kinds of makes it more valuable because you get more opportunities. >> as long as the games aren't outright canceled because that throws everything in flux. and then the sports books have to go back and figure out how do our rules apply to the wets that were made? when do we refund? when do we keep it it becomes a mess. >> contessa brewering thank you so much. that which is a it for "the exchange," everybody "power lunch" picks thing up right now. kelly, thank you so much we will see you in just a minute welcome, everybody, to "power lunch. here's what's ahead on a very busy market monday it is a market selloff covid cases spike amid talk of monetary tightening, tough environment for investors. and this hour we will try to make sense of it all, tackling stocks, oil, wig tech, retail, among other things also with us, a bond market power player, pimco's jerome

schneider on whether the fed is backed into a corner as yields move lower. and one of the most popular investments of 2021? you guessed it, etfs we follow the money to bring you the biggest trends of 2022 and look ahead to 2022, kelly. >> watching key levels for the markets, down 1.5% the dow was down 700 at one point. for the dow, the 200 day moving average is 34620 if it holds or doesn't it is going to be a tell for the market the 50s were breached for the s&p and nasdaq 4607 was the level for the s&p, we are down to 4553. energy stocks, lagging as the price of oil gose down again and a bit of a surprise in some of the reopening stocks. not what you would think today, green for american and carnival, royal caribbean as well, until just a moment ago when it flipped lower. economic data in the coming days

can help investors determine whether omicron will dent the recovery awell as rotation out of the tech stocks our analysts is watching, are value stocks good for your portfolio. stephanie link of here i know what you think about growth stocks. you said we needed this reset. has it run its course? >> i don't know. i don't think so because you don't even have a lot of people in the office this week and next week, right. it is -- maybe the vix is up, maybe volume is up today because we are down so much. but i think we are going to get slower and slower as the week progresses, into next week at the ends of the day we don't have company data now. no company is doing conference calls, conferences or earnings now we are focused on the macro. we know the macro is omicron and we know the macro is the

fed. on the variant, we know it's more contagious. but we also know it has mild symptoms that's what dr. scott gottlieb has said i am going off what he says. we are going to have to learn to live with it hopefully we don't have closures that's my base case, we don't have closures. the fed did get going on fasterin at thatter, tightening, growth is good enough we can handle the fed we should embrace it something interesting. over the weekend the tsa came out with 6.4 million travelers over this past weekend there is pent up demand. for 2022 i want to have that as a theme in my portfolio. >> that's why expedia is one of the names you would be looking at here? >> exactly right, yes? >> it is up 21%, a decent year n line with the market but i like their geographic mix, their vacation rental exposure, leisure exposure

cnbc did an interview with the ceo of delta who said leisure is back and they are waiting for the business traveler to come back they are starting slowly these guys have more leisure exposure in their revenue mix. they have done a great job in cost cutting gross margins beat last quarter by 200 basis points and grew by 276 basis points sequentially. at the time they said summer bookings for 2022 were higher than 2021. that was back in october they had good things to say. >> steph, do you think that for this cycle the highest growth rates have been hit in the economy and the highest inflation rate has been hit? if so, what's the implication for my investment? >> oh, there is no question that we have seen peak growth and we have seen peak inflation i think peak inflation, because we are certainly seeing some parts of inflation improve in terms of commodities still have challenges on supply chain but at least they are not as bad as they had been.

but i don't think that's going the get solved any time soon, guys because i mean you listen to the intel ceo last week he said not until 2023 so we have to live with the supply chain issues. of course you know i am wore worried on the rental side, renta costs which are more sticky i think you are going to continue the see elevated inflation, not runaway inflation. we are going to see slower growth in terms of gdp we will do probably 4% next year but that's still above trend as i mentioned, if we can get through some of these virus -- these issues, you are going to be pent up demand from the consumer and we are already starting to see it at the airports and travel and restaurants and so on so i think you want to pick very civilly. you definitely want to have a diversified firework definitely some reopens. definitely secular growth. not the high valuation in terms of growth, i am talking about technology i actually own more value tech at this point because of the multiples. >> elsewhere, steph, tjx, i feel

like that's a perennial favorite coke comes up on your list >> coke comes up on my list. it has done nothing this year, kelly, it is up a 5% on the year and i own it it is frustrating. but it yields 2.9% and they have free cash flow of $10 billion. what they have been doing, i really like, is streamlining their portfolio. there are also doing m anda. they boat body armor, the 85% they didn't own, in its largest acquisition ever they are trying to build a core portfolio that people want, obviously. i think they are doing a good job. also doing a good job on cutting costs. 50% of their revenues is on prem restaurants. a back doorway of playing the reopening. >> i see i was at american dream, ty, have you been down that way yet? >> i haven't. >> i thought there was going to be a coca-cola food court but they have just sponsored the whole thing. >> the whole place >> it felt like more or less the

whole place. >> it is an enormous place. >> it is it is great for to thelers when there is no one there and you need a place indoors because it is dark at 5:00 p.m. >> yeah. >> stephanie thank you. retail stocks getting swept up in the selloff. or swept down in the soleoff s&p 500 retail sector down lower today, down 17% this month despite the pullback this month our next guest says the holiday shopping season has been strong and expects it to accelerate in the days before christmas. let's hear from daryl storch, former toys are u.s. ceo jerry, welcome why are the stocks if, as you say, the sales are not, are bubbling >> there is kind of an urban myth out there that sales were pulled forward, they started fast and then they slowed down i don't see any evidence that that is true, frankly. when i take a look at sales this year compared to 2019, prepandemic period, they were up

22% in october guess what they are up in november 22%. you have to go to the second decimal employs to see any difference in that incredible growth over a two-year period. i understand it is tinning all the way through december this week, it is absolutely on fire people have money and they are spending it. people are confused when they see the retail sales reports they compare month over month. guess what it's up phenomenally over the years. >> why aren't stocks following suit now i think we can segregate within the category of retail that there are some areas like department stores that just seem to be secularly in decline, but here are some of the ones that are doing pretty well overall, like walmart, and tjx and so forth. but why are the stocks not participating if the sales are so good? >> as you know, the market doesn't always move in lock step

performance with how the companies are actually performing for the long term i would bet bigtime on walmart, target, costco, tjx, the home ply supply companies, home depot and lowes continue to thrive if it is true that we are headed with more problems with the virus they will do even better just like they did during the last lock down these companies are great. amazon is fantastic. it has been dead money all year. it is not going to stay that way. 20 year growth record, they dominate the fastest growing segment in all of retail, e-commerce they can deliver when no one else can i think there is a lot noise out there saying salesr slowing down they are not slowing down. >> i am amazed, jerry, at the numbers that spiderman just put up over the weekend. $250 million is way higher than i thought would be feasible right now. what does that tell you? >> i call that the spiderman effect if people are willing to go to

the movies, and sit for two hours in an enclosed theaters, they are not frightened about going back to normal life. that's when we are seeing in mall traffic, strip centers. companies like i named, target walmart, the stores are jammed costco, i went there the other day you couldn't find a single parking space. where were all of those people in the store, shopping, inside today is the last day for most retailers you can order and get it delivered before christmas. costco said the last sleigh leaves at midnight so people will have to go to the stores the next few days. >> department stores, can they survive as a group >> great question. i haven't seen any one of them do the kind of massive reinvention of business model they are going to need to do in order the thrive

what wasn't working before the pandemic isn't going to work now. even in november that dead cat bounce seemed to be operating on fumes as their two-year stack was the worst of any segment, even during boom times for a retailer, even restaurants did better than department stores in a two-year comparison. it is clear what they are doing isn't working. and once they get into next year and beyond, the fact that they have no clothes is going to be obvious. this he need to reinvest their business around the internet around something your kids will want to buy, not what your grandmother wants to buy and then they will have a chance but i haven't seen a single one of them, not one them take those kinds of stefs. >> jerry storch, appreciate it. >> tough talk with storch for this sector. coming up, car prices hit records this year and changed the way we shop for cars

car gurus has been collecting the data on that and tell us what to expect next year. plus pimco's jerome schneider will talk fed, rates, and growth. and apple is the only faang stock higher over the past month. is it the best bet for 2022? netflix is the only one in the ayituseetoy. st wh 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. ♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan

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welcome back to "power lunch," i'm kristina

partsinevelos. chinese-listed firms are continuing their fall today. k web, the china internet etf is down 5%, year to date, down 51%. billy billy down 12% pi pinduoduo down also. china cut its benchmark rate for the first time since the pandemic chinese companies face uncertainty around stock delistings even e-commerce company alibaba which is seen as a proxy for investor's views on china. morgan stanley is bullish on the company saying it has opportunity with a price together of $180 far from the $115 we are seeing right now.

>> today's selloff hitting used car dealers, which were having a rough holiday season. auto nation, car gurus, carvana all down double digits but according to a report, 2022 could be much per or much of the same for auto sales. record low inventory of new scars has meant sky high prices and growing demand for used cars with no end in sight let's welcome in kevin roberts of car gurus why is it good news that 2022 is going to be more of the same >> i mean i think we have seen an environment where prices have been going up, which has been helping profitability for oems and automotive retailers out there. i think we have been seeing high leflts of demand for private mobility coming out of covid new vehicle sales will be significantly higher than what they currently are if we had full levels of inventory out

there and we are seeing basically near full recovery for used vehicles out there. there are some positives in the market right now. >> in a way what you are saying is the headache for car shoppers has been a benefit for the car dealers. but can a situation like that really persist >> so i think the million dollar question is, what's going to happen when we see new vehicle inventory start to pick up i think demand is still there right now. consumers are paying record high prices for both new and used vehicles right now especially on the new side, incentives have dropped significantly. as we see supply levels come more in line with norms, it will be interesting to see what the market gose with. >> it's kind of a paradigm shift because most of us have grown up believing that the whole objective of going into a dealer is to get the best deal you possibly be. how much off of smsr -- mrs --

whatever how much can i get off and now that's totally been flipped. is there a possibility this paradigm will alienate customers who go in and say i am just not going to pay this premium price. >> i think we have understood that msrp does stand for suggested. traditionally it has gone in a positive direction for consumers. now with tighter supply it is going in a different direction i think everything with seen with covid and a pullback from shared mobility, mass transit, ride hailing transit and things like that, that super charged the demand for private mobility and we are seeing that high demand coming through for both new and used vehicles right now is this stocks, kevin, that you think should benefit is this something that you think the dealer should continue to benefit from

or does it tell you because the times changed so quickly people are getting more comfortable buying direct, whether that's buying on line used cars or look at how tesla has had so much success. >> 2022 will be somewhat of a continuation of some of the things we saw in 2021. we are not expecting vehicle production to fully pick up in 2022 so we should still see some, you know, kind of, you know, reduction in new vehicle inventory during that time period but you know event ally we are going to get back to more of i guess you would say a traditional market where we have seen used vehicle prices appreciating this year, longer term we would expect it to return to a more market norm. >> what versage of vehicles today, and what percentage of vehicles five years from today do you think will be sold purely on line, sight unseen. i don't want to go to the dealer i want the nissan rogue, silver,

with a black interior, equipped this way, bring it to me >> that's a very difficult statement to come up with. what i would say is what we have seen with surveying is that consumers really kind of enjoyed the digital experience and those paths along the way. so a lot may be happy going completely digital but a lot of others value the in-person experience, especially test drives. >> with augmented reality -- >> we know what to get you for christmas. >> with the metaverse. car gurus. -- go go us -- car gurus. >> car gurus. >> the broader markets are down off their lows. the dow had been down 700, now

only down 489. the kperks le etf is down 3% same gose for alternative energy invesco solar etf down by nearly 6% first lasor down 8%. "power lunch" will be back

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i'm frank holland. here's your cnbc news update at this now the jury is out deliberating in the trial of kim potter, the former suburban minneapolis police officer charged with manslaughter for shooting and killing dawn day wright during a traffic stop she testified she thought she was using her taser. the prosecution told jurors they should hold her criminally responsibility for what it calls a blunder of epic proportions. the biden administration is moving to make vehicles more fooel fuel efficient calling for a 40 mpg by 2026. and a scientist at the world health organization says it is unwise to think that omicron is a mild variant that won't cause severe disease she says the early data from

south africa may be misleading because there are high levels of immunity there she warns there could be enough cases to overurd abouten health care systems all around the world. let's get to check on the the markets. the major indexes are off the lows, dow was down 700 at the worst point of the session bitcoin is in the red, back above $46,000, down nearly 20% in a month underperforming ether, up more than 400%. check out the communication services sector. those names lagging significantly. viacom, discovery, are more than 70% off of their 52-week highs right now. the sector 10% off its year high also watching theater stocks amv up almost 2% spider man, no way home generating $125 million in

domestic sales. >> my son loved that son. investors are fleeing to safety of treasuries we will give you the full run down when "power lunch" returns after this for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

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90 minutes left in this trading day. let's get caught up on stocks, bonds, commodities we are off the lows of the session, as i mentioned, but bob pisani is keeping an eye on those key levels we mentioned at the beginning, bop, the 200 day, the 50 day, there is a lot to talk about. >> yes, although, remember, we were below the 200 day on an intraday basis a couple of weeks ago on the dow jones industrial average. the important point today is thatthe selling is spreading out a little although people are fleeing into defensive sectors and those sectors are still holding up look at some of the dow stocks that are holding up here defensive drups, proctor & gamble and walmart, merck, johnson & johnson, classic defense groups what is alarming is that the selling is spreading into iscal stocks most of the telling last couple of weeks was in tech but we are seeing defensive sectors, banks, gomez, jp morgan, and largely industrials, like boeing, honeywell, american

express, also a major financial. those stocks were holding up relatively well with the exception of one or two days starting to see selling in that. meantime, big cap tech is down, but down in line with the market it is not moving dramatically worse than the overall market. where are we at? most of the damage since powell started turning more hawkish at the end of november -- i think a lot of this is concerns about withdrawal of liquidity -- we are seeing most of the damages in technology stocks, semiconductors, software, cathie wood's arc innovations fun down. fundamentals are holding up well consumer staples, health care stocks for example utilities are up 5.5%. they are the ones holding up what we have got to watch out for now, guys is what's going on with all the cyclical names out there, particularly the banks and the industrial names those could be a real next weak point that we are seeing

guys back to you. >> we will watch those, bob. thank you. let's also check on oil, sliding again today into the close pippa stevens with the latest. >> that's right. demand concerns are sending oil prices tumbling although crude is ending the day with lows well off the session. 68.66, wti clawing back some of the early losses which had the contract down to 6.5%. brent crude losing 2.5% after breaking below $70 earlier today. pgm oil associates saying this the nightmare before christmas although they noted the demand stow far has been modest calling it a speed bump rather than a roadblock. they said the downside risks do not threaten the medium turn but called the environment saying it could shatter at a moment's notice volume speaks to this as trader

weigh all the potential outcomes from omicron >> quite a slide lately. speaking of which, over to the bond market. the ten-year is holding at the 1.47 level, rick santelli has more, and a special guest. >> yes,'s all true, kelly. look at twos, threes, fives, sevens, they are all higher in price and of course their yields are lower, if you look at tens, 20s and 30s, their yields are a bit higher a two here, up about a basis point. what we really want to look at on that chart is we are starting to turn up a little bit. we are actually starting to see some curves steepening if you look at the november start for tens, you can clearly see it has been a while since we have had an aggressive trade under 1.40 remember, one 1.37 and 1.39 are key bottoms in 2012 and 2016, precovid

finally, tens minus twos look how it accelerated what was a flattening around the ends of thanksgiving, end of november. we will talk with our especially guest about that exact dynamic and quickly the dollar index may be down a bit today but up over 7% for the year. it is a testament of how investors are viewing our central bank being aggressive at least from the standpoint of the dollar index all right, did that flattening curve auger that the fed needed to do something? nobody is better to answer that question than jerome schneider, i would like to welcome him in, managing director at pimco thank you for joining us let's get right into it. many believe the flattening that accelerated towards the end of the november was the big loud scream from the markets to the federal reserve, you need to pay more attention to inflation. do you agree >> while the fed is very poised to be aware of what gose on in the markets and the market

pricing you even still today have a large discrepancy of what the fed is expecting to project in terms of the fed sequencing of potential rate hikes as opposed to what the market is pricing in in fact, the market is more aggressive in that context than the fed is, especially looking out two or three years what we are beginning to see is two things one the communication that the fed has laid out successfully and eloquently led us to have a policy change, a shift in policy to move toward a road of normalcy, get back to the neutral rate over the course of the next few years and the kbhuks be that effective in terms of placating the market you can look at the day in and day out -- >> jerome. >> sure. >> jerome let me stop you minute if the taper gose as scheduled, the quickened pace, the earliest can fed could raise rates would be end of march. that's three 1/2 months, the earliest, a lot can happen in

three and a half months. communications aside, if the market continues, i am thinking rate increases will be a lot less what we are looking at is rate increases to deal with inflation versus damage to stocks and the economy. speak to that. >> the fed is going to pay attention to the have tilt anybody should be expecting that with the removal of qe and monetary policy there should be additional risk premium in the market that means changing liquidity conditions, poorer, potential volatility and that's why we have been advising clients to really be paying attention to the liquidity transaction mechanisms higher cost to transact. but the fed is going to be vigilant there has been optionality in the past they shifted their policy. jerome powell was successful in doing that let's look at the facts. when we look at the credit markets, they have been

remarkably stable. while equity markets have had hourly and --? remarkably stable -- jerome, remarkably stable. here we have inflation that we haven't seen literally in certain amounts since the '80s, and certain yairts areas since the '70s while that's going on, we are at 1.4 on ten-year. >> right. >> the curve flattened but long rates haven't responded. dent you think that is odd that's what the water cooler conversations are. why are the long term treasury rates moving down instead of up? >> foreign investors continue to buy treasuries because of a proxy which makes them more attractive as well as march at the earliest is when rates could rise and when you have growth in coming in at 3.9% which is what we project you will see the rates move higher. more importantly, the longer

rates that you are so concerned about this moment, rick, are going to move higher the question is how quickly? will there be volatility we think this is exact purpose, while being focused on defensive mechanisms in 2022, invest oofrs should really be focused on these subtle changes it is going to create bouts of volatility but at the same time the fed has been vigilant and will continue to communicate to help alleviate some of those fears along the way. >> excellent, jerome, it is always a pleasure the talk to you. we want to bring you back in another three or four weeks just to see if we are start be to grab on some of the long-term rates. of course i think at this point that would give the equity market some confidence to move higher thank you for joining us today. >> look forward to it. >> tyler, back to you. >> rick, jerome, thank you very much rick, and jerome schneider the major etfs in the red today. generally, money has been pouring into those funds this year more than $10 trillion now invested in etfs

we will discuss that flood of cash, and where it is going, next

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2021 has been a huge year for etfs practically every number you can put on all of it is at an yowl

time high, including total assets invested, which now exceed $10 trillion. injog us now to look at what worked in 2021, and where the money could be headed in 2022 is the ceo of track inside. jean renee, welcome, good to have you with us. >> thanks for having me. >> i see a lot of the money, i guess not surprisingly, has gone into esg etfs. is that because they are rehl marketed because there is demand? a little of both >> it is probably both of them you are right to say that the fact that 2021 is an incredible year it was an amazing year, actually it's a year that everyone will remember we passed the $10 trillion mark and we have had over $1 trillion of investments you are raid to say the three things that led this from esg -- esg was the main one it is well marketed by the

industry and also a response to the investors' needs. >> excuse me for just one moment, jean renee, if i might when you say an active etf, what does that mean in and how is an active etf different from just a run of the mill actively managed mutual fund? >> that is really -- that is really a good question that is going to explain what is going to happen in the future. etfs are considered and grow as indexes, as funds or vehicles to replicate an index that's fueled the growth the last 20 years. now we are at an turning point where it is not just a fund tracker. it is a way to put any strategy on the market and distribute that through exchanges so the industry relies that the growth that was captured through indexation and passive exposure can now be replicated through

active strategies. we have seen the flows in active etfs more than doubling from last year. and active etfs now reach over $350 billion in -- globally. this is a massive trend coming in addition to the massive inflow into esg. >> talk, jen renee about the areas you want to watch next year the number one inflow was china internet which was worst for performance. usually the flows follow performance n this case probably following on from a strong 2020. obviously, i doubt there has been a lot of flows lately. >> that's a very interesting question, too. the third twend we have seen in the industry that will prevail next year is the interest in foreign investing. and thumbs-up to energy related etfs, rare metals, battery,

infrastructure, these etfs are leading the march into performance and also flows you see a synchronization of investors who are putting the money where the performance are. on the other side we also see interesting operating examples that for example, comes into the work from home trend where you have a number of retailers trying to capture trends in e-commerce in work from home and cloud computing. it is interesting to see these have the most significant outflows excite the conception that work from home will be a massive driver of growth in the next years into who are the buyer of these funds in are they retailer investors principally how are they using the funds, as long term buy and hold investment or as trading

investments? >> there is a deference between the u.s. and europe. u.s. has been dominated by retail investors who wanted to escape the high fees of active management and went into passive. so this is done invested in europe, it is mainly an constitutional market that fueled the growth. now what we have wean is completely reversed. in the u.s. we are seeing more institutions coming into etfs for long-term, short-term, and midterm investing both this the active and the passive space in europe, it is going to retail investing. it is interesting to see the two continents operating differently. this is why we think it will sustain for the next five to ten years. >> what i thought i heard you just say is that many of the

investors in the u.s. were going into etfs did so because they wanted passive investments, wanted to avoid the fees of active investments yet one of the major trends was active etfs, where there is more trading. and i would assume, then, more expense. did i misunderstand what an active etf is, how it works? >> no, you perfectly got it right. the growth we have seen over the last year was mainly driven in the u.s. in the retail by the quest for cheap exposure but that's done. that is done now and we see now a lot of interest from retail investors to go either strategically or tactically into themes, into strategies and i can give you an example that didn't work so fell i won't name tickers her, but i was long shops -- sorry, i was short shops and long e-commerce. that is the kind of theme that

is really for retail investors that want to have a shortened bet on let's say the next six to 12 months. these are the kinds of themes coming bigtime into the etf space. >> right we really see the arrival of added value, of strategies these streams are coming back into what was supposed to be a very low margin, low fee strategy there is a big shift here which will shift growth. >> jen rent a a, i feel for you. you are there all alone in your office with a for loren christmas tree there crying out for people to gather. >> the christmas tree. >> i want you to give that tree a nice hug when we finish here. >> i thank you very much thanks for your kind words it was a pleasure to be with you. >> likewise, jean renee with track. >> we will take that tree in my house. it is better than the no tree. if you think that's sad.

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welcome back to "power lunch. a divergence in the faang stocks today. tumbling while netflix is holding on in positive territory. similar picture over the past month. all but apple in the red so as reround out 2021, will the high growth stocks continue to move in different directions the trade nation team's oppenheimer and michael, i know you've been a shale holder in a number of the stocks do you join others in selling or do you stick by the names? >> this is a classic rotation of a knee jerk reaction from uncertainty in the markets and high growth markets, the momentum stocks outperform

quality always outper formdz in vol volatile markets inform the middle of this tech revolution happening from ten years ago to the next 30 years, you're going to always see technology outperform. so i mean i wouldn't be caught up in the panic. this is hopefully on the short term basis we'll get back to what really matters. that's earnings. that's earnings growth and that's companies that are outperforming because they offer the best product with the best management team. >> that's been the case of many people have made on the bull side when you look at a name like apple, its down today. but still trading close to its all time high.

>> yeah. i think that's one of the more important ones to watch. i think this setback in apple is really weighed on the nasdaq overall. it caused this flight to safety. it's not been about any broader rotation than that a pure move towards safety areas of the market. i'm watching trading levels. that stability in apple will help stabilize the market. but the reason yes like it for the long term andy think these higher growth companies continue to receive a scarcity premium in this low growth recovery here is that relative to the nasdaq, relative to the peers, apple is resuming 2020 breakout above eight-year relative resistance i think that bodes well for additional outperformance looking into the new year.

follow us on our web it is >> thank you very much after the break, ev stocks losing power the names getting pulled down by the selloff as well as the demise of the build back better plan we'll explain it all next.

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automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. incentives include the stocks are moving off the lows and down 8%. we have more >> let's be clear. with or without the unsentives, the expectation in the industry is we're going to see strong growth at least over the next three or four years when it comes to ev sales here in the united states. in fact, lmc automotive expects ev sales to be $2 million a year by 2025. by the way, they're expecting to be 4.5% of the u.s. auto market overall next year. so when you look at tesla, gm and ford, we'll focus on those three first, keep in mind

they're not changing their production plans over the next couple of years. they believe that there is enough demand, whether it's the f-150 lightning, model 3, model y, they think there is enough demand there that things are not going change when you look at the ev startups, they're just beginning their production plans and their order books, reservations, are greater than those production plans at this point. so it's unlikely to change for them bottom line is this. certainly a 12,500 ev incentive or 7500 that can be applied at the time of purchase, that will undeuce the market a little bit. i don't think we'll see the automakers dramatically change their plans because this may not go through as of right now, it's not going through. build back better is certainly hooking like it's not going to happen >> i mean i know you follow automotive side of it, not the political side it seems to me this was a portion of the build back better program. among many other portions. >> yep >> there's -- there wouldn't be any reason why if congress

decided that this needed to be an imperative they couldn't pass this as a kind of stand alone initiative, right? >> sure. absolutely absolutely they could or they could put it in with another bill maybe a reduced spending bill or a slimmed down build back better that certainly could be there. the question is whether or not these unsentives, $12,500, tyler, for a union built ev, that is a rich incentive that can be applied at the dealership at the time of purchase whether or not they would be as rich in a future proposal. >> that's a big incentive that can be sold to constituents as jobs building, as union supporting as you point out. and as also clean and green. there is a lot of possibilities there, phil. thank you. >> you bet >> i want to do a quick check before we go on movies i think i mentioned$121 millio

for "spiderman." that was for friday. much sunday was amazing. the best ever for the month of december the spiderman franchise is now for sony pictures $600 million globally so far. and we're saying shares of amc are even adding about 2% today they're up 27% in the past week. >> all right folks, thank you for watching "closing bell. nice to have you back. >> "closing bell" starts right now. >> thanks for doing that too >> thanks for doing that, especially from us welcome, everyone, to "closing bell" h omicron cases are surging and stocks are falling we're off the lows at this point. starting the week off with another ugly day in the market >> yeah, sarah i'm mike santoli let's look what the is driving the action growth concerns weighing on investors. covid-19 cases spike and the fed seems to beintent on tightenin still. staup staples are holding up the