in buffalo is now in a trial phase claiming it retaliated seeking to organize by closing down the stores. so what happens from here is if chipotle workers yunited does file with the unlrb and we'll see if they're on the chipotle side or the union side >> we'll see as the effort moves along. thank you, kate. kate rogers. that does it for "the exchange." w "power lunch" begins right now good afternoon, everyone welcome to "power lunch. i'm tyler math son kelly will be right along. markets are adding to gains on optimism over earnings and now tesla takes the wheel. elon musk's company reports results after the bell closely watched, of course will this be the catalyst to keep the stock's momentum going. plus rising mortgage rates and

persistently high prices, and a key indicator of demand falls to a new 22-year low. we'll look at the impact on the economy and more kelly? >> tyler, thank you. >> hi, everybody let's get a check on these markets. as you see some followthrough and mostly in the nasdaq up 1%, a 4% gain over the past two days the s&p is only up four points and the dow is down 120. what's driving tech higher mostly software and chips. salesforce, nvidia amd up another 3.5% the communications services sector of the s&p also doing well today with some big recognizable names leading the way like disney up 3%. not enough to help the dow, though meta up 3% netflix, the best stock in the s&p after its results were up and tyler it's up 5.5% >> we'll start with the stock that investors will be watching

after the bell tesla is reporting a drop as it recovered from an extended shutdown at an important shanghai plant, but the stock has been under a lot of pressure down 30% this year and to see a recovery in the past month or so up 15% colin rush is senior research analyst at oppenheimer he has an outperform rating on the stock and a price target of 1291 quite a gain from 739 now. we'll ask you how you get to the price target in just a minute, but it would seem to me that if you're going to sell roughly 100,000 fewer cars in a quarter than you did -- than previous estimates, you are probably not going to have the profits you might have had. >> without question. there's a lot of operating leverage as a scale of units i think what investors will be looking for tonight is not necessarily what the results look like and what the company

looks like a year from now as they ramp up their berlin industry and we expect to hear about tag times and actual production there and as folks get a sense of what the factors will produce we'll get a sense of margin and profitability. based on the delays that buyers are seeing from tesla, i expect demand is very high right now. >> yeah. it's an important element that i think a lot of folks are missing. some of the reese not studies that we've seen are looking at 14%. consumers are looking to buy an ev in the u.s. and europe. we see the delta, the internal combustion engine and being around $16,000, $17,000 with the advantage to evs in terms of total cost of ownership. so we think demand is off the charts well in excess of the tesla in the industry combined, and it will continue to be strong and we'll see how the

other platforms ramp up. >> colin, what do you say to those like are bois lasberg who knows how will we have -- this is a very important question because the earnings leverage and the margins are what get us there. certainly well north of $50 of earnings power on multiple millions of units a year in terms of production and start layering on some of the recurring revenue that they could with insurance, and the self-driving so as we look at that and the multiple that you can put on to that, that sort of earnings power there's room to get to the price target and what you're watching for are signs that you'll get to the 30% on the manufacturing and can start executing on monetizing some of those reducurring revenue strea. >> the profit power of the

business, of course, are the most important factors that would determine what the stock price is, but there's another factor, a bit of a wild card and that's the ceo, mr. musk how have shareholders viewed mr. musk's involvement with twitter, the fact that he's going to be sued, the fact that he is certainly going to have some distraction factor going forward? is that being priced into the stock now? if so, how does that cloud dissipate? >> well, a lot of investors aren't overly concerned about it and there are those pushing that narrative, but a lot of the folks that are long the stocks understand the ups and downs of elon and the benefit and the risks associated with it i think a lot of this is priced in i think the stock has tracked what's going on with production and gross margins. historically, there's an easy

way to track that. as real as it is going forward, i think coming off the table for mr. musk is for some of the short stories and ultimately whattal perform the stocks >> take us through the competitive outlook for tesla. yesterday i was watching the all-star game and there were a tremendous number of advertisements for the new electric chef blazer and suv that is targeting the model y, i guess, and there are a lot of other competitors out there from hyundai and kia and so forth and yet -- and yet if you go out on the roads around the new york city market in terms of electric vehicles it's got to be ten to one tesla. >> without question. tesla is producing the meta of profit margin and that's driven in their expertise of the integration of the battery and power train and the overall

system operation which is a software challenge and the vertical integration that they have to put this together. so we've seen them struggle with production in the past and that's well documented and there's a learning cycle that's going on amongst the autos moving from one technology note to another and that's an entirely different beast and a different fundamental architecture of how you make a card, and some of the body that's very similar are different ask so we'll watch what happens with the oems we're underwhelming and the new issuance like mercedes coming out with that are attractive and will gain market share as they start to ramp up production and

see the tesla offering >> it will be fascinating to see what happens in the auto business over the next 15 or 20 years. we'll all be watching. colin rusch, we appreciate it. >> thank you. let's stick with clean energy this hour the president is expected to unveil climate change, which some hope it will give a boost to areas of the market j.p. morgan have a positive outlook into the old energy space into the second half of the year joining us the man behind the research, mark strauss, senior analyst with j.p. morgan mark, good to see you. let me start with what some analysts describe as a nothing burger from the president's announcements this afternoon do you have any hopes pinned on that >> good question it's hard to speculate on what might come out of it i think there is optimism that there would be incremental spending on domestic manufacturing. i don't think people are going as far as some of the build back

better would have provided as far as we have a long term extension of tax credits and what not, but what i can talk about is the institutional investors that we were talking to, to your point about a nothing burger, or not baking in any kind of upside >> sure. or any type of executive order so if there is nothing then i think there is some support for the stocks here, anything positive would be upside from the stocks >> we're showing four of the names that you are kind of most favorable about and maybe array is a good place to start because when there is an upward inflation in the profit margin especially in the absence of stimulus or policy support that's coming, why do you think that array that's up 4% is an interesting choice here? >> yeah. so array is a utility scale tracker company.

utility scale has been a bit more volatile than residential solar. array has some very company-specific catalysts that we are looking for they ran into some issues with an early 2021 with the way their contracts were structured it left them subject to raw materials pricing and they fixed that last year, but they had to burn off the backlogs and q2 is where the prior vintage backlog has burned off and the buy side investors that were skeptical about the margin recovery will have it in front of their face and can't ignore it anymore. talk to us about the residential installer sun run and sunnova. >> they are two of the largest residential installers in the u.s.

they're focused on the u.s. and some of the territories and the leaders in the space they're downstream owners and operators, and they do not make any of the products and they are buying them and simply installing them for customers. they've had cost headwinds that have been top of mind for investors this year. you've had labor prices increasing the cost of financing has gone up for the overall. >> the important thing to remember, though is that you look at the average price of utility. they are increasing even faster. you look at the latest tata that we have are april about the eia and make sure you're overor year you looka the key laborables in texas and the northeast, and you have seen even larger prices and

this is allowing theircompanie to increase for the home opener. they're save money and offset the cost >> mark, thanks for your time today. it was great to have you >> thank you. >> mark strouse. >> whether it's a slowtown or recession, one sector has historically outperformed the market and we'll tell you which one it is and the best way to play it right now. plus another round of housing data show the sector is continuing to slow down as mortgage demand hits a 22-year low and home sales fall, but housing accounting for about 15% of gdp what does all this mean for the 'll ke tt wetahaone apart in just a moment.

whether we're headed for just a slowdown or a recession, history shows one sector tends to outperform others no matter the circumstance there so should you get in now if so, what names should you consider let's welcome kevin monn from hennian and walsh asset management good to see you. the sector in the spotlight right now is healthcare and you see two ways to go at it one would be through large

pharma and the other would be through biotech. obviously these sectors hold up because people keep getting sick no matter if the economy is good or bad >> that is true, and i think we will soon learn, tyler, that the economy has fallen into the technical difficulty of a recession. real gdp fell by 1.6% and second quarter gdp is estimated to have been contracted by 2%. two consecutive quarters of negative real gdp growth meets the technical definition of recession and we know the yield curve is inverted with the two-year yielding about 20 basis points more than the ten-year treasury the yield curve has predated a recession in terms of inversion every time going back to 1955. so i believe that we are in a recession right now in healthcare based upon our research here at smart trust has been one of the sectors and has been an outperformer during

periods of economic slowdowns and recessions if you're aggressive, maybe you want to tack it through the small cap biotech route. if you're less aggressive and want to be more traditional in defense, then you look at some of the larger cap pharmaceutical needs, tyler. >> and these -- repeat that fact for me about how health care has performed in prior downturns. >> yes health care has been one of the top three performing sectors during previous slowdowns and recessions for those viewers out there wondering how do i access healthcare well, if you want to play the large-cap pharmaceuticals tyler, merck and bristol-myers. both of these large-cap pharmaceutical companies have yields of about 3% and continue to have excess cash on their balance sheet which they may start to coin. in fact, bristol-myers squibb recently allowed the acquisition of therapeutics and we like

names such as axiom therapeutics or corona therapeutics these are smaller cap biotech names that provide therapeutics or treatment for central nervous system disorders both of these companies currently have drugs in the fda approval pipeline and may be of interest from the large-cap pharmaceutical companies with excess cash looking to deploy that cash and actually acquire these solutions. so two ways to play the health care route, and i think both will hold up very well in the face of an economic slowdown >> kevin, what if i told you i didn't think we were in a recession in the first half of the years and i don't think we're in one now >> i would suggest that you look to the actual data, kelly. what feels different this time around and i agree with your contention is that the employment market is still holding relatively firm, and we also know that the consumer continues to spend, but we're starting to see slowdowns in both of those areas, as well we know that initial jobless claims are starting to tick

higher and we also saw that the federal reserve recently revised their unemployment target for the end of the year up from 3.5% to 3.7%. as it relates to the consumer, yes, the u.s. accounts for the economy accounting for 70% of the economic growth and they're starting to dip into their savings and put more in their credit cards to help withstand those prices. >> we have 30 seconds or so. i assume you expect the fed in july will raise three-quarters of a percentage points and what do you see as their path going forward in september, november and then december? what will they do then >> great question, tyler i think they turn less aggressive in the face of this economic slowdown which i again believe will meet the technical definition of recession. by the end of the year we see the fed funds rate by 3% so if they raise by 75 basis points in july which i think they will and it's 75 basis points of additional heights for the

balance of this year >> you're the mahn kevin mahn >> thanks, tyler, kelly. there's been a lot of intra-day volatility and oil is taking a leg lower in just the last few minutes and you can see it briefly went positive and now it's dipped by 1.7% and that does put it below 103 and nat gas, other story the flip side of the story, it's been soaring into the afternoon and it first started about an hour ago holding on to a 10% jump to almost $8 per million btus expect the techs rallying helping to lead tech higher and nvidia up 17% all on hopes the chips bill will pass congress. or is it either way, we'll get the latest next the news not so good for the homebuilders stocks as the number hits a 22-year low, but what about prices? talk about some all-time highs we'll dive intth hsi market disconnect next

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>> welcome back to "power lunch. the etf is up 10% in a week. ylan mui joining us to explain

the 52 billion reasons these stocks are rallying. ylan >> that is how much money congress would have under the chips act. this bill has cleared its first procedural hurdle in the senate with strong bipartisan support and it's looking increasingly likely that it will pass through both chambers by the end of this week the latest version of this bill strengthens the guardrail for benefit. i spoke with commerce secretary gina romundo and she told me her department would be able to claw back money from companies who break the rules. >> there are strong restrictions on what they can use the money for. they cannot use the money for stock buybacks and build manufacturing facilities in other countries. there are really strong guardrails around no investments in china >> businesses appear to have lost out on two key provisions and it's a retroactive

reinstatement of expense sxeg a tax credit for tooling equipment doesn't cover chip design. that would have been a boost for companies like amd and nvidia. many boosting science and research across the country have been added back to this bill guys >> i know we spoke about this briefly, ylan, while it's a beneficiary, what about the likes of nvidia and the others >> the issue there is most companies design chips and they don't manufacture chips and that tax credit only benefit the companies that make the chips. what they are saying is they aren't going to benefit directly other ands say, hey, look, this is an indirect benefit it will increase the supply for chips in the u.s it will decrease demand for those chips here in america. so those companies will get a benefit one way or the other >> while intel is barely struggling to stay positive.

ylan, thank you very much. ylan mui in washington and let's get to bertha coombs for the cnbc news update. >> good afternoon, kelly here is your update at this hour senators announcing two bipartisan bills designed to close gaps in federal law and prefen prevent future candidates from stealing elections the vice president's role in counting electoral college votes and raise the bar for members of congress to object and prevent fake slates of electors from interfering in the process the second is aimed at protectioning election workers. an attorney for the family of jayland walker, the 25-year-old black man killed in a hail of police gun fire last month in ohio is calling for the department of justice to investigate walker's death an autopsy shows walker was shot 40 times at the end of a car and foot pursuit that began with an attempted traffic stop for minor equipment violations.

>> a total of $100 million people in the united states under heat alerts today in 28 states from california to new england. texas alone, dallas, houston, san antonio and austin have experienced more days of 100 degrees fahrenheit this year than they typically do over an entire summer. you have to feel for those folks, tyler. >> that's a happy dog right there. go, baby thanks, bertha ahead on "power lunch," we'll go around the markets for a look at stocks, bonns and oil. we'll take a pulse check on everything we'll also check in on housing as a key sign of demand falls to a 22-year low. is the once red-hot real estate market finally getting ready to do something the weather isn't th iats cool off "power lunch" will be right back

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>> welcome back, everybody 90 minutes left in the trading day and let's get caught up on the markets on stocks, bonds commodities after this morning's data deluge. we'll start with bibob pisani wh

the divergence >> that's because the tech's having a moment and the bulls are having a moment at the expense of more defensive sectors and let's take a look at the s&p 500 and it's been a nice run considering what's june 16th low for 8% off of the lows and the bulls are having a little bit of a moment and they're having a little bit of a moment because they are going for growth stocks. they're liking tech stocks again. take a look at the sector's distribution here because they think there will be a bright, shiny future in 2023 when the fed is done with this rate hike cycle here so look at ark we've had a great run. cathie woods' main flagship is way, way off of the lows in the way of june. consumer discretionary another growth sector as you heard just re recently that's helping today on top of that and the banks are doing a little bit better and not much

of of a growth group meantime, see cathie woods and you see twilio and spotify and all of your favorite names from ka cathie woods roku and shopify they've all been rallying and buying growth for later in the year why is there this big divergence kelly was talking about? health care is just getting clobbered today. united health is the main reason, look at that, 15 points. do the math on this, folks 15 points, you're talking about 100 points in the dow. all sectors of sub sectors of the health care group are trading down today and the same with consumer staples which have been acting rather poorly as growth and technology has had its day. kellogg, colgate and the favorite name is smucker with the high-beta consumer staple name all moving to the down side

a lot of hope about growth later on in the year >> that's a very interesting tilt, bob, thank you let's look at the bond market and rick santelli tracking the action in the nyse people are raving about the 20-year auction, rick. >> they are and they should, but do remember the reason it's the highest yield on the curve is it's not the most popular, most highly traded maturity on the curve and the bigger the auctions, the deeper the amount of supply and the more it's traded and liquidity is pushing yields down in the other maturities, but it is definitely in many ways some of the best action that we have seen my mike did fall, i a polpologi everybody. you can see it was off the charts and the auction was great. month to date of two year and it keeps steadily climbing and all

yields now are very close to higher on the day. and they've come a long way like stocks and now look at a month to date, and it's turning higher why? because next week we have a fed meeting and it's starting to do the fed dance. finally, high yield for a while it was the big talk. right now we're at a six-week high should we stay here for the hyg, the high yield etf and the spreads are narrowing and a two-week chart of the currency and it is under pressure today and how their politics will pan out is anybody's guess, but is a positive for the greenback which once again is hovering close to fresh 20-year highs. kelly, back to you can i hypothesize with you and you bring up the high yield and it seems to be better and you bring up the ten-year yields and they're drifting higher and bob pisani told us healthcare, staples and the expensive parts of the market are underperforming and this feels kind of risk on and bullish in

terms of the fundamentals. what do you think? >> listen, i couldn't agree more, and i think that the market is agreeing with you. okay consider this. 324 last and two-year note yields is 347. the ten-year note yields are currently trading 304 and the first back-to-back is on pace for the month of july and their high-yield close is 47 basis points higher just shy of 350. the market agree requests you and we are now starting to think about what is on the back side of the tightening cycle and that's why many investors are starting to get friendly not only to the equity markets, but i think you'll see more of the buying side approach some of these options. >> thank you very much let's turn to energy now which is one of these odd spoiled sports because when demand looks better, pippa, then oil starts to rise and that spoils it. what are you seeing in oil today? >> oil is dropping now into the

close as the front month contract for august delivery, piers. the september contract also down, but not as big of a move accidental though it is under a hundred bucks. earlier, we did get weak gasoline data and product supply which is a proxy for demand was roughly 8.5 million barrels per day last week and that's down 7% from last year's levels and today it is all about nat gas. henry hud prices surging 10% and crossing above the $8 mark and now up 13 and 14% here on the week scorching temperatures are driving demand and expected to heat the peak low record of the year today and power prices are surging and july is on track to be the state's costliest ever and it's not even august meantime in the uk prices surging 29% up nearly 20% on the week as the europe energy crisis

intensifies. >> watching that one so closely. thank you very much, pippa stephens let's turn to the housing market where we had weak data, but is it a sign that sellers are still in control here? mortgage demand falling to a 20-year low and prices setting a new high in inventory in a record low is there a soft landing in the housing market instead of a crash? let's ask mark moody it feels like we're going into a deep freeze than we are going into a crash >> yeah. i think that's a fair way of putting it, kelly. home sales, housing demand really took it on the chin 5.1 million and i expect home sales to weaken and that was weaker than i had thought, but it makes sense with the higher mortgage rates conflating with the higher prices and they can't afford to buy in and trade-up buyers they were kind of locked in because they sell and buy and

the monthly payment. then you have investors. a lot of those folks, i don't think they're selling and they might get an opportunity here down the road. so demand is really weakening very rapidly and you're right. i think it is going into the deep freeze. >> i get that buying activity is drying up and in june, we had home prices hitting record highs. i don't think many people would have expected prices to still have some significant momentum about them inventory, we're down to 13 or 14 days. that's a record low. so it very much feels like there's real demand out there and there's not enough supply. it's -- i don't think we're seeing the kind of drop-off in the market more broadly that people might have thought a couple of months ago when rates started to spike >> no, not so. i think house prices have speaked and the reason why that rose is compositional.

you had more homes selling at the high end of the market because first-time homebuyers are lucked out and that causes that price measure to jump, to increase they're weakening very rapidly, and i would be surprised -- and by the way, sellers aren't going to price their mound very quickly. they look at zillow and they see the highest zillow price ever sold and that's what the home is worth and for them to give up on that price will take some time so demand goes down first. home sales and inventories are rising and seasonally adjusted inventories are on the rise and if you look at inventories across the country in the most juiced markets coming into this, they're up quite a bit i think everything that's coming together suggests that in the coming on months and certainly in this year going into next, we'll see house price weakness i'm not arguing crash and there's a major comeuppance and the market is under a lot of

stress. >> guess who sense yours truly a zillow listing on yours truly's home did my wife did. so i can't get that number out of my head, mark you're damn right about that. >> right you're not going to give up on that >> i'm not selling and then i have to buy something more expensive and it's not worth the headache >> there you go. >> if there is a slide in prices do you expect the slide to be in the cities in the inner mountain west, maybe florida where the price gains have been greatest >> yeah. that's absolutely right because that's where affordability will be under the most pressure because prices are really, really high. you mix in the higher mortgage rates and the monthly payment is out of bounds. a number of those markets have gotten flippers coming into the markets and remember the

flippers, and there are folks that if you're going to phoenix, parts of florida, atlanta, you're buying with the clear intent of selling quickly and that will bring prices in much more significantly in the prices in the southeast, texas, mountain west nationwide they'll go flat and the buckle in. >> bye, bye, boise >> mark zander, appreciate it. the dow is lower by 12% so far this year. fear of a recession, one of the main drags on stocks up next, we'll hear from one investor who says the economy is strong enough to deal with a downturn and check out bitcoin's big bounceback up 20% in a week and coinbase up even more and microstrategy, too. look at that graph tutoomacwh wk ene rern

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lunch," everybody. a lot to debate in the markets whether we're in a recession or not, or whether we'll be in one or avoid it altogether leslie picker is talking to one fund manager as to whether the economy is strong enough to handle it? >> his take is this is nothing like 2008. i spoke with joshua friedman, the co-founder of the behemoth canyon partners. even if we meet the technical d definition of a recession of negative growth that the economy is in such a strong position it will be able to absorb the downturn >> you have some people saying oh, consumers are already in a recession. well, consumers are facing higher gas prices and facing higher mortgage rates if they happen to have a need for a new mortgage housing sales are down so in some respects we're seeing contractions with the housing parts of the economy and liquidations periodically and we're not in some awful recession and we still have

unemployment less than 4%. we still have job openings that far exceed the number of people available to fill those jobs and all i'm saying is a modest uptick in unemployment and a modest decrease in available job openings doesn't throw the economy in anything like what we had in 2008 in my view >> so despite having grown up in the distressed business. he's not expecting a wave of bankruptcies any time soon he said they've got, quote, comprehensive shopping lists of securities and other areas like secondaries and loan originations and securitized packages to watch the full interview is subscribe to the newsletter click on the qr code on your screen and go to delivering alpha point com, guys? >> go right to the distress, guys and it's not distress for us >> thank you very much leslie picker. >> the markets are getting a boost in part from better than expected earnings from netflix the dow is positive by nine points, though which stocks could be next to beat lowered expectations?

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>> all right, folks. time for today's three-stock lurn we'll look for what could be the next surprise earnings winners

after wall street proved to be too negative on netflix yesterday. we have corvo, skyworks, estee lauder all down 30% this year, but can these names stun investors, too >> let's bring in marianne montain, portfolio let's kick it off with qorvo >> to start with qorvo it's in that semiconductor category where estimates have been cut dramatically in recent weeks and the stock has been downgraded around concerns for those semiconductor shipments. also, qorvo generates about 25% of its earnings -- or sales, that is, from china. and that has just been so sporadic with their economic reopenings without vaccines, without treatments so trading very low, eight times forward earnings, and that's a very low end of the

semiconductor sector but the stock price has been dropping for a long, long time, and there's supply chain head winds, there's cautious guidance for management they're likely losing market share. so we would sell this name as we don't think it's reached its bottom yet >> wow, all right. so skyworks then, marianne >> well, skyworks is a radio frequency chip producer. i don't know how many people realize this, but 60% of their sales, 6-0 percent, of their sales are to apple it's highly dependent on that one company and their new products, the latest generations. we've heard strong things about their latest product in terms of acceptance and we notice that they are gaining share in android phones as well, both in the high end and the mid-tier side of android so that reduces the dependence upon apple, which has always

kept their multiple toward the low end of the sector p/es so management has pledged to buy back 2% of its shares. they offered 2.3% dividend yield. this is a company we think is going to surprise to the upside on both revenues and earnings when it reports on the 28th. and it's trading at about a 45% discount to the s&p 500, so that's a buy for us. >> that's a buy for you. let's move on to estee lauder. is this a beauty, and i don't mean to be too harsh, or lipstick on a pig? >> it's about twice that of the s&p 500. that's been keeping us away from this name, and we have not been adding to the staple sector. it's just a company that should be benefiting from the reopening of the economy over in china think about travel, think about duty free.

that's a big part of their business, and it's a very profitable part of their business especially in china with the emphasis on more lotions and potions, shall we call it, rather than the lipstick type of things. the color side, i mean even though we talk strong travel in the u.s. and to europe we need china to work for them and so i think the earnings estimates you could drive a truck through, the midpoint could be beat. i don't think management will have great things to say about their supply side and also their sales on travel and duty free. >> p/e is high even though it is falling. appreciate it mariann for more

potential names that could surprise to the upside why don't you head to cnbc.com/pro and coming up crypto's big comeback inflation's big hit to wages and a huge jackpot some stories catches our eye today.

welcome back to "power lunch. time for a few stories that have caught our eye we'll kick it off with crypto. we've put together some pretty nice gains over there.

>> it's really amazing coming back 20 some percent in the last few days >> 24,000 for the first time since mid-june even with today's rally down 50% this year but the stocks have been climbing. coin base is up 35% this week. ether has a lot of people buzzing as well. >> i think if you are ready for a wild bronco ride, i mean -- and we're not talking about o.j.'s bronco, a different kind. >> and we're not talking about the stock market either. a lot of people are taking this as a bit of a read on liquidity or growth, the market -- >> wheat today 38% higher on coin base as you see there >> amazing >> we really want to talk about doordash which is infuriating. we'll talk about the federal minimum wage at a multidecade low if you adjust it for inflation according to the economic policy institute. recent analysis found when accounting for inflation today's federal minimum wage 7.25 is the lowest since 1956 in terms of

purchasing power the minimum wage back then was 75 cents which was about $7.19 today. nearly 13 years since congress last hiked the minimum wage but 30 states have done so on their own so incomes, one of the forces in incomes. >> wage price spiral, the minimum wage moved ahead of the big inflation boom where we started to see restaurants and everything respond now it's breaking out more broadly. >> i'm happy that in the states some have gone to a base wage. the libertarian in me is anti-minimum wage. i don't see why an individual who wants to work for a price and a seller of labor who wants to pay a price can't get to a

price that suits them. >> you're not going to get an argument from me, fiber in the philippines for $2, $3, $5 an hour it's leaking, it's happening, it can't be ignored >> that's just a personal thought. >> speaking of things i really hate, the mega millions jackpot is now $630 million and yesterday's drawing four people matched the first five jackpot numbers but no one had all six, so that's how we keep getting these soaring numbers. that jackpot was $555 million, the fifth largest ever this one obviously even a little bit bigger now the next chance to win is on friday >> i'll have to go down to the merchant far from here >> no, don't do it don't support -- this is horrible horrible people's lives are ruined by winning the lotto. >> well -- i'd like to experience that ruination. >> my life would be. then you could afford all the doordash you want. >> doordash --

>> you can go to town. >> it's eating me alive. >> thanks for watching "power lunch. >> we'll see you tomorrow. tech shares driving the nasdaq higher today but the dow is in and out of the red as we head to the close. the most important hour of trading starts now welcome to "closing bell." take a look at where we stand in the market building on strong gains, the s&p up half a percent. you have consumer discretionary energy and financials. those are all the groups in the green. what's lagging today utility, health care and consumer staples it's flat now. check out the top performers which once again is driving the gains and that is despite higher treasury yields and a stronger dollar today