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tv   Closing Bell  CNBC  November 1, 2021 3:00pm-4:35pm EDT

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>> this is not a discount driven purchase >> i bet you sue herrera is almost done. she is an early bird >> discounts >> lack thereof. thank you. thanks for watching "power lunch. "closing bell" starts right now. it certainly does. welcome to "closing bell." i'm wilfred frost at new york stock exchange the major averages picking up where they left off in october small caps jumping as we head into the final hour of trade. >> welcome i'm sara eisen let's look at what's driving the action senator manchin throwing a wrempbl boo the spending plan saying he wants clarity on the economic impact of the reconciliation bill before a vote tesla is off to the races once again. now up more than 50% in the last month. energy is a top performer sector the group doubled in the past
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year 59 minutes left to go in the session. today the ceo of lending club to discuss the loan industry with his stock up more than 30% in the past week. plus inside ark strategy, the internet analyst with the key likes now and the ark holding tesla and the blistering recent rally. >> let's begin with washington on crypto regulation ylan muoy has more. >> reporter: the biden administration is warning of a broad set of risks by stable coin and calling for action from congress the report from the working group outlines categories of risk including loss of value, payment system issues, risks of scale and market power and finance and fraud. the report says that a solution should be coming from congress it says any legislation to
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require stable coin issuers to be insured depository institutions it should promote interoperability to limit concentration and impose standard on wallets. the bills take a long time to move on capitol hill and the report says that fsoc could designate certain arrangements as important and outline the agencies to oversee digital asset offers with intermediaries and trading platforms. the industry did weigh in on the report and a senior administration official said this is an attempt to provide clarity that companies have been asking for. >> we wanted to ask about recent devel developments surrounding the spending bill. >> yes of course. democrat manchin said he is not ready to support the biden
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spending plan and wants a vote on the infrastructure bill asap. there had been momentum to holding that vote possibly tomorrow but unclear if that will happen now because progressives threatened to tank the bill without a guarantee that the bigger bill will pass, as well. manchin accused them of holding it hostage. >> i won't support the reconciliation legislation without knowing how the bill would impact the debt and the economy and the country. we won't know that until we work through the text. >> he is worried about inflation and what happens if the fed starts to taper and dismissed the small every price tag as shell games and gimmicks calling ate recipe for economic disaster and open to supporting the bill eventual a bill text
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agreedo. we haven't had a score by the congressional budget office. we have not gone through the birdbath to see what stays and what comes out in the senate in march trying to get a $1.9 trillion bill through there were surprises that manchin had to workt week
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came out right before going to g20 hailed a victory, a framework for a deal reached, so why does it feel like it's happening and every time the only real deadline is probably mesmbers going home and the debt limit accomplished this year they know that but tref inch al
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see if they can get that deal struck which still is much more likely than not but we have to go through this process before everyone can say yes or no on the final package. >> if and when this does pass is it net positive for biden's approval ratings or so drawn out and divisive it doesn't improve either way >> that's a longer term debate the debate i am focused on at r raymond james is what's the impact onthe market? if this gets done i think it sets up for a positive year end rally where the overall fiscal
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cliff that investors were concerned about mid this year won't happen you see front loaded fiscal stimulus here and the tax hit that potential draw from the economy is not going to be nearly as impactful as feared so biden i think he can figure that out himself but from a market perspective this is setting up nicely. >> if you look at joe r cite itn inflation, budget gamings. janet yellen said it should put pressure on prices do you expect it to get scored that way could that get us over the line here >> i don't think we will have answers to all of senator manchin's questions. we are in an unprecedented fiscal experiment. we have spent trillions of dollars in ways that we have never before if you look at the bill itself some of it is budget tricks.
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we wrote this week in a report in terms of how to get budget tricks done if you fund a program for two years instead of ten years. only scores at 20% of the cost and something no more permanent than a temporary government program and the things that he is trying to make sure those tricks don't get into a final deal but i think that the dollar amount is much higher than the score is we are looking at that salt. it looks like more likely than not for a two-year relief there paid for by fully having a salt tax come back on it in years nine and ten i don't know if we will have a conclusion to the debate before the end of the year when this likely does pass. >> switching focus, what's the latest expectation as to what the white house is thinking about possibly extending jay
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powell's term or not >> time is running out the term is ending in february there's not a lot of time that congress is set to be in d.c. for that nomination and confirmation process i think when they announce it it's a slate of who's the chair, who's the vice chair, vice chair supervision and who fills the final governor spot that is still open on the fed. my expectation is that powell does get nominated for the next term and he will be able to adhere to the concerns of progressives by filling in governor brainard to vice chair of supervision or the vice chair slot and have another individual very progressive in that final governor spot. the package is going to be what gets sold. and getting the confirmation done powell might be one of the only people to be confirmed between now and february of next
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year looking at the calendar. >> are there any contenders to come as a surprise to you, to wall street? >> i'm sure there are. if it's not powell it looks like it would be brainard could be bostic. ferguson does yellen get pulled back in there's always options for this position anyone who's not powell is going to be more dovish on monetary policy going to be more hawkish on regulatory policy and the debate for the market is stagflation concerns will we have more inflation that manchin is concerned about at a time with more aggressive bank regulation one thing that the manchin letter with schumer outlined is that the fed has to start tapering before he votes for a bill so if we get the announce tomorrow that the fed tapers there's another area manchin got
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his way and adding pressure to support a final package. >> yeah. wednesday. >> we look forward to that in particular where we hear from the fed chair during "closing bell." >> he is a guest. >> basically our guest schedules that and to be on our show ed, thank you. >> thank you. breaking news on ev maker. phil >> this is a headline that first flashed coming from "the wall street journal." we have confirmed independently from sources that rivian will finish the ipo it will likely happen next week. nasdaq will list them. the valuation is expected to be a little over $60 billion. that is the expected valuation though that could change as we get closer to the listing. ford has a 12% stake last week amazon said, look, we
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think we have a 20% stake in rivian at the time they were valuing that stake at $3.8 billion clearly that stake is worth far more if the ipo is a valuation north of $60 billion back to you. >> phil, we'll keep eyes on that one and will be interesting. moderna pulling back today now down more than 30% on the peak on news of a delayed deadline for covid vaccine for adolescents. you are watching "closing bell" on cnbc.
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today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm.
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welcome back moderna lower today on news of a fda delay in a decision of vaccines for teens meg tirrelha data on the risk of myocarditis that's occasionally seen in young men after the second dose of the mrna vaccine just the fda says it could take until januarof an
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under 18 here in the united states the cdc has done a lot of annual ses of the vaccines in older people and one analysis suggest add slhta role we don't know and we need more information on the risk in general but a delay isf earnings
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after the bell including nxp, clorox and chegg check out the top searched tickers on cnbc.com. tickers on cnbc.com. tesla on top wit and kim. she wanted to execute a pre-set trade strategy in seconds.
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new gold bond pure moisture lotion. 24-hour hydration. no parabens, dyes, or fragrances. gold bond. champion your skin. amc says admissions revenue in october highest since the start of the pandemic. february 2020. the stock up 400% since then in a new digital documentary how the amc apes cracked wall street melissa lee takes a look at the
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chain's rise must have been a fun one to shoot. >> it was. this is a deeper dive into the apes, the retail investors looking at a bigger social movement and a story we watched unfold as investors piled into the stock taking over 80% and giving the ceo an opportunity to save the company i asked him what he thought about the market cap here's part of what he had to say. >> we have a massive value waegs of the company right now and we need to grow into that valuation. i think a way to do that is to expand the appetite of amc and reach beyond just being a pure movie theater play and do other things as well in the future as we did theaters in the past. we have ideas on that score. i think as the next six, 18, 30
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months play out you'll see amc branching out to do more interesting things that will have the definition of success. >> the apes have given aaron a billion dollar lifeline to do that did the retail investor save amc? >> we savered amc first. by raising a lot of money but then the retail investors arivered in huge numbers and yes. they saved amc and that's when they saved amc because of the retail investors we raised another $1.250 billion in may and june of 2021 and that last billion dollars is what really will i think guarantee that we survive through this pandemic. >> it is always interesting when a ceo calls the valuation massive. we have much more including
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whether there's a secret message of not wearing pants in that clip you can catch it all on youtube or cnbc.com. >> thankfully wearing pants there. >> not wearing pants is another interesting part of it did you talk to the retail traders themselves what's surprising is how long they stayed in this game and the question is how does this end? >> how does it end is obviously the great unknown but when we saw it start with the gamestop frenzy in january and then the ensuing meme stock frenzy we didn't think it would last and now watching the stock >> we have lost the connection
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there with melissa sadly. but you can watch that full documentary at youtube.com/cnbc available straightaway shares of lendingclub this year the ceo will join us to talk about the results in a moment. barclays backlash. the ceo is out we'll bring you details next here's a check on bond yields. to start what is an important week in central bank world up at 1.58 on the 10-year. (vo) this is more than just a building. it's billion-dollar views.
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let's check the market movers harley davidson with a pop after the u.s. and the european union ened a dispute of steel and aluminum tariffs they were facing a 56% tariff in europe. shares of spotify higher today on a pair of positive calls. the top pick and market perform. bernstein seeing more growth in global music streaming and the stock up 3%. jim cramer talked about spotify today. to learn more head to cnbc.com/investingclub or the qr code on the screen time for a cnbc news update
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with sue herrera welcome back. >> thank you here's what's happening at this hour slow going on the first day of the homicide trial of kyle rittenhouse, charged with shooting three people and killing two of them during anti-racism protests in wisconsin last year. many potential jurors say they made up their mind about the case at least 19 had been dismissed for a variety of reasons. am don is getting ready to launch the first communication satellites why the company says two prototypes go into orbit late next year and plans to build a network of 3200 satellites for high speed internet service around the world. in the capital of nigeria at least three people are dead after a high-rise building collapsed. it was to be 21 stories high three survivors have been pulled
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from the rubble. the pioneering psychiatrist who helped to develop cognitive therapy died he asked them to focus on current events than the childhood issues he was 100 years old i'll send it back to you. >> sue, thank you so much. pivoting now barclays ceo staley is stepping down after an investigation into the relationship with sex offender jeffrey epstein and the decision he contested that conclusion the results of the investigation is not released because staley is contesting them and this latest development took them both by surprise and didn't know that regulators conclusion was due. a barclays statement added it should be noted that the invest makes no findings that mr. staley saw or was aware of
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alleged crimes which was the central question of the support following the arrest of mr. epstein in the summer of 2019. he'll keep the pension contribution for 2022. sorry. 2021 2.5 billion pounds that support from the board is referred to interviewing him in june of 2020 on this show. >> obviously, i have the full support of the board we had a meeting and the votes cast and a support of 99% of the shareholders so we are here to run the bank and look forward to do that as con instructively as we can. >> will be replaced by a staley lieutenant who will be committed to keeping a presence as staley was. everyone now waiting for that
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report and why it reached the conclusion only just now after so long. >> the latest to fall -- thinking of leon black and apollo any sense of what he might have done wrong >> this investigation which began in february 2020 was whether or not he was fully truthful and transparent when asked by his own board about the depth of the past relationship with epstein they had to report that. >> he was the private banker >> exactly and they then investigated whether he was fully honest. staley is saying that this is the wrong conclusion and that i'll contest it. as for the timing we don't know. i think two things you would say. the statement from barclays is
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not negative on staley today and still some support as highlighted in that. on the flip side he's been through a lot with them. he included a 640,000 pound fine he had to pay accused of trying to uncover the identity of the whistle-blower it could lead to the downfall at this stage and the factors there and we have to wait and see. >> surprising. >> the fca did not report because staley is challenging the report. take a look at where we stand. off the highs of the session higher across the board. barely for the s&p 500 technology's an underperformer today but energy, consumer discretionary, industrials all helping to offset that decline and the nasdaq is higher the russell is up 2.5%
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next the ceo of lendingclub and the company's big push into digital. the stock is on a tear and earnings from clorox and simon property group and avis. dow's up 52 points we'll be right back. sales are down from last quarter, but we're hoping things will pick up by q3. yeah... uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade
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strong earnings posting last week and raising the full year guidance the stock skyrocketed. joining us in a "closing bell" exclusive lendingclub ceo scott sanborn. good to see you. >> thanks for having me. >> juaned to start if we could on the macro environment and get to the company specifics in a moment but good numbers. the market liked them. how sustainable is that on the macro side >> yeah. we feel really good. if you look at the conditions we're in right now there's almost not a better time you can imagine to start a digital bank. consumer health is very, very good consumer balance sheets are strong and capital depositive its are available. >> are your concerned rates going up could change that
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>> yeah. in our case, no. the number one market entry point is we help consumers save money off the existing cost of debt, credit cards those are floating rates so those go up and we can continue to save them money and then the second thing is loans are short duration and able to reprice in the market as rates go up. >> sort of a related question, what are you seeing as far as the loan quality down the road >> yeah. great question again, i would say the current starting place is strong as you may know credit has held up incredibly well in the pandemic our expectation is for things to normalize and that's how we price loans and underwriting. >> a lot of analyst upgrades off the back of the numbers and
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guiding to and analysts expect decent improvement going forward. if the top line keeps growing how quickly does that drop through to the bottom line given the business model >> yeah. what we have been able to do is really transform the core model. we took the online lending marketplace, what we are known for, we have added a digital bank and that is both reducing the expenses, increasing the revenue and also giving us the opportunity to do more for the customers and the effect is immediate. last quarter is only second quarter as a digital bank and you can see the results versus the prior model for driving 30% more revenue on the same volume and about $27 million more in profit and we have just getting started. >> do you think of yourselves as
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a bank or a fintech or what? that's what the market is grappling with in terms of valuation. >> i think at this point almost every company should view themselves as a tech company we started as a tech company what we're able to deliver is the growth rate of a technology company and the profit and the resiliency of a bank we're a fintech that happens to be a digital bank. >> in that sense, what do you make of the massive growth in fintech and who do you see your biggest rivals as? are you a front-runner in the fintech space or the traditional players? >> yeah. i think what you are seeing is technology disrupted travel and retail and it's arriving now to retail
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banking.s are goinhe incumbents the clients are relatively high income but they're not being served so wit well so this is a bank that's finding ways to save you money and have been off the lending and now help with spending and savings. >> good to see you thank you for joining us. >> thank you. straight ahead, tesla and other ev stocks higher today we'll tell you why in the market zone we will be right back.
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it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade [ding] and start trading today. 13 minutes left in the trading day. we are in the "closing bell" market zone, commercial free coverage of the action going into the close today we have eugene profit and chris varone, just voted the number two technical analyst o
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what's important is just under the surface how strong the market is today. s&p roughly flat but you have four times as many advancing stocks as you do declining stocks today and looking under the hood it is just big cap faang or tech but this is a broad move we see discretionary outy looki
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quarter slowdown as a hiccup and as chris mentioned the economy seems to be strong delta variant slowed off and you are in this period where
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triple record close! welcome back to "closing bell. i'm sara eisen here with wilfred frost. look at how we finish on wall street a new record closing high. got that from the dow up 94. earlier in the session you can see we wer we surpassed 36,000 first time ever and closed below that enough for a record close. s&p 500 with arecord up about .2%. a tale of mixed sectors why energy strong. consumer discretionary strong. but communication services,
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technology and health care lagged and the nasdaq with a record close thank tesla for that consumer sector and s&p and nasdaq facebook strong and amd and nvidia and weakness in google, microsoft and apple. small caps the big winners up 2.65% have not made a record high since march and a catch up day. investors are set for a big hour of earnings. results from nxp semiconductor, clorox, sichegg and avis budget with the numbers are out. on the record closing day, you general profit and chris varone are still with us. ali mccartney joins the conversation just give us a sense of how the met worth clients feel and how they're positioned after we see a very strong month of october
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a ann is how have wegotten through what usually is a super challenging month with the highs and the anxiety out of d.c. and high energy prices and last week revising down and the answer is the earnings and today demonstrates the excitement around cyclicality today we had a consumer discretionary outperforming day and what we are seeing is that there are more jabs going into arms we have 5-year-olds and up boosters people meet around the world to deliver vaccinations to the emerging world and not just the u.s. opening up but the world and we are seeing on scene
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amounts of money in the system go into services and goods and changed the approach to october making it the best month in 11 months this earnings season is surprising people to the upside both in terms of numbers, the strength of the numbers, the ability to deliver on the bottom line with cost, and that the situation around supply chain is not worse and seems to be going potentially in certain industries into the first and second quarter but definitely at a decreasing event so i think you will continue to have a really strong year and the question will be the standard that we have for november and december with buying for the holidays, is that as strong as it's been in the past with everything that's been before with supply challenges? >> chris, what is your take whether the strength in energy can continue as it has to of late >> yeah. we think it can and important to remember this is a really small sector.
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energy is barely 3% of the s&p we joke that one energy and one material sector equals an apple. so it's a small, small sector. we think internals in energy in 30 to 40 years the percent of stocks making new highs and argues for strength. i think longer term the story is quite good and the bigger picture is how long can discretionary and energy play nice together? they don't do well at the same time and looking for the message to see who gives first. >> we have a better manufacturing number curious about small caps chris said they're set up to do well are you a buyer there? they lagged and not back to record highs. >> i am. i think that's more of a risk on
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trade combined with the fact that earns were better so if you're rotating money to areas not doing as well and expect better performance it is not surprising the russell 2000 is higher and a good sign. that being said i do think that the pricing pressure that's going to come, we have sold energy so we are kind of thinking that the prices have gotten too high. the sector is too hot and going forward that's a risk that the pricing power that's been in place won't continue. >> have you been encouraged by the way in which the market is taking the stride seemingly at least? >> yeah. it is really amazing because we had a week in which japan yesterday maintained its current
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political party and probably a lot more stimulus coming there we have seen inflation numbers that obviously have changed the definition of what's tepid and transz tori and temporary and the bond market seems to be telling a different story than the equity market and the number one question i get is how do i insulate my portfolio from inflation? the answer is largely equities right? when you start to talk about how do you in a zero and increasing interest rate environment build in inflation protection to a portfolio the number one place one goes is equities in that sense it is not so surprising that the market continued to go there and then i think with less worries of corporate and individual tax and the headwinds that represents in washington given the proposal the end of the last week there doesn't seem to be in the individual or institutional side
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a time of selling pressure not e and more precious and hows that continue but i think all of this continues to support as we were saying financials, energ companies like deere and united rentals. infrastructure is crumbling. because washington is so dysfunctional it's a component
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part and won't putmp looking fo billion. q4 midpoint is 3 billion in revenue versus 2.9 billionese t. within technology. over the last couple days and the last several weeks semis
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have traded well and we industrial, mobile eugene, how are you dealing with the semi space any favorites? >> yes i like intel which is a completely different than you will hear. we own nvidia but intel is so cheap. they had a poor earnings report but if i invest in a three to five-year window we think they'll do better. certainly if i left all the money in nvidia we would have done better but always looking at growth at a reasonable price and intel fits that bill quite
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well. >> that is an interesting call given another bad earnings reaction let's get to chegg frank? >> down 20% after a miss on the top line and eps in line with estimates. the big number to watch is the subscriber number. below the estimates of 4.86 million and weak guidance. full year revenue guidance below th21% right now after a miss on the top line eps in line. also weak guidance for the full year back to you. >> on a rare miss there especially on the outlook for chegg. thank you. tomorrow we'll talk to the chegg ceo about the results. one question always is how much demand pulled forward in the pandemic online explanation exploded but
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the business was growing a lot into it. is earnings providing a good opportunity for investors? you see the misses, especially on guidance. 20% down on stocks punished if you don't miss the expectation on the outlook. >> yeah. look as you said this is sort of a rare one because we are in an earnings season where 83% of companies beat and beat by about 7% and you have to ask fundamental questions about the company when you are but what we try to do is not buy in advance of earnings but if earnings are very strong and the guidance is what we expect and the company is punished and happening this season and last season where there's a lag between the enthusiasm once people go through the numbers then that's a catalyst to get into it but what i would say is everything that we have talked about today
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in the 15 minutes shows me why i'm so focused on active management for the balance of the year the market is up 6% year to date many stocks and sectors eclipsed that by a lot. we have a world where there's unique challenges, challenges around human capital, inputs, strength of the dollar all these type of things and where comps from a year ago can make or break a company. rising tides raised all boats. we are now remembering the relationships and worshipping the relationships we have with those individuals and those mutual fund managers and etfs and those account managers and ceos with the ability to outperform into a challenging rising rate environment. >> let me bring you clorox numbers because they're out.
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expectations low and the company is beating looks like on earnings $1.14 estimate is like 1 ontd 3 -- 1.3. gross margin which was really looked at with the consumer companies dealing with higher costs 37% came in little better than expectations. and the outlook which is very key the company has confirmed the 2022 outlook looks like they expect sales decline of 2% to 6% and what they said last time. they also say they expect gross margin to decline 300 basis points with the higher costs but return to expansion in the fourth quarter and all to say it's better than expected and reflects the two things that are problematic right now which is the sales decleans postpandemic.
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the company boosted capacity and then guess what. we got vaccinated. we also learned from the scientific evidence that covid was not spreading on surfaces. so that led to a decline in that product and the household products like trash bags like kingston charcoal for grilling but these numbers do come in better than expected and the second factor is higher raw materials cost resin to put up and bleach jpmorgan analyst is lowest since the '90s for clorox because they get hit. eugene, the stock was coming into the report down 20% for the year it had gotten, underer formed staples and now jumping.
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there's clearly challenges. >> right it is still down 50% year over year in earnings and with a 34 pe this is not a stock to buy. i'm glad that the margins are better dealing with the price pressure better but this is an intel here this is a stock that did well in the pandemic actually got too aggressive and will take a couple quarters to come back. you probably got a year before this stock gets back to the line where it's a safe consumer staple. >> higher by 5%. the market liking this report. thanks so much for joining us. tesla shares hitting an all-time high and the stock up 70% this year. up next joined by an ark invest analyst so discuss how much higher the stock could go. higher 8.5% today.
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find out the treasury report on stable coins to impact cryptocurrencies like bitcoin. we're back in a couple of minutes. rl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.
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frank holland? >> hey there shares of avis up 4% after a beat on the top and bottom line. the america's revenue with threp huge beat for profit there eps $2.07. two big numbers here okay pab sy 92.8% upe estimates.
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back to you. >> thank you. now shares of tesla hit an all-time high today up by more than 8% toy.u guys getting tempted to take profits? >>eak
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that that can drive $9 trillion of revenue to the platforms within the next decade and self driving coming down to a data problem. you need a lot o actively and cathie wood mansions every day we are long term focused. >> not worried about the threat of othern batteries and we
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feel strongly about tesla. >> it is not rising for the reasons for those reasons. it's rising because -- got a big order from hertz which clears the way for mainstreamizat ion of evs why do you think it is rising? on a day like today it jumped and there's no good reason. >> i think people start to realize that the transition is hahning and it's difficult for legacy companies to compete in this world tesla is building evs as long as they've been a car company the legacy companies are just
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trying to build evs. there's advantages with evs and people start to recognize the robo taxi opportunity. every single day more data collected and the more closer we are to seeing the opportunity realized. >> switching to another company, why was th wrong to sell twillio last week? >> yeah. thinking about five years out, we see the future of hyper persona personalized and you need data and machine learning and this is the default communication platform with the messaging channels and with segment in this customer data platform we think that they have an advantage position to build
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machinery on top of customer communication and position themselves as the cloud future they have twillio engage with machine learning to communication apis to the segment data platform. we think there's upside left in that. >> wanted to ask about palintir. is this a good moment to enter >> we think about the investable ai universe in categories. first are building ai models like tesla second is with advantages and tesla in that category and pager duty and then companies that enable the deployment of ai. if you want to improve the manufacturing processes you need to get the data in one place and keep it secure and deploy and
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build the models and maintain them and this is the ability to do all three and with the release of apollo they main tan ai at the edge which is very hard to do if you think about the customers of tallantir they are military, manufacturing companies, companies that need ai at the edge and it is hard for companies to build that themselves so we see companies elect to use palantir. >> we'll have you back we want to talk about other things but thank you for joining us. >> thank you so much. crypto in the spotlight after the u.s. treasury department released the report on stable coins just in the last hour next an expert on what it means for potential regulation of cryptocurrencies later october saw a boom in spac
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the treasury department just released the report on stable
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coins last hour. the administration warned on risk surrounding the cones called on congress for solutions. let's bring in a guest tell us about what you're trying to create here because it is different than the bitcoin firms we talk to every day. >> thank you thank you for having me. yes. i'm john wu president of ava labs that's behind the first layer protocol and has certain features that's faster, more scaleable with a lower cost and complimentary to ethereum in that sense with excess capacity a lot of activity will happen on avalanch. >> how do you read the report on stable coin to mean for regulation and moves from the government and congress potentially on all of crypto >> right so -- and then also going through the president's working
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group document that just came out the firm is working through that however, appropriate and sensible regulation, i think the biggest misnomer is that people don't want that. more crypto firms want that. they want sensible and appropriate regulation and then in terms of stable coin an appropriate regulation that especially for the centralized coins, stable coins like u.s. d.c. or tether is appropriate and should have a regulation to give people comfort that they can see real asset protecting whatever stable coin it is. >> what about a china style clamp down is that likely in other major developed economies? >> well, that's exactly what you do want. a china-like clamp down. and the reason is very simple.
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we want innovation to stay in this country when china came out with the mining regulation and then transaction regulations what you saw the bitcoin mining hatch rate drop 40%. guess when it picked in the u.s. and west texas their loss is the world's gain in terms of hash rate and bitcoin mining so there's a lot of great innovation in the u.s you don't want unsensible and too harsh a regulation to take the development from the u.s in fact, this is the first time and we saw other cycles in crypto where there's actually real utility, the defy infrastructure, gaming on blockchain it's happening right now and inflecting with inappropriate regulation then you're going to lose the great developers to other
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jurisdictions where the rules are set with certainty. >> what about regulating them like a bank and mentioned in the report today capital requirements for instance should stable coin issuers be subject to that? >> so stable coins first stable coins that have a centr centralized issuer, there should be appropriate regulation. but then there's different class of stable coins. the decentralized stable coins work differently the collateral is on chain a lot of the disclosure basically and the visibility that a banker or regulator would have in a normal centralized environment is on chain and that's better because anyone can look at it so when coming a decentralized stable coin maybe more
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understanding and take advantage of the best of blockchain so that the regulation is more appropriate but in terms of appropriate, stable coin regulation for centralized stable coin where the underlying issuer is more like a bank there i think there should be some appropriate regulation. >> john, clearly you're a big believe in the technology behind this but in five year's time will we have as many different cryptocurrencies gaining as much scale as they do or will there be a couple winners? >> 8,000 or 9,000 providers, most are applications. the layer on top of the underlying protocols like ethereum or avalanche and trying to become the next facebook or twitter. an application on top of the
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underlying platform. what you will see is a new mix, new great companies and then that 8,000 will change a lot some of them frankly unfortunately will not be around because they don't deserve to be or frankly a lot of not useful coins out there and more of -- i hate to use the word scam but perhaps that component no different than the internet bubble days and the disruption that's happening i see every day as an operate or the and s entrepreneurs that want to develop on top of platforms to figure out how it disrupts their business and improve the business and save cost and that is all just beginning as we speak. >> yeah. there's a scam today
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t thank you for joining us really interesting. >> thank you. after the break, coca-cola with a largest ever brand acquisition with body armor for more than $5 million and later chip stocks surging new a new all-time high. we'll break down the mesov and whether there's a buy later on "closing bell.
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welcome back teem for a cnbc news update with shepard smith. hi. >> hi. from the news on cnbc, the covid vaccine for kids is on its way to doctors' offices. the white house made the announcement today saying that doses could be ready as early as wednesday. the fda authored pfizer's
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vaccine and the shots can't go until arms until the cdc approves it. more trouble on the tarmac for american airlines. it canceled more than 1500 flights from friday through the weekend. more today at least 400 hundreds of others delayed that's according to the flight tracker site flight aware. the airline cites bad weather and staffing problems. liftofmorning. tonight, as the controversial new york city vaccine mandate goes into effec
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buying body armor. the play here for coke continuing to push into the r y. using coconut water. high potassium numbers the category and the
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category now ten years later is 8.4 billion this year. we've helped pepsi gatorade becausnoncarbonated drinks business and talked about the takeover because he's bb there and done that. he last sold the company for $4 billion to ca- the culture to
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move faster. he is bullish to stay on and be able to help. >> i bet they fast and been in the coke bottling system since 2018 took coke took that initial stake and a decent multiple and interesting t
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why this renewed demand with a catch? >> yeah. nearly double the number of sparks in october compared to september. 57 total, the biggest monthly total before march this october was even busier than last october which is when spacs really started to take off and we started to talk about it in earnest what's behind the recent surge a lot of it is simply pent-up backlog, deals set to debut until the market froze over accounting concerns. now bankers and sponsors say it's now or never for spacs to list but the market itself hasn't rebounded in the same way that the spac issuance has. looking at the spac 50 index of public spacs looking for deals down more than 3% this year so
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as a result many of the spacs that are debuting are doing so with major concessions for investors. these include a greater fraction of a warrant for each unit sold, less time to find a deal think 15 months. and more money held in trust to protect against the activity that we have seen. guys >> leslie, thank you so much. nxp semi under pressure. reaction from an analyst who thinks the stock could rally more than 20% from current levels in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse.
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shares of nxp semi falling. despite revenues beating expectations why down 2% on semi shares surged up 14% today with a 52-week high. joining us now raji gill what is the first takeaway on nxp and performed relative to peers this quarter >> no. i thought nxp had a good quarter, good guide. the automotive business grew 50%
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year over year industrial business grew 20% year over year general rates roughly 50% of its sales from the automotive market they're a leader in battery management management systems and automotive radar, digital clusters, micro controllers so a variety of high value added semiconductors in the automotive market so, very good automotive numbers and very good industrial numbers. the stock is down about 2% i think it really has to do with the fact that on semiconductor, which is their peer, had a very strong beat and raise quarter earlier today. the stock was up about 15% there might have been expectations that the beat might have been bigger but we'll see how it trades the following morning. but the bigger picture is the demand for automotive chips as well as industrial continues to be quite strong. >> what is your expectation when
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that demand and supply imbalance might flip is it a quarter or a year or two away. >> the supply constraints will last into calendar '22 based on all of the conversations i've had with folks in the industry. there is more capacity being added online but what is interesting is that the capacity being added is strategic key areas where there is gross for instance automotive, wi-fi modules, iot capacity is not being add add cross the board. it is very strategic and so once that strategic capacity comes online for those specific growth markets whether it is, the supply situation will start to ease up abit. but the demand is so strong for automotive and as well as industrial and iot and wi-fi, that we're going to be in a supply constraint environment
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for most of the calendar '22 which is a good thing. >> so what is their pricing power, nxp and others in that strong demand environment. >> that is a question we get a lot from investors whether the pricing, their experiencing pricing whether that is fiscal or structural or temporary or something more long-term. they clearly are benefiting from higher pricing because of their position, their bargaining position in the industry however, there is a more fundamental dynamic happening in the semi industry in which the semiconductors are having much more importance in the digital economy, particularly in automotive where these cars are essentially data centers on wheels, all semiconductors so as a result and the impact of the automotive industry which is about $200 billion impact to the
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auto industry, they do not want to repeat what has happened. so semiconductors are having more pricing power and more pricing leverage and i think that is going to last. we might see not -- we're not going to see the annual price declines, 10% to 15% that we would see in semiconductors, the price declines might moderate or stagnate secured revenue commitments to support electric vehicles r g t which is capturing for electric vehicles over a three-year period over electric vehicle has to have -- and it is based on silicon carbine to allow it run on a single charge without degrading the battery. so this is a $2.5 billion
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commitment that is unheard of, these type of long-term supply agreements that we're seeing across the industry for semis that is not what we've seen historically. >> i guess one of the reasons you like the stock a buy of 268 rajai, thank you let's check in on the after hours earnings, shares of check missing an clorox and avis is rallying, clorox at 5.4% up next a look at the key reports on the calendar including under armour and lift.
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we have some more details on rivy an's plans to go public phil lebeau has them. >> they have just filed an amended s-1 and this company is moving quickly toward listing on the nasdaq under the ticker rivn at mended s-1 said they are planning on offering 135,000 shares at between $57 and $62 a share. i haven't done the math there but the initial indication is that we'll see a valuation north
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of $60 billion highly anticipated ipo because of when you look at the electric vehicle market, a lot of people look at them and say look if there is a company that would be a true competitor and i know we throw that term around, but something who could grow and become as big as tesla some day, or at least rival tesla, maybe not as big as tesla. rivy an is that company. so again an amended s-1 from rivian and we reported earlier guys, that this could happen as early as next week g guys back to you. >> the valuation north of $53 billion. phil, thank you. tomorrow's earnings calendar is jam packed results from pfizer, am gep, conoco-phillips and under armor and lyft, t-mobile and caesars match and zillow all on the
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docket we'll talk to some of them and t-mobile' mike seibert will be joining "closing bell." we have a lot of homework tonight to do and tomorrow morning. >> and tomorrow as the numbers all cross as well. looking forward to that. and of course, we're both, you in particular looking forward to central bank week and seeing if we see the rise in yields and what the announcements are going to be. interesting that it picked up quite sharp this morning and then the ten year pulled back. >> the expectation is that the fed on websdnesday is going to announce the taper which takes us to middle of the next year which they could liftoff, liftoff is the new word because they've announced the taper and when are they going to talk about higher rates, from zero, that is liftoff.
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i think any sign of being hawkish or worried about inflation could be unsettled. >> energy markets have taken the rising expectations in stride. record closes. >> we're out of time on "closing bell." "fast money" starts now. >> live from the nasdaq market site overlooking times square, this is "fast money. i'm melissa lee. tonight he's trader lineup, tim seymour, karen fiberman and dpan nathan and new details on the ipo just crossing, the ev maker planning to sell between $57 and $62 a share. we'll break down all of the details. plus digging in on deere after the company strikes a deal with a major union. but could there be more upside ahead. and a glitch in the metaverse. shares of road blocks dropping offer a system wide outage over the weekend. but we start off with another se

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