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tv   Closing Bell  CNBC  November 16, 2021 3:00pm-5:00pm EST

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because they have great following. >> you have the following. i go on the peloton wthey're bi players on instagram and promote products, food and beauty products thank you. >> you are selling yourself short. you have the og influencer you are on tv before social media existed. >> that's right. cable before cable was cool. thanks for watching. "closing bell" now. welcome to "closing bell." i'm wilfred frost at the new york stock exchange. the consumer in focus today as strong retail sales boost sentiment. major averages higher heading into the final hour of trade i'm morgan brennan in for sara eisen. retail sales rose 1.7% in october topping estimates. home depot and walmart topped estimates before the bell on the
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back of the results and walmart is pulling back. crypto assets are under pressure today with bitcoin dipping below $60,000. we have 59 minutes left to go in the session. >> coming up today, checking in on chipotle. talking to the ceo brian niccol on inflation and supporting farmers. imax had the best october in company history. we'll speak with the ceo rich gelfond about a deal with disney. >> let's focus on the big story just mike santoli is tracking the action and joining us with the outlook is howard marx mike, start us off what are you focusing on today >> quiet strength. we are challenging the old highs in line to set a new closing high the intraday high for the s&p 500 a week ago friday at this
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point. 4718 basically right in that zone it is a little bit of a top heavy rally. you have tesla, microsoft, home depot doing a lot of the work. the average stock is middling. that doesn't really negate what is going on. quiet kind of uneventful strength is okay this wasn't much of a scoop lower. we are not blasting through. sometimes you have to pull the slingshot back for the rally after that but so far hard to find fault the bellwethers of the economy looking good looking at home builders compared to autos it is difficult to paint a real story about the economy when both near highs. this is a global auto etf and tesla is almost 10% which accounts for that recent pullback but gm, diamler, toyota big components and shows you the big ticket stuff home builders extremely strong
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let's not fight too hard in terms of the more racy pockets of the market, the more speck lative areas or ones buzzy for a while, lucent is a darling blasting to hundred billion dollars. rivian surpassed that. roblox has found much of a lift. you had the early year favorites. hitting new lows right now so it is not as if everything that is a buzzy app attacking a huge market is working it is a rolling process. the party goes to the next location. >> it is amazing s&p up 25% having these conversations and debates about inflation. getting the hot, hot readings. but then the morning doug
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mcmillan saying we potentially picked up the customers with inflation and in general not seeing those buying habits being affected by worries of prices in the stores is the inflation debate sort of here and gone at least from a market perspective for now >> i wouldn't say it's gone or made up but there's a good chance that we have just pulled forward a lot of that concern and doesn't necessarily yet seem to be altering in behavior good retail sales number today is capturing inflation the prices are in. it is not the entire story because i do think you have people in terms of unit growth out there and spending what they need to spend. >> thank you. oak tree capital announcing the closure of the opportunities fund today with $16 billion in total capital xhimtds. it marks the largest fund in history.
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let's bring in howard marx joining us thank you for joining us. >> nice to see you. >> i wanted to start on that fund raise you just completed for the fund 11. $16 billion. how surprised were you to hit that number? is capital just still you be believably readily available >> yes we set a target a year and a half ago of $15 billion and as you can see we came in slightly above that so it's pleasant. i wouldn't say it's a big surprise but in answer to the question, i think that the bottom line is that most people believe, most especially institutional investors, believe they cannot achieve the targets with just traditional stocks and bonds and turned to the alternative investment sector and our type of fund is a mainstay there and of course we have been doing this investing
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for, well, over 40 years and so we got our share. >> does your sort of distressed investing have any form of correlation? do you expect it to have a form of correlation with rates as and when rates do rise, or is it uncore lated in that regard? >> i think it could make it harder for companies to service the debt but then of course the debt they've taken on will roll off and i don't think it's an implosion at any one time but certainly this has been a terrific period for debtors. >> it is morgan. i have been reading the report that you put out in conjunction with this news today oaktree's insights piece of global opportunity knocks. you talk about investing in good companies with balance sheets but the landscape for investing
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over 40 years changed dramatically as we have seen rates continue to stay low, the ballooning of the fed's balance street and the default environment become quote more benign where are you seeing the opportunities? >> our funds have evolved continuously since we formed the first one back in 1988 we do a lot of different things today that we didn't do back then you have to evolve to keep up with the market. today we are opportunistically making large amounts of money available to people who need it, who may not have access to the public markets for one reason or another and they're not necessarily distressed they might have a need and sometimes a pressing need butw don't consider it distressed
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investing. it is typically the purchase of outstanding debt less than 70 or 80% of face. these are face loans we are making new but we think good security and high prospective rates of return. >> is chinese property a distressed opportunity right now or something to avoid? >> i hesitate to generalize in answer to questions like yours because there is no such thing as a good or bad idea. other than based on price. and if you can make loans to the property sector with good security and high rates of return then we definitely think it's worth considering >> and so you are active in that space in the moment?
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>> i'll never say what we're active in at the moment but it is on our radar screen. >> when you talk about where you see the opportunities and makes me think of the energy sector where we have high natural gas and oil prices but just about anybody you speak to within the industry tells you that there's not enough capital flowing and not enough future investment made for whatever reasons. climate change concerns from investors, et cetera is that where you see opportunities even if it's not distressed >> yes anything where for one reason or another they can't partake in the large ask of wall street and the capital markets is something that we'd be interested in oil and gas will be with us for a long time. at the same time we want to back
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companys that are actors or companies where we can make them better so yes there are lots of people for whom oil and gas is in the no fly zone just because they belong to a list we believe in looking deeper at the quality of the companies and their behavior. >> thinking more broadly about valuations and a lot of your recent notes you have said it's hard to be too critical when rates are so low even when rates rise, is it possible that over the next 30 years we'll just see higher average multiples on the major indices compared to the past 30 years because of the enormous amount of money printing and the greater interest that people have in stocks today and then therefore greater demand for them >> look.
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i'm not much of a crystal ball gazer. certainly the things you describe are possible. i think that you talk about 30 years. look if there's an increase in rates from today's zero on the fed funds rate to let's say four or five which seems like a pipe dream today i think that spread over 30 years the impact of that will not be too negative and returns will be good valuations can go up if historic average is stable. the pe ratio at 16 postworld war ii and a little bit above that today in the 21 region but i as you say i think the current valuations are reasonable and explained on the basis of current interest rates i think if inflation sticks around for a while interest rates will go up but we don't invest on the basis
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of what we think rates will do or the market with e do. we make loans to companies that we think will be repaid and will provide us a very good rate of return and our security or our future doesn't come from the market or the other investors. it comes from the companies we invest in. >> it is a key point you are making i'm curious whether you think inflation is wuss for sometime and what the messaging from the bond market is right now it seems very mixed. >> morgan, first of all, i don't know anything about inflation that you don't know. and you know, it's very easy today to say, well, i don't think it's going to go back to under 2 and i don't think it stays at 6 which it was for the last month i think it will level out around 3, 4
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and you know, it is an easy thing to say because it's mid range. and most people probably believe that now you say what is the market saying if it is going to level out at 3 to 4 and the 10-year treasury pays 1.5 that means the people that buy the treasury at 1.5% yield are signing up for a 3-point negative return every year in real terms so the one hand they don't believe that the inflation will stick around or maybe the price and yield of the treasury are being controlled by the fed. and not by investors in the market investors may think they have the power to control the pricing of bonds today but maybe they don't and one -- the fed is going to cut back on the bond buying it's already announced that. one of these days we see where yields settle out when the fed
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is not controlling the market. >> one of these days meantime, probably brings us full circle on the conversation. as you have closed the opportunities fund 11. thank you for joining us we appreciate it. >> always a pleasure, morgan and wilfred. >> and having this conversation where call pers is the pension fund making announcements. activision under pressure. an article claim that is the ceo knew about sexual misconduct allegations at the company for years. we'll speak with a reporter who broke that story, next you are watching "closing bell" on cnbc.
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were acted upon and the board remains confident that bobby kotick appropriately addressed workplace issues brought to his attention. joining is one of the "wall street journal" reporters that broke the story. i think maybe just to start what your extensive reporting found and why it seems to be so potentially damning for the ceo of this company that's been under fire for a number of months now. >> thank you so much for having me what we're revealing is bobby kotick's role in this mess activision is under investigation for the culture of harassment toward women. we show today that he was involved over the years, knew of many allegations including alleged rapes at a studio.
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has intervened in a story to keep an executive accused of sexual conduct at the company and had his own behavior issues over the years and what we show in the story. >> in terms of the evidence pointing to that, has this company done its own internal or hired an external firm for example to do a review of everything that you have found >> not that we are aware of and not aware that the board conducted its own internal investigation to our knowledge, no. >> from reading the article it seems that one of the key parts of the accusations is not notifying the board when he is aware of accusations of harassment in the company. i wonder your view of the
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statement from the company from the board in particular that we read out including the line the board remains confident that bobby kotick's appropriately addressed issues brought to his attention. >> i can tell you that the extensive reporting and internal documents shows that directors were pretty blindsided by thealizations when the stat of california sued. they felt like they should have been told sooner or at the time. going back years he was aware of the allegations and didn't let them know. i can't speak for what the board is going to do now but this is a company under crisis one of the regulatory probes is an extensive s.e.c. investigation that we broke the news of in september and as part of that they're looking specifically what bobby kotick
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told the board and vinvestors. >> yeah. to the point about a company in crisis, the stock reflecting that, down 28% year to date. when the company issued its response to the article earlier today, a thing it went to great things to say is that they have been made improvements and then outlined the ways that they're trying to change the workplace environment. in the reporting have you found that that is actually the case and what is happening at this case right now >> i have personally not found that and i would just say a couple of those initiatives including bobby's massive pay cut and the zero tolerance policy were announced after we came to them with extensive questions and i would just say also that a very high level
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female executives brought in to try to fix things up wanted to resign after only a month saying that she didn't have faith in the culture in the company and leaving at the end of the year. >> thank you for joining us. >> thank you for having me. we'll talk to chipotle ceo about the stock's big run this year and navigating supply chain demands and ceo of porsche will talk about demand in the luruxy ev market. we're back in a couple and ta. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.
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up next, hitting the road with the ceo of porsche. we'll talk about demand for the luxury ev and how the company plans to compete with the newcomers in the space as we head to break a check on bonds. yields near the high end of the range. the 10-year yield around 1.63. and the 30-year holding above
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2%
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welcome back time for a cnbc news update with rahel solomon. >> here's what's happening at this hour. federal regulators say that they'll take no action following the probe into a deadly tesla crash last year in california. investigators found that the autopilot system was engaged but the driver was also pressing the
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accelerator. possible trouble for the men's basketball team at duk university a player has been arrested for driving under the influence, also the grandson of legendary team coach mike krzyzewski he is a top prospect for the draft next year and some say he could be the number one pick overall. nike is delaying the launch of a sneaker collaboration with travis scott saying out of respect for the victims of the crowd surge. and michelle wu boston mayor the first woman and person of color elected to the top post. morgan, also a millennial and the first mother elected to the role good to see. >> there you go. thank you. the demand for evs is
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heating up take porsche the company reporting sales for the all electric or the sha outpacing the automaker 911 model and the ceo joining us now from the l.a. auto show and phil lebeau joins us. >> bring in oliver bloom of the porsche joining us from los angeles. you heard morgan talking there about the success of the tycon raising the question you see as much success as you see can you advance or speed up the plans for future electric vehicles given the demand out there for an electric sports performance coupe? >> yeah. hello and first of all it is a great pleasure to be back again in los angeles and coming to your question the tycon is a
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very milestone for the electrification strategy our goal to sell more than 50% lektd cars by 2025 and more than 80% by 2030. we are running faster than we expected and that depended of the big success of the taycan. in europe in this year we already sell over 40% electrified cars. >> so you've had success there what about electric maycan or cayenne? you said that's further in the decade can you bring them along quicker? >> we are in the middle of transition period and therefore our product strategy is flexible we are going for combustion engines, hybrid and full electric engines and so, we have a very clear plan for the future. the next will be a fully
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electrified and then a lot more to come in the electric area for the combustion engines we are looking more for sustainable and synthetic fuels to be able to continue the 911 with the combustion engine. >> i don't know if you've seen the news today but rivian, the start-up, rivian's market cap surpasses the market cap for your parent company volkswagen i won't ask you to comment whether they deserve that but when you see the incredible ap t tight and surging market cap for anything ev related what are your thoughts? >> yeah. we are often asked about an ipo at porsche that's not under our responsibility it has to be decided by our
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mother company volkswagen. what we can say is that porsche is well prepared we have a very robust business model. when you look to last year, after corona pandemic porsche is a successful auto car maker talking about sales and profit and operating results. so beside of this we are a technology company like charging and synthetic fuels. we have core competencies and battery cells and systems and then the software ecosystem we are building and beside of this clear sustainable story being net carbon neutral by 2030 and so, porsche is prepared but it is not up to us it has to be decided by
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volkswagen and therefore nothing is decided up to now and all about potential speculations >> oliver, i miss being out there in los angeles with you. perhaps next year at the l.a. auto show. the ceo of porsche joining us from los angeles back to you. it is remarkable looking at what's happening with the rivian market cap continuing to move higher and they have blown past volkswagen in terms of market cap and continue moving up the chart. >> absolutely. phil and oliver, thank you fascinating to see if porsche spinoff happens because of evs and the success in the past. thank you. straight ahead imax shifts to streaming and a deal with disney to bring the experience to the home. to the home. that's next on "closing bell."t.
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welcome back we have a news alert on the fed chair nomination president biden responding to a question about when he will make that announcement and responded, quote, in about four days. so i guess we'll warm and figure out when four days is, the end of the work week or the week, wilf >> it's very specific guidance which you would of course not expect from the fed itself and counting the days down as you say. imax is coming to your home. the company launching imax enhanced with disney to stream 13 marvel magazines and ceo richard gelfond joins us to
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discuss this great to see you thanks for joining us. >> nice to see you. >> the obvious first question, forgive me for asking it, what difference does this make? do you have to have a home cinema screen at home to make a difference >> no. we invented the technology which is called imax enhance for a large screen television. and as you would expect the larger the screen the bigger the difference but it creates the image and the imax aspect ratio so there's no black bars not an envelope. fills the full screen and since announcing it i'm pleasantly surprised by the marvel fans and those writing what a difference it makes. >> i guess it is also fair to ask the follow-up which is you more than the peers in movie
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theater business argued that your types of movies and experience will always draw people to the theater as opposed to watching at home so to what level does this cannibalize demand for the core product? >> yeah. i don't think to any level it does i think the fact you get a unique experience in an imax theater, unrivaled in the world. the box office numbers have been really great why better than pre-pandemic october was 50% better than the best october ever but i think the movies have a life after the theater and fans and the film milwaukeers said, gee, all that work with the special cameras and aspect ratio, how can we make that flow through we are trying to address that demand and as i said i think successfully there's positive reactions to
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it. >> it is morgan. streaming is where everybody in media has to be in a form or fashion but it is a tough nut to crack coming with profitability. what does this partnership entail is it a marketing situation? >> we have agreed not to disclose the financial details at this time but over time remember it is not exclusive so this is a big launch for imax in the streaming world meaning that the potential is broader than this one agreement for this size and the model over time is similar to the theatrical model with a license fee from the streaming service as well as a license fee from the consumer electronic manufacturer. on the ce side we are already on four of the seven largest ce manufacturers so the thought of 150 million homes with disney,
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high prestige, streamer, great reputation and filmmakers, the eyeballs seeing the imax and brand come up is great for us and disney and financially. >> sounds like maybe more partnerships like this could be in your future i know you posted strong numbers for october as folks go back to theaters what are you seeing and expect for the holiday season >> i was surprised by how robust the box office was in september and october between now and the end of the year. we have "ghostbusters" this weekend. rereleasing "dune" and "spiderman" and "matrix" and then into 2022 i won't go through all of it but "top gun,"
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mission: impossible" and given people want to see things in a premium way especially oi imax i'm optimistic going forward. >> the headline about the best october ever certainly grabbed me and i guess to follow up on that i wondered to what extent it's been driven by pricing than volumes and also what -- how the performance is relative to the previous record in 2013 on a revenue per screen basis because you have more screens now. >> i don't know the answer to the last question but i'll tell you we didn't just squeak by the record the previous record is 84 million and this record 118 million. so it's almost 50% more.
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always hard apples to apples with the length of the movie and how many movies but the magnitude of the beat says it all. i do think that going forwardnow a movie by movie basis than it is are we safe to go out with i think with things on the iphone and in terms of getting into theaters and masks i think people are comfortable going to theaters now. i'm not sure we'll beat every month by 50% i'm sure we won't but the trends are promising. >> just finally, i was wondering the thoughts toward china banning and whether that's a threat to the business model and sales in the region ahead if they continue to take that sort of approach. >> i think 2021 was kind of a funky year it was the 100th anniversary of
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the founding of the party in china. china also had a backlog of its own films and trying for kind of its own economic reasons to limit the number of foreign films. piracy as you know because of the day and date streaming model is a big problem certainly what happened with some other movies is political implications and naive not to think that but that's only a small part so if that continues that may affect one or two movies a year and not part of the bigger picture so i don't really think that's a meaningful issue going forward. >> thank you for joining us. >> thank you very much. coming up, walmart turns in a strong quarter and one a wall street firm downgrades robinhood. those stories and more coming up
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action mike santoli is here and today we have investment partner senior managing director joe taranova with us for a record close on the s&p and sort of pullback we saw last week very much in the rear-view mirror quickly. >> a wobble. we are just kind of toying around this level. 4700 didn't get escape velocity i don't think that's a concern you can complain about how this is a narrow boost today but overall credits very solid yields calmed down and we have a little bit of upward drift has taken the pressure off. >> joe, with the s&p at 4700 and nearing a record close >> yeah. i think you can define the market environment as a tranquil
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come 20-plus days out a 1% move either directions for s&p 500 and predicated on optimism, surrounding the economy, surrounding the consumers' ability to spend in the face of rising inflation and corporate behaviors. we have corporate buybacks approaching the 2018 all-time and will exceed that before the end of the year. >> two big retail names with earnings before the bell today home depot with a beat that stock rallying on the strong numbers higher by nearly 6%. leading the dow higher different story for walmart in the opposite direction despite strong results beat on the top and bottom line. raised its full-year guidance and yet shares are trading down 2% a year to date chart of walmart
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looks like a roller coaster ride and now under pressure again today. why? >> i think because the business strategy for walmart is to think about the customer first and they have an unwillingness to pass through the price increases to the customer. you will see a contraction in gross margins. that's what occurred in this earnings report. inventory levels are healthy up 11% so that bodes well for the upcoming holiday season but for walmart it is a wait and see story. your better option is costco walmart is a skconsumer staple. the comp is costco at an all-time high. they're passing through costs to the customer and coming back and paying it so the lack of
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contraction in margins. >> mike home depot capturing the imagination. >> right it is in the right place for so different things and a play on rising home values healthy consumer credit. a big buyer of their own stock i think with walmart little too much of the beat is grocery. as much as joe wants to talk about the sectors i think walmart got to a wide premium over target versus the history and rectified here. >> talking about the inventory for the holiday season and might serve it well. pfizer applying for emergency use authorization for the covid pill meg? >> pfizer just submitting that application today. this is the pill that showed 89% efficacy to reduce the risk of people who are at high risk of severe covid being hospitalized
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or dying from the disease if treated within three days. coming as merck is in the process with the pill at the fda, expected to have a meeting november 30th. this focus on covid and the pace of development i spoke to the ceo of the impact of the paradigm of drug development. >> i think now it is an imperative to take the lessons and apply them to other important therapies, no reason why we should be going back to requiring eight to ten years for the development of the next cancer medicine. patients are waiting. >> there's hope that across the industry and therapeutic areas the lessons of collaboration and what changed in the regulatory process applied to different diseases back to you. >> a fascinating conversation and speaks to the new era of
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medicine and health care that we have heard so many experts speak to meg, thank you shares of robinhood sinking after a downgrade at atlantic equities to neutral this morning. the firm said guidance indicates that the growth dramatically lower than original exec tass and says robd's switched focus to cryptocurrency will increase volatility moving forward and robinhood down nearly 20% in fact last 2 months and down today, mike. it does speak to not only the relationship between robinhood and cryptocurrencies trading and what we have seen -- how we see that play out but also potentially the fact that there's more and more competition for trading platforms in general. >> for sure. sign-ups were down in the third quarter quarter. the stock is down 3% based on
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the results of 3 weeks ago not a revelation or an analysis. the stock is for sale. 60% off the highs. gave it too much credit and in a malaise period right now it is a good business, a good brand brand. it got overcapitalized at the first stages of being a public company. >> just, just in record close territory if the s&p. >> yeah. not necessarily making it easy and if you look internally it is a mixed picture than at the index level. volume is in the negative side as it is right now about 6 to 1. some pretty decent bellwether things i look at mid caps at a little bit of best worlds the russell's given back the
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recent gains and the mid caps are outperforming. volatility index has come in seems too rich given the market at all-time highs. 15 was the recent low on the pullback and seems to erode lower but maybe people are on alert for something coming out of the blue looking for the possible selloff. >> we are now not quite in record close territory with the s&p 500 and close. a point or two either just below or above that recent closing high and the nasdaq also is in that record close territory is now not and doesn't look likely to reach it only .1% higher on the dow
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real estate, consumer staples, communication services are the worst performing sectors quite a split set of performance. as the bell goes the dollar is higher we are up 0.4% on the s&p 500. but not quite at record closing territory. just a point or so away. welcome to "closing bell." i'm morgan brennan in for sara eisen with wilfred frost and mike santoli coming up on the show, chipotle ceo to weigh in on consumer trends and if inflation concerns put pressure on customer spending joe is still with us as we do see these major averages settle and the s&p 500 at 4701. so hovering right near that
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record close joe, coming into this you talked about the markets being tranquil but when you look out into the final weeks of 2021, is the trend really a grind higher here >> i think the trend is a grind higher unless we get some contention from washington, d.c. regarding the debt ceiling what's curious about the tape today is over the last couple days the s&p grinded higher as we're seeing the 10-year treasury yield continue to move higher so that correlation previously was going to see yields move higher see the breakdown in technology and longer duration assets we are not seeing that and bodes well in the coming weeks if the treasury yield continues the march towards the previous high at 1.77 from earlier in the
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spring. >> so mike, clearly s&p 500 half a point away from a record close but you have been following the stocks outside the s&p 500. >> yeah. it is becoming pretty stark again looking at lucid and rivian and huge names not going to get into with rules of ownership and square and uber not a lot of market cap building up again and you can look at the extended market index and that plays on small caps and mega caps and gives you a temperature check for where the excitement is in the market and i do think today rivian with the first day of options trading on it is like a magic accelerant i don't know that that can last. everybody should look at the fact that robinhood traded at $85 a share and now down where it is and just does show you
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that you get a lot of speculativeenergy and it is inflating. >> earlier we spoke with oaktree's how ard marks. >> if there's an increase in rates from today's zero on the fed funds rate to let's say 4 or 5 which sounds like a pipe dream today i think that spread over 30 years that the impact of that will not be too negative and returns will still be good valuations can go up the historic average has been pretty stable. the pe ratio at 16 postworld war ii and above that today in the 21 region. but as you say i think that the current valuations are reasonable and explains on the basis of current interest rates. >> mike, looking at today's
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action yields are higher and held the gains yesterday and a bigger cap value names that did well today. >> yes it is tough to draw the relationship so fine to talk about a few basis point moves and real yields are addressed and deeply negative and should be absolutely no hindrance to the valuations holding here when you have rates where they are. howard is understand why we traded 21 times earns because maybe people said that doesn't make sense where yield is is not a get out of jail card and with the post-1990 period the valuation is unrema,ible. >> cryptocurrencies are taking a hit today on negative headlines. china state planner said it will continue to clean up virtual
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currency mining in china and siegel said it doesn't make sense to invest in the assets. let's bring in meltum. it is great to see you it was a down day for crypto today and seems like folks point to the possibility of profit taking given how strong the run-in bitcoin and the ether has been what do you attribute it to? >> yeah. absolutely there is certainly more negative headlines. today president biden did sign the infrastructure bill into effect with provisions related to cryptocurrencies and taxes but looking at the fundamentals which is what we do is what we saw is overnight $1 billion of liquidations across venues and the markets as you have alluded
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to had a strong run. we see foirms taking profits. it is normal in cryptocurrency to see ten to 15% corrections from time to time as people take money off the table and adjust for the next leg up. >> joe, what is your tame in crypto and the volumes to see there and what it means for the likes of coinbase no less? >> i think to a certain extent it takes the temperature of the speculative fervor within the market and gives the determinant of how investors feel about being invested overall in risk assets and maybe that gold or some select commodities or the currencies were the proxies for that but i think it's cryptos overall and there is going to be a consolidation phase in cryptocurrencies where
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ultimately it will be bitcoin and ethereum that will come out on the other side and reside as the winners why i don't think we are yet at the cycle but that's something to think about as we move to 2022 i think that's probably bullish overall for each ethereum and bitcoin. >> do you feel like crypto investors don't flinch seeing a 5% pullback or 10% pullback? is it a different style of investor opposed to being used to the amounts of volatility >> absolutely. volatility is part of the price of opportunity here. the other thing i'll add is despite the volatility we have seen 13 weeks of inflow to products and last week is an all-time high 83 billion in global aum and less than 2% is the pro shares futures etf and a lot of capital deployed into the
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crypto space goldman sachs just today came out with a new report. $5.5 trillion dry powder in investor cash on the sidelines we were just talking about s&p hittingall-time highs or half basis point away and i think as investors look across the landscape this is a risk on market earn is watching the tape and inflation. everyone is looking to see what fed policy will be and generally that 5.5 trillion has to go somewhere and increasingly we are seeing the inflows allocated into crypto. not just the assets themselves but also equities. over $110 billion in market cap in pure play crypto companies like coinbase and coinshares and that will continue as we see investors allocating across equity and debt. interest rate products in the space and the assets themselves so generally sentiment continues
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to remain very strong and still so much allocation that's being made, in the process of being made and firms are raising nine figure, ten figure dollar funds and it is an interests trend. >> joe, wanted your view on robinhood coming up earlier. what is your view there? >> you have to look at robinhood and suspect that there's something more going on here the bulls will point towards retail engagement wh the bulls point to the regulatory bills i think it is more of diversifying the business model, recurring revenue. that's what robinhood needs and i question at the executive level is there enough intellectual capital represented
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not from the technological side but the financial services industry to get them to diversify the business we all know it's a weak trading environment. interactive brokers surred the same weak trading figures so i think there's something more to the robinhood story. i think it's resolvable. clearly. i think it really relates to the intellectual capital that resides in management and the overall business strategy. >> joe, before you go, just wanted your final trade idea, as well, which i believe is semis related. >> without question. the economic optimism that we are speaking towards clearly represented in the most important industry to our economy and that is semiconductors challenge the 200-day moving average 3 to 4 weeks ago bounced off it
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you have the government induced factory closures in vietnam. malaysia is open 100%. so the smh up about 18% since october 1. that gives you the broad exposure to the semiconductor industry and many other places to go. ranging from broadcom to amd, nvidia, crack, all going to be stocks i believe with tailwinds behind them in the coming quarters. >> mike, your take on how semis are trading of late? >> the group is acting so well with nvidia off the high biggest market cap intel did nothing. to me it shows you that the market is rewarding the long term story even as it shuffles among the winners and losers. >> joe, meltum, thank you. we are just getting started here on the second hour of clo
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j "closing bell. we'll talk to the chipotle ceo and jim cramer tested the lucid new car. he'll join with us the drive and the stock. hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment.
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due to love the video either way but i have to ask the obvious question which is to what extent is this a bit of a pr attempt versus something you are genuinely behind >> it is something we are genuinely behind the whole mission is around cultivating a better world and only way to continue to have real ingredients, food with integrity is supporting the local farmers and we have talked about this before. we are buying 30 million pounds of local produce and spending well over $20 million supporting the small farms and want to continue to grow that and by signing them up with long term contracts and you mentioned in the lead-in an upcoming farm bill and we think it's important that we bring to light the need to make sure that land gets passed along to future young farmers in the country that's critical to i think our
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country and not just the business. >> i was interested in the statistics u.s. agriculture lost 40 times more farmers than gained why? is it the land or the work from home generation? >> yeah. the first thing is the cost of land and being able to transfer that land. whether it is a generational transfer or purchase the land to start a farm it is hard work and it requires a certain commitment to the idea of doing farming and to mack sure that there's somebody on the other side to buy the goods they create and i think where we play a big role is to support the folks in the journey of transitioning a farm or getting a farm started an enwhy we partier withthe young farmer
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coalition. there's a lot of young people that want to be in the business of farming but need somebody to support them to get the foot going on the farm. >> brian, it is morgan i get that it's good for the country and society. i imagine it's also good from a business standpoint for chipotle so when supply chains are in such focus being able to source more of your goods from u.s. based farmers, what does that mean in terms of stability and pricing for your restaurants and for the consumers to pay for the items on the menus >> you bring up a great point. we pretty much get all of our items that you experience in the restaurant, the great cilantro, the beans, obviously chicken, it is through predominantly a domestic supply chain and the supply chain team did a phenomenal job of working with a lot of local suppliers and
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partners to keep the items in the restaurants. there's still some challenges on the beef front and on freight. but for the most we have had zero issues getting the key ingredients to the restaurants to give the employees to be successful the comment on the stability of the supply chain, that's where i think the long term contracts come into play and not just buying commodity goods but the ingredients that have to meet the food with integrity standards and be outside of the commodity issues impacting people in the industry. >> tell us about the level of staffing at the moment is it hard to find workers and understaffed to where you would ideally be >> the labor market is tight we are fortunate i think we are faring better than most. we have some restaurants that are challenging with staffing
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and we have to flex between online and the in-restaurant experience and continuing to work hard to recruit and also re retain employees when a restaurant is understaff ds those employees that are still with you working in that restaurant the demand doesn't let up and stuck in a such ways where the job is really demanning and they aren't able to give the experience for the customers so we are doubling down to make sure to continue to hire, train and make sure the teams in place have a great culture and leader. >> yeah. hire, train, raise wages as well but chipotle is making significant investments in technology and including automation over the last couple of years does that accelerate the labor
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dynamics >> we'll continue down the strategy to improve the employee experience through technology and started in 2018. it paid big dividends. we want to continue to find ways to improve the experience for the employees in the restaurant and then obviously figure out how to use technology to give a great experience for the customers. we are doubling down on that area as we speak and we'll continue to stay after it because we got to continue to make the jobs the best possible jobs so that people want to continue to be in the restaurant industry and they want to work at chipotle. >> brian, we are we on brisket and a new chicken option >> brisket, a personal favorite, unfortunately coming off the menu in a week or two.
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we sourced outstanding meat and the guys did an outstanding job of cooking it in the restaurants. hopefully you have tried it. a favorite we are testing right now chicken. in a couple markets. and i think we are a couple days in we have a lot to learn and excited about the idea of a new chicken flavor profile for the customers. a thing people have requested for us is can you give us something that's not as spicy as the chicken that people love and excited what is coming down the future lane of menu innovation. >> i have to say i haven't tried the brisz kept and think the executive producer heas becausei heard a so good in my ear. we might in the next week and they for joining us. >> yeah. thank you for having me. give the brisket a try
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thank you. take care. >> i'm ready for a burrito. mike has a look at what inflation indexed bonds are telling us about the market. plus, we'll discuss the outlook for return to the office and what it might mean for the big software giants when we're joined by the president and coo of salesforce and ev stocks to the upside jim cramer took a test drive in lucid air and pspoke to the ceo. "closing bell" will be right back
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welcome back to "closing bell." because we like to make sure you get the steps in the day mike santoli is back at the telestrator looking at inflation indexed bonds. mike >> i think it's 40 or steps to the other desk, morgan thank you. we are looking at the market's implied expectations about inflation and it's reliable. this is the break even inflation rate that's embedded in the 10-year inflation protected securities it basically is the yield investors are willing to take compared to the regular treasuries so the spread is this
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break even rate and nominal yields are tips are negative demand for tips is what drives the rate the more demand the higher this will look. look at the demand recently. flows into the tips etf as really launched high ir. not tremendous absolute numbers why this is a 40-day average still a lot of money for the relatively small asset class now how much the owned by the fed as part of the asset buying program. they buy tips based on how much are outstanding. 22% owned by the fed the argument to suggest is a lot of supply demand effects and what we say are the market implied inflation expectations so it's not as if to bank on inflation being 2.7% over 10 years and it is seen coming in the next few years but not the long term. >> thank you so much. shares of slfalesforce seeig
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steady gains we'l we'll catch up with the coo. check out shares of roblox moving higher with the investor day why the ceo outline the vision for the metaverse and announcing an investment in educational games. the stock is up in the session today. we are back in a couple. ♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪
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welcome back time for a cnbc news update with shepard smith. >> hi. the news on cnbc here's what's happening. the jury in the kyle rittenhouse trial in the middle of day one of deliberations rittenhouse the 18-year-old accused of killing two and maiming another in protests in wisconsin last year. today he was given this prominent role in picking the jury at the judge's direction. rittenhouse was asked to pull six nubbed pieces of paper from
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the drum and then all six jurors with the numbers are alternates leaving 12 people to decide the fate we have no idea the deliberations may take. taking a pill for covid? one step closer to reality today. pfizer asked the fda to authorize the experimental anti-viral treatment the request comes as pfizer signs a deal with the united nations to allow other manufacturers to make the pill and that deal could make it available to more than half the people in the world. pfizer reports the pill reduced the risk of hospitalization and death by 89% for people at high risk of severe illness. alzheimer's researchers in boston starting a clinical trial today for a vaccine against alzheimer's. it's happening at brigham and women's hospital where 16 people between 65 and 80 given a nasal
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vaccine treatment. researchers say the vaccine tries to stimulate the immune system to help clear plaque in the brain. tonight a serial killer on trial in texas 18 women alleged the victims we are live at the courthouse on "the news" 7:00 eastern cnbc morgan, see you tonight. >> i will see you tonight because i will be talking space debris with you on the heels of the russian missile detonation thank you. >> thank you. shares of salesforce on the rise this year up 38%. slack is kicking off the annual customer conference today moving to a digital work from anywhere future joining us is bret taylor, salesforce president and coo thank you for being on with us it is interesting because i feel like throughout the software space there's an explosion of services and applications and
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now the kyey is to knit them together for a one stop shop and slack is focused on and salesforce is a big key topic of today. >> yeah. so excited about all the innovation that announced at slack frontiers. in this post-pandemic world work is something you do and not a placeyou go and salesforce employees and customers, employees come in two or three days a week and with slack and the innovation it can be a system of engagement to connect the employees, the lixs to the customers whether they work in the home, the subway or the office and a central tool or innovative companies coming out of this pandemic. >> you mentioned it, this idea of hybrid work some companies will not send employees back into the office some bring them back now and do you expect that hybrid work in general coming to a normalized
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post-pandemic environment is to some extent here to stay how big is that opportunity for salesforce >> i think it is here to stay. you look at the headlines and read about the great resignation. work relocation. work changed forever and as the world reopens, i love the news about the pfizer pill and go back to the office, it is not five days a week and every ceo and every board room i talk to right now thinks about cultivating the talent to get back to growth in the new normal and tools like slack are creative it is the digital headquarters because in this work from anywhere world the digital headquarters is more important than the physical headquarters >> you are seen as a driving force originally behind the slack deal and some investors have been critical of it i wonder what you say to the people that ask the question as
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to whether you bauought it at t work from home trend i get it is not going anywhere and hard to see it peak as much as it did in the last year or so. >> tools like slack are relevant in the pandemic as every company awkwardly forced into the work from home environment but i would argue it's more relevant in the president obama-pandemic world because we are going to enter the world of flexible world and in this world of flexible work you need to connect employees and customers because they're in the office two or three days a week and how incredible companies like ibm and orthers have digital headquarters and slack is at the center of that conversation. >> for the customers what are the needs as all of this continues to evolve? >> slack is just been on an innovation tear.
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adding audio capabilities. video capabilities a brand new platform this week at slack frontiers but the thing is how deeply we are integrating slack with what salesforce makes with customer 360. with slack and the customer 360 we have digital selling teams. the digital customer service they exist in the cloud and looking forward to thanksgiving and black friday and cyber monday slack is the command center for cyber week and excited to partner with the customers to get back to growth in this new economy. >> brett, is the metaverse a threat or an opportunity for you? >> i think the metaverse is an opportunity. i think when i think of the metaverse is the digital identities as important as the physical identities and the customers make sure the brands and products are integrated
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where the vision takes us and excited about the conversations to have with the customers about where they're going in the new normal and salesforce if there's one thing we do is look at where the puck is going and trying to help guide customers on that journey. >> thank you for joining us today. much appreciated. still ahead, netflix's newest development, changing up how it discloses key metrics we'll explain ahead on "closing bell." new projects means new project managers.
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welcome back shares of netflix ending the day in the green and just announcing changes in how it reports viewership for popular titles. julia boorstin is here with more hi, julia. >> morgan, netflix announced the third quarter earnings and sh shifting of accounts that watched minutes and to hours and giving transparency to what is working. it just laurmged top ten.netflix.com and update weekly on tuesday with hours viewed from the previous monday through sunday right now "red notice" is dominating the english language film list with 150 million hours viewed most popular tv series "is mexico season 3" and netflix saying people want to understand what success means in a
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streaming world and these lists offer the clear oes abc to that question in the industry of course another benefit of this netflix says they hope more people look to the list to find new things to watch. it is all about putting more eyeballs on their content. >> yeah. definitely it is interesting because this is something netflix and really everybody else in streaming is grappled with which is the fact that traditional rating systems don't necessarily apply here so is this to cater to more investors or subscribers or talent since some of those pay packages are different than we have seen traditionally? >> i think a little bit of all of the above there's an article just after this announcement said this is netflix giving a big flex, showing how many hours they are viewed because there's skepticism that people watch two minutes curious and they with respect really watching a
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series, a full episode this is showing just how many hours. it is a lot, guys. >> julia, thank you so much. after the break, ev names with a big push. jim cramer will join us with the take on the car and stock of lucid. ♪ feel stuck and need a loan? move to sofi and feel what it's like to get your money right. ♪ ♪
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$1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. shares of lucid motors surging today up nearly 24% after the company announced accelerating air sedan and the first ever quarterly report as a public company jim cramer sat down with the ceo earlier today and discussed the company's mission. >> we cannot go on burning fossil fuels the way we're doing. mankind needs to transition to sustainable sustainable moebltd and the route with this car we'll use to
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make electric vehicles progressively more affordable and progressively more mass market and need to accelerate that with a sense of urgency. >> let's bring in jim creamer. jim, i want to haefr more about what you thought about the interview and the stock and the car itself which you got to test drive. right? >> yeah. i'm not as proficient a driver but i go zero to 80 without breaking the neck like i did almost did at annual cliffs. this is a luxury and afford l sedan that's a race car. i got to tell you, it is a delight. i think that's going to matter a great deal coming to sales and mattered to "motor trend" because it did get the car of the year. >> tell us more in terms of with the investing club what you have been saying about the stock
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itself because you can have a fabulous product but valuations are pretty steep at the moept. >> they all are. we are all on the hunt for the next tesla i remember hunting for a next amgen. there is a belief that ev, only 2.5% of our market they can double and double again. people want these. this is 70,000 and thinks it's a 50,000 and ultimately if we like tesla and they got to a million and rivian which could produce hundreds of thousands of vehicles for amazon there's room for lucid. it is exciting they're all too high doesed matter? it is what people want to buy in the marketplace and as a stock >> rivian is just revving higher at 172 bucks a share now
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its market cap passed volkswagen that's the latest established automaker group that it has surpassed and yet it barely registers revenue right now. the question is, is it a situation where tesla is the tide that lifts all boats for some of these names and a situation of fomo or the fact that this is a huge opportunity even if the valuation right now has sometime to be caught up to? >> i'm going to go withthe first two which are insightful look it is going to be the next tesla. you don't want to miss out on the next tesla they're already so far larger than tesla was when tesla was smaller. they have unlimited amount of capital and if they do they can
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pull something off can they pull this off with the plants to build? yes. they can because there's so much money. so much moneyin the stock market and available to the companies that i think that you got to let them ride i recommended tesla probably, i don't know, about 800 points ago and everybody said i missed it the comments on twitter so vicious. you know what? i could have easily said i missed it but the opportunity was there. i think there's opportunity for more than one million car maker. i hear it is bigger than ford. please remember that the second biggest owner of rivian is ford. i'm watching ford up there with the guys but, morgan and wilf, it is exciting and the people investing in stocks and belong to the investment club don't
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mind having some excitement if it's not the whole portfolio. >> jim, we look forward to the full interview tell us what else. what a great shot you have there in the background. >> thank you. >> we miss you here in new york and understand why you're there. >> we enjoy ourselves. we have can understand why you e there with that backdrop >> we are enjoying ourselves we have square on which has a fabulous initiative and bitcoin. when the stock was in the high 50s, but it has come down so much, good balance sheet that it needs to be turned around to lower expectations to the point it can be beaten it's not nvidia, but a successful situation >> we look forward to tonight while you are on the west coast and we do miss you
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>> get into lucid. go for a test drive. is it disney world better >> we will get right on that jim cramer, thank you! good to see you. after the break, the global race for quantum computers kicking into high gear and the lead investors could surprise you. next >> plus as we get to break, peloton turned in its best daily performance since may of 2020, rising 15% despite a $1 billion share offering we will be right back. ok, let's talk about those changes to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab.
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welcome back to "closing bell." kate rooney is here with details. >> private sector is looking to lead the way in quantum computing especially as it is lagging out of china it is on track to top $1 billion in the first year.
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investors compare where we are right now in quantum to the 1960s in classical computing and still figuring out what materials to use at this point 80% of investments have gone into hardware. hardware needs to be built and tested before software applications is work there are only a handful of startups competing in this space. all of these are seen as targets as well. but big tech is looking to build out their own quantum computers before looking to buy. amazon and honeywell among those competing. and they say health care and biotech will be applications for quantum. but it could be decades before real uses. >> everybody is talking about it you are starting to see the
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money pour in. kate it's fascinating. i know you watch robinhood >> there has been a board shake-up frances frei is joining the board. she is seen as a fixer she joined uber's board after there was a bit of controversy she is a person to come into fast growing high flying startups and clean things up robinhood has had a series of missteps, but an interesting shake-up on the board of robinhood. >> mike, remind us again where robinhood has traded >> down in the 30s about 60% off the high the high was a brief spike
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after. especially compared to other brokerages it's abig -- i think a post honeymoon hangover for the business the fact they were at the peak moment, crypto and meme stocks it's long-term get the governance right and convince people their model will endure >> by the way, tomorrow you don't want to miss an exclusive interview with jack lew on closing bell at 4:00 p.m. eastern time an interesting time to discuss all sorts of macrobits this is pushing the dollar up a bit as well. >> for now absolutely they are relatively measured
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moves. the dollar index i don't think that's a great one-on-one relationship. and conferring there is a head of steam i do think the macrostory is pretty hard to find great fault with right now it is a question of inflation. we have another few months when it's probably going to have a pretty good lift to it and good news this afternoon that the president said he will have the decision in four days who he will nominate for the fed. the market cooled off. i don't know there is real suspense other than you would rather know than not know. >> we still have a busy rest of the week ahead of us including more retail names which will give us more of a read on the consumer the inflation pieces of puzzle and to your point, the retail
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sales, and to compete for that posting. companies seem to be taking it on the chin and we see them turning out record margins which is maybe why we see stocks move, the record closing higher for the s&p right now. >> the big companies have absorbed it. it was reassuring that walmart says inventory is pretty good going into the last five or six weeks of the shopping season i think more comments like that is what the market craves. this idea we are on the other end of the worst of the supply chain stuff. consumers are cranky about paying more. so far it is not as if there is an income problem. we have a buildup of savings, pent up demand, wage growth has been strong. all of it is working itself out.
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>> we missed mentions today it having pulling back of late. >> it had a bit of a bounce. we have the ceo selling handover fist maybe he's done, maybe not there is a question right there. the aggregate market value of evs is getting to be a phenomenal number. >> we are out of time. thanks for watching. "fast money" picks up now. >> live from the nasdaq market site, i'm brian. good to have you with us karen finerman, steve grasso, mike kohn and pete >> the nex

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