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tv   Power Lunch  CNBC  November 15, 2021 2:00pm-3:00pm EST

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massive pressure to reduce emissions? it is not like they would be going to texas. >> thaeb they would or should. it is not the same the uk, with brexit makes its own rules. they are not subject to eu rules. bunch of people in brussels making decisions for companies that are not based in the countries they represent a big detail. >> really interesting. a great explainer, we appreciate it brian sullivan for us afternoon. that does it for "the exchange," everybody, but we are just getting started here "power lunch" begins right now >> indeed it do, kelly, thank you very much. we will see you in just a minute i'm eye tyler mathisen, welcome to "power lunch. the start of a busy week on wall street and in washington we will get you ready for a flood of retail earnings reports. walmart, target, lowe's, home depot -- are those big enough for you? we have got them and many more and president biden will sign the infrastructure bill today and then meet virtually with
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china's president about 9:45, all of that while contemplating his pick for the fed chair we will discuss the future of the fed, jay powell, and more. and live events -- they are back many people are happy to get to a concert or a football game i am going to a knicks game with my son in a couple of weeks. but is the metaverse a threat to this industry? why battle a crowd and unrowley fans or traffic when i could see bieber or the jets virtually in my own home. we will talk with the ceo of vivid seats. we have a packed show. a check on the markets stocks trying to siege a comeback after breaking a five-wee win streak. dow is outhatching reports say china's aviation regulators are satisfied with 737 max design changes to resolve the safety problems. tesla continuing the decline as
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elon musk continues to sell shares down 15% in the past week, 4.6% down today splunk, the worst performer on the nasdaq down 19% after the ceo announces he will step down as the company looks for more stability. retail earnings on tap this week the government's retail sales numbers will be released today stephanie link joins us. you have got your hi -- >> hi, tyler. >> welcome great to have you with us. you have got your eye on the consumer this week, we will get to some of those earnings that come out by and large, despite inflation people -- maybe because of inflation people seem to be spending more. >> of course the consumer is super important to the gdp, right, 70% of our economy. we know there is $2 trillion in excess savings that the consumer has. throughout earnings we have heard from mcdonald's, we have heard from hillton, marriott,
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expedia, et cetera, throughout earnings that there is pent up demand i don't think that this retail season is going to disappoint on the demand side. it is the supply side that's the question mark. how are gross margining going to fare given labor shortages and supply chain constraints. >> and increasing price of getting goods on shelves >> that's right. >> it is costing more to get trucks, shipping containers into the country, detailed last night emotion on "60 minutes". let's look at the granddaddy of them all, walmart. >> yeah. so walmart reports this week and i think the whisper numbers for comps, same store sales is 7 to 8%. if they do 8% that would be flat on a two-year stack basis. i think that's good enough, tyler, base on expectations. it's gross margins that are going to be the question mark. down 50 basis points year over year i think is a victory.
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we know they are gaining share in grocery we know apparel is strong, travel is strong at what expense? the stock is 23 times. not super cheap but trades like a staple i think maybe expectations are low enough especially since it is only up 2.5 year date if you get a headline number on the comp maybe the stock can spike up >> let's do a daily double here, home depot and lowe's? we know demand is strong for housing. all kibz of data points. also, benefitting from stay-at-home, people refurbishing their homes repairs in general and low interest rates the interesting thing is, stanley black and decker who sells into home depot and lowe's posted 14% growth when they reported in their tools and storage business that bodes well for home depot and lowe's
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i t home depot is up 40%. they don't trade well around the quarters if you get a pullback that's your buying opportunity. >> i used to have the rule of 300s whenever i went there, i would spend 300. now i think that's the rule of $800 because everything has gotten more expensive of maybe i am doing more. let's move on to my wife's favorite store, tj maxx, she doesn't like tjs, but she loves home goods. >> etsds the ultimate reopen play as stores start to open, people want the treasure hunt liqueur wife, right? >> yep. >> i think comps could run 15 to 20% overall. mar max could do 19% comps this company, they are one of
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three in offpricers. they are growing their store base by 60 to 75 stores per year that's huge. the stock hasn't done much all year long. it is trading at 20 times earnings i like it a lot for the recovery. >> it is a fascinating company i mean, they are bucking the store trend, number one. they have got a great niche, and they must be fantastic operators. >> yes and they have earnings power, i believe, of four to five dollar as share by 2024 poem don't expect that number. >> let's squeeze one more in cisco, a little bit off the beaten path. >> it is but it's important to hear what their macro commentary is all about. they just had an analyst day reiterated 5 to 7% indicate ger. i don't expect fireworks on the corner but i.t. spend is on the men they will benefit.
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they were up 10% last quarter. can they keep the momentum watch their cloud business they partnered with microsoft and those were up 160% last quarter. those are the two you want to watch. >> stephanie link, the queen of content per unit of time i am telling you. now to the action-packed day down in washington in less than an hour, president biden will sign the trillion dollars infrastructure bill and this evening he has a telephone conference with the president of china. now there are concern about losses of the democratic party heading into the mid telivy cantrall joins us. what is more important,the infrastructure bill or the talk tonight. according to democrats, infrastructure, kelly. if you look at how this is bipartisan infrastructure framework or the bif polls
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around the electorate it polls pretty well as democrats want to get to points on the board, pivot to then their build back better agenda, which actually also polls very well and then pivot to the messaging about the benefit. i think this is something that has been lost in this process, this debate about the price tag that many of these benefits that actually again poll pretty well among the electorate have not necessarily been clearly communicated so we will see democrats trying to focus on getting those done and pivoting to the benefits before going into the mid terms. >> i thought it was interesting that larry somers said despite his criticism of earlier bills he would still support build back better and kinds of agreed with the premise it could reduce inflation in the long run. surprising take from somebody who has been concerned about this i wonder how much the democratic party regrets the from package
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from back in january which seems to have caused inflation and accomplished the least from a messaging point of view. >> right if you remember there was $1 trillion in december and 1. trillion in march so we have seen a collectively $5 trillion being put into the economy since the beginning of covid. i think that both democrats and many republicans who voted for similar packages during the trump administration will say those things were necessary, needed to stave off a recession. but maybe in hindsight, especially that one in march in particular, maybe that some of that kind of cash in folks' pockets did end up being more inflationary than what they predicted. now, as you said, larry somers is reinforcing what the biden administration is saying, that this could actually be dampening for inflation, could increase labor force participation, and that could put more of a damper on inflation >> yeah.
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>> that's at least the messaging around this. because they do understand that inflation really is a political problem f not an economic problem. >> sure. the messaging right now seems to be around releasing barrels of oil from the strategic petroleum reserve which i don't think anybody thinks is really the cure maybe you need it given some of the pipeline and supply chain problems we have had you want the idea there is a supply in case we need it this time around. are there any other ideas that you have heard floating around that you think could be political winners and actually help on the inflation front? >> yeah, i think that's absolutely right, in terms of the sgr, i think that would be incremental at best. other things, a reduction in the tariffs on chinese goods i don't think we will see an announce men around that tonight but maybe he could be laying the foundation for something in the future anything that's going to help the supply chain this has been one idea that we know that the administration has considered you know, sending the national guard in for -- to increase
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trucking supply to sort of decrease some of the pressure on ports and help inventory i think what you will see this administration doing and they have done in the last few weeks is trying to at least give the perception that they realize that this is a problem again, an economic problem, definitely a political problem, and will try to pull the levers. but the reality is,cally, you know this, is that the administration can only do so much. >> sure. >> some it will be the fed as well of course. >> quick final question, what is the expectation for the phone call with president xi who would be considered a good or adverse outcome >> i think the white house is down playing expectations. i don't think they wanted the market to expect a rollback of tariffs. i think the outcome here is that they come up with a road map for future engage men. this is in president biden's best interests he wants see a more stable sort
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of less tumult use relationship with china also for xi jinping, the olympics are right around the corner for xi as well. he has ownership and investment in having stability as well between the two greatest economies. i think a road map for future engage men again, i think expectations for any big splashy announcements should be low. >> livy, great to have you here today. like our stephanie of d.c. >> she packs in all in there, too. coming up, it was a good quarter for the ticket sell e vivid seats as people went back to concerts and games. can the momentum continue? does the metaverse pose a problem for this business. and bitcoin made choings over the weekend how will it affect the price. and target, kossco, dollar
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tree, auto zone, all moving nigsly, we'll be right back. it looks like it, craig. and the defensive linemen are playing peek-a-boo. i've never seen anything like that before. harris now appears to be burping the baby. that's a great moment right there. the ref going to the rule book here. what, wait a minute! harris is off to the races! we don't need any more trick plays. touchdown!! but we could all use more ways to save. are you kidding me?? it's going to be a long bus ride home for the defense. switch to geico for more ways to save.
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vivid seats jumping after announcing third quarter results this morning the company reported nearly $140 million in revenue, up from a negative $7 million in the third quarter last year. third quarter was probably a made year of the business. this on a stronger than expected return to live events, concerts, games, and so forth.
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joining us vivid seats' ceo stan chi. i guess to compare the third quarter of this year from the third quarter of last year, it doesn't get n comparison's terms, any better than that? >> good afternoon, thank you for having me. we are fortunate to be where we are this quarter with a record-setting quarter across all of our key financial metrics. absolutely when compared with where we were last year when we were still in the throes of the pandemic, before vaccines had been rolled out, before i think some of the safety protocols that have been rolled out at the venues have been in place. we weren't sure what the future held here we are today i think with vaccines being rolled out and safety and excitement at live events we are proud of what the team has done to help the company get to this point. >> you went in sports from having no fans to full houses n. concerts, you went from having
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no concerts to having full houses now is one area performing better than another in other words, has the concert business come back quicker than the sports business? or is that just a meaningless comparison >> yeah, loong, i think we have seen almost as you said, everything came roaring back certainly in the second quarter n the third quarter, we saw even more of that across both categories with sports firing on all cylinders, and certainly concerts as well. >> i have used your service. i think highly of it it is very easy. the tickets come to my digital wallet i show them when i get there it is a high competition marketplace, you guys, seat geek, stub hub, game time, ticket master. everybody has got a marketplace for these, how do you distinguish yourself >> competition is great. it keeps us all on our toes and makes sure we continue to innovate on behalf of our customers.
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here at vivid seats innovate is certainly what we have done over the past many years, reernl what we have rolled out is options that differentiate us to consumers. we are the only marketplace when you look out there that has this really compelling loyalty program in vivid seats rewards that every single customer now earns 10% in value on every ticket we have partnerships with draftkings w rolling stone we translate that into perks like surprise and delight events as well as draftkings dollars for our users. >> interesting i am curious i could spend an afternoon learning about your business because i am curious how it works and how and where you make money as opposed to your competitors. if, for example, where do you get your tickets, number one let's say i want to go to a knicks game. who is the seller the tickets to you as the broker to me, number one? and how do you make money? is it on a difference between what that seller -- you are
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willing to pay that seller for his or her tickets or is it mostly from the service fee that gets tacked on at the enwhich let me tell you sometimes can take your breath away, stan. i am not saying on yours particularly, but on these services generally, it isthose service fees that come up at the ep and you go, man, i didn't know i was paying that per ticket. >> i hope that you look at our ticket and you say whoa man there is 10% on loyalty i am earning on every ticket as well. we are a pure play marketplace when you look at the inventory that surfaces on vivid seats a lot of it comes from fans looking to sell their tickets or sellers who obtain inventory to the shows. i think us, we connect the buyer and the seller when you look at where the margin comes from, i think we have looked to be as efficient as we can on the marketing side. that being said, there are still costs to run the business.
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any time we can -- any time we can deliver and return that value to consumers, we do that, as i discussed in our 10% loyalty on vivid seats resorts we have been three years in a row news week's customers favorite in ticketing. and trsz in the platform. >> two questions one am i likely to see the same ticket for the same event on a competitor's website as on yours? >> if the seller is looking to distribute broadly that's not unlikely that they have it across multiple platforms. >> when i buy it on vivid it disappears on a competitor's site because it is spoken for. we are spending time here on cnbc talking about the metaverse, and virtual reality, alternate reality events do you see that as a coming thing and a threat to your
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business >> i think the metaverse is first and foremost i think it is really cool. i like to put my oculus on and play a little beat saver now and then when you look at live events currently the metaverse experience isn't close to what experiencing the roar of the crowd in person and being there is i think most recently if you look at -- i think a survey done by universal group there, there was 96% of fans saying they were really excited to go to a live event and one in three saying they are even more excited to go to a live event now versus before the pandemic. >> stan thank you very much. we appreciate your time today, and your explanation congratulations on the good results, stan chia, of vivid. further ahead on the show, on-demand manufacturing. we will speak to the ceo of one company who could be well positioned for america's infrastructure revamp.
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plus blockchain getting its first major update in four years. what it meenls, when "power lunch" returns
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welcome back i'm rahel solomon. here is your cnbc news update at this hour. within the last half hour, steve bannon made his initial appearance in a federal courtroom on charges of contempt of congress. the ally of former president trump surrendered to federal authorities this morning he is expected to enter plea when he is arraigned later. today the defense lawyer for one three men charged in the shooting death of ahmaud arbery asked the judge to bar jesse jackson from the gallery even though a similar motion to remove al sharpton last week failed. in the trial of kyle rittenhouse, closing arguments are in progress. the prosecutor saying he lost
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the right to claim self-defense. let's give you power movers. here's one, power, this is pure power. six flags, up 6% the theme park operator climbing after appoint a new ceo. the took stockholm 30u7% as attendance climbs back from pandemic lows. there you see it up to $42.92. >> 23 and me sinking more than 10 pz. citi group downgrading the stock to neutral, although raising the price target from 13 to 12 analysts citing valuation saying very little room for growth there at 23and me. >> dollar tree up more than 10%. deutsche bank rising the price target to 148. it is 130 right now. up $17 today, 15%. the firm saying new activist investors can boost the stock. the activist firm mantle ridge has taken a stake in the company
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and plans to push for changes. more more on this stock, check out jim cramer's investing club newsletter point your phone at the qr code or go to the website. thank you very much still ahead on "power lunch," is the fed becoming a more political battleground chair powell's job is on the line will the president choose someone more politically aligned with progressive policies? we will discuss when "power nc rurns ♪ i see trees of green ♪
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welcome back 90 minutes left in the trading day. we want to get you caught up on all the markets. stocks, bonds, commodities and a big decision by the white house on the fed let's begin with the action down at t at the new york stock exchange. >> we are watching retailers home depot will be & lowe's will be reporting tomorrow. missy's and coles. the department stores have been on fire since dillard's reported last week.
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tjx will be reporting next week as well. the major index, xrt higher. kre hit a new 52-week high last week a number the big banks also. comerica at a new high today a sector holding up well one sector that is kind of out of steam, semiconductors new highs today on big names at the open then they reversed the move south. valuations are really very high, 65 times forward earnings on nvidia never been in that tarrer to before little bit stretched. >> bob pisani thank you. let's move to the bond market now as rates move higher. ten-year is back above 1.6%. rick santelli is tracking all the action for us. hi, rick. >> hi, kelly yes, at 8:30 eastern we saw a nice read, 30.9 on empire.
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what is fascinate being that read is if you look precovid, 30.9 would have the highest since 2009 post covid not only have we garnered lots of volatility, we zoomed up to 2.43 in july. the highest it has ever been at 8:30 eastern we put in the low yield. at 9:30 eastern when stocks opened we ended up with another big run. but they peterered intraday ten put in a low right w before stocks opened when they opened it took out friday's high yield. up a handful of basis points if you look at the month to date the tens minus twos you can see the yield curve turning. not only is the dollar friendly. it is friendly of what what the
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economy may see done the road. europeans have more to deal with on their platter rick santelli. the energy market close informing the day. a divergence between oil and nat gas today. pippa stevens has the numbers. >> divergence is right let's start with oil struggling for direction here into the close after posting three straight negative weeks. wti is at $80.91 holding that key $80 dlefl after earlier zipping to $79.30. present crude though down .1 at 82.08. traders continue watch what the u.s. administration's next move is going to be with senate majority leader chuck schumer pushing for a release from the strategic petroleum reserve saying yesterday consumers need
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immediate relief at the gas pumps. other factors that had been pressuring prices include the dollar at a 16-month high as well as growing calls that supply will catch up with demand by mid-2022. nat gas up 4.5%. back above $5 and recovering some of last week's 13% decline, which was its worst week. >> it is frostier to kick off this week. pippa, thank you. now to the battles for the fed. president biden has to choose, and soon, whether to nominate jay powell for another term or pick someone else with current fed governor fred brainard looking like the most logical choice how could this change everything for the fed. steve liesman. >> most see very little day light between powell and brainard on monetary policy. brainard might be lesslikely t put on the brakes and restrain
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accommodative growth they might difference on central bank currenty and deregulation brainard dissented several times in efforts to ease some of the dodd/frank pac back regulations. she has supported a central bank digital currency jury is out whether powell would support that brainard, who has been on the fed since 2014 is not from the progressive wing of the democratic party that looks to be championing her chairship in june, she said we have the tools and experience to gently guide inflation back down to target and no one should doubt our commitment to do so. she also said in september, though, the forward guidance on mack mum employment and average inflation sets a much higher bar to lift of the policy rate than for flowing the purchases of assets exactly what powell said whatever shesaid as governor, it could change. as chair, herren views would represent the entire fed and she
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would have to take full responsibility for unemployment and inflation outcomes that could change. >> what is interesting is you are saying her policies may not be different from chair powell's >> it is unclear certainly she is further ahead on supporting a central bank digital currency than powell s. he is not against it some members of his committee are. that's why he is more circumspect. on monetary policy i think she's cut from the same cloth as a lot of the central bankers, willing to use it in an emergency and take it away very slowly. >> we appreciate it, steve thanks. let's turn to uk if president biden picks br brainard it could have a bigger impact than just monetary poll. >> he >> while there is not much difference on policy there are two distinct political cases shaping up for either candidate. powell would chart the course through the pandemic and beyond
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the pandemic and that he should be able to stay course here and change would introduce more uncertain. a renomination would affirm the feds' independence from politics but democrats back lael brainard they believe personnel translates directly into policy and elevating brainard would whak it easier to expand the fed's purview to include social issues and climate change. it would also open unone additional seat to fill. one wrinkle, she's first in line to replace janet yellen should we step down before the first term two sources believe she could get between two and eight gop votes. democrats have not been united on who they would like the see progressives see this current environment as a once in a lifetime opportunity to reshape
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institution and the policies it pursues leading many behind the scenes to say how politically fraud and charged this debate has become makes the fed seem like the new supreme court. >> kayla, that was exactly what i was thinking as you were describing this it sounds this is now -- that the fed chief has now become an overtly political appointment as opposed to a much more sort of clinical dare i use the word sterile policy making appointment. >> the irony is not subtle at all here, tyler. we talk about the independence of the fed and how it is immune from politicization, but fact we are having this conversation means there is political influence at play here and because there are so many open seats to fill, that is leading democrats to say, hey, the length of these terms, the type of impact we could have on this institution is no small thing. so that's why their voice and their chorus has grown so loud
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here but that's almost giving more fuel to the pro-powell camp because they are saying, hey, show that you are not going to be swayed by some of the arguments and that the fed indeed can remain independent. >> kayla tausche, we appreciate it. up next, new infrastructure spending could mean big business for a range of companies if they can get their hands on manufacturing supplies and resources. that's why zometry comes in. the ceo will join us next. - [narrator] introducing the grubhub guarantee: our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order.
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welcome back, everybody. another potential winner for the trillion dollar infrastructure bill is the manufacturing sector as companies need machines, labor and parts to bring plans to life. new data show the u.s. is utilizing just 75% of its total manufacturing capacity right now, meaning there is plenty of band width to take on more work. our next guest says his company is uniquely positioned to help make that happen for more, let's bri in randy, the cofounder and ceo of on demand manufacturing platform xometry. randy, welcome, good to have you
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with news thank you for having me. >> let's level set for the viewer what you do, what your business is, putting buyers and manufacturers -- or manufacturers and vendors together or what >> first, we are a digital marketplace for this $260 billion market for on-demand manufacturing. second we use artificial intelligence to match buyers, customers, with the optimal seller or manufacturer and finally, third, we have a suite of products that help the manufacturers effective will he or more effective low manage their business including fintech products to manage their cash flow, invest in their future, and also access to lower cost tools and materials which reduces their costs and leads to lower costs for consumers. >> let's go to some of the numbers year over year your revenue up 35% in the most recent, gross profit up 42%. but net profit was problematic
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what was -- what were the charges that brought the net number down? >> yeah, i think we advised that one of the things that xometry also has done is created the xometry foundation, and we are investing in worthy causes we gave a $900,000 scholarship to howard university for engineering students we are investing in thek company. we have huge otential. our growth year over year was 77% if you exclude a nas customer we had last year. and we are continuing growth into fourth quarter and continuing expansion of our gross margins. >> talk to us about why you believe we are on the cusp of a renaissance in american manufacturing. a lot of people want to think so but it seems like it is going to be hospital record to reduce the costs and the technical prowess that china and other manufacturing bases have. >> we have a capacity gap right
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now here in the united states. a we started off on the program today, there is actually plenty of capacity right now with american manufacturers they are ready to go, and this bill is a watershed moment for the american economy, and also the start of renaissance for american manufacturing using the xometry marketplace, customers can find that open capacity right away. so we can reshore a lot of that manufacturing that has been done overseas and do it right here in the united states and fix a lot of these supply chain problems that are plaguing us today. >> but your service is machine festally global, correct in other words, if the best solution for my problem is offshore, you will lead me there, right >> absolutely. we will lead to you the best place. right now, we are seeing continued focus and importance on resilient local supply chains we are seeing that things are backed up in the forts and with geopolitical issues, a lot of
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customers wherever in the world are turning to local solutions and we have thousands of american manufacturers who are ready to open up their capacity to fill that gap. >> right you see -- where do you see the infrastructure bill being most helpful to the manufacturing base in the united states? in other words, where is its impact going to be felt greatest for manufacturers and in turn then for your business >> by investing in transportation, clean energy, electric and autonomous vehicles, we are investing in innovation there are lots of american companies that are innovating today. we are investing in that innovation and the best way for them to build their products is using american manufacturers so that's going to be the heart this renaissance. >> you think of manufacturing as -- this is -- this is not going to sound the way i intend it. >> sure. >> but you don't think of
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manufacturing as being a natively digital business, but that's what you are bringing to the table, and that's what manufacturing is -- all business must be digital today? >> absolutely. it's such an -- market where buyers and customers can't find the optimal manufacturers. so everybody is talking about the decline of american manufacturing, or that the manufacturers here have no open capacity but the opposite is true the recent report showed there was actually a decline in utilization by american manufacturers. so we have more capacity than we thought, but we need a digital solution -- we are using artificial intelligence to optimize that match. that will provide at the end of the day a better buying proposition for both the buyer and the seller. >> randy, we appreciate i would. xometry. >> thank you for having me. >> you bet. boeing says it is closer to resuming deliveries of the 737 airliner can it catch up to sales of the
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almost 98% of people did not have another dvt or pe. don't stop taking xarelto® without talking to your doctor, as this may increase risk of blood clots. while taking, a spinal injection increases risk of blood clots, which may cause paralysis. you may bruise more easily or take longer to stop bleeding. xarelto® can cause serious and in rare cases, fatal bleeding. it may increase your bleeding risk if you take certain medicines. get help right away for unexpected bleeding or unusual bruising. don't take xarelto® if you have an artificial heart valve or abnormal bleeding. tell your doctor about all planned medical or dental procedures and any kidney or liver problems. help protect yourself from another dvt or pe. ask your doctor about xarelto®. to learn more about cost, visit xarelto.com or call 1-888-xarelto welcome back to "power lunch. i'm seema mody boeing is leading the dow after the company said it is close to
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resuming deliveries of the 787 dreamliner model and seeing demand for the freighter but the stock is down about 17% from the march high and still well off its record high hit in 2019 why let's discuss with two guests. gina, there's so many ways to play the travel rebound. your thoughts on whether now is the right time to own boeing >> boeing is interesting because this segment is a segment with significant visibility so it's not as though you have to hope they will resume their capacity and be able to sell. orders have been placed and have visibility years into thefutur and while boeing got struck down because of the 737 china is signaling they'll probably okay
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it and they have already announced resumptions of the dreamliner. then you also have this move into freight, the freight capacity, which is spurred by the pandemic so there's a lot going for boeing and while it is slightly overvalued so is the rest of the market. >> ari, when you look at the stock compared to the 200 day moving average how does it look? >> i don't think bioing is a very compelling as a standloan idea i think the bull psych sl a tailwind for more questionable stock trends lie boeing. the stock is in a year to date range. notable today is it is trying to push above the 200-day moving average for the first time since august so keep an eye on $230.
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if we were to get a weird reversal to the downside that would indicate that the stock found resistance here but if you close above it, first time since august and does offer the potential for a move back to the june highs around $260. >> at 232 a share. thank you. for more trading nation head to the website. follow us on twitter back to you. >> thank you. after the break, blockchain reaction crypto was hit by a major from the s.e.c. is this a step back or forward? stay with us. >> now the latest from cnbc.trading nation.com and a word from our sponsor.
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bitcoin today after a big upgrade called taproot over the weekend. mckenzie writing about it for
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cnbc.com tells about it what's going on? >> so, tyler, this is bitcoin's first major makeover in four years and the upgrade introduces new features to the network. it makes transactions more private, efficient and less expensive and unlocks the potential for smart contracts which are self executing agreements that live on the blockchain and used to eliminate middlemen from transactions. they are essential empowering the world of nfts and decentralized finance. you will see an increase in the applications for bitcoin guys >> does this mean in part that bitcoin wants to be at the center of more transactions and be seen as an exchange -- medium of exchange and not just an investable asset >> so it has a lot to do -- the
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smart contract functionality has to do with adding its capabilities in the world of defi to build businesses and applications on top of bitcoin and a game changer from what i hear of experts i have spoken to in the space it makes complex transactions indistinguishable from simple ones for privacy which is attractive to some people. >> kelly understands this but i do not you've got to -- by the way my son's name is mckenzie, as well. he goes by mac >> i do, too what is defi >> decentralized finance is this ecosystem that is built on smart contracts which are self executing agreements which
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essentially means you don't need a bank or a middleman. if you want to pay the rent you can do it with a defi app, without having anybody grant permission to do so. ethereum dominates this space but this makes bitcoin more of a player. >> now you mentioned the idea that this was going to make transactions more private. do they need to be more private and impenetrable >> a lot of users think so, yes. that's why it's included in this upgrade but some see it as secrecy and whether it could mean further scrutiny by regulators of bitcoin and the makeover is hiding details of transactions and authorities may not like that added layer of
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pr privacy. >> thank you, mac. >> bitcoin is not lower and with a major upgrade it was a bigger problem. >> thank you for watching "power lunch." >> "closing bell" starts right now. welcome to "closing bell." i'm wfrds with sara eisen at the new york stock exchange. president biden is expected to sign the infrastructure bill shortly with a bipartisan group of lawmakers in attendance >> as we await the signing let's get straight to kayla tausche with the latest on the bill and what to expect this afternoon? kayla? >> reporter: you can see hundreds of attendees milling about there on the south lawn ranging from lawmakers, members of okrganized and corporate america and donors and campaig

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