diverse than ever. nearly two-thirds of new players register -- so pre-covid, the industry was growing at 10%. through covid, height of covid, has grown 35%. we would anticipate that continuing to grow, maybe not at the 35% rate, but at least at the pre-covid rate if not more >> wow andy, thanks for joining us today to tell us what's been happening. we appreciate it andy mooney, ceo of fender does tyler play guitar "power lunch" starts right now >> not, i'm sorry to say i would love to do it. my son actually has a fender at home welcome to "power lunch. i'm tyler mathisen kelly will join us in a minute a busy hour. fast and furious the ten-year yield crossing le levels not seen since omicron

emerged, creating a new dynamic in the bond market new potential winners for your portfolio, or losers celestial's ceo. enemy number one is inflation. the company hiking prices again to off set costs, putting a price tag on how much of a hit it is taking and a working lunch with the ceo of drift. the software company recently reached unicorn status as it works to reinvent the digital store front. that's drift, kelly. not dreft. >> thanks very much. here's how the second day of trading in 2022 is shaping up. we have some big themes emerging in a short period of time. intraday records to the dow and s&p before the s&p turned lower, the nasdaq way down. down more than 300 points now or 2% hurt by the rise in bond yields that tyler just mentioned. those rising yield rs helping the bank stocks, so bank of america, wells fargo, goldman and jpmorgan all higher. wells is up 10% in two days and

economic recovery plays, the energy names up 6.5% in two days occi, halliburton up >> with bond yields driving much of the market action, are easy stock market gains coming to an end? yes, as david trainer, ceo of new constructs, and also with us to talk about the bond market is jim karen from morgan stanley investment management. good to have you with us jim, let me begin with you it looks like a dangerous place. bonds are up today that's the yields that are up. the prices are going down. >> thanks for having me. there's a couple of things going on we have to understand policy and technicals have been a key driver of the markets in the fourth quarter and for a lot of last year. so last year, what we saw was we

had the omicron variant that was rising we had supply technicals which were really, really positive for the bond market in that there was a low net issuance and also we had corporate pensions becoming fully funded and buying long duration assets and that kept yields really low as we start this year, we see a lot of that starting to unravel. the first thing i can say is that a lot of the pension fund buying is probably starting to leave the marketplace at this point as we move away from december 31st and into the new year the market is starting to price the end of the omicron variant surge. i know we're in the end of it now with the markets forward looking. the other is that net supply, probably wone of the most important things, net supply of u.s. treasuries in 2022 is going to be over two and a half times the amount of treasury supply, net treasury supply in 2021. so the market's going to have a lot to digest going forward.

all at that time when qe is coming to an end, which we expect by the end of march, and without a lot of that support, that's going to create a very interesting dynamic >> you've nailed it there for me you've got all this supply coming on so to sell that supply, you're going to have to offer higher yields and your big e egsest buyer in the market is stepping away. >> correct that's one of the things we're going to have to contend with into 2022. we don't know what the treasury market's going to really act like when the biggest buyer starts to step away and iro ironically, this is going to come at a time when inflation is declining. so it's not all bad news there could be some support for the treasury market, but the bottom line though is with the fed stepping way and gdp growth expected to be good, that's probably going to at the margin, push bond yields higher. >> the stock market side of this

equation you say the easy money is leaving the market that is certainly something that jim would agree with you're not going to have qe2, 3, 4, 5 or whatever it is supporting the market in the way it has been. but one of the things you said in your note that stood out is this corporate earnings are more overstated than at any time in the last decade, which means there is more hrisk in stock thn most investors see how do they get overstated or understated? >> a lot of tricks in the accounting rulebooks and we've been studying them for years they're near all-time highs. you know, we saw the flip side of this during covid when earnings were understated. when they write everything down and clean their books off so when things look good again as they have in the last year or so, the earnings growth, comps, look as good as possible so as

to drive the stock up as much possible we've seen corporate america taking advantage of that trend squeezing as many cookies out of the accounting cookie jar as they can to make the earnings look as good as possible, to make the stocks look as good as possible and that's a risk that a lot of investors aren't aware of >> wlhen they run out of dough, they can't keep squeezing the cookies out of the jar you say that the most vulnerable stocks, no surprise here i suppose, are the ones that have been very fashionable, very high priced, meme stocks and so forth, and that 2022 may be a year where some of the laggard stocks, the less highly valued ones come to the floor correct? >> yes, i think this dove still tails with what jim is saying. we're seeing interest rates go up bonds more attractive relative to stock, but you don't have

this tail wind we've had for 20 years of interest rates going down making stocks more attractive we don't have the tailwind of as much stimulus. there's a little less capacity out there to buy stocks and when you don't kind of have a lot of easy money to throw money at everything, what do you do you become more discerning if you're becoming more disearning about what stocks you want to buy, you're going to be discerning about whether or not those companies make money so we think there's going to be a return to fundamentals so companies that are actually generating cash flow, trading at reasonable multiples or valuations, are going to become a lot more popular than they have been recently when we've seen so many of these companies like these ipos last year, they weren't making any money and everybody's just throwing money at them and all kinds of assets, crypto and nft, as it would never end. as we see that coming to an end, i think people are going to become more rational >> i wanted to get to a couple of names you think are

attractive shell and petra. microsoft, you think it could be over a $400 stock. >> cash flow is super strong the royal dutch calls are sort of our emblematic calls in terms of how much capital has been chasing fancy ev technologies to the degree we've seen these extreme valuations while overlooking some of these more traditional businesses trading extremely cheaply. royal dutch shell is trading as if it's profits will permanently decline by 70% petra is trading as if it's going to be out of business in ten years. when you look at the ia estimates in terms of how much fossil fuel is going to be consumed, it's expected to go down about 1%.

so these businesses are going to be around. >> finally, jim, on rates, a lot of people are just kind of psychologically watching the 1.7% level on the ten-year what do you think are the most important levels to watch as this trade plays out >> i think we're right at these levels there's been a lot of scars in the market anybody who sold these levels last year really didn't make any money. so it's going to be very difficult for many people psychologically to step in and sell but they have to realize that a lot of the technicals are starting to change the end of qe. the tapering process more net issuance coming into the marketplace. so you're going to see reluctant buyers come in at this point so if there's a push higher in yield, i think it can happen in the first quarter of the year. first half of the year i think around 2% in the ten-year treasuries contains things so even though we think the yields may rise higher at the margin, i don't think this is a, you know, this is a big bond

bear market by any means and i think we're really going to chop around for most of this year >> thank you both for your time. >> all right coming up, fake it till you make it how much of a role did silicon valley culture play in the thernos trial? the lessons learned. plus, manhattan's record real estate rebound. 30 billion in sales last year. far surpassing even the most bullish expectations we'll look at what's ahead in 2022 hey businesses! 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

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see if you can save by switching today. comcast business. powering possibilities. welcome back the verdict is in. elizabeth holmes found guilty of defrauding investors will anything change joining us now are bill cohen and marcus whitney it's great to have you both here bill, one thing that bothers me about this premise is does one make a trend >> no. one definitely does not make a trend. and but it is a very powerful signal and message, kelly, because it sends you know, it should be an important reminder for ceos across the country. ceos of startup company,

entrepreneurs, that they can't overstate their financial expectations in the hope of trying to lure investors to their companies at relatively high valuations. so it's incredibly important to be reminded of that. of course that's something they should already know. z >> it is, marcus in your experience, has it been difficult to do proper due diligence in healthcare companies? >> kelly, it's really important that we understand that in this case, the accounts in which elizabeth holmes was found guilty were really defrauding the later investors where she knew she didn't have the capabilities she claimed to have for early stage investors, you're often investing in founders that don't have everything fully baked that's why i have to agree with bill i don't think this creates a trend. silicon valley is at all-time highs in every category when it comes to the kind of capital that's flowing into these funds, the returns they're generate and they're going to write this off

as one bad egg who fell astray, but there's hundreds of other great founders out there to continue investing in. >> marcus, let me probe that more thernos and the founder were in silicon valley, but i suppose there's an argument that could be made that they weren't of silicon valley in other words, a lot of the money they raised was not from the traditional venture capital and equity companies out there though there were plenty who were invested in it. what is the long-term scar, if any, on silicon valley that comes out of this verdict? or what is the long-term lesson for silicon valley sn? >> the long-term lesson is definitely that we need to be aware that founders can't be taken at their word. the diligence is always a must do and we can never skip that step. it's our job as investors. we're managing other people's money. we have to be responsible for

our investors dollars and we have to make sure we're doing our diligence in these companies. beyond that, there is no real thing we need to be paying attention to because at the end of this day, this is one founder amongst thousands of early stage companies out there doing great work and i think silicon valley continues to march on. >> bill, on that note, is the health space more difficult for investors to probe a lot of the times we talk about silicon valley, we're talking about technology we're talking about vcs who are very well versed in that who can use or do channel check or talk to customers to figure out what use case is for cloud computing or something like that but in this case, how closely would they have had to get into those labs in order to understand or see for themselves the health technology that was happening? >> well, you know, they, kelly, they could have talked to customers like cvs and walgreens who had started buying and rolling out the machines, making

them available, and seeing whether they did what they said they were going to do. the problem is that of course people get caught up in the whirlwind of these incredible, charismatic leaders and all the publicity that comes along with it, putting her on the cover of a magazine and declaring her the next steve jobs is hard to resist and so investors get caught up in it. they don't have time to do the kind of due diligence you were just describing, although they should and of course, there are so many other people all those smart board members who were endorsing it and the venture capital firms. and it just becomes too much to resist we see it happening now with spacs over and over again. with tesla and other high flying, incredibly high priced and high valued companies that don't seem to have any ties to their actual financial performance and it just gets impossible to resist this is unfortunately one

example where it went wrong. one of many. >> i think bill has just hit a r real nail on the head, marcus. that goes to the board the board was a blue chip board with former ceos, very sophisticated individuals, who all seemed credulous here now in retro speck. i don't know what they could have known i've been on a corporate board but it would seem that for all of them to get snowed the way they got, you can give silicon valley writ large a pass here. i don't think you can give the board a pass >> unfortunately, when you sign up to be a board director, you are signing on for the liability that comes with governing and ensuring that the management team is being truthful and if you even smell that there's some dishonesty there, driving external audit and really ferreting out what the truth is i would have to agree with you i think this is just the reality of what happened there's upside to being a board director and there's obvious downside

i do think as we sort of unravel this story, there were those board directors who started to smell that something was happened, who decided to step off of the board when you look at everything that did play out but ultimately, as bill said, sometimes the upside is a little too great and people do turn a blind eye to some of the bad behavior >> marcus, thank you very much marcus and bill, we appreciate your time and insight. very interesting case. further ahead on the prograpro program, luxe redux. when "power lunch" returns who would have thunk 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,

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who would have thunk president biden is meeting right now with members of his covid-19 response team. a few minutes ago, he started the session with an appeal for people to get boosted and he is set to announce the administration is doubling its order of pfizer's antiviral pills to 20 million treatment courses. "wall street journal" says walmart and kroger are raising the price of binax now covid tests. they had been charged $14 a box.

that agreement has expired so they'll cost $20 at walmart and $24 at kroger. and virginia senator tim kaine is one of the many motorists who spent the night on i-95 this morning, he tweeted this photo from his car saying that he started his drive to the capitol at 1:00 in the afternoon yesterday. he also thanked a connecticut family returning from florida for handing out oranges in the middle of the night and just a few minutes ago, a spokesman said that he is still at least two hours away officials still trying to unsnarl that massive jam from yesterday's winter storm tyler? >> that is my home state kel kelly's, too no worse place to be >> i agree i'm from philly so i take i-95 all the time and i can't imagine. >> i cannot imagine. we wish those folks well and senator kaine, too

and googen heim downgrades pinterest to neutral the other social media names also getting dragged lower today as you see there snap, twitter, meta platforms and match. chinese tech stocks getting whalloped. pinduoduo. that's fun to say. and finally, jpmorgan downgrading foot locker. lowering its rating to underweight citing cost pressures and tougher competition. you can read more about the downgrade at cnbc.com/pro. still to come, with covid strains the supply chain, chinese authorities announcing the partial closure of a major port following an outbreak at a factory tied to nike, adidas and other major brands plus, how are companies doing with the growing supply

chain issues caused by covid the ceo of hain celestial weighs in next.

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stock facing aung inflation triple threat. let's begin with bob pisani who's looking at two trading indicators that are off to a good start this month. mr. pisani >> hello, tyler. i just want to bring you up to date on the market because very interesting movement going on just below the surface here. i call it a rerating of the market look what's strong reopening. chevron, financials like jpmorgan industrials like caterpillar all having a great day megacap tech is down, but not dramatic apple, microsoft, amd. salesforce i'm watching the shopifys, twilios. they're the ones getting hit the most the ones that don't make a lot of money like the shopifys of the world, they're the ones that get hit here if you look at the equal weight

s&p 500, rsp the symbol, it's doing very well. that means the broad market is advancing. that's very, very healthy right now. there's the white line the rsp. as for january, a lot of barometers out there people love their january barometers the santa claus rally is good today and it's normally good for a 1.4% increase and it's doing a lot better than that as of right now. there's also the first five-day indicator for the the rest of the year the january barometer in general. the one i really like is the tax loss selling ones. a lot of companies got hit really badly towards the end of the year and in typical fashion, you see these companies engage or witness tax loss selling in the month of december. that's a very interesting phenomena that's very important here and generally, the companies that are beaten up the most from january through the end of november and have tax loss selling in december tend to outperform in january. the list is pretty long, guys,

but it includes companies like las vegas sands, wynn. companies that were hit by the decline in china and a number of other names down by 20 to 40%. you can see more on trader talk. i provide a whole list of them back to you. >> we encourage everybody to check that out thank you. let's get a check on treasuries as bond yields continue to rise rising yields sounds good, but that means the price of the bonds, the value of the bonds going down treasuries posted their worst start to the year since 2009 yesterday and there you see right now, the two-year yield in the red at .76 five-year at 1.32. the ten-year note, 1.66 and the 30-year bond all at multimonth highs. conviction that the fed is going to raise rate hikes this year. that seems to be the main driver of the recent move let's move on to another big mover on the day and that is

oil, energy. opec plus saying today they'll stick to their planned increase in oil production. oil closing higher by more than 1% on the day and natural gas as you see there. it is down just a little be it about 2.5% on the day. now to a company that has a variety of headwinds, frankly, facing it. a triple threat of inflation, supply chain disruptions and potentially rising labor costs mark schiller is the president and ceo of hain celestial, a global organic food and natural products company how are you, welcome, first of all. how are you dealing with inflation and have you been able to get your arms around it pass on, take price hikes where you need to? >> thanks for having me on today. inflation is ecertainly hitting us across the board. packaging, ingredients, transportation the good news is we have a robust productivity machine.

we try to off set as much inflation with internal productivity and beyond that, we've been very surgical pricing to make sure that we are doing things that are not going to jeopardize people's interest in our brands, but that we're able to recoup as much of the inflation as possible >> an analyst note that i saw made reference to a risk that if a nationwide vaccine mandate takes effect for large businesses, it is tied up in the courts now i guess, that could pose a real problem for lots of companies. how hard would it hit yours? >> well, we certainly encouraging earn to get vaccinated that's the best solution all the way around if the mandate does go through, we're going to be required to test those that are not vaccine thated every week. that be create some disruptions within our manufacturing facilities as people have to get time away from work to get tested then there's the cost of

that as well i think relative to our peers in the industry though, we do less self-manufacturing than many of our competitors do so i don't think we'll be competitively disadvantaged there, but it creates some complexity. >> speaking of cost markets. familiar with some of your brands earth's best, celestial seasonings that's not really the point, be u as they get more expensive, do you kind of know with each product there's a threshold at which you start to lose consumers? >> first i would say the health and wellness consumer tends to be more affluent because healthy products have always costed more if you think about buying organic products, they tend to cost more than their counterpart that isn't organic so we tend to have a consumer that's less price sensitive and if you go back to previous recessions, health and wellness has outperformed the rest of the food industry because of that.

that said, we look brand by brand at our competitive price gaps and we try and make sure that we stay competitive and that we don't do anything to al alienate consumers so far, significant increases and we've seen little volume fall off >> that's what i was going to ask. i don't know if you can get any more granular than that. you have had significant price increases. no fall off in demand. would you say you're bumping up against the creel of what the customer can take or will we see price increases to come? >> we've taken about 6 to 8% increase in pricing over the last several quarters. we are taking more pricing in the upcoming quarters, but we are taking it on different segments of the brand we didn't take the first time. so we're trying not to do increases on top of increases, but there are parts of the business we did not take pricing

on initially either because we were not in a position to lead and we were waiting for the category leader to take it or because we were having service disruptions and that's not a good time to take pricing there will be more pricing, but in different places. >> two quick questions in closing. can you put a number on how much inflation is costing your business either it will cost it or has cost it? that's number one. and number two, are you finding that as a result of the pandemic and people becoming more health conscious, that that is figuring into their purchasing decisions and maybe helping your business? >> yeah, so on the first one, our inflation has been running about 8% or so but there's a lot of hidden costs that aren't captured in there such as when an ingredient doesn't show up or something from a supplier doesn't arrive and you've got to find a back up sort in supply, those things add cost but in general, it's been around

8% i do think health and wellness has done very well during the pandemic and will continue to. this is a time when people are worried about their health their physical health and mental health they're worried about preexisting conditions we've seen lots of consumers gravitate toward healthier eating and that tends to be a lifestyle change if you've decided you want to live healthier, you're worried about stress, we've got celestial seasonings tea with immunity health, that are perfect for times like these and so i do think we picked up millions of consumers along the way and i hope we'll keep them >> thank you so much for selling your story for us. kelly. manhattan real estate posting its biggest year ever in 2021 luxury and penthouses bringing in the most cash new york drawing some buyers back while florida remains serious competition. we will speak to the ceo of

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manhattan real estate

posting its best year ever inventory is low bidding war activity is high and not even the biggest real estate bulls saw that coming. robert frank has the numbers for us hi, robert happy new year >> hey, happy new year, tyler. real estate sales in manhattan hitting an all-time record of $30 billion last year. more than 16,000 contracts were signed also the highest ever. what started out as a buyer's market a year ago is now clearly more of a seller's market. apartments sold for an average of 98% of their asking price median sale prices jumping 11% in the fourth quarter alone. the average manhattan apartment now will cost you $1.59 million. so basically, we're back to pre-pandemic levels and prices a lot of these sells are being driven mainly by the top especially penthouses and those big three and four-bedroom units in new development now, inventory for new development falling by a third

the fastest decline in recent history. bidding wars hit their highest level since 2018 they were eight deals over $50 million. the most expensive, $157 million purchase of two floors at 220 central park south stocks are the big real estate brokerage firms have been more mixed. reality up about 20% all of last year, but compass, they're big in new york, they were down about half from their ipo back in april and the new kid on the block, even though they're more than 100 years old is douglas ellman guys, brokers telling me that based on what they're seeing in contract signings and discussions right now, this year is already starting out strong so so far, no sign that this pick up is going to let up anytime soon >> very interesting. robert, thank you. robert frank and still even higher, but low inventory is affecting markets

ak across the country that's what they blame for the slowdown they're seeing in florida and southern california and colorado howard, thanks for your time and welcome. >> thank you thanks for having me >> how much of a slowdown are you seeing in those markets where there's a supply shortage? >> we're not seeing much of a market much of a slowdown in the market i mean, i know you mentioned california i don't think that's slowed down at all a couple of the very hot markets like palm beach you see a little bit because there's no inventory, but as prices move up, that brings inventory into the market so i'm not really worry about that at this point >> one of the dynamics i'm interested to watch in new york city especially is the low levels of office return, but the strong residential demand we're still seeing sometimes, i wonder if manhattan will continue to move towards being a residential, almost a bedroom community. you know, you have all the

amenities, the attractions, people don't want to go into the office, but they want to live there. >> that's true people gravitate to new york city it's a fantastic city. we're very bullish on it we had a very big year in new york city. over a billion dollars a month for the whole year and so that's 12, 12.5, $13 billion in the city. i think a lot of it has to do with the general pick up prices were a little bit lower in the beginning they started to come up higher now. and i think that with the change in mayor, i think that's a very bullish sign for pretty much everyone in new york city. >> in what way >> well, you know, one of the big negatives still is crime homelessness violence on the streets. and i think that eric adams is the right guy to get into that and make sure we start reducing the rate of crime and i think he will be able to reduce it.

hopefully quick enough to keep everyone happy, but in any event, we'll be headed in the right direction. >> on the issue of interest rates, which are on the rise to start off the year, a lot of real estate investors are a little nervous about whether that could dent their returns this year. what would you tell them >> as it relates to residential real estate for buyers, when they see interest rates starting to go up, it's still low this is when they come into the market full force because they're afraid of where they will end up being if they wait too long and maybe not be able to purchase the home or apartment they're interested in. so i'm not worried about interest rates they're still very low if they go up a bit, that's not going to be a problem. >> we've got to go, but what would you say is the hottest market you're involved with right now? >> new york city for sure. new york city, palm beach, and miami. >> there you have it feel free to add >> some of the smaller markets

the hamptons, aspen, colorado is very strong. beverly hills is very strong there are a lot of markets out there. >> we'll see what 2022 has in store. thanks for your time today >> my pleasure plus, the invite is sent and the meeting is about to start. join our working lunch jon fortt will talk with the ceo of drift when "power lunch" returns.

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a lot of businesses are turning to technology to help them turn online visitors in customers. a new crop of software companies offering tools to help companies close the sale jon fortt has the ceo whose company recently reached unicorn status welcome back for another working lunch. >> well, david is the ceo of drift and it makes what's called sales acceleration software. a serial entrepreneur, he is working on his fifth start up. he comes from humble beginnings. his dad came to new york from puerto rico. his mom emigrated from ecuador and he was good with computers, but wasn't sure how to break into tech. he started out in sales.

a local convenience store supplier named sam took him under his wing teaching the ropes of customer relationships and eventually, sam pushed young david to get deeper into programs to help with serving the bodegas. >> you remember those troll dolls? you'd go in the bodega i would be thinking about those next trends and what was hot now and buying those things. then he taught me about, he forced me to get back into you know, into computer science because he was building his own warehouse management system on his own because he couldn't buy anything like that so he was programming that on his own and he got me to help him and to start to program that there was so many things learning by doing. how to treat people. how to treat customers how to order and predict trends. all this stuff he was teaching me and at the time, i didn't think he was teaching me

>> as a kid whose parents came from different culture, learned to read the room now that's what drift's software does helps sales team engage website visitors and convert them into paying customers by giving them data about what the potential customer is looking for. in vista equity took a majority take in the company now cancel is looking to expand the mission. >> for drift, we have started becoming the store, you know, the frond end, the beginning of the experience for our businesses and their buyers and their existing customers we are that virtual store, and that entirely new storefront now we need to go beyond the store front. that's what we're focused on in 2022 and focusing on that entire buyer experience not only through the initial sale and that initial

relationship, but how do we get into continuing to service those customers over time and make sure that that experience as an existing customer, as a new customer is wonderful just like the beginning of that buying experience >> as supply chains normalize in 2022, there's going to be more focus on demand and making the most of it companies like drift could have an interesting role to play in helping customers make the most of that and quite a customer lift for drift it's 50,000 long on the larger side it has snowflake, octus now and adobe >> as part of our virtual working lunch here, socially distanced working lunch, how does drift collect the data that then gets, i guess, analyzed and transferred over with the analysis to the company that then uses it for marketing

purposes and to turn a browser into a consumer? >> eah it's cloud-based software that's actually part of the way the website operates if you go to drift's site or to a site using drift, you will get kind of a chat bot that is asking you how they can help and also it's taking in data on how the customer is perusing the website. what are they interested in and looking at what are they searching for? it uses that as signal to enable a sales team to have a more targeted engagement. >> i'm trying to understand, would he be able to tell us today about buying trends and consumer trends or has the company evolved way beyond that? >> that stuff is when he was growing up, like in the bronx, he was helping the supplier of bo bodegas. as part of that role he was analyzing consumer trends. now drift is acting as a software tool that can be used across so many different retailers and merchants to help

the sales teams engage they're not so much looking at the customer's data for their own purposes it's helping the customer use that data to have better sales >> apart from the obvious sort of story of son of immigrants who goes on to form great companies and amass great wealth, it is this idea that careers are formed from successful accidents he had the good luck to connect with a guy who took him under his wing and show him simple things that he then applied. you always have to be open and unafraid of the accidental. >> yeah. his mom wanted him to be an accountant he initially didn't graduate from college in the schedule that he thought he was going to because he wasn't engaged. he didn't know what school to go to because he didn't come up in a community where people were

going to college he managed to make the most of those situations and those relationships to get to where he needed to. >> but he got his mba in business thank you very much, jon great to visit with you virtually. >> that was great. up next, a delta outbreak shutting down a major chinese port what it means r foa global struggling supply chain. we're back in a moment 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. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan

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chinese authorities announced the partial closure of the third largest port in the world after the outbreak of the delta variant. the first cases originated at a major garment company. what are the sources on the ground telling you >> my sources are telling me this is a total mess it's really far-reaching, unfortunately. this is all part of the zero tolerance measures implemented by the chinese government to curb covid here's what's going on you have container yards that are not allowing trucks to go in or out to go pick up containers. i spoke with shipo, a digital forwarder, freight forwarder, they provided us with an exclusive photo of their truck drivers waiting in line to pick up containers. it's pretty profound

maersk is talking to their clients and informing them about warehouses being shut down and not working. so this all in essence is slowing down the entire flow of trade. marine traffic has great data i want you guys to see it's showing you the port productivity out of this port. remember, a vessel at rest is not making money when you look at the amount of time, time is ticking up now in terms of processing of these vessels to get out of the port so this does show you that these partial closures are impacting the flow of trade. >> is it just this one port? are other areas affected by zero tolerance and shutdowns? >> unfortunately there are other areas. you have the yangtze river, which is the longest river in china. it's a vital artery, if you will, for the manufacturing

sector you have 200 ocean pilots, these are the men and women that steer the vessel, if you will. they're in quarantine. why? because two pilots tested positive for covid you have 200 men and women not working. you also have the pearl river delta, another waterway which is really key in terms of moving containers you have less folks working there because you have feeder vessels being pulled back so their men and women could get back and quarantine. >> companies are having to come with workarounds lori ann, appreciate it. >> thank you some of that backup at the port that she was describing looks like route 95 south of washington, d.c. >> can you believe that?

i've been on the stretch a million times. what's the problem >> paralysis of snowstorms in that area. >> it's six inches of snow or eight or -- i don't get it >> they had plenty of time to get ready for it it wasn't like it was a huge surprise our sympathies with those stuck down there >> i feel so bad i think we'll learn more >> kelly, we'll see you tomorrow thanks for watching "power lunch. "closing bell" right now thank you. welcome to "closing bell." i'm wilfred frost at the new york stock exchange. it's a tale of two markets the dow and s&p 500 setting record highs, the nasdaq sharply in the red >> welcome, i'm sara eisen let's look at what is driving the action in the final hour yields on the move again the ten-year note yield approaching 1.7% that's pressuring tech stocks with chips and chinese internet seeing the most pain covid cases exploding in america. the u.s. reporting a single da