pej, invesco leisure and entertainment estf. >> respect the rally happening last couple of weeks undervalued reopening stock and worth owning. >> got it. that does it for "the hollywood reporter" today. "the exchange" begins with kelly evans right now. courtney, great stuff. hi, everybody. what's coming up this hour, inflation came in way higher than expected this morning economists scrambling to catch up starting to see markets pricing upwards of six rate hikes maybe a half-point hike next month fresh news on that get to it all. latest data what it means for markets, where you should invest one area watching closely. war prices soar unimaginably over the past year, if you can even get your hands on one is that starting to turn

talk to one ceo on latest trends on dealerless. plus, more earnings. today get you ready for expedia, affirm and szillow, first to dom chu, latest numbers. >> bullard comments, takenalities of steam oust market federal reserve of st. louis president james fuller being quoted now, headlines making hawkish comments what's happening. watch that move there. sending markets a little to the down side. s&p 500 down about 38 points 4548 last trade. nasdaq 11 points down side middle of the range. lowing of session down 1.5% roughly. highs 1.1% gains n nasdaq in the middle. also watch what's happening now with regard to an interesting move with regard to the small cap index. believe it or not, small cap

stocks are up today measured by the russell 2000 etf tracks them up one-half of o one percent higher interest rates should be more pressure, headwinds yet buying shares up one-half of 1%. luxury end of things upside moving 1.25% tapestry company formerly known as coach and case and canada goose down 16% off session lows after it comes out with a mixed earnings report and cuts full-year guidance diverge, of the force luxury retail back to you. >> dom, thank you. for more on the comments from the fed's bullard dom mentioned, get righter to our steve liesman. steve? >> yeah. as you talked about, kelly,

market's reacting immediately to bloomberg comments from bullard. what's happened immediately t probability of a rate hike in march. don't put up the other charts sent earlier, now out of date. the whole spectrum moved up. looking for now, best way to think about this, kelly, is call it one to one and a quarter percent by june. 60% probability of being there then you have about a 70% probability of being between 1.5% and 1.75% what's happened, this very strong inflation number came out. the market began to reprice for that 50 in there i don't know that fed officials want to go there bullard has been out there sometimes on a limb. sometimes leading us astray. sometimes leading the way. listen to him carefully. he is a voter this year,

midwestern hawks we've spoken about, and esther george, new governor, bullard, i read the wire, at odds with fed chair powell on this other people have not really wanted to move 50, but interesting question now, kelly is -- if the market's going to give fed the flexibility to go 50 by pricing in it already, fed may well take it. >> so interesting, steve much as we talk about this as this kind of exciting event that hasn't happened in over two decades which is a half point rate hike, plenty out there saying, i is this even a big deal should that even -- bill ackman called for this a couple weeks back when it seemed a little out of consensus bank of america said seven rate hikes. everyone said, ridiculous. now quickly starting to catch up, if not surpass those views makes you wonder how many hikes

we might really end up doing and again to the balance sheet side as well. it's not as simp to talk about, leaving a lot more quantitative tightening and not going through all of the hikes >> the first part of the question second part is for sure. going to want to do more balance sheet. talked about that. the idea is, i don't think the fed wants to surprise the market with a 50. so what the fed does, lays out what it calls a reaction function, which says, incoming data does this expect us to do that that's the way the reaction function has worked today, and bullard came in kind of affirming that market reaction to the incoming data so the fed would not have bun 50 as a surprise, because there was no point in surprising the market but now that the market is there, well, i mean, why not do it the fed did not want to impart any information to the market that it didn't already have. in other words, let's say they

expect 25 -- fed comes in does 50 market's going to be, wait what do you know we don't know now they all seem to know the same thing and the market's pricing in the fed at 50 we have to listen to some of the fed speak over the next couple days and weeks and see, do they affirm this or lean against it and see where the center of the board is here. >> yeah. fascinating. really is. no one expected that report to come in stronger than expected look what it set off steve, thank you let you go for now see you again soon ten-year yield crossing above the mark today before first time before the pandemic as a result of everything we've talked about. joining me to talk more about implications of the market, head of wells farg other and also director of research in ironside's macro great to see you both. michael, start with you on the rates piece of things. what do you see in the charts now? >> interesting, kelly.

a lot of people speculated 2% a huge inflection point. certainly gets a lot of attention. no question about it is it really going to propel a lot of people to buy treasuries? doubt it big concern is what steve liesman talked about, fed policy really go 50 in march? doubt it think it sends the wrong signal. so much noise to sort out now. oh, by the way, inflation numbers are scary. tough to get too excited about buying long-term treasuries this month. >> interesting put that differently say that people were excited to come in and buy 2% maybe a cap. now never mind maybe i don't want to get in front of this. barry, do you want to? do you think rates will keep moving higher, and i'll ask you a question someone just asked on twitter saying what do we buy if we think inflation's going to be worse than what the fed thinks they fear? >> you don't buy treasuries for sure no i'd be disinclined to buy, you know, treasuries at all.

take a look at back end. started asking steve about the key issuewhich is how does the tightening process unfold? i've been argues strenuously they should focus on active balance sheet management and mortgage port ffolio in p particular likely shelter -- six months of price increases, already baked in the kashgscake because of th those aggregates or measured or calculated got housing prices increasing. 1.25% per month. rents surging. the fed could take steam oust housing market were they to actively shrink back security. and determines a yield curve steepener or flatner what you buy, actionaries should be fine. >> hold that thought a moment.

30-year auction results in difficult setup for a bond auction. bring in rick sante tell w -- santelli with results. >> difficult, 40 years' worth of inflation showing up before it occurs i gave it a d. d as in dog. didn't go well shocking right? 23 billion 30-year bonds what went wrong, yield is 2.34 well ahead where the issue market trading higher yield lower price is the bulk of the rating down grade. cover was basically on top of the ten auction average. metrics indirect not as strong as the last couple of ten-year and 30-year auctions but a little above average the dealers ended up taking less than ten auction average but priced ugly. look at the ten-year chart not only see how it's trading postauction, see the bullard

posture steve talked about yes, right around 9:00 eastern touched 1.9999, official around 10:47 eastern. popped through it year-to-date chart. hover now at, what 203, call it that is up 52 basis points on the year and as you see on the july 2019 chart, last time closing over 2%. quickly i want to go back to the two year two year's making fresh two-year high yields as well but really popped when bullard's comments came out 156 up 83 basis points on the year, and really underscores 10 to 2 spread under 48 went from 16 month to over 18-month comp on that last time this flat and shows how nervous the market is today between the auction and trigger-happy traders listening to fed speak back to you. >> perfect place to leave it thank you as i turn back to michael schumacher again, rick's pointing out the

difference between two year and ten-year treasury yields less than half a point now. do these moves at least give confidence maybe long-end yields will go back up and uninvert the curve? what is the message, do you think? >> we dough the other way. going up short-term rates, two year, three year to go up more than the 10 and 30 year curve getting flatter and flatter we think. >> not good. >> it's bad. painful. >> isn't that a sign recession is coming? two ten every time inverted, could be a month away? >> used to be a great indicator. i agree. interesting when you think about the history of financial crisis. the shape of the curve, weaker and waeshg indicator reason, central banks so involved in markets with huge portfolios whether feld or other central banks and have broken that link between yield curve

shape and future growth. worrisome but not indicator it once was grch. >> very good to hear everything else screaming for fed to tighten except yield curve. take too much of a signal from it perhaps sending the wrong message. >> yeah. i would agree with michael and in esther george's speak last week talked about long-term rates potentially suppressed by 150 basis points because of fed activity talking about this all the time, suppressed term premiums as consequence of not just the fed, bcb, doj, all that intervention in the market. i think the reason that the yield curve inverted in 2019 was because we were in a global trade and manufacturing recession. not because the u.s. was headed into recession surely the market didn't have a clue about covid coming. i absolutely think that's the

case, but i think, listen, in the 2010, 2014-'18, fed normalizing policy okay for the curve to flatten because demand more interest sensitivity still impaired balance sheets under pressure. housing, autos, and durables were, demand impaired. right now demand's off the charts fed should want those rates to go up. they should move away from using their blunt instrument policy tool and should actively manage balance sheet try to get the curve to steepen to slow demand for housing, slow demand for autos and try to cool off inflation. >> a quick -- >> doesn't seem to be the path they're on. >> might be now. final quick point for those, you did make this really good point in passing end with it. you said you should be long equities here even though maybe in the '70s a different story and especially the reflationary sectors. give me a couple specific names it or sector then we got to go.

>> sure. energy, materials, financials, industrials, in a period very much like the '60s reflationer regime had big policy shock back in january. that's enough for now. i wouldn't chase price right? buy weakness for sure, but i think equities will be okay through this a big appropriate adjustment. >> appreciate you putting a point on it. ending there really great to have you both here barry and michael. quick programming note nec director on "closing bell" at 3:00 p.m. wit administration's response to this morning's inflation data. a news flash on the housing market, where mortgage rates reset to a key level diana olick has the latest numbers. >> kelly, just got today's new rate on the 30-year fix from mortgage news daily. take a look. crossed to the 4s. 4.02% to be exact. a 12 basis point move higher in just one day rates don't unusually move in double digits day to day reaction to the cpi report and

result jump yield on ten-year treasury mortgage rates loosely follow that by comparison rate now 122 basis points higher that it was a year ago when it was at 2.8%. significant purchasing power lost for home buyers right on the cusp of the earning season buying median priced house paying about $250 a month more than you would have just a year ago. that's real money especially given inflation and how much more we pay for everything else in the monthly budget these days kelly? >> quick, you talked about this before i don't know if this is going to happen but if the fed were to start selling down its mortgage-backed securities more aggressively, what do people say that could do in terms of interest rates >> drag it up more look at reaction today, ten year treasury yield loosely follow that mortgage rates depend on that amount of mortgage backed bonds bought or sold fed stops buying and dials back on what it holds, can't say it

enough. >> very interesting. leave it there for now thank you. coming up, latest on two key sectors, autos and energy. ceos of group one automotive and country's largest gas producer eqt joins me pap view on inflation and growth and what it all means to the economy. buying up everything in earnings ex-changes. buying now, paying later in a firm, buying a home on zillow or a vacation home. what they report after the bell. back in a moment. >> announcer: this is "the exchange" on cnbc.

what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.

welcome back, everybody. markets at session lows down about 353 points low tick at the moment for the dow. up 32 the high decided weakness since comments from the fed bullard about 20 minutes ago indicating he supports a whole point of tightening by about the july time frame meantime, check on shares of auto retailer group one automotive dipping today about 4% despite better than expected earnings. look at supply something you probably already know group one at just nine days inventory for new vehicles in december versus 48 days year before also improvement in used vehicles up to 36 days of supply

versus 32 a year ago more, bring in early hef hessterberg. good to have you here. are prices turning over as everyone watching inflation these days wants to know >> no doubt inflation's here i don't think that's good for any business but in our business, autos are push purchased on monthly payments, historically low interest rates and strong used car prices a little buffer in there also in our employee costs which is, as a retailer, a big part of our cost structure most people are paid on production right? sales people, techs, technicians and so forth it's not ideal, but it doesn't seem to be a material headwind for us yet. >> what do you think will happen if we look out middle of the year saying, wow. there was a huge dramatic reset in the auto market and now we're

cutting prices and there's too much inventory or not? will we be tight a while >> going to be tight for quite some time. much to my surprise, i would say, but we had 29,000 cars pre-covid. we've got 3,500 now and plus added 30 dealerships it's going to take a long time to build that inventory back to 20 or 25,000 units, and it's not going to happen in the first half of this year, and i'm not sure it's going to happen in the second half either. >> it is interesting to see bifurcation between new and used really strong demand for new but i inventory for used on the move >> those cars are worth a lot of money and able to buy them from people you know, the word gets out. this is the best time ever to sell a car if you've got one to liquidate.

more creative in sourcing but able to keep that inventory near ideal levels. >> normally hurts profit margins. sounds like these days, whatever you paying for it turn around and sell it 10% more >> have been able to do that i don't know if we can do it indefinitely normally a 30-day supply of used vehicles and can react quickly to market price changes. >> what does it tell you about strength in the consumer i don't know if you can give color on the cash versus financing? are rates going up, a headwind for this market or not >> that's a good point the point is the consumer has money and they want to spend the money. they would like to be buying more cars than we can supply. and it's never good when interest rates go up, but they're just so low based on historical, on historical rates, and just doesn't make that much difference in a car payment.

should the rates jump up unexpectedly high, auto manufactures use their incentive money to buy those rates down. so i don't see that being a headwind for us either in the near term. >> yeah. if i were fed, the base book, take rate hikes. maybe in ways help and sector can cope with that finally, we've heard that ford and gm and others are going around to dealers saying, hey, if you charge markup for these new cars, we are not pleased about that what is it like on dealer lots how widespread are markups and what do you do than? >> that's an issue for us, too we tend to agree with auto manufacturers on that. oh, i think if someone's coming from out of the market on the internet buying a specialty car we may sell it for above msrp, but our policy with our customers, we want them to be our customer as long time and not taking advantage of them with agree with auto manufacturers on that. >> again, it's been such a

strange auto market. sounds like it's not over yet. appreciate you joining us to talk a be it. >> my pleasure. >> the ceo of group one automotive. still ahead, fresh spending data that shows just how strong demand is in the u.s. even as the omicron variant spread, plus which sectors saw the most action this stock building on gains after yesterday's 1:00 p.m. pop. can you guess? who's behind the bump and why calling it a top value pick and what else is on the move stay with us.

(doorbell rings) - [streamed woman] but this is where our road ends. - [streamed man] it has, jennifer. - [narrator] fantasnack: the feeling that comes when you've paired the perfect treat with whatever you're streaming. - [streamed woman] i assume you'd rather travel. - [narrator] on time, lowest price, or we'll make it right. - [streamed man] are you kidding me? - [narrator] grubhub.

watching the dow, outperformer,

down just under 1% s&p down 52 nasdaq down 179. to rahal solomon for a news update. >> happening this hour, president biden speaking on efforts to rein in health care costs focusing on limiting what americans pay for prescription drugs. >> -- alzheimer's and -- this is not republican or democrat this is about whether or not you and your loved ones can afford the health care you need and the medicines you need to stay healthy. because we need to ease the burden on working families by making everything more affordable and accessible. >> u.s. troops deplying in germany to romania military officials say some personnel have already arrived while the rest will make the trip in the coming days. sent to reassure allies and reinforce nato alliance. another 1,700 american troops sent to poland. a former until wil player sentenced three years probation

pleading guilting to transporting fentanyl. also worked on a drug recovery center. ahead of valentine's day a look at financial infidelity how to deal with money secrets tonight at 7:00 eastern. >> sounds -- romantic. >> no secrets. >> no money secrets. rahal, thank you. still ahead, will affirm's partnership with amazon make up for its past reliance on peloton? set to report for the first time since shutting down home-buying business, zillow, and how much was omicron for expedia? all ahead in ""the exchange," right after this.

welcome back time for earnings exchange giving you action, story and trade on key earnings reports, several today. starting with affirm stock up 38% in the past week, but still down more than 50%

from highs zero celebrations on buy now pay later name could they have a peloton problem? kate rooney on the story, and also portfolio manager at a capital advisers group welcome to you both. kate, what are we watching for >> revenue concentration, breakdown of which firm's partners drive the most sales? fancy way to say that. that's peloton this quarter peloton a lot less important than it used to be seen a major slowdown as peloton, comes to sales and subscriptions. that really needs to be a bigger deal than it is now. meanwhile, fast-forward. amazon and shopify now appearing to pick up slack lenders have been slowly shaking off relying on peloton a big thing to watch what percentage of revenue came from peloton especially as that company sees a slowdown lately. and affirm, went puckly,

context, peloton one-third of revenue but falling. talked about moving away from it prior quarter, 10% revenue shopify the big story last quarter and helped them grow to more than 100,000 merchants. propelling that company to the sort of level of 15,000. competition fear it square, block bought after pay. a lot of big global buy now, pay later. amazon, of course, the huge focus for today. that exclusive partnership went into effect in november. first quarter we'll see it play out and how significant this is. holiday shopping season tends to be for payment companies as well analysts say amazon will take over biggest slice for affirm. kemptigs big and guidance. what the company is looking for.

fin i fintech, paypal. regulatory headwinds for affirm. >> yes probably around for some time. david, would you buy the stock do you own the stock >> no. we currently do not own the stock right now. startin ining to get me a little interested what we're looking at exactly what really was touched on starting to diversify revenue sources. as we know, the company stops being a one-trick pony, they were, beginning part of this year, as a diversifying revenue stream with amazon, shopify, i believe the company could yield a higher multiple. before the earnings report all in all i expected a race here probably not to the same magnitude as some past few quarters. >> interested of any stocks in this space would you buy them >> thinking more toward high quality, adobe, i like owning

companies with positive earnings affirm does not have positive earnings hence by 12 times forward for this company love their technology, getting ingrained with the younger generation, buy now pay later here, but probably not looking to add to affirm or put it into the portfolio at the current time. >> totally makes sense. leave it there kate, thank you. next up zillow reporting today in the first report since shutting down their ibying pro program. shares down 70% more so than that even in the past year diana olick has the story. what are you watching for? >> kelly, definitely for more color from the ceo on the winddown of the i-buyer homing a home flipping program but zillow paid to much and had to wind it down a move last month sold homes off to big investors

that does not help lift zillow stock or reputation on that fiasco watching for any commentary on that also any mention, as you said, rising mortgage rates are key, because rising rates show down home sales going forward not to mention zillow has its on mortgage segment that has seen significant growth last year hons housing shortage, see what that plays into earnings of course, real estate agents fewer listing, less to put on zillow and pay for that. >> great point david, do you like the stock >> diana -- pardon me. kelly, yeah. a little now i focus on premiere side of the business very high margin business. nearly double the size of the next largest competitor. zillow has exceptional brand recognition. no denying that. draw nearly, like, 300 million unique visits per month. use that to your advantage monetization tunes especially given new simplistic nature of their business model

they've started to wind down zillow homes longer term, yeah, i believe the market will reward being a bengals fan, jets a little bit, i can't resist i think the l.a. rams need to start using zillow they need to find a forever home lie the chargers, raiders. st. louis didn't want them and i don't think l.a.'s embraced them whatsoever who does, cincinnati bengals i tell america, hey, jump on the bandwagon right now. >> all aside, quite right. it's sort of awkward to watch them contend for a super bowl when everyone thinks they really don't belong there sort of luke warm on zillow maybe into the future. what about the rest of the real estate space right now a lot of, you know, contention about what stocks and which stocks you want to be exposed to in this rising rate environment? >> call me crazy actually like commercial real estate side of the business now.

cushman wakefield 12, 12 times w cre space, likeit. value at heart and contrarian play. >> thank you. finally, the only one of these three stocks that's actually expected to report a profit today exp expedia, up 11% this year. will we see omicron impact in this report? dom chu has the story. >> i guess you could say the expectations for expedia and bengals and rams are relatively hot according to this particular week on a consensus basis, analysts looking for roughly $2.3 billion in revenues. traders and investors looking towards companies like expedia as possibly broader indicators or bellwethers for the overall travel sector.

bookings airlines, rental cars expedia, vacation rental side under the vrbo brand and surrounding omicron, expedia seeing benefit from bigger return of demand for travel and leisure people look to get back to normal, scratch itches to travel festering during lockdown the last couple years. very much a story about the future, because many of those positives obviously at this point been reflected in the stock price at current levels at record highs look for any of those outlook-like commentaries especially leisure travel and by the way, kelly, this is often times a more volatile stock around earnings reports. to that end, we looked up in options market pricing in roughly 8.5% move up or down on the heels of this report could be pretty roller coaster-ish. >> at least we know, one part of the market working do you stick with it >> give you a is asuccinct answ.

like it. up year to date showing me investors aren't too worried about an omicron affected quarter, which we may see here last quarterly, the last quarterly call, expedia saw improving trends, october reaching a high point on booking's down 2% relative to 2019 with omicron uptick in december, i expect the quarter to see some cancellations impacting net books than profitability however, well-known pressure on this quarter and declining omicron cases here in the united states, ithink the street can look through and pass on a softer quarter right now overall heading into these numbers investors, coming up, need to be excited as i am for the cincinnati bengals being 2in the super bowl cried twice in the last ten years. last time on sunday and other time at a george strait concert,

circuit 2013 not saying expedia investors will cry in excitement after this report. you just said expected about 8%. a lot to be excited about with expedia, should be more evident in profile. >> saying, bengals don't keep coming up. you keep bringing them up. contain your excitement! >> waited 30 years. >> i know. hope they can pull it off. >> the last two people who beat them in the super bowl >> the 49ers. >> don't get in a fight here please, separate dom chu, dave wagner appreciate it thank you very, very much. stocks are hitting fresh session lows now dow down as much as 465 points quote/unquote highs, really lost a lot of mojo after comments from fed president ballard a lot more to come. also covering natural gas taking a breather after a big

run-up last month and talk to largest u.s. producer which parts of the country are most vulnerable to power shortages. stay with us a mobil so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

♪ ♪ 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

welcome back big rotation day in markets. show and tell. tupperware mystery chart showed earlier. shares climbing again posting best day in 15 months yesterday after calling it a top value pick to ride out this transition and this market volatility what he told me yesterday on this show. >> tupperware's down over 50%. a great new business team pap buyback, get executed properly roughly 25% of the shares outstanding and trades around four times earnings. in a regime we think will shift decisively towards value, i

think that's a great plan here. >> miller is also bullish on varoom and meta thinks has attractive value and bullish on crypto play, stronghold, digital mining and ganet trading $20, $30 and even after the pop, only about a $6 stock today. still ahead, producer eqt climbing more than 10% over the past two weeks despite the price reversing. we'll talk to the ceo where prices are headed from here. we're back in a moment

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

welcome back shares in america's biggest nat gas producers eqt turning higher despite missing estimates after the bell yesterday prices overseas hit fresh all-time highs as europe and asia deal with shortages 30% from levels lately russia announcing troops on ukraine the border and inflation hot, prices could surge again. joining me, president and ceo of eqt corp great to have you back welcome. >> thanks for having me. >> what would your message be to viewers concerned about the

price of energy as it is today do you think it's only higher from here or could we go through a period of consolidation? >> there's a lot of concern with energy prices, and they're well placed energy prices have been extreme. but the message to viewers at home is, these prices that they're seeing are completely unnecessary. the answer to providing lower cost energy, to americans around the country, to people around the world, is providing more access to pipeline infrastructure for producers like eqt, to connect our low-cost supply with the demand centers around the world >> so it's interesting that, in a way you think the supply chain is the problem, or maybe even go back to exploration and production, but how much lower do you think energy prices could be >> well, give you this example right now in appalachia we drill and produce kept energy prices extremely affordable natural gas prices today $3.50 compare that to what they see in europe, gas prices got up to

over $60, compare that to new england, gas prices up to $20. you say, why can we have gas supplies so cheap here in appalachia and more expensive in new england and around the world? reason is, lack of sufficient infrastructure when you look at what pipelines been about 8 bcf a day canceled. these would connect the northeast with the biggest gas supply in the country and arguably the world, and we can give the $3.50 price to say people who are paying more prices than they need to right now. >> i take your point i understand the environmental concerns and the pushback, but right now i think people are seeing, because it's the winter, the change in the high coast of natural gas prices i wanted to ask you -- this is on the subject of oil and gasoline, but the president just said, in suppose to some of the

inflation we're seeing, he wants to work like the devil to get prices down, work on supply chains and bring the costs down for the goods that come to america. what would be the most effective way of doing that right now? >> make it easier for the american gas producers to produce what we do, low-cost, cheap, reliable energy, in the most environmentally friendly way as possible. the president needs to be focusing on energy when energy gets expensive, manufacturing shuts down we've seen what happened in europe where fertilizer manufacturing plants have shut down due to the high cost of energy what that means, that will trickle down to high prices of food you see what's going on in china, where factories are being throttled back, because they don't have access to cheap, clean, reliable energy that can only be served with

u.s. natural gas and u.s. oil. i'm here to say we can do a lot more the upstream producer, running around 600 rigs. in the past we were running 2,000 rigs this industry is capable of doing much, much more, but we need cooperation and political support to do the great work we do every day. >> answer the concerns of younger generation saying there's no way i'm going to buy natural gas and oil stocks no way should we invest in more transportation infrastructure for a dying industry in this country? >> this is actually the most important part of natural gas and supporting natural gas when you support natural gas, you are supporting the biggest green initiatives on the planet. we're talking about attacking the biggest source of emissions around the world, it's foreign coal over half the emissions in this world are generated by people burning coal that's a tremendous opportunity for natural gas, specifically u.s. natural gas, which is produced cleaner than anywhere in the world, to attack that

problem. if you care about climate change, you should be leaning into natural gas, be supporting our industries, because we are the biggest solution to a global climate problem. >> one final observation is about the strategic importance it's my understanding even the northeast itself is supporting lng from russia, certainly complicating the situation the-to-has warned to shut down in nord stream 2. >> i think can you see the impact on price here in the under. we've been exporting -- we've had lower prices than we ever had here in the united states. there's no correlation between here of lng and local gas

prices actually a stronger lng will make a stronger u.s. producer. that strength will translate to allowing us to bring wells online for lower costs, more access to cheaper energy a stronger u.s. lng industry will allows you to provide energy security to the people in europe while keeping prices here affordable for all americans. >> very interesting. toby, great to have you here thank for all your time. >> you got it. still ahead, very different stories playing out in two luxury names that reported earnings today also, mastercard reporting retail sales surgeoned 22% in january, compared with 2019. what consumers were guys and why omicron wasn't enough to stop spending that's next. throughout history i've observed markets shaped by the intentional

and unforeseeable. for investors who can navigate this landscape, leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns. what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change.

faster. vmware. welcome change.

welcome back

the spike in covid cases not slowing down spending in january. courtney reagan is back with the details. hi, court. it canceled plans, but didn't dampen shoppings mastercard says retail sales rose 7.2% last month shoppers are returning to stores and keeping up the online habits, too. if you break it down into category, apparel sales rose by almost 38% in january, compared to january 2020. the cpi report noted that the cost of apart was more than 5% high inflation doesn't account for a 28% sales growth rate.

luxury jewelry was the stronger cat category, jewelry sales improving 20% in january, well outpacing the 6.5% rate of inflation. the conclusion seems to be that inflation is hot, but the consumer is hotter. >> do we now where they were spending if omicron was spreading the way we know it was, was there a big shift to online? >> they do give a breakdown. there was definitely growth? both those sectors, so the growth online was double digits. in-store, single digits, but that's a bigger piece of the pie. as far as sort of where -- we don't know exactly what retailer, but department stores, for instance, with a call out as a category that was pretty strong. >> it didn't help canada goose,

though. >> no, it didn't right now that is not helping. courtney, thank you. that does it for "the exchange." everybody. "power lunch" picks things up right now. >> welcome to "power lunch," everybody. same great show, same great price, not 75.% higher today no nosiree, it's not. it 50, 50 for 50 we'll back about the coming wave of stock splits. cybersecurity power play to discuss the battle against