excited, what keeps thee excited and keeps our customers continuing to come to us, our usage and numbers and everything are higher than they have ever been. >> yeah. >> growth in the last quarter has been growing faster than ever before. >> plus, we never know when we are going to be in the office versus not which i guess plays exactly to your strategy. >> that's exactly it the hybrid. >> thank you for joining us. >> yeah. >> that is going to do it for "the exchange. "power lunch" starts right now welcome to plumpl,-- -- "por lunch. i'm rahel solomon. confidence wuss, consumers are feeling good about their financial prospects despite rising omicron cases and higher prices. oppenheimer says a crypto-related stock could be a big winner. a work wlunch ceo 6 honeywell.

the company has become a major player in the energy transition. and the ceo has a new strategy to fuel growth tyler? >> hi, rahel thanks very much and stocks near session highs right now, rebounding for a second consecutive day the dow down a little more 2% off its yearly high. the s&p off 1% as we look at the gains, 179 for the dow industrials. nasdaq remains nearly 5% off its high it has been a rough month or so for tech stocks. caterpillar, the best performing dow member, bernstein upgrading the shares saying the machinery maker will be a key beneficiary in a rebound of global growth. pfizer shares are higher after the fda made its pill the first oral anti-viral drug cleared during the pandemic. good news for pfizer and anyone who is suffering. let's begin with the consumer the conference boards confidence

index coming in stronger than expected despite rising covid cases and higher inflation 27% of consumers say business conditions will improve. 25% expect more jobs to be available in the months ahead, up from 23% and 18% say their incomes to increase over the next six months. this survey was taken through mid december as omicron spike was starting it is a sign of economic resilience joining me a cnbc contributor. the overall number, steve, is as high as it has been since i think july, 115, a move of about four points it guess it is just the movement in all -- or several of the constituent parts of the index that add up to that overall number >> yeah. tyler, this is really a high we haven't seen since predelta. one of the key things that we

can take out of this is that omicron doesn't seem to be deterring people part of it may be simple covid fatigue. people are tired of talking about it and they are not taking it quite as seriously. also, omicron is less lethal than prior versions and it has given people confidence all aren't that they can go out into the market and not be risking their life in doing that i think this may be the shifting point, though, tyler, from a pandemic to an endemic virus, meaning that i see us, you know, through this data showing that we are adapting as a society and we are learning to live with it. doesn't mean that it is not going to affect in-person services, you know, if people shut down or limit how we engage but it certainly -- it looks like people are adapting to it the other piece of this which is important is inflation concerns are also down from 13-year highs last month but that varied by income group. if you look at the consumer

confidence index by income group, it rises as the income rises. and so consumer confidence this month was actually down among lower income groups because of inflation. and because there are concerns that real wage growth was not going to keep up and there might be a standard of living decline. so interesting output from this latest survey. >> let me make sure i understand you. people at the lower levels of the income scale are more concerned about inflation than people at the upper levels which you would expect >> correct so the consumer confidence confidence went down month-to-month among the lower group even though it rebounded in total that was almost completely due to the higher income groups, they are not living day to day and using their income to survive with food and energy output >> so those are the numbers. it paints a pretty nice picture.

i am going to ask you, as a former ceo, as you would use these numbers. what would they tell you how would you bring them to the table, to the board, to your executive team and use them as you look ahead to 2022 >> yeah, i think -- i think, clearly, from this data it's showing that consumers are ready to get back into themarket you see the intent to buy housing, the intent to buy cars sailing again, appliances and so forth. i would say this is a really bullish sign for the economy that over the next six months consumers expect to spend, the economy should expect to grow. i would caution everybody to say inflation is a real issue. i think wage expectations in a separate survey were at 3% back earlier this year, and they are now closer to 4%, and you are seeing kind of a free-for-all bidding war this the services sector

the key issue here is what's going to happen with inflation now we believe the fed will act quickly with their balance sheet and we believe there are going to be three somewhere rate hikes in '22 that will impact the cost of borrowing and everything else. this is going to have a ripple effect. >> quick final thought here. i was surprised that that concern over omicron or the virus seems to be receding a little bit what was the timing this survey? because the real concern about omicron seemed to hit sort of last week into this weekend. >> yeah, i was surprised as well you know, the november date were entirely before omicron. omicron picked up right after that so these data were collected in the heat of am krone, now, not the last couple of days but this includes the omicron experience so far, which is why we think that omicron doesn't seem to be having the same kind of impact on consumer confidence and spending that delta did.

remember, when delta came out, consumer confidence went way down very quickly. >> uh-huh. well, it does seem, steve, happily, while this is a very infection shows form of the virus it does not appear to be making people as sick as say delta or some of the other variants steve, thank you for your time steve is with the conference board. our next guest says that valuations matter, especially when it comes to tech stocks, and he sees a developing mega cap divide between companies that have and have not earned their high valuations. greg demartsio is a portfolio manager at rockland trust. thanks for being here shoo thanks for having me. >> you are saying there are two camps within mega camps. companies such as microsoft as you point out that earned their high valuations and there are those companies that have ot, which you point out as netflix and amazon walk us through your case.

>> yeah, i wouldn't say the companies haven't earned it. what you would say is over the last five years, we have been in a very growth-conducive economy, interest rates are favorable to companies where revenue growth and earnings are on come, in the future if you step back now among the mega caps it is easy to combine all of them, all six or seven of those. i easy to look at several that have kind of 30ish p/es that seem high relative to the market but seem justifiable given to the cash flows and margins of these companies. then you have companies trading at 50 to 100 times earnings, and those companies are going to be more sensitive if we are worried about interest rates rising, if we start to move towards value from growth. >> i guess the arguments would be that amazon and netflix are

growing faster than a company like microsoft. >> no doubt. admittedly, these companies are growing faster than a company like microsoft, companies like apple and google it is a matter of what is the right valuation and where are investors as a whole putting their priorities. >> speaking of priorities, of course everyone thinking about interest rates rising next year, how much, how quickly. you appear not as fearful, greg, that interest rates will rise as steeply. walk me through that. >> yeah, i think in terms of at least one opinion is looking at the current data, i think there is a lot of data that supports the fact that inflation at an incredibly high level is likely peaking. from here we enter disinflation. and in a period of disinflation, we can hopefully enter a period that investors have come to know as gold elocks where if inflation retreats enough the

fed won't be pressed to move as fast as some believe they will i believe interest rates will go higher but if you look at the bond market, the bond market has really done anything since powell opened his mouth. in a lot of ways it is saying interest rates might not move as fast as we think. >> let's look at names that you like you like o'reilly, you say this is a name that should do well no matter the environment next year >> we just made a lot of big statements about interest rates and the direction of inflation and like at the end of the day we are here to try to compound wealth a name like o'reilly, we are trying to avoid a macro call and find a company that can do well regardless of the macro environment, isn't dependent top interest rates they have done well in good and bad economies. right now they have the benefit

of the doubt with the scarcity of new vehicles out there. they have a phenomenal business and business model. >> up about 50% year to date, do you think they can sustain that level of performance next year or it scales back a little bit >> i would think it would scale back, but another 50% would be great, but we are not predicting that. >> we will be watching finally, what are your concerns heading into 2022? >> i think getting back to that, you know, hopeful goldilocks scenario, the only thing that could really ruin that would be the federal reserve making a policy mistake what i mean by that is if there are signs that the fed is slowing and yet the fed gose forth with its mission to raise rates three times that could prove to be a mistake that would be painful and that in essence always creates a little bit of a ripnell the stock market. >> greg demarrsio, we will leave it there

happy holiday. thanks for being with us today. >> thank you >>-high tyler? >> re hall, coming up, digital assets will continue their push into the mainstream. that's the predaks from oppenheimer. they say a acrobat-related stock is set to benefit big time next year we will talk to that analyst next. plus the safety from gold and treasuries. our trading nation has the bt es place to protect your portfolio amid market volatility we'll be right back. ♪♪ ♪♪

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - 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.

xfinity rewards are our way of thanking you just for being with us. enjoy rewards like sing family fun nights! rent sing for $1 then belt out all your favorite tunes from the movie with sing karaoke. plus, see sing 2 in theaters with buy-one-get-one free fandango tickets. join over a million members by signing up for free on the xfinity app. our thanks. your rewards.

welcome back 2021 was a great year for cryptocurrencies, even with the recent pullback, bitcoin is still up 68% ether up 400%. what should we expect next year? let's go to kate rooney for her 2022 crypto playbook. >> i have been talking with ceos and investors in the space crypto is more than just bitcoin next year. regulation is the big thing they are watching in 2022 there is also a focus on building applications on top of block chains some call it web 3 bitcoin adoption and a brain drain as they call it from big tech this year laid the groundwork in washington insiders expect treasury to pay more attention to stable coins

and crypto specific bills as well we will get updates on a central bank digital currency and a bitcoin etf. we have heard things like club memberships and assets within video games. heading into next year there are also questions over which block chains developers will choose to build on of the it has been ethereum but challengers like solana and avalanche are becoming viable options as well. for bitcoin, keep an eye on sovereign adoption, cross border payments lieu the fightth lightning network and institutional adoption finally the brain drain, industry ceos say they are seeing floods of tech applications from wall street. >> we have been hearing

information about blockchain and web 3 from elisten mosque. >> we are seeing more attention on that topic. elon musk and jack dorsey bringing attention to web 3. social media apps, stock exchanges without a middle man, built on blockchain, anything that's decentralized people i am talking to expect tension between some of the big tech companies like metathat are work on this and the smaller crypto native start-ups which are trying to disrupt the big tech companies with the projects they are building. expect more money flooding into the space. this was a record-breaking year so far you will see more of that funding spilling into next year. you might see the less traditional forces, crowd funding, tokens, sources suggest some of the big silicon valley investors we are used to seeing.

>> thank you tyler? >> thank you guys. while bitcoin has jumped about 50% over the past six months, the crypto he can change platform coinbase has lagged behind but oppenheimer sees a number of catalysts naming coinbase a top pick for 2022. owen lao is the analyst behind that call, the executive director at oppenheimer. you have an aggressive price target, $444, up from $250 right now. how is it going to get there >> thank you for having me, tyler. how to get there, number one, as we talk about that, and listening to your conversation with kate, we see a -- an adoption in both institution and on the retail side for digital assets it is about ethereum, bitcoin, solana, as we just talked about

we predict more and more institutions will invest in bitcoin or stable coin to earn yields on retail side what we are predicting is we see more and more options are being offered to consumer for consumer payment. for example, you may be able to use crypto debit and credit card next year. >> so, i, as a retail individual i could be using it? institutions, corporate treasuries may be carrying it on their balance sheets as a way to store cash, right? >> correct correct. >> so let's move on to other things i note that you not only like coinbase, but there are a lot of other financial service companies like nasdaq, like cboe, that are on your favorite list for next year why are you concentrating there? what do you see in that space

that excites you i know one of the things is the potential for m & a activities >> exactly other than coinbase, the other topics for us are nasdaq and ndaq, and also s&p global. both of them are high quality compounders. they generate very high margin they also generate very high cash flow. what we are seeing from this business -- first of all, they aren't impacted by covid they provide mission critical activities so they are still up and running during covid the second point is, they are not impacted by supply chain constraints because of the reason we just mentioned and they can also run their business electronically that's why we don't see the challenges we saw from other sectors that would impact those names like nasdaq and cbo and also s&p, and by the way, they are also a wonderful business

that has valuable mvps and can continue to grow their earnings. esg for s&p, they actually grow the esg revenue by 50% this year >> if -- let's go back two quickies here. if there is a wave of m & a activity, would coinbase be a buyer or a target? >> koib has $6.4 billion on the balance sheet. they generate about 47 ebitda margin they generate massive cash flow. they have lots of cash on balance sheet. at the same time, they also have the dna to go out and buy like other crypto native companies. owe look at the coinbase venture. they had open c, they had unione swab to me, it is likely that coinbase will become the buyer because of the fire power they have. >> sounds like it. final thought, quick answer

please, owen what with coinbase would be the risk to your hypothesis? what could go wrong? >> i think the number one risk is still regulation. again, we hope to get the regulatory clarity we may not get there next year but it is one of the headlines we are going to see next year. >> thank you owen, clear answers, of oppenheimer. thanks for your insights today. tyler, thank you still to come, we will continue to break down everything you need to know about the year ahead. first a top energy analyst on where oil and gas prices are headed aten a peek into the metaverse, wh virtual real has in store for 2022 all that when "power lunch" returns. ve the savings they're gonna get with geico, but... it goes beyond that. you. deserve. to save. ha — heard that before. you. deserve. to save. i know. i need you to hear me.

you deserve to save. i deserve to save! i mean he has a way of making you feel...seen. bundle car and motorcycle insurance and save at geico.com. bundle car and motorcycle insurance and save ♪ ♪ ♪ 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. (inspiring music) - [narrator] at southern new hampshire university, you can finish your degree faster, and for less money. transfer up to 90 college credits toward your bachelor's degree. - i was able to transfer a lot of my credits and it made it easier for me knowing that i don't have to start all over again.

- definitely lowered the cost by being able to transfer those credits in. - [narrator] get more transfer credits, pay less tuition. now that's something to celebrate. apply free at snhu.edu welcome back to "power lunch. i'm leslie picker. herself your cnbc news update. over the weekend, the white house blasted democratic senator joe manchin for apparently giving up on president biden's

stalled build back better bill today a softer tone with press secretary jen psaki saying also no doubt there will be more negotiations. >> we believe that the -- that senate manchin has been engaging with us over the course of time and months in good faith the president believes they are friends. they can work together we need to work together to get this done. they have some disagreements but there is a lot of things they want to get done our focus is on -- is on moving forward. >> as president biden was meeting virtually with ceos on supply chain issues, the white house announced a pcr covid test he took today had come back negative his second negative result since being i go posed to an infected staff member five days ago. sod south dakota reported its first omicron infection. all 50 states have now at least one case of the quickly spreading variant. it has been 21 days since the first omicron infection was

confirmed in san francisco it has been a busy three weeks only 21 days ago look how far it's spread. >> absolutely. thank you leslie picker. time for today's power moves. car max. the used car dealer down more than 6% despite beating on earnings on the top and the bottom line. wretch up nearly 65%, and hit a record high of $8.5 billion in the quarter. the company sold more than 415,000 cars in the period, up 29% from the prior year period shares are up 35% this year even though they are down about 6%ed to. next up is paychex, this stock higher after beating earnings and revenue estimates, the company saying trends that emerged during the pandemic continue unabated, specifically consultation services for human resources and benefits packages. finally, tesla higher today

after choppy trading earlier in the week bared in a new note saying despite disappointment over potentially losing an ev tax credit that was included in the ill-fated build back better bill we expect sales to remain robust that stock more than 40% this year that's tesla, at $1,000 on the button for more on tesla and any of the analyst's calls of the day go the cnbc.com/pro. nat gas prices surging this year, taking a big hit over the past month, down 16% as atflation head winds continue. wh can we expect from prices in the year ahead? we will discuss coming up next

♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - 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. mom, hurry! our show's gonna start soon! i promised i wouldn't miss the show

and mommy always keeps her promises. oh, no! seriously? hmm! it's not the same if she's not here. oh. -what the. oh my goodness! i don't suppose you can sing, can you? ♪ the snow's comin' down ♪ -mommy? ♪ i'm watching it fall ♪ watch the full story at www.xfinity.com/sing2 welcome back 90 minutes left in the trading dame we want you to get all caught on the market stocks, bonds, commodities and what to expect in 2022 let's begin with bob pisani, who is tracking a second day of stock gains. bob? >> rahel, we are just off the highs for the day. the good news is, the bulls are more in control of the narrative than they have been recently but we are still kind of defensive. if you look at the sectors and the stocks that have been doin well this the last couple of

weeks much is defensive. what do i mean consumer names like proctor & gamble, colgate has come roaring back in the past week or so. pharmas, like bristol and pfizer doing well cyclicals are the heart of the s&p 500 outside of technology. they are going up and down depending on the omicron headline 3m, general electric, kinds of up, kind of down energy like hess, and banks like region's financial up and down depending on the omicron headlines. technology initially hit on these concerns except for apple which mass held up very well by and large they have made a comeback broadcom at a new high, microsoft also holding up. i will tell you how the bull narrative is holding up. royal caribbean is $79 that's a big move to the upside. carnival having positive comments about booking helped a

lot. but this is a real example that there is a little bit of bullish control of the market right now. so the bull narrative is very, very simple right now. so far, it's holding up. omicron is contagious, but not as dangerous as prior variants there is not going to be a mass shutdown this is what the bulls want to believe. the bottlenecks and supply chains are going to ease in the first half of 2022 as a result of all this, the fed will be less aggressive on inflation. on top of that, the consumer is going to be strong and earnings are going to be pretty good. that's the bull narrative. whether it holds up or not is not clear. right now the markets moving on that narrative guys we might get a shot at a real santa claus reaally we are 4 points away from that right now. now to the bond market, which is hanging in today, digesting lots of economic data, rick santelli tracking the action there rick >>. >> that, rahel

yes, if you look at intraday of tens what you need the notice is that we made our low yield as stocks opened at 9:30, and if you look at the way yields fell, they fell right after the 8:30 eastern data now, that's pretty interesting, because the gdp pricing components were actually on the hot side and i'll explain even though we moderated on gdp price index to 6% versus its 40-year high at 6.1 last quarter. if you remove last quarter's 6.1, the 6% is still the highest since 1981 so we are hovering near a 40-year high if you look at the core cpi. it also had its high at 6.1 last quarter. that was the highest level since ' 3. if you factor it in and remove it as i just said with the previous number it would be a stand alone the highest level

since 1990, or 31 years. that's important to pay attention to if you look at the two week of tens the resistance jumps at you. 175 pshz on top. support, 137, 1.37 to 1.39%. finally the designate spreads, they are still flat. a year to date of twos to tens, at 79, the range for the year, 75 to 158. twos to 30s right now, they hovering at 119. the range for the year, 229 to 108. we need the curve to steepen for the fed to claim success, but it hasn't occurred yet. rahel back to you. rick thank you data also impacting the oil market we have the latest supply numbers. let's go to pippa stevens for the details. >> that's right. the u.s. inventory report is supporting oil prices today. the energy administration said

stock files fell more than the 3 million drop investors were expecting. wt is up 2.5% at 72.89 brent crude is at 5.41 for a gain of 2% as well gasoline inventory was off by 5.5 million barrels. which is the biggest build since union. omicron has canceled travel plans for millions of people over to nat gas, also moving higher, up 2.6% nearing the $4 mark we talked yesterday about the energy crunch in europe. look at this chart it shows that huge move. natural gas futures have gone from 17 euros per megawatt last year to 180 youras today a big move to watch. >> sure is let's start there. with big swing this nat gas price this is year, what can we except in 2022.

>> joining me now, francisco blanch let's start with the nat gas prices amidst the energy crunch in europe and concerns whether there is enough nat gatt to get louis you the winter in europe what is your market outlook there for prices >> well, so, prices are, as you pointed out, at exceptionally high levels, well over $250 barrel for the equivalent, which is ten times the price we are seeing in the u.s., more than ten times right now. europe has a huge issue. europe never really built inventories throughout the past few months so europe went into winter with very little gas in storage and now, because there is a structural deficit, we are starting to see prices jumping to record levels so liquid natural gas cargos turned around and rather than going to china started going into the european sorts. russia, of course, has also --

the amount of gas feeding into europe there is a dispute there going on for a number of reasons, some of them geopolitical and europe finds itself in a tough position i think part of it is because europe has become reliant on intermittent energy. on wind and solar, and has been cutting down on traditional sources including coal and nuclear. because there is no gas you had this incredible jump in prices we think the sector is -- the industrial sector is going into a recession here particularly those sectors very exposed to energy prices meanwhile, we continue the see the benefits of that feeding into u.s. market of course which as you point out earlier is recording the strongest gdp in decades. >> so, walk me through, francisco, how exposed are we in u.s. markets to what is

happening in in your opinion walk me through a little bit more about your outlook for the u.s. >> so in europe we think price also stay high the remainder of the year winter prices are higher than summer prices but we could very well see $100 barrel or 170 mmbtu summer prices after the winter in europe that's kind of the situation there. in the u.s., on the other hand we have the u.s. shale industry responding to the higher prices delivering growth of over 2 bcf a day in november over the previous month so because of shale we are getting the flexibility, the incremental output that the market needs and we have had a warmer start to the winter than europe has. less demand because of warmer weather and more supply have led to gas prices sinking in the u.s. i don't think the u.s. is that

exposed. one of our thesis, is that the u.s., which is now energy dependent because of shale is reliance on domestic sources of production we are going to see the u.s. moving to energy dominance and starting to attract industries from all over the world that are heavy users of energy, including bitcoin which eight months ago was mined in china, and of course today north america has become the number one hub for bitcoin mining >> i have to let you go. before i do, more u.s. specific question, where do you see wti going this year? the range has been 51 to 86 this year where do you see prices going next year? >> we are bearish on gas in the u.s. we think it is going to be 3.45 per mbtu we are constructive on data. the omicron continues fast and

if you arees somehow, being a virus that slaps dig business comes back down as we have seen in south africa we can see recovering prices next year. we have been down too long and people want to travel. we think prices will average 85 on brent, 82 on wti from averages around 68 to 71 dollars this year. the one caveat is what happens in china because of course china is exposed to covid and omicron more than other countries around the world because of their limited natural exposure code. >> we will have to leave it there. i can certainly agree that lots of people want to travel how exactly to do it safely these days is another question entirely thanks for being with us today. >> thank you alrighty after the break, another week, another working lunch. jon fortt sits down with the ceo of honey well to discuss the

challenges the industrial sector faced this year, and what's ahead. "power lunch" will be right back

♪ ♪ ♪ 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.

worker's comp can crush a small business. every year it would jump 5, 10, 15, 20 percent - even though there was never any claims. and that's where i was struggling as a growing business. i'm very happy that i moved over to pie for my worker's comp. from start to finish, it was extremely easy. they quickly came back to me with a plan that was affordable for me so that i could grow my company while not breaking the bank. ask your agent, or get a quote at easyaspie.com. i'll give you three weeks 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 ♪

the omicron variant has the global economy on edge and it has been challenging for industry companies n. our last working lunch of the year, john fot brings us up close to a ceo who is betting on new approaches to fuel growth at his company. >> adam chuck is the ceo at honey well, an industrial giant. throughout his career he has had to make unconventional decisions and play the long game to move his career forward he didn't get harvard business school the first time he applied. he regrouped and renewed his strategy his boss at the time didn't want him to get an mba. >> i went back and talked to my bosses and said i want to explore business and business leadership and general management that's kind what have i want to do they looked at me and said you

just spent the last six, seven years of your life in developing yourself in an undergraduate engineering degree, graduate degree working in this exciting technology area why would do you that it doesn't make sense, you are meant to be an engineer. i thought about it what they said made perfect sense. but i felt like, that's not how i feel, i feel like this really isn't it. >> now he's the ceo of a company with about $104 billion market cap. so i think he did all right. so what's adam chuck focused on now? sustainability, kickly when it comes to energy and the products that rely on it. though economic conditions are foggy now in the pandemic he believes the world's need for cleaner more efficient energy use is going to be a boone to honeywell. >> probably the thing that honey well doesn't get enough credit for is the kind of role we can play in energy conversion.

just about every relevant technology out there for the future of energy we currently have so whether it is green fuels, whether it is hydrogen, whether it is carbon capture, whether it is fuel cell batteries which can really be used en masse for energy applications. all these technologies we currently have they are not futuristic. i think we are going to need a catalyst from the government entities to really create a compelling case to up vest in the future and have a less carbon intensive environment. >> that raises a tough thing about sustainability as an investing theme. as darius mentioned, it seems to be dependent on the global web of laws and regulations. the planet might need these technologies but when will governments act? honeywell has a lot of it there and outside of the sustain nlt theme. once again, the long game, guys. >> i think of honeywell as a

measurements company a regulator's company, a kind of you know, controls company what is their niche in the energy area? or is it across the whole smorgasbord? >> there is a lot, tyler heavy got building technologies, technologies for within buildings, commercial buildings, to regulate how a building is being used, things like temperature that have a big impact also they are in aerospace if you think about efficient engines that's important safety and product solutions it is across the board the sustainability play, potentially. and you hear similar things from the likes of semem -- siemens. >> jon fortt thanks very much, have a great rest of the year. take the rest of the year off. no more working lunches. rahel? >> tyler, thank you. up next the safety trade

survival guide with ongoing market volatility, investors are fleeing to safety trades hee some better positioned than otrs our trading nation team will discuss coming up next get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. hey businesses! for smarter trading decisions, you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like ones that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers

our best deals on every iphone, including up to $1000 off the epic iphone 13 pro. ♪“i got you babe” by etta james♪ ♪ get groceries, gifts, & more fast and easy. so last minute guests are the only thing you'll be waiting on. ♪ joy. fully. ♪

welcome back to "power lunch," everyone the safety trade has transformed in 2021. gold and silver are negative year-to-date after double-digit rallies in 2020, but newer havens like crypto and real estate keep climbing let's bring in your "trading nation" team today todd gordon and john of tocqueville asset management you're looking at the high-yield space. tell us why. >> it's not often we think of the high yield bond market as the safety place but credit is not an issue right now. the consumer in corporate america by and large are quite healthy. it's longer-duration bonds with rising interest rates and inflation as the risk because you're just not compensated for going that far out on the yield curve. we like short-duration, a high-yield bond for my group in particular, and with shyg, you're getting near 5% yield

so we think that's compelling in today's environment. >> what's your take on the safety trade >> i think we are prematurely calling that inflation's here to stay we're going to have to live with the variant. i think supply chain constraints ease and companies are going to have to fill up pent-up demand next year. this is where we failed back in 2005 we haven't been above that so we're cautious putting clients into fixed income here as really yields continue to be negative don't forget a lot of the high-yield corporate bond prices are up 20% during the pandemic like hyg so what we're doing is we're launching a third portfolio that uses some options strategies, puts to hedge the downside risk, finance that with an upside call it >> allows investors to participate in the market upside

but with some guardrails in case of volatility. and disclosure, this is a complex strategy, it should be only done by professionals, but it's a way to make up for lack of yield in the fixed income market >> i just want to be clear, todd, when you think inflation is here to stay at these levels, or do you still think it's going to cool off a bit? >> i think it's going to cool off. the acceptance that inflation is here to stay at increasing levels i think is premature to call that. i do think -- there's a lot of metric to say inflation is not broken above highs thawed be concerning i do think supply chain constraints ease up, and we will be back to full production in the next two years >> here's hoping we'll leave it there todd and john, thank you and for more "trading nation" head to our website or follow us on twitter @tradingnation. and still the virtual world becoming a reality this year tech firms betting on the metaverse. facebook even changed its name so what's in store for the year

ahead? we'll take a look come coming up next and now the latest from tradingnation.cnbc.com and a word from our sponsor. overbought and oversold indicators are generally used differently depending on whether the stock is range-bound or trending look to buy a range-bound market when an oscillator such as the rsi falls into oversold territory and then moves back above it look to sell a range-bound market when the oscillator rises into overbought territory, and then drops below it. i'lem e bohl, and schwab is the better place for traders

♪♪ ♪♪

♪♪ ♪ ♪ ♪ 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.

the metaverse arrived in 2021, but many of us are still not quite ready for it, and maybe some of us don't even know what it is i don't even have a vr headset so what do we need to know about the metaverse heading into 2022? let's bring in the very meta julia boorstin >> it's okay that you don't have a vr headset yet, tyler, because next year there is some new technology that's coming, and it can help bring you as a consumer and businesses further into the virtual world of the metaverse there are next headsets coming first from apple and also facebook is working on a higher-end device that will mix virtual elements along with the real world so more of a mixed reality device then niantic is behind "pokemon

go." second we're expecting more interoperability that's the ability to bring your avatar and your virtual goods from one platform to another this is my avatar we built for "ready player me." that is one i could bring into multiple different games and then there is the third piece of this, which is augmented reality. and it's coming to your phone without special hardware you'll be able to do live hologram video calls they use volumetric videocalls i have to say it did feel like i was in the room. take a listen. >> the question we have is, is the metaverse going to be fake people or is it going to be real people we think it'll be real people. we think volumeetric video is the solution to authenticity in

the metaverse. >> what that technology is going to be really useful for is, say, watching live concerts orother live events from your home you'll pick up your phone and it'll look like you are there. >> was he real or an avatar? >> so, he was real, but i was looking at him through the phone, and it looked like he was in the room. but he was not actually in the room with me >> all right julia, have a good weekend if you're starting your holiday now, everybody else, thanks for watching "power lunch. >> "closing bell" starts right now. ♪ thank you, rahel and tyler and welcome to "closing bell." i'm sara eisen the major averages on track here for a second straight day of gains. we'll see whether they can hold in this final hour of trade. and i'm mike santoli in for wilfred frost. let's look at what's driving the action today consumer confidence data out this morning showed an improvement from november's reading on the covid front, pfizer getting