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tv   Power Lunch  CNBC  October 5, 2021 2:00pm-3:00pm EDT

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sentiment. >> and so many of the long-term holders, 80% of people you had that survey. in it for the long run >> so fewer bitcoin available to buy. so that liquidity, lack of liquidity in bitcoin market is seen as good for prices. >> thanks so much. that does it for the exchange, but stick around for "power lunch. it starts right now. oh, yes, it does, kelly. welcome to "power lunch. we are tracking the market's big bounce today and here's what else is ahead. yellen's warning the treasury secretary tells cnbc a recession is inevitable if the debt ceiling isn't raise. what investors need to know ahead of a key congressional vote beaten down and battered the bio tech sector is in one of the worst drawdowns. but the pull back is creating opportunities. you just need to know where to
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look we'll tell you and a working lunch with the ceo of duolingo. how he'shelping workers now gain skills today. kelly. >> very much looking forward to that, tyler. major averages are rebounding. near session highs for the dow at 450 points. it's up 1.3% nasdaq is up 1.7%, trying to undo yesterday's damage. megacap tech is bouncing back. look at netflix. another all-time high of 5.5%. facebook higher as well. there's amazon, apple and alphabet up about 2% so is facebook after yesterday's drop even as the whistleblower test testified this morning on capitol hill there's wti over 79 on a 2% gain today and nat gas $6.32. >> thank you very much let's move on now.
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despite today's higher move, our next guest sees some storm clouds for the market from supply chain issues to employment policy, uncertainty, but he is finding some high quality stocks that tend to hold up when the market is under pressure kevin is senior portfolio manager at washington crossing adviser. sporting a new beard, once again. why is quality so important in a market like this one with more volatility and possibility of head winds >> well, it's important because we see that there's more risk in the market than most investors anticipate especially after many, many years of positive things so given that, and given that quality doesn't endure throughout a cycle, to us, centering a portfolio on this idea of flexibility, durability, all of those concepts that would get you through a tough patch, that makes sense, but remember
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that quality can mean growth and with growth means return so to us, a portfolio centered on quality should outperform over time and do so with less risk >> what does quality mean in terms of stocks and give me some examples of stocks that you like right now that exhibit those attributes of quality that you're talking about what are the attributes and what are the examples >> so quality means lots of different things to different people, but to washington crossing, it means looking at debt, equity we want to see low debt, a very consistent business and highly productive assets. if we can't see those three things, then we consider a firm to be a low quality. but for us, high quality firms would be companies like tjx company, for example or honeywell for example or canadian national railroad.
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those are all names that to us, by the way, they've all underperformed this year, which sets the stage for better returns in the world ahead, but they're also companies you can count on when things get rough and investors start to look for that kind of durability and flexibility. >> kevin, what do you make of the broader call as to whether we've reached kind of bottom here and we're turning around? in other words, is the dip behind us now? >> well, the market is trading in the united states with a value of over $50 trillion sitting on a 20, 21, $22 trillion economy so the challenge for us is not so much about the dip and it's not like we're going tand buying lots of cheap assets what what seeing in our macro rock is the returns for stocks isthe lowest we've seen in a long time. the only real problem is that
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we're coming at this with the market trading at a 37 multiple that's higher than average and those valuations at some point are going to impart a cost so to us, it's not so much that we see a trading bounce or anything here. what we're really saying is that for a long-term investor, we want to be able to focus on areas of growth and durability and recognize risk because there is risk in the market due to more debt and due to high valuations so we want to focus on this quality concept. >> you mention quality three names. tjx, canadian national, and i believe it was honeywell why have they not participated just because they're not sexy? >> it has to do with the time frame. last couple of years, it was when the pandemic hit, quality did really, really well. and all the f quality companies, the lowest quality companies, they fell like a stone starting around october,
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november last year, once we got vaccination results and started to move towards vaccinating and the idea of reopening, for a nine-month period, it was a junk on, low quality rally from october last year until early summer this year then since early summer, the market has been more judicious and we've now seen in the third quarter more of a neck and neck performance between the a quality companies and the f quality companies. so we think that we're looking at a shift here. a dynamic that's changing where the low quality junk rally is probably over and investors want to be looking at this higher quality type companies >> clear and helpful, as always. thank you. >> in the midst of one of the worst drawdowns in bio tech history, heading towards lows. according to our next guest, we haven't seen this level since hillary clinton's controversial
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comments on drug pricing how should you invest in the sector let's bring in oppenheimer's healthcare equity strategist before we talk about what to buy, let's talk about why bio tech isn't working especially when investors are telling us they're looking to healthcare for outperformance >> thanks a lot for having me. it's been really, really tricky year the sector started out really hot and really since february has taken a turn for the worst there's a lot of reasons why i think one, you know, obviously last year was a positive year for the xpi putting up 50% returns in a tricky year with a pandemic this year, you have a con fluns of factors the 2020 returns have to be taken into context the second, unlimited capital formation. so many companies coming to the fray i think that inherently probably lowers the value of other companies in the space because the valuation in terms of
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scarcity value just is not there. then there's been just so much attention on other sectors so much attention on the technology sector. so much attention on the return to normal trade or the reopening trade. and so bio tech kind of just stands here in the middle and there hasn't been any momentum for about nine months now. >> what would give us that momentum are there a couple of specific names or the etf more broadly that you would tell people to look for opportunity are we not there yet do you not like what you see in the charts still >> the charts look horrendous. so many of the stocks and xpi and bio tech more broadly are trading near 52-week lows. we need reversion in the space some could come from the form of m&a. looking at names that are down and out and haven't been down on
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fundamental news, i think that's what it's going to take. investors looking at this sector saying okay, we haven't seen this type of disparity between the market and bio tech in six plus years and really going back more than a decade in terms of how bad it is. i think this is the top year, the number one year for the s&p return versus the xpi. so looking into next year is a little bit of a ve verreversion. this year's been all about momentum and now with momentum out of the group, it's going to be a little bit tricky but typically, i would say m&a we've seen four transactions since the summer and investors haven't really been clambering at all >> i'm your ordinary dufus i investor i know these names but i have no idea if i tried to only meg terrell would understand what they do.
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i can't understand it. so am i better off going into an etf or a bio tech mutual fund and letting smart people like you pick my stocks or am i, should i go and try and do my research and choose my own stocks maybe with an adviser what's the best way to play it >> well i think you've just hit the nail on the head because i think it's been difficult for healthcare investors and healthcare experts to figure this tape out. >> yeah. >> there have been so many companies that have been created just over the past five years. i think we've introduced over 600 publicly traded companies into bio tech and then there's countless names in the private realm. some of which we know, some of which we don't even know just the sheer number of stocks or companies that you have to learn and understand has made this very, very con vaa lewded an complex for even the smartest, you know, biotech investors out there.
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i think the sentiment you raised is probably one of the bigger issues that we see >> so what should i do go into an etf or a fund or try and pick my own way? >> well i think you have to probably do a combination of both i think you know, the xpi as an index has had more good years than bad this is going to be one of the worst year, minus 10 to 15% year, somewhere in that range, but it's roughly down 10% this year but it's been a very good index historically >> jared, thank you so much. making sense of an area that's important, but sometimes baffling coming up, the treasury secretary has a warning for investors. we'll look at how the debt drama in d.c. will play out. plus nike shares have had a mediocre year, but a new survey shows that teens love the brand.
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i can attest to that ti it a top pick of our trading naon team? we'll take a look and find out when "power lunch" returns commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it. - [narrator] introducing the grubhub guarantee: our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order.
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immediate action to raise the debt limit before the deadline on squawk box this morning, she said the consequences are dire if there's a debt default. >> u.s. treasury securities have
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long been viewed as the safest asset on the planet, but partly accounts for the reserve status of the dollar and placing that in question by failing to pay any of our bills that come due, would really be a catastrophic outcome. i fully expect it would cause a recession as well. >> joining us now is libby cantrell, the head of public policy at pimco. welcome back good to have you with us react to what janet yellen said and explain if you would to our viewers, why the debt ceiling limitation why not raising it or doing away with it would have such dire consequences if you agree indeed that it would? >> yeah, it has been our long standing view since we started flirting with not raising the debt limit back in 2011. of course it would be catastrophic
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treasuries are really the grease of the financial system. the reserve currency of the u.s. dollar gives, allows the u.s. many privileges that other countries don't have so this that we would default on our commitment, would not completely honor the full faith and credit of the u.s. debt is just, it's unconscionable. we don't think it's likely to happen although of course policymakers are really pushing this up to the limit, but we would agree with secretary yellen that of course, this would be catastrophic >> and inevitably it would mean higher interest rates because we'd have to pay more to borrow money. that could do further damage to our already overextended budget. there's this game of silly chicken that seems to be going on on the one hand, senator mcconnell saying the democrats have it within their power to do this on their own through the budget reconciliation process.
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and senator schumer saying, oh, no, we don't this can't be done through budget reconciliation. it has to be bipartisan. it should be bipartisan, why is debt reconciliation so an at ma to the democrats, not holy grail, but security blanket to the republicans? >> yeah, this is a lot of sort of you know, process mumbo jumbo if you will, tyler so democrats can use this arcane budget reconciliation process to increase the debt limit by themselves now, they don't want to do that for a variety of reasons one is they believe that because republicans have voted for many of these spending bills or tax cuts, previously, that they should also shoulder the responsibility of increasing the debt limit because of course, the debt limit is just increasing the amount, basically
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just honoring what we've already charged. we've already spent. so democrats think republicans need to take responsibility for that as well but then there's also, there's also a sort of procedural issue here that it would take some time democrats, even though they know they can do this by themselves, they politically do not want to do it. with less than two weeks left of the x date, we are really coming up to the limit. >> okay. >> so chuck schumer says there will be a vote tomorrow. schumer on raising the debt ceiling, what does that vote mean as i understand it, we have until the end of the month until the clock really starts running out. >> so it looks like wly that th vote will fail our view is that the democrats
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will then have to resort to this s reconciliation process by this weekend. i think we need to take this x date that secretary yellen has provided us quite seriously. october 18th the cbo has different estimates. i think we need to take what yellen as the drop dead date and if this regular order, if they can't get 60 votes to vote for this, then they will have to resort to reconciliation we think it takes sort of ten days to do this. so the clock is definitely ticking. there's another failed vote tomorrow i think you'll probably see the senate pivot pretty quickly by this weekend to resort >> as this kbgoes on, one would expect these beautiful green numbers that we see today, that they're going to turn to red i suspect you would agree with me on that, but i want to ask a separate question and that is this there are two other big bills
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that are part of the biden agenda one for infrastructure, bridge, roads, et cetera the other for human capital investment i guess is one way to put it what are the prospects for those two and how, if at all, are they balled together in this discussion of the debt ceiling raise? >> i think what we've seen in terms of the market's response to the debt limit is that about a week before that x date, the markets do start getting nervous. we've seen some jittery, so i think we can expect that as we get closer to the date without a resolution, but in terms of this bipartisan bill, the bif and then the build back better agenda, this sreconciliation bill, our long standing view has been that failure is not an option for democrats and in some ways, this sort of drama around the debt ceiling probably means
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that's even more true. that they need to show americans that they can govern that they are kind of competent stewards of the economy, of the government, and that it increases the sense of urgency that they need a deal on these things i may be more iterative in terms of ultimately getting a deal, but we believe there will be a resolution on both the bipartisan deal and this reconciliation deal by the end of the year. >> that's a really important point there that this debt ceiling thing followed by the two others are a referendum on the democrats' ability to govern i thought you said for a minute, build back butter. i would like that, actually. that works for me. >> with the americans support. >> that's something we all can support. supply chain woes are
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getting worse for retail especially this stock. we'll give you the name in today's power moves. and it's hispanic heritage month. here's senior wealth adviser, courtney dominguez >> we've seen study after study that hispanics don't invest a lot in the stock market and keep a lot of money in cash i grew up knowing the power of saving, but the power of investing wasn't taught at home or school, but in today's day and age, you need to make sure your money is working for you. the best way to secure your financial freedom is to make sure you have annvtmt an pce iesenpl
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here's your cnbc news update at this hour despite recent criticize from warren, joe biden has -- as biden was head to michigan today. now aboard the international space station, two russians will be spending the next two weeks making a movie in zero gravity the first time this has ever happened. and william shatner, he's
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filmed many movies set in smas space. on the "today" show this morning, he talked about his trip to space. >> it has a semitri to it. the whole circle of life here. in more ways than one. i'm thrilled and anxious and a little nervous and a little frightened about this whole new adventure >> and back here on earth, in georgia, a deer ran full speed through the front door of a house then making a quick exit the family was not home and they suspect that a burglar was responsible at first their doorbell camera video revealed the true culprit. that's the latest. tyler and kelly, back to you >> thank you very much let's check on the rally today dow's near session highs, up 445 points up 1. 3%
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nasdaq up, still doesn't erase yesterday. energy and financials lead the way. hitting new highs as energy climbs today and financials up there. bank of america, fifth third at 52-week highs. all right. here are some of the movers we're watching now first is netflix hitting an all-time high the streaming giant outperforming its peers in big tech not just today, but over the past weeks and next, kelly. >> the payment stocks on the rise square up more than 4% that's lords town. that's a different story down about 9%. for square, it's been a volatile year, but they are trying to make these gains >> and bank of america downgrading columbia sportswear to neutral the firm sees risks to the stock from global supply chain constraints and delays and jim cramer writing more about this call in his newsletter you can sign up to find out more at or just point your phone right
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there. let me get my big head out of the way. the qr code on the screen, it will take you right there. >> should have his face in it. >> it should >> ahead on "power lunch," rolling the dice vegas was hit hard during the pandemic and even with things reopening, it's had its share of challenges >> and another week, another working lunch with jon fortt, he will join us with an in depth interview with a major tech ceo. we'll keep that tease, we'll be right back
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multiyear highs. brent crude broke above 80 year for the wti is swiftly approaching that level u.s. oil advancing to $78.91 that's the highest going back to november of 2014 and early today, the contract traded as high as $79. brent crude, highest in three years. now today's move following opec and its allies saying they will boost output by 400,000 barrels per day by november and barclays says the jump in prices seems outsized given that opec simply reiterated a prior target, but it shows just how tight the market is. nat gas currently up 9.7% at $6.32 after jumping as much as 11% to $6.39 a level last seen in february of
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2014 back to you. >> thank you very much the growing popularity of gambling has been one of the big stories of 2021. you can't spend any time watching a sporting event without seeing a draftkings ad or sceasers or whatever. draftkings down even though it seems like everybody is betting on sports. we were also supposed to see a revival for casinos, but las vegas sands, which is now mostly focu focused on asia, is 43% below its high one thing that is working in this space is gambling technology scientific games has doubled this year. just a few points from its all-time high. this morning announcing they're buying an outfit to let players use their debit card that's a good idea saving the walk to the cash machine. >> okay. the las vegas revival may have to wait until big conventions
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are ready to get back in person but one such event is taking place this week. the global gaming expo itself in las vegas. contessa brewer is out there talking to some of the biggest names in the industry and joins us now >> you know that they were not going to cancel because the casinos are the members of the global gaming expo and they need these people to show up. so here they are, crowding in and with me today is jim allen he is the chairman of hard rock international and the ceo of seminole gaming. great to see you today you guys have just announced a deal the announcement just went out today. a partnership with genius sports, a big data provider. talk to me a little bit about sports betting, which is getting ready to launch in florida >> well, obviously, when we signed our contract in the state of florida, we're going to launch sports betting sometime here in the next 60 days we operate in new jersey and other states, but that provides content from the nfl and that's important to us as we look at
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the amazing state of florida and having an exclusive relationship >> for a lot of cnbc viewers, the idea of investing in tribal gaming might be just foreign because they're not a publicly trading company, but there's lot of ways to get exposure to the tribal gaming markets. can you talk about these technology companies that we're seeing here today and the way that you're using those as you expand not just in florida, but in other areas as well. >> sure, if we look at the united states, the gaming market is basically a $70 billion market 35 billion is now in native american gaming and the banslan in commercial. the manufacturers is a significant client and opportunity for them you see some of the businesses that are out there, frankly, they rival any commercial traded gaming company there is. >> we heard about being able to use your debit card to go to the table. evri is one of the companies
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that you're using to move forward on cashless gaming what other companies might our investors think about if they wanted to take a little piece of action >> we have an exclusive relation with evri. they've done an amazing job. things also like gift give aways. you can put in your pin, we arranged an operation, or strategic relationship with amazon their gift is delivered to them within 48 hours. we're the first in the country to do that and that's in a relationship that we have with evri >> i've talked about japan and a potential for a gaming market there. today with cesars, mgm, which looks like osaka is going to be the city of choice i know hard rock has had interest in japan. where else are you thinking about international expansion as a growth opportunity >> in japan, we are still 100% committed. we've been there since day one
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iran' our brand's been there for over 30 years we've seen new elections and we'll navigate that. as far as internationally, we signed a deal in ukraine we are close to an opportunity in athens. we have a deal in barcelona. so our brand, actually celebrating our 50 years, we're looking at this as a global business >> i know there was a lot of hope that sports betting in florida would launch next week october 15th there's a federal lawsuit by a couple of the pair mutuals las vegas sands is backing an initiative to allow gaming near tribal opportunities give me a sense of this push and pull between what the seminoles have now, which is a near monopoly on gaming in the state. >> i'm the person who negotiates the contract and we certainly understood in order to obtain the votes for approval, we needed to be reception to restrictions and those type
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things so if a company is interested in running a referendum, we understand and that's legally possible obviously, we're going to protect our home turf. we think that once all the court cases are decided then we'll have a better barometer as to how to deal with referendums from our competitors or in some cases, potentially partnerships or doing it on our own >> you told me within 60 days. you think it's possible that sports betting launches on october 15th >> certainly there are legal challenges and certain individuals and organizations are trying to file immediate relief we're hopeful we prevail, but keep min mind, we're not the target it's the state of florida and the united states department of interior >> we're following closely jim allen, thank you for your time here. and by the way, tyler and kelly, florida is considered the superstate of sports betting and maybe the most lucrative, the most populous sports betting state once it launches >> thank you very much
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and thanks to jim allen as well. after the break, join us at our table for a working lunch. the chairs are set the table will be brought in the martinis will be served. jon fortt sitting down with the ceo of dliuongo. hi, my name is tony cooper, and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see,
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welcome back time for a working lunch with the ceo of duolingo. making it difficult for businesses to find workers, but it also highlights technology's role in providing new skills friday's jobs report, jon fortt brings up close with a ceo who's easing global pain >> this set up gets nicer every week cofounder and ceo of duolingo, a tech company that teaches languages. he's used to tackling comprehension challenges when he was in college at carnegie melon, he was part of the team that invented captchas. >> i was there, i talked to the guy who was my ph.d. adviser and
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then together along with other sort of ph.d. students, we started trying to solve this and eventually came up with the fact that computers have a hard time reading these distorted characters, but humans don't >> so we have him to thank or fla blame. he's since expanded into more languages and he's now running a public company worth more than $5 billion here's the insight in today's economy. he told me not everybody is using duolingo to learn a foreign language >> in sweden, the most popularly learned language on duolingo is swedish, which is weird. you would think the swedes already know swedish it turns out, when you look, they're learning swedish from arabic sweden took a significant number
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of syrian refugees and you see that in a lot of the european countries where it's either the number one or number two or number three most learned language is the language of the country and it's a lot of times by people who have been displaced. and you see that a lot in europe so we're very proud of that. that's one of the things that has made me the proudest about duolingo >> when i first met him more than three years ago, he told me he started it because of a lack of opportunity in his native guatemala. he also saw how the working class would get a leg up by learning english drivers made more money drivdriefing english speaking tourists and now he sees it unlocking opportunities within domestic economies. the question is, if duolingo can upgrade a workforce like this, can companies and countries, cities accelerate it a particularly interesting question, where we're hispanic
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heritage month he's a guy who really took his background, his legacy, formed a company based on that and made it profitable. >> i see in him the heart of a problem solver captcha solved a problem that was waiting to be solved duolingo is the same thing he identifies a problem, comes up with a solution >> welcome to his ted talk we have him there in earlier days you can see him at carnegie me melon and in the earlier days of dpling duolingo, you see him working on the problem. first it was just english. now it's multiple languages. you heard him talking about swedish. now he's doing english proficiency tests. colleges are accepting that. they were already positioned during the pandemic. people aren't able to come in, take them in person, so that's a growing business for him and
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he's expanding into math so this whole app-based accessible and affordable form of education >> sort of like khan academy or in harmony with that duolingo recently went public. they're probably tantalized by the opportunity that he could work with with the college prep industry with the billions of dollars that it has. >> mack is taking, you know, jon and i are friends, neighbors, actually, mack is taking italian. does he have italian >> he is taking italian. >> it's free with the ads, but if you want to get rid of them, you can subscribe. lewis has insisted on keeping it accessible for people at whatever price range refugees and bill gates taking languages on duolingo at the same time. >> why italian >> my wife is half italian and it makes his grandfather very, very proud
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he's never spoken any around the house. i don't know if he knows how to say where's the bathroom or what, but he's taking it >> introduce him to an italian girl you'll see how much. >> he'd learn a lot. romance language >> we really enjoy this segment. piper sandler is releasing its annual teen survey and nike reigns supreme before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪
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we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan. there's software. and then there's lindustrial grade software,s? forged from decades of industrial experience and insights. meet honeywell forge. analytical software that connects assets and people to deliver a cybersecure record of your entire operation. so that everyone, in your boardroom and beyond, speaks the same language. honeywell forge. industrial grade software.
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welcome back stocks are at fresh session highs. dow up about 478 1.4% nasdaq up 1.75%. and bitcoin at a four-week high above the 50,000 mark around 50,452 now let's get to seema mody with trading nation. >> hi, kelly american's teens want athleisure that's a takeaway from the teen survey released tuesday with nike the top pick in footwear and apparel. wall street seems to be warming up to the space.
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web bush with coverage on 18 footwear and apparel stocks with outperform ratings and supply chain issues looming they have been under pressure so let's discuss with the team. todd gordon and gina sanchez gina, deman may be there but can the companies deliver this holiday season >> the demand is very there for nike one of the better picks, one we own nat portfolio for client strategies the supply is hit by what's happening in vietnam, still shut under covid restrictions and more than 50% of nike shoes are made in vietnam and will continue to be a significant challenge and transit times are twice as long so nike has challenges to get the shoes stocked on the shelves in time for the holiday rush. >> todd, you are looking at an
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under the radar name in the shoe category >> i like crocs. this company has kind of reinvented itself from 2018. it was not cool but bankrupt stopped manufacturing. have come back incredibly with the teen market. teens are coming back to the mall people are shopping. we hold it in the growth portfolio. it is seeing massive growth. look at the long term chart. current level 140. earnings coming up october 27 so watch. they also source from vietnam. they're well valued. 14 pe, 20 times forward earnings increase the debt lately which is an issue. but they are a direct to consumer operator. half the revenue the other names are wholesale revenue sourced. the operating margin is far superior topping the digital
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leverage social media era and getting more bang for the buck it is a high flying ganame we own it. >> up 120% thank you for joining me for more head to the website, follow us on twitter. >> my son, yes, nike not so much the crocs. >> not me either. membership has its privileges, especially coming to the hard to find items we'll go under the microscope next. now the latest from trading and a word from our sponsor.
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welcome back workers at all of kellogg's u.s. cereal plants going on strike. this according to the associated press. 1,400 workers in total not clear how much supply of the popular cereals will be disrupted. >> wow look at the shares see them spike lower on that news. best buy is launching an annual membership program. dom chu is here to explain dom? >> if all those supply chain
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issues have you worried about getting access to the favorite consumer electronics needs best buy has the solution the retailer is launching a membership program called total tech with things like unlimited tech support, discounted pricing, product protection, free shipping, installation. the membership cost is an annual one. $199.99. if you are a member you get access to high demand products before regular customers do. they did not go details what those items are but the products will be accessible on exclusive deal days. for those that afford it it might be part of the holiday shopping heenlg and also an interesting play from best buy to get into that big recurring revenue stream of memberships like amazon with prime or what
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dish network has done with the on tech smart services which is a similar product to the one that dish network launched in 2019 if you have them you have a lot of different membership options and every company wants access to that recurring credit card charge happening once a month or once a year and so that's a big deal for best buy if it works. >> i'm part of one of their frequent buyer clubs or whatever it is and i don't know this but does this include free shipping on items that i might receive? >> yes could be free shipping, free installation. >> ought to believe at that price. >> here's the interesting part when on tech part of dish network did it the idea was to sell you not only the products but the installation, a discount on installation and the tech support kind of function and what they give you access to is the stuff but i guess the margin
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benefit is how often will you use the tech support and buy the products how much will you monetize the amount of membership that you have amazon's done a good job of that because not only is it the free shipping i think that pays for itself but then my kids watch the amazon prime video now we have amazon music on there. the things have gone to enhance the product offering you wonder if the best buy offering or on tech at dish gets people interested enough to kind of trance act or traffic more on the platforms. that's a key. >> what was the issue with them securing the merchandise sounds like papering over the supply chain issues. >> could be. they don't tell you and probably by design. i don't know if i can get the next big playstation or xbox release or airpods and i do know if i have better access to jump
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the line that $200 might be that insurance premium to pay as a hedge in case the holidays is crazy. >> nordstrom does this if you're a frequent customer you get early access to sales ahead of the riff raff. >> like me the riff raff. >> thank you good to be with you. thank you for watching "closing bell" starts right now. ♪ hello and welcome to "closing bell" i'm sara eisen here at new york stock exchange stocks bounce back in a big way following the frantic session on monday firmly in the green here heading into the final hour of trading. >> welcome back. feeling better >> yes. >> looking and sounding great. great to be reunited. >> it was an ordeal getting covid and everyone in the house and obviously get vaccinated but don't let it be a false sense of the comfort because watching your toddlers ge


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