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

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estimate based on a certain slice of audits they did they may raise a lot more of the wealthy. that share of the total pie could be larger. you don't know by nature, you know the biggest dollar numbers will come from auditing the wealthy those are the folks that make the most and avoid the most. >> well said robert, we always appreciate robert frank digging through the pay force of these bills that does it for "the exchange," everybody. stay right there, though, because "power lunch" begins right now. [ music playing a fascinating discussion there at the end of the show kelly, we'll see new just a minute welcome everyone to "power lunch" this is the second day of november, election day the case for small caps, the russell 2,000 in an interday high is it breaking out in a tight range in history our next guest, says, yes. a big call on big oil. we'll peek to analysts that say
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sell exxonmobile, get it out of here as crude prices rally. put to the test, what the future of president biden's economic agenda and more may be decided by today's virginia gubernatorial race, our home state. >> yes, it is. i cannot wait to see what happens there. the dow is up .4 of a percent. almost the same for the s&p today. again a lot of round numbers we have been hitting lately, the dow over 6,000 the nasdaq adding a tenth of 1%. speaking of big moves in the market we have to check in on shares of avis budget group. they had blowout earnings. there has been a heart is run-up in shortage to about 20% within the past hour, ameritrade added to its list of securities with increased margin requirements these shares, you see, popped as high as $500 today a lot of chatter about this informed like
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wall street bets the semi etfs is getting a boost from its components. nvidia is now 100% it's doubled for january the eclipsed berkshire- hathawa. berkshire at 654 billion >> that is amazing thank you. the move into small caps gaining momentum the russell 2,000 reaching a new high today until recently, small caps were lagging, the s&p 500 more than doubling the russells return over the past six months or so so small caps have new buying power. let's bring in paul hickey, co-founder of the investment group. paul, i think you will say yesp why? >> i think there is a good case to be made for small caps here as far as the overall market is concerned, we just released our
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pros and cons report last week the pros outweighed the cons it looks like an interesting time for the small caps, expectations have come down. we started to see actual results start to improve relative to expectations secondly, as wyou were saying at the beginning of the show, small caps were in one of their narrowest nine-month ranges in history a. lot can happen in a period of nine months, but the thing is, small caps have done nothing except move sideways during this period what it has helped to do, it's digested the rally we saw in the last quarter of 2020 and 2021. when you see these prior farrow ranges in the russell 2,000 over time, what you found is when you get to this narrow of a range, it usually acts as the pause that refreshes, one year later there have been several other
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periods where we see comparably narrow ranges. one year later the russell is higher one other time. i add one other point with the russell making a new high today, you see periods where it's made a new high after six months after a new high, that has been positive, you've seen better than average returns over the following six months >> let's talk about a couple of your picks the first is not a small cap as you point out. it's united rentals, the commitment rental company. >> so you had rentals. it's not a small cap, figuring about 25 billion in market cap what's important about united rentals is they are the largest equipment rental company in the u.s. they have about 13% market share and their main customers are independent contractors and smaller businesses in the infrastructure sectors as well as they serve the energy sector so i think if you are seeing a
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period of debter economic growth, unite represent also are benefiting they're benefiting from the supply chain constraints, you run into companies not be able to get equipment that they need to purchase, they're going to rental avenues so i think united rentals, they reported their earnings last week they missed their bottom line numbers, but revenues were better-than-expected they raised that, not only were earnings up year over year, but they were also up on a two-year over year basis relative to 2019 throwing earnings relative to 2019 this year >> paul, another name you are watching is a small gambling fame what is it and why do you like it >> yes, this is a small cap name, every holdings, it's a part of our 50 attractive russell 3,000 growth stocks with positive technical patterns here what you see in the chart right now is that's similar to the
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russell 2,000 this stock has been trading in the sideways range about four months. they supply their customers are the online and physical gambling companies and while there is a ton of competition in that space, they're more of the picks and shovels types companies, where they're supplying gaming consoles and software for companies to monitor loyalty programs of their customers as well as tomonitor regulatory and compliance issues. so it cuts down on some of the man power that we've seen. but it's also what's important about this stock is they have 75% of their revenues are recurrent. one word of caution is they are scheduled to report earnings tomorrow you may want to hold off on that name just be aware it tend to be volatile in earnings and they're scheduled to report tomorrow >> paul, i think you should let that guy over your right shoulder have the rest of the day off. he's there, he's very lonely, that person.
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anyhow, thanks, palm hicpaul hickey it looks like there is one other person >> there are other people, behind the wall. >> behind the curtain. paul hickey, thanks. >> all right >> i love their twitter account, by the way. wall street is watching some key governor races today, of course, including the virginia one. the tight ra is is consider a test of president biden and his economic agenda. early voting hit a record as terry mcauliffe tries to keane fend off glenn youngkin. joining us is a cheap strategy partner at steeple are there impacts? >> there are a couple races. there are impacts for the next year there are implications for the current debate in washington over the two big spending bills. if there is a split, which is my base case, the republican winning in have a, the democrat holding on
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in new jersey, i don't think there is a big change in the political you can lus, but on the outside chance that republicans who hold both seats, i think that second bill that the build back better bill becomes really in mortal danger at that point, there are implications >> even though the governor isn't voting, this is seen as basically an opportunity for the public to weigh in on the big piece of biden's mandate that's put before them, in other words, to sort of say, yes, this is the direction we want to go, or no but ist it the fact that the bil is uncertain does it make it harder to figure out what is here does it make it because it's uncertain or in order to make sure that the in >> so, obviously, local issues play into both races a lot all right. so we got to be careful about reading too much into this but i think the take away from democrats in d.c. will be that
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there is a potential that it will be seen democrats didn't do enough they weren't aggressive enough in getting the bills through and that depressed democratic turnout. so i think when we look at turnout and see how many people actually showed up, if democratic turnout is down in both states. i suspect it will be off i think then the take away is that democrats didn't do enough. they didn't push hard enough they got to work harder to get these bills through. and that will be the take away >> is virginia a referendum on biden or is it a referendum on trump? >> i think it's more a referendum on the incumbent. one, because geographically, it's so close to the capitol so the local media across the virginia in northern virginia, it covers washington in a different way than most local media does so people are saturated with it. so people work in the federal government so there is that lemont to the
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race there i think terry mcauliffe tried to make it a referendum on donald trump. but to the former president's credit, he kind of stayed on the sidelines, didn't insert himself into the race. he's off social media, he's off of twitter he's off facebook. he has a limited access to the media compared to what he used to have. so mcauliffe wanted it to be about trump, he was never able to turn it into that so it becomes the incumbent. the incumbent is joe biden >> and if i understand the race correctly, mr. youngkin has not really wrapped himself in the trump colors, particularly, right? >> he's not a trump republican i think if youngkin wince, there are a lot of people will say, see if trump stays on the side lines, republicans can win i think that's true in some areas. virginia being one of them
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it's become a bluish state where a trump-type republican probably can't win and glenn youngkin fits the commonwealth of virginia perfectly will you go to more parts more trumpy, more red, more problem louse. >> where kelly and i both grew up, virginia is a curious state that has tilted blue but it's blue because of northern virginia, fairfax, arlington, alexandra, a little around richmond, a little in the tidewater, norfolk, new port news, hampton area but much of the rest of the state's red, right >> it is, as you mentioned, richmond, the richmond suburbs going back to my earlier comment on turnout let's see what african-american turnout is like in those blue areas. hampton roads, which has a substantial african-american base, if they don't turn out for
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terly mcauliffe. they stay home i think democrats will be really worried about 2022 and their ability to energize and motivate their base to get out. >> thank you very much we'll be watching with interest tonight. to states, new jersey and virginia we'll be watching both of those races with interest and the legislative race as well. coming up, a big call on big oil, analysts put a rare sell rating on exxon. we'll talk to them about why and if there are better energy investments outthere plus, ev valuations keep climbing but are the numbers justified? veo investors. more power lunch coming right up as an independent financial advisor, i stand by these promises: i promise to be a careful steward
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welcome back to "power lunch" i'm dom my chu. ariftta networks jumping up 20% after they post better until results. they also announce a billion dollar buyback program when is the last time you saw one of those happen? also, ararista, including today' gains, it's up 70% this year that's a big driver as well, back over to you >> incredible. >> thank you very much, dom chu.
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is ev money easy money the deal with hertz only to have them play it rivian planning to go public with white be a $55 billion valuation maybe even more after starting to deliver. wall street is ready to jump on any opportunity to bet on the ev market, despite the red flags. investors sites set so firmly on the future with their vision blurred in the present we'll discuss when "power lunch" returns. >> this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn.
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. welcome back, everybody, i'm sue herrera. here's your cnbc news update at this hour. facebook is shutting down its facial recognition system. after careful consideration, it will delaet templates for more than 1 billion people. that inry responsibility to growing concerns about privacy among users and regulators uk prime minister boris johnson
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told reporters some progress has been made during the opening days of the climate summit in glasgow. but there is a still lot to do >> we must take care to guard against false hope and not to think of in anyway the job is done because it is not, there is still a long way to go but all that being said, i am cautiously optimistic. >> and also in glasgow, a pledge from amazon's founder jeff bezos to spend $2 billion to restore natural environments it's his commitment this decade to fight climate change and in movie star news, kristen stewart said today after two years of dating she is engaged to be married to screen writer dylan meyer. she said on howard stern's radio show, quote, i wanted to be proposed to, i distinctly carved out what i wanted and she nailed it, end quote.
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that's the news update back to you. >> thank you very much let's turn to the markets, where they down graded exxon to sale and dropped it from 56 per share to 66. exxon shares hit a 52-week high earlier. they were on pace for the best year ever, they reported their best quarterly profits, the multiple is out of whack with exxon trading at a 10% premium for more, let's bring in the analyst behind the call, the managing directer of truist securities this is the battleground in some ways for the economy tell me why you don't think the premium is warranted. >> thanks for having me. again, as you said earlier on a relative basis, you know, after the stock hitting kind of as you said an over a year high, number two, oil prices hitting a multi-year high, our call is based on oil prices going down
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10% next year and thereafter, based on that, if you would look, we think there is going to much better names that hold up if you are looking at today, you mentioned earlier, you look at valuations and pre-cash field and ebitda or earnings or a pre-cash flow basis, we believe there are cheaper stocks. >> so your cheapest concerns is people will hold lower you think they basically have to think, we will get to higher oil prices what do you think they think we will because of energy transition i hear some saying it means structurally higher oil prices, some say structurally lower. i wonder if it's higher for a little while or something like that >> it very well could be, what's interesting if you look at exxon them or majors, their traditional business, as you said, it could help their traditional business, prices may be going up in the near term we think low carbon business that exxon has a little of a
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slow start versus some of its shell versus chevron and other major peers out there. so we think that business could even lag a little bit out there. >> let's also compare the performance in exxon some of the other e&p names that they've done better if they're a little more focused, i don't know if that's quite the right word but even there, there is major questions not about the share performance this year but whether the market caps are ever going to approach what they were in 2014 the last time oil prices were this high what is your own personal view on that? >> that's right. we're calling for a number of these names, your point is exactly right for a lot of the premium names, previously trading at seven or eight times, they're now make at four-to-five times. and because of the strict capital discipline that most of my e&ps are sticking to, we think they should go back to at least thosetimes and again if they would get those additional one or two times multiple, you
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could see a lot of these stocks go up another 30, 40, 50% we think is very possible on some of the more capital disciplined shots out there. >> a couple questions, if i might, number one, they have a share buyback coming is that going to put a floor under the stock, in any sense,ing in one number two, you have a price carting after 50 f. it gets down into the 50, is that a point where you might change your view and say, well look, look at that dividend, look at the price, maybe now it's time to nibble? >> i think your first question, tyler, i think it does present some sort of floor, but what's interesting is even as big as their shareholder returns sounds, even some of their peers are bigger yet the amount of pre-cash for everyone is tremendous it's really again a relative basis how much that shareholder returns. even though absolute, no question, it's a big number. we think our percentage is less than some others
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i think onyour second question as far as what could happen on it, no question that it again i think these higher prices lift out there. >> neil, thank you very much we appreciate your perspective on exxon today >> thank you. from old energy to new electric start-up rivian automotive targeting an ipo valuation something in the area of $60 billion that's bigger than honda's market cap it comes as many question the ev evaluations last month tesla ceo elon musk took to twitter with this question is it possible to start an ev company without shipping any cars and get a valuation less than a billion dollars is the ec market upsidedown? phil le beau has more. hey, phil. >> hey, tile early let's take a look at what we're expecting from rivian, this ipo could happen as soon as next week the road show began today. this will be listed on the nasdaq rivn is the ticker symbol.
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target price 57 to $62 per share. you mentioned $160 million valuation. it could be north of that let's do a comparison of rivian versus the ipo valuations for tesla back in 2010 and lucid look how things have changed over time. elon musk tweeting there about deliveries at the time of valuation. well, remember back then, they only had a few deliveries, relatively few compared to where they are now the rodster, 1,000, lucid on saturday, rivian, we put zero. they tell us they started in september. how many have they delivered we're not entirely sure him all of this in the rising valuation comes when people are looking at the global ev market in terms of where it is right now which is about 5% of global sales, overall, auto sales and where
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it's expected to be by 2030. look at that chart that's the reason you are seeing it skyrocket tesla year-to-date had 63% of the u.s. ev market it's been the acceleration from ev sales and expectation of accelerating ev sales that is the stock of the fuel moving higher so there are a lot of people out there saying boy, rivian will have a better valuation better than honda that's the market we're in when it comes to electric vehicle companies. >> so it's interesting the journal and others are pointing out, there is a lot of aspirations for all of these companies who are still in the early days and have to get the production that's the hardest part. you go back to what bernstein wassaying, it's still impress waive they've managed todo in terms of the supply crunch with margin profits they've taken ten years to get to this point. everybody else wondered how
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quickly they'll be able to get to scale you know what i mean >> well, the market is much more developed, kelly, than it was back when tesla was starting out. look, elon musk early on said, this is what we need and to a large extent, he and his team at tesla helped develop that market i mean, they really are the ones that created a lot of the ev market rivian has started production in central, illinois. it's got a plant, production, amazon, holding 20% stake in the company, which has taken delivery of electric delivery vans so the market is much more developed and it will be easier to a certain extent for a company like rivian to ramp up sales than tesla 12 years ago. >> tesla shares down 3.5% after this run we appreciate it, thank you, phil le beau, with the very latest ahead on "power lunch," we'll speak about rough patches over the next year and why you should buy every single dip.
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. hi, everybody, 90 minutes left in the trading session. let's get you caught up on the market stocks, bonds, commodities hitting all-time highs, despite weaker than expected outlooks from some of the major condplom rats today bob mpisani has that. >> we are talking about the peak supply chains. mosaic, fertilizers, they make phosphates and pot ash higher prices offsetting lower bonds because of a supply chain constraints. some customers were asking for commitments of the second quarter next year. that means they're worried about the higher prices, they're trying to lock in prices right now. the company says there is considerable upside to our case. they're say figure they can unravel the supply cane problems, that i can do better the demand is there. same with eaton, this is electric am components maker they came out record third
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quarter. robust order growth 17%. look at that, supply constraints are limiting the organic growth. same steam essentially then we had cummins, they make global parts they make elevated logistic expensings, the same problem, robust demand but they can't fet all the products out to the customers. bloomin' brands outback staik steakhouse, labor problems, we told you up 3, no 4.5. we told you commodity costs 1%, it's up 1.5% the guidance was disappointing on bloomin' brands, mosaic are down 9%. eaton is doing better. this is what we're hearing among the big industrials. demand is really strong. across the board, every
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industry they're having difficulty supplying products because of the supply constraints the good news, kelly, margin pressure is mostly being met with higher prices right now but the question is, how much longer be every the customers is that right pushing back? you saw it with ma sake. their customers are saying we want to lock in prices for the second quarter of next year. we've already had it that will be an issue. >> great, thank you, bob let's turn to the bond market it's not just avis liquidating the shorts today what's going on with the bonds >> you notice, going into the fed meeting. not only in this crunch, we are seeing liquidation of short positions looking for higher rates. that buy indeed is pushing yields down. i don't know beyond the meeting. you can clearly see interday of 10s, drifting lower. when you include yesterday's session, which had a low of 1.55%, you can see how much work we're doing under yesterday's lows something else is also going on,
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kelly, volatility. we all know about the vix, which is hovering around 16, which is in the lower part of the 2021 range. look another the treasury volatility, it's at a 19-month high this is something to pay attention to and many are growing more and more nervous that it's going to be the volatility in treasuries that potentially has the ability to knock the stocks off their high pricing perch. finally, i mentioned it isn't only in the u.s., the bank of england meets on thursday. like many central bangs, whether it's the smaller economies, australia, new zealand and norway they are finding inflation as well their markets are doing the same thing. look at interday of 10-year yields, drifting lower you include the previous day's lows this is a global dynamic it will be very interesting to see how the fed encompasses some of the recent data that was hot, hot, hot, like the employment
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cost index up 1.3%, the highest since 1990's record keeping. >> thank you very much rick santelli. all right. let's check in on the energy space, p says it's above 100 million barrels a day. after big repound. pippa according to bp comes despite air travel not fully bouncing back. supply growth is still modest. goldman sax says the global deficit is 100 million ahead of inventory data and opec meeting later this week. wti down half a percent at 83.67. brent is at 84.52. for a loss of a quarter of a percent. nat gas reversing a loss and then some, jumping to $5.53. now black rock ceo larry fink commenting on the oil and gas
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industry today saying at cop26 too narrow climate policies could actually undermine the energy transition. companies selling hydrocarbon assets to private investors to appear more green ultimately create less transparency and does nothing towards net zero. >> wow, strong words from him, in particular, thank you, pippa stevens over at the commodity desk now the s&p target, it's 4900 about 5 part upside from here. it points to volatility. they say any dips are c volatility scott, why only modest gains >> i think we have to appreciate the strekth off the lows set -- strength off the lows set in early 2020 that reflects are we clear on, it's a strong earnings growth component that's driving the
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action this year our expectation is that for growth to continue into 2022, at a decelerating rate. so that underskocores, yes, we looked for modest gains from here, but it's consistent with what we would say still room to go in the economic cycle in this post-covid circumstance. >> you think corporate earnings will come down how much, how far number one who will the multiple that will applied to that be will it be lower than it is today? >> yeah, so it's a really good point. what we're looking at is a top down arnings for our proprietary measures that gets us to 8.3%, we're not far off what consensus is. now, the path to that earnings growth is most single ding it growth in the first half married with stronger, let's call it low double digit growth in the second half. the way we're thinking about this is that weigh should expect gradually some of the supply
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chain constraints should lift in the first part of the year, which probably provides an earnings tail wind against current expectations for stocks. then we have too expect that there would be some second-half giveback on those growth expectations that ends up leaving us in this high single digit earnings growth circumstance now, critical here is that, you know, the argument is that we're losing the falling rate valuation tailwind that supported the markets in this post global financial crisis cycle, if you will and so here we expect that, if anything, at least less of a valuation tailwind supporting areas of the market like growth and potentially a little bit more of a headwind >> all right so, are there particular sectors under this scenario that you think would outperform or what does that spell? your overail thesis, what does it spell in you told me 4900 on
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the s&p 500, slower growth, still positive sales, what would do well under these circumstances? >> right so the way we expect this to play out again as we move into the first half, the supply chain angst we are feeling strongly right now begins to dissipate. in what we're arguing is na this is going to ends up favoring the value side of the style ledger and that's because economic sensitivity that's typically attributed to value should benefit from the improving sentiment around the relief on the supply chain side. in terms, what that can do is provide more conditioning in the extended cycle so at the margin, your more economic sectors should benefit. while growth can certainly play a role in this it struggles with a relative earnings growth circumstance versus value and then it's sort of in the hot spot here in terms
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of contending with, you know, the fed taper and kind of coming off the accommodation circumstance from a valuation perspective. >> tell us about the choppiness in what you see. how does that stack up with what you typically see in a year. >> so our colleague, it's a difficult circumstance, but he had developed something we called a panic you forrium model -- euphorium model let's call it a strong sentiment tool that is indicating the market's in a very much of a euphoric measure the way we're interpreting this, this tells us we should have a a corrective phase some part of next year. i think this aligns with the fed taper and how the market is perceiving steps or missteps by the fed. so what we're pointing out here is we think that investors have to expect as we go into the
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first part of '22, the likelihood of a pullback is there. on our ongoing scenario regarding an extended post-covid cycle. we want to use such pullbacks opportunistically. >> thank you for your time we appreciate it. and the ecofriendly sneaker maker alla a-bird. we break it down next.
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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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all right. ecofriendly shoe company all a-birds is setting to start tomorrow with the ipo. does sustainability sell in the end? we look at some of the confusion and how it may impact all a-birds trading, leslie. >> hey, that's right sustain aeblable, sustainability, the various iterations mentioned 218 times in all a-birds ipo perspective the purpose-driven footwear striking an ipo while the trend is hot sustainability and environmental
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issues front and center for investors, this week, this year, over the past few years really, increasingly, fun managers are looking to go through the branding for clues as to what might give them sustainable returns as well as that esg check the box that they're increasingly required to do. an example is when all a-bird called itself the first quote sustainable public equity offering, this month, it would hold itself to rigorous standards to reducing and informed investors it's so-called spo could haunt them according to eft now after a brief pause in the process, all-abaird walked back some names, changing the nomenclature to be sustainability principles and objective itself framework keeping the acronym. all a-bird pricing tonight at a
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2 billion valuation, the highest end to equating to nine times 2020 revenue fellow schumaker crocs has sustained top line growth rates. a slight premium for all a-birds. although a slightly different model. >> let's switch gears here, are you covering a big move in avis and have numbers on the short squeeze there, what are they >> it kind of ties into the all a-bird story, the reason avis is jumping is the hint they could be purchasing more electric vehicles for their fleet now, shortage, chris, not a mean stock. we talk about this as a mean stock, you can see doubling today, not every mean stock is a short squeeze, avis budget is certainly considered a short squeeze according to new data, they already have 100 out of 100s on the short squeeze metric prior to today's move. today's move, however, is really
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hitting short sellers hard with 4.29 billion in market-to-market loss just today alone. the year-to-date market-to-market on paper losses is up to about $6 billion for those brave in off to short this stock. guys. >> yeah, they can blow up some funds if they're not careful thank you, leslie. the corporation in robotics etf has seen pretty good gains over the past month. our trading nation team answers the questions next the questions next >> [crowd cheering] how's sanchez looking? with your qb's increased spin rate, any pass with a launch angle of at least 43 degrees puts sanchez in the endzone. you a data analyst or something? an investor in invesco qqq.
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welcome back time for power movers. let's begin with generac. buying ecob for $77 million. still up 111% this year. simon property higher. mall operation or the say improved rates in the quarter and an increase in shopper traffic. up 6% today. dupont is in the green the chemical maker cutting the full-year outlook.
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the company also agreeing to buy specialist rogers corp. just over $5 million. you can read more about dupont in the news letter of jim cramer now trading nation. >> we have our eye on cathie wood with a good month this year a fund is making a big reversal over past four weeks lower today but up about 11% as companies invest in robotic technologies did gains driven by tesla and might not be the only winner in this bunch we asked todd gordon and ava ados for top picks todd, for consumers to dial in to the meta verse they have to have an eyewear? >> that's right. a holding that's a small market cap company is vusic
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it was on a podcast. very interesting popped 40% since the facebook announcement going meta month over month rotation this is the strongest. they are a glasses company medical uses for surgery procedures also workplace applications. another boost at a conference and a big flood of orders from australia, new zealand company's negative they have high sga expenses but estimated to grow 30 next year and 40 million by 2023 watch this one. >> interesting the stock down 11% today ava, welcome you have your eye on pallantir
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>> that's an entrepreneurial company. i like it because of the ceo and i can't think of a better defense company to benefit the new infrastructure bill and today's environment is a counter terrorism and defense and that's the best platform to serve the intelligence community so i think it's a big winner and into 2022 >> at $25 and change thank you. for more trading nation head to the website or twitter. >> thank you. keep it here we have more "power lunch" straight ahead and now the latest from trading nation.cnbc.com and a word from our sponsor.
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♪ say it's all right ♪ ♪ say it's all right, it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ now listen to the beat ♪ ♪ kinda pat your feet ♪ ♪ it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ oh, it's all right ♪ the squid scam game over for "squid game"
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crypto dom chu is back. squid? >> squid you may recall on friday that story of the latest crypto to turn heads the squid token supposedly a token to play an online version of the game that's worldwide notarity with the series on netflix. despite the numerous warnings from just about everywhere about the legitimacy, the liquidity and tradability and whether or not it was tied to any shred of the netflix franchise. the profits shrivelled to nothing and fast and looks like the folks made off with the money. according to coin market cap the token worth a couple pennies last week to a high of over $2,800 apiece and then crashing
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to fractions of a penny currently. investors seen it before it's called the rug pull and some say it netted $3 million plus in the haul for the anonymous organizers and it's at cautionary tale of corners of the crypto world are havens for fraud and deceit it is crazy. crazy story. >> what else has happened today? netflix to session highs after bringing mobile game i think tomorrow there is something here in the future to take the gaming platform and make legit, you know, opportunities to use crypto with squid coin and this is an example of the marketing opportunity is there if -- it is a trustworthy platform. >> what about what's happening right now with this whole meta rebranding from facebook
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i think to farmville they were buying and selling virtual sheep and livestock back in the day the meta verse enables this hypothetically in the future. >> you are -- sufficiently caveated all right. thank you for watching "power lunch." >> "closing bell" starts right now. hello and welcome to "closing bell. i'm sara eisen here at new york stock exchange another set of record on wall street with the russell 2000 joining the all-time high party. the dow up triple digits. >> i'm wilfred frost look at when's driving the action we are seeing massive moves off the back of results. avis and under armour are soars. crypto's having a strong session. ether with a record high and bitcoin with a boost president biden is expected to hold a news conference at this

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