look at the gains and even salesforce they're up around 3.5% it's one of the best performers, tyler, in the dow. >> let's get to the top story of the day and that, of course, is those inflation numbers. the consumer-price index coming in lighter than expected and that gives investors hope that inflation might have peaked a month or so ago. the cpi year over year rose 8.5% in july. that was a little bit lower, 0.2% lower than the 8.7% expected and it was flat for the month. in other words, sequentially, so where did we see drops in prices and where are things still a little hottish let's dive in to different sectors of the economy energy, food, housing, cars and we'll start with energy and pippa stephens a lot of us know the story or the basic one, pippa, but fill in the blanks for us >> hi, tyler energy is at the center of this inflation report and the

downturn in energy prices is the reason we saw a headline inflation easing slightly. so let's run through the numbers. overall energy prices down 4.6% in july compared to the prior month. gasoline falling 7.7% with fuel oil which is heating, oil and diesel down 11%. what an outlier was electricity prices which did rise 1.6% and energy has been a major driver of inflation because it feeds into so many categories, if it costs more to transport food, for example, what we pay at the supermarket is going to be higher and it is still up 32.9% year over year jamie cox saying energy prices declining is critical since it makes a soft landing from the federal reserve possible he said overall this is a sign of the tide turning, but others noted that this is more tenuous and many factors are driving energy prices meaning this could be more of a temporary relief,

tyler. >> what are you hearing in terms of the consensus whether energy prices may have peaked earlier this summer? >> gas prices are now down for 57 straight days according to aaa and we are just a penny away from having the national average fall below $4. so next month's cpi report will likely show another decline in energy prices. beyond that it's pretty difficult to tell. there are a lot of factors in the back half of the year that could influence the direction of oil including the spr releases ending as well as chinese demand growing and there's also the impact now that gas prices have come down and will that ultimately mean demand rising once again and pushes prices back up. so there are a lot of factors here at play, but for right now we are at $4 on the national average. >> thank you very much, pippa stephens. and let's not forget food prices seeing their biggest increase since 1979. dom chu has more on that for us. >> kelly, there's no way to

sugar coat this. it's bad when it comes to the food, and you mentioned since 1979 that is a 11% year on year increase for the food component of cpi, and if you look at some of the individual components you can see why people feel the sticker shock and it's staples that consume on a daily basis that, and you're talking about a 26 26% rise in the cost of butter 20% for eggs and coffee. those are items that we key on and that's the reason why it feels so much worse. if you're looking for signs of possible relief and we know this could be the journey of 1,000 miles when it comes to inflation and it could be a single step. if you look some of the month on month decreases and there were

actually some decreases in certain meat products and beef products like steak and roast, uncooked ones fell in value, fell in price between the months of june and july and look at other food items like seafood, certain seafood products did frankfurters when it came to processed meat down 6% there are certain pockets, kelly with the food index overall. it's again, not wholesale. we're not seeing thisdropin prices yet, but there are certain pockets where there are things are seeing some signs of easing and that's the reason why some families and households are taking comfort in seeing what they're seeing >> i love that they call them frankfurters instead of hot dogs it seems that also, dom, that will have a lot of bearing on whether the consumer waltz shif wallets shift, and there's substitute ability that has

implications >> that's the thing with food products if you have a food or dietary restriction, thof course, inflation has a lot of impact on you and there are things that you don't want to eat or do, but when it comes to food, that substitution effect, kelly, that you mention side very, very clear because when you tart to see prices for, say pork and beef that are falling hypothetically chicken and turkey, you might turn toward a substitute like those products and this is very much a game that many households are playing right now about going to the grocery store and seeing what's on sale. by the way, citrus fruits fell about 3% month on month. so i hope you like oranges, because if you do you might get a break on it versus apples or other fruit products it's something a lot of families, tyler. >> hot dogs and orange juice >> it's good to see these food prices, some of them at least coming down because boy, they had run up over the past year. you look at beef, fish and pork

prices are much higher than they were a year ago though lower than they were now a month ago in some categories >> thank you, dom. >> housing is a big piece of the inflation puzzle, of course. t diana olick on it is cpi inflation. hi, di >> shelter continues to be the big bad wolf in the cpi because it makes up about a third of it and up 5.7% from a year ago. rent is still rising although we are getting some reports that apartment rents are at least starting to stabilize to more historical normal gains. single family rentals up not so much up 14% and that's the latest read from core logic as for the prices of what goes into your home and a mixed bag and major appliances coming up, just under 5% from a year ago and that could be some easing in the supply chain furniture costs are still rising

each month and window and floor coverings fell over the month, still 7% year over year as we see home sales drop, there will be less demand for these items and we could see prices ease up even more, tyler >> has there been an effect on mortgage rates from all of this? >> yes, and that happened this morning. you saw the drop in the ten-year yield and the mortgage rates loosely followed that and you saw mortgage rates for the day today and it came down 22 basis points and the average on the 30-year fixed and we have seen bonds recover since then and that may raise again tomorrow and we may see mortgage rates rise and we're seeing the volatility day to day, but in the better picture, better picture on inflation means better mortgage rates because mortgage rates don't want to see hikes in the fed funds rate, and they don't want to see inflation and again, a better eye on

inflation will be better for mortgage rates and you will see the continued volatility rates that we've seen in all month diana olick, thank you very much. >> let's turn to another area where we've seen record high prices, cars, autos. is there any sign of easing there? phil lebeau has a breakdown of those figures. >> kelly, no sign of auto prices cooling off. in fact, they hit a new record high for the average transaction price for the month of july. according to kelly blue book and the average price paid, and this is important because this is what's paid at dealership, $48,000 and that's up, and if you want to see new vehicle transaction prices and take a look at what happened over the last 15 months that's the big acceleration you see there, by the way, you go back to july two years ago, the average was under $40,000. the issue is the inventory is just not there the new day supply running

between 30 and 36 days in a normal market for the auto industry, that should be closer to 65, 70 days and keep in mind that one thing that has benefited them is the demand with suvs, even with high goes prices and you're not seeing the big -- they're not hurting in terms of those because there's a film. >> what, if ever, do people expect for prices to roll over >> i don't think any time soon you have to have it get back to the 60-day, 07-day supply. they're building as many vehicles as are being sold ask demand is outpacing it it's hard for the automakers just to build up the inventory you've got to have the inventory there before you see the prices

cool off >> are you starting to see supply chain issues resolve? >> a little bit, but it's still tenuous. i mean, it gets a little bit better with the chip supply, but there are other parts of the supply chain when we talk to manufacturers especially tier 2 and tier 3 suppliers and they'll talk about how it's not a solid supply chain i wouldn't say it's brittle, it's tenuous in certain spots and because of that the automakers can't rent to the degree they would because they don't like to. >> phil lebeau reporting for us. >> what does fed's rate hikes and his investment greg dimar zshgs io, vice president manager at rockland trust. >> thank you for being with us let's start with inflation so much has been made of it and

it's become the top political issue in the country leading into the elections, has the back of inflation, high inflation started to break >> yes thank you, tyler great to be here i think today's data certainly shows some signs of that 8.5 is still a very high number. >> it's looking backwards. it's looking backwards. >> exactly you hit the nail on the head it's 8.5 and it's looking backwards. so we have some signs that it is starting to ease and that's good from a visibility standpoint and the market tends to applaud visible its. so this gives us some visibility that the idea of runaway inflation is not necessarily in the cards and runaway inflation has problems associated with it which is a much higher ten-year yield. >> so as you take that information, and i hear you saying, yeah, we're seeing some signs that runaway inflation may

be behind us and not the worry it was, one, two, three, monthses ago how do i change my investment outlook with the thinking that maybe the fed doesn't need to be as aggressive as we thought two months ago, and we've seen sense the middle of june have come back a nice amount although it's 10% for the year and nothing less as you're taking away a bad scenario, but largely, stocks follow their earnings and then you assign a multiple to them. you assign a valuation level to them what this does for us is it underpins a valuation level that we can start to trust because the ten year is not rising to 4% which was out there in the past few months so you can start to evaluate

companies and they're certainly getting a lot of earnings coming in and a lot of 2023 estimates are coming down and that will be a problem for some of those stocks, but in your portfolio you can start to look at things that can be adequately discounted for what we're likely to face next year. >> you have names in particular that you have in mind, greg. what are they? >> three names that i put forth today and you want to take advantage of the environment that we're presented with and the first one that we really looked at in the pullback of the past several months and still a great valuation for today and in the systems. healthcare technology is a secular growth area, so it's an ability to buy a growth name thanks for a long time too expensive to own and earnings are continuing to go higher. great cash flow, great balance sheet, high-profit profile and the growth sell-off is given the opportunity to own that name at a reasonable level >> that was viva systems you also have clorox and you

have t. rowe price >> the second is the sense that you are definitely getting if the weeds of being a stock picker, trying to figure out what will happen next year and what are the current issues with the stocks if you look at clorox, clorox were one of the first to raise their hands and say the input cost was a problem as related to the gross margin a part of you being an investor for the future and not today looks forward to 2023 and there is some appetite to own names and they are going to be getting the benefit of input costs easing and to tyler's question, to some of how you're positioning for inflation ticking lower. so clorox is a great brand, well-positioned company that got hit so you're taking advantage of that pain t. rowe price as an asset manager rapidly gets discounted. the stock pulls back because people know that their earnings are going to roll over because of lower equity markets. i think at one point in the past week or two was down 50% and at

a certain price you're looking again toward next year and i'm saying we're not taking another leg lower and the markets will get higher and there will be stocks like that that you will be opportunistically buying. >> thank you. >> greg dimarzio >> disney, the stock down 28% this year, but rallying back over the past month. the bull and bear case for the stock next plus as the beaten down housing sector bottomed and a stock positioned to lead the group higher as they're heading and a look at the names hitting all-time highs and always like too see this list and names like generamis,l ll mckesson ww graner we're back in a moments.

welcome back, everybody. disney shares higher into the earnings after the bell, but the stock has been having a tough year it's down 27% amid a number of headwinds. reports similar streaming subscriber as netflix and are the parks delivering amid inflation concerns let's debate entertainment and media analyst at rbc capital markets and he's got a $150 price target and our sort of bear is michael morris entertainment media analyst at guggenheim and he has a $110 million price target what are your expectations

>> yeah. thanks for having me we expect solid ads for disney+ and the momentum that management expects going forward given a fairly robust content slate and continued benefits from the recent market launches that they had last quarter and the introduction of the ad-supported tier and we do expect that the parks will exhibit solid attendance and pricing report like comcast, and ns universal at the parks the messaging will likely be that regardless of the macro pressures that we continue to see, the way that the management has invested in technology and improved the guest experience and monetization and the capacity to restrain limitations and at a cost structure, we think the parks are as well positioned heading into recession as they've ever been. we're pretty bullish heading into the prints.

>> if we're headed into recession and if we're not, even better >> michael, what do you think has been the biggest drag on the stock? what can they say to alleviate that or change your mind, making you more bullish. >> interesting question. >> there are two things that have dragged on the stock. one has been the challenge in the streaming industry overall, and the importance to streaming growth for the enthusiasm toward disney's stock so disney started to grow with subscribers more slowly than the street had anticipated and it had compounded by some streaming headwinds from peers at netflix in particular and if you look at the stock, it really traded alongside the sort of emergence of those concerns. >> the second issue is around the parks as was just discussed. the parks are undoubtedly an outstanding asset and most investors over the long term would want to be invested in the parks and i don't disagree with that however, as we've seen in other industries, we had a period coming out of lockdowns where we

really had a high level of pent-up demand coming through. you've seen it in digital advertising and one of our concerns is that you've seen that at the parks. the levels that you've seen and the financial performance had reflected something of a pent-up demand level versus a new plateau, and we think the street is treating the level that they've been at as being a new level to grow off of that's probably where we're the most concerned >> kutgun, i think of disney and going back historically. disney is a lot of different parts and there always seems to be some sore thumb with disney it's espn's woes at one time it's the network's woes, abc at another time and now streaming and the parks and so on and so forth, but are we overlooking the -- the value of the sort of transcen transcendent whole of this company that has not only streaming, but they've got content manufacturing and

they've got probably the best content library there is so if they didn't make another movie for ten years there will still be people who are going to watch disney and stream disney is that one of the reasons this stock has been so restrained this year? >> yeah. i mean, disney is a conglomerate and it is a complicated story and a complicated model, but at the core of it it's content and story telling and as management has shifted the focus away to streaming and to leverage the ip that they have between marv elg and lucas film and between pixar and walt disney's existing properties, i think the streaming story will continue to evolve and grow and likely ultimately garner a growth that you don't really get with netflix and you clearly see that firing on all cylinders at the parks, and i think regardless of

recession fears or not that will continue to drive the story probably into the next decade plus >> michael, you may have just heard what i said you may have a point or full of fertilizer. address that, if i'm totally off base, number one number two, is there another company in this universe of media conglomerates? i don't think it's going to be discovery of warner brothers discovery this week, but is there another company that you like more than disney? >> so a couple of questions in there. number one, absolutely there are stocks we like better than disney maybe not company. so i have no disagreement or pushback on the kind of core of your statement about the value of disney's intellectual property absolutely do not disagree that this is a uniquely strong company. our rating on the stock is about buying the stock well, and buying it at the right time.

>> gotcha. when we look at the valuation on that stock it triades at 14 tims ebitda >> media companies on average traded about six theme parkstraded eight. hotels traded 14 so you're getting -- you're paying a premium multiple here premium multiple for premium company seems like an in-line valuation, not something that we are interested in chasing right now. >> interesting interesting. thank you for not ripping me, you know, as they say. i appreciate it. gentlemen, thank you kutgun and michael morris, we appreciate it. >> a gaming reset. a pandemic boom for video game seemingly coming to a halt bitcoin climbing higher and bit bitcoin and the rest of the space across the board >> speaking of movers, taking a look at the shares of the cruise lines and look at the names for a change soaring today up more than 10%

those two, royal caribbean and norwegian. we can expect the cpi giving investors optimism and consumers will move to spend some of that money rather than just on food d elanfu your shipping manager left to “find themself.” leaving you lost. 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

cryptocurrencies on the rise those assesses climbing along with the rest of the market. i.e., the equity market following those inflation numbers this morning that is lifting the entire crypto ecosystem and coinbase. that stock down 63% for the year missing quarterly estimates and getting a downgrade to underperform at kbw. yet, that stock is up 6% today as you see right there is it still up 6%? no it's up about 6% let's go to bertha coombs for the cnbc news update bertha >> hi, tyler thanks very much good afternoon defense secretary lloyd austin saying the united states will conduct more military exercise wes baltic nations and provide increased training to bolster the region against any possible threat from russia austin said they will likely use troops from u.s. brigades in europe, but they may also bring in forces from the united states jury selection in vanessa bryant's invasion of privacy

trial against los angeles county began today. kobe bryant's widow says first responders shared graphic photos of the nba start's corpse after he was killed in a helicopter crash with his daughter in 2020. sheriff's deputies said they did not take the photos for investigative purposes. they are welcoming a female representative from vermont. it will be the first time in 233 years that it will send a woman to capitol hill. she won the democratic primary for the state's only house seat on tuesday that's incredible to me, tyler it has taken this long. >> every single state now. >> finally >> a sign of the times good stuff >> ahead on "power lunch." inflation hitting the homebuilders hard. the xhp down 26%

have those stocks hit their bottom floor plus path to profits, kelly? >> goldman sachs says some growth stocks could be on their way to a turnaround. we'll discuss in today's three-stock lunch coming up. a r more of what you earn. p this is the planning effect. if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this. an aarp medicare supplement insurance plan from unitedhealthcare. medicare alone doesn't pay for everything.

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welcome back, everybody. 90 minutes left in what's a pretty strong trading session with big moves today so let's get caught up across bonds, stocks, commodities and a power call on housing. we'll start with bob pisani down at the new york stock exchange pretty much near session highs all day, bob >> yes in fact, it's been remarkably steady rates down, stocks up, vix at 20 or sometimes below 20 today. keep an eye on that and that's an interesting development they're going up once again and it's a broad rally and the tendency is still toward the cyclical sectors and we're seeing consumer discretionary stocks strong throughout the day. you're seeing tech stocks strong communication services and this is the cyclical and growth areas that the markets like for so long and energy has been lagging because oil has been stuck at $89 earlier today. it's moved up here toward $91. a bit of a mixed picture for energy today and i mentioned big tech a terrific day overall

apple has been breaking out and that's been the strongest of the tech names and elsewhere, broad movers in the discretionary groups and we're seeing travel stocks do well and some of the cruise ships have done well and airlines once again resuming and they've had a great little run and are now resuming that move and they've had a terrible start and horton, lennar and others are moving another big discretionary group, of course, are the automotive stocks and general motors back on another tear and ford's been having a great run in the last month or so and that's resuming as well where are we we just broke 4200 and that's been a big barrier for a while now. so we're now trading at a higher range right around the early part of may right now essentially back remember, kelly, that was that moment in april, may and june when everyone was terrified of the prospects of ay is severe recession and earnings >> thank you, bob.

let's turn to the catalyst of all of this, the bond market where yields today are reacting to the cpi rick and really setting the tone >> absolutely, and setting the tone in a big way. let's look at the two-year intraday and look at that yield drop it was substantial and more to the point. look at fed fund futures how they rally and keep it simple. when they move up in price they're taking the amount of fed tightening out of the system and at least the market sees what the fed's doing and tries to pull the back of it. will it be accurate? the fed does seem to put a lot of weight in what the market is demonstrating, but look at a two-year from june and this is important. keep an eye on that pattern because it is in real time and yes, even though inflation can be less than we anticipated and it's still historically high and contrast that chart with a ten-year chart from june 1st you can see the long end has come back to unchanged and it's

pretty much priced in the weakness already and two-year note yields, well, they need to hover because there's still more tightening to come into the system and finally, intraday, the dollar index nothing screams fed more than this move by the dollar the dollar dropping dramatically hovering at the lowest level since we closed in the end of june why? because this number most likely does acknowledge that the fed's mission is much closer to completion than many would have thought prior. kelly, back to you >> rick, i've been watching these yields move all over the place the last couple of weeks we shot up on the jobs report. we're crashing back down on cpi. i'm almost starting to wonder if the bond market is reacting and it's just reacting to data like the rest of us. >> yeah. but i think it is smart and it's an emotional time. we saw that number this morning and the fact that the market might have overextended tells us two things a, that investors are more than happy to buy in to certain march

you arei maturities, and when they saw the inflation data they had to move quickly to adjust their positions. all right. rick santelli, thank you, sir. we appreciate it let's turn to oil in what's been a volatile session and prices were down earlier and you can see them in the red when you have inventories unexpectedly rise this week and we reversed course and we're closing up 1% and we spoke to carter worth about this last hour and those who had been bearish on energy moving back from those positions, as for me and the consumer, we all wonder does this imply higher gasoline prices, meantime, lower rates, higher housing stocks, they're getting a big lift along with the rest of the market they've been battered this year and our next guest says we could be at an inflection point and let's bring in john lavallo,

equity research analyst at ubs good to see you. what do you think is happening here >> hi, kelly thanks for having me i think what's happening is we've reached a bottom and the stocks are starting to react in the early cycle. i think there were interesting points that came out of a recent survey that we did with the google search monitor and it reenforces the fact that things slowed in july relative to the past eight julys and they improved sequentially from june and july which is encouraging and this pause is consistent with what the homebuilders have been saying and they've been saying early signs of stabilization. you couple this with the fannie mae homebuyer intimate and the global financial crisis, in fact and you have the forming of a base >> dhi, o.c., why are these your favorite picks and what about those who say housing can't outperform until the fed's tightening ends? >> i'll start with d.r. horton and dhi. the largest home builder by

volume and the very need-based portion of the market and they are just a consistent executer big cash flow generator and very shareholder friendly in terms of allocating that capital, and i think the growth opportunities both organically or through acquisition is pretty strong can the home builder stocks work that's a good question, right? i think it's an early cycle sector and the worst seems to be priced in. my answer is yes i believe it can >> is the best way to go to pick a portfolio of individual stocks which was looked at rid there and lennar and d.r. horton they say i can't do that, i want to go with an etf or a fund. >> good, tyler the group has moved very much in tant empup you can say buying a group is a reasonable thing to do, however the stocks have been battered so much there's no rain

to be cute you can go with the biggest and the best and that's d.r. horton. >> all right john, talk to us about these stocks we know that the p-es have crashed to four and a half times forward earnings we know the news flow is not going to be great in terms of the level of home sales and that kind of thing in the months to come, but what is the potential upside here that you see and what's the hurry for those who might just want to wait this out for a while? >> sure. good question. it's all about the second derivative and when we start making some kind of momentum july, by all measures is going to be the trough in new home sales, and i think we start seeing a recovery from there and that is when it's time to get in in our view. if you get in now will you be a little bit early perhaps. it's better than missing the ten% to 15% upside >> thanks for your time today. we appreciate it >> john lovallo. up next, a multiplayer miss,

console makers showing significant growth declines as of late. is the video game industry facing a reset as you head to break, listen to power lunch on the go and listen to us on your favorite podcast app, follow and listen that's not a suggestion, that's a requirement, today. >> it's a command. >> it's a command! (driver) conventional thinking would say verizon has the largest and fastest 5g network. but, they don't. they only cover select cities with 5g. and with coverage of over 96% of interstate highway miles, they've got us covered.

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let's talk about another category of stocks that have been struggling this year. video gamers the pandemic proving a big boost for the sector i can't tell you how many hours my son spent on them as people sought entertainment during shutdowns. bigger firms buying out smaller players attempting the best rivals, but now that growth seems to be slowing down our steve kovac has more >> hi, steve. >> hi, tyler i spent a few hours playing during the pandemic, too they're warning tough times ahead for the video industry video game spending falling then% according to research firm mpd and that showed up in companies like take two interactive and activision,

pandemic darlings like roblox are growing quickly and there are tough comparisons from the first two years of the pandemic and take-two interactive providing disappointing guidance for the rest of the year and it's not just the drop in consumer spending, these companies do a lot of business in europe and asia where foreign exchange winds are the worst nintendo and sony both missing estimates for the quarter and sony cutting profit forecasts for the full year by 16% and just monday we heard nvidia demand weakening for graphics chips used in consoles and gaming computers and some are planning ways to diversifying revenue outside selling digital items to players for example, roblox dave pizuki. one are the sub skriepgz services that we see from companies like sewn owe the playstation and microsoft and the xbox

you pay a flat fee and it's like the netflix of gaming and you pay a flat fee and you can stream the games right there and it comes with the library of hundreds games to play from. other names like i mentioned, advertising will be a big thing especially for roblox and they want to do it differently, by the way. they're coming up with a way to do metaverse advertising and not just banner ads and things that you see on the so-called flat flirt. >> steve koufax, appreciate it >> taste testing the waters on growth stocks. are any of these worth buying? three-stock lunch explores that next without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com

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time for today's three-stock lunch. on today's menu we're taking a look at three high stocks that have a path to profitability lyft, lot and lyft dynamics. fred lane is at lane generational fred, good to have you onboard and are you going to take a lyft that's our first name here >> we're neutral on lyft there are a lot of good tailwinds here i think the hybrid work model

and the high cost of gasoline and the high cost of insurance, by the way, all of those things because cars are more expensive to repair if you're in an accident so all of that will deter some car ownership and car usage. so our view is that there are a lot of positive tailwinds of pe on the one hand. on the other costs are borne by the driver i think our view is a little bit on the neutral side. if i were going to plunge into either one of these companies, because there is a second one we have to discuss briefly which is uber, i would probably be more inclined to want to own uber i think its growth will be less because it has scale, but that's one of its advantages and it is truly an international player. but i think if you believe in transportation as a service, lyft is a pretty viable investment we don't own it. we've played around with it. we haven't made a decision in that regard. we do buy secular growth companies. that's our forte

we've been tempted we would like to see the model be better proven >> speaking of secular growth companies, let's move on to number two which is riot block chain. is this one you like is this one you own? >> we don't own it we do own bitcoin. if you go back to our website lane generational to 2020, we were advocating purchases of bitcoin and a lot of our clients got in early enough so they actually still have a small profit we had quite an interesting roundtrip. we're believers in bitcoin we believe with currencies increasingly devalued that there's a real role for bitcoin, not for the other cryptocurrencies, i might add. only an advocate of bitcoin. the reason we are is the limited fixed supply this is the largest bitcoin mining facility in north america. they mine for their own account, for institutional investors.

if you like bitcoin, this is a great leverage way to play bitcoin. we like riot block chain we don't own it but we may. >> let's talk grid dynamics. we don't do that a lot here, fred what do you think? >> we like -- we think the services companies -- this is a very much smaller version or you may have heard of epam systems grid dynamics is basically helping large corporations, home depot, raymond james, firms like that, become increasingly digital. and so if you like enterprise software and think enterprise software is critical, which we do, and we think that part of controlling inflation is going to be making our employees more efficient, more effective, then i think you have to like enterprise software. this company, the grid, enables that and they have -- they're global. a lot of their businesses in europe and a lot of their manpower is in europe, primarily

eastern europe and india, so they're able to basically provide this consulting service across the board, actually it's a number of different functions. if you look at grid, i think it's a very interesting play i might add it only has a 2% short interest you are not going to get much lift from that riot blockchain by contrast has a 23% short interest by contrast if, in fact, people start to get comfortable with bitcoin and want to invest in bitcoin, that's going to be, i think, a very positive factor for riot blockchain. we only own 18 to 24 positions at any point in time we're deep research, deep conviction investors you can't own everything but these are meritorious names.

>> it's great to have you today. fred lane. >> all right and fred may have given us some lead as well so we can invest. today's rally and inflation report, a look at what it says about consumer finance companies. we will take you under the crco wmiospeith professor dominic chu next bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

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dreamliner in more than a year after a series of quality problems paused deliveries american airlines took the first new delivery from boeing's 787 factory in south carolina. the planes are a key source of cash as our phil lebeau keeps pointing out and the bulk of the price is paid upon delivery. though the company has had to compensate customers for the delays consumer finance companies like capital one and discover are all rallying after getting hit hard this year dom chu takes a look at the move higher and why dom? >> we have this idea that a catalyst for consumer spending could be the notion that with inflation easing, albe it by just a hair, it is, of course, the journey of 1,000 miles to this point right now if you take a look at consumer finance companies they are among the biggest gainers in the s&p 500 so far today and many of them have that consumer theme in common they are big credit card

issuers, banks or issuers of store branded. if you go to a furniture store and want no interest financing you go through sin kyncsynchron. the down trend has concerned a lot of folks as much as we've talked about this notion that the consumer is relatively strong, many of these consumer finance oriented companies have seen decent sized hits over the course of the last year what you've seen the last couple of months is a move off the bottom and a sharp move higher that's discover financial, one of those big consumer retail names. the second one we want to highlight is a big issuer of credit cards we tend to know about, what's in their wallet, capital one financial. up 5.5% having lost a third of its value. even with the move higher, putting it in context it's not that much off the lows is this one of those reads on the american consumer and

whether or not they have the ability to pay given the inflationary backdrop, another thing to watch and the other thing we want to highlight, synchrony financial, a very large issuer of store branded credit cards, ones that maybe consumers will use, carry a balance on sometimes, be in order to kind of get their shopping done and what not those shares 29% of their value although nearer term, in the last couple of months, move higher in context big weakness there. what it comes down to is whether or not you can look at these guys, tyler and kelly, as indicators or barometers of the health of the consumer because they have so much more exposure to that consumer spending picture than, say, the big mega banks like a jpmorgan chase or bank of america will >> better barometers of what consumers are actually feeling >> across a wide spectrum. we often talk about american express being more geared to the higher end consumer and spending many of these credit card issuers are lower to middle income -- middle market americans.

>> i'm going to focus on the positive i see maybe a low there around mid-july maybe that's around gas prices giving some relief, the peak recession priced in. >> could be. >> maybe the skies are clearing now. thank you, dom >> dom, thank you very much. and thanks for watching "power lunch." >> "closing bell" starts right now. here's something we haven't said in a while, a cooler than expected print the most important hour of trading starts now welcome to "closing bell." i'm sara eisen every sector in the s&p 500 is higher except for utilities up 1.75% on the s&p the nasdaq zooming up 2.5% tech had been under pressure yesterday. the report on fears we wouldn't see as much of a fall in the inflation rate the number was good news for the markets. the small caps up 2.7% and the u.s. dollar sharply lower, down a full percent off tha