welcome to a friday edition of "power lunch. glad you could join us as bruce willis said, welcome to the party, pal small caps coming along with what had been a big cap rally. does this broader participation mean the party on wall street can last longer? plus, just in time for grilling season, soaring beef prices why it's happening what it means for inflation and restaurant stocks? we have a power joining us for the hour tim seymour here to weigh in. >> got to ask him for barbecue tips and tricks. the dow is up 55 points. not at the mourn session highs

the s&p is up to 4,307 the nasdaq up half a percent and likely to post a seventh straight week of gains gm announces they'll adopt tesla charging standards it's hurting shares of other charging companies tesla up 5% on an 11-day winning streak. netflix up 25% over the past month. subscriptions are growing after the crackdown on password sharing. almost a 4% pop. has the s&p 500 entered a new bull market or is this an ai bubble piper sandler pointing some things out in regard to the

dotcom bubble. my next guest says a bubble may be forming, but we're not there yet. with us now ron ensana ron, welcome tim, welcome you're at the desk kelly, they'll get you a chair >> i'm happy to stand. >> ron, you make a persuasive case in an article you wrote that, while there are some similarities to the bubble that formed during the internet period back 20 some years ago, that we're really not there yet at all tell me why. >> tyler, in many ways we're not even close when you go back from 1995 to 2000 you saw not just companies go up on the prospects of the internet, but also you saw stocks go up en masse and then you saw huge ipo issuance, huge

public participation, the fed was in easy money mode and you saw price earnings ratios. when you take out the five biggest stocks in 1999 and 2000 the pe was 356 it was a wildly different environment. the stocks benefitting from ai are big household names, albeit they've gone up a lot, but we're not there yet. >> as you point out, these stocks that have gone up, whether it's nvidia or google or microsoft or you name it, these are stocks that have lots of profits. >> yeah, and there's only seven right now or eight it's not the same environment. listen, you remember when we went to cocktail parties in 1999 and everybody and his brother, mother, sister, uncle, cousin would be asking you how to get

in on this. >> i'm not at cocktail parties with my mom. >> it was a different era. 30 pounds ago for me. >> many pounds for me as well. i'll never forget going to a chinese restaurant in ash vil, north carolina and the waiter asking me about cmgi. >> that was a holding company for a number of different internet entities, none of which had profits. i also mentioned kaytell, a company that sold horrible '70s music on tv after midnight the stock went from 5 to 30 and 0. or zappata that put dot com after the name and rocketed as

well it's a different environment >> tim, what do you think? >> i think i have some kaytell eight track tapes. the market has had a disproportionate response as to who they'll reward ron is talking about the profitability of the mega caps here the question is are we going to see a massive cap expand around ai, especially when you look across the semi space. nvidia told you when they blew those numbers and gave the guide for the q2 that's the real question on some level we start talking about retail companies that sprinkles some ai pixie dust into the story i think about meta and think it may be an expander for them. i think there's a net zero sum of the entire market place we can go after. >> to answer the question about

are we in a bubble, you think what's going on with some of the semi names, maybe meta, is fundamentally justified? >> it is i look at meta and google and companies that have not hit all-time highs like microsoft and nvidia, they're a lot more interesting. >> what do you make of the fact that there are some parallels to 2000, for instance, bread has been below the levels of -- even if you like those stocks, are you worried about the rest of the market >> so i think there's been a lot of debate and in the last few days we had this broadening of markets. i've also heard this is people selling popular longs and covering popular shorts. there's different explanations. >> let me wrap with ron. even if we're not in a bubble,

does it concern you that the market has been as narrowly focussed as it is? is that not a good sign of market health? >> typically, yes, tyler don't forget in 1999 the nasdaq was up 85% in 1999 money was easy it was a different environment in that case the entire market was going up too much. in this case stocks are going up too uch. >> all right, ron, thanks. >> thank you. small caps have been left behind in this tech rally.

so far in june things have changed unless, dom, they're changing today >> one of the things we want to keep a close eye on, a strong start overall for small caps if you take a look at some of the moves, the mdy is firmly in positive territory in june that goes for the one that tracks the russell 2000. within both there's a wide range of names we want to bring your attention to some of the notable brand recognition ones we start with bank united that hit 52-week lows, but have rallied. other regional banks, fulton

financial, falls into that category there's a basket of mall-based retailers that have been jumping. kohl's, gap, macy's, nordstrom up around 25% or so. we embassy end on a pair of recreational names thor industries has been fueled by the higher demand for rvs in europe, though the company warns that macroeconomic pressures are impacting its business then there's rev group rvs, joregional banks, look at those names. back over to you >> dom chu, thank you. whether small or large lead the rally, can the rally continue do we need earnings growth to keep it growing? with 497 of the s&p reporting, earnings growth for the first

quarter turned positive. mike laroni is here to talk about this michael, what do you say about the market stick with it? >> i do think you stick with it. kelly, we were caught in a range. that ceiling was 4,200 i think we needed three things to break that ceiling. we got one last week that was the debt ceiling resolution next week we're going to get more clarity on the future path of monetary policy if we get that pause, i think markets will respond favorably to that. the third is this kind of notion of the timing and depth of the recession, but this week it seems like investors believe that a softish landing is possible those have allowed us to break that 4,300 level and hit highs in the s&p for the year. >> new highs in the s&p for the year do you worry about the macro, michael? >> i certainly do worry about the macro. i've been saying since august

the economy isn't the market and vice a versa if we think about it last year the economy expanded, labor market is the best in 34 years, yet we have a dual market in stocks and bonds and the 60/40 portfolio was terrible this year all that is worse, yet stocks and bonds are rallying. investors are looking ahead and saying it will be a mild recession if one at all and earnings will rebound in the second half of 2024. i may bit of rose colored glasses on, but i think they'll price in a recovery far before. >> earnings recovery in the second half of 2024 is a long way away you don't think it's too early to start beginning to buy the kinds of equities that benefit from early stage recovery and what are they? >> so timing is always such a

challenge as we know here's the thing, i would prefer to be buying those parts of the market that are trading at 10 and 11 times forward earnings. again, with the s&p being brought up by those large companies have an earnings yield at 5%. i can buy a money market for 5%. i like value stocks, small cap stocks, cyclicals and things like deere, caterpillar, industrials is a great place to be. >> tim, how does this strike you? >> the thing that worries me is positioning. the complacency of the vix and when you look at the bull/bear ai indices and active managers,

we're at a 15-year average here. people are not underweight you had record shorts and there's misinformation there too. despite tech taking us higher, it might be hard to make the next move. i think we'll see 160 on the smh. i think we made relative highs and the leaders are going there. back to small caps, if you think about -- if we're in a bull market, you tend to see that growth leads value small caps have underperformed it was silicon valley bank that knocked them down 22%. they're just kind of catching up if you're looking at small caps, there's a little room to run here the macro and where we are in the economy and the leading indicators, we've chronicled this it's not rosy. this is one of the greatest trading market ever.

we've had three moves where we went up 14, down 9 1/2, up 12.35 from the svb low they often -- it feels like -- they often track each other. you tend to hedge the em with the iwm and we're seeing both of them break out here. >> fascinating >> all right gentlemen, thank you michael, appreciate your time. >> thank you >> tim's going to stick around >> awesome coming up, the commercial real estate space getting so bad that developers are starting to pull out of deals and properties the most recent example park hotels abandoning san francisco. actions like that could leave lenders holding the bank is a commercial real estate crash looming? "power lunch" will be right back ♪ ♪

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welcome back to "power lunch. the challenges in commercial real estate are front and center for investors. half of large firms plan to cut

office space and worries about san francisco in particular continue wells fargo says it will take a $60 million loss there park hotel and resorts stopped making payments on a loan tied to two hotels in that city ja janet yellen weighed in on the troubles. >> i think there will be issues with respect to commercial real estate certainly the demand for office space since we've seen such a big change in attitudes and behavior toward remote work, that has changed, and especially in an environment of higher interest rates, i think banks are broadly preparing for some restructuring and difficulties going ahead. >> we have the ceo of marcus and

millchap he joins us with context on what's happening with commercial real estate. you say seattle is some of the vacancy rates are not as bad as san francisco, but second worst. >> good afternoon. this issue is not unique to san francisco or seattle we're seeing the pressure on office space across the industry, but particularly in urban areas because they were affected so much by the pandemic and the hybrid work environment. it's important to zoom out and not judge commercial real estate because of what's happening in the office market. apartment rentals are doing well self-storage prompts are doing well and hospitality is doing well within office, the older properties are the ones hurting the most as those loans mature, the wells fargo one is a good example.

they suffer most because the higher quality properties are attracting tenant demand and hybrid space has lowered overall demand significantly. >> i was surprised to read that in the case of park hotels, those loans were nonrecourse which means they can hand it back who's left holding the bag you point out that office property is only in the 4% range. what happens if that spikes to 20%? >> delinquencies for office are going to rise. delinquencies in urban areas are going to rise because of this divide between urban america and suburban america the banks are so much better captitalized today than in 2008 or 2009 which created a bigger stress on the entire system. back then, in 2007, banks had

about $100 billion of cash on hands versus $1.7 trillion in february don't really have, as janet yellen mentioned, a banking system problem lurking, but there are individual bank issues, individual property issues and profoundly in the older office product >> i guess, as you look at some of the secondary data in terms of where the leases are being pulled back, are there any sectors specifically we're talking about the hotel sector, but are there places to drill down further to see whether they're being opportunistic or weakness? >> i'm glad you brought that up. a lot of our clients are taking a big bet on office space, on maybe some quasi distressed hospitality because they believe in the next two to four years

there will be a return to office certainly business travel will recover more than it has consumer travel has recovered very well and overall hospitality is doing great there are unique opportunities where either converting office to other uses and in some cases replacement of older office space because the land has value. the great page that can be taken out of a book is retail. over the last ten years shopping centers have gone through a massive dislocation because of e-commerce they're coming out of it well because the obsoleteness has been dealt with. ironically retail is the darling of the industry while office has become the new retail. >> thank you very much appreciate your time. >> thanks for having me on. the chatter around twitter, first elon musk holding another twitter spaces event this time with mary barrow of

gm plus, meta looking to take aim at twitter with its own platform we'll discuss that in today's tech check we'll be right back. wah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "power lunch. time for today's tech check. meta is going after twitter. the company revealing a new stand alone app that will aim to compete with the bird. steve kovach here to discuss >> with the bird. >> they're going to flip it. >> yeah. this came out from a meeting that mark zuckerberg held with employees. they gave employees a sneak peek at this app they're building it's based on instagram that would be tech spaced twitter comp competitor they see an opportunity with all the issues twitter has been going through, the advertising losses and so forth. they're going to give it a try

i will note facebook/meta has a long, long, long history of creating clones of apps of other popular social networks. by the way, they have a perfect record doing it. >> they've been successful at it. >> perfect record. everyone has failed. >> they got stories from snapchat and instagram. >> they put that into instagram. they created an app called lasso that was a tiktok clone. didn't work. >> they have reels. >> this looks like twitter from the screen shots. >> yeah. some leaked screen shots came out from this video presentation it's not going to be easy for meta to pull this off. there's been so many attempts to recreate twitter whether it's more of a right wing version like parlor or gab or this blue sky which is made by twitter co-founder jack dorsey

none of these have taken off everyone said they want a twitter alternative, but none pan out. this is going to be interesting to see if meta can pull it off >> very interesting. steve, thanks. have a good weekend. you've earned it. >> it's been a long week. elon musk hosting another twitter space talk this time with the general motors ceo mary barrow pippa stevens has the details. >> shares are pacing for an 11th straight day of gains after general motors said they'll use tesla charging network they can use an adapter beginning next year. this is a major win for tesla which earlier inked a similar deal with ford while tesla is jumping, ev stocks are sinking ev go and wallbach lower today

distinctions need to be made between business models. this is negative for a charging competitor like ev go which has a partnership with gm. b of a reiterated its rating of charge point notably fleet, multi-family and office charging. >> pippa, thank you. let's get more details on the charges against former president trump, the indictment has been unsealed. amen >> reporter: it hands been unsealed it's 49 pages. the former president of the united states and one of his aides have been charged in a 38-count indictment. here's the break down. former president of the united states is charged with 31 counts of willful retention of national defense information. that's the espionage act

the maximum sentence is ten years. one count of false statements. trump and his former aid, the valet, are charged with a whole series of crimes conspiracy to obstruct justice, one count withholding a document of record, one count of concealing a document or record, one count concealing a document in a federal investigation, the valet one charge of false statements and misrepresentations both men innocent until proven guilty what we're seeing is a level of detail we've not seen despite the coverage of this case over the past year about how these classified documents made it to

mar-a-lago, how they were handled there and what appears to be, according to prosecutors, a willful attempt to deceive investigators about what the former president had and an accounting of what the documents were. >> that's what's interesting to me do we know more about the nature of the documents themselves? in other words, were they presidential schedules or were they that plus a variety of other sensitive documents? >> reporter: it's a variety of sensitive documents, among the most sensitive documents that the u.s. military and intelligence community would have coming straight from the white house. we get a description here of the type of document, the date of when the document was produced to give you a flavor, documents related to national defense. there's a top secret 2018 document about various foreign

countries, a top secret document containing nuclear capabilities of a foreign country, secret communications with a leader of a foreign country, a top secret document concerning military attacks by a foreign country and military contingency planning of the united states and a document concerning nuclear weaponry of the united states. we're getting a detailed break down of what these documents were that law enforcement found in mar-a-lago. we're getting an accounting of how the documents were stored, how they were moved around before the search and before trump's own attorneys could review them and trump's apparent efforts, according to prosecutors, to obscure what exactly he had and where those documents were, tyler. >> thank you for that complete report appreciate it. ahead on the show, if you

have barbecue on the menu, beef prices are soaring bank of america said this could be the smeumr of pork. "power lunch" will be right back ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to help keep our online platform safe from cyberthreats? so we can better protect our customer data? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with global secure networking from comcast business. it's not just possible. it's happening. meet gold bond healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more.

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welcome back the price of beef has gone up this year due to cattle short annuals. live cattle up about 35% we could be approaching record highs. let's get to kate rodgers with more >> reporter: ground beef prices are flying high hitting pandemic levels look at this chart showing that spike for the average price per pound hovering around $5 could this bolster prices for plant-based meats? this company said that it's dropped prices by 9% per pound achieving price parody is a long-term goal and they want to underprice versus animal meat by 2024 while prices matter in terms of

getting customers to buy more beyond meat it's about other things as well, including taste. beef prices are hitting restaurants hard take a listen to this restaurant owner. >> our menu costs have gone up probably about 30% and that means that each menu item that i have has gone anywhere from $3 to $5 increase, which is -- we're a protein-based menu and that's a huge jump. >> reporter: for beef and brisket alone, he's calculating an extra $1 million in costs this year. he says he can't raise prices again for consumers because he doesn't want to push them away. >> kate, thank you for more on what else is driving high food prices our next guest says it might be the summer of pork he also highlights how the drought conditions are leaving a

mark on the industry for more peter galbo research analyst at bank of america and we welcome laura ray dickey, ceo of dickey's barbecue let me talk to you, laura ray, and ask you how the comment of that other restaurant owner in the piece that kate showed us resonates with you are you seeing the same increase in costs and how much are you passing on to consumers and can you keep doing it? >> absolutely we're seeing very similar. what we've seen is that we have about 6.5 million pounds of brisket annually that we purchase so certainly that impacts us we're a completely protein-based menu and it's affecting us we have seen about a 22% across

our menu in the past 24 months of food inflation alone. our brisket price from may to june, our price per pound was $3.33 in may it's jumped to $3.45 in june we even have purchasing power and protection that a lot of restaurants don't enjoy because we have over 550 restaurants in the u.s. even with that amount of purchasing power we're still seeing quite a huge impact we've certainly reached the point that, no, i don't think that restaurants can pass it on to consumers any longer. >> i'll come back on that. peter, why is this happening >> it's a great question look, it's a beef cycle. the beef cycle tends to be relatively long, about ten years in length. we're on the downside of that cycle. fewer cattle means higher prices >> why are there fewer cattle? >> the cattle ranchers, they're

the ones who are raising the cattle and selling it. those ranchers have been losing money for every cattle they've been selling because the cattle price has been solo. that incentivizes them to take the size of the cattle herd down until it happens in a more material fashion, we think beef prices will stay higher. >> those low prices were a pandemic effect when the economy was weak >> it's a couple things. first, the beef cycle is more tied to the economic cycle more so than pork or chicken. on top of that beef was hit during covid a lot of the manufacturing capacity in the u.s. was shut down for a period of time. that forced cattle prices lower while beef prices went higher. >> that's one reason you can remain underweight on them

i want to make a macro point about it we heard comments from costco where they said we're seeing recessionary behavior. they're trading from beef to pork to chicken to canned foods. we reacted and said the consumer is acting like they're in a recession. are they or is there a beef problem in which case his comments wouldn't be indicative of consumer, but the high price of beef? >> costco is seeing a trade down people are shopping at costco for their beef for the first time you're having disinflation on food prices and it's going to hurt costco and target and places like that you're in a place where the consumer is -- i recommend buy humble cuts of meat and smoke them and they'll taste great. >> you think i'm going to go

home and smoke meat for 20 hours? you're out of your mind. >> go buy a green egg. >> you're not wrong, tim, but i see why the consumer reaches for con convenience. >> laura, you said your menu ticket price has gone up 22% did i hear you correctly >> that's correct, over the course of a year >> how are consumers responding to that? are they buying less are they staying away? are they swallowing hard and taking it? >> it's a combination of factors. we're seeing certainly very traditional recessionary purchasing from guests they have gone from individual meals for the family to family packs. we've seen an increase in bulk items where there are leftovers, where they can stretch one meal purchase into two.

we've seen a huge increase in coupon usage which is an indicator across the board we're seeing that across nontraditional coupon guests we've seen a huge spike in loyalty members, those folks trying to bank points. we're seeing folks forego add-ons, less desserts, less sides. they're staying to the core of what they're able to feed their family with because prices are creeping up. that's without passing on all of the costs that we're seeing as an increase to the guest because there just isn't a tolerance for that. >> is your profitability down or up >> our sales are up. our check counts are up. profitability is the same. part of what we did to combat that -- you're right about the summer of pork we've seen this coming our summer lto is a pulled pork sandwich we have eight different proteins across the menu and can put

different emphasis on different proteins we've been able to reduce our core menu. we have been in business since 1941 we took the largest reduction in our core menu in our brand's history within the past year and reduced our menu items by 40% in order to drop anything that wasn't potentially profitable. we're doing everything we canfos we want to serve for another 81 year, but it's a pinch right now. >> peter, what needs to change for beef prices to come back down >> how long is this cycle? how quickly? >> if you were to start today and we talk about heifer retention, the female cattle, retaining them to expand the herd it's a one-year type period before you have new cows they take a year and a half

before they're at full weight. you're talking about today if drought conditions improve, profitability for the rancher improves, it's probably about two and a half years >> tim, do you have a pulled pork recipe? >> wait until i tell my kids summer pork. >> what's interesting about the tysons and the largest meat processors in the world is visibility >> 85 to 150 >> more or less. >> laura ray, thank you. good luck. >> thank you >> peter, thank you. the cloud computer etf is on pace for its fifth positive week we'll hear from the ceo of a startup tlrying to automate the cloud space. dow is up 49 we'll be back. ength pain relievers,

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continue to drive growth >> george frazier is ceo of a company that moves data across cloud platforms. the company announced that debt raised from vista capital partners, which is interesting because they lasted through an equity round in 2021 george told me he didn't need the cash at the moment this was like opening up a home equity line of credit to have access to cash if that sounds smart, george has a phd is neuro biology. >> not because the brain is like a computer, it isn't the brain is exceedingly difficult to study it's a hideously, needlessly complex instrument and in order to tackle a lot of that, you need to use code and you need to

analyze data in very complex ways in order to make progress and so the tools of computer science are very important for making progress in neuroscience. >> now he's working on more low-brow things, like providing pathways for most sbrer enterprise software companies, the bread and butter now is basic cloud-driven operations, analytics, and migrations, not the ai hype. >> so it's affecting us, but i think in terms of broader adoption, we're still just looking at the tip of the iceberg, but like i said, we are seeing it primarily being generated by ai tools, and in we're close going into data bricks it's harder to tell i think than to see a change with some other destinations just because

there's so much going in, you know, this new stream is not yet big enough to notice it in the larger picture. >> notice he mention d data bricks there, a major customer -- we had a lunch with the ceo back in april. bottom line is while ai is important, investors can't get tricked into thinking it's everything right now or even in the next three years there are some powerful trends adjacent to it and preceding it, guys, like data migration. >> wow i'm almost choked up i mean, he's very impressive, and he's been at this for a long time >> he has. orig originally he was working on something different and kind of stumbled on the data migration problem. why is this so hard? right now he's trying to amp up the reliability of data migration, recently moved it to 49, so 99.99% being able to- that data in the correct way. you have to get the right data

in the right place before you can mess with it. >> right jon, thank you have a good weekend, sir. >> you too >>. still ahead, netflix's sharing password crockackdown is bearing fruit here at home all that and more when "power lunch" returns june is pride month and cnbc is celebrating all month long sharing stories of corporate leaders. here is the ceo of grindr. >> we know there's so much attack and hate at the community today, happening from that context, grindr going public in november, and it speaks to a lot of things. the extent to when we were celebrated on wall street when it went public, and i think it's going to be fantastic. here's a company built by gay people for gay people where, you know, the ceo is gay, married, and with children. grindr's board has nine members in total, six of whom who are

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next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business. welcome back, everybody. about four minutes left in the show, and a lot more stories that you need to know. so let's get right to it starting with after weeks of uncertainty over netflix's

password crackdown would add or chase away subscribers or make no difference, we have an answer according to analysis, netflix gained csubscribers in the days after the announcement was made. tim, i think it was climbing on these -- on this idea. >> it was climbing already jpmorgan put out a note saying they monetized 60 million of those 100 million subs, and 8 billion by 25. it's a mover, significantly. >> do you like the stock here? >> i'm on the stock, and again, just on the charts relative to other mega-cap tech, they have more prelimlumbing to do, but i not expensive, certainly not to itself one of the best performers so far, or over the past year new data show americans now owe a record $988 billion in credit card debt and according to transunion, gen x is carrying more than any other generation, holding $7,600 per person on

average. that compares with $2,900 for the average american aged 18 to 29 at some point, doesn't the music have to stop here? >> i think it does we're starting to see it feed on down we're seeing some of those delinquencies increase you can only pull forward so much, and we're seeing, you know, what's happening in the grocery store and there's no relief there >> yeah. >> there's only so much wallet. >> i wonder whether, you know, it's an interesting point because 20 years ago, people didn't use typically their credit cards at the grocery store. now they do. >> yeah. in fact, it's one way to actually not realize how much you're paying at the time. or so it seems >> yeah. >> there's not, you know, food inflation is something that, again, we'll talk about probably for the next couple of years i think the pull forward to me in some discretionary, look. i'm not short lulu, but i'm short nike, and i love the company and i will be long again, but that consumer is under some pressure. >> the only thing i'll say is

that -- you need to compare this level to something, right? household debt levels are still overall pretty good by historical standards so i'm sure there are some segments of the population obviously they're overextended, but not like you were in '08. >> the lower income consumer is facing this head-on, and di disproportionate when you think about relative to income, especially with aprs going where they are, it's going to be felt. >> speaking of retail. target from neutral to buy sales from the retail giant are likely peaked. they've cut their shares saying the risk is to the downturn. i don't know if this is macro or on the boycott issues. >> it's a combination mostly of the wallet share, mostly towards grocery. 51% of the sales is merchandise, and this is the target story, right? i think that's part of the story. the stock has corrected so much, and on a relative, you know, the

walmart/target pairs tratde, it favors walmart valuation significantly discounted to walmart, and i think at some point you start looking at that. >> it was in the 140s, 160s. >> it's getting crushed. speaking of getting crushed, how about some crushed avocado the mission produce up about 7% today on a second quarter beat that's despite revenue dropping year over year, thanks in part to a normal pricing environment it says right here avocado prices surged to record highs last year amid robust demand c st constraints and mexican imports stoppages because of cartel violence, but that has turned around production is up a little bit. >> i ate mexican last night actually and i was a watcher on the sidelines as the guacamole thing was mixed up >> love that. >> i'm a seller of guac. >> you don't like it >> i don't something like the texture of avocado. this is wildly unpopular

opinion. >> the more you learn. >> i'm not putting up with pressure on avocado prices i'm keeping them down. >> got an opinion on this. the ottawa senators. ryan reynolds was going to buy them, but he can't bail them out. >> he's busy doing a lot of other stuff and doing well, including winning the stock draft on cnbc recently sports franchises going through the roof. >> thanks for your time today. it's been a pleasure. >> thanks for your time. >> "closing bell" starts right now. kelly, thank you so much will be to be"closing bell." i'm scott wapner charges against former president trump. you see the live shots from the justice department jack smith expected to make a statement any moment now we are going to go live to washington when that happens first though, take a look at where we stand here. just past 3:00 in the east, the s&p 500 trying to close above 4,300 for the firs