>> they upgraded deere shares to buy. >> i'm feeling good. thank you very much. and from deere to discretionary, that is the best performer since the june lows. we trade the top three names in power lunch which starts right now. >> kelly, thank you very much. welcome, everybody, to "power lunch. here's what's ahead on a busy friday a big tech reversal. the sector rallying 20% since those june lows. apple up about 30% amazon 35. netflix 40%. this hour, the it tech names to own. plus, inflation in a bottle. the cost to make busourbon are

soaring. the president will say why prices could head even higher next year. kelly? >> thank you, everybody. the dow right now up just shy of 300 points the s&p 500 up 50. that is 1.2% the nasdaq up 1.5% it has been leading the way since the lows really so have the small cap russell 2,000. up 4.4% as well for the week a strong performance they're over to the 2,000 mark chip stocks higher as well higher on semis now, applied materials, 5% teradyne short of. that and easy go up almost 17% charge point up 14%. plug power up more than 6% ty >> thanks very much. inflation concerns easing just a

bit this week following the cpi and ppi reports. today we learned that consumer expectations for inflation over the next year tick down to 5% last month from 5.2% our next guest writing about peak prices in an op-ed piece. ron insana is a cnbc senior analyst and commentator and senior adviser to schroeder's north america. and also with us, cnbc contributor michael farr ron, let me begin with your theories on inflation. you say transitory is a word that you can safe i had use again but maybe the meaning is a little different i think what is interesting is there is not a -- it means not.

[ inaudible >> ron, i'm going to interrupt you. we're having a little trouble with your audio. we're going to try to get it fixed. it was breaking up i thought it was me. but it was -- well, obviously something is going down. michael. how are you? >> i'm terrific, tyler thank you very much. >> i thought it was me too >> it's a good piece ron has a good piece coming out that is important. i hope we get that >> yeah. do you think this was the week that was -- this is the week that inflation was in other words, that its back was broken >> it's one piece of data. the forest fire has -- is not raging quite as tore i hadly as it was before. and the temperatures aren't quite as hot but you still have a forest fire i think on the fed side, tyler,

the fed is basically said that they changed three of the eight spark plugs so far and they still have work to do and markets are so desperate for this awful period to be overwith that we're rocketting and rolling. i don't think we're listening to the fed quite closely enough so it might be beginning to roll over but this notion of transitory that ron is going to talk about is an important concept. i think it's going to be a long time still coming. i think it's too early to pop the champagne corks. >> we're not listening to the fed closely enough how could we listen better what are we missing? what is getting lost in the translation? i want to see jay powell say that economy slowing enough and the fed is going to start to stop raising rates

that is excluding energy so we're a long way. it worries me that these fed governors are sort of floating this 50 basis point hike out there. mr. chairman, jay powell, my dear friend, if you want to listen to one thing, please, if you just raise 50 basis points in september, expect the stock market to rally 5% that's going to be the sign that you're willing to put your money or less of your money where your mouth is in taming inflation i'm not sure that's what you want so i would stick with it as long as you are still concerned about it >> you're going another 75 here? >> absolutely. >> okay. let me turn back to --

>> yes >> let me turn back to ron ron, we've been talking about you constantly since you left us you said nice things >> everything is nice. make the case here on the transitory 2.0, shall i put it that way i think right now we're starting to see a lot of indicators that indeed inflation is a passing phase if you will. transitory doesn't mean two months it never did we had bursts of inflation that fell back to normal or normal in the post war years in many ways, we're starting to see not just commodity prices following and home prices following and shipping costs

falling, i was talking to a luxury rv manufacturer the other day. he's getting parts they're coming in on time. and he's able to negotiate with some of the vendors on pricing that is something we is not heard throughout this entire cycle. i think we're going to see this become a more common phenomenon in the weeks and months ahead. entrenched consumer psychology with respect to inflation is not the problem that the fed feared. so i really think that, you know, in prior periods, it must have felt just as bad to go two or three years of this we've been through one year of elevated inflation and everyone thought it was a secular phenomenon i still don't. >> all right let me ask you, let me ask you one further not here it looks like do you think this

more benign inflation environment if i may use that word is going to help lift equities as we move into the fourth quarter of the year, those third quarter earnings and through the elections. >> getting past the mid terms may be important one thing that my surprise the markets is they're no longer doing as badly as feared according to the late environment polls either in the house or in the senate i wouldn't call for a secular bull market here there have been opportunity sets that presented themselves with beaten down shares in some very, very interesting areas i'm not looking for a pivot. i'm not looking for them to cut rates. i'm just hoping at some junk t juncture they slow things down a bit. >> ron, it was a great to get you back on there. >> thanks. >> thanks. >> after getting slammed for a

large chunk of the year, tech is having its moment in the sun since the end of the market closed on june 16th, the nasdaq is up 21%. same for the second sector 21%. and some individual names that had been tossed aside by investors have come roaring back apple up is 31%. amazon up 36%. net up 42% and meta, 11% for its part let's bring in our partner and portfolio manager at clockwise capital. i mean wow did people miss the rally, james? >> i think a lot of investors did. but, you know, the way that we've been on your show talking about it is that during times of economic uncertainty, the money will ultimately go where there is the highest degree of confidence in sustainability of the growth curve we saw in the first half of this year was a big questioning of that sustainability as growth rates came down because so much demand is pulled forward

yes demand is pulled forward but they -- growth rates reverted back to original growth curves and they're here to stay for the best in class companies for the cloud first companies for the true platforms of the tech world we continue to be very long and bullish. >> would you be a buyer of meta or facebook here, james? >> meta is actually one that going to possibly revisit as we get closer to the end of the year, once way have the full year anniversary the privacy changes. it looks interesting at a lower valuation. right now, it's certainly not anywhere near the top of the list for companies that we want to own. >> spotfied and uber, those are names. if people say what are names that still could have, you know, near term runway we're down i think about 40% and 20% respectively from january. >> sure. i think we basically put night

three buckets, short, medium and long term. right now the name of the game for any investor is duration management you have to be so agile. factors can change in a split second looking at the short term on us are being adjusted basis, we really like amazon we talk about that on the show we still see that as a $225 stock at least and medium term, we like the cloud first companies like the snowflakes and then longer term, we think that the uber, airbnb, these are companies we own in the portfolio. very confident in them at least triple from the current levels obviously, we have the macrorecession overhang that continues to monitor and you have to be aware of. but that being said, those stocks that you just mentioned that got depressed the most, there is room for multiple expansion and earnings power that is not given credit for right now in the market.

>> james, the question is for those who are looking at these valuations is are we going to see a reset of the reset you know, we've had this kind of roaring come back. is there going to be a -- is the same shoe going to drop? >> yeah. i don't want to say that bottom is fully in. that is a dangerous thing to sachlt but we're operating as such as thing dozen run up, we are hedging our positions of things have run up very fast. we're looking to add options to hedge out the positions and trim where we can the buys remain long we're net long and those companies, like i said, on the platform, cloud first and best in class like those names we mentioned were not -- we won't be long term shareholders we think the share prices you see now won't come by again for a hong time. >> all right

james, thank you very much good to you have back. james with clockwise capital >> all right coming up, what a bottle of bourbon tells us about inflation from corn to wheat to labor to glass. the head of micters tells us what he expects. and bed bath & beyond's stock surge doesn't make any sense to one analyst. we'll talk to that person about his $1 price target for bed, bath & beyond. before the break, a look at shares of rocket lab up 18% 30% for the week following upbeat guidance on revenue "power lunch" is next.

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welcome back to "power lunch. can the real state of legislation be found in a bottle of bourbon breaking down the current production costs and what they expect to pay next year. let's take a look. corn prices up 57% already barley and rye grain prices up 60% for next year. after harvesting, the aging and bottling process also more expensive. glass prices up 53% from 2020 h barrel prices 7% to 10% higher you move on to the finished product. they also ship wine made in italy back to the u.s. those costs up 163%.

wait times to ship product from kentucky to europe, those are more than double it's harder to get bbottles from warehouses to shelves. a third of products don't get picked up on busy days and wait times tripled. the you have a product that costs more, takes longer to market, a recipe for higher prices let's bring in the president of the distillery joe malioko welcome. good to have you with us >> thank you so much for having me on, tyler after hearing that, i think i need a drink >> i think we all need a drink we began by saying if inflation can lock it up in a bottle of bourbon, i said i'm willing to explore that so let's talk about what you had to do with your final retail prices in light of these input costs going up so much

>> yeah, even though that july jeer over year cpi index is 8.5%, you know, what we're really seeing is a lot of cost items for us are going way, way beyond that as you just, you know, so well outlined i work between michters in kentucky and chatham imports in manhattan which, you know, sells gin and imports wine we're just seeing tremendous increases like you've never seen so much of the world's grain gets exported. >> forgive me for interrupting how much of these costs increases are directly or attributable to what's going on in ukraine and we can't ignore the fact

that a lot of grain, whether it's corn, wheat, whether it's barley, comes out of either ukraine or russia? >> some figures i see are from ukraine. something like 17% of global corn exports go through russia and ukraine. one thing that is happening in the outline, you know, our corn prices soared. our organic meat prices making an organic grain or wheat from i'd hoe for farmer's gin, we were hit with it at once 69%. the guy we work with is a great guy. we were able to negotiate down from that. but, you know, with corn and wheat prices going up so much what is also happening is other grains, you know, not because of

the war directly, have gone up a lot of people have seen the price goes up and have started to switch barley crops as well as rye crops and to wheat and corn the result is that, you know, a lot of distillers in kentucky are being told brace yourself. as you indicated, we're being told that, you know, rye prices in 2023 could go up 56% to 68% if you use rye we've also been told that barley could go up near to 37% to 47% so we're seeing tremendous increases. and then there is all this other stuff. >> joe, does that then, when you see the headlines this week, you know, cpi flat, ppi down, do you just think to yourself, it doesn't matter you as a company sound like you're going to be raising

prices into next year just based on what you're already experiencing >> yeah. you know, we kind of have to you know labor, you know, people have to live so labor costs are going up. and all these other costs. they may have a freight surcharge. they started that in 2021. they never used to have an energy charge. they started that in 2022. the solution is to raise prices. we have a price increase on michter's this summer. we increased on our wine and other products that just something that you have to do nowadays. the good news for the industry is that, you know, the brands that are good brands have been able to take price cuts successfully people are living in these times and strong brands performing

quite well. >> two quick questions roughly how much did you have to raise prices on the spirits and wine >> the wine prices, we raised it fairly substantially probably about, you know -- probably i would say 7%, 8%. many the michter's range, probably depending on the type, anywhere from 5 to 10% so, you know, maybe not quite keeping up with inflation. but attempting to. >> enough to hopefully help blunt some of the rising input costs. we've been talking about what parts of inflation are sticky, in other words, likely to persist. obviously, agriculture commodity prices can yoyo a great deal they go up and down. but there must be portions of these price increases that you have experienced like what you're having to pay for labor

that they're not going to fall back >> you're right. there are certain commodity prices things like the grains hopefully, you know, hopefully this conflict ends hopefully the conflict ends and things get normal. labor costs, thaez are going to keep going up. i'm not so sure that glass prices are going to go down. >> yeah. a lot of energy gets used to make glass i'm not sure that's going to go down >> joe, thank you so much for your insights today. really breaks down in an individual product how price goes higher and our famous scoration is inject liquidity. have a good weekend, my friend. >> thank you so much, tyler. thank you so much. >> still ahead on this show, the $1 billion florida man, ken grif

unspending over a billion dollars in florida real estate in the past two years. we will lay out his big bet. as we head to break, check out some of this week's tech winners as the group makes the turn around the rally driving money into popular tech etfs. we have the details next bubbles bubbles 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.

time for our etf tracker report we focus on techs as the funds brought in more than $500 million of net inflows the biggest driver is the continuation of tech's recent rally. nasdaq up more than 20% from the june lows. and we've seen big moves in big names. amazon up 30 in a month, meta. this week, new data show inflation may have peaked. that has further given a boost to the names among the specific etfs seeing the biggest inflows, technology select spider, vanguard information technology, and ishares u.s. technology etf. the data come from our partners at track ib snsight you can find it on the ft willshire etf hub. let's get to frank >> here is the update at this

hour former president donald trump has until about a half hour from now to officially signal whether he will contest u.s. attorney general merrick garland's move to release fbi documents over the search of his mara -a-lago residents. he said he would not oppose the release of the documents they released 11 sets of classified documents some included in top secret and meant to only be in special government facilities a ship approached ukraine to pick up wheat for hungry people in ethiopia. in the first food delivery to africa under a u.n. brokered plan to unblock grain trap by russia's war in ukraine and bring relief to the millions worldwide on the brink of starvation and one month after 4,000 beagles rescued from a virginia rescue lab, the pups were taken to animal shelters around the country.

the they were being sent to california, wyoming, massachusetts in the hopes of finding forever homes after lufg in very deplorable conditions. they're so cute. >> that's the very latest. >> i had a beagle when he was growing up thank you, frank ahead, bed bath and beware we'll speak to an analyst who says not to buy into this stock's rally. kelly? >> plus, consumer dissection we're breaking down the discretionary names making come back from the june lows. that's today's three stock lunch. finding the perfect project manager isn't easy.

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welcome back to "power lunch. 09 m 90 minutes left in the trading day and week it's been four strong ones let's get caught up across the markets on stocks, bonds, commodities and bed bath & beware the fourth fwheek a rove gains for the s&p 500. that is up almost 3% since monday at least 2%, 2.5% gains for all three major averages now the nasdaq in particular has been on fire it's up more than 20% today from the june 16th lows and the chip stocks which have been a drag earlier now leading the way with the best performer in the s&p 500 up more than 7% we spoke with the ceo on the

show yesterday optimism about that new hampshire plant, the new one, about the potential effect of the chips act, that is helping to lift this whole group meanwhile, get a check on bond yields. stocks are rising. what are the -- i don't know how to word the use, rick, the bond yields how are they doing >> well, i'll tell you what. if you look at bond yields, what you'll notice is that they're all slightly higher on the week. but it's mixed on the session. two year and three year note yields are higher. rest of the curve is lower but let's look at some june 1st charts this is fed fund futures for december what i want you to notice is at current price, 9656.5, it's implying an end of year rate of 3.435. remember that number because if you consider the next chart, this is june 1st chart of two year note yields they topped out on the 14th of june with all treasury yields the now what do they top out at? what is that maximum distance noor two year?

3.43 exactly the same and ten year is on the 14th, also 3.47. the high yield close the so if you want to know the terminal rate, maybe that's why the market has been rallying as a matter of fact, so if you have the 14th rate peek, 15th the federates raise rates .75, the 16th, nasdaq bottom. 17 k, s&p 500 and dow bottomed if you look at boonz, they bottomed on the 21st of june all of this makes perfect sense. and if you look at the dollar index, this chart starts on the 14th of june on the 21st, right around the 21st, it started to make a big beeline higher but what is interesting is on the 16th is when it made the last low 103.63 why am i giving you all this history? it's pretty clear. markets think there is a peak and on the they're starting to not only give stocks a big boost but interest rates are still

unable to reach their mid june peaks. what does this mean? by the time everybody agrees that maybe there is actually a piston the way, all got trades are going to be gone kelly, back to you >> but what kind of pivot is the next one that is masterful, rick. i lot of connections let's turn to oil. pipa has the latest. >> hello, kelly. it is down lnon the day with brn back below 100 wti are on track for a weekly gain natural gas and gasoline futures are also advancing on the week posting a third positive week in four which doesn't necessarily bode well for the direction of prices at the pump now since we've been talking about the energy crunch in europe, take a look at this chart. it shows the soaring cost of power in france and germany. you can see just how quickly those prices have risen. the drought you were talking about last hour playing a big

part here. rivers are drying up leading to a reduction in hydropower they're used to cool nuclear plants and transport commodities. and this, of course, comes as the block tries to move away from russian fuel. now elsewhere in the energy space, the house debate on the inflation reduction act is under way. and we're seeing gains across green energy stocks. lithium players and lithium america and piedmont lithium all on the move. piedmont lithium up 20%, actually and then solar names, maxion and shoals technology in the green with hydrogen stocks plug power and bloom energy also rising >> thank you for making the connections with the energy situation in europe. and we wait to see still what the ramifications will be here all right. bed bath and beyond. buy or beware? shares of the company surging about 150% since the start of the month. but our next guest says don't buy into the hype or the rally

p joining us is the managing director at luke capital he has a $1 price target on the stock. anthony, what do you think accounts for this latest bout of retail enthusiasm? >> i think this is another meme stock driven short squeeze the short interest of bed bath & beyond is quite high and so, you know, i think that it's a usual cast of characters. the wall street bets crowd the you know, pushing the stock up there certainly are no fundamental reasons for the move that we see. if anything, the fundamental picture got worse over the last several weeks. >> and maybe that's what sparked the increase in short interest you think the stock is a short can the retail army spoil the result of that trade for you >> well, you know, i think it goes back to that old saying, the market can remain irrational but we can remain solvent. i can certainly see this continuing in the short term

but in the near -- but in the long term, you know, the stock price is going to have to reflect the fundamentals of the business the fundamentals are terrible and getting worse. >> so let's just call this bed bath and buy that is what we're talking about here bbby the debt picture is extremely serious. isn't it they have a lot am coming due. >> so they have $300 million, a little less than $300 million in debt that comes due in 2024. then they have other debt maturities in 2024 and 2044. but i'm less worried about the debt maturities. i'm more worried about the liquidity position it's really deteriorating at a very fast rate the they're down to $100 million in cash. they already have drawn $200 million in the credit facility i'm more concerned about that. you know, giving them more

onerous terms. >> that's a key question the if the vendors see that they don't have cash, are the vendors going to require more money up front to give them the laundry baskets and knives and plates and linens that they do? >> that really is the $64,000 question to give you history here, that's what did end circuit city. circuit city, you know, at the time that they went bankrupt, i mean they were struggling. but not nearly as bad as beth bad & beyond is. they also had a lot less debt. the vendors just lost faith. they ended up in a death spiral. and that is the scenario that i believe we could see with bed bath & beyond. >> what if anything could avoid that scenario? >> so, look, the only hail mary pass that i see at this point is if they raise equity the if they are able to basically sell a bunch of new stock and pay down debt. and essentially, you know, forestall the demise

we saw gamestop do it and amc do it the problem is it would be incredibly diluted to their existing shareholders. and by the way, you know, they're going to need to raise a lot of cash. we're talking about $5 million at least enough to pay the $200 million that they have outstanding on their asset credit facility and the $248 million that is am coulding due in 2024. >> shouldn't they do that right then now at this moment with the stock where it is? >> well, two things. it's a lot easier said than done the other thing is when gamestop in particular did it, i mean, the stock price was significantly higher significantly higher so look, let's give you some numbers here let's just say the stock is at $20 and they issued $500 million a stock. that would be $25 million new shares issued. they only have $80 billion shares outstanding now >> well, again, if you're describing a crisis, then

perhaps nothing is too farfetched we appreciate the thought either way, anthony for your conviction. thank you for joining us >> thanks for having me. >> anthony chkumba of luke capital markets. tonight, speaking of which, we have a cnbc special. the return of the retail trader. dominick chu digging into all angles of this revival we're seeing gins at 6:00 p.m. eastern on cnbc. >> between mansions, personal land and corporate properties, ken griffin spent over a billion dollars on and in florida. robert frank is live outside of ken's star island mansion. robert >> well, tyler, they are the two magic words right now for florida real estate brokers ken griffin. he spent over half a billion dollars on land over here on star island and in palm beach. we'll take you inside his record breaking buying binge and what ea f fri rl ea estate

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we heard a lot about millionaires and billionaires moving to florida to take advantage of the zero state income tax

and the weather. but no one has made a bigger bet on florida than ken grich e. griffin. robert frank convinced the bosses he had to be there in person to report this store i y he is clearly a persuasive man robert >> well, tyler, we have never seen a shopping spree in real estate quite like this with ken griffin. now behind me is star island that is where ken griffin purchased four properties for a total of $175 million. he is going to put all the properties together, tear down the houses and build brand new home similar story in palm beach. he spent $450 million to assemble 25 acres, that's larger by the way than mara lag yo just down the street. he's going to build a new 44,000 square foot home there meanwhile, citadel which is moving the headquarters from illinois to miami, they have spent over $600 million near miami. that's for empty land, temporary

office space, and leases so add all that together between ken griffin and citadel, over $1 billion in south florida brokers say all that spending is starting to ripple through the real estate market >> prior to the citadel relocation use, i think we were going see a plateau as to the number of financial institutions, hedge funds, tech companies moving down here but after that announcement, it's really soaring again. >> you talk about wealth migration, taxpayers with over $23 billion worth of income have moved to florida in 2020 that is the latest year available. but after this citadel announcement, brokers say that migration shows no signs of slowing. guys >> so you need a huge house in west -- in palm beach in that area which is an hour north of miami. you want to start -- who else lives on star island

it is a large mecca of money >> yeah. money and fame you have diddy, gloria he is that fan, a-rod, j-lo used to live there too right now ken grif unis really the cunning of star eye land and it's exclusive it is only 18 minute drive to the new headquarters across the bay. so it's a perfect location and, you know, what brokers say is once ken griffin started buying on star island, prices there went up for everything there is a new listing for $90 million. and on brickle where citadel is based, the commercial space there is now going in some cases for higher rent per square foot than even in manhattan so they are having an impact >> all right robert frank, thank you very much >> incredible. big, big change. big change >> still to come, safe for consumption.

retrieving the best performing stocks in the best performing sector since the june lows that is in our three stock lunch. and let's take a peek at the markets right now at session highs, moving higher led by the nasdaq with the 1.75% gain similar for the russell. all major averages about to close out with more than 2.5% gains for the week the fourth straight week for s&p 500. first such stretch since november stay with us 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. you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine.

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welcome back i want to take your attention to shares of doordash which are higher now they turned higher after the company strikes a deal with meta to deliver items sold on facebook marketplace the program has launched in several u.s. cities. dash shares are coming well off their lows of the day and are up by about a half a percent. time for today's three-stock lunch. the consumer discretionary sector best performing from the june lows up 26% as a group. some of the top stocks are ford, starbucks, 24, and penn entertainment with a 40% gain. so let's take a look at those names with scott nations, president and cio of nations

shares first up, scott, is ford what do we think of it after its recent rise? >> tyler, ford is a buy. it's going to be the leader in the ev space even though we love to talk about tesla. they just reopened the order book for their lightning f-150 vehicle. they just opened it yesterday. they had to close that because they were trying to align supply and demand so they're going to sell more of those at a higher price. they're going to raise the price anywhere between $6,000 a vehicle and $8,500 a vehicle that's wonderful for a vehicle that was already immensely profitable they struck a couple of important strategic deals to help their supply chain and they're going to end up making 100 times more evs this year as lucid, even though their market cap is only double that of lucid and with a forward pe of ford of 8 versus a forward pe of 60 for tesla. ford is not only going to be a

leader, you're going to buy it at a bargain it may be sexy to own tesla stock. it's going to be profitable to own ford stock. >> that's the ford view. what about starbucks >> starbucks is a little bit different situation, kelly affordable luxury, maybe not so much in-store traffic was down just over 4% in june. and starbucks has a problem. are they going to raise prices to maintain margins or take a hit on margins and a hit on the bottom line? they're not alone in this space. dunkin is making a big push in the pumpkin space. so starbucks isn't going to have it to themselves the company is wonderfully managed but with a pe of 28, this is a hold i would not be selling but i wouldn't be adding to anything if i already owned it. >> let's move on to the last one, which is penn national gaming or penn entertainment >> penn entertainment. it's up a ton today in sympathy

with the parent of draftkings. but customer acquisition for all of these names is still a tremendous problem i think the problem for penn entertainment is they're trying to solve customer acquisition as a technology problem rather than a sales problem. they missed earnings four quarters in a row, earnings estimates four quarters in a row so kind of a fool me once sort of thing for penn entertainment. this is a sell it's wallowed to get off the bottom and i would sell it here. >> all right, scott, thank you very much. we appreciate your opinions on those three stocks, ford, starbucks and penn super at the same time entertainment. >> and we'll take a look at some n'gonywhe.stories next dot aer power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills,

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welcome back to "power lunch. as we close out this week, we want to put a couple of other stories that have caught our eye today under the microscope starting with this big intraday move in peloton. this is on job cuts. they're closing a significant number of retail stores, cutting almost 800 jobs and raising prices on this equipment for example, ty, the peloton bike going up by $500 to almost $2,500 >> as some people know, i have had an injury. i tore my achilles so i've just gotten back on my peloton.

i wonder whether in these 780 jobs some instructors will lose their jobs they have resisted doing that all along. >> i would hope it's just corporate staff or related to the store closings, maybe some retail positions. >> and wasn't it not long ago they cut the price on some of their bikes. maybe it wasn't the particular bike plus that is now subject to price increases, that they have cut prices on those things and raised the subscription price, which i have noticed, by the way. i wonder where this company will be a year from now there's a big liquidity issue. >> i am impressed you're back on the bike this quickly. >> i'm back on the bike. i'm not going the way i used to. i missed it. it is a good economical in terms of time used way to exercise. all right, let's take a look at shares of stitch fix up 42% in a month, still down 80% from highs. the company may be the victim of box fatigue. at one point subscription

clothing services were all the rage in retail in may, nordstrom announced it was closing down the trunk club. maybe post-pandemic people are happy to get back into stores. i think subscriptions, subsc subscription models have maxed out. i'm cutting subscriptions. >> we all hate the idea of having to pay monthly when we don't know what the finish line is going to be interestingly though, as well, the box services themselves, some of these kits have proven unsustainable. they're unprofitable or the classic uber problem here's a problem everyone likes at one price or service point but once you have to start making money, a little bit different story and they can't keep it going. >> and after the novelty has worn off a little bit, then your desire to spend wears off. we had one of the meal service companies that would send us boxes. and they always said, oh, this recipe only takes 20 minutes no it always took 45 minutes start

to finish. oh, well >> i thought they came out well but i always got complaints at home that there wasn't enough food that's no way to make money in the long run. >> it's been a great week. >> it has. >> nice to be you. >> i will see you next week. thanks for watching "power lunch," everybody. >> "closing bell" starts right now. stocks are at session highs here, pacing for another winning week, the fourth in a row for the nasdaq and s&p 500 the most important hour of trading starts now welcome, everyone, to "closing bell." happy friday i'm sara eisen take a look at where we standing, 58 points higher on the s&p is the high of the day as i mentioned, every sector is higher, up 1.4% on the s&p 500 the best performing sector is information technology but consumer discretionary is right behind there's a number of sectors up 1% materials, communication services, financials, utilities, all up 1%. real estate and health care too.