cash >> and sarat >> comcast multiples down to 11 times earnings i expect a strong quarter with good cash flow from the cable subs i'll see you in ot the exchange is now. welcome to another ugly session in the day the nasdaq is down 5% in two days the s&p is below a key trading level and the dow transports are down almost 20% from the highs late last year so what's the play book now? we'll ask. all of this as we await the fed's minutes from their last meeting just an hour away. the markets are bracing for a very aggressive fed. what are their plans for the balance sheet and for rate hikes? we'll try to get some more

clarity. and we've got the pulse of teenage america. what they're buy, eating and sharing and how to trade the trends, but first, let's get right to dom with our market >> as you mentioned, an ugly day right now. we're drifting toward the session lows as you watch the nasdaq composite now below 14,000 they were off roughly 2.5% the s&p 500, 4467. down 58 points about one and a quarter percent. the dow industrials 44,395 the outperformer you can see that and the underperformer for the naz zach composite, the tech trade is a big focus the reason the nasdaq is underperforming is because the biggest members of that particular index and even the s&p 500 overall are underperforming today. apple down over 2 %. microsoft down 4 % alphabet, the parent company of google down 3% tesla down 5 %

the five biggest companies in the nasdaq and s&p 500 are drifting much lower than the broader market that's the reason why you're seeing the underperformance, and because of that, what's actually causing it there's a plethora of different reasons but interest rates are a big part of the discussion if you look at the difference between two and ten-year treasury yields, the ten-year, two-year spread, the idea the spread is flattening the difference between yields on the ten-year versus two-year to give you an idea of where we are, the ten-year yield is about 2.6% right now and just about 2.49% here overall for the two-year if you take a look at those numbers, that's the reason why we're keeping a close eye on this as interest rates rise, it takes a little bit of that valuation out of the market, because the assumptions change for how much you're willing to pay for risk if treasury bonds and treasury notes are yielding

a certain percentage higher. we'll keep that in mind. i'll send things back over to you. >> a ten basis point spread is nice it's like 18 points a basis points of steepening >> and on that note, given that the two-year ten year yield curve, whatever you want to call it, it has uninverted. it is fed's hawkish talk about shrinking the balance sheet working? steve liesman is here with more. >> kelly, markets are as you say bracing for the release of the minutes of the fed's march meeting. it's expected to provide new details about the plans to reduce the balance sheet they come a day after the fed governor prompted this ongoing selloff here in bonds and stocks with warnings that the plans are likely to be very aggressive this remainder what brain ard said, they're going to begin as soon as may. it's going to be a rapid pace of runoff that includes large caps or limits how much they'll allow to run off those will be relatively high.

the ned more than doubled the size of the balance sheet to $9 billion. it's going to let the portfolio run down by not replacing maturing securities. here's the march meeting $73 billion a monthly runoff rate 540 billion in 2022. near and over a trillion in 2023 and then in 20 24. brain ard's comments about the rapid pace, they have some thinking the fed could boost it up to 100 billion a month. that's the high side or double the pace of the last runoff in 20 17. it's too early to say the effects of an aggressive runoff like this. it has, indeed, steepened the curb, but that could be in anticipation of some technical aspects of quantitative tightening of which we'll learn more in an hour, we think. >> a quick question, have you heard any public -- real discussion by fed officials

about selling assets or would this be runoff >> no. it's a great question. i'll try to give a quick answer, but brainard did not say passive or runoff in her speech yesterday. but i still think the fed has pretty uniformly talked about being passive and just through runoff and not through asset sales. again, i could be proved wrong in less than 60 minutes from now. but that's been the rhetoric to this point, and i expect it to stay that way. >> that was my sense i appreciate you confirming that obviously we'll watch for any big change there, and we'll see you then thank you very much. our steve liesman. perhaps nothing better illustrates the ka dun drum than the fact that the expectations have risen even as officials have become more hawkish joining me the deputy dean for executive programs at the university of chicago. it's great to have you here. what would your message be to investors at a time when your

former colleague just said the fed basically needs to sink the s stock market >> i wouldn't say it needs to sink is stock market i think it needs to maintain the credibility on inflation and perhaps increase that. so as you mentioned, inflation expectations have started to move up. but they don't -- they can't let them move up too much. if they wait too long and aren't aggressive enough, the expectations start to move up. you get into a late 1970s situation. you have to remember the last time inflation was this high 40 years ago, paul volcker raised short-term interest rates to double digit levels. that's going to sink the stock market and the economy >> what bill is saying is the fed is going to have to inflict more losses on the stock market in order to tame inflation do you think that's right? let's look at the landscape since they started this hawkish pivot, and we've seen five-year break evens move higher. the ten-years are holding

roughly steady but moved up this year real rates are deeply negative his point is the market is not reacting as if it's tightening granted, the last couple sessions we've seen a bigger change in tune >> yeah. i think it's going to take a while for the market to digest all this and we still don't know exactly what the consequences are going to be for the broader macro economy. remember, we have an 8 % inflation rate interest rates are near zero they probably will go to 2, 2 .5 that's still a very negative real rate and inflation adjusted rate so it may be that even if the fed gets to 2.5%, it doesn't have to tank the stock market, but it will slow growth, and i think unfortunately they have to risk the potential of a recession. >> yeah. i mean, goldman's call is still we're only going to see 1% to 2 % of gdp growth. they said it might not be slow enough to bring down basically

wage inflation so the risk is they need to do more trillion dollars a balance sheet reduction. does that sound right to you mechanically, any concerns on that front >> well, i think the key thing the fed has to think about is to make sure markets continue to function we've seen some -- when they originally intervened in march of 2020, the treasury market wasn't working it was extraordinarily important for them to intervene to try to destabilize the market so they need to bring the balance sheet down and i think relatively rapidly they have to make sure that markets function that's different from where the markets are going up or going down they just to with able to make sure they maintain the liquidity. and that's the key thing they have to look at as they bring the balance sheet down >> and we're looking at numbers that suggest they could be reducing it by a pace of about a trillion dollars a year. these are enormous numbers, and some will be reassured and they'll look at the yield curve and say this is what the market needs. let's get the fed out of that market and kind of let the

normalization happen, and others will say we have no idea how markets will react to this and we could see bigger dislocations from this and from rate hikes i think you're also in the half point rate hike camp at least multiple times. >> the fed needs to move they've been slow to get to the party. and now that they're at the party, they have to get moving as i said, you don't want inflation expectations to get too far out of control that's what happened in the late 19 70s that means you need to raise rates extremely high they need to raise rates more rapidly now to try to avoid something that's going to be much more of a crunch later on and that involves both interest rates increases and the rundown to the balance sheet and then as i said, they just had to be aware of making sure to maintain market functioning because we certainly will see more disruptions whether it's like what we saw in the nickel market in london metals exchange, potentially what we saw a few years ago with the treasury securities markets.

they'll be aware of that, but they need to bring it down >> those are absolutely important points my final question and this is one i hear a lot as we start talking about the fed getting hawkish and the mortgage rate above 5% now what would you say to members of the public or the investing community who say why can't we just sit back and wait for the inflation problem to resolve itself why does the fed need to what appears to be to a lot of folks go out there and worsen the situation right now? >> well, they're not worsening the inflation situation. we have as i said, we have inflation around 8%. we have short-term interest rates near zero. ten-year rate around 2.5% and mortgage rates at 5% given that inflation rate is so high, you're actually borrowing at a negative real rate, inflation adjusted rate. and so as i said, if you don't want a major crunch like what happened in late 1970 s, remember, the housing market performed extraordinarily poorly for a very long time period

after that it wasn't just a few years, but for a long time after. so i think it's much better for homeowners to deal with slightly higher interest rates now or somewhat significantly higher interest rates now rather than super higher interest rates down the line that could really crunch the housing sector for a long time and put the economy into a tail spin >> and you don't think inflation could come down on its own without the fed pushing it harder >> inflation -- the risk is that inflation expectations move up they've already moved up as you mentioned. and if they move up further, there's no way they can bring it down without their actions this is not just about supply chain issues display chain is very important. but there are a lot of other factors, demand factors that come in that the fed has some control over wage demands come from what people expect things to be how things are going to be prices have gone up 8 % on

average. and for many households, especially lower income households rely much more on expenditure on food and energy much more. so they're going to demand higher wages if the fed doesn't act to maintain credibility, that could make things much worse down the line >> we will leave it there as we await the minutes next hour, and look forward to the market's reaction to that randy, thank you for your time we appreciate it >> of course with university of chicago booth school of business all right. what's the play book for this market flashing plenty of warning signals from the tdow transports to the defensive rallying. my next guest is finding opportunities in big tech, president of potomac wealth advisers i saw your shaking your head these are confusing times. >> it's not easy if you want to make investment decisions mace basted on the headlines and look for the next week and have a certain outcome. it's more important to realize

that on down days like today you have to take a 12-month oh risen or longer. when you do that you look at an economy that's going to slow down, and that's largely because of what we heard about, the fed action, and the trilogy of actions they're taking not buying bonds, raising rates, letting bonds roll off the balance sheet. that's a trifecta of factors that are going to slow the economy. but the question is does that cause a major recession? we don't think it has to not all recessions are created equally. investors need to look out longer term and when we do that, we think there's some opportunity in stocks for those investors. >> i like the way you're threading the needle here on the consumer at a time when people are debating discretionary versus staples one thing we know is people are traveling and your picks h hyatt, hilton and marriott >> i've been doing a lot of traveling. these hotels are full. now, albeit, it's weekend, business travel hasn't come back

as much as we like, but it will. that's a pent up ndemand family celebrations, weddings, team events, sports, travel soccer, you name it. people are out there filling up these hotels and these hotels are running far more efficiently as well technology during covid has improved their operating efficiency the expectation from consumers has been lower in terms of the in-room service and that lowers the cost structure and i think you can't underestimate when you give people lockdowns and fear of death with covid, how much they want to get out and spend and how much they want that human connection and we think travel will return. and business travel will return. and that's why we like the travel sector. >> another kind of safe spot you think is going to be big cap tech which you add service now you're a fan of bill mcdermott can you end with a word of advice for investors looking at the losses in bonds in the market, you know, whatever we're

going to hear from the fed next hour and beyond about tightening, and explain to them why they shouldn't just move to the sidelines or be long commodities or use their money to short bonds or any of those other strategies >> well, we don't think most investors should take anything on the exotic side where the risk could backfire. they have to look longer term. that's another reason why we like big tech and growth stocks. they're generating cash flow they are leaders in their field. there's some stability there there will be volatility with all stocks invest in quality, quality, quality, and stick with your plan not to react. if you do have a bond portfolio, i don't see anything wrong with selling some of the bonds now, waiting 30 days and get back in. capture the tax losses while you can. that's something we're trying to do for clients, and i don't think in 30 days you're going to see bonds much lower so you can probably buy back at or around the price toints and pocket a significant tax savings

going forward for those equity gains that we hopefully get in the future >> very interesting. a lot of different kinds of strategies that this environment uniquely might be a fit for. mark, thank you for your time today. >> good to be here still ahead, oil executives facing tough questions from lawmakers about whether they're using the war on ukraine to price gouge at the pump. up next, zeroing in on the price of crude and the cost of gasoline we'll tell you what retailers and tech companies are poised to win overgenz the exchange is back after this. ♪♪

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glnch energy doing so well this year it's attracting plenty of scrutiny from congress it's the best performing sector of 39%, outpacing every other sector to the market energy stocks are three of the five top ten s&p gainers this year oil is slipping today following a surprise rise in u.s. crude stocks and 120 million barrels are ready to be released, now executives from chevron, exxon,

pioneer, and bp america are facing lawmakers are gasoline prices near record highs the chief investment officer of pickering energy partners joins me any event risk, dan, maybe not today, but in the months to come around this hearing? >> i don't think so, kelly there's a lot of political theater going on the democrats were bashing the industry the republicans were bashing biden. the industry's highlighting they want and are willing to spend money. i doubt that there's any meaningful impact out of these hearings other than a lot of good social media content for everybody involved. >> crude is below $100 a barrel, wti on the iea release which itself doesn't do much to put a dent in global oil supplies but oil is trading as if it does what are your thoughts on that >> well, the sbr release brings more crude into the near-term supply picture it likely pushes that tightness

out into the out years so the spr releases are having the desired effect, bringing down oil prices. that should bring down gas prices the ultimate refill of those spr reserves is going to create demand in the future so i think we've pushed the problem out not necessarily addressed it permanently >> it's almost like you trade the near-term bearishness for a structurally more bullish case energy has since we saw it spike to almost 120 and 130 range, we've seen the oil price settle down should we expect it to stay more in this range? >> well, i think that we're now adjusting to the fact that we may cancel a number of the russian barrels. the ukraine conflict does not seem to be escalating beyond where it was and so the answer is that 130 up side move unless the economy accelerates dramatically, pushing demand up higher or there's some physical supply disruption event, then we're

probably in this -- i think about the next five years at 80 plus, and the next couple years is going to be 90 to 110 i don't think it's a 150 or $200 environment. >> sure. and anyone who got in at the very highs, probably has to grapple with that. in the meantime, there's strategic ways you see people can play the energy space. what are those >> sure. and i think the issue is as it relates to crude, it doesn't need to be 150 or 130. these companies make a lot of money at $100 a barrel or 90 or 80 so we like the oil field services space on the view there will be more drilling activity schlumberger is one we like. permian producers, diamondback energy, devin energy as well so we like those names gas probably hasn't had enough respect over the last year it's starting to get respect now. eqt is a way to play that on the producing side >> natural gas is going to be

the talk of the decade, i feel whether we're banning natural gas hookups or relying on it as a bridge fuel or everything between. thank you for your time. we appreciate it >> thank you >> dan pickering with pickering energy partners. jet blue making a bid for spirit airlines and the stocks are slumping sharply as a result we'll ask the former continental if it makes sense. and has crypto become miami's new vice we'll tell you what people in town are saying as crypto, bitcoin in particular retreats from last week's levels. it's down 9% in a week we're back in a moment welcome to ameriprise. i'm sam morrison, my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors the garcia's, love working with you. because the advice we give is personalized. hey john reese, jr. how's your father doing?

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we're just off session lows. once again the big action is over there on the nasdaq which was down 375 at the lows down 344 right now the two-day decline to about 5%. here's what's dragging down the nasdaq as all three are under water right now. especially nvidia, down almost 7 %. names like data dog, atlassian down 5%. and qualcomm, marvell, on semi with declines anywhere between 3% and 6 % the smh etf is on pace for the worst week since january here's the trio of dow components with all-time highs

j&j, walmart, you nighted health all-time highs for these stocks but the sectors tell you a lot about what kind of market we're in let's get to seema now for an update here's your news update. earlier this hour president biden announcing a new round of sanctions including a ban on u.s. investment in russia. biden says the sanctions on russia are expected to cut that country's gdp by a double digit percentage this year >> together with our allies and our partners, we're going to keep raising the economic cost and ratchet up the pain for putin and further increase russia's economic isolation. >> on the news, team coverage of the new sanctions and a report from poland on how one entrepreneur is helping ukrainian refugees get back on their feet that's tonight at 7:00 eastern meantime the academy of motion prk arts and sciences moved up the board meeting to discuss sanctions against will smith for slapping chris rock

for the awards the meeting will happen this friday it was originally scheduled for the week after nec lob gibbs has announced he will retire. that even as primary moting is underway he says he is a casualty of a circus over ohio's still unresolved congressional election map >> thank you very much still ahead, the teen trade. we look at where young people spend their money when it comes to food, clothing and tech this is one of the top stocks down more than 20% in the last three months the name might surprise you. also another look at oil falling to session lows as we see pressure across the markets. again, the iea out there talking about 120 million barrel spr release from for countries, not just the u.s wti crude below 98 a barrel. we'll be right back.

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welcome back to "the exchange." what do teens want we got some answers today. piper sandler reached the biannual teen survey

we have the retail names and favorite restaurants and tech plays, and also trades on all three. welcome, everybody i feel like i'm on nickelodeon right now. courtney, let's start with retail what clothes are the teens buying? >> kelly, i love this survey it always gives us a little glimpse into the teenage mind and often finds insights we're aware of here first. so let's go through those favorite brands. nike again, number one for 11 years running for teens. american eagle solidly in the number two spot. lululemon and crocs are both gaining share for teens in that list of favorite brands. it's also worth pointing out aka brands, a relatively newly public stock it owns princess polly that's moved up from number seven to number three with the females. when it comes to beauty, spending is up 10% there year over year. that's more than the total spend

has increased. skin care matters, cosmetics matter, but really clean ingredients, science-backed ingredients. that's what teens are looking for. they like ulta when it comes to where to buy the beauty. eyes, lips, face is their favorite brand for makeup. and olaplex is favorite when it comes to hair care there are winners and those that are less cool. so vans which is owns by vf corp. is starting to use a little bit of share with teens as well as amazon. it's still number one for the top e-commerce site, but with other upper income females, they put it number one only at 35% instead of at 47%. it's lost 12 percentage points and then onner com by and hollister are always names that start to lose favor with teens around this age and gap and old navy as well when it comes to losing cool. if i could, we have to talk about the trends this is where i learn something

new every year so good news crop tops, they're falling out of favor they're number five when it comes to cool trends yeah instead of number two. however, jeans are actually pretty popular still mom jeans, flares and boot cuts which reminds me of high school. and when air forces and perms for the females, and then for men, here's a good one short shorts those almost made the list almost number ten for the men let's watch out for that this summer lululemon also gaining in popularity for the men, as well as mull ets, perms and long hair ryan reynolds, number one celebrity. that feels about right to me >> we're going from the 90s back to the 70s almost at this point. i love it. thank you. and aka brands, i was not as floor with as a name on the retail front how would you trade all the results courtney brought us? >> thanks for having me back

short shorts that's scary you don't want to see me in short shorts i think for me we were holding top names. nike and lululemon if you look at nike, a lot of the retailers right now are obviously handling supply chain issues they're handling production cost increases and the companies are handling it the best is the ones we want to own nike has been doing a great job when it comes to handling the areas. and the brand is still strong. the top brand i think a little bit has to do with some of the brand names they have as sponsors if you saw lebron james is one of the names and someone they are partnered with we look at those areas one thing that surprised me is american eagle aeo. that's not a stock we own, but that was popular when i was in high school, but i didn't know it was still holding popularity. it's dislocated from how the stock is trading that's interesting to see. and lululemon doing well, a surprise up side for analysts on the last report showing strong

demands and handling the production cost issues those are some of the areas we're looking at right now >> maybe you'd take a look at ae, but lulu and nike you feel safer with try to stay safe when we're talking mull ets and short shorts let's see if restaurants have as many surprises food the top category for spending for teens >> that's right. and no big surprise. teens love their food. when you're looking at upper income teen for male teens, it's the number one priority. not a shock. for female teens, it's number two only after clothing. so it remains important year after year now, regardless of income, here are the top five brands for teens. number one, chick-fil-a, starbucks, chipolte, four, mcdonald's, five, ol iive garden chipolte moving up a rank and starbucks holding steady at number two not a shock as well, the teens prefer limited service brands and interactions like quick service, fast food chains to the

sit-down names which is why i said olive garden was more surprising to me overall restaurant spending is about in line with what it was last spring it's still precovid in terms of spending levels but there's room to grow. teens are missing interacting in person and want to get together with friends there's room to grow there bun other interesting nugget, plant-based nugget, i guess, bad joke sorry. forgive me interest in plant base meat is waning for teens they're not as interested in trying it, but if they are going to have it, they prefer impossible foods to beyond meat. >> that's been a stock story kate, thank you. delano, technology is an underlying theme her starbucks, mobile ordering driving orders there chipolte same deal what do you do with olive garden and owner darden >> i would say with olive garden, i'm fading that trald. i'm noticing a limited service trend that's happening

starbucks now, you see the baristas working on not only the insta orders but a lot of times occupied by mobile orders. starbucks, the mobile orders is about 26% of their total order it's increased incredibly since 2017 it was pushed forward through 2019 that limited service is a big thing. so we're really in the names the starbucks, the mcdonald's. where you're seeing the faster service and maybe that drive through service. rather than kind of this i think there's potentially a play for them, but we're fading that we think the speed and convenience is a bigger play right now in this retail space, especially among teens. >> especially for millennials with toddlers. let's move to tech and the story here is simple it's all about tiktok. still, there might be a bright spot for meta. steve has the trends for us. >> that's right. two slices really stuck out to me in this teen report one is tiktok is now the favorite app or social media app

among teens. surpassing snap chat for the first time and then followed closely by instagram and facebook, a distant fifth. no one is using facebook that's for their parents again, as far as engagement, though, you have to -- it flips around and instagram is the most used even though it's not the favorite app, the kids are still addicted to it that got me thinking about the stories we heard last week about meta hiring that consulting firm to plant bad stories about tiktok it also speaks to the energy and investment behind the instagram clone of tiktok called reels which is really where all the effort at the company is going right now. on the meta-verse side, this was surprising for me. it was more than a quarter of teens say they own a virtual reality headset. that was a really high number, and, again, it points to that when there's new technologies and gaming experiences come out, the kids pick it up faster, but they get bored with it quickly

only 5% of the quarter using it say they use it every day. so sure a lot of people own it, but they're kind of collecting dust on shelves. >> like their fake meat in their vans >> that's right. >> kwloez that out for us. are you a buyer of meta here >> yeah. we're still holding meta i know a lot of people, and the market has been fading m meta stock, but engagement was mentioned. that's still a big part people have to look into it we talk about advertising revenue. one of the big metrics that's looked at is engagement. instagram is showing high rates of engagement and monthly usage. tiktok is a favorite for teens as far as quick videos, but i think there's something to be said there there's high engagement and a family of apps they're looking to shift toward that immersive play. it's going to bode well if you have more users.

maybe we could use tiktok, do a coordinated dance. i'm just not on it that much >> i don't have the energy if i were 15 when it came out, i would be all over it, but these days, it's a lot of work i would absolutely be a consumer of your tiktok dancing content we'll leave it there, everybody. thank you to all our guests for joining us i learned a lot. the rate on 30-year fixed mortgages climbing again the number and what it could mean for the spring selling season and the move having a huge impact on housing stocks this home builder in a new 52-week low. we'll vereal the name and the other companies taking hits right after this our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated.

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welcome back yields are rising. demand is falling, and we're seeing a huge impact on the housing market with much higher mortgage rates, and potentially much weaker demand looking at mortgage applications. dr horton was the mystery chart.

it's fallen to levels as home builders take a hit. down 3% today. diane as the latest for us >> well, the average rate on the 30-year fixed moved even higher today. now up to 5.08% after just crossing into the five handle yesterday. and this is all according to mortgage news daily which runs these obviously daily others like freddie mac and the mortgage bankers association are weekly averages. they're going to show lower. the rate is up over 160 pay sis points from a year ago no surprise. we got this scary number this morning. total mortgage demand is 41% loeter than a year ago that is what fast-rising mortgage rates are doing to the market refinances dropped another 10 % last week. now down a stunning 62 % year over year. that's the lowest level since the spring of 2019 mortgage applications to buy a home fell 3% for the week and

were 9% lower than a year ago. a strong job market is keeping the fire under buyer ndemand, bu the supply of homes for sale is tight. none of this is making the builders happy the itb down about 2.5% on the day. down over 30% year to date and mortgage companies which were on a massive hiring spree just a couple years ago are now on a layoff spree. names like movement mortgage and loan depot's ceo told me in february he expects to see layoffs as well. >> and now black night may be in play there's a lot of action year diana, thank you jet blue willing to pay a high price for low cost. why it's entering a bidding war for spirit airlines and what the offer means for spirit's plan field for frontier as all three oc are under water today we're back in a moment ♪ ♪

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this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. welcome back to the exchange it's a bidding war for spirit airlines jet blue making an offer to buy them in a deal valued at nearly 4 billion. that trumps the agreement with frontier jet blue down more than 7%

raymond james putting out a note lowering the rating on jet blue to just market perform this increased uncertainty following the offer. evercore downgrading spirit to in line saying they don't anticipate a higher offer. they think the transition to jet blue's brand would result in lower seat density and higher price sales. what impact will it have on the competition? a former continental airlines ceo and cnbc contributor is joining us gordon, does jet blue's move smack of desperation here? >> i don't think it's desperation. i just think it's strategy you know, what happened while you were making other plans. this kind of opened their eyes that we need to do something strategically. i think they need to get the mass or their presence in the marketplace up this is the best way to do it.

>> "the wall street journal" as a best and worst airlines survey jet blue fell over the last couple years what's happened to that brand? >> i think you've seen a shuffle at the top with the ceos there's always management that's really really responsible, but it's discipline, kelly. they came out with a really good airline, i was very skeptical in the beginning. but for success, and i think it's a good airline, las a good presence in new york and i think that would probably do wonders for them along the east coast. >> i mention all of this, most people would say why would jetblew dilute its demand, but frontier and spirit have moved

up a bit in terms of perception. jetblew is bottom of the barrel according to the "wall street journal" survey. even american has fallen a lot would a spirit tie-up makes more sense? >> they're not sitting still united announce -- if you want to compete, you better have some muscle they adopt have enough to survive. jetblue doesn't, and they're going to do something about it i think it's a smart move. >> frontier in its statement says an ago second quarter, a high fare carrier would lead to more expensive travel for

consumers. >> i do think new york and latin america are good markets jetblue -- but they have that presence and i think need to be down there going westbound so they need -- you need a network strong enough to stand up, and southwest. >> it's incredible to talk about -- i mean, thinks are minnows, tiny, tiny companies in the stock, but they're so small, the returns have not onlying challenged now there's jet fuel spikes they have to contend with so this is a very, very difficult time for

them to be operating in, and how do you expect the industry to respond? there's new players entering, but consolidation has always been the answer. it did put some russian natural when united, american, southwest and delta all had good management and steady, even kind of non-kill each other kind of environment. you're only as good as your dumbest competitor if somebody comes in with a $19 fare, you have to match it, it looks like it may reappear >> gordon, great to have you have thanks for your time. >> thanks, kelly. bitcoin down more than 20% over the past year, hasn't

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welcome back forget the amex, black card or birkin bag, there's a new status sy symbol kate has more. >> hey, kelly. it is becoming a bit of a status symbol here in miami it's a big part of the tech scene that's been booming lately the latest sign, the mayor and city unveiling a crypto version of the "wall street journal" bull the mayor calling it the capital of capital, and more talent in from new york and san francisco. >> i spoke to investors who have moved here recently and businesses taking bit counsel for everyday transactions.

a restaurant owner said there was demand from crunker customers. >> i i this it's a different, just like ten years ago when somebody would pay with a black amex, i think pate the with bitcoin is new, different, eye catching to even where the bartenders are taken aback. >> people in south florida are buying more expensive items. dennison yachten, saying he sold roughly a dozen yachts, half of those were last year it does tend tore a younger crowd and they're quicker and ten to take on more risk this might look like your average pickup basketball game, but this is some of the biggest names in tech meeting every week you have to own a certain

cryptocurrency to get in people compare this to the bay area in previous decades, talk about some of the excitement one investor i talked to over the weekend said it really reminds him of freshman year of college, people are open to making new connections, but the other side of this, and another reminder of silicon valley that some have brought up, could be a potential bubble. >> still, it's nice we're talking about somewhere else than new york and san francisco, and i love the crypto bull can you tell us more about the basketball members-only thing? is that like a dow how does it work >> it's called a dao, a decentralized autonomous organization they want we work in crypto, and why don't we make this a dao it's group economics

they can buy equipment they actually hire a yoga instructor and pay her in the same token it's a ware for shared economics and show their commitment here to the crypto culture in miami >> kate, thank you very much that does it for "the exchange." "power lunch" with the fed minutes starts right now welcome to "power lunch. breaking news at this hour let's getting right to steve liesman. steve, what do you got >> i have details of the fed's plans to reduce the balance sheet. in general they agreed on a $95 bill jon monthly runoff of the near $9 trillion balance sheet the federal reserve agreed to $60 billion in treasuries, $35 billion in mortgages these are actually caps on