mining and processing it is challenging and expensive. after a period of low prices between 2019 and 2020 producers scaled back. today new production is being announced but not fast enough. according to deutsche bank demand will double by 20 30u '03 but demand could quinn up theel. three mining companies hit record highs in november, are down since other raw materials essential for batteries including nickel and graphite are on the rise mining projects are capital intens intensive. >> that does it for "the exchange," everybody "power lunch" starts right now ♪ welcome, everybody, to "power lunch," i'm tyler mathisen, glad you could join us on this starting to get frigid

friday here's what's ahead. spending slump, retail sales slide in december by the most in ten months winners are getting tougher to find we will talk to a former industry insider, really still an insider who knows where to look for what to buy no pain, no pain peloton gets kicked out of the nasdaq 100 the resistance knob turned all the way to the right the bull case, and the bear case, for a stock that is now down 80% over the past year. from passive investing to esg to web-free, it's the evolution of investing. there are ways for you to profit we will tell you about that and more. let's look at stocks behind me we are well off session lows the dow hardest hit, down 355, it was down 450 an hour or so ago. bank stocks are dragging down the index. results from jp morgan and citi underwhelmed, the guidance

s&p down .4% jpm, down a little more than % the cfo warned of higher expenses and moderating wall street revenue that could cause returns to fall. citi reported a 26% deline in profits, their citi shares down 2% the positive news came from wells fargo. revenue topped expectations, the ceo says loan demand picked up in the back half of the year that gets you 2% gain in the shares nasdaq sharing the pressure today. what do the banks tell bus earnings yet to come our next guest says the path for banks and future profits are as strong as he has seen in years chris, welcome before we get to the banks, per se, let's talk about the broader market what do you think is happening in the market, broadly speaking, right now? >> i think we have seen a shift from price to revenue to price

to earnings. i think what's going on is it has been a productive shift towards cash flow and how much money banks can make versus other sectors. some of it may be given back in individual stocks today with technology rallying. but i think it is going to be dictated by the ten-year treasury, which has traded very well, still very strong, wants to push towards 2% if it does, there is a high correlation with the financials and the ten-year i think we are still in a good position here. as the fed tightens late they are year i think it is bullish for the revenues and particularly for estimates in 2023. >> if i am understanding you correctly, this transition from a focus on revenues to a focus on real earnings, real profits, would be unfavorable to high profit -- high revenue growth technology companies and would be favorable to the companies that have real profits, like banks? >> that's correct. and i think we have gone from this phase of zero interest

rates that favored technology companies and high growth stories and now we transition to banks and the banks are going to be better this next year and coming into folk news if you say the conditions are going to be better and you say as you look at 2022 and 2023 for banks, you haven't seen it this favorably inclined in years, why are they suffering today? is that i assume, then, just a temporary blip on your radar screen >> correct we have seen as good a start as i have seen in the last two weeks. it has been a great rally in 2022 i think you have profit taking ahead of the speight of earnings coming out tuesday through friday next week plus the rest of the mont. i think a lot of this is profit taking maneuver. i think the big picture is very much intact. i think as more management speak about their prospects for this year and particularly for higher interest rates and the deployment of cash -- remember, cash is so large given pamgd and

the impact on deposits that's a one-two punch for the banks that i think is only roeshl partially felt in the stock. >> what are they going to do about all that cash? interestingly, you point out that the level of cash they are carrying on their balance sheets are way up, 19% from 8% at the largest banks. what are they going to do with that cash? buy back shares? do m&a what >> for the most part it will be putting money to work for new loans. we think commercial loan demand picked up in the last quarter of 2021. >> right. >> it is going to be stronger this year. i think some securities purchases may happen because the yield curve is picked up and the nominal interest rate is better. as the fed tightens rates this year and next it is going to pull the whole curve up so the opportunity set for banks to invest in securities is a little bit better i still think the majority of what they are going to do is new loans. i think it will take time but it is there. >> let's get to some of the names that you like at today's levels and all of them will report earnings next week

they are mid-sized generally but generally names we have heard before. >> that's correct. names like pinnacle financial, pnfp first citizen's, they have a acquisition deal that just closed there is a lot of opportunities with those companies they also have 20% cash. we like zion's out in the west and we continue to favor cadence bank, a texas name which also went for a merger last year and has good prospects for the future. >> chris, we appreciate it see you soon. retail stocks are also coming under pressure today, macy's walmart, the dollar tree, just some of the names that are trading lower n. macy's case, by 4.5% this. comes after retail sales fell way more than expected in december higher prices, rising covid cases could have caused

consumers to cut back on spending our next guest says it is getting harder to find the winners. jerry store itch is the former ceo of toys "r" us jerry a disappointing number today? >> it is not a surprise. i talked about it on cnbc two weeks ago, to be prepared for low december numbers but you have to put this in perspective. the consume remains very, very strong when you look at it on a two-year trend which is the only way the look at stable numbers, the peak was in october when sales were up 22% over two years n. december, they were up 20%, that's still a lot for a two-year trends. the issue came down to one thing. we looked at the numbers in micro levels two weeks before christmas sales fell off sharply because of omicron. i would not generalize about consumers based on that there was a little pull forward in october as consumered by scared

by -- but that wasn't it the last two weeks before christmas people were not going out to the stores because of the virus scare. that is not a long term trend. there are sill winners and losers, companies with losing strategies before the pandemic are going to start to emerge again because their losing strategies are still losing. they are not going to get any better now. >> give examples of who you might be talking about >> look, department stores it's the perfect case there. has been a lot of talk whether they have turned around. some of the department store stocks have had huge, huge one-year gains they are not justified of all segments that reported today the biggest drop was department stores. they are the only one that wasn't up significantly. keep in mind, retail was up 20% in december versus two years ago. department stores were slightly

negative versus their december number from two years ago. that dead cat bounce we talked about two weeks ago looks like it is already over. >> bad news for the likes of macys and the rest of the complex there on the screen. macy's apparel business gets the second most tracking on searches after amazon they were trying to spin out, maybe. why all of a sudden does it look like what was working well early last year is now not looking so great? >> people kept comparing the numbers to last year so of course they looked good. but i told you consistently, don't believe that so -- and also some people started going out more, you know, after coronavirus was -- appeared to be ebbing, had to buy clothes to go to worked. couldn't wear the stuff from two years ago. so we saw an uptick. it is not a long term trend. it doesn't change consumer dinics young consumers don't want to

shop where their grand mothers shop target and walmart are knocking it out of the park, even in fashion. people are not going to department stores anymore. i wouldn't bet on that for a long-term trend. bed bath and beyond said look, our strategy is working. that's not why they were doing well they shifted to home goods during the pandemic, consumers did. now, if the strategy wasn't working before the pandemic, it won't work now on the flip side, the people who were working are going to work better who? walmart, target, costco, amazon, tjx,what a great company that is and i would look at the home bui builders, the home supply companies, the numbers today were excellent still by the way for the segment that includes people like home depot and lowe's those are going to continue to thrive dollar general had a tough year, i think they are going come back. >> what would you do with the sporting goods names

that feels like a secular pandemic winner. i am not sure what the trend was prepandemic. i don't recall. >>well, there is one great company in retail there, dick's, they are going to be fine. they reported great numbers consistently they will slow down a little bit because there is this return to work thing that's going to happen you can't stay -- you can't be in a kayak while you are in the office so it will pull back a little bit but over the long term they are the only ones left in that space that's substantial i still believe in nike. what a great company, what a great brand. they own intellectual problem, they control their distribution, they are going to do great, too. >> jerry, we will leave it there. we always appreciate it. jerry store itch on retile tail. coming up, the old, the new, and the revolutionary, different styles for a different market. we are talking passive investing, esg, and web 3. and later, the ceo of taylormade he has a unique view of the

supply chain, inflation, and the consumer we will find out what he sees, and also talk about the grth gf.ow proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. you can act quickly. ♪ ♪ ♪ 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.

new year, new start. and now comcast business is making it easy to get going with the ready. set. save. sale. get started with fast and reliable internet and voice for $64.99 a month with a 2-year price guarantee. it's easy... with flexible installation and backing from an expert team, 24/7. and for even more value, ask how to get up to a $500 prepaid card. get a great deal for your business with the ready. set. save. sale today. comcast business. powering possibilities. welcome back to "power lunch," everybody. there is no one size fits all investment strategy. there is the old, the new, and the revolutionary. we have three reports today on the old, there is black rock, the company known for its traditional investing style, surging past $10 trillion in

assets more anagement. in the new, esg, lots of fees and no performance history and the new, web 3 we have three reports, leslie picker, kick us off. >> i think you are calling me old. i won't take it personally at the end of the fourth quarter, black rock's assets under management surpassed $10 trillion for the first time ever the firm is already the largest asset manager in the world and no other firm has come close to that figure passive investing instruments represent the majority of aum and have been a clear tail win for the firm with etfs responsible for much of the $540 billion of net inflows black rock saw last year on the earnings call this morning, though, the first question analysts asked were centered around the sustainability of black rock's growth in 2022 in the face of higher interest rates and other

macro factors. the ceo pointed to the company's roots as a fixed income manager with bonds and etfs this year. the firm slightly missed on the top line, but beat on the bottom shares are down about 2.8% right now. >> leslie, $10 trillion is a huge number. we are about to talk esg but esg has been a core part of their strategy, hasn't it? >> it has been lately. they expect it to be more in the future they have $100 billion of esg assets that's a tail wind, as are bond etfs, increasingly, of course, important in a world where there is higher interest rates and folks are looking for fixed income you be institution. although some would say the etfs who hold the bond funds are similar to bonds so they expect the see that as a key driver as well. >> thanks, leslie. we are going to move now to kristina partsinevelos and the new esg investing and why doing

good is not always linked to doing well explain, please, kristina partsinevelos. >> well, socially responsible investing is synonymous with high quality management and improved returns all while doing good that's driving a surge of money into esg funds over the past three years but study after study shows esg investing may not be linked to improved performance. a review found, quote, the financial performance of esg investing has been indistinguishable from conventional investing, yet managers can charge more even if funds mimic indexese. >> you can get similar returns without looking at the esg information. simply by looking at investment styles based on financial ratios, you can get a very similar result >> the 20 largest esg funds like vanguard's social index fund,

were largely allocated to information technology with efl bet in 12 of the 20 largest funds highlighting concentrated risk in one sector of the economy and almost zero in energy making fund allocation one of the key drivers behind the recent outperformance we have seen with esg funds given tech has been responsible for much of the run-up in these funds as technology takes a turn lower investors can expect these funds to possibly follow suit. >> for many many years the defenders of esg funds have said not only does performance equal those funds that do not follow esg strictures but it exceeds it these studies that you cite say absolutely the opposite? >> that's studies that i am studying right now said these funds have done well just in the past year, year and a half because of the larger concentration in technology, the

smaller concentration in oil and gas. but i think that the major overall picture this entire thing is that often you are not going to -- they can say it is outperforming but it is outperforming because often it just tracks the s&p 500 or just tracks technology. >> yeah. >> and not because of all the good that's going into the fund. >> one can question -- i think your word was indistinguishable from other comparable products but i think one can question, as i have, and others, too, i have no originality here, the idea that technology companies, while they may be cleaner than an energy company, per se, does not necessarily mean that in terms of governance they are particularly good. as you look at some of them -- >> no. >> with their multiple share class structures, you would say that that is not best practice with respect to shareholders. >> but much this has to do with the fact that technology firms are incredibly large and have

the money in order to provide all the sustainable office they have chief sustainable officers versus the smaller players. oil and gas maybe could be unfairly targeted given all the changes for green technology that's something i am going to explore, i promise in the near future and i will have more on that one, too. >> gotcha. >> let's move on to kate rooney talking about the revolutionary web 3, the new blockchain based persian of the web, attracting investors and lots of debate. >> that's right. as part of a boom in web 3 companies, vcs are starting to structure deals so they can get exposure to the cryptocurrencies associated with these start uchs in addition to equity. some of the deals start out as plain old equity investments where a clause that if the startup eventually launch as token, the vc backers will get a portion. that's often at a preferred price. but some of these are also open source projects. they are not necessarily companies. so in those cases, vcs like the

rest of us have got to go out on the recent market. they did it with solana, and another with parallel. in order to do the token firms a lot of firms had to make changes. they are converting to become registered investment advisers, rias so they are not tethered by traditional investing rules. i am told investors still prefer equity, they prefer that relationship with founders and they want the board seats, the upside and downside protection. >> the question, we have gone from old, so-called, to new, to revolutionary. what should peep do if they want to dip into this space but even vcs are looking at whether to do it from the point of view of tokens or traditional testing or

whether you have to wait a while? what are you doing >> on vc side it seems to be competitive. there have been 48 deals in the past two weeks alone it has to do with the founder. whatever they want goes. some of these projects don't want to take vc money at all they say taking venture capital back in flies in the face of the whole idea of being decentralized. they want it to be user owned. there are some cases where they won't touch venture capital money. i talked to some folks who said we tried to get into some of these, the preferred tokens and it didn't work out one of the issues, i think people are working this out, is transparency, you don't always know what vc or sort of big investors might be in a project that you are investing in as an average investor in some way it democraticizes things because you might have

the same deal as horowitz but they are working through the transparency side of things. >> you have to do a lot -- when you talk to people in the projects themselves and say how do i get access to these i am confused. i am not an internet specialist who has my discord totally set up to where it needs to be they say that's kinds the point. you have to do the research, become part the communities and earn your way into it because you figured it out i say, that's fine but some want to support these things without having to go to that level of due diligence. it is very tricky. >> exactly right some of the early projects and things that aren't necessarily listed on the cosby tend for heavily created with insiders, early investors, technical folks. by the time it is invested on one of the typical exchanges so that the average investors might have access some of the value might have already been captured you are seeing the dynamic with -- same thing with

negotiation fts, they have early buyers if you got in early you made a lot of money again, the transparency side of it if you were in very, very early with a certain token, by the time it lists on one of the exchanges it might be already taking profits for an investor who says i don't know how to open a wallet i just want to invest on coinbase or robinhood or one of more usable mainstream investment apps but it is still very new a lot of the vcs are trying to figure out how to get into it as well. >> i am fill trying to figure out how to get into the real kool dows and stuff like that. that's the point they are like we don't want you. one year after hitting all-time highs peloton is being removed from the nasdaq 100. is the stock stuck in low gear we will have a good old-fashioned bu/bllear debate

what a tussle it will be the tour dee fight, when we return

welcome back i'm rahel solomon. here's your cnbc news update at this hour. in the wake of what appears to

be the end of the line for his voting rights initiatives in congress, president biden is ryelighting his plan to rebuild the country's infrastructure at a white house event just over an hour ago he announced the first $5.5 billion for the first year of the program to repair and rebuild bridges. >> there is a lot of talk about disappointment in things we haven't gotten done. we are going get a lot of them done, i might add. but this is something we did get done and it is of enormous consequence to the country. at a probable cause hearing in wisconsin a judge ruled that a man accused of driving his suv through a holiday parade in late november will stand trial. darrell brooks jr. faces 77 counts he faces a mandatory life sentence if squikted on even one of those counts. proud boy leader was

arrested two days before the attack on the capitol and walked out of jail on bail today. time now to track the teach tracker. we look at emerging markets etf which had $1.1 billion in inflows over the past week more stimulus from china, less hawkishness from fed chair powell led to higher chad pries, and that boosted a lot of the emerging markets shares, especially in latin america. the i shares mcsi chile, global xmsci colombia, and the one in peru almost up 5% this week. more information is available on the ft wilshire etf hub. >> now i am thinking about match you peach you. further ahead, why games are

a cash cow for social media companies right now. peloton down again today it is down more than 80% over the past year s. a comeback gearing up we will debate that next in different ways and across countless different networks. so how do you get everyone on the same page? microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. trust microsoft surface and it orchestration by cdw. ♪ ♪ ♪ 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.

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we have got 90 minutes left in the trading day we want to get you caught up on the markets, stocks, bonds, commodities and a bull/bear debate on peloton. we begin with mike santoli as financials ug drag the dow down. >> one of the winning groups of the year is a pressure point today with a lint of a negative reflex reaction to the bank earnings been unstudy all day, below the flat line for the major indexes. the nasdaq is trying to win back some of those losses from yesterday. energy remains very strong look at financials versus energy today. this group -- these two groups have been working in lock step higher, not just this year, but actually for the last 12 months or so. here you have a divergeence, crude oil enabling energy to do well again, and financials taking a step back, they have been the beneficiaries of the rotation out of tech the nasdaq 100, it is a

challenging investment this week the challenge we got has taken it to below where it peaked in september, unwinding that fourth quarter, overshoot to the upside results in a balance adjustment. apple holding up better, not down as much from the highs as the index it self. >> from santoli to santelli, from stocks to bonds rick, take it away. >> tyler, it has been an interesting week it seems as though many were scratching their heads why interest were moving a bit lower this week considering some of the data and inflation numbers we have seen well, the counter-intuitive trade seems to have ended. look at a 24-hour chart of tens. we keep touching the 170 level right now we have not only touched it we are taking off from it. the high yield close for the year was last friday at 1.76%, actually the highest yield close in two years let's go back to december 1st.

look at the way the markets moved higher and the way it came back and touched the 170 mark. if you open the chart up to last may you will see this is not unique we bumped up against that level several times as we came back down they call that the kiss. here's the point if you want to look at the chart precovid as you see on long-term chart there is a lot of room if you are a technician you are thinking if we make a move above 1.76 that's a fresh two-year tie, it is going to create momentum to test closer to 2%. if we close 170, look for more sideways activity. if we close below 1.70, most likely we can test the levels at the 1.50s. >> a close above 1.76 is telltale here, rick? >> absolutely. that's where we start to once

again build momentum for higher yields. >> you too have a great weekend. oil closing right now higher for the day and the week pippa stevens has the details. hey, pippa. >> tyler, oil prices are jumping to end the week on pace for a fourth straight week of gains. constrain supply continues to be the driver here and market is shrugging off weak data out of china. declined on a year over year basis for the first time in 20 years that said, china's demand jumped nearly 20%. wti is up 2.25%, brent crude advancing 2% after two highly volatile sessions for nat gas it is ending the day down about half a percent. with oil prices quickly approaching october's highs, gas prices are in focus, the national average for a gallon is 3.40 according to triple a, two cents less than last month.

>> shares of peloton riding downhill as i said earlier, the resistance knob has been turned all way the right. it is getting harder and harder. the stock lower today after being kicked out unceremoniously from the nasdaq 100. reminds me of blackberry the high exactly i don't remember ago is it time to lock up the bike shares and sell or buy at this bargain price? the bull case, dan adams, senior analyst with luke capital. taking the bear case, siemian segal managing director and senior analyst with beamo capital. gentlemen,well, siemian, this is a beaten down stock. sometimes when a stock gets pummelled as it has is it time to scoop up shares you say no >> you called it blackberry. other people called it go pro. i don't know that it is either of the two i think it is a great product.

i think they told a great story. i think it is a great community. i think the question becomes what's that worth? i think conversations that we have had on this program have shown that the numbers argued for a smaller company. if we think about it -- that's your point about the nasdaq, if you think about it it is over $10 billion market cap company for a company that has 200 million people for the best case environment. the answer from success is no, we still think there is downward pressure i will hand the mic over. >> siemian says, dan, this is a smallish company being accorded a valuation and being treated like a large company do you see his point there and make the case why you think the stock can go higher from here >> i have enormous respect for siemian. however, i disagree whole heartedly. on valuation i would point out two things one, if you look at the multiple on a forward ev to sales basis it has gone from ten times 12

months to two times today. valuation is really discounting the worst case scenario in our view right now the second thing is, if you look at valuation maybe more on a sum of the parts basis, separate the equipment business from the subscription business and just focus on subscriptions, the subscription numbers alone, $42 a mant times 200 million subs, you get to $1.3 billion revenues on an annual basis on a 70% margin. that implies substantial upside, basically, ascribing a multiple that would be more akin to a netflix. so $80 a share is our estimate just for that business and if you fast forward a year from now when they will have 3.4 million subscribers, ascribing the same 30x multiple you get to $110 billion. >> i am going to ask siemian to

respond. but my basic question for you, dan, is -- everybody knows what those numbers you just cited are. >> sure. >> you can do the math on subscription model and the price per subscriber and you can look out and see equipment sales and so forth so why, other than the fact that it was a pandemic darling, has the stock fallen 80% >> well, they had disappointing earnings last quarter, and lowered their outlook. and the quarter before, they lowered the price of the bike. i think that that caught investors offguard just considering that up until that point it had been a consistent beat and raise story ever since they had gone public, since the ipo. i think the narrative has certainly shifted. but you have got to look at the fundamentals on a fundamental basis, both in terms of valuation and then also what we are seeing in the data, and most recently we came out with a research note overnight

which looked at app store rankings on ios and instagram followership, and it is showing a pivotal point, an upward inflexion in terms of user engage men we think that this could be the quarter where the narrative shifts back to positive? siemian, dan held the floor for a while. it is back to you. >> so, dan and i are friends this is a fun one to do. >> this is good. >> listen, it's always good. we are all friends here. but i think the point he makes of differentiating between hardware and software, or hardware and subscriptions is important. historically when the stock was where it was, people were looking at the total ev to sales. they were looking at equipment the equipment we have found to be a lower margin business we are finding that a big question at the beginning of the pandemic, was this a pull forward or an expansion of demands? given what we are seeing as the

reopening trade it is increasingly looking like it was a pull forward so we go back to the subscription the $39.99 a month, the question becomes how many people? beyond you canning at issuing capital, increased demand, beyond looking at the capex that went into it, there has been a lot of questions we talked about. the question is how many people. if that is slowing down f numbers have to come down, it is hard to argue, forget about the greta environment and the interest rates and every conversation we have been having about nasdaq stocks, if these numbers go down, people have to recalibrate. that's a storied stock that became louder that is than its numbers. >> i am a user i am an owner of one of the it has been maybe the only, i confess, the only home gym equipment that i have ever stuck with and i just hope that the instructors, kendall and ali get lots of stock and it goes up for

them they are my favorites. anyway, we haven't talked about the community broadly that they created. one of you mentioned it. it seems very important to me, number one number two, the fact that their instructors are markedly good, every single one of them, they are building a kind of star system within their universe quick thought dan -- or siemian. >> just one thing because you brought it up, it is an important point that doesn't get talked about chances are if you got stock over the last year think about what's that worth right now. that morale inside, trying to understand what the currency the company has been paying its employees with is important to consider it is important to consider. what happened now as the stock has come down for those options. danny, you can go ahead. >> we have to leave it there siemian, you are the first person that taught me about the

bralet and how important that was as retail trend. i appreciate it. i am in your debt. dan adams, siemian siegel, thank you. >> thank you. after the break, a winning jackpot for macao casinos, the name's soaring on big news those details next ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had

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welcome back a news alert on a name we haven't heard about in a while martin shkreli a federal judge ordered him to return $64 million in profits from inflating the price of a life saving drug he is also barred from participating in the pharma industry for the rest of his life again, just getting that news coming down. >> wow, that is a stiff penalty. coming up, golf getting a boost amid the pandemic as people sought outdoor activities by the way, it lets you avoid crowds could inflation and supply chain shortages put the industry in a trap we will speak with the ceo of taylormade next. as we head to the break. check out the casinos heading higher on positive updates

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golf has seen a surge in

popularity in the pandemic you can do it outloors socially distance how are supply chain constraints shortening the efforts dom? >> thank you very much for that. david we appreciate you taking the time to join us today. maybe kelly has the intro pretty tight there. we know that golf is popular you guys are launching a new line of product just take us through what you are trying to do here and the products and meaning to do with those. >> dom, thank you very much. kelly, as well we try to transform an industry at tailor made for many of you that play golf you recognize this company founded on innovation, a concept of a metal wood 40 years ago transitioning from an antiquated technology where products were made from laminated wood into a

cast steel product that's the basis of the company and we have brought metal woods to the fore front of the industry and transformed from stainless steel to titanium to multimaterial composites but first time ever in 2022 we have stealth. stealth is the first 60 ply drive built in the industry. i have one right here and what you will see in golf in 2022 and on tour and saw it with tiger woods playing in the pnc in december and then the tour players moving into hawaii this week is this red face. that's a 60 ply carbon fiber face for more patrol and we couldn't be more bullish about where we are in technology right now

transitioning into the able of carbon which we call carbon woods. >> can you be as bullish the technology is great. can you get the products made? can you get them out to market given freight costs and shipping costs and availability parts supplies everything else? >> dom, we are working hard at it we got a head start on this. we had a sense that the momentum to build around the product would give us lead time to procure parts and materials and labor in place to build as much as we possibly can we started to build this face not just the technology and the face in october of 2020. we have been at this well over a year building inventory over time is it fully optimized at this point in time? no but we are going to generate 40% more volume in carbon woods than

in prior metal wood technology so we continue to be optimistic to support the needs of golfers not just dmesically but the world. >> before you go, what does the industry have to do to maintain momentum for the game of golf? >> keep investing in the sport much like tailor made in t technology there's a great job to advance the momentum established you probably know the numbers. we have 6 million more golfers playing the game than 2 years ago. the participation rates of those playing including women and juniors which is a wonderful component epa add and growth in the industry we believe creates a lifetime opportunity for golf so as excited as we are where we are today we are excited about golf in the future and bringing

more players in the game around the world. couldn't be more thrilled where the industry is and excited about where we are going. >> david, the ceo, thank you so much for joining us and good luck with the product launches this year. >> appreciate it thank you. >> tyler, back to you. >> i have a dispersion problem in the golf game. game on. betting bid on video games and pushing publishers to go mobile. joining the game to show details when "power lunch" returns there's julia. sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful,

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facebook's shift to the metaverse drew attention and just part of a bigger push by social media companies in the gaming area. julia boorstin explains how and why gaming has gotten so big for these companies and why it's likely to get bigger julia? >> tyler, how the week started with take. two interact ifr with zynga. shares up 50% and two-two shares down on concerns about the valuation

but paying a premium across social platform games are a driver of community and communication and ad dollars projected to grow to $5.75 billion with $2.of billion going to ads in video game content this year. twitter reports that q4 was the biggest quarter ever for gaming conversations with 14% growth in tweets about games last year facebook with more than 900 million people who play games and watch video game content or connected gaming groups on facebook every month tells us every month the app grew 47% and twitch viewing grew 45% last year and second viewed content on reddit last year. amazon bought twitch in 2014 and

alphabet with youtube games because ad dollars following that engagement in games and content made about the games. >> julia, thank you. kelly? >> thank you for watching "power lunch. see you on tuesday "closing bell" starts now. happy friday welcome to "closing bell." i'm sara eisen the market lower today and the nasdaq is bouncing back. just on the flat line right now. major averages on paces for the losses for the week. >> good afternoon. i'm wilfred frost. a mixed picture on earnings as big bank results get under way retail sales missing ers mates falling 4.9% in september versus a drop of 0.1% energy surge continue just the sector leading today this week, as well and the