let's say they're looking at the market and wanting to buy their first stock. i would tell them to look at microsoft. >> in this ongoing discussion, many of us about being in purgatory, cvs has a good dividend yield rate. >> "the exchange" begins right now. ♪ thank you, melissa we'll see you again soon ahead today on "the exchange." fed chair powell testifying on the hill all averages reversing higher, even with powell sounding more hawkish on inflation and president biden is about to officially propose a gas tax holiday. we'll bring that to you live next hour. a combined federal and state holiday and what it will mean in the longer run

kb holm, and threats let's start the markets. >> so, gren. didn't think it was going to be that way early you know when we started the live trading day, we were looking at pretty decent losses, giving back maybe a chunk of what we got back right now that narrative has changed somewhat during fed chair jay powell's testimony, we saw a grind higher into positive territory. down fractionally to the green just about flat on the session nine handles for the s&p 500 3774 in the last trade 11,00116 and interest rates key focal points within technology elsewhere in the market overall. perhaps there's a bid for safe haven assets

what that has done is given you what we see right now is a 3.15% yield on the treasury note the cycle highs around here, you're talking closer to around 3.48%. and we're down in terms of yield, with up in terms of bond price. so, continue to watch that note yield. still above three but off the cycle highs. and these stocks share something in common. at least two two things he disney, home depot, 3m and dou are all members of the industrial average they've all hate 52-week low today. we're seeing a buy the dip mentality for walt disney and 3m hit lows and up one-third of 1%. 5.8% if you look at the overall picture, i'll tell you the

biggest point contributor in the dow is united health continues the health care streak and the biggest attracter is cater pillar i'll send things back to you >> thank you very much >> fed chair powell talking about monetary policy. we'll hear more tomorrow he vowed to bring inflation down and said the fed has the tools to do it >> we estimate the longer run of the federal funds rate to be around 2.5% and we think it will be appropriate to raise rates above a neutral level into a moderately modestly restrictive level because this is very high inflation. and it's hurting everybody and we need do our job and get inflation back on a path down to 2% >> he also declined to rule out a full-point rate hike in the future joining me is chief u.s.

economist at oxford economics. his comments come as we've seen fed research and comments from former fed member talking about increasing odds of a resession or hard landing. >> yes, happy to be with you absolutely it's really very challenging as chairman powell said given the current environment. the federal reserve to get things just right. to get that coveted soft landing where you see inflation come down towards eventually the 2% target rate. so, that means you don't want to see the unemployment rate jump more than half a percentage point and you really don't want to see al contraction in consumr spending we think there are ways that can income to fruition we're not in the camp

definitively about to see recession. >> they've flr creased and at the same time, if you take a snap shot of the world today, we're showing the three-month 10-year spread stale point and a half wide. that's really strong by historical standards and yet moderation in energy prices. maybe the tightening and what's priced in tells us this economy will be on firmer footing if we wait six to 12 months time >> that is definitely the goal and again, it is doable. you have to get that right combination. you have to have financial conditions tightening it up. the fed has only raised rates 175 basises points overall and we've seen the markets really react quite strongly to that and the pricing -- right the markets going in and pricing

well over -- close to 4% on the feds fund rate that's the key. for it's the forward guidance the federal reserve is getting is workingiworking its way through the market chairman powell said wait for supply to catch up that is a goal doable but also there's lots of unknowns as we go forward with supply chains and other shocks that could hit the economy >> you're an aggressive camp, relative to the street, not where inflation is 75 basis point rate hikes in july and september, followed by quarter point hikes. what is the market expecting yooulgsy they take out the likelihood of fed tightening but it would seem hard for markets to do that right now >> for us, with we see inflation

remaining above 8.5% and that's through qthree so, through september. may go above, challenge 9% that's why we think the fed is going to continue to foot load rate increases inflation is the number one enemy right now. but interestingly the more they front load, there's risks increases recession odds but given the chance to pause and scale back the rate increases. if you start to see inflation cool down, which we think is going to happen. while we're more hawkish in the near term, we're optimistic that inflation will start to trend lower meaningfully in 2023 >> but it will take time we could beat these levels a few more months still. we'll check back in soon now, we had a 20-year bond auction top of the hour at what could be the highest yields ever for this maturity. rick

>> that's correct. and it is the 26th, 20-year auction and it was 14 billion and the auction rate, 3.488. almost exactly on top of, spot on with the one issued market. it priced where it was trading so, it doesn't get any big grades up or down. it's where it's supposed to be all the metrics were above average. 67.4 on indirects is the third best out of the current 25 auction. you get what i'm saying. these are all very solid metrics. b-plus is the grade. what's fascinating here is a, it's the highest yield on the curve, b, this was a reopening so, i'm very impressed that means we're adding to an

issue in coupon last month and the fact of the matter is 20 year has a good following of ac actual buying-type investors it's not quite as liquid as the 10s and 30s. that's why the yield is higher than evrg else on the curve and the prices lower the news continues to be we could talk about a recession and have experts discuss a recession but nobody knows if we're going to have a recession but we trade on the notion of how investors feel, what their barometer is and in the last 36 hours, the barometer has gone way up and yields have gone way down. >> rick, thank you very much and our next guest still sees plenty of opportunity in the stock market three picks including a core business that would benefit from rising rates and a cyclical play for when the economy improves. joining me is director of

investments at cap trust broadly speaking, i think you're pretty constructive on the economy. do you have to be for these investments to work right now? >> nice to be back i don't think you need to be constructive on the economy to start liking stocks. 40% declines in the russell 3,000 index says a lot of this is baked in. if you are looking for opportunities, there's plenty abound in various categories >> so, let's talk about a couple of them. one is a name that has certainly gotten more respect back berkshire hath way explain why you think it's the right place and the most conservative place for people who are more cautious on the market >> first and foremost, this is a company that thrives in a market like this. they're always looking for opportunities to find good businesses on the cheap. the motto, when there's blood in the streets. there's a lot of that.

you have opportunity to put that 100 billion of cash to work. and then on top of that, you have the core business of insurance, which benefits from higher interest rates. and then on the flip side, when we come out of the slowdown in the economy, you'll see the rails and manufacturing businesses start to perform better so, you have a bit of everything there. >> so, not too controversial of a case, i wouldn't imagine amazon maybe more oso. >> i heard one of the traders in the last session say it's their top pick for today i'd echo that. amazon is one of the companies you awant to buy after they have a miss step. this is one they had last quarter building too much on their warehouse capacity at a time when e commerce was getting back to bricks and mortar. i would say with higher gasoline prices, you might see a few more people skip that trip to the mall and stay home and order

on top of that, you have the business that continues to crank away you need to pick and choose in the big cap tech land and this is one of the ones i would pick. >> amazon is one of the places you could park your capital but is that true for the next 10 >> absolutely not. you need to pick your timing >> you wouldn't own it at any point for any reason you think it's a uniquely positioned window of opportunity. so, the final name, the ticker is rmbs but nothing to do with mortgages. >> it's a small semiconductor company. actually had a bad image for a while. for 10 years or so they were milking their patent portfolio and upsetting the customer base. a few years ago, new management comes in and decides to make peace with the echo system and

develop their own products now they hits into the next cycle for what they sell, which is memory buffers. they're a lesser known semiconductor. highly native for bigger end computing like artificial intelligence and machine learning you'll see a big cycle that will double their addressable market and this time they're not giving it to their competitors. they're going to be in the leadership position and keep it for themselves >> go from most conservative to omost opportunity. that's how we describe the riskier ones thanks for bringing us these ideas for this market. we appreciate it the tech sector overall has been one of the hardest hit sectors and on pace for the worst quarter since 2008 there are bright spots, even here and kristina. >> so, the tech sector is still

almost 30% off its december high and it's been dragging on the s and, for much of the year. the sector's down more than 25% while the s&p 500 is down around 20% in the same time period. all but one stock, which i'll get to in a second, in the sector at 15% or more off their most recent highs. the names furthest from their recent records include paypal, which is down 77% from the all-time high last july. and chip makers sky works are also down. down 54% for sky works but it's not all bad news. ibm is only around 5% off and still in positive territory for 2022 elsewhere, solar stocks and solar edge that are two of their relatively bright spots this year even though it may seem like there's no winners, there are a few names. i think i named three, clinging

to gains >> ibm its own story to see solar do as well as a it has is certainly going to have investors take notice. thank you very much. coming up, president biden is set to propose a three-month suspension of federal taxes on gases lean and diesel. what impact will that have as crude oil plus kb home and on their worst pace and searcher for the worst half since 2005. will these earnings be a turning point or not and as we go to break, here's a final look at markets for the moment the s&p up 13 bb nasdaq up 58 or half a percent and the 10-year back to 10.3

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welcome back red across the board today let's start with wti crude

around 105 at the moment down less than 1%. the bottom two are down about 5% on the session the oil and gas is up more than 14% in the last week now president biden is poised to propose a national gas tax holiday. save 18 cents off a gallon of gas and 14 cents off diesel. the white house will meet with energy ceos tomorrow are we going to see a significant break lower in energy prices or not let's ask global head of strategy and a cnbc contributor. welcome. so, i will say the timing could work out quite well for the administration because we're already seeing price declined in the gasoline space how much further do you think

prices could fall in the near term >> because of recessionary fears. but the underlying problems of the administration is this remains still a very tight oil market we have significant issue as in terms of supply, capacity and the whole issue of refinery spare capace pasty is a big problem that a federal gas tax holiday won't solve. if you were to get this to congress, and we saw potentially 55 save for gallon, would that stimulate demand there are a number of questions about the biden proposal the can question is will it materialate impact prices? >> we all know how tight the global energy market is. we know intrinzic demand is out pacing supply. why has the price of oil hit the skids and has everybody from the chartest

they're saying we could fall more from here why? >> i think the issue is do we have a reassessment of the outlook. are we going to see potential demand destruction as we have gasoline prices top $5 i think we're more constructive as we get over the summer and think about the actual russian energy sanctions that aren't kicking in until the start of next year. right now russian barrels are essentially unpopular. still we're going to have a situation where material sanctions on russia and oil exports are going to take effect and that i think will further tighten the market >> we see china a big swing factor it's coming back online. so, in other words, the reason we've seen downward pressure is because people are worried about a recession. if we don't have that dynamic play out, do you think prices are going to reverse higher

again? >> here's the issue is we're still so tight when it comes to spare capacesty when it comes to oil and the all-important refinery capacity. as long as demand holds up, we're still facing serious supply constraints that provides a significant floor for energy prices. s as we start to think about what impact will the russian sanctions have on the market, do we get the recovery in chinese demand as lockdown restrictions ease all those factors can push prices higher from here. >> maybe we should expect a precipitous near term drop in gasoline prices but followed by a tight market the thing everybody is worried about is the issue of potential shortages. if we have artificially high demand, could we have shortages of gasoline and diesel product

obviously we know how dire the situation is but on multiple fronts, people are uneasy about where we could go in the months to come >> i think we talk about shortage of refinery capacity, but what if we have a severe hurricane season knocked out some of the capacesty. and issue of europe facing a real natural gas supply crunch warning europe that they should prepare for a complete rush in gas cut off. they're facing a really serious winter of discontent in europe >> you hate to see theoil exec in the white house and we understand why but at a moment when we really need to come together to figure out how to solve this problems. >> i agree this is an all-hands-on-deck situation. unfortunately, demand will likely have to balance this market >> we'll leave it there.

thank you. we appreciate it speaking of energy, don't miss the exclusive look inside exxon mobile with exclusive access facilities. says they're ready for the energy transition and the impact it's already having. "exxon mobil at the cross roads. j.p. morgan laying off hundreds of workers look at the correlation between j.p. and stock price and the average mortgage rate. what further impact will it have on the housing market? and more opting to buy now and vi tlater. ginghe airlines a near-term boost. ly, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. voya helps me feel like i got it all under control. voya. well planned. well invested. well protected. you know that show i was telling you about? yeah i was so close to the stage when i saw her and she...

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welcome back to "the exchange." the dow up more than 139 points. a few points off the level half percent gains and here are some of the movers this hour. bitcoin is back in the red, hovering above -- down 3.5%. flr up about 3% -- down about 3% the new one that launched yesterday, biti, that's up about 3% so far working pretty much like they're supposed to. coin base falling after its rival dropped certain fees for customers. and says the trading volume oshows investors may be suffering from, quote, crypto fatigue. it's down 6.5%

moderna is leading the s&p after saying the booster offers protection against two new omicron subvariants. after they meet to discuss the design of a fall booster there's your news for mrna now to tyler mathisen. >> and a surprise move, food and drug administration is set to take jewel e-cigarettes off the market says the order follows a two-year review from the company and could be announced as soon as today up almost 35%. and the owner of the washington commanders nfl team is denouncing a house committee that he tried to undermean accusations of employees subjected to sexual harassment he says the panel is conducting what he calls as politically

charged show trial and j.p. morgan chase tells cnbc that it's a result of cyclical changes in the mortgage market but did not specifically confirm a bloomberig report that hundres are being laid off with hundreds moving to different divisions within the bank. >> tyler, thank you and we'll see you soon still ahead homes, jobs and food, three key stocks on deck with results that could tell us about the health of the economy. one could move 10% how to position on all three that's next. what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

it's time for earnings exchange wr we give you the action, the story and trade and we've got a few economic bell weathers on tap as recession fears continue to grip shares down 9% in the past week and on pace for their worst year since 2011, as rising rates take a bite out of housing. it's fallen on two of the last four reports

director of options at simpler trading. welcome, everybody what's the story here? >> to be honest, i'm less interested in the numbers they report on the quarters they just finished, as opposed to what their forward guidance is going to be. any changes to cancellation rates, pricing, commentary on the shift in demand we're seeing in the housing market and we're going to watch margins closely and that's because a much larger home builder reported great earnings for the quarter previous but had a lot to say about what's coming up chairman was saying things like we're fortifying the balance sheet or refining our business model for durability and looking at a dynamic pricing model to me that says they're batting down the hatches they're seeing a pause and reconsideration from some of the boiers >> that's what i'm go tag ask danielle

i'm going to guess this price action does not leave you feeling bullish. at some point, do the stocks have to find a bottom here >> well, you know, kelly, you would think they would have to find a bottom. honestly, if we look at where the stock was, even prepandemic, it was trading at $40 in february of 2020 at this juncture, you have to imagine a lut of the gains it got was pandemic related because the housing market was so strong at this point everything is slowing down yes, it might be positive but there are way toomany head winds between inflation, mortgage rates. for me, personally, i've been shorting the housing stock on a regular basis. because it's fallen so low going to earnings, i cannot short it on the lows. but let's say this quarter it happens to do decently well. i'd love to shore it up and try

to trade it down into at least $20 a share. >> i take your point but i'm going to think about 2.4 all night. maybe the lowest i've seen on our screen we'll be listening closely for their outlook. we'll turn to darden, the owner offa of olive garden and it's also dropped on two of the last four quarters >> el, the current head winds are similar to most food and retail spaces. you have to pull back in consumer spending. elevated input costs with inflation. but we are seeing improved foot traffic specifically at olive garden and long horn you're seeing on your screen longhorn the reddish line verses 2019 prepandemic. in regards to olive garden, the guest count is still below

prepandemic levels staffing is improving. these come from key bank the average wait time during peek hours between 5:00 to 8:00 p.m. is five minutes verses 25 verses omicron when we really had to wait a long time we should expect a relatively c conservative full-year guidance. and then darden pricing is expected to stick below inflation and that's because they want to remain affordable that's their stick >> they're going to take that price now, hoping to build customer loyalty that's a great nugget. what do you do with the stock here >> i completely agree with all the head winds with this one right here i think it's possible they had a somewhat decent quarter. what we're going to see is guidance going forward the inflationary cost,

especially when you're looking at the prices the restaurants have to pay now. i can't imagine it's going to be positive going forward what i'm looking for is let's say we have a somewhat decent report it trades higher let's say we can short it about $5 higher and after that, trade it downwards, along with a trend. it's been in a down trend the majority of the year i think it can fall to 100 there before it can find stabilization. >> and we're up at 115 a lot at stake for darden. love those bread sticks. finally, let's talk accentu are re on pace for the worst year since 2002 and the rival expecting to split itself in two. what's the story >> accenture follows the trend of much of technology because they specializing consulting in

the it and tech space. it has been better but it's still underperforming year to date and points of strength for accenture is 45% is out sorlsed. and the back log of digital transformation from companies continues to surprise to the upside as we head to earnings, the current head winds for the outlook, currency deterioration, because it has such a strong presence and earnings per share estimate and at a 50 s-- 52% premium. >> 2.4 let's just pause so, it's a name that tends to come up with our stock pickers what would you do with the stock

here >> i actually really like this company. i think they've done really well in spite of what's going on in the economy right now and they've traded lower they're in a down trend. i'm looking at that as a result of what the entire market is doing. when you laook at earnings, they've done well over the last eight quarter. they beat estimates. they traded higher seven out of eight quarters in a row. i imagine they do well on earnings i can't really buy it here just because it's in a down trend i think it's going to continue falling with the rest of the market but i think that investors who want to continue to own this stock, this is an example of a great company but it is a good time to continually average in between 250/270 would be great price points right now >> we're at 280.

that tells you boring is beautiful in this market thank you both very much for your time and thoughts today we appreciate it that does it for this edition of "earnings exchange." companies announced more than 200 million in buybacks. the man who coined the terms buyback derangement syndrome, is going to weigh in on purchases, including exxon's big one in april. that's right here on "the exchange." past extraordinary landscapes into the heart of iconic cities is a journey for the curious traveler, one that many have yet to discover. exploring with viking brings you closer to the world, to the history, the culture, the flavors, a serene river voyage on an elegant viking longship. learn more at viking.com

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cargoliner, bumpstep, seat protector and cupfone. ♪ ♪ ♪ ♪ weathertech. reliq health is a growing global company offering innovative digital health and virtual care solutions. with a rapidly expanding base of over 120 us clients, reliq expects to uplist to the nasdaq this year. reliq health technologies welcome back, everybody. the s&p has fallen 21% this year back in early april, cliff wrote the central challenge is what to do about the low expected return environment. because whatever he's doing is

working. the value strategy has returned 35% this year. as of early may. asness just spoke in an exclusive interview last hour to talk about what he's focussed on and how he gets those returns. can't wait to hear what he said about all of this. i'll play for you later on closing bell i had to ask about buybacks. he has written so much about this topic actually coined the term, buyback derangement syndrome president biden recently saying exxon makes more money than dodd and has criticized exxon for buying back stock instead of investing in drilling. i asked if those comments were valid. >> no, he's not right.

the things i agree with him on it's not a blanket political position he is not right about this it's exxon thought they were great profitable opportunities to invest, rigit's amazing we tn shareholders and corporations are so greedy except times like this, when they want to ignore long-term profitable opportunities to make more money than you could in a buyback just to pay some cash out there's so many misconceptions they're often talked about, particularly when it gets political. like you're handing money to shareholders you are. but their stock oholders go down by pretty much the same amount your position in the company is smaller. if someone does a 10% buyback, you have 10% more money. maybe the market goes up a tiny bit. but people act like it's a wind fall it is not.

it is paying out money by companies that don't think they have a good use to it. what do you think investors do with that money? they reinvest it somewhere companies that don't think they're great prospects pay back cash to people who then put it into companies who think they have great prospects because of some of the sound bites, investment levels aren't very low verses history. they're up from 10 years age there's not a durgt of long-nurm vesting. a lot of the bubble was people being over long term thinking things would grow forever. i think it has a great sound bite that politicians cannot resist and has pretty close to zero content >> to bring it back to the oil example for a moment we desperately do need domestic

oil production to ramp up. our european friends need american oil why is it wrong to suggest instead of using the money -- >> i have a radical concept and it's the most anticapitalist thing you will hear me say these companies don't give a dam about what we need they care about long term present value, making money. i fully perceive these are profit maximizers not out for our best interest or to harm us. if they're not investing, it's because they don't think it's profitable >> and he got the message from the same administration that, by the way, in a few years it's going to be back to clean energy i asked about the chance of a recession and his thoughts on the fed with the fed chair testifying today and some surprising stocks, kelly, that qualify as value to him. he name as bunch of namings

including shorts that he doesn't like that are over valued. that's coming up at 3:00 p.m >> i so want to ask for a tease or sneak peek but i don't want to step out of turn. really looking forward to it thanks for bringing that us at this early hour. up next, mortgage rates hovering near 6%. nearly double what they re awend it isn't the only thing that has the housing market at a new inflection report. nutes ago, literally right before this. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. for every customer. current, new, everyone. to show the love. right now, we're all feelin' the squeeze. we're having to get creative. find a new way. but birthdays still happen. fridays still call for s'mores. you have to make magic, and you're figuring out how to do that. what you don't have to figure out is where to shop. because while you're getting creative, walmart is doing what we always do.

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welcome back to "the exchange." it's been a rough go as the red-hot market takes a breather. despite the fixed rate sitting double where it was a year ago, mortgage applications did rebound from the week prior as buyers worry rates could go even higher according to a harvard report, rising rateds is one of the factors pushing for an inflexion point. apartment construction can calm things down and tight supply and pivots for the changing population and climate change can keep an upward pressure on the market for some time joining me now is the people

behind this report from the joint center for housing studies. it is great to have you here what would you say your biggest takeaway is from all of this data >> well, let's start with those interest rate increases because that's what's new and different right now, right interest rate increases are especially the kind of rate increases we've seen in the past several months can rapidly deflate housing demand through deterioration and affordability. so interest rates at a 30-year fixed rate mortgage as of 5% in april and only continue to climb and that's up from historic lows of some 3% during the pandemic, and when you combine that with the record high home price growth we've had during the pandemic, these interest rates will price out a large member of potential homebuyers so not only are down payments more difficult to save up for -- >> right. >> the cost of the mortgage is going up significantly. >> basically the inflexion point is not downward in the market, but rather affordability is at a breaking point and how do you expect -- what's the response going to be?

what's going to change >> yeah. so one thing that's changing also is we're seeing housing construction at a 15-year high in 2021 as a continued strong demand and historically low housing supply so housing starts were at 16% last year to 1.6 million units and that was the highest total since 2006 despite the building boom supply chain issues and shortages of building materials have prevented the units from being completed. right now you have more housing units under construction than at any point in 1970. as these homes are ultimately completed, hopefully that will begin to bring some relief of the market it's what's needed to get out of that supply. >> do you think home prices are going to fall from here? >> i expect home prices to moderate given interest rate rises. whether or not they'll fall altogether is tough to say >> so leaving open the possibility that they may not.

>> they may not, certainly, no >> right which is extraordinary given how high they are and how high rates are and the fact that there might not be any reset downward, maybe some good news for those that piled into the market alexander, we'll leave it there, thank you so much. >> alex from the harvard center on housing >> fly now, pay later and how travelers are nangmagi rising costs for their big trips next ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪

♪ ♪ ♪ ♪ welcome back, everybody. one more thing that should be on your radar before we go today. the buy now, pay later trend is

picking up more steam as inflation continues to climb phil lebeau is here for how travellers use bnpl to book flights. phil >> these payment installment plans have been around for a couple of years, but they've really picked up momentum in the last year as airfares have shot up considerably. one company that has worked with a number of airlines continues to work with them is called uplift we had a chance to talk with them recently and here's how uplift operates and when you're buying your ticket, through a travel booking agency. what they will say is do you want to pay for it now which many people do, but you will go through uplift with terms three to 12 months and they charge a simple interest rate, basically 15%, 15% is the average. sales last year compared to this year, this year they're up 220% and they say the demand is growing. >> it's just about driving and

affordability and people taking trips that they've wanted to take for years in some cases and get back on the roads and see loved ones and make those dreams happen >> and you can see why people would do this. let's take a family of four. the average ticket for domestic airfare in june, 390 throw in fees and taxes and you're looking at $500 a pop easily or at least high 400s and you're looking at tickets that could cost a family of four their 1400, and 1500 and that's up 14% compared to last year keep in mind that they are still near their record high, hopper out with a note today saying that the average domestic airfare ticket for the fourth of july holiday weekend, $437 round trip and 11 million people, about $2.6 million per day are expected to fly.

it should be a busy and hopefully smooth, fourth of july weekend for airlines and the people traveling by air, kelly. >> phil, the amount that people are spending it adds to the urgency of solving this problem. the front page of "the wall street journal" carrying stories about the snarl today. are you seeing it let up now or is the problem worsening >> i'm not sure if the problem is worsening but i don't think there's any sense that it's getting better there are a whole slew of issues that are contributing to the delays and the cancellations many ofthose problems have to do with airlines and staffing. many of the problems also happen to be involving airports, their staffing and air traffic controllers. there aren't as many in some of the key spots that are needed. so all of this has just created a stew here that has made it very uncomfortable for people when they're flying this summer. >> are they selling tickets for flights they just don't have >> no.

that's not a fair way of looking at it, kelly you're looking at it as if they have a plane sitting there and you're saying i want to fly. the expectation of the airlines is they will have the staffing and the pilots who have gone through training to do those flights. does it always work out that way? no, it doesn't there's no slack in the system and if there's a delay, a cancellation and a crew that cannot make a flight, there's not an available and ready pool of people to step up and handle that flight and that's a big issue for the airlines right now. >> they're at the white house with the way things are going. that does it for the exchange, everybody. "power lunch" begins right now ♪ ♪ good afternoon, everyone, and welcome. we have a developing story out of washington this afternoon president biden to officially propose a three-month gas tax holiday within the next hour or so record gas prices, of course, haveib