tv Power Lunch CNBC November 9, 2021 2:00pm-3:00pm EST
everybody. thank you so much for tuning in, but don't go anywhere because "power lunch" begins right now yes, indeed, it does welcome, everybody, to "power lunch. here's what's ahead on a tuesday afternoon for you. inside the chip battle from luminar to meta. semi companies are landing big partners in the hopes of dominating big industries. so is the strategy a winning one for investors like you and which companies could be left behind plus, deck demand. trek shares hitting an all-time high on strong quarterly numbers. we'll ask the ceo if the great outdoors trade is just getting started. and if wages are up and workers have leverage, unemployment is down, why do americans think the economy's so lousy? we're going to explore that in just a few minutes >> thanks. hi, everybody, and welcome to "power lunch." markets continue to slide lower,
but we're not back yet at session lows we're retreating from all-time highs. two-thirds decline for the dow and s&p, nasdaq down nine tenths of a percent banner day for crypto. ether at 4750 or so. bitcoin at 66. it was at 68 up 22% in the past month ge continuing to lead the s&p, but well off its highs after announcing it will split into three separate companies focusing on aviation, healthcare and energy and a rough day for paypal after reporting weaker than expected results and guiding below street estimates, the shares are down almost 12% and roblox is soaring after topping estimates as revenue more than doubled and bookings rose 28%. the shares are up 35%. oh, and i'll keep going here let's kick it off with the big move in chip stocks and the race to dominate. nvidia shares are down about a percent and and a half now
they announced a big partnership with luminar technology to put self-driving hardware in cards this comes a day -- gaining meta and listen to the stat of the 30 stocks in the i share semis etf. only two are lower so as the sector becomes a standout in the future of technology, how do you separate those who will continue to dominate and those who might be left behind? vj, do these look too aspirational for you powering a meta verse that doesn't exist yet or is it what you want to see for these companies? >> thanks for having me, kelly i do think the metaverse, virtual reality, is picking up so many of these names like inindiv nvidia, amd, all stand to benefit from this virtual reality. so you're seeing facebook
getting with metaverse you have apple next year sony and hp getting into the space. it would be a huge win for the chip suppliers we like nvidia like we mentioned. also, a player in that space and the cloud there as well. >> does the price action lately concern you? just the absolute lift we've seen in the last week or so? >> i mean, not concern, but i will say there's some new growers in the space we have via one point about ten years back, a flash in the pan, came and went, but i think now there is a whole new push, especially with facebook's metaverse, avatars and virtual reality meetings especially the post covid, post pandemic era so there's a lot of computing back and very good for the hardware guys. >> am i right to infer, vj, that
if you don't have exposure to ai or the metaverse or virtual reality and you're a chip company, you're at a disadvantage >> we would say ai and cloud is probably on the bigger side of the next ten years that said, look for other enablers and when you look at a match, you have every chip company in the world adding supply. adding capacity. nations trying to bring, source manufacturing. there's a huge tail wind for the semi group as well don't forget the ev trend. so there are three major meta trends that we'll see over the next ten years that drives the supply chain >> so you follow the chip area and also automotive technologies and i guess a big question that a lot of people have, they've been hearing you can't get cars because the carmakers can't get
chips. when does that chip shortage end for automakers and what will it mean for the chip companies? >> yeah, good question i think we have a long supply chain, you know, shortages and the constraint cycle there what we see here is some of those supply chains at times open up. so the supply chain benefitted from the type of supply, they've been backlog, spreading orders around, now you're starting to see the supply chain open up you've probably seen the biggest part of the world talk about that they don't see a supply -- on their end it's more a packaging issue. supply chain where thailand, philippines, malaysia have shutdowns with covid, but as that supply chain opens up, you'll see good supply toyota, gm, ford, all talk about
supply's improved, production is picking back up. so i think if you look at that supply chain, we are long that with the shortages, now that the shortage is alleviating, do you want to see what they can do because you have a headwind of supply coming on so i think a headwind now because of the report. look a little bit more shaky so you want to go into aiml >> thanks so much for joining us good to see you. >> thanks a lot. our next guest says nvidia is part of his portfolio because it could benefit from one of the three forces he sees dominating the market let's bring in our friend, jerry, president and chief investment officer with castle park management. jerry, it's always good to see you. welcome back >> good to see you, tyler. >> since we were just talking about nvidia, you likethem why? >> yeah, i mean, it's one thing to have a dominant market share
and have good business, but one that every day almost it seems has some new stair step in growth he didn't even mention the fact that facebook has doubled its cap spending all around things that gpus are so critical for. and the fact that nvidia's got a two or three-year lead over anybody in the space it's going to be a while before we understand how big this market is. right now, they own it >> and it's a company that's what, $800 billion in market capitalization let's talk a little bit about ford, another company that you like i think it was a choice of one of the members of our stock draft a few months ago i remember jim cramer being very positive on it this company has been going and going and going. yesterday, gm announced a partiership with evgo. ford is in that game why do you like ford >> real quick. this is a company the whole
industry considered at best a cyclical ten times earnings you know, the cycle comes and goes in this pandemic, the entire global economy paid ford and gm a great favorite by telling them they didn't have to promote anything they could run at much lower capacity and build cash on their balance sheet. the cash they built in these three years is going to fund all their transition into ev and i don't know about you, but as interesting as rivian is going to be, the f-150 is the most popular thing on wheels ever and they're going to have the electrified version of it and they have showrooms all over the country. i feel like the difference in valuation between ford and rivian and tesla is too great for us to sit here and quibble about. it's here. it's now >> it's also interesting that you say you think the valuation gap will be closed between some of the energy and value companies if you want to call it
that, and tech you don't hate tech. you have microsoft, mastercard and nvidia, but what do you mean in terms of the run we could see for diamond back and eog >> one of the transition problems in this next cycle is the fact that we've so cut back on the amount of oil and gas development sending we're doing that we're just going to need to price demand out meaning we're going to have to see oil over $100 a barrel before we can begin to touch the imbalances on the supply side. so that's going to lead a company like eog and diamond back, i mean, they're going to throw off 30% or more of their market cap in free cash over this next five years it's just so powerful. when you have a business that has that type of free cash generation, generally, you see it as share buybacks, dividends, and you have a great support for the stock throughout the entire phase. and so i think you're going to see a whole different view of
these kinds of energy producers that have low cost space and high cash flow and it will be another example, like ford, of an old cyclical business that gets upgrades, if you want, into a much better valuation profile. >> jerry, we've been doing this a long time. good to see you, my friend >> good to see you >> and coming up, an economic problem. worker pay is up, unemployment is low why do americans think the economy is pretty terrible plus, a ceo apologizes, but is it enough inside the controversy at mcdonald's and potential problem for shareholders stay with us shares of the ec
vehicle charging company, evgo, that's also the ticker, they're higher after the company announced expanded partnership of general motors and uber the deal with gm will see these companies working to install more than 3,000 fast charging stations across 52 markets through the year 2025 and the expanded deal with uber will bring more benefit and charging discounts for uber drivers that use a lot more of those electric vehicles to incentivize those drivers to ride electric by the way, tesla shares, they're near the session lows right now. down 10.5%, just as the hangover
continues from the big elon musk tweet over the weekend, asking the twitter verse about whether or not he should sell billions of dollars worth of stock. there's some questionsabout whether he had to anyway all of that weighing on tesla shares a steep drop over the last few days >> thank you very much a puzzle is emerging in the economy. by many measures, americans appear to be in a good financial position wages are rising they're sitting on more than $2 trillion in savings. balance sheets are better. labor market is desperate for workers. despite that, they're not very optimistic in a recent poll, 68% of respondents say they thought the economic conditions were getting worse. on top of that, the president's approval rating has dropped. our next guest says the answer lies in inflation. and the psychology of how people assess their economic well-being neil neil from "the new york times"
wrote about it in a new piece and joins us now good to have you with us >> thanks for having me. >> it's a fascinating topic. inflation is running as high as it has in decades, i guess you would say. people notice the prices when they drive by the gas stations why does inflation take such a large mind share economically? >> so you know, i think the way economists view it is inflation creates winners and losers and it can redistribute things in the economy that isn't necessarily much fun better for debtors, worse for creditors. your wages rise faster, your consumer prices rise faster. but i think to ordinary people, it's a visceral thing and very much a situation to where even if you have a pay raise, even if your wages are going up,■■ being reminded every day that everything you buy is more expensive, there's also shadow inflation of things that are harder to get. shortages that make customer
service less desirable things that remind you day in and day out of things that are more expensive just because you're making more on your paycheck or from government stimulus payments doesn't make up for that >> it's fascinating. we've used the word around here, scarcity economy labor is scarce. supplies are scarce. cars are scarce and so on and so forth. it seems to me also that while by virtually every measure, the economy is in better shape than it was in 2009, 2010 and so forth. people don't feel that way >> i was amazed looking at some of these numbers consumer sentiment numbers if you ask people how are economic conditions? very good, good, fair, poor? those numbers are more like early 2010's numbers you remember that economy of 2010, 2011 we were still near 10% unemployment then. household balance sheets were a wreck. it's really chrystal clear in
terms of the labor market, income, things are much better now than they were then, but in terms of sentiment on how are things, how are things going how's the economy doing, you get numbers more like then than in 2019 >> i don't mean to be insensitive here because obviously inflation affects certain people more than it affects other people in the economy. but inflation takes this big, inflation broadly speaking affects everybody. in other words, the prices of gas and beef and whatever. they go up for everyone. doesn't mean the effect in the household is the same. unemployment, we focus on a tremendous amount, doesn't affect every household it affects people who are unemployed, but if you are job secure, you don't worry about it that much. >> that's a great point and i would just add that we talk about wage trends in terms of averages or medians. everybody's an individual and an average. if you haven't had a raise this
year and the things you buy are up 5, 6%, that's a real cut to your well-being, your financial well-being so you know, something like 13% of people have no change in wages over the last year those people are worse off if you had to buy a car, say your car broke down, buy a used car, a person who needs to work, it's up 40% before the pandemic. if you didn't need a car this year, i haven't needed to buy a car, hasn't really affected me, but it will. >> oh, it affected me. i lost a car in irma or whatever it was let me, i want to read something that was in your column. a piece from robert schiller of yale writing back in 1997, the idea of inflation, he says, evokes quote, arbitrary injustice, arbitrary redistributions and social bitterness and quote, memories of quote social situations in which morale and a sense of cooperation were lost. we've got inflation in an
economy or a society where there is a tremendous amount of lack of consensus, lack of sense of cooperation, arbitrary injustice, and social bitterness i just note that these things are happening at the same time there is a societal thing here people are angry they just don't like the way it is they didn't like it under trump. they don't like it under biden they're angry. they're finding anger in every corner and now, inflation compounds it >> i think that's exactly right. that's what's i think people in the kind of economic policy world which is kind of the world i inhabit, didn't really think through quite well enough. inflation like we're seeing, it's only for a year or two, not the biggest deal in the world. if you look at it from econ 101, how does that affect different groups, if you're already really
angry at the situation, you think that life's unfair, you think the government's corrupt, you think things are kind of random and not treating you fairly, that can really stoke some outrage in ways that is really showing up in the polling data right now >> it's a fascinating conversation we're happy you were able to join us to talk about it i'm not angry. it's all good. thanks a lot, man. read the column in "the new york times. >> everyone's been talking about it come up, it's not the first time the ceo of mcdonald's has come under fire. this time for text messages. is his apology enough? plusou, r trading nation team is taking on the ev stocks and we'll share some names that could power up your portfolio. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
reuters citing sources in ottawa and mexico city say it's likely to happen next week. the first north american summit since before trump took office 30 minutes augugo in wiscon, they finished calling witnesses in the murder trial of kyle rittenhouse. defense lawyers have said that rittenhouse will testify in his own defense. and a nashville church on sunday, a video camera captured a man who stepped to the front of the service and waved a gun the church's pastor tackled him from behind, holding the man down until police arrived. and in florida, video showing officers coming to the rescue of a woman trapped inside her car. it was sinking into a canal swollen by a heavy downpour. after smacking the windows, they were able to bringthe woman safely to dry land quite a few couple of videos,
kelly. >> courageous news update. thank you very much. now it's not that often that the ceo of a major company apologizes, but that's what the head of mcdonald's did after some texts between him and the mayor of chicago >> he apologized several times after the texts he sent to chicago's mayor came to light. the ceo said parents of two children who were shot and killed in the city had quote, failed those kids. now, this sparked protests at the company's headquarters over the last week and a letter from several groups including color of change that said in part, quote, your text message was i guess ignorant, racist and unacceptable a company that spends big money to market with community of color. in messages, he said quote, my texts to the mayor were wrong.
i am truly sorry i know this is conflicted with our values values that you have all worked so hard to embody across the business he said he has a quote, narrow world view and his comments revealed his ignorance, something he is accountable to change it remains to be seen how the apologies are being received >> how is it being received by franchisees? >> some didn't believe the apology. now franchise owners in mcdonald's corporate have butted heads over the last year regarding operational issues, business though is very strong across the system. mcdonald's declined to comment, however a person familiar said he held a number of small listening sessions where he also apologized >> thank you shares down about a percent today. ahead on "power lunch," decked out
shares of trex hitting an all-time high. we'll speak with the ceo in a first on cnbc interview ahead. plus, it's an increasingly common way to buy crypto currencies like bitcoin. head to an atm, give them your phone number, insert cash and in a few minutes, the virtual currency heads to a wallet but who's really getting the funds? cnbc investigation, coming up.
trading day. stocks are lower, bond yields are falling, too oil is up and so is one stay at home stock that's managing to stay hot let's begin with bob pisani with more on this rare down day what's going on? >> it's about time eight up days and the markets are really overbought at this point. so we're due for a pause we've got some large sectors like industrials and banks that have been on the weak side not dramatically let me show you the semiconductors first we had new highs on many, many semiconductors in the last few days modest weakness.
amd has gone par bolick in the last few days. energy stocks, the whole energy complex is starting to run out of steam after a big move up and for a big part of the third quarter, these stocks have been largely sideways recently. apache was at a new high these are modest declines. how about the big cyclical names, industrial names? all doing a little bit better in the last few days. down about 2%. housing has been on a tear lenar beat expectations and yes, they're going to have these shortages out there. tough time delivering some products occasionally, but the market is seeing through that now and housing is having a good day. where's the markets right now? number one fact about the stock market is it's extremely overbought for days and days, the market's been up.
it just doesn't happen that way. we're due for a pullback supply chain woes seem to be easing jpmorgan said they think a lot of these problems will be resolved within the next quarter or so. profit margins, which was under some pressure, are remaining near records because companies are able to raise profits. still going up, just not as fast as they were in the first, second and third quarters. at the end of october, i said it's unusual for october to be so strong. there were concerns it might be pulled forward with the gains in november and december. so far, nothing like that. november has been on a tear. this is the only down day we've seen >> great point thank you. now over to the bond market where rick santelli is tracking dropping bond yields, the flattening yield curve and soaring prices for 30-year inflation protection >> absolutely. the 30-year tip is at the lowest yield negative i should say
since its inception. let's go to the white board, shall we we had october read on producer prices this is what we expected everything year-over-year was higher than expectation and had historic levels, so this notion that everything was as expected, let's go to the intraday chart at 8:30 when this data came out, yields dropped probably dropped because many traders looking for the hotter numbers didn't see the movement they wanted. they're very nimble. then auction time at 1:00 eastern, we see yields go up in terms of the yield curve, i'm concentrating on 30s minus 5s here it's trading at a 20-month flat. under 75 basis points and finally, the big chart, again, we use this so many times over the last several years july of '12, '16 139, 137 we have not settled under 145.
hovering around 1.43% and 1.45 is important, but ultimately, these two levels are your break or support levels under the market still think we close at 1.66% on the last trading day of 2021 back to you. >> willing to make bulls bet let's check in on oil closing for the day. pippa has the latest >> oil's bucking the broader market trying to post its third straight day of gains. prices jumped after the energy administration released its outlook today. now usually, this is only looke at by people in the industry, but today's report was important because the biden administration was watching its forecast while considering whether to tap the strategic petroleum reserve. the report said that while demand will outstrip supply through the end of the year, oil stocks will begin building in 2022 this means a pullback in oil
prices, they said, which means lower prices at the pump for consumers, which the administration has been watching closely. let's get a check on prices. wti is up to $84.21. brent crude at $84.80. take a look at nat gas down 8.5% today. breaking below five bucks. back to you. >> thank you very much now to where yoone of the ht stocks of the day. trex the company reporting strong results for the third quarter including a 45% jump in revenue. shares are at an all-time high of 14% today brian, welcome, it's great to have you here. why do you think demand remains so strong as we have seen other companies face a bit of a hangover in terms of demand during the pandemic? >> good afternoon, kelly and tyler. we kcontinue to see fairly stron revenue growth and people are excited about the opportunity to
fill their outdoor living environment and trex with the leading market share of about 50% of the composite marketplace continues to resonate with those consumers. >> so basically, what you're saying is the huge surge in people buying homes is now paying off in terms of generating kind of the halo effects of continued demand. how long do you think that's going to last? >> we have seen some benefit from the surge in new home building but more important than that is our ability to go after the 40 to 50 million existing wood decks. those decks will last between ten and 15 years we can provide those consumers a long plus product that they can put on their deck for a very affordable amount and also give them a product that has great credentials. it's manufactured with 95% recycled content >> you anticipated my question,
brian. i have just had some work done on my deck it was minor but i will tell you that that when i have to replace it, i will use a composite material. i don't want to say it could be yours or not, you're from winchester, virginia, we're from virginia you have friends here. i wanted to ask about the green footprint of what you do because it is a composite material i assume it's a resin, uses petroleum-based products, i don't know, but talk to me about the green footprint of trex. >> sure, the mix of our product is approximately 50% wood, 50% recycled plastic our wood comes from reclaimed wood sources so cut offs from cabinets and flooring manufacturers and other areas. and from a plastics perspective, we forge recycled plastic from all over the country and up into canada we'll bring those truckloads into our two facilities, one in
virginia and the other in nevada in some cases, do some light processing on that in other cases, be able to run that directly into our manufacturing line we're very proud of that green capability >> how does that enable you to deal with supply chain pressures, inflationary pressures and do you see any signs like we've started to hear from some that those could ease by the first part of next year >> we have seen inflationary pressures come through we saw significant inflation in the third quarter. we've been able to off set that with price consumers have accepted the price. we are starting to see inven inventories build in the channel. during the third quarter, our retailers built inventory closest to the consumer and during the third quarter, we expect to build more inventory within the deistribution channe and get back to a more normal environment in 2022. >> so you think 2022 could be a
pretty normal supply chain here for you. >> i think the supply chain will improve significantly. as the year progresses, i expect we'll see more normalization >> all right brian, thanks for your time today. of winchester, virginia. >> yeah. great apples from up there in winchester as easy as taking cash out of the atm cash with these atms, you get crypto currency like bitcoin they are known as crypto atms and they are popping up all over the country. there's one at a ltlite duncan donuts store i used to patronize. why are they on law enforcement's radar? we've got a cnbc investigation coming up.
same for ethereum. today, andrew ross sorkin about tim cook about his crypto holdings >> do you own bitcoin, ethereum? >> i do. i think it's reasonable to own it as part of a diversified portfolio and i'm not giving anybody any advice, by the way >> cook also said he doesn't think apple should hold crypto with its cash reserves and he said apple isn't planning to accept crypto as a payment the fbi is warning about fraudulent schemes targeting crypto currency atms criminals are directing victims to use the atms and send funds for illegal activity they accept cash in exchange for bitcoin and other crypto currencies for months, cnbc has been investigating this here's eamon javers with the story.
>> welcome to the city of miami, bitcoin, 2021. >> here at the country's largest bitcoin conference in miami, nearly everyone is talking about cashing in on the crypto craze >> we're the first bitcoin atm company to push education. you can do that in one transaction. >> any wallet you'd like to use to store your crypto currency. >> and crypto atm companies who make theirmoney by charging a premium on each transaction are a growing part of the industry with more than 26,000 kiosks around the country, these machines are a huge convenience and also they can be a huge target for fraud how easy is it for criminals to exploit these machines >> seems like it's very simple >> lisa is council for the new jersey state commission of investigation, which looked into bitcoin atms, finding many operating with virtually no oversight even though their owners must register with the u.s. treasuries financial crimes enforcement network. >> there's no id collected no photo taken
no address zpl and that opens the doors to criminals. >> yes >> what do they do with it >> money laundering, dark web, fraud, scams >> the report discovered more than $70 million deposited for crypto currency purchases from 2015 and 2020. many allowed customers to buy up to $900 with only a cell phone number or no information at all. is that a bad idea >> yes it could be any name and your cell phone number could come back to anybody. >> which is handy for drug traffickers and money launderers, who the dea said they're using to aid in the movement we wanted to see how easy it was to buy bitcoin with just a phone number so a cnbc producer tested it out at this machine in a new jersey convenience store after getting this text warning about a scam, it only took a few minutes to complete the
transaction. the spokesperson if for the company said they take it very seriously and will only allow transactions with just a cell phone number if they can verify. if not, the machine will ask for an id. mark green is trying to clean up the crypto atm industry. >> customers would not believe that they want to be victims and they would state i'm going to go to other bitcoin companies who never ask me any questions and let me purchase how much i want. >> they launched a compliance cooperative. one study found nearly 75% of all the illicit funds leaving atms wound up at fraud shops, which are sites on the dark web that sell stolen credit card information. to buy crypto, digital mint provides customers to provide a digital id, plus a phone number. one of their competitors is coin
flip, also based in chicago. the company allows someone to purchase up to $900 with just a name and phone number. higher amounts require more identification is that safe >> it's 100% safe. if you're sending bitcoin to someone you don't know, you have the same problem >> coin flip wants to offer its services to a wide range of customers. >> we want everyone to be able to buy $50, $100, $200 of bitcoin regardless of their immigration status and regardless if they have an id. everybody who wants access deserves access. >> we know how the system works. we've been doing this for six years. we know how to keep people safe. >> new jersey now has pending legislation that would require all crypto atm operators to get a license in the state but around the country, regulation varies widely with some states requiring a license while others have no oversight of this fast growing industry as
all. >> thank you very much we have some breaking news on pfizer. let's get out to meg what's happening, meg? >> hey, kelly. pfizer filing to amend its emergency use authorization for its booster doses to include all adults over the age of 18. this is something we had been expecting because it was reported yesterday morning by "the washington post," today by "the new york times," we also had confirmed it ourselves so this would essentially broaden this to not just those people over 65 and those in high risk groups, but everybody over 18 this is based on new data that pfizer compiled showing that they can prevent covid cases 96% efficacy just compared to people who only got two doses alone this is also on top of increasing evidence of the waning efficacy of just two doses of these vaccines from israel and other places. so we had been expecting this. this had been a battle within the fda and cdc, which wanted to
narrow that. the administration and dr. fauci have been signaling it makes sense to broaden this. so pfizer down about 1.5%. we also expect that moderna is likely to file its emergency use authorization for boosters that's from a source familiar. we don't know the timing just yet. back to you. >> thank you very much shares of ford slightly lower now after topping $20 for the first time in 20 years. our traders share their best ev plays. stay with us
welcome back to "power lunch. buckle in because there's a lot of news in the ev space today. riveon set to price tonight. luminar developing technology and gm and evgo teaming up finally ford which is making big inroads in the space closing above $20 a share for the first time in two decades. let's break it down with the team todd gordon and gina
sanchez. welcome to both of you let me begin with you, gina. what's your favorite choice in this area and why? >> we actually like volkswagen it is more cheaply priced and still has some very aggressive targets in terms of how much of its auto sales will be fully ev by 2025. >> okay. by 2025. they own among other brands porsche and audi pushing hard into the ev area. >> absolutely. both solids brands which are macking continued headway. >> todd, earlier in this hour i believe jerry singled out ford you like it, too >> we do we do. we hold it in the growth portfolio. they're making a big run outpacing gm for two reasons making inroads in the ev space
competing with tesla and working down the long term debt. the market cap is $78 billion. still riveon pricing at $65 billion and got 7 billion in the f-150 electric vehicle plant twin battery plants supposedly the largest in the u.s they have a bunch of reservations for the f-150 and the ford bronco to compete with the riveon real quick about the long term debt they worked off about 20% of it. and they're going to push it to the environmental projects ev portfolio help them work off the junk rated debt. >> it is interesting both picking longtime storied stalwarts and not the fashionable name just ford, a vote for vw. thank you very much.
i don't want anyone to read into this. pregnancy tests prices are on the rise there's a potential stock play, dom? >> so traders and investors are always looking for an edge looking for a tea leaf an early sign that things are going to possibly trend one way or the other they have found it in the pregnancy tests because the analysts note the uptick if the sale of the tests. according to data from nielsen the test sales grew by 13% year over year since june of 2020 the average year or year growth rate of tests closer to 2%
between the years 2016 to 2019 pre-covid pandemic so if we're on the cut up maybe of a baby boom that's fueled by millennials by the way that could mean a consumer spending tail wind on diapers, strollers, baby food. and that may mean benefits for target, costco, walmart and others those are among the stocks they like including grocers, albertson's, kroger, dollar general, bj's wholesale. looking for evidence that the recovery is track that same note estimates that live births in june increase by 3.3%, the highest level back to 2013. >> is it just catch up we had the worst year on year drop ever in 2020. how much is new and how much is filling in >> the idea is to work off a low base back to 2020.
we are talking about over a year's worth of incremental data coming out that could be a big deal by the way, millennials, the biggest generation in the country. >> if diapers are over $50 a box it's over. >> look for the sales at costco. >> you have been to costco kelly alone can raise costco. >> the two of you together. >> thanks for watching "power lunch" why "closing bell" starts right now. >> i'm wilfred frost at the new york stock exchange. major averages pulling back today. the s&p 500 in danger of breaking an eight-day win streak we head into the final hour of trading. we had decleans. >> for the first time. >> in nine days. >> welcome i'm sara eisen let's look at what's driving the action right now financials among the weakest sectors. the