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tv   Power Lunch  CNBC  November 10, 2021 2:00pm-3:00pm EST

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but i am optimistic on the long term investment on nasdaq, and even s&p >> owen, we will leave it there. thank you for your time today. we appreciate night thank you. >> that does it for "the exchange," every a very busy hour about to get busier, with "power lunch. huk huk. all right, thanks, kelly, we will see you in just a moment here welcome to "power lunch," i'm dominic chu in for tyler mathisen this afternoon. here's what's ahead on this show 30-year highs. we are witnessing the biggest inflation surge in three decades. it could be a game changer for your investments we will have your game plan coming up. fully charged. riskian shares are soaring in the biggest ipo of the year. we will look at its high octane valuation and whether it pose as real threat to traditional transportation. and, taking a swing. callaway golf has a birdie's eye view, if you will, of the goble supply chain and inflation as
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well the company just upped its financial outlook that could be sending a big signal to investors about the supply chain. we will talk to the ceo, straight from thehorse's mouth cally over to you. >> hi, everybody, two big stories, riskian and inflation, the riskian shares opening a hour ago are well off their highs but back above00s. we got as high as $110 f memory serves and we are currently at 100 and change now to the stock market and its reaction to the hottest cpi readings on an annual basis since 1990 the jar afternoons are pulling back the nasdaq down 1.4, actual low down more than the dow today, shedding 225 -- on a points basis i mean gold hit a fresh high of 1870 an ounce. highest high since june. bitcoin surging. some are using it as an inflation hedge. just short of 69,000
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pulled back from that level, still up near 68 a breakdown of the cpi report shows energy up 30% over the past year, used car prices up almost that much, meat, poultry, fish and eggs up nearly 12% year on year. the implications are far reaching from the fed, to corporate america, to the american family. steve liesman is here with more. >> ian shepardson described today's inflation report as grim, and more to come inflation blowing past expectations year over year rate 6.2. highest since 1990 core at 4. highest since 1991. it is not only high, but continuing the rise at a time when there was hope and forecasts it would show itself to be more transitory that word out of the window. it is spreading, gains in house,
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medical costs and used car prices, up against after easing last month andrew hunter at capital economics writes the biggest sign for the feds should be signs that longer lastin cyclical inflation pressures are continuing to build rapidly. for average americans, the government's reported that real or inflation adjusted weekly earnings declined nearly a percentage point they remained up from before the pandemic but declined in seven of the past nine months. inflation is a political issue as wage gains are failing to keep pace with inflation for investors, are profit margins as input costs are rising faster than they can pass them along to skpumers and whether the fed is going to have to accelerate tapering or rate hikes. >> as we look at these numbers, there is a strange dynamic in the market with regard to rates. we did see them shoot up because of the bond option earlier this
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afternoon buchlt there is in reason why, an explanation for how you could see inflation prints like we have been seeing for months yet still have ten-year yields shooting up to about .5%? it seems like there is a disconnect somewhere. >> i mean, unless you think the fed is going to take care of it, dom, right and how would they take care of it by raising rates, finishing the taper sooner, taking care of -- and then raising rates sooner, and possibly acting to slow the economy down very fast that would explain that flatter curve probably best of all, that you have higher rates now, you are looking at about 50 on the two-ier. look at that -- let me give you a fresh print. 60% of chance of a june rate hike that goes back and forth from july being the odds on to june being the odds on. today the way the market reacts, it brings forward that first rate hike to union and kind of
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sort of thing about may. >> as inflation continues the rise in nearly every area of the economy, what does it mean for the stock market are there names you can buy that may be inflation resistant or even benefit where high pricings won't dominate the outcome or performance. let's bring in the vice president and portfolio with rock lin trust greg, you heard steve's report these inflation numbers have been troubling for a lot of investors and a lot of every-day folks out there. how exactly is the market going to be somewhere these folks can turn to if they are worried that inflation persists >> yeah, thank you for having me i think, as pointed out, these inflation numbers are pretty scary but you have to be impressed with the market's ability to digest theme. we are only 1% off of all-time highs. as point out, interest rates are moving higher today. but they are still at a low level, around 150, which i think if we were thinking if inflation
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were reading this hot we would be higher than 150 n. terms of finding places to hide within the market or avoid the discussion, i think there are years like health care and there is also areas where higher prices actually benefits business models, things like visa. >> visa -- why visa then it is a consumer driven name is it the idea that a company like visa benefits no matter what so long as there continues to be transactional spending is that the reason why >> yeah. you hit the nail on the head the consumer is actually never been in a better position. the consumer right now is flush with cash, unemployment is declining. we saw last friday's job reports. u.s. consumer and the worldwide consumer arguably hasn't been positioned this well in a long period if you are talking about visa and other companies like mastercard you are really just positioned to benefit by things going through the system at higher price. >> you mentioned health care what part of health care specifically the insurance side of things
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the actual operators, the facilities what is it -- is it drug companies? what exactly is the inflation play there >> i think, generally speaking, it is just that health care is not a hot button for inflation it's not materials, it's not financials, it's not energy. within health care you are not really having quite the labor shortage situations that you are having on the row tail side of things with health care, it is really you are avoiding inflation discussion and also health care has been lost amidst the inflation discussion. >> greg, it's kelly. a quick quarterfinal question here as we look at the nasdaq today in particular. i know you said we are only 1% or 2% from the highs do you think there could be a bigger reset if bond yields, inflation, if that all proves persistently high? >> absolutely. i mean, the last part of your question was actually the key ingredient, was persistently high interestingly enough, you would
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think that these high readings would be doing a lot more damage to the stock market already. that speaks to the communication of the last six months on-flation was not a surprise. we knew we were going to have scary numbers in q4. here now we have them and we are not reacting with a lot of panic. the question then becomes does inflation stay high enough that it does economic damage next year as of yet, stocks are pausing and saying worry not sure yet that they do on the other side we look to the fed to handle it if in fact we see higher inflation. >> greg, we will leave it there. thanks for your advise today. it's mixed day for the ev stocks as investors try to digest the newest entry into crowded field. riskian hitting the market priced at 78 for the ipo opened at 106.75 right at the $100 per share market it has some cars on the road and
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has roughly the same market cap as gm. with more on riskian and threat it does or doesn't pose to traditional transportation let's bring in joanne miller of axios. have you been able to drive the r riskian? >> i have. it is impressive, for a first-time car builder, i was impress with the quality and the design and everything. >> you were over at forbes how would you reflect on that experience, your experience driving riskian and the valuation the market is assigning this company >> clearly, the market is betting on the future. we have been talking about electric cars for a very long time they are finally coming. riskian is a fresh name, someone other than tesla, to invest in there have been a lot of ev companies going public through
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spac transactions. riskian went through more of a transcription ipo. really, we can't forget that riskian hasn't really built any vehicles yet they have had a handful that have gone out to customers they are inexperienced and unproven we really don't know how well they are going to do if you do recall, tesla struggled a lot with producing cars in the beginning. >> it has been a struggle. i am sure elon musk would say it continues to be a struggle today, the manufacturing piece of it as they are quickly trying to get up to scale as all these players enter the ev space, joanne, do you think that makes tesla's lead all the more significant or will they be able to take all the learning tesla has done, $12 billion in capital, and expand in a fraction of the time? >> i think the latter is probably true. tesla led the way and a lot of companies, including the traditional automakers, learned from tesla you know, for the first time tesla now has competition.
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i think riskiariskian has a loto prove yet. so far out of the gate they are doing pretty well. i think the thing that's different about rivan that we need to remember, they have a two pronged strategy they are launching a ev truck brand and they are going to be selling their electric vehicle platform to fleets, most notably of course to apz, which is a big investor in rivan. i think where we are going to see the biggest inroads to electric vehicles is going to be to commercial fleets rivan has the biggest fleet of all, amends. >> joanne, it's dom. i wonder, given the history that you have had recovering what we would call traditional detroit, traditional auto, and seeing what you are seeing today, i wonder what your take is on all the comparisons we and others in the media or elsewhere around
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the country, around the world, make with regard to comparing companies like tesla and fisker and poll star and rivan and others to games like toyota and gm and ford and volk wagon is there something we should be doing differently? is it a fair comparison look at ev makers the same way we do traditional internal kbungs engine vehicle makers out there? >> i think if you asked gm and ford they would say it is not fair at all. of course. right? but these guys make their money -- the traditional auto makers are making money on traditional vehicles, still, and it is going to be a difficult transition for them to move into evs. the benefit that companies like rivan and some of the other names you mentioned is that they are starting from a clean slate. and that is a big advantage. what they are lacking is experience so i think in the coming years we will find out which is more important, the clean slate or the experience >> that's a big debate for sure,
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coming up right now for investors. thank you very much. we appreciate it. volvo outlined ambitious ev plans but this morning the ceo told cnbc that the ev infrastructure overall is not ready for the wave of vehicles that are coming. diana olick spoke to him at the u.n. climate summit in glasgow that's an interesting conferring can we support all of these charging stations? >> exactly today volvo, which just went public announced it is signing on to the glasgow declaration a commitment to phase out fossil fuel vehicles in leading markets by 2035 and globally by 2040 the industry said it needs to develop cars now that it will sell five years from now because he is vinced consumers will ultimately prefer electric cars? i think that's the bouty of electrification. it is not just solving an
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environmental problem. it's also developing better, more attractive cars which will of course then speed up the whole process >> if that ev goal is reached by 2040 by the new signatories as well as existing pledges then one out of every three car stales would be electric but samuelsson warns, the infrastructure needs to catch up. >> i think we need to see action from energy companies, how are we -- where are we going to get the energy to charge awful these cars it cannot be carbon. i don't think we can sit and wait until we have a lot of solar power in the grid. this has to be a process >> ford and gm signed the pledge as well. toyota and volkswagen did not. dom? >> diana olick thank you for that, from glasgow. coming up, the ceo of and a half tas semi is making a big
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bet on a new kind of chip. will it help solve shortage problem? we will find out. keeping with the chip theme, a working lunch with the ceo of intel. can his farm boy roots help him reclaim intel's dominance. includes, the ceo of callaway golf has a iq vunueiew of the supply chain. he just upped his outlook. does he see something othersdown don't? stay with us trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do.
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welcome back the semiconductor stocks are pulling back today after soaring over the past few weeks.
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nvidia and amd down 4 to 6%. all this as the chip shortage remains in pretty full swing our next guest may have a solution and a half tas makes their chips out of a different product despite reporting $5 million in revenue they were valued around $1 billion in their spac debut last month joining us now, cofounder and ceo gene sheridan. welcome. >> thanks for having me. >> are you the only company working on this newer technology >> we are not the only, but we are the early market and technology leader. we have the most advanced, integrated and highest performance version of that technology. >> what is the implication if you are able to use this and provide it more widely than the traditional sol conchips >> a number of big implications. we can produce up to five times more chips per waver the semiconductor world is
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constrained by waivers you can also upgrade older fas. the bigger benefit is the energy savings. we make electrical energy 40% more efficient, lower cost, faster charging, and smaller size and really the whole world is about to move from fossil fuels to electric energy we are going to make that transition happen even faster. >> would you say you are a rival of the traditional chip names? >> in some ways, gal yum nitrate is popular in l.e.d.s and displays n. wireless data like 5g bay stations. we are going to make it popular in power electronics which is a specialized and huge field we are going des place silicon in the power space to make it lower cost and faster charging. >> it is dom here. we just showed some of the
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competitors out there, larger than yours, more established players out there who have a lot of size and scale. it took them decades to get to that point what is the scaleability how fast can you actually ramp up the production capacity, capabilities, and product spectrum for this kind of technology at a company like yours? >> great question. we have done this only in seven years, which is a relatively short time as you are implying we did it because of a deeply experienced team we spend our whole careers, decades in the space we know it extremely well. we produced something that's highly integrated. we are integrating power an long, interlogic circuits into a single chip that makes the entire system cheaper, smaller, simpler, faster and more efficient. it is a compelling technology story. also as you bring up, very scaleable. we simply make larger versions of these chips to handle different higher power applications today we are dominant in powering fast chargers for your lap tops and
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phones, up to three times faster charging in a shawler size, later weight now we are making higher powered versions of that going into began based data centers, solar inverters and electric vehicles. it is a scaleable business and the technology we have allows us to deliver that in a short period of time. >> if i could follow up on that. we have an electric vehicle theme today because of rivian. how important is the ev space? is it going to be a big part of your strategic plan going forward? >> it is the single largest opportunity. it is the longest to penetrate because it is accelerating but still three to four years to develop a new ev we are delivering similar to the phones we are going to be up to three times faster charging with half the size and weight. we will also make all the electronics in the car more energy efficient which means the battery will extend the driving range of the car conversely, for the same dringing range you can cut size
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and the cost of the ev by extending range, faster charging and lower cost, those are all big factors in driving the acceleration of adoption of evs. >> speed is key for many of those markets there. gene of and a half at the. thank you. thanks for having pea. markets are lower right now for the second straight day. those inflation numbers could mean the fed will hike rates sooner rather than later. look at downtown prices. an intraday spike around 8:30 eastern time when the cpi number came out another record high getting to just under $69,000 that's thear mk there. we will be back with much more on the markets just ahead. stay with us on "power lunch." [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades.
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high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. welcome back i'm rahel solomon. here's your cnbc news update at this hour. the rebounding labor market helped reduce the nation's budget deficit in the first month of the government's fiscal year the treasury department says it fell $119 billion in october,
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42% from the same month last year a surge in payroll tax payments helped the government's receipts rise by $46 billion up 19% from last year, a record for the month of october. the justice department is suing uber over wait time fees for passengers with physical disabilities the suit accuses uber of reasonably modifying its policy for passengers who need more than two minutes to get into a vehicle. uber tells me those fees were never meant for users who need more time to get into the car and now automatically waves fees for disabled passengers and calls the lawsuit disa pointing. a ceremony at the reopening of a kroger supermarket where 15 people were shot in september. the own store's manager says it helps restore a sense of normalcy. let's look at stocks which are at session lows right now.
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a story of the day, rivan. priced at 78 opened at $106.75 hit a high of 120. and trading right around the $100 mark. coming up, we will get you caught up on all the day's movers, including callaway golf. we will ask the ceo how 'she dealing with higher prices and supply chain problems. stay with us
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a $500 prepaid card when you upgrade. call today. welcome back 90 minutes left in the trading day. we want to get you caught up in the mark the stock, bond, and commodity markets all reacting to this morning's inflation numbers. we are going to get on read inflation and the supply chain with the ceo of callaway golf. let's begin with bob pisani on the markets, rivian's latest trade and the stocks most and least exposed to inflation >> rivian tells me the electric vehicle revolution is here on the green tidal wave the green revolution and electric vehicles coming together in a big way. this is like the greatest fomo play of all time think about it, $1 million in revenues, $80 billion market
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cap. inflation is an interesting question for the stock market. let's move on to this inflation story. stocks represent a claim on future dividends and earnings. and because companies can and do raise prices to adjust for inflation, stocks can be an excellent hedge against inflation as long as it occurs in moderation. that's the keyhere a study by jefferies indicates that stocks outperformed inflation 90% of the time when inflation is below 3% and rising however, during periods of high inflation, companies may lose pricing power and returns can suffer from 1961 to 1981, for example, a period when inflation averaged 7% a year, stocks, on average, returned about 6.6% a year so the inflation-adjusted annual return on stocks was a negative 0.4% look at that, there are the effects of inflation the problem is high inflation reduces the present value of cash flows that are expectsed to
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occur in the future. cash flow growth is really what powers the stock market. remember, sectors that usually do well in very high inflation environments includes energy because oil companies for example, can raise price he is reits also tend to do better because they raise rents as well sectors that tend to underperform including technology, which of course are growth stocks, that's an issue for them they have very high expected cash flows that might be worth less and finally banks, because inflation erodes the present value of loans you can see sectors doing weak today are technology stocks. the future cash flow is worth less, sforz, apple, microsoft, and nvidia all weaker. >> it might explain some of the selloffwe are seeing specifically in the nasdaq right now, bob >> now to the bond market overall, custom is grappling with the inflation number and a weak 30-ier bond auction
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rick santelli is tracking the action from the cme group. rick >> you talk about a tail wagging the dog, 5.5 basis point tail on a 30-year bond auction what does that mean, the auction went off at 1.94%. the when issued market was trading 1788 percent, 5.5 bassis points normally a tail at 1.5 is bad. 30 year bond auction was definitely not good. it reached a height of 196 big u-turn even at 191 it is up 11. why the u-turn you can see it in the two year note as well, right now at 48 basis points, up half a dozen. they were as high as 50. i will tell you why. stocks stocks buying treasury, that channel, is in a layup when stocks become a bit nervous or investors a bit nervous holding stocks
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that is why we see the u-turn. and remember, resteepening of the yield curve as you see, 30s minus twos it skyrocketed, steepened dramatically that fueled another buying channel into the dollar index, which is on pace for its highest close in 16 months dom, back to you. >> lots of gyration inside the macro markets thank you rick ruth bader ginsburg. oil closing for the day and snapping its three-day winning streak pippa stevens is at the commodity desk with the latest >> oil coming under pressure today amid a stronger dollar and after the latest inventory report from the exia, which showed a third straight week of rising stocks. crude inventory rose by 1 million barrels. although this was lower than wall street's expectations pti down 3.7% at 81.02 brent crude down 2.9% at $81.35. this pullback also follows mounting political pressure to curb rising energy costs as we head into winter
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the biden administration continues to say they are monitoring the situation closely as well as some of the tools at their disposal looks like, dom, oil in a bit of a holding pattern here until we get more clarity on that front back to you. >> near multi-year highs pippa steven thank you. now on to callaway golf. shares are higher today on strong earnings, a surge in revenues and an upbeat outlook but the company, like many others s dealing with higher prices and the supply chain squeeze. let's bring in callaway golf's ceo chip brewer to get his take on all of these key issues as well as the golf business overall. always great to have you with us can you tell us a little bit about what you are seeing with regard to the supply chain and inflationary pressures we have been reporting so widely on? is there any end in sight. >> dom, great to be with you certainly, supply chain pressures have been a theme for the last 18 months, right?
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it has been one challenge after the other with increased friction in logistics and increased costs associated with that you know, different countries and environments going through covid shutdowns and the challenges associated with operating in that environment. but i feel like we have weathered that storm rather well, and we've learned a lot over the last several years. i actually feel more positive about the supply chain looking forward than i have in some time also going to be, you know, continued friction, and some cost pressures, but the volumes that we are enjoying and the demand outlook for all of the products in the callaway portfolio is so strong that we are, you know, outrunning those other pressures. and yes, we see some inflationary pressures what you are hearing about in the environment, we are not immune to.
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i don't think anybody is, in particular but, you know, again, with our particular categories, we are able to take price, and we are also enjoying these high operating leverage numbers where u know, it's working out quite well for our shareholders and our business at large. >> chip, i mean one of the things that has been interesting about this business that you are in is whether or not you can actually get product out there to sell. the local golf pro shop where i'm at right now cannot get enough inventory on their shelves to set you can see it there are empty shelves everywhere have you missed out on sales other companies this season said they have taken a hit because they could not sell as much as they wanted to is that an issue for callaway golf and others in the business. >> dom, i guess you could say it's an issue, but it's really a case of looking at the world with the glass half empty as opposed to half full our revenues are at record
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levels the industry is up 50% over where it was in 2019 you know and we are up significantly year over year, we are driving massive growth, and the outlook is so positive you know, we have added capacity you know so, yes, supply is not keeping up with the demand that we have never seen before, but the outlook for the demand looks very solid there are more engaged golfers it's hard to get tee times and some of the product is going to have a little bit of a longer wait but we don't think we are going to walk too many sales it's not like i was going to buy a golf club but because it's a longer wait, i'm not going to do that you know and we're pretty pleased with the outlook for the market right now. >> chip, if i could switch gears and ask you about top golf which is one of the greatest entertainment experiences -- my
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version of entertainment -- it is enjoyable how big can it get how many more locations should we expect? will it always be part of callaway >> we are thrilled to have it part of the family now we think it transforms our business and the strategic nature of our business we are really the leader of what i like to call modern golf now that's the traditional golf element where we have that leadership position in our golf equipment and some of your apparel brands, but also how people like yourself and, you know, more significant addressable market is going to experience the game going forward, which is offcourse golf it's totally accessible. it is going to bring a lot more people into the game it's a lot bigger market in general. you know, we have a very strong leadership position there. we will have scale advantages within our space we will have a reach advantage to golf consumers of all type.
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to answer your question on how big it can get, there are -- at the end of the year, there will be 70 owned and operated venues within our portfolio we are going to add ten a year and we believe that we can add up to 200 of those in the u.s. >> wow. >> and then more -- much more than that internationally on top of it. >> wow so much more to come i will say, it does get people interested maybe not me there is no hope for me but in taking golf lessons. they can play like dom some day if they are lucky. chip thank you for you are time today. >> my pleasure. >> chip brewer is the ceo of callaway golf. witness resorts, royal caribbean and trip adviser all announcing ceo departures just this week. are any of these stocks a buy now as new leadership takes over. then a working lunch with the ceo of intel his company has been passed by rivals like nvidia
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welcome back to "power lunch.
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i'm seema mody a series of high-profile departures in the hospitality world in the last 48 richard feign stepping down. witness's ceo stepping down in january. what do the leadership changes mean for shareholders? let's bring in some analysts boris, when you hear about three well regarded ceos from one industry leaving you start to think, is this the changing of the guard for an industry that's ripe for disruption? if you are a shareholder what should you be thinking >> the change in leadership means that the stock itself has to be looking forward to a positive environment the only one amongst those three is trip adviser. we are coming off post covid they should get a tremendous post covid bump. the addressable market is $1.2
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trillion there is ample room for them to grow stock at 50% of its highest. ample room to go up. to me that's the best bet amongst the three of them. >> ma, each of these companies play a different role in the hospitality sector cruising, casinos, online travel when you look at valuation growth metrics and their profile, which name would you be warming up to? >> sometimes the companies with secular head winds it is difficult to buy into one of the weakest sectors of the market thinking it can show mean reversion and rally because of a ceo change also going to be volatility. for my nickel i like royal caribbean. rcl. the stock has been range bound for eight months pulled back a little bit in the last few days. it creates a good risk/reward and reshers head and shoulders pattern. i think he will rag back up 98 could help this stock start to accelerate it is going to be difficul
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sometimes to think this is the magic tool, replacing the ceo. i will leave it there. >> leadership changes always bring up interesting questions, richard feign reiterating he is stepping down as the ceo but staying on as chairman as the cfe succeeds him for more trading nation, head to our website. follow us on twitter. seema thanks up next, a working lunch with the ceo of intel. can the company win back one of its most important customers. >> pat gelsinger thinks so it is at the heart of his turnaround streaming. the nasdaq is now down more than 300 points or 2%, by far the underperformer we are back in a moment. and now, the latest from trading nation.cnbc.com, and a word from our sponsor.
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there are some big changes in the world of semiconductors as cloud giants redefine what
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makes a good data center chip and new computers push the performance of performance in battery life can the former king of chips reclaim its glory. >> pat gelsinger started working at intel when he was he was an 18-year-old farm boy out of pennsylvania he eventually became intel's chief technology officer he was forced out of intel 11 years ago out of a leadership transition i asked him about those pennsylvania roots >> it was very much this highly, you know, homogenous germanic pennsylvania-dutch farming community, hard work a lazy day was you didn't have to get up to milk. you could sleep in until breakfast at 6:00 a.m. as opposed to being in the barn at 4:00 a.m. hard work. one time i was with all of my
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uncles my dad was one of ten. and they're all around at a family reunion i look at the table. not one of my uncles has all of their fingers. you talk about hard work it's like, yeah, this is hard work but it was also this deep values-based environment where a firm hand shake, your word was the bond >> well, as intel's ceo, it's a good thing pat is familiar with hard work because turning intel around is going to take a lot of it, if it's even possible. wall street is giving him almost zero chance of success now about a 15, 20% stock surge away from equaling intel's market gap his turnaround plan, yes, it's audacious. he laid it out for me in detail a couple weeks ago but between fixing intel's manufacturing mistakes, spinning up new products and graphics and making chips for other companies, he think he can
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actually win big companies like apple. >> i believe i have two ways to get apple back one is foundry because right now they have a very limited supply chain. and if i have better process technology and i give them a capacity alternative, that's pretty interesting to anybody. tim cook, he's a supply chain guy, he knows how this works and second is build better products if i have either of those available to them, they're going to make a pragmatic decision at some point they're very good, and if we're good enough that we have better products and a better process technology, i'd hope to win their business at some point >> now we had the second installment of working lunch next week i've got another chip ceo. pat gelsinger's attempt to turn around intel is going to be the defining story of tech the chip experts who i talk to,
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they give him maybe a better chance than the stock price right now would indicate >> wow, amazing. >> it's pretty crazy just to think. it's still a dow component it's still, in my mind, the name i most closely associate with chips from a brand perspective only because i've been doing this on wall street since '99. but, my goodness, nvidia, amd has surged >> amd is almost the size of intel. but nvidia is probably triple it now. >> it's in the 600 billion market cap range but right now it's an interesting time when capital's not that expensive,and there's this need for capital buildout in chips whether you're talking about foundry building chips that other people designed or if you're just talking about chips in general so he thinks that he can seize this moment to build out that capacity at really advanced process. >> we love stories we're journalists. we love stories. the story that's being told, though, by companies like nvidia
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or amd recently have been around words like metaverse, like cryptocurrency like self-driving cars you wonder if pat gelsinger has a story that he needs to tell to get people excited about that particular grand again >> he's got stories. they've got a self-driving unit themselves that they've bought it's just that nobody wants to believe intel right now because the old story that intel told doesn't work anymore but will we have new proof points >> i'm just thinking about how many times i've woken up at 4:00 a.m >> not milking cows though [ laughter ] >> for an exchange every once in a while. thank you very much for that working lunch. well, president biden is hitting the road to push the infrastructure bill, he's also talking about inflation as well. we'll tell you what he's planning to do about ilar t te on "power lunch" will be right back
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salute to veterans veterans day terry bradshaw: hi, i'm terry bradshaw rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this veterans day, our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor our veterans, and those who are no longer with us. rocky bleier: to all of our military serving around the world, thank you for defending the many freedoms we enjoy. terry bradshaw: tune in to salute to veterans for discussions about the issues our military veterans face daily. salute to veterans presented by sap, navy federal credit union, verizon, visit us online at www.salutetoveterans.org if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades.
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for smarter trading decisions, get decision tech from fidelity. welcome back to "power lunch. president biden this afternoon is heading to baltimore to push the bipartisan infrastructure deal that will soon become law our own kayla tausche joins us now with more on the president's sales pitch. kayla? >> reporter: hey, dom. against the backdrop of the port of baltimore, president biden today will tout the $17 billion in the deal to invest in ports as the administration works to unlock the supply chain and get goods moving more quickly across the country. but the projects that biden will
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praise today underscore that these will not be quick fixes. first, a tunnel expansion by csx that will allow for double-decker container transport from the port underneath downtown baltimore. that's been in the works since 2016 after a few false starts on funding, the trump administration awarded its first federal grant in 2019. the project breaks ground this year, and it won't be completed until 2025 the second project is a $160 million investment to upgrade the marine terminal and buy new cranes and that investment was announced in december 2020 senior administration officials say they're spending the next 45 to 90 days identifying and prioritizing port and highway projects and opening up grant programs for submission. so the money can go out the door once president biden signs the bill into law, which he hasn't done yet, dom. >> so, kayla, the president is also addressing inflation today for good reason. blaming a lot of it on energy
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prices what can the administration actually do to try to combat those rising energy prices i see them at the pump myself. >> well, dom, we could get some movement on that as soon as this week among the options the administration is considering, i'm told coordinating an emergency reserve with allies in asia and europe to potentially help prices. a senior administration points to the eia outlook this week as evidence that prices should moderate on their own in the next several months but that the white house feels a real impetus to alleviate near-term prices and to do it quickly dom and kelly? >> all right, kayla, thank you very much. before we go, stocks are near session lows it's a tough day for rivian. >> 300 points down for the nasdaq >> probably one of the worst performances we've seen in about four to six weeks.
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it debuted on the public market at 10675 a couple of hours ago it's below a hundred right now it's even below 99 >> i was looking at microsoft and apple, both down session lows 1.5 to 2% it might be interest rates, might be something else. still, "closing bell's" got a lot to talk about. >> thanks for watching "power lunch," everybody. "closing bell" starts right now. a lot to talk about. welcome, everyone, to "closing bell." i'm sara eisen here at the new york stock exchange. red hot inflation translating into red screens on wall street. losses are accelerating throughout the session the nasdaq seeing the sharpest declines as we head into this final hour of trade. down 2%, tech is getting crushed today. >> it is indeed. good afternoon, i'm wilfred frost. let's have a look at what is driving the action rising 6.2% in october versus last year. the fastest pace since 1990. fuel oil prices were up more than 12% for the mon

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