i look at the cheap tech stocks i own it comes to the front of the line i think it will go up significantly from here. executing phenomenally well. >> josh, i was thinking all show i miss you a little bit. what is your final trade? >> ah, melissa final trade is amazon, hoping for a better year next year than this year. >> all right thanks for watching. "the exchange" begins right now. ♪ thanks, melissa. i'm jon fortt in for kelly evans. here is what is ahead on "the exchange". stocks, boy, session highs, going for the last two-and-a-half hours, bouncing back after a few straight ugly days does that mean santa has the all clear to bring his rally to wall street we are digging deeper into key sectors to see where they might be headed in 2022. semiconductors, airlines and luxury goods, we have them covered. a unique way to offset food prices, ugly food. we will talk to the company that

specializes in saving unloved vegetables we begin with the markets with kristina partsinevelos that's right we had a three-day drop since september. markets are higher with value beating out growth right now let's talk about the s&p 500 you are seeing it up 68 points dow up over 500 points there's some hope that maybe the build back better bill may not be dead just yet, and that bodes well for clean energy technology think some infrastructure cash so solar stocks are climbing higher as well as the invesco solar etf ten. you can see that one is climbing up above 4%. then you have some other big movers in the solar space. you have sunrun up 8%. sunpower up over 2%. and endphase above 3%. some of the biggest sector movers right now, energy, retail, airlines, casual diners and hotels, which makes sense ahead of the holiday travel season we have oil up well above 3% was even close to 4% the yield on the ten-year is back above 1.4, testing that 1.5

level right now. and as far as movers go, check out nike shares are up over 6% on an earnings beat. you can see that over 6% on that earnings beat that came out, beating the street's expectations the retailer did see demand increase in its biggest market here in north america. nike, the best performer in the dow today. jon, back to you >> kristina, thank you stocks meanwhile bouncing back from yesterday's sell-off but higher for just the first time in four days. should investors buy the rally here or are we looking at a blue christmas for stocks my next guests differ in opinions de lawn owe sapporo and jeff crumpleman, chief investment strategist de la delano, how much does the build back better matter for markets going forward? >> i think it matters a bit.

the markets were pricing in fresh cash, especially for infrastructure and you saw the rerate with new omicron data showing investors are seeing there may not be as big of a slowdown when it comes to the gdp growth and that's a couple of big things playing as themes in the market. so i think for the investors right now, they're trying to gauge what is happening in 2022. that's why you are seeing these swings in the market i think your highest conviction names right now you probably want to look at putting cash in. if you look at what happened in the tech sector over the past month, we sold off quite a bit, with consumer discretionary sold off quite a bit. investors can look to put cash to work in some of the highest conviction names right now, jon. >> jeff, you say you wouldn't be surprised to see a sizable correction in 2022 how much of that has to do with the concentration dependency, say, in the s&p 500 on just a handful of big tech names that have pretty healthy valuations at this point? >> well, it is based more on, i

think, than just the market being led in a big way by, you know, the largest of the large cap. i think there are three reasons we look for correction one, it is just due. it has been over a year since we had the 6% plus correction in the market and had 80% gains over the last three years in the s&p. it is dangerous to say it is different this time. it would be very unusual if you didn't have a correction in the middle of midterm election cycle, you tend to have greater downdrafts, and a little bit of a more sober market in the first ten months of the year then finally we have accelerated risk we have really unknowns on the inflation front. we think it will be benign and moderate, but there are a lot of unknowns on the front. you have a transitional year in policy, and all of those things add up to a likely intra year correction don't get me wrong, we are still positive and do think we will have further gains in the s&p, probably single digits by end of

next year, but some bumps along the way. >> what are the catalysts you think? i wonder if there's something that happens in 2022 that changes the market's mindset or sentiment from shrugging off bad news to shrugging off good news. i mean right now so much of what seems to be driving the market is this idea, oh, well, we can handle that, we can handle that, whether it is, you know, legislation not getting passed, new omicron variants, but are there benchmarks, things you are looking for throughout the year that could shift that mindset? >> there's a couple of things. i think one of the areas we mentioned earlier is inflation data obviously the inflation data, a lot has been priced in but seeing that steady over the next few months will be interesting to watch because i think the biggest area for companies that have to fight the cost pressures will see a lot of headwinds coming up in 2022. those will be one of the areas i still think the omicron variant, really looking at the data because the data lags, we want to see more obviously we are seeing spreading happening at a higher

pace than past variants but seeing lower cases when it comes to hospitalizations and deaths, which is a great thing those are a couple of the headwinds the market is seeing right now. we understand what the fed is doing, possibly raising rates which will play a part in the growth in tech names but i think it is priced in. those are the areas and headwinds investors have to look at and make sure their portfolio is well diversified to combat those things, jon. >> jeff, how will you be adjusting to inflation in '22, depending on how, you know, the fed's actions have an impact on that >> well, right now we think it is very important to have a balanced portfolio between growth and value and be exposed to both because we've seen wild swings, roller coaster type swings amongst those two different types of stocks, those two camps. we also think it is important if you have gotten drift, and because of the big gains you are 60/40 balanced portfolio, if you will, has drafted up to the 67%,

68% level, we would cut back the long-term strategic targets of that 60% level so it does two things one, it allows you to take advantage of and you're encouraged to take advantage of any kind of pull back because of maybe headline on the inflation or rate rise run it also i think guards against a panic or urge to sell should we get some type of pull back we think balance is very important, and hovering close to the long term for future allocation >> that should help investors strategize jeff, delano, thank you. >> thank you a news alert in the bond market 20-year notes up for auction over to rick santelli. >> yes, it was 2020's good vision into the psyche of investors because they ran for these 20 years a plus, one of the most solid auctions i have graded in years. let's go through it, shall we?

as i said, 20 billion, 20 years. the yield at the auction, 1.942. the one issue market, it was trading around 1.96. lower yield, higher price, that's a good thing. you could look at the intraday markets, they all dropped in yield, rose in price on the results of this auction. the bid that covered 2.59, the second highest since they brought back the 20-year which was in may of 2020 if you look at the indirect, 64.8, second biggest everything else is a record. 20.8 on direct is an all-time record and if we look at dealers, taking 14.3%, that is also a record 14.3% is the smallest, in this case the smallest is a good thing because there's not many leftovers when the investors really hit that buffet of 20 years. you can definitely see that these are areas that are now technically significant for dealers and for investors stepping up to the plate jon fortt, back to you

>> all right a plus rick santelli, thank you moving on now. the omicron surge is sending people scrambling to get tested, leading to long lines, harder-to-find tests and longer turn around times. now the biden administration is stepping in with a plan to address some of these challenges meg tirrell joins us with the latest meg. >> hey, jon. so we are expecting to hear from the president in just about an hour and a half. meanwhile, we do know some of the tenets of the plan in terms of testing include setting up more federal testing sites that will begin in the new york city area, which we can tell for folks around here really, really need this. they're also going to be purchasing 500 million rapid tests to make available for free to americans to order on a website starting in january. and they say they're going to use the defense production act to accelerate production of these tests. but a lot of critics say these things are not going to help the demand in testing and the lack of supply right now. we just heard from letitia

james, the attorney general for new york, who sent a warning to a new york provider of testing, called lab q diagnostics, essentially saying they're advertising a two-day turn around for results when it is stepping to four days or more. she called it absurd they're waiting for so long. rapid tests provide another option but those are really hard to find in stores right now. in fact, cnbc.com reporting today walgreen's is limiting rapid test purchases to four per customer we talked with testing experts about what is happening with supply in that space and we have seen it increase over the previous few months. in november it was around 140 million tests available in that month. that's expected to get up to 300 million by march, but, jon, heading into the holidays they're calling it kind of a perfect storm of this testing demand and really not being able to be met, jon >> meg, thanks yes, difficult, if not

impossible, to predict when all of these tests will be in demand when variants pop up like this now, another obstacle to expanding testing abscess is simply paperwork, scheduling appointments, processing insurance and personal information and then delivering results. my next guest, the company provides the software allowing pharmacies and mobile testing vans to speed up all of those extra steps around testing joining me now is julie s.k. eagle, founder and ceo of dragonfly phd. julie, thanks for being with me. what are you seeing out there now with this latest demand in testing around omicron and what should we expect in the future >> well, i can't tell you what to expect in the future, but i have seen testing volume skyrocket. so just in the last week we have four times what we had a few weeks ago, and i think some of the good news is that our software administers vaccines as well as tests and we saw a big uptick in the number of vaccines

administered in november and december i think one of the challenges for all of us is people who want to travel have different requirements depending upon the airline and the requirements day by day for example, over the weekend we had a woman from france who was trying to fly home and she got to the airport and discovered she needed a test that was within 24 hours, and she had been told 72 hours so she had to go back, she found one of our testing vans and retested and left. but it is a challenge across all fronts logistics, materials and just getting people through this process. >> i just wonder if at this point we have better visibility into what might be needed in the future, because the first time, right, pre-delta we had tests being destroyed, rapid test inventories being destroyed because there was a sense, oh,

we don't need those anymore. i don't think that's happening now, but with omicron we have seen a spike in demand that is outstripping the existing inventories of rapid test. does there need to be some level of ongoing government buying and even stockpiling in some cases of tests so that society, so that business can have some continuity expecting there will be another variant in the future >> absolutely. i think you heard very early on in this process, the rockefeller foundation and many others talked about the importance of testing. i have felt that we need to as a government, as a society, make as much testing available as quickly as possible. i think there was reticence at the beginning. i don't know where the hesitance derived from, but from a practical standpoint that's really the best defense we have. so frequent testing, daily testing. i think you see some great examples in industries like production studios where very early on we had 300, 400 production studios doing daily

testing on site. we had a customer in l.a. who went on site to a production studio, outlets and filming locations, and she would go there with a rapid test machine and run testing for an hour in the morning before filming started. >> right >> and that has carried on >> so if you are a business, how do you plan ahead? you know, having resources, connections, contractors set up to come in and do testing when needed, software that you need to have in place to do that, what should businesses do? >> businesses should be set up to create safe spaces, i think, for their workforce. it is not that hard to do. we have clients who do -- you know, we work both with the labs and with the testing providers, the medical professionals, and labs have produced outlets like mobile vans that have testing equipment inside that can

produce and process 1,000 tests an hour inside the van in 20 minutes, they've got a result on a pcr test so they've used those technologies in places like conventions, for example, outside of atlanta where they did testing on a frequent basis to get, you know, 8,000, 10,000 people tested before they entered a facility i think that there's a lot that can be done. they just have to be prepared to go for it and say, you know what i'm going to stand up, take a leadership role and protect my workforce, this is how to do it. we certainly have resources and people who have experience doing that, and we see pockets, as i mentioned, of industries where they've sort of taken a leadership role in making this happen >> hopefully we will start to see more of those case studies thank you, julie s.k. eagle. >> sure. now coming up, a massive bet on housing

the howard hughes corporation planned to build a community three times the size of manhattan. the ceo joins us live to talk about the project, pricing and supply issues, and what he sees in store for the housing market in 2022. plus, this luxury stock having a great year, up 75% thanks in large part to one particular group of spenders we will tell you who they are, why that trend is likely to continue and the names poised to benefit the most as we med to break, take a look at the dow heat map with nike, boeing and disney the top performers rhtow hexcng iback right after this to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab.

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♪ welcome back the supply of homes for sale just dropped to another record low in november according to red fin, but developers and homebuilders are now stepping up fast diana olick joins us with the news of big growth in one major metro market and a special guest. diana. >> jon, phoenix is one of the fastest growing markets in the nation with home prices there soaring due to very low supply, but the howard hughes corporation just announced its purchase of 7,000 acres 30 miles outside the city for a master planned community of 100,000 homes and 55 million square feet of commercial space. joining me now is the ceo of howard hughes, david o'reilly. david, thanks so much for being here >> thrilled to be here thanks for having me >> i want to ask first, we see huge demand from both renters

and buyers what share of these 100,000 homes do you expect will end up as rentals or for-sale homes >> well, we think the vast majority of what we are developing will be for sale, and with 37,000 acres, this community is roughly three times the size of the island of manhattan. those 100,000 homes, 300,000 residents and 55 million square feet of commercial development will be an incredible small self-contained city of its own we expect to have not just 300,000 residents, but 1.5 jobs per roof top within douglas ranch. we will be selling our first 1,000 lots early next year >> now, you are selling those lots obviously to the big-name builders when you talk to any builder out there, they talk about supply constraints, three talk about rising costs for materials we just saw lumber start to spike again. you will be working with big names like toll brothers, lenar to build these homes are you concerned about the pricing and what it will mean

for this especially if they pass it on to the buyer >> as the largest -- as the nation's largest master planned community developer, we are year in and year out among the largest sellers of land to homebuilders every single year as you mentioned, we are partnering with all of these homebuilders, large public builders, small private builders, delivering them the precious resource they need to execute. today we see that supply demand imbalance at its height. there are very few developed lots available phoenix is a perfect example there's a shortage on the ground in phoenix of 630,000 housing units and less than 40,000 finished lots on the ground to meet that demand that supply demand imbalance has put pricing into the hands of homebuilders homebuilders are now reporting higher gross margins in 2020 than in 2019 despite the price increases and the supply constraint issues they've been battling like whack-a-mole for the entire year. i don't see it subsiding we see 2022 continuing on that

trend. >> right >> we see wider margins for homebuilders we see them paying full price for our land because the demand that's coming from new residents that want to move into these cities like phoenix, las vegas >> but, david. >> are incredible. >> welcome what about interest rates, rising interest rates as part of that picture might they not dampen the home buyers', you know, available of capital to spend as those rise and perhaps affect demand on that side even as costs, as diana mentioned, are rising? >> i think it is a great question the natural and knee jerk reaction is higher rates impacts affordability, home sales taper. i don't think that's the case. in the past two cycles where we saw gradually increasing rates and well telegraphed rate increases from the fed, it has actually spurred demand. as home buyers that were thinking about moving a year from now, two years from now move quicker because they want

to get ahead of the rising rates. again, those are subject to seeing gradual expected rate increase when you see a rate spike as we saw in october and november of 2019, that can pause home sales. for 60 days home sales really cooled off once buyers adjusted to the new rate environment starting in january and february of 2020, we saw that demand come right back to the market. but in big picture, if we see gradually increasing rates the way most of us are expecting throughout 2022, i think we'll see more home buyers into the market early in the year, driving further growth within the home building market >> david, one more quick question about water we are seeing enormous drought out west, especially from the colorado river, and talk that phoenix especially will be hit by a huge water shortage how do you put up this many homes when you have that kind of a water issue? >> water is incredibly important, and for us building our communities in a

sustainable, thoughtful way is absolutely paramount to our success. we have water rights in place for the entire first phase of this development and expect to secure water rights for the remainder. largely relying on the river basin that lies directly underneath douglas rank. but we have developed a community in the desert all right, summer lynn outside of las vegas, where we employed some of the market-leading water conservation technologies and conserved much more water than required of us by local regulations. it is those same market-leading technologies we will apply to douglas ranch that are allowing us to be a market leader, conserving as much water as possible, allowing us to develop more homes than someone who is not employing close to the level of technologies that we are. >> okay. david o'reilly, thank you so much for joining us. ceo of howard hughes back to you, jon >> diana, thank you. no bigger pocketbook issue than real estate. coming up, the pandemic fraud problem nearing $100 billion. we will look at what the secret service is doing to crack down

on it. plus - >> julia boorstin here this is my avatar in the metaverse. welcome to metarized work ros.om i will take you around and show you what to expect from the metaverse. that's coming up later in the show when you feel right, you coach right. i know that's right! prime never believed in double coverage, but health insurance and aflac...is money. ♪ must be the money ♪ and i know how coach prime feels about money. -aflaaaac. -♪ aaahhhh ♪ now that is what this jacket needs. ♪ must be the money ♪ get help with the expenses health insurance doesn't cover. at aaflac.com get help with the expenses health insurance doesn't cover. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪

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("jingle bells") ♪ (doors knocking and bells ringing to the music) ♪ - [announcer] this holiday season, give the gift of grubhub. ♪ welcome back to "the exchange." the dow is up 573 points at the high markets right now, well, all of the major indices near session highs, up 1.5% or better here are some of the movers this hour boeing giving the dow a big boost. u.p.s. is buying 19 of its 767 freighters chinese stocks also rebounding today, alibaba up despite a

downgrade from atlantic equities but the stock is still cut in half this year check out acadia pharmaceuticals. you can see the stock pop when the company said it would resubmit its drug to the fda for the drug to treat alzheimer's. they said the likelihood of success may be limited the stock down 20% today now to kristina partsinevelos for the cnbc news update kristina >> thank you, john here is what is happening at this hour. announcing yet another game that's been postponed due to rising covid cases tonight's face-off between the washington capitals and the philadelphia flyers is being pushed back. the matchup was one of only two games set for today before the nhl league starts an extended christmas break due to cove. minnesota tim walz is the latest governor to test positive for the coronavirus. he tweeted his wife and son have also been infected he has no symptoms and his wife

and son have mild symptoms walgreen's says it is limiting sales to four tests per customer, calling the increase in demand unprecedented. on the news, testing whether the drug in magic mushrooms can treat depression see why researchers are testing it on frontline health workers tune in tonight at 7:00 p.m. eastern time jon, back to you >> kristina, thank you still ahead, if you act out of line, you will wait in line that is the warning from the faa administrator for unruly passengers those details next plus, imperfect produce at discount how misfits rkmaet is reducing grocery costs. that's coming up "the exchange" will be right back (soft music)

hey dad, i'm about to leave. don't forget your hat . good morning. how can i help? i need help connecting with my students. behind every last minute save, ok, that works. and holiday surprise, thank you! a customer service rep is working unseen, making it happen. and at genesys, we're proud to help them help you everyday. earn about covid-19, and at genesys, the more questions we have. the biggest question now, what's next? what will covid bring in six months, a year? if you're feeling anxious about the future, you're not alone. calhope offers free covid-19 emotional support.

call 833-317-4673, or live chat at calhope.org today. - music and the arts boost confidence, creativity, and overall academic performance. - i have dreamt of performing since i was a little kid. - so whatever your dream, music can help get you there. the more you know. ♪ welcome back stocks staging a comeback after yesterday's sell-off, not enough to recoup the losses but the dow is up about 1.5% as are the other major indices. let's see. the nasdaq up nearly two let's check in with beat reporters. josh lip ton tracking the moves in semiconductors. phil lebeau with the moves in airlines despite covid surges.

and robert frank brings us those powering the crypto markets. josh, let's kick off with you and the chips. >> jon, it is a good day for chip investors if you look at the smhe the etf tracking the chips. you are in the green today you have to talk about micron, ripping higher in today's trade off the strong earnings reports. our own jim cramer had the interview with micron ceo this morning. i thought it was a great interview and interesting, not just for micron investors but chip investors in general. he talked about the bigger trends and themes that he is seeing one is just the demand environment, and he talked about how he is seeing demand across multiple channels there. he is seeing strong demand he said from autos to data center he also talked, i thought importantly, about the supply chain bottlenecks which, of course, are top of mind for the audience sanjay said, listen, he is seeing the supply chain bottlenecks easing and he thinks

they will continue easing next year he said there are open questions, waiting to see what the economy looks like neck year, waiting to see what the effect of the omicron is but he sounded bullish and confident his company will be able to handle whatever is thrown at it, jon. >> josh, it sounds to me like so many of the chip makers are talking about 5g, hyperscaler cloud, data center, automotive, as you mentioned, as being important stabilizers of demand despite what might happen with the consumer are those the things investors should probably pay attention to heading into 2022? >> yes, and certainly he talked a lot about the big secular stories, the tail winds that he thinks micron is very well poised to capitalize on. i think the bigger picture, jon, with chip investors, they know demand is strong, they listen to the chip executives on the last round of earnings calls. they broadly sounded i think very positive. i think you do start to question how long the good times can last it was interesting, bernstein, stacey, they're an analyst

covering the chips for a long time he recently told his clients he is starting to feel a bit nervous here he is telling them, listen, it is time if you are a chip investor in his opinion to commit capital to the safer stories, to the secular stories. i think for him it is broadcom, qualcomm and nvidia that are still buys, jon. >> a lot of dependence on the big tech names to buy the chips on the hyperscaler side and to prop up the s&p. jon, thanks. the nyse staging a big turn around yesterday, about 6% phil lebeau digging into what is driving the action >> a nice bounce for the airlines and a couple of things are taking place look at the big four in terms of international travel here in the u.s., we are talking about american, delta, jetblue because of services in the uk as well as united, all moving higher. why? we're not seeing the level of lockdown many people feared in europe and there is a growing sense that, well, covid may be

raging around the world, we are not seeing the same reaction we have seen in the past when you had things like the delta variant that was spreading around at the same time you are seeing the number of people who are flying domestically, it still remains strong the numbers from yesterday according to the tsa down just 16% compared to the same time in 2019 all of this comes at a time when the faa is also basically asking the tsa, hey, look, when it comes to unruly passengers, we want you to take those who have been fined, not just those who have been, you know, reported, complained about, but those who ultimately were fined, about 315, put them on the you can't receive tsa precheck in the future whether or not that actually happens remains to be seen it will be up to the tsa which is in charge of that one last note. take a look at boeing and airbus the reason we are showing you these two is because the ceos of these companies have written a letter to the head of the faa

saying the altimeter rule, which is expected to go into effect on january 5th, they think it should not go into effect, that it could impact commercial airline service around the country. that is the story, jon, that will play out over the next couple of weeks as the airlines and now the heads of boeing and airbus have said this is not a good idea. you need to change the 5g spectrum in certain areas because if you turn off the altimeter you are going to impact a number of flights, many flights in different parts of the country starting january 5th. >> okay. phil, i want to go back to the airlines because interesting to me, the cta sent out a note about cefs, the consumer electronics show this morning, saying the show will go on we have tests that will be available for attendees, et cetera, et cetera. i'm sure nevada and las vegas happy to hear that my overall question is i imagine it is one of the things that's good for airlines, it is one of the biggest industry shows out there. >> sure.

>> have we reached perhaps the point of stability where the airlines don't have the same kind of structural vulnerabilities they did even when we saw delta crop up, but certainly when the pandemic initially hit? >> right well, i go back to what ed bastian told us last week. every time there's a wave of covid-19, the impact in terms of the negative impact seems to be a little bit less each time. do we expect to see some companies or, you know, conventions or different events decide we're going to put off having this take place or we're going to put off some travel yeah, some of that will take place, but you are also seeing people saying, you know what we're still going through with this trip, and we're certainly seeing it during the holidays on the leisure side whether or not we see it on the corporate side, i think it remains to be seen but it is certainly not the level of cancellations that we saw with the delta variant >> all right phil lebeau, thank you now the luxury market getting a boost from crypto investors. robert frank joins me with those details. robert >> well, jon, luxury companies

started the year betting on china for their recovery instead, it is the u.s. that has been the big upside surprise thanks in large part to young crypto consumers now, a new report from jefferies shows that global luxury spending has now rebounded to pre-pandemic levels, but they revised up luxury spending in north america by over $30 billion over the next three years, now expected to top $100 billion by 2023. the biggest reason, a wave of young, wealthy super spenders using their crypto and asset wealth to buy everything from louis vuitton backpacks to cartier watches. jeffery is saying, quote, the u.s. buyer of luxury is now younger and more affluent, and we flag the significant surge in asset values and above all from cryptocurrency wealth which has increased the total of cash transactions now, the north american share of global luxury spending is expected to grow from 23% to 25% next year, though china still will lead the world by far at over 40% of all global luxury

spending stocks that will benefit most here, lvmh, up 40% this year, kering up over 20% this is why the chairman has added $50 billion to his personal wealth this year. now, of course, the third richest man in the world >> so, robert, a question i got to ask yis, is the whole luxury category going to be the new robinhood and coin base where the fortunes are somewhat tied to the value of cryptocurrency if we get a dip, a dive in the price of bitcoin or ether, is that going to hit luxury sales now? >> well, they're certainly tied to that consumer in terms of the trends in the buying if you look at lvmh, if you look at keil and reishmont, it is the young crowd that is the explosion in luxury designers

and sneakers they're driving the design and the product growth we will have to see how long that group stays wealthy and how long this industry can demend on them >> there's your pair trade on luxury robert frank coming up, the metaverse promises to be the next dimension. we will get a look at the es a tries already therendhe on poised to be there next "the exchange" will be right back ♪♪

♪♪ ♪♪

♪ welcome back to "the exchange." from fortnite and row blocks there's money being poured into the metaverse. julia boorstin joins me with a look at what is next julia. >> jon, we may be years away from a truly connected, immersive world but parts of the metaverse, the tech platform that could define the future, they're already here ♪

>> mark zuckerberg's vision of the metaverse is fully immersive with vr headsets, but people are already exploring virtual worlds without hardware let's build an after au tar. decentral land which is run on ethereum allows it >> i have earrings >> talk to other avatars, play blackjack and buy virtual real estate >> this is where you would buy land >> companies can buy ad space on digital boards it is where you can play games and buy digital products from big-name fashion brands like ralph lauren to outfit your avatar >> i can buy a beanie for my avatar >> you can use the currency inside ro blrks ox to acquire the goods. >> if you want the immersive experience you need to have a headset. i'm wearing the quest 2.

this is the avatar i built to explore horizon worlds >> they're bringing to bring remote workers into a virtual space. this is called facebook work rooms and it is designed for meetings, a sign of what a professional piece of the metaverse will look like another promising use case for vr headsets, fitness one of the companies leading the way is fit xr, offering dancing, boxing and high-intensity interval training classes all in a virtual space. i did have a lot of fund building the avatars for each of the virtual worlds and exploring all of the different things people are creating for them i went into meta's horizon world, then work rooms using this oculus headset. these are the hand controllers i was using. pretty lightweight a lot better than some of the early generations. this one isn't plugged in, it is something that you don't need to be connected for buff i hav but i have to say for some of the platforms, some of the websites took a long time to

load so there's a lot of work to do, jon. >> you know about my metaverse narrative skepticism, you know, some of the stuff in there does it concern you at all from the business reporter point of view that arguably the biggest cultural phenomenal in the metaverse was five years ago, it was pokemon go none of the other stuff has quite hit at that level, am i right? >> oh, i think that's different. i feel like pokemon go was more about augmented reality and an alternate reality. i would say fortnite and roblox are the biggest metaverse players right now. >> i would still say poke eamon go as a cultural phenomenon was bigger than that and it would be lumped into metaverse if people can monetize it. great package. thank you. as companies navigate supply issues, one startup is looking to be part of the solution "the exchange" will be right back yeah, that's right. wait — so if geico's 85, that makes you —

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dairy products that might not be up to the aesthetic standards of your grocery store joining me is abbie remesh, ceo of misfits market. good to see you. i imagine maybe higher food prices overall and maybe even stay-at-home type concerns thats that would keep people from going out might be demand drivers for you in the past and maybe now, too is that what you're seeing >> that is exactly what we're seeing we have an interesting view into the supply chain and inflationary pressures that are impacting food prices. what we're seeing isn't great for consumers. freight prices are increasing. there's still labor shortages. the costs of commodities are going up there is a lot still happening on the food rise horizon the good thing about platforms like us is that one, we're digital. entirely e-commerce. we bring these from farms from our fulfillment center and take

them to people's doorsteps so by doing that, we're limiting the impact of that inflationary pressure then two, we're able to buy a lot of that food that tradit traditionally wouldn't make it to traditional retail channels >> how do you avoid the fate of the other kind of prepared meal type providers same similar basic idea of sending food into the home maybe even a bit of a surprise about exactly what you'll get. i mean, what's the kind of relationship or brand value or even marketing strategy you need to build more predictability than they've had >> yeah. for us, it's really about we're not a prepared meal solution we're not a meal kit platform. we're an online grocery store. when you look at the assortment our customers have, it's like what you would have when you walk into your grocery store online we have hundreds of items so you can pick and build your cart across meat and seafood, bakery,

dairy items. i think that value proposition is really critical for us. historically, a lot of players in e-commerce have been priced as a consumer so you're better off driving to the store than ordering online. our platform is different. our prices are 30 to 40% cheaper than brick and mortar prices >> we've seen some companies start off with subscription and even subscription only as a base then diversity out into allowing their customers to make more individual purchases outside of that model how important is that going forward and do you have the capabilities logistics wise to execute that >> we do so we view our long-term model as a blend between what we call a la carte grocery commerce. the beauty of grocery is it's one of the only categories where it is a repeat weekly behavior by default

i think a lot of consumer subscription companies have fallen into the trap of forcing subscriptions on top of an existing channel of spend. the benefit of grocery commerce is someone's already going to the store every week sometimes multiple times a week. so we are able to take the great parts of a digital subscription and layer them on top of a repeat purchase behavior grocery stopping >> what about the number of relationships that you need to continue to build out in order for this commerce to stay local? i imagine that's part of your story in sustainability. what's your roadmap for that >> so, supply relationships are a huge part of our business and we have built our supply chain from scratch we don't work with distributors. we work with the farmers, manufacturers and we work with hundreds the company's been around for three years and in that three year, we've partnered with hundreds across the grocery system that will continue to grow it's a challenging part of our

business, but it's what we believe will build a competitive mote over time we have a diversified set of suppliers and it's how we're going to expand assortment >> looking forward to seeing how it unfolds thank you. coming up, the secret service is ramping up its fight against pandemic aid fraud s inl dig into what'beg done eye popping numbers, next. thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... 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?

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welcome back travel stocks are on the move. let's check in with seema for a market flash >> hey, jon. i want to draw your attention to shares of carnival among the best performing names after the ceo said he's anticipating robust bookings for the second half of 2022 and into 2023 and how right now, he's only seeing a small spike in cancellations due to omicron

he also talked about therapeutics playing an important role in easing concerns around covid. at the business update yesterday, carnival up nearly 8% earlier today, research from analysts suggesting that the u.s. is likely weathering covid headwinds better than europe with fewer restrictions and no major lockdowns and how that will bode well for recovery and travel in the u.s. marriott higher by 5%. jon. >> thank you only a flrac of the pandemic relief funds have been distributed, but nearly $100 billion has been stolen from those coffers. eamon javers has more on what's being done to fight it >> that's right. and that $100 billion you're talking about could make this the largest fraud of all time. law enforcement officials expect they're going to spend years clawing back as much of that money as they can. so far, the secret service says it's investigations have led to the arrests of 100 people and

the seizure of more than $1.2 billion as well as the return of over $2.3 billion in stolen funds >> as a taxpayer, it kind of, it's shameful to think that individuals would take advantage of these programs that were established for people that were truly in need because of covid-19 and that they would target them for their own personal, you know, advantage. >> now the secret service announced this morning that it's appointing roy dotson to the new position of fraud recovery coordinator where he's going to coordinate all of the services pandemic investigations. he told me he's amazed at the scale of the problem >> i've been in law enforcement for over 29 years and worked some complex fraud v investigations for 20 plus years and i've never seen something at this scale >> now, jon, the good news here is that the secret service has

more than 900 active investigations into this fraud right now and he says he's been working effectively with private sector financial institutions including paypal, to recover all of that stolen money back to you. >> quite a story and it's going to go on. thank you. that will do it for the exchange "power lunch" starts right now welcome to "power lunch. i'm melissa lee along with tyler mathisen here's what's ahead. bounceback stocks rebound after a three-day rout and the trucker shortage it is a critical missing link in the supply chain we'll talk to the ceo of a company that's trying to solve the company as the costs of empty trucks keeps climbing. and president biden scheduled to speak this hour on the fight against omicron. we'll bring you his plan t