on arthritis and everybody's getting skinny, obesity franchise. >> health care, your sector for the year, as well. >> no, ita defense >> you like health care, though. >> we do >> thank you joey >> keyside technology. keep your eye on this company. >> "the exchange" is now thank you, scott hi, everybody. i'm kelly evans. ahead this hour, is the consumer simply unnapable yesterday's cpi showed inflation is still high. retail numbers show consumer spending is still strong we'll break down the data and talk about what it means for your money travel is one area that is going strong and choice hotels delivered a block buster report. we have the labor market trends.

roku and stzillow are on dek to report. and we're seeing differentiation. the dow is down 144 points, so mostly lower here. the nasdaq is green, though, by about a tenth of 1%. it's the only one drifting in and out of positive territory. the dow low today, minus 256 now, got to talk about energy. the worst performing sector today, we're getting more inventories putting downward pressure on oil prices so wti crude, $78 a barrel devon, down. pioneer, occidental, all down. this is kind of the fly in the ointment about the risk. yields continue to be a big story. again, kind of different picture than what we are seeing in commodities.

one-year yields hitting the highest level since july of 2007 we poked above 5% at one point this was the big headline yesterday. two-year, $4.6 just a hair below 3.8% keep an eye on the housing market more on that in a moment first, let's get to rick to round it out what is this bond picture telling us, rick >> that the market has taken in lots of new information since february 3rd's big jobs report and continues to assimilate more data, whether it was yesterday's cpi, cooler than last month but historically high. and today, retail sales. although i would caution that many are looking at some of these numbers and scratching their heads. one of the reasons may be

seasonality. today's seasonally adjusted retail sales was quite strong. let's go to the charts if you look at the 24-hour chart, you can see we reached that resistance backed up, but only a little bit. if you look at a one-week chart, it's been climbing the ladder every session. if i was to take that back to jobs friday, it would continue to look like a staircase, up higher if we look at how much time has elapsed since we traded these yields, it goes to early this year, and actually, this will be the highest yield close since december 28. so we're at the highs of the year if you look at the spread, it's been almost every day, finding new historic inversions going back to the '80s it had a huge reversal, about eight to ten basis points.

so not on pace for a fresh inverted close, but something to pay attention to, especially how much it's bounced just in a couple of hours. and the dollar index you talk about an area that i said many times, if you want to honor with what's going on with interest rates, look no further than dollar index. it's been following rates up since jobs friday and on pace for a 5 1/2 week close back to you. >> wow, 104 on the dollar index. rick, we'll circle back in just a moment if you don't mind let's bring in chief exist kathy jansen who says this will keep the fed hawks circling big numbers on the housing front this morning, speaking of which, it's almost like he arranged it. the perfect day to rejoin us welcome, everybody kathy, let's start with you and why this number is a big deal for the fed. >> happy to be with you.

this shows that the consumer, which looked to be losing a lot of steam towards the end of last year, is actually picked up steam and really the overall economy is really accelerating and it does harbor back to the employment report. so we had tremendous job gains, but also the number of hours that people were working, it increased 0.3 of an hour so all workers are working more and still seeing moderate wage gains. that means there's a lot of income for the households that was generated in january and consumers responded. they went out spending this is just the good side of the equation there's a little bit of services here in retail sales but we know service activity has been strong. so we are looking at real consumer spending and gdp growth that is 3% >> which is shocking, because a lot of the current estimates were talking about a half percent or declines of a half

percent. what happens if this is just filling the hole we created in november and december? >> well, it's always tough to tell, because especially in the post covid period. not only do we have odd crosswinds, but seasonal adjustment factors that have been thrown off quite a bit. but i think what we have seen is across the board that this pickup it's not like hi to be sustainable. but it's going to catch the fed's attention. not only is economic activity stronger, but inflation remains sticky on the service side of the equation you look at the core services, even when you strip out rent so this means the fed has to do more, and you're probably looking at a rate cycle that continues at least through june. talking 5.5% on the fed funds rate, if not higher. >> 5.5%. people are going to stay if 5 1/2 is on the table, you can start to go higher, if we don't see deceleration in the coming

months does that make sense to you when you look at the board? can we stay in a production recession without seeing employment slowdown, as well >> well, our view has been that the economy was going to slow down, and that is still our view, because one way or the other, the fed reserve will ensure that happens, because they don't want inflation pressures to remain this high. but you're right although the manufacturing data this morning showed a rebound there as well. and then maybe housing is starting to get some footing so there's some concerns here that maybe the fed hasn't done enough i think you're right, it's not -- it's hard to pick the terminal rate, but we shouldn't be doing a guessing game at that what's more important for the fed is once they get to a certain level they hold it there throughout -- for a longer period of time even when they pause six, nine months later the cutting rates this time could be different >> it wouldn't be the first thing that's a little weirder this time around one final question, all of the

january data has been so much stronger than expected is it possible that we move into february, march and there's a big reset because maybe we don't have warmer weather or seasonals or whatever it was do you think this one month is an aberration possibly >> it's certainly possible seasonality, it factors in large with employment, retail sales. and this was touched off with strong employment gains. you can't continue to churn out 500,000 new jobs each month, unless we get a big resurgence in labor supply and that doesn't seem likely. >> it' tthatnk you let's bring rick back in the last bond option we had -- do we have it firmer now >> yes, it improved marketedly once again auctions are going much better this was a b and in boy.

let's go through it. we're talking $15 billion 20-year bonds. the auction was 3.997, just a bit above the one mark that was above 3.975. so it priced about right, all the metrics were close to average. the two are foreign buying, fairly strong, and dealer takedowns below. all the metrics were pretty good a solid b. and if we continue to monitor this demand, it flies in the face of the notion of how aggressive interest rates have been, not only here but abroad, which means many traders seem to be looking beyond this chapter, and seem to hope with some of these purchases that yields are close to an extreme. >> do you think it's possible

the january data will be a head fake or aberration >> i think there is a good chance, and today's data is case in point i went back to the tables and took the raw retail sales data headline, autos and gas. nonseasonally adjusted, they were all weaker, much weaker actually, than the seasonally adjusted i'm not saying we need to mix our metaphors halfway through the game i'm just saying that covid, precovid and post covid changed so many things in our global financial fabric, that many of the issues that pick up seasonalities may have changed, and ultimately, that might be one of the culprits of why we scratch our heads, whether it's labor or the strength of the consumer at this point in time >> all right well said, rick. thank you very much. let's turn now to the housing story you started to hear about a huge home builder sentiment rating today improved by the most in a decade

breaking news on mortgage rates could throw a monkey wrench in there. >> mortgage rates are on the move higher today. first, the home builders are largely positive on the day, thanks to a strong report on builder sentiment, up seven points on the index. anything below 50 is still considered negative. this is the highest level since september, a nd the biggest monthly increase since june of 2013 s rates are now lower than they were last fall at least. the biggest one was sales expectations, up 11 points to 48, which is edging up towards positive territory it is all about mortgage rates right now, which came off their highs of last october, when the 30-year fixed jumped over 7%,

came down after that sharply in january, hitting 6%. but in the last two weeks, it's up again, especially in the last two case, with the cpi and retail sales and in fact, a 13 basis point jump today to dare i say 6.75%. that hit mortgage demand last week, and even demand from home buyers dropped a bit, despite other signs that buyer demand is rising in an early start to the historically busy spring market. tomorrow, of course, we'll get the january read how this starts and see if builders are put thing optimism to work with rising rates, kelly -- >> sure. just what we were talking about yesterday. almost spooky. you have to mention some buyers going in with the rates being off their highs and going, how do we get back up here >> yeah, it's really surprising how much in the last week we have come back up. you had this at 7% folks i spoke to said we're way down off the highs guess what we're inching back up again

toward them. >> we've got to go back to the open houses this weekend thank you, diandiana, very much my next guest, owns names like mbr and horton for a decade bill smeed is here this is a coincidence, bill. it wouldn't have worked out better for you welcome. >> thanks for having me. >> you know, we have dwelled on this a lot but nine months ago, when you were pounding the table for the builders, no one would hear it would you have people proceed with a little caution? >> of course our belief is that the economy is going to be better than expected no one ever mentions, and diane's reports are fantastic, but there are 40.5% of people 25 to 40 that there was ten years

ago. so 40% more humans that might want to buy a house out of necessity. by the way, that's the key word in what's going on in the economy. it is necessaryity. we lived from 2009 to 2019 in a world of discretionary spending. necessities like homes and cars were not a big subject group but they have been kicked into gear and they need a home. and you behave different when you need a home than when you just want a home that's the first thing the second thing, and diana hit on this, it's great. the spread between the ten-year treasury interest rate and the mortgage rate has been hanging around 2.3% to 3% for a number of months and historical relationship is more like 160 basis points

and the reason that there is this relationship is a pool of 30-year fixed rate mortgages, and have an average life of 11 years. so what that means is people have been being charged an artificially high rate, as the fed tightened credit, even though a recession would make that spread come in. and so that's why we've been in such great shape people didn't understand the stocks, the spread was working against them as much as possible no wonder they didn't have any optimism but when they get -- everyone in the industry has leftover ptsd from 2004 to 2014, so they're all worried about going to the tank again it's hard to go this the tak when you have all these people that need a house. >> you're still a stock picker at heart i mentioned some of the builders you owned. would you caution people against

owning something like the home builder etf here what if you're wrong and the economy does low later this year i wonder about this a lot, and what would you say to someone okay, what if we do roll over more than you are anticipating >> well, we have another economic spat. people at average and below average incomes are seeing a substantial increase in their pay. we see it all over the place people are begging to find truck drivers, waitresses, cooks, they're begging for good team to come and work at much higher incomes. the people that own the common stocks have been making roaring money for 10 to 12 years so just because your stock portfolio is down 20%, you're quadrupled it in the prior ten years. so the high-end people are

spending you had to come to phoenix to see this you had the super bowl here, and the phoenix open, record crowds at the phoenix open. people spending money like crazy. record people coming to town for the super bowl and everything that went with it. and they were spending money like drunken sailors on leave. so you have high-end people spending money and you have average people and below average income people seeing their wages go up. it's hard to visualize one more thing -- >> i want -- bill, here's the best part. we have a minute left. so i'm going to throw even more at you can you just address energy. you know, inventories are rising, everything that you're talking about would argue for more spending in the hands of a large segment of the population. why is oil behaving so bearishly? and what about the energy stock? >> it's just the normal nature of a long-term bull market,

secular bull market. they have a good run, then you get a sharp correction what you have is the chinese are coming on, joe biden now is going to have 300 million barrels to buy, not 250. he's short oil and the companies are being dissuaded from poking holes. by the way, our next favorite topic to share is boone pickens used to say in the '80s, it's cheaper to drill for oil on the new york stock exchange than it is to drill for ail. that's where we are -- >> undaunted optimism and sort of sticking with your core portfolio. parting thoughts >> my next portion is to go listen to charlie. we love charlie.

>> you may have one more year, bill, i don't know >> you know, i said that seven years ago. irving khan passed away at 103 he was one of the group of buffet's guys that went to columbia together. and he lived to be 103 so charlie knows to not go where he's going to die. find out where you're going to die and don't go there >> bill, thank you so much coming up, choice hotels, up 3% on the back of strong earnings the ceo joins us live with what makes him so bullish the consumer will keep spending on travel plus, we'll get you set up for these three in earnings exchange and the nasdaq is still positive by a quarter percent same for the russell small caps.

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welcome back the travel trade holding up strong with no signs of slowing down just yet. shares of choice hotels up more than 3% today and nearly 15% since january 1 after issuing

strong guidance for the quarter and the year they own brands like quality inn and joining me now in an exclusive is the ceo of choice hotels welcome back good to see you. >> great to see you, kelly >> i almost wish i talked to you before the retail sales report what would you say is the strength of the consumeer? >> they have $1 trillion additional spend capacity today, so the consumer is in a healthy state. we look at 2022, the revenue for available room grew every quarter. we have seen it straight into january this year. the consumer is prioritizing travel at the top of their list. they're out and they're traveling. they're also traveling at different months of the year our fourth quarter numbers were exceptionally strong, up 20% and they're traveling at different days of the week so we saw occupancy gains for

every single day of the week, particularly on the shoulder days of the weekend. so that's both thursday night and sunday night we saw 4% increase in occupancy when you compare it to our prepandemic levels so we're seeing the consumer out and traveling and are in a very healthy state. >> i figured it out. this is the mystery. in november and december, we had unusually weak spending on goods and retail sales and holidays, and you're now telling me you had unusually strong demand in that period. is that right? >> that's right. historically, before the pandemic, the fourth quarter and the first quarter of the year were generally lighter on leisure travel, more heavy on business travel. we saw gains in both segments. the consumer leisure travel demand segment, that entire pie is getting bigger, because people have more money to spend with rising wages. we have more folks who can work remotely

we have retirement occurring at sort of rates higher than prepandemic. and then you look at the business travel. for our segments where a lot of our hotels exist, you're seeing the reshoring of american manufacturing and the infrastructure projects start to impact that blue collar traveler, who was traveling during the middle of the week. so we're seeing growth in leisure and also return -- >> it's like you should have given the state of the union i feel great after listening to it maybe i have to junk my recession calls. on the labor piece of things, where sh to the point you're making about the strength, is that a profit margin risk? is that unsustainable? and how is that affecting business >> i think when you look at labor and the hotel sector, we had a number of open jobs, even before the pandemic hit. we did see a lot of labor come back into our segment this past

year when you look at our hotels in particular, we are apparently limited service hotels so we don't have a lot of, you know, big restaurants and meeting space and amenities. from a labor perspective, limited service hotels have been able to hold up fairly well in a market where labor is more challenged that being said, our housekeepers, our front desk folks have gotten a raise, as have most of the middle class and that segment of workers. so those are the folks who travel in our hotels as well so it's good to see they're getting a pay raise. >> i hear bill saying, see, i told you pat, thank you for your time today. appreciate it. >> thank you, kelly. coming up, a week after chipotle missed on earnings, the company is betting on a new cuisine. we have the details ahead. and here is one for your second screen charlie monger speaking right

now at the daily journal becky quick is moderating. we'll bring you any headlines in the next hour or two stay with us "the exchange" is back dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

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♪ ♪ ♪ ♪ welcome back markets holding up well after such strong data you heard our economists saying maybe 5.5% for the terminal fed funds rate we're down 92 points on the dow. let's get to tyler mathisen now for an update. >> thank you very much the white supremacist who ordered ten black people in buffalo -- murdered ten black people in buffalo has been

sentenced to life in prison. he cried as friends of families testifiedyied about the impact those deaths, and then he said he didn't want anybody to be inspired by the terrible thing he said. >> i'm very horry for the pain i have caused for all the victims. i'm very sorry for stealing the lives of your loved ones austin city manager spencer crunk was fired for the slow response to the texas ice storm this month that left thousands without electricity for a week or longer. the federal judge overseeing ftx's bankruptcy has denied a motion into an investigation into the collapse, saying it would duplicate what the new management is already doing. >> tyler, thank you. coming up, shopify shared

climbed more than 66%. we'll get the action, this story, and the trade on earnings exchange, next

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welcome back, everybody. let's get to today's earnings exchange we have the action, the story and trades for three games we start with roku, up 8% today. shares up 50% to start the year. they plunged 82% last year let's get to julia with the story here and danielle shea has the trade today, vice president of options at simpler trading welcome to you both. julia, up 10%. >> yeah, this is a very volatile stock, kelly there's so many questions here the company's revenue growth is expected to decline by 7%, and earnings expected to swing to a gain there are so many questions and potential areas of growth. investors are looking for insight into the overall ad

market is there going to be a contraction? and how much could roku suffer from the fact that some of the big streaming platforms may not be investing as much in ads, but they are opening up the roku ad platform to some of the ad tech players to drive more ad sales so that will be a key area investors are focused on and roku is making a television set, so that will be some interest whether or not that can improve profitability. >> danielle shea, all three of these names i'm worried about. what would you do with roku? >> so kelly, when you are looking at roku, the fact of the matter is, over the course of the past several quarters, they have gotten krushd on earnings what you are seed in the stock market today, the likes of airbnb, you also have investors buying into these names that have gotten trashed. for that reason, even though i don't like roku, i wouldn't short it here. i think there's a high probability it trades a little higher on earnings in fact, if it does trade a

little higher into the 70s, i think if we can find some resistance, that would be a good place to come in and short it. >> fascinating why do you think, danielle, these aren't trash, but what is going on with this move in these kinds of stocks to start the year, do you think >> you know, i think that investors are looking at what happened in 2020 the market tanked in 2020, and those that came in and bought the dip, they made a lot of money. so i think that investors have had money on the sidelines for a long time. they have been wanting to put it to work. when companies like airbnb come out and they have a few positive things to say, they're putting their money to work in these stocks so i think that's what we have to look out for. there are going to be companies that are going to come back. there's also going to be the losers that will never see the price they were once trading at. >> it's amazing, there is a lot

of interest now, maybe here are some names that will make it thank you, julia now to the next company, shopify, those shares also higher but like amazon, they got crushed in 2022. kate rooney, what are we watching >> yeah, kelly, wall street today earnings around shopify, looking for any of the effects of this ecommerce slowdown we have seen, any sort of recession could hit smaller bu er businec shopify relies on. q4 what shopify is the holiday season, it's typically strong. but amazon and paypal came in a little light, so that has some analysts lowering targets.

shopify also appointed a new cfo and coo, so the tone on the call will be important. and then shopify had this major change to pricing on subscriptions, raising prices. that has helped the stock, but this company still not profitable >> thank you danielle, is this a similar story, where you like it up to another resistance point or is this a different story >> yes, kelly, this is a similar story. shopify is doing a decent job shifting off of the lows you can see on the technical pattern the way they have shifted as it relates to the trend. but what i also like about this company is the way they reacted last quarter on earnings they exhibited a breakaway gap and the stock hasn't fallen back down to the price point it was last quarter this is a really bullish pattern, so while i don't think shopify is going to reclaim its

all-time high at any point in the near future, i think traders can make another $5 to $10 higher in this stock, and continue looking for overhead resistance, because if they keep breaking, just continue trading to the upside in the new trend >> wow what does this all mean and telling us it's so interesting. kate, thank you, as we turn to zillow, our final trade of the year third week of gains in the past four, even with all the head winds. diana has more for us. now, diana, like we were just talking about, here come higher rates again. >> i know. because of the mortgage rate story we're talking about it i'm more interested in zillow's forward guidance than the last quarter because everything is changing that said, we want to look at agent engagement we probably lost a lot of agents, are they coming back

again? also, i'm interested in user engagement clicks to zillow, which they report in their earnings and see whether those are started to rise in january wouldn't be part of the last quarter but going forward, we want to see if people are coming back to the market we're hearing about more google searches so we want to see what's happening. zillow got crushed because of its other businesses, so it will be interesting to see if that program is going to benefit them on the financial side. so a lot -- i'm looking forward, kelly. >> it does feel like a useful barometer right now. danielle, what would you do with the stock many >> i like zillow here. i think zillow is going to demonstrate they had a good quarter. people waiting for interest rates to come down did start looking for more homes over the last quarter we saw that dip in the ten-year. i think that they are showing a positive trend right now

they reversed the trend off of the lows they have a near-term pattern and they have short interest so you have some short sellers in that stock. if the report is positive, you can see those short sellers being squeezed and giving us more upside momentum so i like the stock -- >> this is not the danielle shea that we all remember i mean, i'm joke, but is that how much the market has changed? this is a very different feel. we were talking about this a year ago >> well, kelly, i always look at every earnings season and analyze the flavor of the season sometimes we're in a mood where when companies come out and say hey, we're not doing very well, their stocks get hammered. this year, the flavor of the season is even if they're not doing great, we're seeing stocks rise so i'm a trader. i trade momentum and i love following the trend. of course, i have to look at the

macro backers, as well but with zillow, i love the nice, near-term bullish trend on the stock. >> and clear ones, as well thank you both very much that does it for this edition of "earnings exchange." still ahead, despite disappointing results, chipotle up 19 years this year and preparing to make a move it hasn't made since 2017 those details next on "the exchange." [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change.

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the all-new, all-electric eqs suv from mercedes-benz. see your dealer for exceptional offers on mercedes-benz electric vehicles. welcome back, everybody. shares of chipotle recouping and then some. the losses posted after that rare earnings miss over the past week, including today after the company announced a new spinoff. pippa stevens joins with us the details. >> chipotle pioneered the healthy fast food restaurant and wants to expand to a new kind of

bowl they will serve customizable bowls in santa monica. chipotle has tried and failed to move beyond the burrito before, including an asian eatery and a burger joint but today's announcement is the first new restaurant announced under the ceo brian nichols, who took the reins in march of 2018. chipotle will test this out and see if there is demand with bowls for consume ergs >> what is this cuisine? >> it's customizable bowls >> that's not new. >> you walk around new york city, and there's a bowl joint everywhere the value is that you can customize orders, change around the menu and see what customers want customers love choosing what

they're going to have. >> and you have to give chipotle credit technology wise it reminds me of the starbucks where they talk about how all the orders now are order ahead and pickup but does it tell us that their best ideas at chipotle aren't about the core franchise any more >> some people say they should be focusing on the core restaurant, which is so strong the brand has a lot of power, and one person said why not focus on international there is that element, because they don't have that much of a foot print abroad. but with this idea, it's an easy concept to think about, to launch the ghost kitchen model means low costs, you don't have to have the store front the labor costs are lower. >> so it's a delivery type of idea >> exactly you can order at a kiosk or have it delivered you don't have the dine-in option which reduces the

overhead so that's kind of the capital light model to test this out >> delivery raises, though look at the struggles lyft and uber have had in terms of the cost of that but this could be -- it feels like we have to get to this model, where why do they need prime real estate where it's hard to park there, why not be somewhere that is cheaper? maybe offer consumers a better price point for what is still better food. what is is interesting is they're not associating with chipotle up front, so they're almost trying to disassociate, which is an odd choice given that chipotle is a very strong brand, but they want it to be seen as something different, something new, something fresh and different. >> got to go try it. pippa, thank you very much still ahead, a growing china divide in the latest f-13

filings. we'll talk about who are the buyers and sellers, that's coming up next

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welcome back to "the exchange." china taking its fair share of headlines today. a few moments ago came up with a daily shareholders' meeting with charlie munger stream it live now going on another hour or so munger said buy stronger, better companies at better valuation in china than the u.s repeated that in the past. when asked why he prefers chinese automaker byv over tesla? almost ridiculously ahead. shares down 1% up 20% year to date. tesla up more than 70% since jan 1. and recent filings showing divergence among hedge fund managers on the likes of alibaba and jhd. tesla hitting brakes in china looking for upgraded model of the model 3 sedan and making waves at a conference in dubai saying china is winning the

trade war if you just take the numbers. percentage of world trade and dominance. here to make sense of it all, the cio, brendan, welcome. yeah munger saying chinese companies still a better value what do you think? >> in charlie we trust certainly a, mr. munger has an incredible reputation and i think what's important to recognize is, charlie is the boss for many investors, they have to answer to their investment committees or board of directors or clients and so changing one's position, getting uninvolved in china might be difficult for some people. why our belief has been trade is higher charlie munger can do as he pleases. others worry about political relationships and et cetera. charlie can just get involved's we think a lot of money on the side getting involved in chinese equities. >> some looks like are heading for exits? >> seen a number of hedge funds

particularly very involved in the space. hedge funds don't marry positions. want to make money and got involved in china early. caught in the case of kkeb internet up 96% a lot of data showing long-only managers actively managed funds underweight china, even after this rally, kelly. i think that's why this correction can be bought by a lot of investors particularly in light of knowing that got all of this china consumption. a big story this year. >> what is the valuation, looking at leading internet names? how does that stack up. >> kelly, think about this alibaba is the number one holding of msci emerging markets value. it's not considered a growth stock. >> wow. >> it's number one value so i think because of some political rhetoric and political tension, zero covid, real estate kearns, investors game out of chinese equities and as china's

economy proves it's coming back online over the course of this year, kind of want petro china or icbc banks. they'll want domestic consumption plays like alibaba, jd and pinduoduo and ten cent and others. >> is that in kweb >> no. a long time hold launched the first e.d., etf cloe globally cars based on our experience what we saw june of 2017 when china recognized it had a pollution problem and we kraepted a global etf. owner of byd, like mr. munger who got involved back in 2009. just a remarkable, think about buffett and munger, their vision and patience and holding this stock and the world didn't really figure out what they figured out up until a few years ago. >> sure. everyone thinks they're dinosaurs ownedcoca-cola and got in on even a better trade.

hour familiar are you with byd tesla? trying to figure out what fortunes look like in china. how far ahead? >> byd is not selling thousands or tense of thousands. selling hundreds of thousands of electric vehicles. so certainly tesla has its place. been a little of a luxury good more expensive price point where byd is creating more for a broader mass market. so in many ways, i think tesla has its place. we're believers in the company at the same time, byd, because that mass market appeal has a great opportunity. no different than another player i mentioned. catl. >> yes. >> kind of just got on the maps because of the ford deal just happens to be a chinese company. very, very important company another big holding in our cars etf. >> does it make me un-american if i hold the cars etf and

betting on yyd and catl and the rest of it >> no, no. listen, as americans, there's a lot of u.s. multi-nationals that are doing great not only in china but doing, across the world. almost 20% of apple revenue comes from china or 25% of tesla revenue. gm sold 2 million cars business people are getting along great with one another getting on planes and meeting with one another, and hopefully the two sides politically can start getting on planes, talking to one another and take a page from the business world where people are getting along great. >> that whole balloon snafu notwithstanding. >> yeah. >> thanks for your time. appreciate it. >> thank you. >> one more check on latest headlines from charlie munger, who's singing cost coe the praising again saying long as they keep the faith with strong culture and low markup policy, not anything can stop it and close to the perfect damn company.

drawback, trading at 40 times earnings loves costco total addict and never going to sell a share. coming up next on "power lunch," shares of generac up 8% on better than expected earnings ceo joins us with where he sales heading. there's tyler mathisen huge costco fan. toybe generac o. see him on the other side of this break. a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. the hiring process used to be the death of me. but with upwork... with upwork the hiring process is fast and flexible.

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