pretty much bet that the vast majority of these larger private credit funds are looking to see whether they can and want to be a part of some sort of financing opportunity here because this is the largest buyout we've seen in years. >> wow that's a great point everything else going on with the story. leslie, thank you. we appreciate it that does it for the exchange this afternoon "power lunch" picks things up right now. welcome, everybody, to "power lunch." here's what's ahead on a busy tuesday afternoon. a rally on wall street stocks are up, yields are up, which means bonds are down, but the you like the yields going higher, they are already has the market priced in a fed tightening that's the question and the answer to it is really key to whether the rally can hold and a techtonic shift.

if you think inflation is at or near a peak, is it time to get back into technology shares? >> thanks. hi, everybody. big caps, small caps, just about everything is moving higher. especially the nasdaq. even with rates on the rise. up 1.8%. s&p up 57 for a 1.3% gain. the dow up 403 just off session highs natural gas, it's moved above $8 really backing off that. today, back down to about 715. yesterday was a 13-year high we're continuing to keep an eye on the action here it's still an elevated level historically speaking. same story for the ten-year yield. 2.913% even at 292 earlier on the 30-year, over 3% as well so both of these moving to some significant thresholds the ten-year continues to be at about three-year highs

let's start with rick santelli this hour who's got the story behind these ever creeping yields rick >> you know, the market gives us so many clue, kelly. we had noticed in the last couple of weeks that long maturities have taken off. they've been leading the charge. curves flattening. balance sheet in center stage maybe driving the dynamic. today, a bit of a change in path we see flattening of the yield curve and we see short maturities have woken up it's off to the races on pace for a fresh high close going back to the spring of 2019 but look at the difference i the two-week chart, the longer maturity and ten-year note you can see the 45 degree angle there. it's been more aggressive. but two years are still going to close at a fresh high. so are tens. when was the last time they closed three or higher the end of november 2018 and 30-year bonds ticked off over 3% today. that is something to pay

attention to as well the sleeping giant of the longest maturity has come back to the party of higher rates and i don't see it diminishing anytime soon the fed's so brilliant if there's a mistake here, they're going to blame the market they've incited the market and they throw out all the ideas of what they're going to do you heard mr. bound potentially 75 basis points. we're going to have to continue to pay attention the europeans are paying attention. the ten-year in europe, in the u.k., it's closing at the highest yield since december 2015 the bank of england has been aggressive they've raised rates to three quarter of one percent, but bund yields are also on pace. closed at the highest yield since the summer of 2015, but their central bank is dragging their feet the moral of the story is all rates are goine

ets seem to be in charge. >> let's talk more about that point, rick. as those yields continue to soar, are the markets listening? how much are they listening to what fed officials are saying or is it the other way around james borg says inflation is much too high, but charles evans sounding more optimistic let's bring in steve liesman to make sense of what sometimes seems insensible >> do my bestest, tyler. both chicago's charlie evans and st. louis's jim bullard have positive outlooks, but they differ on how much of a threat inflation is and how much the fed should do this year. evans saying the economy should do well. even in a rising rate environment. he went on to say he sees the fed raising rates to two and a quarter, two and a half percent by the end of the year jim bullard said the fed should

hit 3.5% and he thinks the u.s. will still have above growth and declining unemployment he said the economy did well in 1994 when the fed also hiked includi including by the way, a 75-point hike >> that one was successful and did set up the u.s. economy for a stellar second half of the 1990s. one of the best periods in u.s. macro economic history, so it was successful and in that cycle, there was a 75 basis point increase at one point. so i wouldn't rule it out, but it's not my base case here >> bullard said the key is making clear to the public and markets that the fed is in a new inflation fighting regime and that it means what it says that right of forecast not shared however, tyler, but many. >> let's talk more about mr. bullard. how does he square the circle here if he thinks inflation might come down at the same time

as the economy grows above trend and unemployment is really very low? >> yeah, it doesn't make sense in a classical framework, but what he did, tyler, was pointed out in the interview i did with him yesterday, to this paper by tom sergeant who looked at four hyper inflations in europe in the early part of the 20th century. he says they all four ended pretty quickly when the monetary authority and the fiscal authority changed their regime when it became obvious to the public that they were not going to stop. they were hell bent on ending inflation. that's when inflation went away and did so without massive unemployment in that sense so he says that the paper argues that the perceived cost of ending inflation through recession is well overstated >> ah. very interesting okay, thank you, steve steve liesman. so how do you invest when there are so many questions about the health of the economy? should you put your money into safety plays or growth and the

more volatile names? our next guest has a list of names to buy and avoid welcome back chief investment strategist with piper sandler. michael, welcome nice to see you. nice to be back in that beautiful room of yours. love it. talk to us about the market and whether now is the time to start nibbling at some of the more, the growthier names, the tech names or whether it's still time to play it safer >> sure. i think this year the mantra of the market is it's going to be going nowhere fast it's really a year of positioning. when the market is up 20 to 30%, it's less revant when it's flat, it's all about positioning. so as the world continues to slow, and i don't think as much of a debate about that the question is how long are we going to slow for and what's priced in and we think the answer to the first question is

we're going to be slowing into the middle of next year and we have not priced in very much yet. investors should continue positioning or repositioning their portfolio to stocks that act as countercyclicals that are less cyclical to the economy you've got two trades going on right now. the higher rates, higher inflation trade which is likely to end sooner rather than later. then the growth slowdown trade which has at least another year left so we would continue to avoid high beta stocks and expect cyclical stock leadership continue to narrow increasingly as the slowdown continues. >> so as i look at your list of c cells, i would call them concentrated in cyclical areas like hp, hillenbrand, right? >> there's a couple of different ways to pick buys and sells. we do fundamental and macro approaches this is a pure macro approach. we looked at which stocks in the

s&p have the highest correlation to earnings traditions and these five stocks have correlations in the high 80s given their headed lower and lower, you don't want to have too many stocks that have performance profiles that only do well when revisions are moving higher and conversely, what we think investors should embrace are stocks that can do well in an earnings slowdown so that's campbells soup, at&t, eastern properties, kimberly clark. there are many more, but these are stocks with a negative correlation about 85% to earnings revision. it's a pure macro view on stock selection. of course, adding a fundamental overlay would make sense as well >> michael, it's kelly i'm in a cyclical mood today

so i want to ask you a couple of questions. for those of us who might be feeling this way i look at commodity prices breaking out, right? i look at rates moving higher. i look at stocks moving higher i look at growth holding in there. you know, all of these factors, the steepening yield curve we're up 40, 50 basis points in just a couple of weeks i just think what if there is still some cyclical momentum here >> i think there is some cyclical momentum, but it's going to be increasingly narrow. we're even beginning to see stocks that typically perform well when rates go up. while the market's up today and there's a cyclical tilt to leadership today, we look at the markets since the beginning of the year, we've gone nowhere and i don't think we're going anywhere for the rest of the year so i think we're going to see a lot of volatility, a lot of gyration in stocks and where we have the most highest conviction is thinking about what's the end result of all of this increasing

rates, inflation, gasoline, literally everything we've had a shock to literally everything that helps to explain a slowdown and we're going to get a growth slowdown from that and that's how you want to be thinking as opposed to reacting to bullard today >> let me put it this way because we all kind of approach it from a different point of view so if i said to you that the fed is still behind the curve and that's what the market is telling us, what would you do with the market in the meantime? >> the overall index i think you really want to go into lower beta indices, large cap in the u.s i would avoid small cap. especially small cap value avoid emerging markets and european equity markets that are far more cyclical. don't do well with a stronger dollar backdrop. the fit behind the curve is only going to continue to increase the strength of the u.s. dollar or weakness elsewhere. that's generally an additional tightening for those markets

overseas so would be avoiding higher beta stocks, highly cyclical stocks i think we're in the ninth inning of this commodity trade cyclicly but we're in the second inning of this global slowdown story. >> wow i should add in case you haven't rattled people enough, you also say full stop avoid bitcoin. >> yes and bitcoin over the last three or four years has seen an increasingly higher correlation with equity markets and specifically it trades with about an 85% correlation to higher beta stocks that is the last place you want to be at a time when the global economy is slowing risks are rising >> all right >> yeah, i think bitcoin gets cut in half over the next 12 months >> wow >> yikes >> so ninth inning of the commodities story. second of the growth slowdown. thanks for your point of view.

we really appreciate it. shall we >> cut in half, bitcoin. >> coming up, grain prices are pulling back today after rising to multiyear highs have we see the peak or are we just one weather event waway fro a major spike? plus, the ceo of blockchain. we're live at the emerge conference l jpmorgan and goldman rallying 1.5% citizens flying after better citizens flying after better than expected earnings it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. back in a moment personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade

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welcome back to "power lunch. grain prices pulling back today after yesterday's run that saw corn hit a nine-year high. wheat's up 36% corn up 35%. soy soybeans and cotton are up 25% oliver, it's good to see you has this move persisted longer than you would have thought? >> yeah, it really has as you had alluded to from the start of the segment, corn, soybeans and wheat have been on a tear from the beginning of the year as we get bullish catalyst after bullish catalyst the first to start the year was the bullish input cost then what really added fuel to the fire was the russian invasion of ukraine.

obviously, we know now that russia and ukraine account for about 30% of global wheat exports and about 20% of global corn exports, so those are the two markets that are most effective here with what's going on overseas. but i think wheat has ran a little bit too far what we're focusing on right here, right now, is the corn market as we enterthat spring planting season and weather becomes a lot bigger of a factor going forward, which as we know in the midwest can be a coin flip from day-to-day most recent usda report that showed perspective plantings and how many acres of corn we're going to plant came in at 89.5 million acres that's about 3 million acres less than analysts estimates we've gone about a dollar since the last usda report >> let me ask you two questions. you referred to what we knew about quote, higher input costs.

what are those that were higher and why? >> fertilizer prices are just scre screaming higher we know commodity prices as a whole have been screaming higher but fertilizer prices are the big ones the shift from four acres is moving to soybean. we're seeing about 3 million acres left of corn shifted towards soybean because they require less input so that's what's driving prices here in the corn market going forward. we're starting to get these weekly progress reports from the usda as well yesterday's report showed us about 4% planting for corn about 2% below the five-year average. nothing to get overly concerned about right here right now, but looking at further down growth forecast, if it continues to be cold and wet in the eastern corn belt and hot and dry in the western corn belt, we could see this market continue to rally over the next one to two months.

>> it's cold here today, i'll tell you and it was wet last night. let's talk about ukraine how much wheat do your sources tell you that ukraine is going to be able to grow what percent of their normal crop are they going to be able to produce in wheat and or corn this year? >> well, it's definitely been diminished and cut substantially. when we're looking at the wheat market, a lot of countries that grow wheat use it for domestic purposes and the united states grows a lot of wheat as well we use that largely for our c consumption. the world has plenty of supply of these grains. it's just about logistics and moving it from place to place. that's going to be the interesting thing to see, probably more so in the wheat market i think the wheat market probably got ahead of itself earlier in the year on the back of that russian invasion because the funds manage money were net short wheat so there was a short

squeeze there which added fuel to the fire, then you had the growing popularity of the wheat etf which prior to the invasion was trading anywhere from 2 to 300 shares a day at the panic, we saw it trade as many as 27 million shares a day. since then, we're trading about 5 million on average pre invasion, it was trading 2 to 300,000 shares a day. >> our last guest from a macro point of view says he thinks we're in the ninth inning of the commodities and second of a demand slowdown. what's your response >> i would agree i think the commodities have had a heck of a year, year and a half, moving to the upside and looking at the corn markets, that's what we've been talking about mostly here is moving into the spring planting season if we get a good crop in the

ground over the next one to two months and weather looks to stabilize and be normal, there's going to be plenty of corn coming down the pipeline in that new crop december contract so we're keeping a close eye on the december futures that's where a lot of the momentum has shifted looking past these near term hiccups it's going to be one to keep an eye on >> thank you so much we appreciate it all righty if these higher food prices persist, which stocks are likely to benefit who knows better than seema. >> hello, tyler. good afternoon at first, the agricultural stock wall street gravitated to was john deer. wheat goes up, farmers will be inclined to spend more on machinery and equipment. that is reflected in shares of john deer, up nearly 30% this year the higher prices coupled with a food shortage have given rise to a new wave of ad related names

there's corteva. mosaic trading at its highest level in nearly ten years. industries up about double digits as demand for fertilizer grows. access to fertilizer has become a bigger issue then there's archer daniels they play a role in the processing of grains and soybeans a process calls crushing that is used to extract ethanol. up big over the last year, so much so that bank of america downgraded and lowered estimates. the challenge is the unknown how long does this war last and how much more are consumers will be to pay for food and consumer goods? that's why earnings from these major players in the coming we weeks will provide a better gauge as to how strong demand is and if the fertilizer shortage is holding farmers back from growing more crops

>> thank you very much ahead on the show, three stocks, three calls. our three-stock lunch. the buying, selling, chugging or plugging is the call of the traders. that's up next and bitcoin bulls. holding firm on crypto, keeping the asset stuck around $40,000 in the hopes it hits 100 k, but does it need to fall before it -- there are so many things moving around here, i can't even follow it's cool because you know what, we're going to come back, right? >> right here. >> right here. it's a lot of stuff moving

stuff. we love stuff. and there's some really great stuff out there. but i doubt that any of us will look back on our lives and think, "i wish i'd bought an even thinner tv, found a lighter light beer, or had an even smarter smartphone." do you think any of us will look back on our lives and regret the things we didn't buy? or the places we didn't go? ♪ i'd go the whole wide world ♪ ♪ i'd go the whole wide world ♪

the bad guys is the winner of the truly moving picture award. oh, stop! you making me blush. it's an action packed animated adventure. show the world that you're more than just a scary stereotype. everyone will love. is this wagging? - good right? welcome back we are tracking a rebound in some of the big home building and improvement stocks names like floor and decor, moe hack and others. one of the etfs, the homebuilder's etf, xhb, it's in positive territory right now, but it's still trading along the flat line for april as a month and a decline this month would

add to its longest monthly losing streak since 2011 this comes as recent data shows homebuilder sentiment at its lowest level in seven months with rising rates and housing costs costs turning away some buyers >> thank you, sir. let's get to bertha coombs for an update. >> within the last hour, president biden arrived in new hampshire to push for infrastructure spending. on the flight, reporters were told there would be new u.s. sanctions imposed on russia this week as it begins a new offensive in eastern ukraine a lawsuit that seeks to have marjorie taylor greene taken off the ballot in georgia can proceed. a federal judge rejecting the republican lawmaker's attempt to block the suit an election reform group says she had a role in the january 6th capitol attack, so she should not be eligible for re-election. it cites the constitution's 14th amendment which says anyone who

engaged insurrection or rebellion cannot run for federal or state office. she denies the accusation. in oklahoma, victims of the 1995 attack on a federal office building are being remembered. 168 people were killed when two right wing anti-government extremists bombed the alfred p. muhrro building. ahead on "power lunch," the clock is ticking on your portfolio. is time running out to trim your is time running out to trim your tech holdings? you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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all right, folks, we've got a big 90 left in the trading day and we want to get you caught up on the markets we want to talk about tech stocks and we want to talk about yielding moving higher first, we begin with bob pisani. bob? >> and tyler, i like what i'm seeing and it's because of those commodities you were talking about. oil's down 4%. that's sort of a proxy for

inflation right now and the rest of the market is doing better because of that. let's take a look. remember the transports sliding for weeks now. finally stopped going down great sign banks and other groups not doing well finally stopped going down. industrials have stabilized and there's weakness in energy that's the kind of action you want to see. a little bit of sell off in the sectors that everybody has been buying into. thematic tech having a very good day. these sectors have been weak recently cathie wood, talksed to her last week arc innovation is up almost 5% electric vehicle stocks. clean energy sector all rallying nicely today cathie wood stocks, teledocs, twilios, all doing well. those has been down the last three or four weeks. zoom video having an exception alley good day if you doubt the winner for this

earning's cycle, you should see what halliburton had to say. up 80% so far this year and they are gushing cash i've rarely seen an earnings commentary like this they said we have a multiyear cycle underway strong customer demand and a sold out equipment market. they are the equipment market. they can't sell the stuff they offer to the oil business companies fast enough. >> 81% >> 81. >> thank you very much to the bond market now and talk yields yields now are at levels they haven't been for a long time basically doesn't matter where you are. for theten-year, it was 2.93 for the first time since late 2018 there it is. 2.923 right now. the 30-year is above 3% or was for the first time since april of 2019. rates are rising how about energy prices giving

credence to the idea that inflation may have peaked at least for today. oil and nat gas both giving back recent gains and let's check in with pippa now at the commodity desk >> oil and gas are sinking, reversing yesterday's big move to the upside. let's start here with nat gas. at the lows of the day, it sank more than 11% and traded under $7 just yesterday, it surged above eight bucks and hit the highest since 2008 so all told from yesterday's high to today's low, it fell 14%. some profit taking here after five straight weeks of gains moving over to oil, both brent and wti are down about 5%, but holding above 100. this is the first negative session in five and comes after the imf cut its global growth forecast, prompting fears around oil demand now looking at energy stocks, the sector did hit the high since 2014 earlier today before pulling back

we did hear from halliburton this morning, which beat top and bottom line estimates. the company said they see quote significant tightness across the entire oil and gas value chain adding the equipment market is almost sold out. back to you. >> you saw it, bob saw it, everybody sees it. halliburton soaring today. with the nasdaq up nearly 2%, is this the start of a bigger move higher especially if you're in the peak inflation camp it's about to roll over just a bit. paul is a portfolio manager, finance professor at the citadel. good to have you with us what do you say? can those growth tech names make progress as interest rates move higher the typical thinking has been that that's going to be an impediment to them >> that's definitely going to be an impediment to them, but you hit the nail on the head it's not what happens today or

tomorrow it happens six to nine months out and if we do see peak inflation, which wouldn't necessarily lead to peak interest rates, but it would be a good sign, that should bring some relief to tech and aggressive growth names. >> is it thus then a time to wait or is it a time where you can start safely to nibble at some names maybe some of the safer, bigger, megacap names that may not be quite so volatile if that is your want? >> i think you can begin to nibble and you're right. if you take a look at the faangs, i think it's always an opportunity when they're weak to buy. particularly microsoft, apple and google i think the business models may have changed somewhat so i'm more skreptical. then there's an opportunity to jump on some new themes, maybe not particularly new themes, but

themes of this age rather thant thth thth than yesteryear. if you look at palo alto networks and fortinet, you might have some opportunities even though they're not particularly large cap and they might fly under most tech investor's radar. >> even a name like box you think is one that fits this environment, paul. why? >> so box and the other two that i mentioned are laser beam focused on cybersecurity these are enduring themes, accelerating themes and theodis very odd geopolitical conditions so i think they'll do well >> so you have those names for infrastructure software. kind of a hiding place you think apple, google,

microsoft could be safe. what about broadcom? >> i do like broadcom. it's supremely well managed. they have a good handle on their supply chain so they've been able to weather the covid supply chain clog and they're also at least partially, a infrastructure software company and they pay a lush dividend, which is rare in the tech sector so that one is probably good to buy. avgo >> tell us why again why these names are places investors can seek out in tech now >> yes, again, they're not necessarily value plays, but cybersecurity, red hot, has only come more to the floor in recent weeks and months as we know and then also with box, here's a company that helps you manage

your applications. even though amazon came into that infrastructure cloud market back in 2006, it's been sometime, we still are relatively embryonic, believe it or not, as far as the market share with cloud versus traditional hardware and software and so if you can embrace that theme, i still think there's many years ahead of it and it's going to be a lot of dollars, trillions of dollars in market cap created. >> paul meeks, thank you for your time today. we appreciate it >> thank you after the break, you know what time it is. >> three stock lunch >> yes, we have a whisky on the rocks, an admiral spritz and a long island iced tea long island iced tea we're goin i may be close to retirement, but i'm as busy as ever. and thanks to voya, i'm confident about my future. voya provides guidance for the right investments. they make me feel likeg to. [crowd cheers] voya. be confident

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happy mother's day from weathertech. welcome back it's time for today's three stock lunch where we highlight three names moving on bold analyst calls. today, wework, piper sandler saying it's on the path to profitability. amazon higher despite a rare neutral rating on fears of

slowing retail sales and lululemon citing its pricing power amid red hot inflation welcome in gina. admiral spritz is rhubarb liquor what would you do with shares of our first stock, wework? >> so wework is an interesting one because it has such a short history. so when i want to look at that space, i look at iwc, which is regis. that has a much longer history and there's no question that kind of flexible work space theme is here to stay and if you look at the trend even though it stalled out during the pandemic, it never broke that lower trim line so it really still is on an upward trend and they're on a rebound right now. so that part of the story is absolutely true, also, for wework the problem is that the path to profitability takes you into

2024 with rising interest rates, cash is going to be king and that is going to be the biggest challenge that wework has is getting to cash positive that's probably not going to come until the middle of next year so i'm not sure the market is going to have the, you know, the patience, to get through wework's profitability run >> whatever the market sees it likes today. up almost 8.5% let's turn to amazon the rosenblat sort of tepid call here launching with a neutral rating, $3,000 price target saying retail sales are going to continue to be a struggle, not necessarily, we should all have such struggles, shouldn't we, as amazon in the retail space but what do you think of the stock? >> we continue to own amazon we agree that retail sa salesgenerally is falling, however the real theme in amazon really is the continued growth

of amazon web services if you look at the three big players in this space, amazon, microsoft, and google, they are still growing like gang busters and we think that theme, it's a long-term theme. we went from the digital age to the computational age, and now interactive, but the demand for cloud services is going to continue to grow and amazon is already the largest player in that space and they're going to continue to be >> it's hard to digest some of the numbers we've seen that retail sales report last month showed online retail has dropped dramatically from the pandemic isn't that going to be a headwind for them? >> yeah, absolutely. it's going to be an enormous headwind we are kind of taking the good with the bad on the long-term play if you have a shorter term horizon, this may not be the best place for your money right now because all retail sales are going to be pretty challenging as we continue to slow >> fair enough which brings us to lululemon do you like this one

>> so, lululemon is one that i thought was a pandemic darling that had fwgone sour, but interestingly enough because of this flexible work space, work from home, come back to the office two days a week, it's going to be a regular part of everybody's wardrobe i think that's what is driving this bounce. the mirror sales were a disappointment, but they cou continue to add new lines and i think it'sgoing to be an enduring part of everyone's wardrobe >> i would agree we have agreement. >> thank you very much we appreciate it gina sanchez >> once again, we have drained all three drinks here. >> we have admiral spritz >> everything. bitcoin's volatility dra dragging coinbase down 40% what does this mean for the

future of competitors like blockchain.com the ceo of that one joins us next my name is ami and when i financed my car with carvana they had questions about my documents.

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the price of bitcoin back above 41,000 after dropping yesterday. up $871 today. that's 2%. our guest earlier this hour said he expects prices of bitcoin to be cut in half over the next 12 months crypto prices just topics beingt the emerge conference in miami, and kate rooney is there and she's got the ceo of blockchain.com with her. hi, kate >> hi, tyler thanks so much peter smith joining me now ceo and cofounder of blockchain.com thanks for being here. >> thanks for having me. >> we're calling this our post game because we had our longer conversation i wanted to ask you about bitcoin prices and markets we have this inflationary market why isn't bitcoin and crypto in general performing better now? >> bitcoin is, you know, really a risk asset trades as a risk asset and right now, what we're seeing is sort of all assets reprice.

and so the crypto market always moves faster we saw that in the covid sell-off we have seen that historically when there's financial turbulence i think i usually expect crypto prices to come down fastest, and they also reverse that the fastest usually. so i think we are in a down trend and in a consolidation period in the market >> you expect them to rebound faster than tech stocks and some of the growth names? >> i would expect crypto assets to rebound much faster than tech stocks and growth stocks >> got it. blockchain.com, you're a crypto trading platform there's a lot of competition you have robinhood, block is sort of moving into that area as well how are you differ engentiating? do you expect the prices to come down when it comes to trading fees >> i think retail trading fees are pretty high. we're a little different from the other companies you mentioned because about half of our business is an institutional business and that business, the fees are already where you would expect institutional fees to be so we have a lot of confidence

in the future fee load there and on the consumer side, most of our business is outside the united states. where we have a much wider mote% and so we're feeling pretty good about where fees are at in compression, but i do think you'll see a compression in the u.s. market. >> you guys have been spending big on advertising, branding and sponsorships is that to capture the u.s. market talk us through your ad budget we see blockchain.com on a lot of sports names and partnerships here how are you justifying the ad spending as a percentage of revenue? >> we're very countercyclical. the last two years when you saw the markets euphoric, you saw a lot of companies spending huge amounts on ads and paid acquisition. we were completely out of the market so you're spending zero on marketing. now that there's a lot of heat out of the market, prices have come down. there's value opportunities. and we're allocating significant capital into marketing this year >> we talked a little on stage

about central bank digital currencies and the idea that private stable coins may have a different role going forward what's your expectation if the fed were to issue a central bank digital currency, what would happen to the likes of circle, paxos, and the billions of dollars in private stable coins that exist now >> it's nuanced on the coins tether is offshore dollars that's not competitive with the government issued stable coin. with an onshore stable coin, ultimately you're going to be asking your customers, would you prefer a dollar from a company or the united states government. most customers will want the dollar from the u.s. government. it will be difficult for those businesses, particularly in that specific business line, to be competitive against a national actor. >> got it. i think tyler has a question for you. >> peter, as kate was mentioning there, there are a lot of companies in the crypto space that are advertising a lot and it's hard to know who's who

and what's what. in other words, what they all do what is your point of differentiation from all of these other names that are just blizzarding me from dawn until dusk >> yeah, so there's always been a lot of start-ups in crypto everybody is just aware of them today. a little bit of what makes us different is, one, our diverse business but more importantly, it's trust. we have been in this market since 2011 doing the right thing by our customers and there's now 40 million of them all around the world that trust us when they want to engage in the crypto market. >> got it, and peter, last coppant, ipo plans or reports you were looking to go public. what do you think about that >> lock chblockchain will be a company one day. when we know more, we'll be in touch. >> peter smith, thanks for being here back to you.

>> kate rogers, kate rooney, i should say, in miami >> they're exchanging numbers right now for the day when he goes public. >> we need the markets to come around to that up next, it's tax refund season. how much people are getting and how are they spending it we have the data next.

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splurge? we're getting back more i think than last year, dom. >> almost $200 more than last year so we are seeing people do that, but again, there was a little nuance there, because if your getting more back, it means you put too much away during the season anyway, that's besides the point. if you're getting a refund, if you're the average american, you're likely getting more back. this is data from the ir srk as of just before the tax deadline this week on april 8th they had already received 70 million total refunds for processing, and the average refund for those was $3,175. so not a bad way to get a little rebate back from the government. of course, that's not really a rebate, it's your money to begin with you just gave the government too much money during your tax withholding season with that in mind, what exactly are people going to do with that $3,000 some odd dollars. according to a study from lending tree, if you look at the way consumers plan to use their tax refunds, now, these numbers

don't add up to 100 because you could select multiple options, but 46% of people, nearly half, say they're going to save that $3,100 they're going to get. 37% are going to pay off debt. people are going to spend on necessities, maybe invest a little bit, splurge on something nice or do a nice vacation overall, if there's something we should maybe take away from this it's during the course of the last couple years and during government payments, stimulus or otherwise, we have seen people tilt a little more towards fiscal conservatism, seeing what's been going on around them, and if they get a windfall in terms of cash payments, they tend to do something different with it, they don't go out right away and spend it. maybe that's a positive we learned as a society from the pandemic >> it's made people more acutely aware if the economy shuts down as it did in the spring of 2020, you need a cushion >> a rainy day fund or a rainy

season fund. >> you lose your job, your business goes out for six weeks because of the pandemic, you need money >> there you go. >> all right thanks, dom. >> and thank you, everybody, for watching "power lunch" today >> we'll see you tomorrow. "closing bell" starts pretty much right now >> and wall street is in rally mode the nasdaq leading the pack, up around 1.75% the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen let's show you where we stand, near the highs of the day, up more than 400 points on the dow, nearly every dow stock is higher at the moment. boeing actually adding theos is leading us higher, up 1.75% all the faang names are higher amazon is actually adding the most to the qqqs microsoft, apple, facebook, tesla, alphabet, nvidia all higher today as well small caps bouncing back tth