or do they just want to trade on meme events? or crypto, right it is relying more on cryptocurrency trading for its business and the thinking is that may not be so sustainable. >> a rough ride for the investors in robinson. deirdre, thank you appreciate. appreciate it. thanks, everybody. thanks for watching "the exchange." i am out until 2022, except on the news tonight with shepard smith. "power lunch" starts right now thank you, brian welcome to "power lunch," i'm kourtney reagan. here is what's ahead going global, china, russia, irndia, well, mump of the focus in 2021 was on the u.s. markets, 2022 could be a year to look overseas for some big winners. we will tell you what is worth watching. a new competition. a european battery company is take aim at tesla, producing its first lithium ion cell battery it comes amid a rough month for

tesla shares. and an analyst who says trucking stocks should be in your portfolio in the year ahead. you might be surprised by some of the names hi, frank. >> i am frank holland joining courtney reagan. a mixed afternoon for the markets. the dow strike for a sixth straight positive day. the s&p tracking for its best year since 2013. the nasdaq 3% off of its year high nike the biggest gainer on the dow. walgreens and home depot rounding out the top three gainers. boeing, verizon, and salesforce are the biggest drags on the in index. bond reelds on the ten-year above 1.5%, likely to the nasdaq being in the red. wall street is looking to end the year on a high noted, the s&p returning more than 27% so far the dow up more than 19% looking ahead, investors say financials, health care and technology will be the big winners in 2022. that's according to the cnbc

quarterly stock report, which surveys strategists and portfolio managers the survey also found that financials, economic recovery, cyclical and mega cap tech are some of the most popular investments now. and our next guest mostly agrees jerry casse at that leany, president and chief investment officer with capital mark management he has a couple names he says could be big winners in the new year i know stock prost no, sir at this indication is always difficult, especially when we are living in an ongoing pandemic what are some of the themes you are watching next year that are hoping to mold your portfolio picks before we get to the picks speci specifically >> again, the interesting thing about this entire experience is it didn't just turn on and turn off. there have been waves of pandemics. we are on our third variant, right? the reaction in markets to each of these waves has been somewhat different. from our perspective, it's kind

of given us some clues on where we are going to go in 2022 biggest and most important thing is, we have had this experience now where rates would be super low forever, and you could discount the fastest growing companies at insane multiples. that seems to have -- that ship seems to have sailed and your point recently about the comparison between mastercard and fintech is a great example of that. we see this ebbing now into a more durable cyclical expansion for 2022 even if you don't see it walking in your office next week, don't -- don't be surprised if the market begins to focus on the things that will be more than well taken care of as the economy globally comes out of this and we are much less worried about another variant and its effects. >> so as we spoke in the intro, financials are the most popular idea for investments according to our survey going forward,

which seems to make sense if interest rates are finally going to move back up as the fed has at least hinted it's going to do of course the timing of which is still up for debate. but then technology is still popular, coming in at third. but if you have got rising rates and these valuations that are still quite high and stretched, does that make sense looking forward? >> yeah. so the way we look at technology is you really have to separate the companies that are self financing from those who aren't. so if you are a high multiple company, high multiple stock, and your business requires capital over time, you really need that stock valuation to stay high to attract the capital that you can redeploy in your business that's not true, for example, of an apple or a microsoft or some of the more established companies who are well into their growth and cash generative move those companies do well and

don't require a super high valuation. and you have seen this in this most recent selloff, right of the names that a lot of folks enjoyed and loved during the pandemic have not really bounced here while the apple asks the microsofts and the other more durable names have done quite well we see that trend expanding into 2022 so be very careful which type of tech name you own. >> jerry, frank holland here you are bullish on cyclicals you know you said it is not going to start on january 1st but i wanted to ask you, you are bullish on ford, las vegas sands, cyclicals are in favor to a lot of people, but they are sensitive to inflation and supply chain issues. contrary to believe, they haven't been resolved. how will cyclicals dealing with this increased cost? do they have pricing power even though stimulus is winding down. >> the pricing power, again, for

cyclical goods if you haven't been out to buy a car for the last year and a half, is it going to bother you if you have to pay another 5% on sticker? if you haven't had a trip out to las vegas or any entertainment venue for the last couple of years -- again, you are already seeing the response the higher prices consumers are absorbing this it is more a pent up demand side and then rollover into gasoline, which we didn't mention. same thing you see with all-time high gasoline consumption numbers and relatively high gasoline prices. that tends to tell you how much run you probably still have in all of these cyclical names. >> jerry, you bring up a point about gasoline prices, energy prices in general. i want to give you an opportunity to give us some of your energy names. >> yeah, boy, if you want to take one area of the market that you are almost being forced to ignore, right, i don't want to know that the price of soil $75.

i don't want to know that drilling is down 40% in three years. i don't want to know that there is threats all over the world to oil and gas production those things are all true, and yet they are still reticence on the part of a lot of investors to go near the companies that quite frankly the names who we talk about here, eog, boy, let's see, fang -- >> you have got eog, energy transfer, and diamondback, yep. >> each of those names are going to throw over 20 to 25% free cash next year and be able to buy back stock and push their returns even higher because it's an accretive process most people haven't embraced that yet, haven't thought about the financial impact of running these higher oil prices through both the income statement and balance sheet. and that's really the recipe to see those kinds of names really flourish in the next year and

give investors on the same time a way of participating in rising inflationary forces. so it's a double effect on those names. and why -- there is a long list of them that you could use instead of just these three. >> got it. jerry, thank you for joining us, with some picks for 2022 happy new year. >> thank you 2021 was a strong year for the u.s. markets however it was not such a great year for the emerging markets. could that trend reverse in 2022 our seema mody is looking at some of the reasons investors are betting on emerging markets. >> frank, do you know what's interesting? had you listened to black rock or hedge fund bridge water in 2021 you would have thought china was the place to invest. alas, chinese tech stocks hit by regulatory concerns losing half of their value this year, on track for their worst year in history, really. there were right smots in

markets overseas, russia up 16%, india, the best performing emerging market, up 21% fueled by a rebound in the economy. that's why an investor mark moabia, says the key to investing in 2022 is get collective and stay away from broader emerging market etfs. >> it is very, very important for investors to look carefully at each country and examine which ones are going to be locked down continuously, and therefore have real problems, like china and then you look at india doing very well and taiwan, doing very well it is going to be a very interesting situation. it is very important not to buy the index, not to buy the emerging markets index but to look at individual countries >> moby is sticking with india for 2022 key events to watch there will be reformed by prime minister mody and two state elections frank? >> seema, let's turn our

attention to the cruiselines we heard this morning the cdc is investigating 86 crewships which had covid outbreaks on board >> frank, here's the story the cdc is monitoring over 0 ships after a small percentage ofpassengers tested positive across multiple lines, carnival, royal caribbean, and norwegian cruiseline stocks within the cruiselines are trading flat because, so far, this is different than when we saw back in 2020. those who tested positive so far are asymptomatic to mild symptoms the crew and nearly all passengers are fully vaccinated. the sailings are continuing. what could emerge from this is shortened sailings because southern ports have denied access to certain ships. with that, travel agents telling me we could see more cancellations. this has pushed feedback from the likes of senator blummen that will, saying cruise lines

should dock their ships calling them petrie dishes we could see a response from health officials. >> just when it looked like that industry was getting back on its feet. coming up here on "power lunch," the complicated outlook for the cannabis industry in 2022 stocks falling hard this year. can they rebound next year we will talk to the ceo of green thumb industries. plus, the transportation sector, up about 30% this year a top analyst gives us his under the radar trucking plays for the month ahead. as we head to break, some of the stocks hitting 52-week highs in today's session they include applied materials, auto zone, and ch robinson worldwide. stay with us

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all right. welcome back to "power lunch." it has been a very tough year for cannabis stocks, major names all down double digits on the year among the factors at play, dulling kpichlt, the glacial pace of regulation at the federal level and at the state level. will' 22 be a much different year than 2021 joining us, ben kobeler.

happy holidays thanks for being here. >> hi, frank happy holidays >> according to headset, the u.s. legal cannabis industry is going grow to $31 billion, 21% growth, a high growth industry 18 states allowing for recreational only sales, the fastest growing part of the cannabis market. what would federal legislation mean to your market, overall sales and the industry >> federal legalization would be a major change we don't see that coming very soon what is actually happening on ground with all the stats you just said is a major bull market the consumer category of cannabis is $25 billion of legal sales this year. like you said, 31 or something like that. we see it zooming out three to five years going to $75 billion. that's a monstrous opportunity for companies like green thumb and others in the u.s. regardless of u.s. federal policy. >> let's talk about u.s. companies. you are called multistate

operators, canadian companies are called canadian lps. one thing we don't talk about is your company, msos are the only ones with the right to sell in the u.s. canadian lps can only sell up north. when you generate so much more revenue than the canadian companies and have access to the biggest market in the world, why do investors favor the canadian companies more and why are they down on cannabis sntocks in general because, as we just talked about, it is a high growth industry >> the u.s. operators are on the inside of a very large moat because it is fairly illegal in the cannabis industry. where the stocks go in the short-term and what happens is more like a short-term voting machine and long term weighing machine. and the opportunity is here right now for u.s. operators because the thesis remains the

same, this is prohibition 2.0. we can build this company here in the u.s. because state policy, like you mention s a tidal wave step back and look at 2021 states like new york, new jersey, connecticut and virginia all legalized. that means the governor signed the bill the market hasn't turned on. that's approximately 40 million american we see a $5 billion to $10 billion market coming soon to the u.s. >> new york city alone expected to be a $5 billion market on its own. i have to ask you about supply chain issues over the last year, december to december, cannabis prices according to benchmarks, down 15%. cannabis, like a lot of other industries facing supply chain issues but you don't have the same pricing power. how do you overcome that explain that narrative to investors in 2022, that you are going to have more sales, but your prices are going to go down >> yeah.

everything in u.s. cannabis is a state-to-state game. what is happening in each state. by price, by-product and things like that. supply chain issues are happening to everybody we are investing hundreds of millions to build facilities we are seeing that sort of thing. but the pricing power is led by -- we are offering unique experiences with things like dog walkers, dbos and -- it is 2024 and 2025 when we see a major market for cannabis. >> courtney, over to you. coming up on "power lunch," esg was the hot trade of 2021, but there still isn't a standard way to define it so what makes a company esg friendly first we are talking bras and self driving trucks. that could only happen in power

movers stay with us

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welcome back i'm re hall solomon. here's your cnbc news update at this hour. the russian president will speak

on the phone with president biden tomorrow at putin's request. today putin met with the leader of belarus, they agreed to hold joint military drills later in the year it is going the add to concerns that russia may invade ukraine after the meeting, putin and lukashenko are both longtime fans of the sport of hockey. they played for the same team together and won 18-7. putin scored seven of the 18 goals. north carolina state's football team is bringing a bowl trophy home without playing at all. hours before kickoff the holiday bowl was canceled due to covid problems for the other team. ucla that's one way to win. and the new york times scare tested a confetti drop planned for friday night new york is going ahead with its famous party but limiting the number of people who can attend. courtney, i think you also have to wear a mask, which of course is the safest thing to do, but

will certainly be a different experience i went once in college, actually, and froze my tail off. but i had a good time. >> i bet, i bet. it is maybe something i would do once but not this year. >> exactly. >> i was wondering if they were still going to hold it. time for power movers. we start with victoria's secret. the company reaffirming its guidance for the fourth quarter saying it is quote very pleased with ow the quarter is going so far, adding it did well over thanksgiving weekend and saw a rush just before christmas kick's sporting goods, american eagle, five below and tract for supply also big movers today on the other side, tu simple holdings down. they sent a driverless truck on the road it was a successful test run seems like positive news

the markets thought so too at first sending the stock. but now it is down. ev makers also being hit hard today rivian and lucid are part of the trend ask. chinese companies including neoand xpeng frank? we want to bring your attention to shares of biogen surging on report that samsung in negotiations to buy the drug maker in a deal world worth $42 billion. we have reached out to both companies. we will bring you updates as soon as we get them. still to come here on "power lunch," tesla. no company has been able to touch their ev cars or batteries? we will hear from the newest contender. we will also get a check on the market as the dow tries for a sixth straight ssi oesonf gains. "power lunch" will be right back want it all. you have to deal with higher expectations

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with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. 90 minutes left in the trading day. we want to get you caught up on the markets, stocks, bonds, and commodities. competition for tesla. let's start with bob pisani as the dow aims for a sixth session

winning streak bob? >> courtney, it's rigpe for the market to paws look at the s&p 500. we have had an extraordinary five-day run from the bottom, we are up 5% in six or serve days. that's lot to move we sort of pulled forward the santa claus rally. we may have even pulled forward some of the gains in the early part of january. we dent know but it is good for the market to paws here. we are been overbought we are slowly working off the overbought conditions. there is nothing wrong going on here we have just moved a lot in a short period of time a couple things to watch one is the big movers tends to be the defensive names those are dominating the new high lists proctor and gamble, united health, mcdonald's, these are

classic defensive names, where you go when you are not sure what you should be trading on an active level but i see reasons to be optimistic because i see industrials that are cyclical stocks that precede the economy six months or so down the road hitting new highs, particularly the railroad stocks. csx and union bask have hit new highs. dover and illinois tool works work all over the world. when those stocks hit new highs th that's an indication people are still believing in the global growth story the concerns about shutdowns in 2022 are abating, otherwise these stocks wouldn't be at these highs: at the same time, tech stocks are pausing a little look at the semiconductor

industry amd, nvidia, up 40% on the year. micron is up here. they are a memory chip maker samsung overnight announced problems with a plant in china they are talking about a temporary pause. no one is sure what it means but there are lockdowns occurring there. understandably, there may be some supply disruptions. we don't know if that's what they are saying. micron might be a beneficiary of that you see here, guys, the important thing is the whole 2022 story depends on the idea there is not going to be a global shutdown of sorts if there is, that could affect supply chain issues, affect the fed. you get the point here a lot is riding on no global shutdown for 2022. >> thanks, bob a broad look across the market now let's move to the bond market rick santelli is watching the action closely and watching a key level on the ten-year yield. hi, rick. >> hi, kourtney. you know, considering that we are right up towards the end of

the year, there was important data out today the trade balance and deficit, one of the largest on record at minus $97.8 billion. we see retail inventories for november up 2% month over month. that is a huge jump. and look at intraday of ten-year you can see right after 8:00 eastern coming into our time zone, it jumped a bit. then when the negative news came on the seven-year auction, it jumped again at 1:00 eastern we have had $169 billion in supply, and none of it went particularly well. today's seven-year note auction tailed over two basis points if you open that ten-year chart up to one week you can see that 1.50 level we popped right through it today, aggressively, caught many offsides if you open the chart up, we are on pace for a five-week high yield close going back to november 24th. that was the other catalyst other than data? it was european rates. consider this as you look at the

chart. that's eight session of boom trading. ten-year, european, maturity it has moved from minus .4 minus 40 basis points, less than half of one percent negative to minus .18. that's a 55% jump in eight sessions and a good reason never to use percentages on interest rates. courtney, back to you. >> that is a good point, rick. of course, percentages sometimes distort things. oil closing the day up about 50 cents but wrapping up a really good year, especially compared to solar stocks pippa stevens has the story. >> it has been a tale of two energy sectors this year traditional oil and gas stocks have surged and are on track for the best year going facebook 1989, following a nearly 60% jump in oil prices but solar and renewable energy stocks have slumped. this is a total reversal from 2020 when the energy sector posted its worst year ever and

the invesco solar fund had a 233% gain. at the start of the year expectations for the two sectors were completely different. oil and gas stocks were left for dead and we didn't know when oil demand would recover meantime, investors are optimistic around renewable energy stocks following biden's inauguration looking ahead, firms say there is upside for each group buy investors need to be selective analysts favor traditional energy stocks. while names like sun run and array technologies are top picks across solar tesla has a new kpet for in europe north volt announced it produced a lithium ion battery in sweden, the first one for a european battery maker. joining us, jed dosh himmer. what does it mean for tesla if

you now have a european competitor that's producing a lithium ion battery? >> hey, happy early new year to you, kourtney. i am not sure i see it as a competitor i think it's -- i think there is probably more of a collaborator, if you will. and if we look at -- context is really important here. if we are looking at 3 million battery electric vehicles going to something north of 30 million over the election seven, eight years here, you are going to need a lot of batteries. tesla said they are going to buy as much capacity as they can so i think, if anything, this data point just show where is the industry is going to from internal combustible to electric >> hmm tesla is certainly always a battleground stock, one that we debate a lot on this network elon musk just had to sell a bunch of shares. you know, it was part of his plan to do so, so not a surprise

perhaps for investors. but we also look at cathie wood and arc's positions. what is your advice for investors going into the next year and how closely should investors in tesla follow moves by elon musk and cathie wood of arc invest >> i learned early on with respect to tesla that following everything that elon says is really tiring. you know, we tend to look on -- get the updates on a quarterly basis. we will review our annual, you know, 12-month price target. i have a buy rating on the stock. i was one of the first to have that positioning in 2018 and i think that the trend for electric vehicles is still in the relatively early stages. so i think it's -- it is too early. now, that doesn't mean there won't be volatility. there is going to be

opportunities to buy on pullbacks. that's kind of our positioning is to add to positions unless we see a major change in the overall economic situation in other words f we go from a -- what is a bull market into a bear market, and then relative value probably needs to be thought through. but for this current market, i continue to see more upside than downside in tesla. >> frank holland here lithium demands forecast to grow by 600% between now and 2030 that will lead to a spike in prices k. a battery maker like this stay competitive? there enough demand for everybody across the board when you have to think the battery prices are going to go up, but tesla can offset it boo

building it into the car can a straight up automaker use pricing power? >> i don't have a straight up answer as applied to this company. for most other suppliers of materials, long term has not been the greatest alpha generation it tends to be at the product level in terms of how you are transforming that material into a product. and i wouldn't see anything different here but getting the timing right is really important i think when we look at the number of oems that announced plans, the number of cars that are looking to shift over and ramp, i would agree with benchmark in terms of the -- maybe not the very details, but, certainly, the magnitude of increase that's needed and that is going to put that whole supply chain in a period of tightness for a decent amount

of time. >> you have a buy rating on tesla, that you were one of the first to do so in 2018 you spoke a little bit about the landscape for batteries in general. what about evs, electric cars? names like rivian getting attention. stock pickers on cnbc are looking at ford as a potential beneficiary. what about the other ev makers, non-tesla? >> i have a slightly different opinion just based on my experience i was a senior executive at a fortune 500. i have been on the other side for a bit. i think what the major oems is going to struggle with is that of culture now, some of the really early start-ups that are just kinds of -- you know, the first time i met elon was in 2009, and tesla back in the 2000s and 2011, they went through a lot of growing pains to get to where they are at now, which is shipping still a million or so vehicles in terms of expectations.

so i think there is a long way to go in terms of both at the newcomers that are just starting to ramp. i think there is a lot of potential there. i think there is going to be some overhang with the traditional oems some of them may make it through. i think ford is one of the ones that's showing a bit of aggression in terms of ingenuity. so we will see >> got it. thank you, jed, this is a space we are going to be watching closely and following closely as well coming up, two of the hottest investment topics of 2021, bitcoin and esg, despite the recent slide, bitcoin is still up more than 60% this year what will we be saying at this time next year and esg, if it means is he many different things, does it have any meaning at all we will try to define the unfibl at cinup next on "power lunch.

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2% said bitcoin prices will be under 40,000. right now, trading around $47,000 down 18% over the last month. however, still up a lot this year, gaining more than 60%, about double the s&p >> thank you, frank. one of the hottest trades this year, esg. hundreds of billions of dollars pouring into esg funds through the ends of november but investors lack a standard way to measure the actual impact kristina partsinevelos is here with a closer look >> instead of measuring the risks incorporate ragss pose to the world like carbon emissions or poor treatment of workers esg

measures the company and its bottom line. they have to sift through hundreds of variableless they crunch the numbers and come up with a single esg rating, i asked why the scores aren't consistent >> the metrics and the indicators that companies have to report are changing standards take a while to emerge there needs to be some kind of agreement about what the right metric is. >> het tricks vary take meta, the efficient of facebook it is rates a laggard right now. a b rating but this company over here gives it a 65. same story for boeing. that's not really comparing apples to apples look at the scores all across the board. the scores vary so much, do they actually give investors a sense what have the company is going for the environment, social justice and corporate governance >> i would be skeptical that esg

investing as a category is going to move the needle. >> the disconnect between accelerating esg activity and confidence in the result could serve as a wakeup call for companies and investors alike. >> thank you fascinating. so much more to dig into, but i have got to toss it back over to frank. >> thanks, court checking the dow industrials right now, up slightly, trying to extend a six-session win streak the index up nearly 20% for the year pretty good year the dow transports are up more than 30% this year, despite a host of challenges can they keep on trucking in 2022 at nt "weluh. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds.

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making it happen. and at genesys, we're proud to help them help you everyday. all right. welcome back to "power lunch." it has really ban strong year for the dow transports the index up over 30%. avis up 452% old dominion gaining 38% and matson is up 55% our next guest says other names will take the lead in the new year jason cowen covers transports.

happy holidays thanks for being here. >> happy holidays to you as well. >> we were just talking about the performance of the dow transports over the last year. i think everybody on wall street wants to know about 2022 what is your outlook for supply chain in 2022? are we still going to see trucking and rail rates near historic levels? is there a setup for all of this to calm down and get back to, quote, unquote, normal >> obviously, the supply chain was challenged in 2021 it has gotten better of late i credit some of that to cooperation between carriers, ship, local and federal governments and logisticallicals that were creative a lot of it is seasonality going into january, i think we are going to get back to more congestion against we have an early lunar new year. i think shippers will start shipping ahead of the spring

season i think it is going to lead to continued high prices for trucking and rail carriage. >> this year, lunar new year is on february 1st. generally there is a lot of push forward of goods ahead of that time when workers in asia take a break. i was going to ask you about that is this a moment when you see the port long beach obviously where 40% of all goods come in from asia does it get more backed up when, as you say, retailers and other companies may be pushing goods forward? >> well, we've cleaned up now. if you look at the numbers out of the port of l.a., we're down over 70% in late november. so clearly seasonality was their friend i think we're going to see these numbers get worse again in january. we're projecting the supply chain to remain congested for most of 2022, worst in the first half of the year, getting better in the second half of the year and we think there's a couple good ways to play it, it seems

>> all right let's get into it, you have some stock picks, your top transport picks for 2022 one of the them is the nation's biggest trucker. why are you going with that pick >> sure. so i think the trucking cycle's going to be -- i think we're going to have a demand cycle that keeps going forward shippers right now are trying to build back their inventory still. and i think we're even going to go to inventory levels above where we were before because shippers no longer want to have that just-in-time play they're really gearing up for just in case that's going to give us our demand going forward i think overall we're going to have a strong truck cycle. i like a couple other things as well big acquisition in july following it up with another smaller acquisition this fall. now they have about 15% of their business in less than truck work which comes at a much higher multiple for investors than the traditional truck load sector. we think there's some multiple expansion in their future as

long as they execute >> jason, we almost got to let you go, but i do want to talk to you a bit more about trucking, e-commerce more companies bring in inventory, and you see things staying elevated is there anything that could happen that will reduce these rates and make things easier on retailers and honestly the rest of us as we go to the super market and everything else >> i think we're going to have to see the economy slow down for that to happen and i don't think that's necessarily something we all want for example, if inflation kept running high and that really put a nail in the economy, then i think we could see some of the rates slow down, if you will, across the supply chain. but, otherwise, trucks, rails, even warehousing, i think all of those rates are going to go up in 2022. >> so either high inflation or high shipping costs, pick your poison jason seidl, we appreciate it. up next, more on the supply chain pain we'll talk to a furnituremaker

about the struggle and the costs it's facing. and tonight at 6:00 eastern, "crypto night in america," taking stock of cryptocurrencies in 2021 and looking ahead to where they're going in 2022. "power lunch" will be right back

well, welcome back supply chain inflation is surging, we just discussed it. container shipping costs are up 600% from a year ago trucking up 20%. and rail shipping costs are

nearly 30% higher. one company that's seeing inflation firsthand is phipps & company. the ceo joins us now we've heard from some retailers that some of their pain is getting better, still others say, well, it got better for a minute, and now it's not i guess if you can, just give us a snapshot of where things are from your perspective in the supply chain and your expectations for 2022. >> i think, you know, the shipping here, the shipping is a huge factor and the increasing co costs. it's also moving around raw materials to produce an end product that gets delivered, you know, to a consumer's doorstep and i don't really see it moving much faster for prices to drop it seems that everything seems to be going higher and the delays are really hurting the

industry in a major way. >> i am curious, though, how it is hurting the industry when you also have a consumer who is very strong, who has shown so far that they are willing to put up with at least some level of price increases, particularly if they're remodeling their name or they're buying new furniture because we never leave our houses anymore so has it actually hurt your business very much >> it has. i think the delays have hurt the business more than anything. people are expecting when they order a product, you know, to either a development, a project, or to their house, ordering something and paying for it online and not getting it for sometimes four, five, six months has caused a lot of issues in the industry we're supplying from 18 countries around the world, bringing products of all types of building materials, not just furniture, to mostly real estate developers and consumers, and it's really affecting the business >> so it looks like we just

showed a map of some of your factory locations, three of which are here in the united states so are you able to have a better handle over the time it takes to ship items if you are already located in some cases in the countries in which that work is being done or those items are being requested? >> well, nr the u.s. particularly is getting raw materials to be able to assemble a product, a lot of raw materials come from overseas those delays roll into the local manufacturing here domestically. and overseas production, you know, it's got its challenges and it's got its delays on the shipping, especially to the west coast, the west coast ports are having a very, very tough time processing containers and getting things to los angeles, particularly, or the southern california cities. it's been a big issue. >> so putting it all together, if you can, jake, share some numbers with us. give us some financials. how are things ultimately

shaking out for you? are you passing along the higher costs of the consumers and if so, are consumers bocking at this or they don't like the time line? how is it net/net impacting your business >> we are passing on some of the costs, very little, just mostly the logistics costs. the price of a product that comes out of a factory, we share with the consumer or the real estate developer, and we stick to that cost, and we kind of -- we work in an open-book policy with the shipping and logistics because we don't know if it's going to go up or down and if it goes down, we give it back to the consumer and if it increases, they have to pay the difference in order to get their product and it's a day-by-day thing. it changes every minute. >> absolutely. well, i think the least the in-consumers sort of know what's going on jake phipps, keep us updated, ceo of phipps & company. well, that is it for our show today as we watch the markets heading

into the final trading days of the year, it's been great to be here with you, frank, on "power lunch. that is going to be it for us here today with the dow up 108 points let's see if it can hang onto those gains into the close >> that's right. "closing bell" starts right now. ♪ welcome to the "closing bell," everyone. i'm wilfred frost of the new york stock exchange. another mixed session on wall street the dow could turn its sixth winning day in a row and could notch its first record close since early november >> welcome, everyone i'm sara eisen let's look at what is driving the action in this final hour of trade. treasury yields seeing a meaningful move higher today the 10-year yield now comfortably back above that 1.5% level. that is putting pressure on tech stocks chinese technology companies getting hit particularly hard. and shares of biogen rocketing higher on a report this afternoon it's in negotiations to be acquired by samsung of more tha