tv Power Lunch CNBC November 23, 2021 2:00pm-3:00pm EST
>> thanks. president biden is to speak on inflation and the economy momentarily. the white house announcing today that it will release 50 million barrels of crude oil from its strategic reserves the move done in coordination with the world's biggest oil consuming countries. an unprecedented step to try to stem some of those very sky high energy prices. now, those prices are just one piece of the overall inflation puzzle, which is a defining issue for the market, the economy, the fed and of course the american consumer. here's why according to the latest consumer price index report, fuel oil prices have increased 60% from the same time last year. it's now at its highest level since september of 2014. now energy prices overall have increased roughly 30% year-over-year that's the largest 12-month increase since the period ending in september of 2005 but it's not just energy
used car prices are up more than 26%. that compares to a 10% increase over new cars, that's still pretty high. meanwhile, you've got this food meats. poultry. fish eggs up by 12% year-over-year and beef alone by the way, that steak up there on top, is up 20%. and then apparel prices are higher by a little more than 4% as well. so all of that is covered by our team of reporters. they're on the story ylan mui on what to expect from the president's address. steve liesman on inflation and the fed then rick santelli on the move in rates. so ylan, we will begin with you. >> the white house here clearly trying to go on the offense with that announcement that it's going to release 50 million barrels from the strategic petroleum reserve in the coming months we are finding it's accelerating
18 million barrels that were previously authorized for release, adding another 32 million barrels in an exchange that will eventually be returned down the road once prices are lower. senior administration officials say it's a tool that's calibrated for the moment, but republicans are slamming it saying it's nothing more than a band-aid for energy policy and joe manchin said this is not going to fix the self-inflicted wounds of short sided energy policy specifically, he wants the administration to allow the keystone pipeline to be able to move forward on the other hand, the white house did not go as far as some wanted did not ban exports of oil the administration told reporters obl reporters only that the president stands ready to take additional action. so we'll see if he addresses that directly once he begins talking. >> thank you very much now to steve talk more broadly about inflation and the fed and whether jerome powell will get more aggressive from here. >> thanks. a lot of people in the market
applauded the decision by president biden to nominate jay powell they pointed to the move of uncertainty and continuity of policy, but there are considerable questions that surround fed policy. the pace of the taper in question the timing of rate hikes that would follow in question as well as several new fed members in addition to the two nominated yesterday. standing next to the president yesterday when his renomination was announced, fed chair powell made clear fighting inflation is now a major focus of policy. among his options, speed up the taper. two fed governors said they want to talk about it in december and faster rate hikes increasingly the market pricing and the first rate hike as early as may. you can see that there with a 51% probability. then you go up to the 90 percentile then a 57% chance of a second rate hike is at play for december but powell is going to need his
committee to agree and there were two interim bank presidents now and three open spots on the board of governors to fill while the president would likely nominate more dovish candidates, there is growing political consensus over the threat of inflation and you can see that with the president stepping the podium to talk about it. that gives the fed a political green light to fight inflation with fewer concerns about criticisms from the hill kelly. >> it was interesting, steve, how much inflation was the first thing that powell talked about yesterday. i believe brainard, too. and doesn't that speak volumes >> it does you know, i don't want to compare this to the late '70s. partly because i don't want to relive that inflationary period, but there was a political consensus there when jimmy carter appointed paul volcker. the story goes that paul volcker thought he blew the interview because he talked a lot about how he was going to have to restrain monetary policy and the economy. turned out carter picked him because of the consensus over
fighting inning flags fighting inflation we don't have inflation near that when that happened, but you can feel and hear the political consensus growing that gives the fed the green light to do what they need to do. >> thanks for that now to rick santelli at the cme where the yield on the ten-year note is at its highest point in about a month. meanwhile, we are seeing some movement across the curb with regard to maybe some flattening here and there rick, what exactly is it telling you? >> you know, if you look at a two-day chart of tens, we've hovered as high as 1.67% and indeed, should we close in this area, it is a one-month high going back to the 21st of october and the yield curve is taking a bit of a breather it's steepening today, but the flattening has been the big trade and what it tells me is that we're going to continue to see short rates like a two-year
or three-year, that more closely follow fed policy, remain sticky remain higher. tomorrow, we get our second look at third quarter gdp traders are already talking about paying close attention to that price index, hovering at levels we haven't seen since 1981 but part of the rally that's pushed rates up today or prices down really imemanated from europe bunds shot up because of strong pmis and germany, freedingzing temperature, they've had the highest jump in short-term nrnl energy rates this continues to help the dollar index, which is taking a breather, but still hovering near 16-month highs and we don't want to lose sight of the fact that spiraling inflation may or may not occur, but the real issue for most americans should be that if the level of prices stays here, but the rate of
change slows down a bit, it's still going to represent prices that we haven't seen in decades. dom, back to you >> rick, if you don't mind, you brought up the dollar. that was a key issue among many of the traders investors we talk to on a normal basis isn't it the thinking now that that dollar kind of at one plus year highs should be enough of a headwind to somewhat damper the moves we have seen in dollar denominated commodities, specifically when it comes to things like oil and food products >> you know, dom, there is an effect there, but let's be quite blunt here whether it's joe manchin's comments or others, we could look at the strategic oil reserve release program that was implemented and its uniqueness, but in the big picture, we have shot ourselves in the foot with regard to procuring a longer term amount of energy to carry us over until we can have the renewables able to take over and that force is going to be much
greater than any type of positive dollar force on keeping commodity prices lower >> rick, thank you very much for that one of our next guests says that inflation though is near a peak. the other has stock picks for this rising price environment. let's bring in mark zandy. also, dave smith, the chief investment officer with rockland trust. mark, we'll start with you first. you heard steve's report, ylan's report, you heard rick's report. is there a sense now that we could see those inflationary pressures really start to ease >> i think we'll get another ugly number for the month of december it's only by this time next year that inflation will moderate that just goes to the diagnosis behind what's driving inflation. in my view, it's the pandemic.
particularly the delta wave, which did a lot of damage to our economy and particularly southeast asia that's largely why we're seeing these severe disruptions it's also sent several million people back out of the workforce because they were sick or taking care of sick people or fearful of getting sick. as the pandemic recedes, and i expect it to more or less, i think inflation will moderate. i think in a year from now, we won't be talking about inflation like we are today. >> as an economist, you look towards all kinds of different measures, data points. is there something specifically you're seeing with regard to either business activity or anecdotal evidence from some of your channel checks and everything that else make you believe that things are easing now and that things will get better into the first half of next year? >> yeah, going back to the supply chains, i think there's a lot of evidence. all the factories that shut towndown
in east asia, a chip factories in southeast asia. the f-150 vehicle, the most popular vehicle in the country relied on chips from a coupl long beach port. you know, still pretty bad traffic jam but the traffic jam isn't nearly as bad as it was a couple three weeks ago a long way to go, but we're making progress. there are signs it's already happened >> so dave, mark brings up some interesting points here. that's the economic side of things you're putting money to work for investors. do you feel as comfortable that things have peaked on the inflationary front and if so, how would you roll out investing money right now? >> so we see certainly that part of the equation that mark described is the transitory nature of some of these elements however, there are other parts that are concerning to us. particularly wage inflation. as we look at that data point, it's on the rise
we're seeing numbers that we haven't in a number of years that tends to be sticky. when people get an adjustment in their compensation, it's difficult to dial that back. how do we manage that? we try to identify companies that have products that people are willing to pay for that provide a real robust solution to problems they have and that have pricing power as a result of that and ultimately, ideally, can control their expenses that increases profitability >> walmart, microsoft, exxon mobil. those are three picks you like mark, do you want to respond to this sort of question about wage inflation? does it, is it at the heart of where inflation pressures go for the next couple of years >> i certainly keep my eyes on it but i'm less concerned. if you look at where the wage growth has accelerated, it's really been among low wanlge workers. wage growth for middle pay and
high paid workers, that has not accelerated. again, in my view, that goes back to the fact that the delta wave and the pandemic on the willingness and ability of low wage workers that are kind of on the front lines here the jobs that can be most significantly affected not going back to work now, again, if that diagnosis is correct and as the pandemic recedes, we should see those workers start to come back particularly at these higher wages. the other thing is it's not only about wage growth, it is about productivity growth. at the end of the day, when a business person can pay somebody more, it's not going to add to their cost if they can do the same number of hours i think businesses are focused like laser beams because they know these labor shortages, which by the way, kelly, they were here before the pandemic and will be here long after the pandemic they need to focus on labor productivity improving that.
so yeah. he's looking at the right, i think david's looking at the right thing. i just, i'm just not overly concerned about it >> so dave, interesting. kelly had mentioned them the three stocks you could argue that are at the center of many of these cross currents in the economy are companies like exxon mobil for the obvious oil and inflation reasons. microsoft from the tech side of things and then walmart. take us through why those three are your top picks >> so exxon oblviously related, we believe there's plenty ofup side in today's move by the administration to release reserves it's a temporary fix we're not producing enough oil and as a result, there's going to be price increases. it's a global commodity, but the opec plus group has no real impetus to increase their production as long as they're not losing share and right now,
they're not. exxon mobil is incredibly cheap, a 5.8% dividend yield. microsoft is just a great story, executing on all cylinders we love the azure business we think they're taking share from amazon web services when we think about corporate america, if you're thinking about outsourcing to the cloud, microsoft is a trusted business partner. amazon is a potential competitor we can see their growth quarter by quarter they're gaining share. and ultimately walmart, which is executing incredibly well here mark talked about the supply chain dynamics clearly the big box retailers have an advantage and that's worked to the advantage of the big box guys and we think walmart is somebody who's executing very well. in stores as well as online. so they've got a lot of levers to pull to have a strong christmas selling season, which
we think would be the case for them and many others in the big box space. >> thank you very much happy thanksgiving >> thanks for having us. >> still ahead, we're minutes away from the president speaking on the economy and rises prices. when we begins, we'll bring you there live we're seeing the dow climb back towards session highs. the nasdaq going the other way still shedding 200 points for a second straight day. falling hard on rising rates oil and energy, quick check of those prices as well higher across the board. wti up 2.5% after the spr announcement we're back in a minute hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown your sales rep
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we are expecting to hear from president biden momentarily about inflation and the economy. today, he authorized the release of oil from the strategic petroleum reserve, the spr, in an effort to lower oil and gasoline prices. we will take you live to the white house when president biden begins speaking. >> in the meantime, let's drill down on an under the radar auto stock. serins is the leader for the top automakers as well as for some of the newer ev players. the stock is down more than 20% this week after its guidance
disappointed the street. down 7% today. some analysts worry the chip shortage could impact the company's growth here to discuss and the future of car technology, the ceo of cerenc cerence. welcome. explain how the chip shortage is hurting business >> so, one part of our business is dependent on new car business two-thirds of the business is not directly affected by the chip shortage. for that one-third, i think we have done well to sort of navigate ourselves around it basically because as we announced in our results yesterday, we, our quarterly results were 8% higher our early results, we finished our fiscal year on september 30th, were 17% higher and we were higher than the guidance given for fiscal '21 to our
investors. so from that standpoint, we came up pretty strong >> sure. >> having said that, chip shortages, you know, are the one-third of our business definitely gets slightly affected by you know, how many cars get shipped by our customers. >> if i can before we might have to cut out to go to the president, you make conversational ai products for the car. so is that the kind of technology if nowadays, you kind of press a button on the steering wheel and speak a voice command, are you guys involved in that? >> that's exactly it one in two new cars ships with our software so pretty much every automobile is a -- so when you're in a mercedes, the ai platform that basically powers the word and all the other interaction that happens behind it is our product.
you know, it's great to have -- >> sanjay, just going to interrupt because president biden is speaking on the economy. >> to be hitting the road. reuniting with their loved ones in cities and towns all across america to celebrate thanksgiving as they do, i want to take a moment to talk about the economy. both the progress wherever made and the challenges that remain and we have to face. we've made historic progress over the last ten months unemployment is down to 4.6% two years faster than everyone expected we started this job, over 14%. wages are rising disposable income is up. more people are starting small businesses than ever before and our economy has created a record 5.6 million jobs since i became president on january 20th. there's a lot we can be proud of a lot we can build on for the future, but we still face challenges in our economy.
disruptions related to the pandemic have caused challenges which has sparked concerns about shortages and contributed to higher prices. moms and dads are worried, asking will there be enough food we can afford to buy for the holidays will we be able to get christmas presents presents to the kids on time and if so, will they cost me an arm and a leg? i told you before we're going to take action on these problems. that's exactly what we're doing. it starts with my port action plan proactive three-month effort to invest in our ports and relieve bottlenecks. 40% of the goods that come into this country on the west coast come through two ports los angeles and long beach to help ease the congestion of these ports, i brought together labor and management and asked them to step up and cooperate. and move from operating the ports at 40 hours a week at
those ports to 24 hours a day, seven days a week. and i provided the resources to other key ports including savannah, georgia, and on the east coast, and to help reduce congestion to undue damage caused by covid. we also met with the ceos of walmart, target, home depot and others they agreed to move more quickly, stock the shelves more quickly and you may have heard the ceo of walmart yesterday on the steps we've taken. he said, i quote, the combination of private enterprise in government working together has been really successful he went on to say all the way through the supply chain, there's a lot of innovation because of the actions we've taken things have begun to change, end of quote in the past three weeks, the number of containers sitting on docks blocking movement are down by 33%
shipping prices are down 25% more goods are moving more quickly and more cheaply out of our ports on to your doorsteps an on to store shelves so all these concerns a few weeks ago, there would not be ample food available for thanksgiving so many people talked about that understandably but families can rest easy stores are well stocked with turkey and everything else you need for thanksgiving. and the major retailers i mentioned have confirmed that their shelves will be well stocked in stores this holiday season that's good news for those moms and dads worried about whether the christmas gifts will be available. everything from bicycles to ice skates today, i want to address another challenge. that families are facing the one i think they're most focused on now high gas prices. this is a problem. not just here in the united states, but around the world the price of gasoline has
reached record levels recently in europe and in asia. in france at the end of last month, it reached about $7 per gallon in japan, it's about $5.50 per gallon the highest it's been in years of course, it's always painful when gas prices spike. today, the price of gas in america on average is $3.40 a gallon in california, it's much higher. the impact is real but the fact is we faced even worse spikes before. just in the last decade, we saw it in 2012 when the price of gasoline hit $3.90 we saw it in 2014 when it hit $3.69. and as recently as 2019, we saw it surpass $3 in many places the fact is we always get through those spikes but we're going to get through this one as well and hopefully faster. but it doesn't mean we should just stand by idly and wait for prices drop on their own
instead, we're taking action the big part of the reason americans are facing high gas prices because oil producing countries and large companies have not ramped up the supply of oil quickly enough to meet the demand and the smaller supply means higher prices globally globally for oil to address these issue, i got on the phone where leaders from other countries grappling with this challenge to try to find ways to lower oil prices and ultimately to the price you pay at the pump. so today, i'm announcing that the largest ever release from the u.s. strategic patrolling reserve to help provide the supply we need as we recover from this pandemic in addition, i brought together other nations to contribute to the solution india. japan. republic of korea and united kingdom have agreed to release additional oil from their reserves and china may do so as
well this coordinated action will help us deal with the lack of supply which in turn helps ease prices the bottom line, today, we're launching a manl effort to moderate the price of oil. an effort that will span the globe and ultimately reach your corner gas station god willing i've worked hard these past few weeks and calls and meetings with foreign leaders, policymakers, to put together the building blocks for today's global announcement. and while our combined action will not solve the problem of high gas prices overnight, it will make a difference it will take time, but before long, you should see the price of gas drop where you fill up your tank. and in the longer term, we'll reduce our reliance on oil as we shift to clean energy, but right now, i will do what needs to be done to reduce the price you pay at the pump. from the middle class and working families who are spending much too much and it's a strain and you're the reason i was sent here to look out for
you. there's another issue. i'll be addressing as well because the fact is the price of oil was already dropping prior to this announcement and many suggesting anticipation of the announcement the price of gasoline in the wholesale market has fallen by about 10% over the last few weeks but the price at the pump hasn't budged a penny. in other words, gas supply companies are paying less and making a lot more. they do not seem to be passing it on to the consumers at the pump in fact in fact, if the gap between wholesale and retail prices was in line with past averages, americans would be paying 25 cents less a gallon now as i speak. instead, companies are pocketing the difference as profit that's unacceptable. that's why i've asked the federal trade commission to consider whether potential or
illegal behavior in the oil and gas industry is causing higher prices for consumers so we can assure the american people are paying a fair price for the gasoline i also want to briefly address one myth about inflating gas prices they're not due to environmental measures my effort to combat climate change is not raising the price of gas or increasing its availability what it's doing, it's increasing the availability of jobs jobs building electric cars like the one i drove at the jam factory in detroit last week for the hundreds of thousands of folks who brought one of those electric cars, they're going to save 800 to $1,000 in fuel costs this year and we're going to put those savings within reach of more americans and create jobs installing solar panels, batteries, electric heat pumps jobs making those clean power generating devices and by the way, deploying these
technologies for each home they're installed is going to save folks an additional hundreds of dollars in energy costs every year let's do that. let's beat climate change with more extensive innovation and opportunities. we can make our economy and consumers less vulnerable to these sorts of price spikes when we do that and finally, even as we meet to work out this challenge, it's important to maintain perspective about where our economy stands today the fact is america has a lot to be proud of. we're experiencing the strongest economic recovery in the world even after accounting for inflation, our economy is bigger and our families have more money in their pogtsckets than before th pandemic america is the only country in the world that can say that. it's a testament to the grit and determination of the american people as well as the unique approach to rebuilding the
economy from the bottom up and middle out not the top down because of that approach, we're the only leading economy in the world where household income and the economy as a whole are stronger than they were before the pandemic hit let me close with this this thanksgiving, we have so much to be grateful for. vaccines that are effective, safe, and free promising new treatments providing for hope that we can bring an end to the worst tragedies of this crisis record job growth. the strongest recovery in the world. and most of all, the chance to be together again with the people we love on thanksgiving as you gather together with your family this thanksgiving, i want you to know how grateful i am to serve as your president. and i promised you i'll never stop working to address your family's needs and together, we're going to confront challenges that we face them and face them honestly and that will keep building this economy around hard working
folks who build this country happy thanksgiving, god bless you and may god producttect our troops i'm heading to a food kitchen to serve meals right now. thauj thank you for your time and effort i'll have plenty of time to -- >> that was president biden speaking on inflation and the economy. let's bring in ylan mui, mark zandy. welcome back ylan, what was the significance of the president's remarks here? >> what i heard was president biden there depending his energy policy, the move to address climate change with greener and cleaner technologies even as he's authorizing what he said was the largest release ever from the strategic petroleum reserve. he said that right now, i will do what needs to be done to reduce the price you pay at the
pump so the administration here is trying to show that it is directly confronting inflation it says, he said specifically that high gas prices this is a problem, but of course, he faces the challenge of trying to push against the stream here. maybe even push against the supply chain in recognizing that even as the price of oil has come down, the price consumers pay has not followed suit. the administration putting the blame there at the feet of the oil and gas industry saying they may not be passing those price savings along. he had tough words for that sectors while saying that retailers are working with the administration to ensure shelves are stocked. so the administration taking a tough balancing agent as they try to show they're standing up to inflation but also that things could be a lot worse. >> mark, i mean, i understand that you are not an oil and gas or a gasoline expert, but i
wonder when we talk about the pricing dynamic that ylan was just referring to, that president biden alluded to in his speech, this idea that wholesale prices are coming down, but it's not being passed on to the retail level, how much is localized specific locations in the country. anecdotally, i go to the same gas station every week here in new jersey and i've seen my prices come down ten to 12 cents over the last two weeks so why am i seeing price drops at the pump when others around the country are not? >> you make a good point gas markets are very localized taxes by the states very considerably across the countyry so the level of prices people observe varies also labor costs in some parts of the country, i know it's difficult to get folks
to work at gasoline stations and gas operators have to raise wages and it's translated through higher costs so it's a thorny, difficult question with regard to how much room there is for retail prices to come in although having said that, i don't think it's a bad idea for the president to signal that you know, the government's taking a look here and watching out and making sure this market is competitive. even if he does nothing, the government takes no action, it's probably a good idea to send a shot across the baugh and say hey, we're looking to make sure that no one's gaujouging anyone. >> we'll leave it there. thank you. coming up, tesla's power move in california sales in that state have grown faster than any other automaker by a very wide margin. so can the competition catch up in the golden state for evs?
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of fuel and growing push for electric vehicles. mike santoli has a look at the two-day tech selloff >> over two days and compared to financials this will show that it is in the context of a little bit of a rotation going out of tech and into the big growth areas into more kind of reflation, higher yield plays. cyclicals like financials. little over 2% loss in the tech sector better than 2% gain in financials and you have the s&p a little bit on the downside because tech is so much of a bigger factor. of course, the smaller cap and more aggressives tech, not just the ones that dominate the s&p tech sector are taking the brunt of the punishment. on a year-to-date basis, you see how the pendulum has swung back and forth. software against the transports. software, secular growth, deflation their. deflation deflation. over the period of time, you had transports and others taking up the slack, but on a year-to-date
basis, only recently have you seen much of a divergence as software gets hurt then here's what it looks like year-to-date s&p looks like it's forming maybe a bit of a short-term sailing at 4700, but that's not much. less than a 2% decline nothing more than a routine wobble >> software versus the transports sums things up. to the energy market where the president's release of oil from the spr not making a dent in prices which are headed higher today. pippa? >> hey, kelly. the u.s. saying it will release 50 million barrels as part of a coordinated effort alongside other countries. this an attempt to put a lid on the rapid rise in energy prices but oil is moving higher today there was chatter about this for weeks. traders had already priced this into the market. u.s. oil is about 7 bucks below its october high
at $78.65. brent crude is up 3.4% at $82.42 we're not talking about a lot of oil. the u.s. uses about 18 million barrels per day so the target of 50 million is more of a quick fix than a long-term solution. it is important from a geo political standpoint and thinsgs are getting interesting ahead of opec >> thank you very much now to the real world impact of those high energy prices dom was just talking about it at the gas station is where we find sima today. what are people saying >> well, president biden's move is aimed at bringing gas prices down travelers we spoke to say they are waiting to see when they translates into less pain at the pump there's a new survey that says 32% of americans plan to drive this thanksgiving weekend.
down from last year and 65% in 2019 >> quite surprising given that where we are in the pandemic broadly recovered compared to last year. but again, highlights how americans have been so frustrated by the rising price of gas over the last couple of months >> the cost to fill up a tank of gas is now the most expensive in california at $4.71. with texas and oklahoma seeing the lowest average prices. at this mobile gas station in new york city, travelers say they'll pay what they need to to get home to celebrate thanksgiving, but it may make them cut their budgets there after and it can be challenging by drivers employed by ride hailing companies. uber rolling out an app to show drivers realtime gas prices and
offer selected discounts >> so the drivers have to pay for gas out of pocket so it cuts into what they're earning, right? >> that's right and that's what a lot of experts say if you're getting in a car tomorrow for thanksgiving weekend, check some gas apps that can help you understand where you can get the best prices realtime. that could be an effective way because as you cross state lines, the price can pump. >> just within five miles of where i live basically thank you very much. you drive to the cheaper one, but burned it up to get there. let's talk about the evs the evs that are trying to dominate the market and there's one they're all vying for. we just showed it there. california is the prize. phil joins us for more on how this is affecting demand for evs. hi, phil >> hey, kelly. right now when it comes to california, tesla's taking the prize. it is clearly the leader when it comes to electric vehicles and it's not just dominating electric vehicle sales in the
state. it's cutting into internal combustion engine vehicle sales. we'll explain in a little bit. sales up 64% now the number five auto brand among all autos, it is the number five brand in terms of sales. here's a primary reason why. it's the model y it's become the fifth best-selling vehicle in the state of california and the model 3, meanwhile, leads its category that includes the 3 series and a number of other smaller luxury vehicles there's no competition for the those two in the categories where they compete and model y production is going to be increasing next year once they get the gigafactory up in texas running. most are going to go to other parts of the country not to california. bottom line is this. tesla has not only first mover advantage in california, it is clearly, clearly the leader when it comes to electric vehicles in that state and that's not going to change anytime soon
>> it's dom. i was just out in california visiting family a couple weeks ago and i noticed the same thing. i see teslas everywhere. it is certainly the biggest electric car market out there. i see them everywhere. what then do companies like volkswagen and audi and porsche and toyota and everybody else, what do they have to do to actually catch up with tesla in that market in particular? >> they have to come up with a model that really makes people want to drive it i'm not talking about driving it because it's electric. i'm talking abilityout driving it because you see a neighbor driving it and you go, wow, that's really good looking i have never heard somebody to say to me, i'm going out on the market to look for an electric vehicle. not sure what i'm going to buy no, it's i'm going to buy a tesla. that's what the others have to change and that's not going to happen overnight
they have to come up with compelling models that make people no longer say, ev, tesla. >> tooth paste, crest. laundry detergent, tide. and whatever it is thank you very much for that shares of visa are hitting the skids at least recently over a dispute with amazon, but it's not the only payment provider that's struggling right now. mastercard, even paypal and square, off by 20, 30, 40% from their recent highs so will the holiday season and all that spending by consumers mean a possible rebound for some of those stocks? we'll have that story after this
welcome back, everybody. look at shares of visa down 15% in the past month it's not the only problem facing visa and the other payment networks kate >> hey, kelly. so these payment names are under underperforming lately there's two bearish narrativ around the credit card names visa recovering after being the worst performer on the dow
yesterday. amazon said they cite fees and the ceo of visa says he expects to reach an agreement with amazon and investors have not been able to shake regulation visa is dealing with an investigation and competition, as well. seeing it from all sides fintech buy now pay later and crypto and now threats to cross border recoveries in europe. amex and mastercard down in sympathy part two, growth stocks. mike's talked about it the finteches trade like tech names and selling off for some same reasons fears of rising rates and a rotation from the momentum names to value stocks. square and paypal. some of the biggest pandemic era winners negative for the year and forecasted lower growth. paypal down 19% for the year
sofi down after soft bank and spac sponsor sold shares robinhood and a firm caught up in the selloff, as well. guys >> i guess when i don'tyou take a look at the companies is there anything that can really -- what can they say to get people interested in them >> for the longest times these are the people controlling the pipes and supposed to be the ones to benefit no matter what happens if consumers do what they do. why the negativity what fixes them? >> some are the biggest investors in fintech they have a venture arm for the early stage fintech. to say we'll do more r&d and invest more. kelly, they are really seen as the payment rails. bitcoin was built to get around that they can spend as much as they
want but if you believe crypto probably getting rid of the intermediaries visa is a big one to think about. >> to be continued. >> all right >> thank you. there's a retail route going on today they're down big but up next a retailer that's bucking the down trend. stay with us lots more "power lunch" is coming up.
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it is time for a market flash on "power lunch. shares of american eagle outfitters up 3.75%. up big after better than expected results revenues jumped 24% year over year jim cramer is a fan of the numbers. the charitable trust is buying 300 shares additionally today and should prove to be a best in specialty retail in the earnings season for more and the moves he is making sign up for the daily newsletter by pointing the phone at the qr code and check it out. >> thank you. still ahead, how much do you know about equipment leasing
if you're 55 and up t- mobile has plans built just for you. whether you need a single line or lines for family members, you'll get great value on america's most reliable 5g network. like 2 lines of unlimited for just $27.50 a line. only at t-mobile. welcome back always on the hunt for tea leaves and signs for the health of the economy and a data point could be in the debt market, specifically lease finance companies, the lenders that help finance everything from planes to construction and medical equipment and computers. a host of other capital goods.
so the equipment leasing and finance association just reported that overall new business volumes for the companies it represents, lenders, rose to $10.7 billion in october that's a 16% rise over the same time last year in other words, more companies tapping finance companies for loans to buy equipment, bulldozers, computers and maybe software and everything else maybe that's a tea leaf. >> i thought i knew every indicator. this escaped my attention. >> equipment lease finance business. >> exactly do you think it's a leading indicator for ism? >> might be with the activities that could happen because you don't just buy a bulldozer to use it tomorrow. >> we have a red shoe, rocket pocket square. >> red socks. >> thank you for watching "power
lunch." >> "closing bell" starts right now. today. welcome to "closing bell." i'm sara eisen at the new york stock exchange another volatile session on wall street another brutal day for the nasdaq it is deep in the red. the dow is at session highs heading into the final hour of trade. welcome, scott. >> hey i'm scott wapner in for wilfred frost. there's serious pressure again on the nasdaq. tech and consumer discretionary the big decliners. seeing the