s. good afternoon, everybody and welcome to "power lunch. alongside kelly evans i'm tyler mathisen coming up stocks are falling today on signs that inflation maybe is not slowing as fast as everyone hopes the cpi showing prices rose 6.4% from last year we'll dig into what stubbornly high inflation means for the fed and for the market >> plus we're continuing to cover all things ai. today, in fact, we talk to the head of c-3 ai, the company with ai as its ticker tom sebold was ahead of the game but with google and microsoft and all of their data getting into the game will they crush

the little guys? first let's check on markets stocks are sliding but off the lows after that cpi report dow had been down more than 400 points it's down 130 while the nasdaq has turned positive. >> let's check in with kristina prnls pshl partsinevelos who joins us in studio for a look the awhat's moving >> stocks are wavering after that cpi report but the nasdaq i want to focus on that because it's still up fractionally if it will t. stays positive it will be two straight days of gains and tracking for its best february since 2019 so far let's talk about the movers, tesla, kains cadence design, nvidia cadence on a positive earnings report that came out last night. nvidia is moving on bank of america's price target increase. they believe the chip name is well positioned to lead the ai arms race. we are talking about that. that's definitely a theme this month. on the s&p 500 auto parts supplier aptiv, the ticker is aptv, up 8% after a reuters

story said the firm expects sxrechb operating income to surge by 2025 driven by strong demand for electric vehicles rivian, tesla also moving in sympathy on that bullish call from the company boeing top dow leader right now. earnings were okay but they did get a massive order from air india nearly 500 boeing planes you can see the share price up almost 2%. lastly software firm palantir continues to surge after posting a surprise profit yesterday after the bell in the fourth quarter and you can see shares are up a whopping 15.5%. kelly, tyler, back to you. >> kristina, thank you very much we start with that key cpi data and the somewhat bad news for investors and that is that things on the inflation front are still a little bit hotter than the fed would like to see inflation rose 0.5% in january from december. that was a bit more than expected and up 6.4% from a year ago. here to discuss these numbers and more including leal bernard

leaving the fed for the white house is steve liesman take us through these cpi numbers. they're a little bit perplexing i guess. >> yeah. perplexing perplexion the confusion began on friday because the bureau of labor statistics did its annual revision that took a negative 01 we thought we had in december and made it into a positive 01 it also revised back to 2018 the bottom line is inflation, we did not get the disinflation we thought -- as much disinflation as we thought we had in the last half -- last part of last year come to today and the numbers come in a little bit hotter than expected they're still going down you still have the disinflationary process. but what we call the second derivative, the change in the change, is not as fast as we had hoped far and expected i think the story here is tyler there is not going to be a straight smooth road to bringing down inflation there's going to be days like

this it's going to happen we still think that inflation is coming down. it's the general forecast of economists out there on the street it's just going to be kind of more like th than -- >> where were the hot spots in this somewhat hotter than expected report? was it rents and housing was it eggs again? what was it? >> eggs were up 8 1/2% 70% year over year for your eggs, tyler. that's a big story >> that's what i'm giving my wife for valentine's day, a nice carton of eggs >> i think the way to start with in the what's hotter than expected question is the energy gaveth and the energy taketh back away, which is a big part of the disinflation we've had has been energy prices they went up 2%. i think they're maybe down again in february. that's a part of it. food was up 0.5% you've got a little bit of bump from some of the insurance numbers that were in there used cars came down. new cars were up so a little bit of back and forth in there i think the thing we're looking at is goods prices are coming down

the key is the service sector x housing, x energy. that's down but not as much as to give fed chair powell comfort that the labor market is not pushing up inflation >> well, and then we have -- so as we're sifting through all of this data, one of the key fed officials is leavinging. lael brainard. is there some significance there in terms of someone who has a lot of market's respect, also perceived as a little bit dovish i don't know that her replacement would not zbln the thinking was that brainard was a good countar part to powell who's not an economist brainard is an economist she has a lot of experience working internationally as well, so she brought that expertise to the table. i think she's going to be missed in and of herself. but the key is how she's replaced is she replaced with a macro economist at that top level? you know there's this thing they kind of call the troika, new york fed, president chairman and vice chair of the federal reserve board. those three are seen as the key policy makers. brainard has been in there she's been a little more dovish.

not necessarily on policy. she has voted with the chair and supported the chair in all of these rate hikes we've had from march on forward but her explanation for what will happen with inflation going forward has been more dovish she sees a way out of this without big pain to the labor market rather than powell who seems to think you've got to have some increase in unemployment in order to bring inflation down >> you mentioned the head of the new york fed that's john williams i gather you have some news for or about him >> yeah. pretty much in line with what you would think. john williams new york fed president saying this hour that our work, his work, not my work, our work is not yet done williams says inflation remains vaited and the labor market remains extremely tight. and he sees three things that could hurt the fed's effort to bring down inflation european economic resilience to china reopening and stalled supply chain improvement are thae threats, he says, to the decline in inflation he wants to see

he's yet to see the inflation services x housing improve and he says demand remains well in excess of supply some other news in commodity, price declines are coming down but not enough he says for the fed to hit its 2% goal, tyler. >> this to keep with the kind of theme of the day, hawkish talk a little bit what do you think? >> i think we're 3 for 3 barkin -- no, 4 for 4. barkin, harker, logan and now williams, four >> and who might replace -- >> and who read all four speeches you know why i read them so you didn't have to. >> so we didn't have to. i'm loving that. >> quick final coda. in terms of short list to replace brainard anything you're hearing? >> i have not heard anything it's interesting to think if the white house would want someone who was inside the white house for that job powell doesn't quite get a say in it. he kind of gets a little veto maybe, which is don't give me that person to work with but it wouldn't be his pick. he would have a say in it. >> a lot of people say this puts brainard in position to succeed janet yellen should janet yellen

depart or not take the role in a second biden administration, should there be such. >> i think there is thinking that janet yellen will step down perhaps sometime during the year there's that thinking out there. and that brainard would be a person who would be high on the list or a person of interest >> i just can't imagine someone coming from a biden white house onto the fed wouldn't be dovish. i'm not struck that -- i don't -- you know what i'm saying in terms of market implications. >> kelly, it's like the shows are coming -- who's a dove at 6% inflation that's really the key. the difference between thing doves and the hawks is like this >> i'm a dove. but if they start getting really worried about a slowdown coming, we're in this moment where it still hasn't -- >> you're right. we will have that discussion about doves and hawks like in march and may. right now it's full hawk ahead >> steve, thank you. we appreciate it let's turn to the market now mostly lower as wall street tries to digest this report showing inflation is still hot and persistent our next guest says the read-through is that the fed will stay higher for longer.

let's bring in sirat seti, managing partner and portfolio manager at dcla. he's also a cnbc contributor sirrate, welcome one question for you this is like the third time i've read a similar intro today about people expecting a higher for longer fed does that give you any pause here that maybe things are going to play out differently than what the current consensus clearly is >> you know what i think when you look at the data coming in you look at where the economy is and yes, we have leading indicators saying things are softer but you also have the positives that the economy is still strong and the fed sees that. they're going to keep rates higher they're going to keep them higher for longer. and that really, if you're doing what we do, which is investing capital, you have to kind of marry that with what earnings are going to be as well. i think that calculus is changing in the sense that look, we're not going to get this drop-off in interest rates that people were expecting at the beginning of the year. so valuations have to then actually adjust to that.

and i think that's where investors really have to focus >> people, sarat, always like to know where specifically you're looking. as stephanie link said yesterday, it's a year for stock picking she thinks with all of these cross-currents, market timing's going to be really difficult so how do you get to a delta -- to american sxrs and for what time horizon do you feel comfortable with exposure to those names? >> i'm looking at valuation too, and i think that's going to be really important you want companies that are reasonably valued, that -- and both of these, american express and delta trade below what the market is trading at and you look at earnings expectations what is management saying? so amex even on their last call confirmed what they're going to be growing double digits they are in the sweet spot of the premium card business. gen y and z users are using their cards more and more. and as we've seen, people have moved from goods to services they're traveling, they're spending more on entertainment and the interesting part on both, it actually goes to amex and delta. if you look at it, the leisure traveler has really picked up.

they didn't really have that precovid that was really being carried by the business traveler. if that happens in addition to the leisure travel, prices are still going up amex makes money as prices are up don't forget, they make their percentage based on charges. trades at 16 times earnings. so if you look at kind of where they're going, it really is in the sweet spot for the next two to three years >> why shrnthouldn't, sarat, pee just go own a five, six-month t bill instead >> because i think if you look out two to three years you're going to get a better return take a stock like amex trading at 16 times. if it grows 10 first to 12% a year with a 2% dividend yield you're going to get a double-digit return as opposed to 5%, which you're absolutely right, you can get for six months but let's look at what the yield curve is, two years out. maybe rates go back to 2% or 3%. at that point what do you do with your zmapt because the stocks will have already reflected at that point when rates go down the valuations go up delta is seven times earnings and free cash flow positive.

the best-run airline out there they're trading at seven times earnings if they grow their earnings 10% you're going to get even without any multiple expansion a price uptick that's kind of what we're looking at there's no question that based on any individual allocation should you have bonds it's actually a better time to buy bonds than we had for many years for the last probably five years. there is another alternative but if you're going to be exposed to equities and that's part of your allocation and that's part of your risk profile you really want to pick stocks that are cheaper than the market, that have better outlooks than the market and that actually can actually do better than what we think by just holding cash >> sarat, thank you very much. good to have you with us as always sarat sethi, appreciate it >> thank you >> coming up, what is the real state of the retail trader how is trading activity holding up we'll ask the founder of interactive brokers as that company's stock hits a new all-time high today. and we'll also talk to the head of c-3 ai.

tom siebel his company has been working on ai for quite a while microsoft and google somewhat later to the game. but are they big enough to catch up that's what they're doing, pling tcupaycah- that's all coming up on "power lunch. ♪ ♪ a cyber-attack can grind everything to a halt. cisco security keeps your company moving forward. because if it's connected, it's protected. cisco.

the stock market is having a positive start to the year so far. many retail investors do seem to be looking for safer alternatives following big losses last year here with some more on the shift and the state of the retail

investor is thomas pettierphy, founder and chairman of interactive brokers joins us from the bank of america financial services conference way across the river over there in new york city welcome. good to have you with us in the past week we've had two guests on, one who said that the retail investor is sort of pulling back, not making as many trades, making maybe smaller trades, another saying no, not so, it's actually higher what are you seeing in your business >> so our customer type is less of the regular relate and more of a professional trader but what they are doing is they have lightened up on their stock portfolios and have transferred their risk taking to options they often use vertical spreads to take a bullish or bearish

position in the market and they get a better risk-return ratio with vertical option spreads than they would do with pure stock holdings >> so here you're describing -- forgive me i just want to make sure i'm understanding. you're describing the behavior of your clientele, which leans towards professional investors >> absolutely. and secondly, given that we pay 4.08% on idle cash in our brokerage accounts many customers find that a better alternative to holding stock especially when the market is at the point where many people think it's amazing, but it may not go much higher from here on. that is certainly a better alter alternative. >> so how would you characterize that behavior of the

professional investor moving away from holding and/or trading stocks to playing options? are they speculating on price movements or are they really investing? what are they doing? >> basically, investing is speculating on price movement. >> that's what i thought >> the only question is how long of a time horizon you're looking at, right? with options you can go out a year or two, so you can do the same thing with optionses ar as you do with stocks it's basically not very diff different. and as i said, the risk-return is much better because with vertical spreads you can drastically increase the amount of capital you have to put at

risk and still benefit from a move in the market that goes in the direction that you expected. >> very interesting. thomas, always good to see you i'm sorry we're a little short on time today. we'll have you back soon thank you again. >> thank you very much >> thomas peterffy >> further ahead on the show, farm equipment manufacturers making some big sales over the past year. but some think the cycle'll is slowing down plus dry cleaning the environment. getting your suits and dresses pressed can cost a lot but it can cost the planet even more. we'll discuss in today's clean start. as we head to break here's a look at those yields we were talking about in treasuries after the cpi 3.76 on the 10 yar llwel adw over 3% on six-month bis 'lhe to the bond pits for more next

welcome back to "power lunch. stocks are mixed at this hour. we're well off the lows of the day when the dow was more than 400 points the nasdaq's even positive kristina partsinevelos is here with the market flash. kristina >> although we're still awaiting a 13-f filing from berkshire hathaway we have received 13-g filings which show any current passive positions above 5% in a certain name we're seeing berkshire reducing its stake by 1%? rigged r n. video game company

activision it's not reacting too much right now. then you have increasing a stake by almost 60% in the bank of america mellon leaving berkshire with a much smaller 3.1% stake in the bank. that means they won't have to file in the 13-gs anymore. lastly the third big mover it owns 10% of outstanding shares but keep in mind this is a passive position and hopefully we'll be getting the 13,-f in th coming minutes or hours. >> kristina, thank you let's get to the bond market reaction to this morning's cpi report rick santelli. what do you make of it, rick >> i found it to be pretty much as expected. we didn't match expectation buzz in the end it's never about expectations it's about history. it's about what's in the rearview mirror. and when you consider two-year notes at the high water mark in november, 4.72, still about ten basis points away. and if you look at what's going

on with ten-year note yields you can clearly see yes, we've moved up yes, we're getting closer and closer to the magic resistance level we were earlier at 4.80 but that's still a long way from 4.25 which is the high water mark and finally fnd fed fund futures. the fulcrum shifted. today if you look at prices go down p stops at august, not september. august is making a new low for the contract it's going to make a new low close. that brings more fed and for that i think we need to find a trader. hey, dave. do you have a minute lirngs dave, what today but with respect to how cpi played into the market >> cpi big number. people were panicking. they wanted some options they wanted the calls in case we rallied. they wanted the puts in case we crashed. they wanted protection number came out raefltly in line nothing crazy. >> so you're basically being polite but -- >> hammered it in the volatility now it's kind of leveled off

there's numbers tomorrow we've got retail sales tomorrow -- >> industrial production let me interrupt you there >> go ahead. >> we're not expecting a whole lot. >> no. >> four out of the last six months retail sales have been negative four out of the last six months for industrial production been negative capacity utilization is at a one-year low what are we looking for tomorrow what if there's a surprise that's really weak >> because stuff came off so hard today if there's a surprise we could go back up. volatility people want the options. >> i see the vix is down rather substantially and many traders and many viewers put vix and correlate with volatility. it is but there's a lot more going on in volatility than just what the vix is. >> absolutely. a lot of the real small stuff that really comes into play with the volatility but that's not the beefy options that people sometimes really need and want. >> the beefy ones go to institutions and we're going to have to leave it there david and tyler, back to you, sir. >> all right, mr. santelli, thank you very much.

time now for a check on oil prices and many other things with pippa stevens who has those numbers. >> bouncing from the lows of the day but still under pressure here and thanks in part to this $26 million sale from the spr by the administration now, it might not seem like that much on the face of it remember u.s. demand is about 19 million barrels per day. but when looked at in the context of russia cutting output by 500,000 barrels per day beginning in march the spr release is 26 million barrel sale will actually make up 52 days of that lost supply so we are seeing some downward pressure on oil today because of that these barrels won't hit the market until between april and june so some of the price activity is further out in terms of oil contracts and we're p seeing it necessarily today but the market right now is still in contango for wti. it is seen as oversupplied and it really feels like there's no longer a catalyst that could come in and change the narrative. of course famous last words. >> people are scratching their heads a little bit saying why the sales now.

you know >> it does seem like it's part of a program that was mandated from back in 2015. we knew this was coming at some point. but the administration, traders were thinking the next move was going to be to buy back. and the industry can't both buy and sell at the same time. it seems like they're getting this out of the way which does date back to 2015 and then maybe further, later on in the year is when they'll seek to replenish the spr. remember around that $70 range is what they targeted. >> pippa, we have to leave it there. pippa stevens. contessa brewer for a cnbc news update contessa >> hello there, tyler. democratic senator dianne feinstein of california, the oldest member of congress at 89 years old, says she will not run for re-election next year but will serve out the remainder of her term her decision clears the way for two house democrats who already have announced they're running for the seat katie porter and adam schiff and others have expressed interest an expert says a new study published today could be a game changer for a male contraceptive. this is perfect timing for

valentine's day. it shows when a drug is injected into a male mouse its sperm stops moving within 30 minutes, preventing a female mouse from becoming pregnant. a few hours later the mouse's sperm returns to normal. the study's authors say it could take years to develop a medical product for humans and since it is valentine's day, a giant panda in japan got a special treat. a jumbo dumpling made of bamboo flour and apple sticks cut into heart shapes it would be fun if you could see it ai-mai has fathered 60 cubs and is about 90 years old in human years. and there you have my valentine's day presents to you. >> thank you very much, contessa that's very nice good for him 90-year-old panda. ahead on "power lunch" artificial intelligence, real gains as ai becomes the new buzzword shares of c-3 ai reaping some of

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welcome back to "power lunch. everyone's talking about ai and it's being reflected in the stock price for companies like c3 ai with its shares doubling this year. but yesterday we had venture

capitalist adrian mendoza on who said the winners of the ai arms race are the ones with the data. take a listen. >> part of the issue with ai is it's all really about data and it's garbage in produces garbage out. in our view as an investor we really believe data is the new cur currency but you have to take a step back when you hear the start skrup pitches about ai, it's really looking at if you have good data to start with then you're going to be able to have incredible results. >> and for more on the future of ai we're joined by tom siebel, c3 ai's ceo. it's good to have you here welcome. >> hi, kelly >> is chatgpt the best or worst thing that's ever happened for your business? >> chatgpt is just -- we look at what's going on with generative ai, this is just another development in ai that we're able to take advantage of like supervised learning, unsupervised learning, deep learning, reinforcement

learning and now with generative ai this is a very powerful tool that we can take advantage of to dramatically increase the utility of these enterprise applications across all industries util utilities, defense, intelligence, oil and gas, precision health, whatever it may be >> i mentioned your stock performance. if you think it's been a good year you should remind people your stock was over $100 a couple years ago back when liquidity was at its apex. the question comes to the point some have made will the googles and microsofts leapfrog you, amazons and in the future be able to offer to enterprise cloud customers or whatever the very tools that you guys specialize in >> the googles and the microsofts look like partners t us they will be investing literally billions in this -- in generative ai. and as they make these tools available will immediately be able to take advantage of them

in our architecture. so as they leapfrog one another and add additional functionality our products just become increasingly functional. google is a close partner. microsoft is a close partner so the research they're doing serves as an accelerator for our business >> tom, i am below a freshman in my studies of ai so you're going to have to educate me here a little bit because i have an imperfect understanding of it. if the quote was right and it's garbage in, garbage out, where do you source or where do ai companies source their data? how constantly must you refresh it and how do you know that data are reliable or accurate what are the assurances that you know that what you're producing in terms of a result is reliable because the data are reliable? >> well, it's a great and very important question, tyler. when we're dealing with big

data, it's not the fact that we're dealing with hundreds of pedabytes or an exabyte rather than a megabyte. it's that we're dealing with all of the data. and it's a fundamentally different computing methodology. so with this garbage in garbage out avenue riz tham we all learned in our computer science 101 class kind of doesn't apply to big data. big data means we have all the data about the system, all the end data about the pipeline, all the data about shell, all the data about the united states air force. so we can take those data, as sparse as -- with the sparsity, with the erroneous data, and the fact is that we can build machine learning models that are predictive of what an organization might want to predict. they might want to predict demand they might want to predict, you know, stochastic optimization of the supply chain they might want to predict where their supply chain is going to break down they might want to predict which device is going to fail next in

the -- each any given tail number in the b-1 bomber fleet so they can fix it before it fails. so with big data we can actually deal with the garbage in and build machine learning models that are in fact highly accurate with very high level of precision and recall this idea that we need to build a pristine unified federated data lake in the organization kind of goes away when we deal with big data and ai >> interesting >> you know, palantir today, tom, or last night in its earnings was also talking quite a lot about ai saying it knows it has experience dealing with some of these big government contractors, for instance. reminds me a little bit of the clients you're talking about so we're starting to see major competition flooding into this space. and is there -- what is the differentiator, you think, for c-3 ai in the long run >> palantir is primarily a

professional services company that does have some software tools. c-3 ai is a software company with a very small professional services component palantir appears to have built a pretty good utility for aggregating large data sets, structured data, non-structured data, what have you, into a unified federated image. to my knowledge they don't have ai tools so we have -- you can think of the functionality that palantir offers represents -- we have that within our platform and it represents perhaps 5% of what we do rest is platform services, encryption in motion, encryption in revs, access control, machine learning vflz, da ing services,a visualization. they're a fine company, they do a good job, but they're fundamentally in the business of data aggregation and visualization. to my knowledge i don't think they're in the artificial intelligence business. >> i think we're all scrambling

to kind of parse one of these things from the other. and again -- listen, your ticker might be the most -- you could sell that thing -- how much do you think you could get for it at this point, tom >> well, i think we got lucky on that one i think it was a good name and before it's all over i think it's going to be -- it's helping position the company well. >> absolutely. thank you so much for joining us today. we appreciate it >> thank you >> tom siebel with c-3ai they were once a disruptor 50 company by the way and cnbc is now accepting nominations for the 11th annual list of innovators if you're a private venture-backed company get out that phone camera, get the qr code on your screen or go to cnbc.com/disruptors to learn more >> and ahead on "power lunch" presto change-o. after the break we will take a look at one startup looking to transform the dry cleaning industry in order to save the environment. but first as we head to the break during february we celebrate black heritage through the stories of some of our cnbc teammates, contributors and leaders in business.

here's plexo capital founding managing partner lo tony >> when i think about black history month, the name that really comes to mind for me is reginald lewis he was so inspirational in my career and getting me excited to go out and conquer the world of finance. and the work that we're doing here at flexo capital i hope will also inspire others or at least inspire others to go create generational wealth (voya mnemonic.) there are some things that go better...together. hey! like your workplace benefits... and retirement savings. with voya, considering all your financial choices together... can help you be better prepared for unexpected events. for a brighter financial future. thanks. ahh pretzel and mustard... another great combo.

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welcome back to "power lunch. there is some truth behind the expression getting taken to the cleaners dry cleaning is hard on your wallet but it's also hard on the planet while some industrial dry cleaners are opting for greener chemicals, others are looking to change the whole business model. diana olick explains how in her continuing series on climate -- clean climate start-ups. di >> well, tyler, not only do injured dry cleaners release toxic chemicals, they also, some of them use a lot of water for steam. now one atlanta-based startup is not only making dry cleaning

cleaner but also more convenient it's kind of like a vending machine for dry cleaning at least that's how the execs at presso describe it but it's a little different. >> we actually invented an entirely new clothing care practice from scratch with compostable organic cleaning liquids that with we sympathized in our own office with our own engineers as well as new ways to stretch and press clothes. >> reporter: the presso machine consumes seven times less water and three times less electricity than traditional laundry and dry cleaning services according to the company. it also eliminates transportation to a cleaning facility and all that reduces the carbon footprint of the clothing care by 93% >> there are no hangers that are disposable there's no disposable plastic bags none of the process of even doing logistics inside a dry cleaning facility. none of that exists anymore. >> presso now has machines in a

few boutique hotels and apartment buildings but it's pushing into the big hotel brands like ihg. it has machines now at two holiday inns and plans to expand to more ihg properties franchise owner dipan patel says the guest response has been very positive >> once we get the service to a point where our guests are educated and people are comfortable using the services, i don't see a reason why it won't be in every hotel in the country. >> reporter: presso is backed by uncork capital, cherubic ventures, 1517 fund, ame cloud ventures, hax and pathbreaker ventures total funding so far just under $10 million. presso doesn't have a lot of competition in the industrial space but it hopes to bring these machines to consumers at home there is already some competition in that market but presso's ceo likens it to the microwave, the way that moved quickly from restaurants and industrial use to become one of the most popular home appliances and by the way, it's also a lot

cheaper than sending your clothes out. >> i'd get one now if it's going to be what, 150 bucks? >> yeah. i don't know what that price would be yet but it's supposed to be a lot cheaper going forward. >> absolutely. fascinating, diana thank you very much. diana olick. up next, happy go louis. a famed luxury brand betting on an even more famous music brand name we'll discuss that next. oureally should be saying "lie." happy go louis vuitton we've got the details next wh? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

welcome back to "power lunch," everybody. have we reached a peak farming equipment stocks have been on a nice run but is it about to end jane wells is at the ag expo where they probably hope no. >> kelly, this may freak you out a little bit that is a driverless tractor from a tech startup called agtonomy which is partnered with bobcat autonomous vehicles save on labor. so a bunch of companies are demonstrating driverless products there's one from monarch which stops when it senses humans. farm equipment stocks have gone up over six months but as you

noted farm incomes are going to come down this year. but they'll still be elevated. and even so companies like agco, they say they could have actually sold more tractors but for supply chain problems in 2022 >> i think we're pretty lucky. farmers are starting to see a reduction in some of their input costs while their outputs still remain pretty high >> now, another trend is sustainability you see a lot of electronic tractors here. and this one from new holland that runs on methane yes, from cow manure it allows dairy farmers to make fuel from their own cows >> we are still working through our pricing right now. but based on our customers' qualified tradeins there are different subsidies that are also available for this product. >> yeah. as these farm incomes come down, kelly, while they still may be willing to spend, to go to this new technology it may take subsidies. government subsidies

subsidies from the taxpayers to convince them to do it kind of like we're subsidizing electronic vehicles for the road >> jane, those driverless tractors, that feels like a productivity revolution in the making pippa stevens was telling us she grew up spending summers where you just all day back and forth and back and forth i mean, can you imagine if these tractors could do a tractors could do a lot of that work and free everybody up to can other things >> here is the thing even if it is not fully autonomous, if some applications on the tractor are and you ton miss, that saves on wear and tear on the farmer's body.ton miss, that saves on wear and tear on the farmer's body. so some companies are building the equipment from the ground up others are retrofitting existin

tasks. it is really the buzz here more than electric tractors autonomy saves a ton of money. >> it is fascinating jane, thank you. appreciate it. meantime sports gamblers used to betting on fan duel may soon get the opportunity to literally bet on fan duel, their parent comekscome, it is considg flutter. >> and it is traded in europe and based in ireland and what they have said is they think that if they put a listing from flutter in the u.s. on the exchanges, that they get access to more investors, they get deeper pockets where capital is concerned, they get more brand recog recognition. and when you think about it, when we talk about the sports betting stocks, we talk often

about draftkings because it really is the only pure play on sports betting but fan duel -- >> tradeable in the u.s. >> exactly caesar's, mgm has a stake, you have penn has growing sports betting business and they just had a quarter where they proved profitability. but fan duel doesn't get that kind of attention because its parent company is traded ov overseas so flutter thinks that it can g about band and right now fan duel has the biggest share of company revenues.band and rightl has the biggest share of company revenues so this is a big deal to come in but a big hurdle, they are talking to shareholders, then th they would put it to a vote and it needs 75% shareholder approval >> would shareholders naturally go along with this idea? why would they not >> maybe not because some of them might not want to hold u.s. stock for instance, so that might -- you might lose some

shareholders in that way however, when you look at the trajectory of growth, here is fan duel that has about 42% market share nationwide. it is not getting stock market credit for that leading status and fan duel believes, and flutter, that the total addressable market in the united states could be more than $40 billion by 2030. jeffries analysts point out that would be bigger three times than the rest of the world. so if you are in the business of making sports betting profitable and lucrative, this is the place that you want to be. >> so they have 40% in the u.s who is send? >> draftkings is second. and peter jackson the ceo of flutter said to me in november and he said publicly at an investor day, he is like it is really interesting when we're thinking about an ipo of fan duel alone, which has been widely expected in this industry, he said we're watching draftkings and what we see is that they are benefitting from their customers actually buying

their stock and as you said actually betting on draft kings. and they would like to get a piece of that action speaking of all the sports betting, one more thing to note, i did this story yesterday about super bowl betting fan duel got hold of me today and said we mischaracterized our peak betting rate. they told me that it was 50,000 bets per second. it was actually 50,000 bets per minute, which makes a difference of course. everybody is working on very little sleep >> still a lot >> still a lot yeah and exciting times for them to come in and now talk about -- >> maybe they are trying to ride some of the momentum but again, a tough market. and what you said too about if the shareholder base wants to go with it. thank you. and louie vuitton is betting on a music star to help restore its men's wear line to glory, but celebrity partnerships have not always worked out so well. that is next will calculate them. right?

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louie vuitton is tapping the music star pharrell williams as the brand's next men's wear de design robert frank, tell us about this >> shareholders are clapping along. the stock is up 21% this year. and that makes the riches ft ma of the world over $200 billion

and their strategy is to become a culture company. so they are partnering with musicians, with artists, where treat wear designers to not just create stdesigns but cultural moments. so louie vuitton just the label itself has doubled sales over the past four years from $10 billion to $20 billion last year and their previous minute's designer chief passed around last year and pharrell will be replacing him. and you look at the designs, the sneakers that he did with lmvh, those sneakers have auctioned or sold for over $350,000 a pair. so literally pharrell has some big shoes to fill here but he also has a great history of designing himself >> well, i guess the question is, do we have a great history of celebrity partnerships. because the last couple weeks we've seen problems at adidas,

even reports that at salesforce celebrities had too much influence in the board room and that has triggered activist involvement. >> absolutely. and louie vuitton partnership with rihanna, she had design wear line that didn't go well, although the fenty beauty line is going well. this is a little different because he will be the head of the men's design so it is not just a celebrity collaboration, he will be in-house remember pharrell co-created the billionaire boys club line he's done a lot of collaborations that most of them have done really well. so it will be interesting rather than just partnering to bring him in-house, to be the lead designer and see whether that magic can continue, but so far both lvmh collaborations and pharrell's collaborations have mostly gone well but this is a big bet. >> does he bring a team with him? i mean, i'm not familiar, i'm

not exactly maybe the target audience for pharrell's fashions, but does he bring a team with him? >> he has got people that he's worked with various designers, you know, billionaire boy's club he's done collaborations with sunglasses and other things. so suspect, yeah, he has people who work with him. but lvmh has its season team so fun for both sides. >> robert, thank you >> and "closing bell" starts right now. major averages all over the map today as wall street tries to make sense of the hotter than expected inflation trend this is a make or break hour for your money welcome to "closing bell." there is the dow, take a look at where we stand overall, down 80 on the dow, low of the day was down 418, but just to show you how the swings have gone, the high was up 85 s&p 500 holds on to a gain just barely, it is consumer discretionary technology, materials and energy that are leading us higher. and everybody el