>> popular -- >> sorry everybody, sounded like a word salad. everybody's talking over everybody. rob, has did you say >> we own a lot of the ent names. xops and some gas names, eog a few top picks coming into the year with you guys. >> less than 10 seconds? >> long energy for a long time. >> yeah. a favorite sector good reason. thanks, everybody. "the exchange" is now. thank you, scott welcome to "the exchange," everyone i'm kelly evans. what's ahead -- inflation soaring to highest level in 40 years, european central back more hawkish than expected stocks falling and investors reposition ahead of our fed. how is that affecting businesses ask the ceo. food and labor costs soaring how much more are customers willing to pay evs looking more attractive, if

you can get one and will be to pay up get into all of that, plus we begin with some of the stocks giving back yesterday's big rally. dom chu over with the numbers. >> red today and reversal, but haven't given back all of them not close. fraction of what we got in yesterday's session overall. dow jones industrial down nearly 400 points 1.25 declines here 32,891 and s&p 500 off nearly 1.5%. nasdaq below13,000 2% losses there. real undersized moves here in the nasdaq composite real under performer in the trade so far technology growth nasdaq trade could be driven in part, a lot of narratives out there, by interest rate picture. believe it or not, back up to 2% in fact, north of it ten year u.s. treasury note yield 2% last trade there. if you remember, about 206, high

for this recent round here 168 with the low again, tilting towards the high end of that range. people are again, getting rid of some of the safety of u.s. government bonds forcing prices lower yields going higher. see how long that lasts given issues we have with the war in ukraine and russia then stock of the day has to be amazon bucking the overall trend. very specific narrative goes along with this. at this point we know 4.5% upside for amazon driven in large part because of a buyback share program. and more the fact the company will split 20 for 1. quick and dirty math, $2,900 an change hypothetically when it happens driving big amazon trade many recent large cap tech companies that split, the near to medium-term performance after that has been generally to the upside including names like apple and tesla as well. tesla, kelly, see if that amazon thesis plays out like we think

with the previous example. back to you. >> now who's going into the dow, dom? contenders a couple dig techs tesla you mentioned. even nvidia. right? >> yeah. don't forget alphabet probably in the mix now as well you know, never know i'm trying to figure whether or not any of those -- who would be kick out is the big quirestion. >> i can think of a few. leave it there dom chu. what drove cpi this morning to a 40-year high of 7.9% used vehicles up 41% energy up 25%. food up almost 8%. how many of these factors are transitory and which are not joining me now, michael schumacher head of macro strategy at wells fargo and chief investment officer at huntington private bank. welcome to you both. chairman powell doesn't use the term transitory anymore. obviously, big contradicters especially on used car prices may moderate other factors picking up now,

though >> right kelly, good afternoon. this report was actually, by the way, before a lot of the commodity increase than we saw out of the russian invasion. actually more interesting on monday that producer price index. probably going to see a higher inflation print before it moves lower. that's our view. >> what does it mean for investing strategy >> sticking with our inflation hedges last year middle of the year, started with real estate small caps then in the bond portfolios, tips treasury inflation protected securities we saw last year, gold had gold at one time didn't work. entered that position. >> real estate, small caps mention a third and said you got out of gold? or getting back in now >> not getting back in third was in our bond portfolios tips in there. treasury inflation protectionives. >> absolutely. already competitioning for this environment. michael schumacher cpi report, way the bond market

racks better than anyone off 2% off highs of the session, i believe? >> yeah. interesting, kelly so many crosswinds, ukraine, fed right around the corner. difficult to pin a move in any one particular factor but we think the trend next few months up in yields. >> trend up in yields. i think everyone can get onboard with that, michael is the real story today basically puts more weight into the inflation camp than into the slowing growth camp? look what ecb decided. what do you think that significance is? >> interesting good point ecb comparatively hawkish. think, hey, a shooting war just outside of eurozone's borders. surely ecb will be dovish and really wasn't. bond purchases soon, not what the market expected. i think inflationary report for the u.s. underscores the idea that inflation's here to stay for quite some time. not going away soon. see additional pressure

upareward from surge in commodity prices making the fed's job that much tougher but puts onus squarely on inflation, much less on growth. >> on that note a bond auction of 30 years. hold right where you are bring in rick santelli rick, bonds selling off all day today. how does demand go >> tell you what not going to be selling off from this moment forward. at least maybe for rest of this session. because we had a stellar 30-year bond auction 20 billion 29 year 11 month, 30 year bonds and reopening issue from last month, and the internals were terrific 2.375 the yield at the dutch auction. one issue mark trading a couple of basis points higher okay lower yields, higher price spectacular pricing. metrics outside of direct bidding, just a little light given it an a-plus if direct bidders were higher.

indirect, favorite category, kelly, foreign buyers. at 71.5. best since july 2020. all metrics good jumps out, buffet indicator. how much do dealers take after investors are done 12.1%. 20-year data base 30 year auctions and couldn't find a smaller percentage of takedowns by primary dealers which investors took the bulk of the 30-year issuance solid a. and a little selling sting out even though sellings coming in strong back to you. >> ten-year hov 0erring just above 2% john, back to you. a fed you think are leeremain hawkish and tighten? >> yes we think they'll raise next week our economic team still at four rate increases this year

going to see how they start out. probably the next four, probably raise. then see what inflation does this summer. that's the view of our economic team hold with that, but obviously like everybody else, kelly, interested to see what they say next week. >> of course michael, your expectation for rate hikes at this point and what would you add for investors? what are the key points to be watching now as they sift through the inflation data and try to figure out if all recession talk was really warranted? >> interesting say the next few fed meetings, call it next three, 25 basis points per meeting about a given. really interesting, call it six months from now. fed looks at inflation path saying, yes. inflation's come down. come down fast enough? if so, maybe we pause for a little or slow down, but if not, we have to act more aggressively at this point we don't have a clear view how the fed will react and telling clients

there's a decent chance fed goes 50 basis points some time this year probably not until second half of this year our advice to bond investors is simple the jim story survive and advance. got out of trouble keep your risk low don't try to be a hero not in a market, not today. >> a good place to leave it. guys, thank you both for your time michael schumacher and john augustine. quick programming note, janet yellen on "closing bell" 4:00 p.m first tv interview since the war in ukraine began 4:00 p.m. eastern today. and talks between russia and ukraine yet to result in a cease-fire amid uncertainty seeing big swings in oil prices kayla tausche in washington with latest diplomatic efforts. brian sullivan with a closer look what it means for global energy prices. kayla, start with you. >> despite russia sending highest negotiator yet in foreign minister sergey lavrov

the kremlin is dug in in its position according to the ukrainian counterpart told reporters accept nothing short of surrender. cnbc's gamble wasn't equipped to broker anything else. >> definitely he did not have sufficient amount of authority to make any deals today. he came to talk, to listen, and very much regret, because it was, you know, more people will die because of his inability to make decisions >> reporter: in a news conference lavrov agreed, didn't come to reach a cease-fire deal saying "this is a life and death battle for russia's right to be on the political map of the world with full respect for its legitimate interests." in poland, vice president kamala harris says the nato reliance remains ironclad despite disagreement whether the u.s. would deliver the country's soviet fighter jets to recrane

harris adding aid and inside ukraine, a presidential adviser says the disruption topped $100 billion and human toll is climbing three killed after ukraine says russia bombed a hospital for women and babies windows blown out of that building a massive crater-like hole beside it. the white house warning russia may now use chemical and biological weapons as the war enters its third week with no end in sight kelly? kayla, remember the redlines former administrations drew about the use of things like chemical weapons should we expect similar tactics from this one? >> reporter: the administration asked multiple times if it has such a red line and learning from some of those past utterances have not outlined one as such. certainly they have pulled many economic levers in recent days president vladimir putin accused the u.s. and west of waging an economic war against it. it's unclear what additional

levers the west is willing to pull if, in fact, it goes that far. >> kayla, thank you. kayla tausche with the latest. turn to brian sullivan with oil prices volatile again today up 16% since russia began invasion of ukraine. brian, moderating somewhat >> they are. kind of, kelly, a rare calm day. gosh, shouldn't say that, because i probably just jinxed it for oil and natural gas after a steep rise last few weeks and very steep fall yesterday. all right. a lot gone on. where we stand now biden administration speaking through energy secretary at a conference yesterday finally asking u.s. oil and gas companies to drill for more oil. giving them political cover wir shareholder to do it obviously against the white house's original desires but call this warfing. this week, supposed to be the week a number of gas and oil ceo

grilled over climate headline today, biden's new energy strategy, drill, baby, drill. how many changed in a couple weeks. ramping up production in america, a very slow process conoco phillips and saying produce a bunch more oil, a minimum of 8 to 12 months before we see any kind of meaningful output a slow-moving train. not turning on its tap what about opec? coming to the rescue drama yesterday. ua ambassador wanted his country to add more oil to the global market problem is, that ambassador apparently didn't talk to the uae minister came out and countered the ua would stick with opec's plan stick to talking to each other rather than the market also iraq's oil minister saying current supply enough to meet demand looking like opec won't suddenly throw a bunch more barrels of oil in the market.

a lot of political talking behind the scenes, leave it a the that demand important remains strong more americans are driving driving bigger cars. if you can find $5 a gallon gas in california, the "new york times" san francisco chronicle says you're lucky. show you volatility how fast the markets move, show you this, kelly. this doesn't blow your mind i got nothing for you. the gas/oil contract what is gas/oil? basically european diesel fuel this reason showing it yesterday open surged nearly $1,700 per contract. highest since created in 1981. then collapsed to under $1,100 27% move from its high to its low. it's worse move since 1991 brent crude, kelly, traded in a 33 dollar range this week. need i remind you.

just over two years ago, oil didn't even cost $33 a barrel. if you're going to play in commodities, be careful. >> yeah. seriously. brian, reminded amid all of this, look togo peck for a solution about the conundrum a lot of u.s. producers are in, even if they try to produce more of that capex, takes a while what about investor base, only there because they promised discipline and just had a comment, curious what you think the takeaways are there and reminded of scott chef field quote in the financial times saying hard enough for us to increase production, but basically said we want to go to shareholder and ask for their approval. >> well, yeah. i mean, i think scott's probably the most listened to guy in the oil patch to be perfectly honest certainly the, by the way, only u.s. oil ceo i've ever seen at an opec meeting in austria keenly involved in the political stuff.

people think it's garage u.s. oil and gas companies destroyed a decade and did it largely to overproduced when prices were high, and tell what you it is. financing for new oil projects because of certain new rules and regulations in d.c. and some obscure agencies hard to get wall street banks are nervous to lend money for a variety of reasons. to invest in new products. don't just go out and drill. exceptionally expensive to drill for a barrel of oil on a global scale and when financing is cut off, then there you go need i remind you. an industry that for probably goodell or ill, depends on your views of oil and gas are, that we've had people calling for the jailing of oil and gas ceos. >> right. >> grilled on capitol hill this week called destroyers of the climate. now you can agree with that, but my point is, if you're now asking a group of people to help

out got to soften -- like here's how i describe it. a group of friends goes out to dinner, one guy really rich. badmouthing them constantly and expect them to pay for dinner. might say, remember the stuff said about you can we expect about it, i need you to buy dinner. kind of where it is. >> definitely comes down -- >> happy to be taken out to dinner anytime, by the way. >> definitely comes down to these companies, and to their investors base, all wanting to be onboard with this anyway, brian, leave it there. thank you for your time. appreciate it. brian sullivan. coming up, spike in oil prices creating more demand more evs, but constrained by supply issues of their own. up next, an analyst which has most to lose from a price spike in one of their key metals, and top and bottom line, talk to a ceo how this company is dealing with higher cost, and retaining

customers. a quick check on the dow down 347 points. nasdaq underperformer down 2%. red on the screen there. back in a moment. prise financi, our advice is personalized. based on your goals, whatever they may be. all that planning has paid off. . >> announcer: "the exchange" on cnbc. an make al. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial. ♪♪ making friends again, billy? i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪

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who isn't fluent in bureaucracy, or maybe not in their own emotions. so show up, however you can, for the foster kids who need it most— at helpfosterchildren.com welcome back to "the exchange." big spike in nickel prices turns

out to be a headache for chipmakers whose hairs already down 20% since january and on pace for the worst quarter since the financial crisis and headache for ev makers we have details. >> more than two-thirds of global mobile production used to produce stainless steel. how many products use steel from evs, electronics including semiconductors yet nickel is still not trading. halted across thelondon metal exchange and not coming back online until at least friday shouldn't go from $25,000 a ton a few weeks ago to over $100,000 a ton like we saw earlier this week actually the largest swing ever on the lme lme decided to retroactively cancel trades as well because of the margin calls so much of that jump, though, does revolve around russia russia's the third largest producer of nickel in 2021

any sanctions placed on russian nickel could cause ev manufacturing prices to jump further threatening asdopdoption deca decarbonization. and buying nickel on the cheap as a result of sanctions could further strengthen its globally competitive position or have other nickel producers step in like indonesia philippines. given those countries are farther away that could mean an increase in emissions. not very good news for that esg push right? nickel's abrupt price change could undermine the ambitious ev plan to put forth by many global automakers forcing investors to reduce expectations for automakers future earnings. >> thank you pick it up there further into the nickel price impact on evmakers a new entrant, down 78%.

down 61% this year and down more than 20% past week alone my next guest sticking with buy on the stock saying shares can more than triple in price from here managing director and senior semiconductor analyst at this company. what's the exposure to nickel in particular here? >> thanks for having me on, kelly. ev makers especially, nickel goes into the battery component. that spike in pricing obviously does not affect anything near term because the contract for nickel probably, the buy nickel probably in last six to nine months but does impact pricing and correction going forward we have seen ev makers raise pricing, but we also see supply side innovation allowing for that you are seeing some supply come on from different geographies

from outside of russia and cost inflation, cost affects pricing are cars et cetera in the supply chain. >> rivian down, and tesla lower, and rivian struggling to kind of produce that scale they just had to do a little about-face or price hikes for people already placed an order. what does this tell you about strength in the market >> rivian especially is in the right spot right? if you look at auto sales in the u.s. 35% in the u.s., pick-up trucks and suvs the right place. look at last ten years, grown to nine-person carrier. broader sedan market down in the four-person category in the right spot. growing pains. roll time back, tesla was in the initial stages 2012, 2013, took 16 months to get production on

the sedan. pick-up trucks, suv, argue, slightly more complicated. much more -- you know -- more complicated -- more complicated there, again, growing pains. the right spot, it's a huge market and we expect longer term. >> and not knocking cars always thought the company went public at $100 billion and change i think tesla went public at a couple million many orders magnitude difference it's going to take years could take their entire history as a publicly traded company to grow into that valuation. >> definitely. tesla was pioneer in the space and had to do a lot of convincing and to kind of establishing a whole new paradigm, whole new sector for the world, and consumers to go after. i think definitely benefitted from that, but what investors arelooking at is longer-term

where the market is going, going globally right? pick-up trucks, suvs, and the ev side definitely benefitting from that and now have to execute and on the road map so we think, you know, part of this is the right technology, having the right product and now it's getting the pieces in place to start shipping product out. >> quick final question. what's the most important thing on the call tonight or in the results? >> i think it will be how they feel about production schedules. how they feel about, see inflation side, and obviously the new product plan get the vehicles out and subsequently the next vehicle roll out after that. immediate focus should be on production schedules, and that

in itself brings registration back on the map. >> exactly all right. thanks for your time time. leave it there appreciate it. >> thanks. from mizuho. still ahead, mortgage rates on the rise after a brief drop what's behind the whiplash and surprising stat about homeowner wealth. ralph lauren and tbh vnl recovered from big drops earlier in the week, wedbush down graded on to much revenue in europe and how to position your port follow to weather volatility heading to break, a look at the dow heat map with most names in the red. apple, intel p&g worst performers we're back in a moment. re, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web.

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. welcome back to "the exchange," everybody markets in the red down 466 lows down 327 on the dow nasdaq worse performer down a little less than 2% terms of sectors energy back on top today. financials and tech biggest laggards financials down 1.5% according to the spoke, average energy stock this year is up 36% while the average tech stock down 17% that's a spread of more than 50 percentage points. don't see that often sticking with tech, china internet k web already doing poorly now on pace for its worse day of the year right now. some of the biggest laggards include jd.com, alibaba, jd.com worse pace ever with a 7% decline. more on the moves next hour in "power lunch." and cyber company surging on back of a beat on top and bottom

lines and issued upbeat guidance share best day since 2020 with 13% gain now to rahal solomon. >> happening this hour, ukrainian forces preparing for more russian attacks and in the port city of odesa, sandbags around the opera house and important areas covered in sandbags to try to protect them from shelling and air strikes. and senator schumer, a big push possibly tonight. many contains emergency aid to ukraine and ovaverting governme shutdown end of the week. and typical mopes starting over $1 million. tonight at 7:00 eastern. also, pop scar a second baby with boyfriend and tesla founder elon musk. the news out during an interview with her home when a reporter

from "vanity fair" heard a baby girl crying in another room. acknowledging, yes, she and musk had the child with a surrogate and that is short for -- >> apparently now reports maybe they have since broken up again. but now have a baby. >> i wanted to know the name rahal, thank you rahal solomon with all the need-to-know details. still ahead, licst of companies that stopped done business with russia continuing to grow and what are good investments right now. as we head to break, crypto lower across the board bitcoin falling nearly 7% after yesterday's big rally, and coinbase down as a result. we're back in a moment. matching your job description.

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welcome back to "the exchange," everybody burger king skechers and western union. latest in list of companies cutting ties with russia joining apple, starbucks, mcdonald's and

others some going a step further. not just stopping businesses actively with russia but working to aid those in war-torn ukraine. a list of companies helping ot like thand who comes to mind? >> looking at companies helping in ukraine a list of not only companies stepping up in the cybersecurity space, also companies that are helping with transportation, wages in addition to food and helping get supplies there to the people who desperately need it. when looking at cybersecurity overall. that's a great place to start. just because not only has this been an issue in the past, and it's going to be in the future, what's really unfortunate about what's happening in ukraine is that people are taking advantage of the situation they're taking advantage of charities and powerful companies both in the u.s. and worldwide,

specifically microsoft, amazon and cloudshare, using capabilities now to help those in need just because they want to. >> kind of the option for the, let's take the defense trade a trade that basically people say, okay. jumping into something that will basically do well if this situation continues to deteriorate. saying, look at some companies that could help, ameliorate the situation, tesla comes to mind right? >> correct see, the facts of the matter is, yes. you can short the nasdaq and yes, can buy the war stocks, ways to make money i've been hearing from investors they just don't feel right coming in and shorting the market and taking advantage of all the pain and suffering what they want to do, look for ways that they can invest in companies that are actually out there helping. tesla is a great example and i do believe elon musk really spearheaded this effort, because historically, kelly, private

companies don't like to take positions when events like this occur, because they don't want to alienate any customer base. but elon musk was one of the first ceos that came out and said that he was going to use his companies, both spacex and tesla, viastarlink to help those in ukraine provide starlink terminals so those in ukraine could have access to communications and the internet tesla, on the other hand, even though they don't have a presence in ukraine in particular they have tesla owners and charging stayses in the country surrounding ukraine. so he has opened up those charging stations so that not just tesla owners but also all ev owners can get free charges so they're able to flee what's going on currently things he didn't have to do and

it start add movement with other private companies. >> let's talk as well about a group of names more in the cybersecurity space here cloudflare, amazon, microsoft. what makes these stand out to you as investments where people could, you know, have exposure to kind of them trying to do the right thing in this environment? >> so you know, it is partly wanting to do the right thing but also about the fact that these are strong companies and part of the reason why they're helping is because they can. because they have resources, because they have the talent when looking at microsoft, most people wouldn't think of as a cybersecurity company, but the president right now brad smith has started and initiative where he's working on putting $20 billion of investment over the course of the next five years into the cybersecurity space really interesting about this is, he's not just investing in microsoft. he's really trying to spearhead

an effort of education trying to point out the fact that this is a very growing industry that we need more educated people in, and he's working to use the platform that he has to not only educate cybersecurity people within the u.s. but also with ukraine published a variety of logs to help people in ukraine to effectively ward off cyber attacks. >> yes for traders looking at these opportunities, saying there is a lot of long-term brand awareness like for airbnb another stock mentioned could be created by these efforts. halo effect from now on and with mcdonald's, getting a lot of investor concern now over what the next few years will look like without the russia revenue they were previously expecting you think some of their efforts in ukraine could be a boom >> yes

look at a mcdonald's chart absolutely falling fact of the matter is mcdonald's, like these others, they are strong companies. microsoft, amazon, you know, mcdonald's they've done really well in earnings mcdonald's in particular have a strong dividend. while it's falling now i believe it's going to hold around this $200 price point giving it more down side, but when this news wanes off, i believe that mcdonald's is going to recover i meean, right now what they're doing, assisting through their ronald mcdonald house in poland, ukraine, boots on the ground getting people the supplies and refugees the lep they need also continuing to pay their employees. not just in ukraine and in russia investors will look at this and say, wow that's going to impact earnings. on every single one of these that's the truth, but these companies also would not be doing that if they couldn't handle it. same goes for airbnb.

>> great point danielle, appreciate it. a basket of plays here for people who want to approach this differently. appreciate your time, as always. >> thank you. still ahead, companies with european sales exposure like facebook and booking holdings under pressure again today goldman laid out names to avoid and ones to buy if exposure to europe is a concern as the ukraine invasion persists. more on that, next. as we head to break check out the mega caps hit today. tesla down 5.5%. lagging. lagging. back in a moment. am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league! (ted) after talking and texting for years, we got married...

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do you think any of us will look back in our lives, and regret the things we didn't buy? (camera shutters) or the places we didn't go. ♪ ♪ welcome back, everybody. both u.s. and european stocks lower since the ukraine invasion s&p down fractionally and french index fallen almost 9% goldman-sachs laid out a strategy if worried about companies with european exposure seema mody has names to buy and ones to avoid.

>> the report getting a lot of attention. buy stocks generating more sales here versus europe takeaway from goldman's latest report as more economists slash gross outlook for europe latest estimate now 2.5% for this year compared to the 4% target earlier this year before the conflict started goldman eyeing names like chipotle, target, verizon, all three faring better than the s&p 500. retail one of the few sectors moat of their sales are made inside the u.s names like roc stores, dollar general and home builder dr horton as well stocks with high exposure to europe include meta. 24% of sales derived in europe ab accenture on the list and philip morris plans to exit russia but has about 49% of sales in europe and shares down about 7% so far this month overall, europe is the second largest market for s&p 500

companies. followed by asia the other question, of course, over time whether this conflict, how it plays out and if it will push more multi-nationals to scale back their investment across europe. that type of clarity will likely get during the next round of earnings. >> any international markets goldman was bullish either as a result of this or sort of if looking for other places to put that money to work >> interesting at the msci reclassifies russia sees more forward inflows into brazil $14 billion since december in fact, the best performing global market so far this year up about 10% a lot compared to where the s&p 500 is sitting clearly due to the rising commodity prices seeing. one market starting to see more strategists put calls on still need clarity how the market will take advantage of the rise in oil prices. >> glad you brought up brazil. what mark recommended. brazil -- >> on monday. >> yeah. southeast asia as well could be relative holdouts.

thank you, seema mody. still ahead, shares of portillo falling on disappointing results. the company hiking prices. talk to the ceo about cost headwinds and whether customers will continue to pay up. will continue to pay up. that's next. rcia's, love working with you. because the advice we give is personalized. hey john reese, jr. how's your father doing? to help reach your goals with confidence. my sister told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything.

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welcome back, everybody. shares of the fast casual chain portillo dropping today on a wider than expected loss and remember nhu miss down menu pr% and this year. so what does it mean for the business joining me now in an exchange exclusive is ceo michael osanlu. great to have you back. >> thank you for having me. >> i think we talked maybe around the ipo appreciate you coming back when i'm sure you're not thrilled but stuck in a quagmire. talk to me about how you navigate this environment. >> i think you said it perfectly well trying to focus on the stock price in a market like today is insane we worry about fundamentals. fundamentally what i want to do

is make sure portillo is an amazing experience for guests. people are pounded with price increases everywhere we want to focus on amazing value proposition in a great setting with great service and great food in the longer term that will take care of everything. right? the foibles happening right now with commodity prices and labor costs will mitigate but the demand is important to us and protecting it. >> we talked to the ceo of dine equity yesterday he talked about the prices they're passing along and the ones they are not. they say it's an opportunity to hold back and maybe gain some share. how would you approach this? >> ironically enough very similarly. we are pricing below inflation we are just a hair below

inflation. speaking to a consumer the value proposition is stronger. that's our intent right now. we are not going to shrink portions, gouge people on prices we take share and when the hubbub with fuel prices and so on mod rates we feel like that's the right time to clean up the advantage we have is we were very strong p & l. we make money and can protect the team members and guests. >> can you give us granularity on the good input costs? the ukraine invasion hit and seen the spikes in wheat and different things what are you guys experiencing >> the biggest variable that hit us is really fuel prices right? energy costs every single

portion of thecommodity chain. right? the processing of the beef is more expensive and shipping. fuel costs caused pain and we are seeing spikes in cooking oil up 40%. >> wow. >> this is not unique to us. it is just part of the industry right now and i think right now as we look at it it's probably the most stark moment in time. i hope over 30, 60 days it should mitigate and figure out what happens with gasoline prices. >> final question. to your point if we're still talking act this in three month's time, god forbid, labor could definitely remain a challenge. how tight are labor markets where youlook to add people? what's that doing for wages and having the team the size you need it? >> one thing i think separates

us from the others is view labor as a cost but an investment. those are the front line team members that give guests a great experience so we opened a drive through only restaurant in joliet, illinois, and opening a full service restaurant in st. petersburg, florida. hired 100 people in illinois 120 in florida i think it's because we are paying a fair wage we have great benefit suite and invest in the people if you have the right value proposition for people they will work for you. >> the best anecdotes in the restaurant industry. thank you so much for sharing with us. great to have you on today. >> thank you. up next, eight, that's the

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welcome back mortgage rates spiking over the last few days with the march fed meeting less than a week away. diana olick is here with a look at the moves. >> the recent drop in mortgage rates was short lived. the average on the 30-year fixed is 4.28% a full percentage point higher than a year ago. this after falling to 3.9% when the russian invasion of ukraine began sending investors to the safety of the bond market. but inflation concerns and expected policy changes from the federal reserve overrode

everything else. home buyers face the tightest, priciest market in history but the inventory of homes did see the fifth straight week of improvement last week. national list prices hitting an all-time in february are rising at double digit pace and 8% of homes at million dollars that's up from 4.8% just two years ago. kelly? >> we have million-dollar homes. more people making $100,000. is this going up in real terms or does everything just cost more dollars >> if you have higher mortgage rates and less purchasing power how much cold water does that throw on the prices? we hope a little bit but the prices just keep coming up and if people can spend it they will. >> any sign of a turn of the

corner in the inventory level? >> we have steady gains. going into the spring when the most people list still way down from a year ago and historical levels. >> thank you for now appreciate it. that does it for "the exchange." "power lunch" picks things up right now. ♪ welcome to "power lunch. i'm jon fortt in for tyler inflation, war, rising rates head winds for the market and potentially one more slowing earnings growth. king dollar. dollar index hit the highest level in two years and putting pressure on companys we have the names later this hour kelly? >> thank you the dow, s&p and nasdaq down for the fifth time in six days sec an