outside of las vegas to do final end of line production of these vehicles this year i wouldn't anticipate we will see too many of them on roads. certainly next year is when we really hope to be ramping this up and scaling out into communities. >> fantastic keep us posted dave. talk to you again soon dave ferguson is nuro's president and cofounder. that does it for "the exchange." tyler mathisen picks things up right now. ♪ kelly, thank you very much, and welcome, everybody, to "power lunch." i'm tyler mathisen here's what's ahead. inflation surging, prices rising at their fastest rate in 40 years. our market guest says bet on the consumer no matter what. and a bitcoin banking bet. silvergate shares falling along with crypto prices but is the volatility creating opportunities for investors like

you? we will talk to an analyst who says yes and power potential a. massive east coast wind farm is coming we will look at the stocks that could benefit from this clean energy investment. kelly. >> tyler, thank you very much. hi, everybody. stocks are off their highs the dow now negative after being up 200 earlier on. the s&p hanging on to a gain of six. the nasdaq up 40 points. names like microsoft, salesforce, and alphabet, mooed moest gains of about 1%. and stocks tied to economic growth are getting a lift, like mosaic and free pport mcmoran biogen's stocks are down 6.6% on tuesday. twe begin this hour with inflation, which rose 7% in december from just aee ago

that was the fastest pace since 1982, 40 years ago price for autos and durable goods driving much of the cars used car and truck prices up 37% in december from one year prior. shelter costs up 4%. is this the peak or can prices run hotter or stay where they are what does that mean for the bond market and the fed michael schumacher is head of strategy at wells fargo. joined by rick santelli. welcome, gentlemen michael, can the fed arrest inflation without tanking the economy? >> very difficult to do, tyler the head waited quite a long time to tighten and now we have got inflation in services, goods, commodities, all over the place. it is going to be a really really difficult act for the fed to pull off. >> what do you think, rick fed chair powell given wide acclaim for his response to the pandemic and to the crisis

there. he did what i guess you would say he had to do in this case, how far behind the curve do you think he is, if you think he is, and can he thread that needle and bring inflation down without bringing the economy down >> i think he's behind the curve from the standpoint that they overstayed with respect to the help they gave us to get over the quid hump when it hit originally in march of 2020. but i think it's very tough to put all the blame on him but because i think the legislative part of the government also was trying to push a lot of stimulus into the economy. think of some of the bills they passed but in the end i agree wour guest. it is going to be very difficult. reminds me of 2018 he said the right things yesterday. but actions versus actual talk are two different things i think so even though there are so many parts of inflation that will reverse, i think car prices, lots of these things r going to be transitory in a

bigger time frame than powell and the fed thought in the beginning. but labor costs, housing -- home equivalent rent is what, 30% of cpi? that underestimates the real cost what have housing has done. it is a substitute but at this point, a cheap substitute those are all going to be very sticky matter of fact, i think person parts of the economy that have gone hot like housing and label costs are not going to be transitory like a tube of toothpaste you are not going to be able to push them back in but many will be inflation is going to keep going up if it just goes to zero, it doesn't mean prices go down. >> no. >> they stop going up. i think the chances of seeing this are very limited and they are never in my opinion get you back down to where we started. that's what the american middle class understands. they see these prices and know some of them are going to go down

but is fillet mignon going to go down to where it was no, but it might take back half of the big jump it had beige book is coming out there is optimism. many districts see a somewhat cooling but expected to reverse. they were very optimistic to some of the upside of the economy in the last weeks of 2021 >> all right, rick, we are going to take a quick break to get to the beige book headlines ylan mui joins us. what are we learning >> the federal reserve reported that economic active grew at a modest pace in december, a slight downgrade from its previous assessment of modest to moderate demand did remain elevated for workers, materials, inputs and optimism remained high but growth expectations cooled somewhat across the fed's districts. consumer spending they said was steady ahead of the rapid spike

in the omicron variant however there was a sudden pullback in leisure spending as workers and as residents pulled back on some travel. employment, they said, grew modestly the central bank said on the all-important question of prices there was solid growth, some districts did report a deceleration in price growth supply chain disruptions were still widely reported across the districts. but the fed said that transportation bottle necks appear to be stabilizing wage growth, that was up across a wide variety of industries and for both low and high-wage workers. nall all, guys the fed in this sort of summary of economic activity across the district paints a picture of an economy that is roughly in line with what jay powell described just yesterday as one that may no longer need so much help from the fed. the fed's beige book reporting that economic activity grew at modest pace in december. >> stocks continue to trade a little heavy the nasdaq trying to hang onto

now a 25-point gain. michael, what are your thoughts here >> it is interesting, with respect to the beige book i would focus on two things that are related. wage growth and labor supply just about every company out there is trying to hire people and can't find them or has to pay quite a bit. i would say whether it is hard core statistical evidence, or anecdot anecdotal, labor supply is going to be really tough we think that's the focal point for the upcoming fomc meeting. >> absolutely. looking at the ten-year, still 1.73% rick. >> yes and, listen, i foe this is a crazy comment to make, but i do think that the upside to yields is much smaller than what would seem logical considering some of the numbers like we have seen this morning but ultimately just because inflation is going to be hotter

than expected doesn't necessarily mean we have to see a 2%, 2.25%, 2.5% or 2.75 trz ten-year yoet note i think what is likely to happen is we will see moves in the yield curve that will affect how the fed is getting graded with respect to what path it ultimately takes but i would not be shocked if we still avoid 2% for a chunk of 2022. >> there is the two-year/ten-year spread which tirns to narrow. guys we will leave it there. our next guest says he is staying away from stocks whose valuations would be pressured by inflation and rising rates and sticking can secular growth names. jeremy, you had me until the secular growth names who do you like in that group that you wouldn't canner in a dangerous part of the market >> i like stable recurring my

growth revenue stories, just the way i invest in things companies like visa, mastercard, paypal, these names in the payment space -- i mean, inflation is going to create -- inflation is running because of demand being hot demand being hot means we are paying for more things visa mastercard and paypal are going to benefit from that n. that space i think there is a long tail of growth within those companies that's going to suggest that they were decimated last year as the buy now pay later started to come on board and people started to switch and move to other names that were growing faster i think that's going to go to be large lee a 2021 story i think 2022 is going to show these companies are resilient, growing very fast and are still going to be opportunistic. >> you like paypal, the towers and the data centers basically you are -- we often say investors pay up for growth when gdp growth is scarce. would you say that's kind of

what you are doing here? or you are just focusing on really solid companies that could do well in what could be a challenging year for the markets? >> much more the latter. my thought is you own companies that can grow in either scenario higher growth, higher gdp -- yes, some of the other companies may work a little faster but at the end of the day these companies with the secular growth profiles, they are going the grow -- the command for data or the demand for tower as we get more mobile and move about and we are not working from the office as much anymore, those things are going to grow regardless of what we talk about with regard to the economy in the short or medium turn that's where we would like to focus and essentially as attention gets taken away from these companies and they retrench, that's where the opportunity lies, i can own this thing for three or four years and make money on the other side of this even if the economy does different than when we expect going forward. >> i want to go back to the

visa, mastercard thing, i think they are good businesses but they suffered last year because they were not sexy and others were sexier is this going to be a year where those stocks do become sex ear or is it going to be a year where the other stocks lose some of that allure and therefore it helps put master and visa in a better light >> that is a phenomenal analogy there. i would say absolutely, these are relatively boring. right? at the end of the day they are to the dramatically going to accelerate or decelerate based on what is happening overall, i think yeah people kind of got bored of these names. that provides the opportunities. the ones that people start selling when they are chasing other things is where we see it as opportunistic one, you are paying cheaper multiples than you were in the past two, i think people are missing or concentrating on other elements of the story. a lot of visa and mastercard the

focused on cross-currency, cross-border, which is important, but people are swiping more and more and more and more when the u.s. economy has jobs and is growing these companies are going to be benefitting from it i think attention will be refocused on that plenty more this year. >> i now use my phone -- i am probably the last human being alive who found out you can use your phone to pay for things but it is running threw some payment plan, amex, visa or mast mastercard i don't use cash frankly much at all. jeremy, thanks. silvergate is one of those banks that issues crypto backed loans. the stock doubled over the past year we will talk to an analyst who says now, now, now is the time to buy. plus props at the ports and shipping rates, why offprice retailers could be the biggest

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it rallied when bitcoin rallied and has been falling amid bitcoin's drop they are upgrading the stock to outperform could it be an under the radar way to play the crypto craze let's bring in michael from kbw. why today? why outperform >> kelly, thank for having me on with silvergate, we covered the stock for a few years now. typically the lower asset values created great buying opportunities for the silvergate stock. as the bank, the deposits are side to crypto but around tied to the asset values themselves. we still think there is strong opportunities for the bank to grow revenues. secondly, it is one of the more asset sensitive banks we cover at kbw

they have a ton of cash on the balance sheet and a low cost deposit structure and they will benefit in a material way when short-term rates move higher late they are quarter potentially. we view that the sentiment and the rates is a great entry point for a high growth name. >> the stock is up 7% today, doubled over the past year explain to me, if they issue bitcoin-backed loans what happens to their balance sheet when the value of bitcoin drops by 40% >> that's a great question you know, i think one of the beautiful things of the crypto margin lending that they do relative to traditional equity marginin lines we might be familiar with is the crypto trading markets never close. they have an opportunity to monitor collateral in real time and utilize certain group of custody partners so they have access to the underlying collateral as well in many ways we would go as far as to say the risk factors around these bitcoin collateralized loans could be lower than traditional equity markets which have more

counter-party risk given the lack of real time nature it is an unpenetrated asset class and we think they have a long runway over the next couple of years. >> i can also understand to the extent crypto is underperforming maybe it is less attractive and trades in tandem with that i was do you rememberious about the stable coin issue. it is stuck in regulatory purgatory. what are your expectations there? how much would it help this company? >> stable coins are an upside opportunity for our thesis it only makes up a couple percent of our forward earnings forecast as you pointed out, there are regulatory hang-ups. we think that banks will have a role as stable coin issuers given their capitalized balance

sheets and high level of regulatory oversight silvergate was one of the first banks to start accepting crypto deposits we except them to have an active role as stable coin issuance and the. >> abouting sector merge in future quarters. we view it as a compelling team deposit opportunity that would be on top of our thesis today which is more centered around the lower sentiment and higher interest rates. >> finally michael, if you are correct that this is a bank that can do well when crypto is doing well and also do well when it is not so much but the rate environment being positive could help it. what could silvergate still do well if bitcoin has a rough year >> we often talked about silvergate as being -- it is the highest regulated crypto entity in the world in some cases right? because a lot of crypto companies or companies that are involved in crypto really don't have a final version of regulation where silvergate,

they are oversaw by the fed and the fdic, one of the those onerous regulatory environments any financial company can have when we talk about them doing well in a tult multitude of crypto environments, i think you have to understand where their growth is coming from. that's really institutional adoption. >> yeah. >> their customers are all institutions you know, they have 1300 customers today. on coinbase prime today there is almost 10,000 institutional customers. we think there is a runway of growth for silvergate that has a strong effect in the naysent crypto industry. >> you have a 225 price target, 75% upside michael, thank for your time today. >> thanks, kelly. ahead on this show a whole new ball game. apple making a bid to stream the mlb. what this means for the live sports arena plus, the shipping surge rates

cen hed an all time high i dember with no signs of relief those stories and more when "power lunch" continues here on cnbc you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back i'm rahel solomon.

here's your cnbc news group date at this hour the nation's budget deficit dropped sharply last month as tax revs grew and spending eased. $21 billion in december. deferred payments of employer payroll taxes were due, fuelling a 47% increase. the u.s. army raising the recruiting bonus to $50,000. it had been $40,000. it will be offered to highly skilled recruits who join for six years. members of the teachers union said they would only work remotely they didn't get that concession but did get an agreement for enhanced covid safeguards in schools. twin seven-month-old pandas made their debut today in a tokyo zoo. the zoo is essentially closed

because of covid restrictions. the mother and babies will be viewable for only two hours per day for the next three days. viewers won their tickets in a lottery and they will get one minute to view the pandas. before they made their debut the pandas were exposed to sounds sounding like people were around them so they wouldn't be traumatized. power movers jeffreys delivering mixed reports, reporting investment. >> bag record numbers but saying they face challenging market conditions the stock is sometimes seen as a bellwether for the rest of the financial earnings season. stocks down 10%. dish and directv are once again in talks dish shares are up 4%. finally, crocs higher, the top pick for twoon, called one of the most impositive consumer

growth stories for several years to come. crocs is up 8%. up next, a winds of change the department of interior announcing a massive east coast wind form. the alternate energy names down this year. should you buy the dip now which way esheinbldo t wd ow

we have 90 minutes left in the trading dame we want to get you caught up on the markets, stocks, bonds, commodities and the push for wind power. let's begin with bob bond on today's market movers. bob magically appears in the screen behind me. >> what a team we make here's the good news we are up. the bad news is, we may have pushed this rally almost as far as you could expect it to go let's look at the sectors. here's the good news we are still riding the sugar high for technology as powell was somewhat reassuring yesterday by saying they may not act aggressively in running off balance sheet. that was the big news yesterday. inflation was high but not above expectations today everybody is safer with tech even there it is starting to run out of steam here's the middle part of the whole business energy the banks. the industrials.

the cyclical stocks. they have had a great run this year they are flattening out a bit. and consumer staples, and health care, they haven't really done a lot so far this year so we need tech to kind of keep moving here. but the uncertainties are still very, very high. look at tech though. i want to pointed out how bifurcated it is arc innovation is down, zoom, twilio, roku, teledoc they are all down today zoom was $400 in august. look what it's doing right now they tried to buy zoom at the open today expecting it to bounce, and they just sold right into it. it is not like the volume is through the roof it's not like people were selling like crazy there is no buying interest at all. you get a pop at the open for eight minutes and then it drops lower because there are not enough buyers to sustain it. that's a problem for overall

market the market narrative is good for the earnings backdrop. it starts on friday. wells fargo, jp morgan, the economy and the consumer is still strong the earnings and margins are good or the moment and omicron is not derailing the recovery we don't know what the fed and inflation are. that's the big wild card we will get more on that and talk more about what's going to impact earnings beginning tomorrow remember, they start on friday guys back to you. >> bob, thank you very much. let's get a check on treasuries. even though we had the hot inflation number not seeing much react in the bond market the ten-year yield slightly lower than today but it did have a big spike, all the way to 1.8% last week, and then you see it right now at 1.72 maybe, maybe, maybe, investors are saying possibly inflation peaked in december i don't know wish rick santelli were here to tell us. maybe we will hear from him later today or tomorrow. oil closing today continuing to move higher sam darnoldly in the 80s now

i remember the '80s. that was when, pippa, inflation was this high the last time. big jump for natural gas today tell us about it, pippa. >> tyler, starting with oil, solidly in the 80s now up about 10% for the year. following a bullish inventory record, supplies ekleined by 4.6 million barrels last yooek, lowest levels since 2018 wti is up 1.7% at $82.61 that's the highest since the middle of november it's also now less than $3 away from the seven-year high it hit in october international benchmark brent crude has a gain of 1% the big move today is in natural gas, surging at 13.8% as temperatures drop and forecasts call for more frigid weather ahead. sanctuary wealth adding that many short sellers were caught offsides and are now being

forced to cover their position, which is exaggerating today's move up 30% for the year. >> a, thank you very much. the largest ever federal wind lease auction in the u.s. and the first under the biden administration just announced this morning diana olick has more on that and we will get some wind power plays from streesh fleischmann of wolf rmplg in just a moment diana, we begin with you. >> this auction, which will be held at the ends of february is for more than 480,000 acres off the coast of new york and new jersey south of long island. wind developers will be able toity bid on six leased areas, the most offered in a single auction. the leases have the potential to result in 5.6 to 7 giga watts of offshore wind energy, enough to power 2 million homes. the biden administration pledged last spring to generate 30 giga

watts of energy from offshore wind by 20 '03 the u.s. is behind europe and china. the area was reduced by just over 70% due to opposition from so-called ocean users, that is the commercial fishing industry, underserved communities and tribes as for bidders, some of the potential big names here, ge renewable energy, national grid, avon grid and aqua door. it is projected the growing offshore wind industry is worth $109 billion in revenue to businesses in the supply chain over the next decade back to you. >> fascinating stuff diana, thanks very much. how can investors take advantage of the investment in wind farms? joining us now is wolf research senior analyst steve fleischmann. my first question is going to be slightly facetious but i am curious, who owns the wind is this what gives the federal government the right to

auction off wind >> the federal government owns the -- has the receipts to the ocean waters so this is just the ability -- people have the ability to build and permit a wind turbine in these locations. >> how far -- >> and people will pay a lot for that. >> how far out to those rights go, steve, and where would the wind turbines go how far offshore >> some of them are tens of miles out. and they are huge turbines, and they are basically put foundation right to the bottom of the sea floor. >> uh-huh and there are transmission cables that bring the power on-shore. >> one would think that as the companies bid for these leases to put towers -- not towers -- turbines in the sea bed, that the companies that are doing the building are going to benefit. which ones do you think have the best chance to benefit should

these projects go through? >> so the biggest global player is a company called ohstadt, a danish company a very large company they have done some of the early projects here in the united states but there is a lot of competition already for offshore wind a. lot of the big oil companies, for example, they want to diversify into cleaner energy and they obviously know how to do things in the -- >> in the ocean. >> as they drill for oil in the oceans, they know how to -- and projects are very large, and they are of the size where the big global oil companies have a lot of interest as well. and some of the utilities, too. >> i was going to ask you, what about the utilities? whether it is national grid or dominion, or whom ever >> the utilities typically will look to partner with others, because this is new for them so several have partnered with

orstadt or other global players. a lot of the utilities want to build the transmission lines that take the wind to the shore and obviously on-shore as well. >> what are the potential -- so they have this auction, they announce the auction what are the potential obstacles from, ironically, environmentalists who might oppose the idea of these installation this is the sea bed that might interfere with migratory patterns of birds or whales or whatever what are the obstacles that on-shore real estate interests might have that we don't want to be able to see these turbines from our high-rise on coney island or on pg long beach island in new jersey. >> it is the same him inby, not in my backyard stuff although, a lot of these are now oceanfront properties and the like that we are dealing with. people -- peep don't want to see them they don't want even the transmission lines coming near

their homes bringing the power on so you have some of that you have the fishing industry is very vocal on this and then a lot of the issues are just, this is the first time we are doing these projects and the first one is -- of scale is supposed to come on line in '23 and '24. >> forgive me for interrupting, steve, i want get this question in are these various interests who made oppose these wind farms, are they likely to tie up these projects in the courts for a long period of time? or prevail in getting them a stay of performance? >> they might tie them up a little bit but we think these projects are moving forward they obviously now have a lot of support from the biden administration. >> right. >> you know, they have made a big difference in moving forward a lot of the permitting and

citing we think they will move forward. they take a long time. they require a lot of construction process we are obviously in an inflationary environment for construction costs >> right. >> they require special ships to even bring the turbines in so it's a challenging process to really get them up and going. >> really quite amazing. steve fleischmann, thank you very much for your time today. we appreciate it. private equities, public sentiment. tbg is planning to go public, but are investors's an tights for alternative assets waning? tonight american agreed reveals fresh details about one of the most infamous corporate fraud secas of the 20th sentry we are talking about theranos. it is tonight on cnbc. don't miss it.

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recent trading in shares of its private equity peers may have been the impetus to finally take that step. will be at their performance from last year shares of blackstone doubling, kkr carlyle, airies, each rushing more than 70%. apollo technically the laggard but nearly doubling the s&p this year, a different story, alternative asset managers sold off in 2022 over concerns over how a rising interest rate environment will impact their fees how they generate revenue a. higher risk free rate puts rur on the manager of funds to deliver bigger highier premiums to their investors it cot make debate reifnessing more expensive but it could drive down valuations for future assets valuing opportunity sets for buyouts. i heard tpg has been emphasizing their growth and impacting

platforms as more insulated from the interest rate environment. we should get final pricing tonight, guides are toward the mird point of the range, that would imply a $1 billion offering and a valuation of above $9 billion. >> it's always fun to see a company like this -- you make a great point about the environment, will it remain hostile to these kinds of names or not leslie picker reportiing. after the break, the problems at the ports. surnging prices, slowing schedules, bad news for big retail erls. but it could be good news for some discounters we will explain why ones, and why, next.

sfli( well, we have been talking a lot today about inflation. no wonder. prices are not only rise forth goods, but the cost of getting those goods to you those prices also soaring. shipping rates hitting an annual time high in december. frank holland joins us now with more on what is causing that spike. frank? >> hey there tyler the port of lar and long beach, there are more than 100 points waiting to unload or intentionally slowing their transocean trip to avoid the log

jam. it is a major factor pushing shipping rates 33% higher year over year in december. rates will stay near this level throughout q1 and omicron tints to be a challenge. hundreds of longshoremen in l.a. and long beach are out with covid. the variant also pushing trucking rates to record levels. general trucking rates, 53% higher than 2019 levels. food trucking rates also 50% higher, really hitting margins and grocery and consumer goods businesses two of the biggest names in supply chains signaling over the last weeks they see elevated demand continuing. the largest container shipper up cbre in asia and the u.s and orders of tractor trailers

in december were 55% lower year over year meaning the trends of trucking companies and truckers themselves getting into business to capitalize on higher rates which then actually lowers those rates, that trend appears to be disrupted by the variant >> a lot of things that don't bode well there. the supply chain delays are prompting retailers like walmart and target to cancel orders. our next guest says that will give a boost to the offprice retailers. here is president rose founder of national and international consumer suppliers it is great to have you here welcome. >> thank you thank you for having me back. >> first of all, why would these retailers be cancelling orders. >> it is standard language in the purchase orders for the larger purchasers, everybody needs an out we have stain containers of smat trees arriving at walmart's door now in january it gives them an out with the

supplier, which translates to a phenomenal opportunity for the offprice segment. >> that says, do they want to sell a christmas tree in january. no, but what they are positioned for is packaways this done it on a smaller scale for years. they will take positions offseason, christmas trees in january. they've got the warehouse space, they've got the infrastructure, they've got the inventory controls they'll sit on it through september, october, and be ahead of the game. >> and good for them for being strategic. that's kind of what they do, s not that you're an analyst who covers these companies, but what about inflationary pressures will they be able to cope? i wonder about their profit margins. >> the inflationary pressures are getting to everybody we've got a staggering unrest global economy right now off-price retailers can ride it out better because of the situation we just talked about, kelly. how do you take advantage of the lack of inflation with a 50%

freight increase is buying stuff that just lands here now when you've got a hundred container ships just in southern california, you're talking about 2.5 million containers sitting on those ships that's all arriving now. that's all late. that should've been here for black friday and cyber monday. so it's a great opportunity for those retailers. and the handful you just mentioned, the street loves it you're talking about guys whose stock prices are triple for traditional brick and mortar retailers. >> it was even dollar tree that just abandoned the dollar price ceiling. what's the latest read out of china where the zero tolerance effort has been so difficult in the face of omicron. tell us what that portends for the next couple of months. >> retailers can't be monolithic you've got to have multiple sourcing approaches, whether it's far east asia the one thing that omicron and really this whole pandemic has really done for us is we've had to turn it around and really

look at home so, production never slowed down in china it was the supply chain in between. it was the ports, it was the lack of truckers and now with another variant we've got less people on the road, less truckers on the road. but the retailers got very creative in their ability to source and went a little bit more global than the traditional far east, didn't really have the issues with the goods coming it was that in-between of when they left the factory and when it hit the shelves >> in the end, brett, is covid and what it's done to china. they've got something like 14 large cities on lockdown i don't know what the economy is there 50 miles from beijing. but in the long run, is this good for the west and for the united states to the extent that we have a more diversified supply chain, perhaps a more native american supply chain >> absolutely, tyler and those that survive will strive it's actually a phenomenal opportunity and a great time to

be a consumer. i've joked for years, if you can treasure hunt and you don't need a specific item and you can go to a t.j.'s, marshals, dollar tree, you can go to more than one. you'll find what you need. you just may not find the exact brand or the exact item. but you'll find it >> the hunt is part of the fun, at least that's what my wife keeps telling me when she goes to homegoods all the time. and of course the stores have different merchandise. you don't get the same stuff at a homegoods in one locale as you might in another >> and you said it, tyler. your wife is spot on nobody talks about what you spent anymore. i come home and i say i bought a new jacket the first thing i say is what did i save nobody brags about what they spent. and you're absolutely right. no two homegoods, no two dollar trees, the reason why they're not so -- is because you go to each one >> you cost me some money there, but that's okay. >> thank your wife for shopping

at those stores. >> all righty. still to come, a new player could be joining the live sports game apple making a big bet for mlb streaming. julia boorstin is warming up in the bullpen, ladies and gentlemen. the lovely right-hander getting ready to come in, throw fastballs. give us the details, next. ♪ ♪ ♪ ♪ 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.

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well, a heavy hitter could be stepping up to the plate in

the sports streaming wars. apple, and it doesn't get any heavier than that, reportedly making a bid for major league baseball right let's bring in julia boorstin from the bullpen with more on this story hi, julia. >> reporter: well, tyler, cnbc's confirmed that apple is in talks with major league baseball about its regular season monday and wednesday games. now, the rights to these games are not exclusive. the games would also play on regional sports networks, but apple could use these local games to help keep its subscribers hooked on apple tv plus, its subscription service mlb ratings, particularly for these weekday games are just a fraction of the ratings for the nfl games that amazon has paid up for now, a source tells us that apple is also interested in other more valuable sports rights from the nfl. the nfl is looking for a new

buyer of its sunday ticket rights, which directv owns through the end of next season it's also looking for a partner for its media deal, including its digital properties and also a small schedule of games. and then, third, there are those mobile distribution rights to games which verizon owns through the end of this season potential buyers for all of those properties include apple, amazon, youtube, disney, espn, and the likes of draftkings. now, the nfl just announced that its regular season averaged over 17 million tv plus digital viewers. that's the nfl's highest regular season average since 2015. but netflix does continue to be uninterested in live sports. just today netflix announced a new documentary series with the pga. guys >> you know, it's an amazing thing that's going on here when we talk about money, i'm not saying that nbc universal or fox or disney or viacom don't have

deep pockets but they don't have deep pockets the way apple or amazon or google has, alphabet has deep pockets. so if they comein, boy, the value of those franchises is going to go up >> yeah, absolutely. i mean, it's been so interesting seeing what's happened with amazon as one of the players here now, you know, willing to pay serious amounts of money for sports rights, tyler but i also want to point out that there are other players digital sports companies such as fubo and dzan in talks to buy some more of these soccer rights up on the uk and eu. so i think there's really an opportunity in europe for some of those international rights. and that's what dzan is really going after right now whilst here in the u.s. we're seeing the tech giants trying to figure out what the most valuable way is to keep people locked into

their traditional services >> julia, thank you very much. we got a big interview with a man who knows something about sports, media rights former disney ceo michael eisner will be on coming up on the "closing bell." he'll talk about that and more kelly? >> he is one to talk to about all these issues thanks for watching "power lunch" today "closing bell" starts right now. ♪ thank you, kelly, and tyler. and for that promo welcome, everyone, to "closing bell." i'm sara eisen another up and down session here as investors try to make sense of today's big inflation report. the major averages are holding onto gains as we head into this final hour of trade. but off the highs. >> and i'm wilfred frost good afternoon to you. let's have a look at what is driving the action today the december consumer price index matched expectations, rising 7% year over year the biggest jump since 1982. meanwhile, the fed just released