the exchange." stocks mixed now though the s&p at one point trading above its record close of 4712. dow the only index higher for the week nasdaq down more than 2% since monday what's going on under the surface? here's a look at the divergence between growth and value today s&p value stocks on pace for the best month since march higher today by about 1% while growth is lagging about 1.5% we can't talk about growth without mentioning apple some days value, ambidextrous. shares on pace for worst day since black friday meaning investors have to wait a bit

longer to hit $3 trillion in market cap share price to watch, $18286 wayfair and etsy biggest laggers falling 5% and 10% today and 30% down for the month and now an msnbc news update. happening at this hour, president biden signed the bill raising the u.s. debt limit into law averting what would have been an unprecedented default by the federal government signing the bill less than two days after congress approved it. federal regulators ask buy now pay later for details on business practices reuters reports some raised concerns the lending plans put consumers at risk. new car sales expected to rise just 1% next year saying that consumer demand grows as carmakers struggle to increase production. and criticism continues for urban meyer after fired as head

coach of the jacksonville jaguars. multiple sports writers slamming his coaching style and 2-11 record this season last straw appears to be a report meyer kicked a player during practice in august. you're up-to-date. jon, back to you. actually, tonight on the news, a look more at this fallout over that. jon, back to you. >> rahal, thank you. coming up, google versus disney reddit ipo plans and bank of america looks under the hood and a love of toast is all ahead in "rap id fire," next.

- [announcer] at southern new hampshire university, we never stop celebrating our students. from day one to graduation to your dream job, that's why we're keeping your tuition low for the 10th year in a row. - [student] the affordability and the quality of education, it can be enough to change your life. - [announcer] as a nonprofit university, we believe in making college more affordable for everyone. - southern new hampshire university, it was just amazing experience. - [announcer] find your degree at snhu.edu. catch you up on a few stories on your radar. time for "rapped fire. breaking down the headlines, dom chu and julia boorstin bank of america initiating rkd

r robinhood with underperform and $22 price target half since its ipo in july robinhood's current valuation underappreciates big rick including payment for order flow regulation and end of meme stock and crypto volatility. how did everybody not see this coming i mean, really >> yeah. well, they've already got about one-third share of that target 20 to 34-year-old marketplace, and they're dominating in crypto, in training activities i just don't see a clear pathway to generating earnings leaving us on sidelines. >> i get it. dom, what has really changed that people didn't see coming? is it just, the interest rates >> it's not necessarily just t interest rates a notion to maryanne's point you can't grow much more than you've already got

especially under traded population what i mean by that is those people that robinhood really targeted, especially, over the last couple of years during the pandemic and certainly with regard to anecdotal evidence out there with regard to people who had gotten stimulus checks and timed it with certain account openings at places like robinhood. if you've already penetrated a lot of the market you think you could have gotten, then it could be a growth issue going forward. with robinhood, it's not to say their growth trajectory is negative going forward just a lot slower, and i'm not sure why to your point, jon, a lot of folks at ipo, wasn't that long ago, didn't figure that would be part of the population in terms of overall risk to the company. >> all right we'll continue to fold in all sorts of that commentary moving on next up google facing off against disney in its latest tv fight. revolved with roku last week google will drop a number of disney channels and increase

roku's subscription if an agreement not reacheds by tomorrow asking all partners to treat youtube like any other partner offering same rates services are a similar size pay across disney channels long as we carry them disney responding confidently saying disney have a long track record that's positive, all types across the country and committed to working with google to reach a fair agreement. julia, treat like everybody else i thought a new air wa of a la carte digital magic? sounds like a cable carrier dispute we've known about for decades. >> it does indeed, because that's ultimately what youtube tv is. a streaming bundle that's an alternative to the pay tv bundle i think something so fasb tcinin

about this microcosm of the next phase of the streaming wars in that youtube is saying we will cut prices byes $15 if we can't keep these 18 essential channels in there. don't get espn, abc, we'll save you $15 a month. but youtube tells their subscribers they can spend $14 a month and get the full disney bundle disney plus, espn plus and hulu for $14 a month replacing those channels showing it's complicated and cost of espn and other channels is high. kr cro crockett, covers these companies says eventually they'll settle down the time, tv ratings declib and could see bundles not inclues espn. >> dom >> as a non-youtube tv subscriber, fascinating to me total bundle with disney's channels included $65.

knock byes $15 down to $50-ish if they don't have it. youtube or future tv subscriber, roughly 23%, 24% total value of youtube tv just disney fun question would i pay that kind of stuff just for access to those 18 specific channels? my takeaway on this. >> doesn't sound like magic to me i thought the digital distribution would make this all simple youtube -- sounds like a cable provider they're supposed to be boring. does this show weakness for youtube or does it show potential strength for the traditional distributors or, which i should mention, comcast, parent of cnbc harks a dog in this fight what is it >> i think it's the, really, the strength of youtube, when they've got 80% of the key watchers using youtube every month, and i don't think they're including the 60-plus who also are using it quite a bit

i think there's just tremendous strength in youtube, and google has threatened similar action with nbc universal, with roku. they've had the upper hand i think they'll have the upper hand in these negotiations, too. >> all right next up, morgan stanley upgrading toast to outperform from neutral, but putting its price target by $10 to $53 a share. the firm saying the restaurant software company is poised for rapid scaling and has strong growth potential toast went public back in september. shares has fallen 45% since the debut. dom,levered to reopening small business growth? what >> certainly to the restaurant business what toast does, right? provide infrastructure technically speaking everything from the point of sale on down through the supply chain to when the kitchen turns out your meal and sever can actually serve it to you talking about an ecommerce-type,

supply chain-type solution for a restaurant that starts to scale the more restaurants and the get more pes bp very much reopening play, but one thing you have to keep in mind for a company like toast is whether or not you are too levered to just that reopening trade. for a lot of these it's about toast signing up more restaurants if that doesn't happen, then maybe toast growth profile isn't as much with it, i guess, as investors want it to be that's a real key here for certain folks out there who want to take an investment in toast got to figure is there going to be an opening channel in the postpandemic era justifying some of the valuations? >> bottom line, how much are investors willing to pay for toast? >> i'm not sure. we're not one of them, and this goes back to robinhood as well we don't usually, we don't ever, touch ipos until they've had at least three quarters of a publicly traded company under their belt since they have a great tendency to disappoint.

>> hmm. >> i point out in this particular situation, larger players have their own end-to-end software and relying on smaller claynes to adopt this might be a tough sell this coming year. even with a stock at 45%, first quarterly report, disappointed, we still refrain from buying. >> what if we call it avocado toast, though? people seem to pay more for that confidently filing for an ipo becoming a hot spot for retail investors. most recent funding round back in august reddit raised $700 million, valuation more than $10 billion. julia, a lot's changed since august, though including the fate of some of the stocks and currencies that made reddit so popular >> look, reddit at center of this meme trade. really defined beginning of this

year i think there's so much we still don't know about this company. jon you know how excited i am to read the s1 and a sense of these financials, but there's also this question of how much growth potential is there it is a kind of complicated platform to navigate they've made progress, but not as simple and accessible to people to jump into conversations and say, on a facebook, sort of the gold standard in terms of making it easy to use. i think there's a question of how many more people can they get onboard and are advertisers concerned about the type of content sometimes on reddit? do they need guarantees everything is safe that's something reddit has been working on, but seems like always more work to do there, jon. >> to be clear, dear viewers, julia boorstin is literally excited to read the s1 not being sarcastic. are you equally as excited >> i am. a financial nerd and luove reading these things

sticking out, over $100 million in the second quarter is amazing. and accounts of $50 million, 100,000 different specific forums, each with their own moderator. how can they generate profits in the next two years, as some speculate. i can't see it as yet, but will keep diving into those s1s. >> dom, thoughts $10 billion is a cue little social network, when you look at the category >> not so scute or little at all. i say for many massive, multibillion dollar valuation ipos that came to market, look how many now are trading below where their ipo valuations were in a market sitting at record highs. talk about reddit, nothing with regard to the fundamental valuations should be and wonder what investors will feel about the valuations in the gbeginnin part, after the ipo, versus three to six months later. >> market cap snap is $70 billion. twitter where is that?

i don't know got a lot of stocks on my screen thank you, dom chu, julia boorstin, mary ann montain. um np next, a profit in 2022 what to expect and one arngroewnal automakers n chgi pject that is next. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq yeah... oh. don't worry i got it! ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate.

♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. we love our new home. lots of windows, great light- but the birds. they're back. yes, i hear them. uh-oh. why are these birds so angry?! at least geico makes bundling our home and car insurance easy. we save a lot. i'm going...i'm going. aaaahh! hurry, hurry! i know, i know! for bundling made easy, go to geico.com.

welcome back following three big stories in the transports today delta ceo ed bastian giving cnbc his 2022 outlook rivian reporting first quarterly results going public after the bell today and ford making a commercial ev push just did "rapid fire." now "rapid phil. phil lebeau, your interview with ed bastian earlier today what was the biggest surprise for you? that unit, how busy they are on a unit basis the profit >> yeah. for the first quarter, we're going to see them turn a profit. that is the new guidance from delta. previously expecting a loss. the stock pulled back today in part with all of the airlines stocks on the concern about omicron as it spreads, as it becomes more prevalent not only here in the u.s. but around the

world. that's brought all airline stocks back. ed bastian, when we talked with him, he said, look, the last days of this holiday season are going to be better revenue-wise than 2019 at the same time in terms of corporate travel. says, well, depends on size of the business. >> just talking to corporate tri depends on the business? -- >> small business is moving at a faster pace, it is closer to 75% restored and the large corporates are down closer to the 50% level a lot of it is tied to office re reopening. we see a direct correlation as offices are reopened and people are returning to office. that's the trigger to get back out on the road. >> really quick n terms of costs, which delta says it will see higher costs in 2022, we are seeing this with a couple of airlines out there remember, it's going the take some time here, and those costs,

because they have been higher than expected, that's also weighing on the stocks not just today but we have seen that over the last couple of months, john. >> didn't mean to talk over ed bastion there. we were talking to sara nelson of the flight attendant's union. are the ceos watching that cost line and the idea that mask issues, conflict with passengers, making flight attendants feeling less willing to pick up extra shifts, is that a significant, perhaps, factor of costs heading into 2022 or no >> i am not sure it is a factor in terms of cost it is part of the business that is another issue that has to be managed. but let's be clear, despite the comments from both doug parker as well as gary kelly yesterday, both of them, their staff are now walking back the comments. they understand. the white house calls the shots here and the airlines, generally speaking, realize there is no -- there is nothing to be gained by coming out and saying, i'm not

sure masks are a smart idea. so i think you are not going to see any more comment father that regard any time soon. >> all right rivian is set to release its first quarterly report as a public company after the bell today. >> yep >> phil, what are the risks here in this report because i mean the valuation is huge. >> right. >> it is not being valued based on what it's putting out today what should investors expect here >> it is not in the number these are the final q3 numbers, the preliminary numbers came during the ipo they are not going to be dramatically different it is the korch call, what does rj say about three areas that are going to get the most attention, r 1t pickup truck products as well as orders and delivers as well as r 1s, the electric suv then the amazon delivery van schedule, when do they start delivering those to amazon should be very soon. and finally, future product

plans. they are building three plants of theirs in illinois. again, it is the conference call, not the numbers that should be the focus this afternoon. we will be listening to that call i think it starts 4:30, 5:00, we will be on the call and have it during "closing bell" and fast money. ford is launching a charging network for its customers in a push to transition to evs, what is that going the look like. >> this is all about the commercial business. the commercial business doesn't get that much attention from retail investors what's being sold at an auto dealership, that's what they focus on the commercial business is a huge business. ford has been a leader in that area ford pro is the new program. they are going to be working with fleet customers in terms of the fleets going electric, everything from managing which vehicles need to be charged, how they are charging up those vehicles if ford can establish with their fleet customers, look, this is a

smart way for you to convert over to electric, we can help you, we can manage you, we can help you manage your fleet -- big, big profits there, that's what ford pro is all about. >> rapid phil, a double pun, it is rapid and it is transport phil lebeau. mcdonald's now has reached a settlement with disgraced former ceo steve easter brook the details of one of the. >> laest non-criminal corporate clawback is back. and a cdc subcommittee panel saying moments ago it supports preferential recommendation for mrna vaccines like pfizer and moderna's over j&j's covid vaccine. we'll be right back. get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity.

that's decision tech. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪

automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. welcome back mcdonald's selling its lawsuit against former ceo stevester brook. kate rogers joins me now with the details and how much it is going to cost him.

>> john, well, mcdonald's, as you mentioned settling with former president and ceo steve easter brook, easter brook returning equity awards and cash currently valued at more than $105 million which the company says he would have forfeited had he been truthful at the time he was fired in 2019. as a result, he would have been fired for cause instead of without cause. he was accused of having consensual affairs with four subordinate nats he pushed courts to throw the cases out. he said touring my tenure as ceo i failed at times to uphold mcdonald's' values and fulfill certain my responsibilities as the leader of the company. apologize to my former coworkers, the board and the company's franchisees and suppliers for doing so recently, goldman sachs tried to claw back $170 million of bonuses tied to the 1, mdb

scandal. but a former top exec instead donated the money to charity an example of how difficult these claw backing can be. this is a land mark for mcdonald's and easter brook. >> there is another settlement. >> in the last two hours announcing a settle moment of a lawsuit with herb washington, who was the company's largest black franchisee at one point. he agreed to leave the system. mcdonald's has purchased hess locations for $33.5 million. it said it did not find the company had violate i had in laws. >> kate rogers, is it unusual to get a couple of settlements like that at once seems like it might be. >> certainly these are two that we mentioned there was another last week with darrell and james bird out of tennessee, also two black franchisees accusing the company of racial discrimination they settled with mcdonald's

last week, agreed to leave the system mcdonald's repurchased their franchises as well unusual to get three beg settlements like this. >> as we head to "power lunch," i will note the dow is hanging on pulled lower by apple, microsoft, and salesforce, but still managing to be in the green. that will do it for "the exchange." "power lunch" starts right now john, thank you so much. welcome, everybody, to "power lunch," along with courtney reagan i'm tyler mathisen. courtney in of course for kelly. here's what's ahead this hour. the post fed trade today's gains fizzling just a bit. it is a hard one to track but the s&p remains just about 1% from its intraday all-time high. the dow, less than 2% from that. but will the biggest gains be found going forward in small caps a veteran market analyst