back better than a case of build entered back to the future you will recall cataclysm of employment trade deficit and soaring interest rates. it is taken biden less than five minutes to take us back try decade so far because by this time next year it'll feel like the 1930s. that's it for us, i'll be back next week with in-depth interviews on the wall street journal at large. thanks for joining us. ♪ >> "barron's roundtable" sponsored by invesco qqq ♪ ♪. jack: welcome to "barron's roundtable" were we get behind the headlines and prepare you for the week ahead, i'm jack cotter. jeff king ceo jason robbins on post-pandemic sports betting and social media. how pipeline problems and semi conductor shortages are adding to inflation pressures. we begin with the three most important things investors ought

to be thinking about right now. stocks tumbled this week after jumping consumer prices in april tech stocks with the steepest losses a big step forward as the cdc says fully vaccinated people can go mostly without masks the stay-at-home trade is over and will look at with hunter which stocks offer value, highflying stocks like virgin galactic is falling down to earth and how its fall into attractive prices, my colleagues ben levisohn, karl english and jack count, ben, the market started out the week saying oh my gosh inflation we are worried and by the end of the week a little inflation is healthy. >> it was a bad week for the stock market not disastrous but it look like it was going to be inflation report came out and it was hot it was hotter than we seen in a very long time, the market's first reaction was to sell everything tech stocks and speculative stocks took the brunt of the damage but things connected to the economy like

metal fell as well but by the end of the week the market had stopped worrying at least for now and there's a bit of recovery in the s&p and dow finished down 1% the nasdaq down over two. jack: if i worried about inflation one of the last things i'm going to do is buy a ten year bond that is pay me 1.6% you would expect if the market was really concerned about this that bond yields would've gone up in stock prices would've fallen. >> he would've thought so but the one thing people have to remember the fed is out there buying a ton of bonds, when they start giving up in the yields rise we can assume there is a little bit of the fed coming in and buying some of those, the other part people still believe in bonds as a hedge against getting really bad for the market. we did not get that this week bonds fell but that is still the belief out there and there are people who still want to buy

them. jack: if you're a european investor american yield of 1.6% look pretty juicy than what they're getting over there. what he looking at next week? >> with the way things are in the data points coming out in their flying all over the place were getting beat by extreme numbers i'm looking at every point that comes out next week we have jobless claims, housing numbers but all the macro data is very volatile so it's really hard to look at anyone number and say this is what's going on, for right now i'm holding on to the sectors that benefit from the strong economy, energy, financial, material, over tech and growth. jack: that's a very important reminder don't look at what number you think you can extrapolate from that, tomorrow a different number will come out. eric savage writes in this week's barron's that the stay-at-home trade is over, what are you looking at there? >> definitely i think we can say the trade is over yet the

guidance from the cdc say people who have been fully vaccinated don't need to necessarily wear a mask even large cities had reopening plans or easing restrictions going into effect next week certainly in new york city, the question for the investor when you look at stocks what you make of that so many people had hopes on streaming in the cloud companies but you had disney out this week with the disappointing gains and disney+ still a great offer even slower growth as people are starting to go out more when you look at the highflying names from last year zoom city, still a great company and something that were obviously using but jamie dimon of j.p. morgan saying i'm zoomed out i want to have in person meetings to get better business that way so you're going to see the popular stay-at-home work at home are losing some of their steam. jack: zoom was up a hundred%, you think it might be time to

take profit are there any value somehow fallen quite a bit are there any good value or should we keep her distance and keep to cyclical stocks. >> you want to be careful a lot of the popular younger companies your data dogs you may want to level they're down 30% or more and might be a good chance to nibble but you want to be in the true names such as microsoft and amazon if you like to make the cloud place another one would be apple and logitech there was a huge surge as people were working from home there might be a little bit of juice in the trade as some people need to upgrade i had to recently or go back to the office the office might think about maybe we don't need as many desktop computers maybe will want to go to laptops there might be a little bit of juice but a lot of analysts say a slowdown 2022. jack: let's switch to jack on

facts, people forget these are nothing but financial bustles under vessels you can spin go rose petals or something less fragrant. >> special-purpose acquisition they've getting cobbler now you have companies that avert he done there's virgin galactic down 73%, pfister done 45%, etf's that have yet to do deals, one called defiance and another morgan creek those are down 80%, people want to know whether they're cheap, i put these in a category with crypto currency and non-spendable token and i'll call it the asset class folds speculation bs for short i don't think it's time to bargain hunt and bs, did so well because interest rates are so low for so long it made quality stock too expensive and investors that i might as will shop there now we see signs of inflation that has

gone into reverse you need to look for quality stock in case we shift to higher inflation and a cya market that's where you need to cover your asset allocation with dirty cash flow and reasonable valuation. jack: nicely done, thank you for that. online sports betting boom during the pandemic lockdown in the industry keeping it going as a country opens up, jason robins a country opens up, jason robins will be here ♪ na na na na

♪ na na na na... ♪ hey hey hey. ♪ goodbye. ♪ na na na na... ♪ hey hey hey. ♪ goodbye. ♪ na na na na ♪ na na na na... the world's first six-function multipro tailgate. available on the gmc sierra.

are your hr processes weighing down your employees? on to quarterly projections! the world's first six-function multipro tailgate. expense report! if you're using multiple systems, re-entering data over and over time sheet! using email and spreadsheets to manage information and approvals, then your hr systems are a drag on productive time. with paycom, employees enter and manage their own hr data in a single, easy-to-use software. visit paycom dot com and schedule your demo today. do they know this door is locked jack: online sports betting sword during the pandemic lockdown but now 35% of americans are fully vaccinated and venturing out will the betting boom bust, draftkings ceo jason robins, your recent earnings report is what wall

street calls the beat and raise, better-than-expected numbers and increase guidance for the future. i want to ask you, you have good news in the sense that more and more states are opening up to sports betting, we have the sports world opening up some more games to bet on but post covid maybe some will get outside and play their own sports, how do you see the post pinned him a world aligning with your company? >> it's really hard to say obviously we believe we sell benefit from people staying at home and having more discretionary become available to them but it's hard to know how things will transition to whatever normal ends up looking like. jack: let's talk about the addressable market analyst thinks it's a 35 billion-dollar market but the estimate there's $150 billion offshore and illegal betting going on which presumably and now we have 23 states legalizing it but if it spreads, what do you see as the tm on wall street.

>> it depends on how many states in which states decide to move forward with legalization if you were to get to 100% of the u.s. being legalized we predict a combined mobile sports betting and market in excess of $60 billion gross revenue opportunity. i'm not sure if organ is a 100%, we probably won't but if you did see that those are be the numbers and the rest will come down to which states and when they legalize. jack: states are hungry for tax revenue, does not waive in your favor, what is the past profitability for draftkings. >> what we look at a state-by-state basis because each new state opens up there's a period of investment to acquiring customers and ramping up the market, once estate is more mature usually that starts to happen two to three years in and continues to see growth, new jersey which launched less than three years ago is a great example of that, i think some of

the other states are going to come up on the second third year coming in a couple of quarters, really we feel like that's on track. >> you partnership with mlb, nhl, nascar, pga, mba, what is the philosophy, how does that strategy evolve over the future. >> a lot of it centers around reaching customers with our products and market to customers to sign new customers up and engage existing ones and being able to buy content to our customers that otherwise we might not have access to, depending on the deal there is a mix of those things and sometimes there will be things particularly with our team deals where we get access to field experiences, sweets and other things we can award in contest to retain our top players, it is a mix of things and depends on the individual relationship where the emphasis is about were very lucky and pleased that so

many great organizations have decided to do deals with us and we think it allows us to provide differentiated experiences as well to market and prospective customers. jack: getting into content that is interesting, maybe because i'm a journalist but you bought vegas sports network and now even espn is a separate thing but they're getting into better specific content, talk about that you even have a social aspect after you announced. >> were very excited about the social aspect, it's correctly blockaded it to another form of content and provides connectivity and generates network that people are following each other's beds and playing fantasy games and playing pools against each other that is a reason people will stay with draftkings platform as opposed to doing to others we think there's a great network and the social features, as far

as traditional content, really what we seen tremendous energy between media content and gaming products that we offer, simply put people who consume more content play more of our games and people who play more games consume more content. jack: before you go your favorite sport in your favorite team in that sport? >> it's a tough one i love so many sports and so many great teams but if you made me pick i would say nfl football and the new england patriots. >> i'm a jets fan i hate to hear that but it will be fascinating to see you guys rebuild, thank you so much. coming up operations at the colonial pipeline have resumed but some of these states are short gas energy expert daniel on the vulnerability and how supply chain disruption can supply chain disruption can inflect ♪ ♪

we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa stay restless with the icon that does the same. the rx, crafted by lexus. lease the 2021 rx 350 for $439 a month for 36 months. experience amazing, at your lexus dealer. (vo) conventional thinking doesn't disrupt the status quo. which is why t-mobile for business $439 a month for 36 months. uses unconventional thinking to help your business realize new possibilities. only one 5g partner offers unmatched network, support, and value-without any trade offs. ♪ ♪ look, if your wireless carrier was a guy

you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings. or visit and xfinity store to learn how our switch squad makes it easy to switch and save hundreds.

jack: cyber attack on the colonial pipeline led to shortages and higher prices of gas stations on the east coast that is the latest in a slew of display entered supply chain disruption in outing into inflation author of the new map daniel juergen, dan, thank you so much for joining us it is great to have you we have a lot to get through but i want to start with the recent news, gas is flowing again and seems to resolved itself the highlights of vulnerability of our electric grid in energy infrastructure in general what can we do to better protect the. >> certainly it was not this it was texas, the big freeze electricity in california and showed that in general how dependent we are an energy infrastructure in terms of what

colonial pipeline has demonstrated this was the first real digital disruption and it's a question of lifting the game in order to deal with criminals who keep improving their capability. >> you have been focusing on supply chain disruption all around the world that is messing with the entire global economy, that could be pushing up inflation higher, can you explain what is going on? >> what happened is started with covid and people at home and ordering a lot more stuff at their houses and now were looking at 6.7% economic growth this year, household savings three times the normal rate, there is a lot of money in the supply chain are impacted ports, tracking, down to the chipset going to automobiles and whether you're waiting for a new couch it could take four months to get there or go buy a new car it'll

take four months because the chips aren't there for the cars we have never seen a supply chain this disruptive and the delays this extensive. >> we ordered a microwave before thanksgiving and we got it last week, ben has a question for you. >> with inflationary forces resolve themselves like they did in 2011 or will they trigger a more persistent rise in prices. >> i think obviously it is a lot of money flowing into the economy and markets will respond in the supply chains will be fixed and that will take the pressure off prices that were seen right now but if you look at it week after week the cost of shipping things from asia to the united states keeps going up and ultimately that gets passed on to consumers and shows up in inflation. >> what you expect gas prices to look like later this summer relative to now and if there is a big uptick in electric vehicles through the decade do you expect the longer-term

collapse in the gasoline price? >> the answer to the first question is typically over the first part of the summer once we get over the colonial pipeline you see grass and prices going up because more people are driving in your switching to summer blends of gasoline and then the ease off later in the summer, i think in terms of gasoline prices and demand it's going to take a while for electric cars to build up sales are running at 3% the average american car stays on the road for 12 years, i think you have to push that out towards the end of the decade and look what happens to overall global demand for oil which we think will continue to rise until 2030. jack: you talk about how we worried about pete and now were worried about pete demand but i think carlton has a question for you. >> i'm curious to hear your take towards renewable energy

especially like exxon mobil are facing pressure from shareholders just curious to hear your take is transitioning likely and not so what timeline. >> electric utilities in this country electric power companies are moving out of good clip toward solar and wind partly because technology has come down in regulatory pressures and there is a lot of incentives, it will continue to grow and it will be an important part of our electric power system but when you have wind in solar they are demented so you need something to balance amount when the sun is shining and the wind is blowing. but it is happening, i'll tell you in the biden infrastructure bill there is 50% more money going to promote electric cars then bridges on the highways.

jack: we have to go i want to ask you give us the name of one interesting company that might be disrupting the incumbents in the energy space. >> i think it is probably the offshore wind i think what you have to look for now the hot new topic is hydrogen and who's going to be the players in that emerging but europe is talking about 25% of energy coming from hydrogen from 2050 in stock how to get there. >> that will be amazing when nothing but a drip of water is coming out of your tailpipe up next roundtable members give their investment ideas for the their investment ideas for the coming weeks, stay [ crowd cheering ] [ engine revving ] [ race light countdown ] ♪♪ ♪♪ when you save money with allstate

you feel like you're winning. safe drivers save 40% saving is easy when you're in good hands. allstate. click or call for a quote today. saving is easy when you're in good hands. ♪ ♪ ♪ ♪ ♪ ♪ hey google, turn up the heat. ♪ ♪ ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7.

every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

they said it couldn't be done but you managed to pack a record 1.1 trillion transistors into this chip whoo! yeah! oh, hi i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be circuit design engineer to help push progress forward can i hold the chip? become an agent of innovation with invesco qqq jack: i don't know if this is

true but i heard your plans for the summer were to pop open a cold one and let a robot move your lawn once more when it comes around. >> you have to start with the safety gear first and i want to remember that your production for the gas power tools, i spoke this past week with jim lori the ceo of stanley black & decker and talked about how battery-powered yard tools were emerging as a major growth driver, that includes electric riding mowers and robo mowers, he said by the way inflation is huge tuesday and you can hear all of that interview on barron's podcast, please don't forget to reinforce chaps when you get out there in the yard, are you supposed to work chaps under these i'm not sure i'm doing it right. >> when they haul you into whatever court i think you find out the answer to the question.

you are scaring me you better leave the work to robots. let's move on to see what carlton and been have actionable ideas at our practice, what you have forced customer. >> i have a twofer for you this week, don't forget tax day on monday, file if you have not also rebalance your portfolio tax time is a reminder for people to rethink your whole financial life, we talked about the change in the stay-at-home take a look at your high flyers for value oriented plays as well. jack: that is great advice and i am a procrastinator my accountant is about to kill me i will send that in on monday. what you have for us. >> the chemical company had a good year up around 50% and is lagging behind other chemical companies, we took a look at the trader column and he thinks it's going up probably around 20%

from here. jack: thank you for that, i am still worried i don't know interesting outfit but great idea, to read more check out this week's edition of barron's.com don't forget to follow us at barron's online. that is all for us, be healthy, where your mask, it's okay ... male announcer: coming up next on "leading the way." dr. michael youssef: the word of god radically alters our character. and so let me ask you this. are you broken? the word of god is more than able to mend your broken heart. are you sad? the word of god will give you joy unspeakable in the midst of your sadness. are you lost? well, the word of god is a lamp unto our feet and will guide you to salvation. announcer: coming up next. ♪♪♪