tv Power Lunch CNBC November 24, 2021 2:00pm-3:00pm EST
>> resident, thanks. be sure to catch more crypto talk on tonight's special crypto night in america 6:00 p.m. eastern. if you have got your family and you don't know what to watch, put this on. that does it for "the exchange" today. the famous tyler mathisen is right over there it is tyler mathisen night in america. >> crypto night in america the night before thanksgiving. almost sounds better than the night before halloween welcome to "power lunch. inflation, the taper, investors going to get the details on the fed's monetary game plan due out momentarily. we will be all over it it could move the market. plus, king coal, coal fired electricity generation expected to increase for the first time since 201. stock prices are soaring
>> holiday hackers, the fbi warns american companies of potential cyber attacks over the thanksgiving holiday they have one piece of those for those who work in i.t. >> probably working overtime tyler, thanks. stocks struggling to stage a rebound. the nasdaq coming off a two-day losing stretch hanging on to a 26 point gain. the s&p up four. and dow up 44. the ten-year is up to 1.657% it has risen over the past week. we will see if it can reach 1.7 next or not. real estate and energy are the best performers on the s&p today. materials and consumer staples the worst performing let's bring in our panel of experts, steve liesman will have the key headlines from the fed
and alan boomer with momentum advisers steve, i will start with you -- steve ri chuto, i will start with you as you steve liesman begin to wrap your mind around what we are seeing steve, what are the words you are looking to hear? what would sprid you if you either do hear it or don't hear it >> it is less the specific words than the balance between employment, inflation, and wages. where does the conversation go terms of those three topics? are they increasing their worry about wages versus prices? and how much is dedicated to employment over inflation? that's kind the balance you are looking at the more the concern you get on wages, the more bearish it is going to be at the front end of the curve. the more focus it is on employment, and the need to fulfill the employment versus the inflation, which they continue to view as transitory, the less hawkish the overall commentary becomes that's kind the balance you are
looking at. >> steve liesman, i don't know whether you are ready. i am going to turn it to you anyway because i know you are always ready what do the headlines say? >> if you would give me a few minutes, they came over a minute late we are poring through them at the moment, tyler, thank you we will give you all the time you need, my friends alan boomer your thoughts about how -- the fed has been hinting at, talking about some kind of monetary tightening. how consequential is the kind of tightening we expect to see going to be for the economy when on the other hand you have the opposite of tightening in the fiscal space >> you are bringing up a great point. right? you have got a fed that wants to put a foot on the brake and you have got a government that wants to put a foot on the gas -- >> i definitely -- >> alan?
>> okay. you have got a fed that wants to put a foot on the brake and a president that wants to put a foot on the gas. that creates volatility. imagine driving your car with the foot on the gas and the other if the on the brake. it is going create an issue. going into to you consequential is the fed's plan or the potential for the fed to raise rates? i don't think it's going to be that consequential the market is fully expecting there will be a rate hike. i t . >> keep going. >> i don't think the market is going to completely break down when the fed starts to raise interest rates. >> you cannot, as we just proved -- you cannot put rick santelli in a box and keep him quiet. he's so enthused he wants to jump right in here take of the away rick. >> you know, tyler, the big story is -- steve nailed it early this morning -- to see how far along and what kind
agreements there were from the fed concerning the information we now know. many said the taper being faster could be warranted that is in there but they also said that they upgraded their inflation outlook. that's very, very important. but then they downgraded their growth outlook so let's try to put this together we have seen people all the way from mary daily, vice chair clarida talking about maybe we need to speed up the taper so we can actually start to tighten rates a bit. and it seems as though the seeds of that could have been planted in the last meeting. and we do see some of the yields right now in the shortened going down and that doesn't seem to jive with what i'm reading because short rates should be going up if this was considered hawkish with regard to pulling taper forward. so even though it was discussed, it was stressed to be flexible
and not necessarily underscoring to be quicker. >> now, we are i am told ready for steve liesman. mr. liesman >> i am going to say something now about the minutes that i think may matter i think even more the fed was as rick just indicated more uncertain about the inflation outlook, some were concerned there was upside risk to it. they did they say they were prepared to adjust the pace of tapering in response to changes in the outlook that was in the statement. and they were trying to make clur an announcement to taper which they made at that meeting was not intended to send a signal on rate hikes there were concerns about asset valuations by some people because of what was going on with fed policy. and some preferred a faster pace of tapering. now, that was in the minutes this is one of those situations, tyler, where i think things that have been said since the minutes may matter more. i want to start today with san francisco president mary daily, who has been one of the most
dovish members of the committee. she said this morning in an interview with yahoo she would not be surprised to see one or two rate hikes next year she also said that she could consider, if the economic outlook warrants it a faster pace of tapering she talked efrl sims earlier this week and last week as well and hadn't really indicated that she's one of a number of members now that since these minutes have come out have said the fed ought to be discussing a faster pace of taper. before we put this chart up -- i want the see if it is still right. before these minutes came out -- it is still right. we can put it up the may probability of a rate hike that's the probability i would use to see how much people would expect a faster taper. that is now a 56 probability of a rate hike going all the way, 75, june, july, up to 90by
november then you get into december and there is something like a 60% chance of a second rate hike in there. those percentages are still about right from before the meeting. we will see if the markets continues the react. the fed was thinking about it then, haven't said anything out loud since the meeting, tyler, they have come out and started talking about a faster pace of tape he were because of their inflation concerns i think those comments super speed seed what's this the minutes today. >> the s&p turned negative by three points, the nasdaq which had two deeply negative negative session is about to turn negative as well, and the dow is down 100 points. steve re chuto, more people yesterday were calling for a fraser taper, some want the fed to finish by march, and that kind of thing. do you think that is warranted >> i think in terms of where people's expectations are of what's going to happen and projecting off the current level of economic activity, which, remember, you had a very, very
disappointing third quarter and now we are projecting a robust fourth quarter this expectation is going to get further and further away from where the market is right now. i fully expect the market to discount even more than currently discussed by steve in terms of the markets i think by the time we get done with the december meeting on december 14th and 15th, there will be three rate hikes priced into the s.e.p. and the dots and by the time we get into january and february of next year there will be four rate hikes priced in before the end of 2022. it is a long way away. we will have to see if the economic conditions continue to validate that. but the expectation is going get more bearish as we go forward as for the potential for higher return rates. >> eric, the presumptive rate of
change in fed policy -- you seem to think that the supply chain issues are going the mitigate over the next six months that's number one. and number two, sort of protecting yourself, you want companies that have inflation protection, in other words, the ability to raise prices, and that are sort of insulated against supply chain issues, which leads you to the likes of netflix, facebook, and google? >> absolutely. you nailed it. the issues of supply chain are going away but they are a real issue right now. i also think that's the thing that's going to make inflation not be as big of a deal next year, which is why i am not so worried about three or four rate hikes next year. so when i think about the companies that i want to own right now, again, like, if you look at like a netflix, for example, they don't have a labor shortage they don't have a supply chain issue. in fact, netflix earns $3.2 million in revenue for every one
employee that they have. meaning they are very efficient at urning rev with relatively small employee base. that's the sort of company -- their employees are skilled workers that aren't call it minute him wage workers. that's the kind of company you want to own in this environment. companies selling intangible things like streaming services and data these are the types of companies i think are insulated from this type of environment. >> gentlemen, we thank you. coming up, we will keep an eye on the markets which are turned negative think of after the fed minutes. and stocks at deep discount. are they worth buying. zoom shares told off cathie wood loaded up. should you follow her lead kossco, hp and motorola
tis zooming higher today "power lunch," back in a minute. if you're 55 and up, t- mobile has plans built just for you. whether you need a single line or lines for family members, you'll get great value on america's most reliable 5g network. like 2 lines of unlimited for just $27.50 a line. only at t-mobile.
trending down this month, down 6% in november you would think e-commerce retailers should benefit but increased vaccination and booster rates are driving in-person brick and mortar sales. some may find the online sales underwell. ing this year given continued supply chain issues and increased demands. >> thank you very much not only are e-commerce stocks coming under pressure, but so are traditional retail games, nordstrom, the gap, punished courtney reagan sorts through the wreckage. >> nordstrom and gap on track for their worst days best buy reported a largely strong quarter though it did see margins contract like others from higher labor and supply chain costs even organized retail crime best buy had stock up in gaming and phones for example
broadly, there is worry about waning demand for consumer electronics. shares got hit and are falling further from tuesday's drop. dick's sporting goods shares falling even though they passed estimates and they raised guidance best buy theically outperforms starting in february so it is recommended to buy on this weakness. nordstrom and gap reported ugly quarters they were also hit by higher wage rates and supply chain issues nordstrom and gap plunging for their worst day ever gap and nordstrom understocks and women's shoes and apparel in the main line department stores. it may take several quarters for
management to fix. you could consider this a promotional price. friday officially kicks off the holiday shopping season. you may not fine as many deals out there as in previous years retailers are looking to help their profit margins while the goods may not be on sale our next guest agrees lot of the retail stocks are ed, this could be dangerous territory. which names would you pick up here >> i think walmart and target are well positioned for holiday. good in-stock levels people want to get back in the stores again i think they can suit you e-commerce or in store with a great experience weechl also like e-bay courtney mentioned out of stocks when your kids want the gaming platform and you are kind of up against the wall you are going to turn to a place like e-bay. >> target and e-bay are up 40%
i want to push you i want to hear you say pick up nordstrom. i don't think you cover the gap. are their names ed the real big decliners that you think are undeservedly punished. >> nordstrom had an ugly quarter yesterday. it may be an interesting entry point. great e-commerce business, great stores business. seems like their tactical execution has been off but we have confidence in the longer term business. >> is he if you have confidence in the longer term business at nordstrom, why doesn't the rest of the market give them the benefit of the doubt today >> look, i think people have given nordstrom the benefit of the doubt in a couple of quarters and i think they disappointed it can't be just looking at quarter or two they are not overstored. they have the right brands, their full price, all of that together gives you that great consumer experience which
ultimately we think with drive stock price appreciation. >> how do you think these stocks are going the look come january? are we going to find out based on inventory levels that actually there was too much inventory, maybe the last problem we expected to have? >> i don't know that there will be too much inventory, but we are concerned that if inventory arrives late it is something we will have to watch post holiday. nobody wants to buy a christmas tree after christmas the seasonal merchandise, apparel, the christmas letter, you need it before christmas, not after. we are going to watch closely. the other piece of it is we had through the entire year, stimulus, lots of tail winds, high consumer savings rate some of those tail winds won't be as strong in 2022 so the retail climate will be choppier. >> a friend who has a small retail store nearby was saying the same thing he is less optimistics he thinks i have been is aings
are running out and that's why people are getting back to work. also, they might not have as much fire power to spend this year as everybody assumes. >> you know, i think holidays should be fine all indications we hear our channel checks, talking to our covered companies, indicate that so far the holiday off to a good start. now we are going the watch to see. the consumer may have pulled some of the demand forward i think the most important weeks are not black friday or the week right in front of christmas but the couple in between where if retail stores saw soft traffic they could hit the panic button in thank you we will have you back in soon. coming up, one industry we thought we would be seeing a lot of and one we thought we would see a lot less first up, the payment stocks, all of them down this year, while the broader market has had a very nice rally. we will hear from someone who still believes in them and energy needs have trumped environmental concerns, a of the least for now. coal stocks, look at them, wow,
welcome back i'm rahel solomon. sheer your cnbc news update at this hour. less than an hour ago arc jury in georgia convicted all three defendants of felony murder in the death of ahad arbery a black man who was running in their neighborhood travis mcmichael was convicted on all the counts against him, including the most serious charge of malice murder. his father, gregory mcmichael was acquitted on the malice murder count but convicted of all the other counts against him including felony murder. and all three men now face a minimum sentence of life in prison and also face federal hate crime charges full reaction to the verdict
tonight on the news at 7:00 eastern. you are now up to date. >> thank you very much. let's look at power movers you have got basically flat markets overall. but individual stocks not flat at all look at auto desk. sinking today by $50 a share, 16%, the company beat on wretches and eps but lowered its full year 2022 billings growth guidance because of supply chain disruptions. on the flip side, hp hitting an all-time high following strong earnings threw see it up 10% at 3557, issuing a strong outlook for consumer and business dmantd for computers and printers remain row beside. pure storage hitting an yule time high. the company beat estimates and raised its 2022 outlook. still ahead on "power lunch," fintech fizzles. pay pell down 40% from its year
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stocks, bonds, a coal boom, and fizzling fintech could that be about to change? let's start with stocks, we turned negative after the fed minutes came out the nasdaq now down five points making its third straight losing session. billiard's and macy's also falling. we will turn to bonds as well. after today's economic data b. 165 on if ten-year before the fed rinse. rick santelli, how are we looking now? >> you know, there was a lot of action in this treasury complex before any minutes of the last fed meet prosecuting read. matter of fact, i brought it out at 8:30 -- excuse me, 10:00 eastern, we had the deflator month over month and the deflate ear year over year on the core both up hot, hot, hot. and the pricing index on our second time around the block on gdp was also-on-the hot side we had a flatter yield curve, lower yields and long ma turtsz
and that was the setup going into the fed minutes let's look at how every maturity looks quick loo. twos up two basis points not much movement on the fed minutes. fives, tens, and 30s as you go down the curve you will see in this recent time bracket not a lot of volatility. but for the day by the time you get to the 30 year, it is aiming down there is the curve flattening. look at 30s cared to twos, now at 1 3, we are making a fresh 14-month pass at the flattest the yield curve has been there are many moving parts here various dovish fed personnel talking about moving the taper quicker. or we had the vice president the ecb that said today that some of these issues regarding supply shortages are starting to become structural i can't express it any better than that. you could go from transitory to trurl -- houston, we have an inflation problem. kelly, back to you.
>> and supply shortages becoming structural is exactly what is leading to coal prices to the highest level in more than ten years as energy demand is coming into conflict with environmental goals. pippa stevens is covering the story. >> a lot of attention on surging oil and gas prices but coal is up even more this year the price for the central an laicha region is at a 12-year high of more than 90 for a short time according to s&p global market intelligence. powder river is up 170% this year across energy markets demand rebounded but production has been slow to respond, which is driving up prices. expensive natural gas has prompted producers to switch to coal u.s. coal fired power is expected to increase this year for the first time since 2014. stocks are getting a boost
pea baed, arch, alliance and consol all up this year. this comes on the heels of cop26 and the agreement to phase down coal power but the defense council saying elevated prices can help build momentum behind alternative like wind and solar that aren't subject to these price swings. in the meantime and as winter comes, higher prices are adding to the inflationary pressures we are seeing across country. >> peabody btu up 380% this year pippa, thank you very much. fintech stocks, meanwhile, mostly sat out the market rally. our next guest says that legacy fintech names are ready to head higher jeremy myer with gradient investments. it is great to have you here why is now a buying opportunity. >> well, simply because they have fallen pretty far and their business hasn't changed a whole heck of a lot. with regard to global payments, visa, mastercard, these are kind
the transaction railroads, if you will, i mean, their business are going to grow with economic growth, faster than the overall economy. most of these earnings should be 15% earnings on these groelts and multiples that have severely come down since the summer now is the time i think to be getting interested in these names. i think that 2022 is setting up very well for these stocks. >> isn't there more competition in the space than ever, jeremy it is amazing to is he how all the payment names are struggling and visa and mastercard haven't had a lot to compete with over the last decade. so much competition, buy now, pay later, crypto's arrival. >> there is more attention around the competitive landscape i would say. buy now pay later is certainly -- but it is a minuscule portion of the overall transaction volume out there and they still use some of the rails that visa and mastercard are doing.
then on the crypto side, i mean, that's used much more, in our opinion right now, as a trading mechanism rather than a transaction mechanism. so if you are going out and shopping whether it is e-commerce or in person, you are still probably using the payment rails, swiping and doing the things that visa and mastercard benefit from. >> tell me why buy now pay later won see huge adoption? if it reinvents the network to include the seller, the retailer and the customers, instead of the payment processor and the bank and the customer -- why wouldn't that be more attractive to retailers we have seen the numbers the bnpl systems are putting up. they look good from the retailer's point of view >> yeah. no question. even if they continue to grow very well, it doesn't take away completely from what you are currently doing. i mean, even their adoption -- let's say they double in the next couple of years, that market share is still probably 5% or 7% of the total
transaction volume out there i think there is space for everyone in this landscape i think to a extent, and the damage that we have seen in the stocks especially just aren't reflected in the businesses. and i don't think over the next two and three and five years, i think payments in general tends to move a at glacial pace. we don't change instantly but we change over time visa and mastercard and paypal, even global payments -- it is not like there is an incredibly large moat in buy now pay later that they can't get involved in currently. paypal is already doing it and the other companies could get involved as well i think they could be part of the ecosystem, have the legacy component and grow in the mid teens rage the next five years i am frankly skeptical of pi now pay later. i think it feels faddish to me whatever it is certainly something to be considered here today. of these four sort of legacy companies, is there one or are
there two that you like best now? >> yeah, i mean, we have always really liked a if you look in the outyears, the valuation has come down to where it has been in the past. relative to the market it is getting to near a discount, which never happens for a. we really like that one, from a value perspective and the most potential for kind of rebound opportunity thank that's global payments i mean if you look at valuation now, we are at sub14 times it is a sub -- zero point -- there is a 10%, 15 pores earnings growth there, the multiple is below the earnings growth from a value perspective over the next six months if you want to play one of these spaces and ask who has the most potential to the upside, i think it is global payments. >> don't you like when they answer the question. >> i love it. >> have a happy thanksgiving we are grateful for him.
>> grateful for jeremy. being a hacker is a 24/7/365 day a year job that's why the fbi warns companies not to let their guard down during the holidays what companies need toe t bonhe alert for, when "power lunch" returns. ebenezer. ebenezer. ha ha ha ha. marley? first you will see the past. excuse me! coming through! ugh!
a new warning from the fbi, while you are enjoying food and football tomorrow, hackers will not be taking the day off. eamon javers joins us with a look at who companies should be doing to protect themselves. it goes youbd drum sticks. >> it does what the fbi is not saying is that they have any specific intelligence that there is acyber attack planned for the weekend but they are saying they are comfortable reading the history, therefore, reading the tea leaves here's the warning from the fbi and the cyber and infrastructure strurt administration. they say pa malicious cyber security hackers have often taken advantage of holiday shopping weekends to disrupt systems. they are right about that. look at what some of the biggest
hacks of the year fell on. inev inevitably, a holiday weekend. the colonial pipeline attack the jbs meat hacking acontact, the kaseya on the fourth of july weekend. they targ these weekend largely because hackers believe companies and employees lower their guard at that time there is another reason cited here talking about why companies may be more vulnerable this is surprising to me maybe it shouldn't have been. >> 70% of the respondents to the survey said they had had at least one drunk when having to respond to one of these attacks. not only do they have a skeleton crew, but those on line are not at their most professional >> the idea is that the hackers are waiting for you to get a couple of glass into
thanksgiving dinner before they execute their attacks. that's because they know when companies will be most vulnerable and their staff least able to respond. one of the ways to work around that is to have an on call staff. a lot of companies will be doing that over this weekend and those people will not be drinking any beer whiler watching football. >> on call means sober up. i don't think most people interpret it that way. >> that's right. drink the near beer that they have. >> i didn't know mother's day was boozing holiday, ty. >> i didn't know either. >> i guess it depends on the mother in question, right. >> have a great holiday, my friend eamon javers still ahead, this year more families are able to get together for the holidays as opposed to last year's zoom thanksgiving so is that bad news for zam shares cathie wood doesn't think so we will get our traders' take. as you probably discovered
by now the cost of a lot of thanksgiving foods has gone up a lot since last year. that includes pies why climate change is making dessert more expensive stay wh itus sales are down from last quarter, but we're hoping things will pick up by q3. yeah... uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade and start trading today. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,
welcome back to "power lunch. i'm seema mody ark invest loading up on zoom during the stay-at-home stock's recent dip the ceo, cathie wood calling it one of the most important communication companies to come along in decades on cnbc this morning. >> we believe that for the first time in decades that the communication system of the world is going to be replaced. innovation solves problems many people think of zoom simply as a video chat service. it is not. it is becoming a unified communication system and that the old ones, i guess the old ones, cisco, and polycomwould be among them they are going to be ripped out. because in the new hybrid world
we can't have the latency problems and the performance problems that they have. >> is it time to take a position in the stock, trading at $307 a share? let's bring in the trading nation team, gina an shez, and delando sapuru delano, it is easy to look at the performance of zoom, down 37% and say i saw this coming especially as the economy reopens. but at one point does this stock look like a compelling buy to you? >> it is getting to that point obviously much of the steam has come out of the stock. but it is now trading at 42 times on a forward pe basis and 62 times on to trailing basis. it is getting to the price per share where there might be support there. cathie wood looks at it with a long term view you have to be a long term player because if zoom is going
to get into high tickets accounts and clients they have to have a long term vision to build services that's the sticking point, the competition has already done growth is strong and investors have to wait to see the strategy play out in the long term. i think there is an opportunity because we are moving to a more flex world >> gina, do you agree with cathie wood that we are entering this more personal tent high yield structure and it could be an opportunity for a company like zoom? >> i agree with cathie that the landscape is changing dramatically however, i am not sure zoom is necessarily the best way to play that at today's valuation for zoom, even if you assume that the landscape changes and the market is substantially larger, which you have to believe if you where go to buy zoom at 46 times forward earnings we think something like
microsoft, which is stock we advise on and i own personally, we think that's a better play because they have a larger user base the entry price point is cheaper. and their entire ecosystem is central. and they have already gone into unified space. you know, i don't see why you would choose zoom over microsoft. >> microsoft teams a lot of us use it that's a great point microsoft currently trading just down fractionally on the day gina and delano, thank you. seema, thank you very much. up next, boston market calls thanksgiving its super bowl. the company is here to talk food inflation and holiday demand >> announcer: and now, the latest from trading nation.cnbc.com and a word from our sponsor.
as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage. welcome back, everybody. in case you hadn't noticed, food prices are going up just in time for thanksgiving wheat prices up 13% over the past month highest level in about nine
years. that was hit earlier today there you see corn and oats also up sharply that explains why the average cost of a thanksgiving dinner is up 14% from last year. oats, you got to have the oats, according to the american farm bureau federation. it's the most the meal has cost in the survey's 36-year history. there you see it $54.31, the average cost for a dinner for ten i'm told that's in the an inflation-adjusted dollars but highest ever eric wyatt is the coo of boston market welcome. you are cooking, man, look at you. you're dressed up and ready to go. >> i just came from the restaurants. still have my apron on and ready to keep going once we're done. >> how many turkeys do you sell over thanksgiving? >> way more than you even know over a million turkeys. >> that's the size of a large city >> that's exactly right. we also do about a half a
million pounds of mashed potatoes and another 200,000 whole pies. >> a half a million -- what does that leave for the other people? do people preorder or do you get a lot of people coming in, walk in that day to either pick up a turkey or pick up a prepared dinner >> yeah, it's actually a combination of about three things we do a bunch of catering and this year we're up about 131% on your catering sales, which is fantastic. over 2019, we're up about 119% so from a two-year standpoint, which is really what we've been measuring success there. our heat and serve business is the convenience where you can pick those up and order in advance for it you can feed folks anywhere from 6 to 12 people for $10.99 a person and then the last piece is the day of thanksgiving, you can actually come into the
restaurant and get a -- either turkey or half chicken meal for about $14.99. >> that's a convenient thing to be able to do. let's talk about the economic issues that may be effecting your business. what about the cost of your raw materials? i mean raw in the sense of your food materials how have the inflation costs been working and then we'll get to labor >> the biggest piece for us is obviously whole chicken and we've seen about an 18% increase in our whole chicken prices. obviously they're contracted out. but we've seen an escalation there which has, obviously, put stress on your margins. >> why do you think they're up so much? some people -- some people point to the processors doing it because they can, not because there's any -- that chickens don't really cost that much more to breed and the farmers don't seem to be feeling it. >> yeah, i don't know that i would say that so much as i
think -- manufacturing and production is having the same challenges as downstream with people and having the people to do the work. and so i think that's put some stress all the way up and obviously, you know, on supply chain and just about every industry >> let's talk about labor. are you able to find enough workers to populate your restaurants? >> we have been. and in fact, i'm superproud of the organization we took a different approach in addition to just having our field organization recruiting. we asked all of our support center employees to help us and we were able to in just the last -- october, november, hire as many as 2,100 people to help support this very pivotal part of our business here over thanksgiving and christmas holidays so bringing us to over 6,000 employees. >> how much -- >> obviously wage rates have gone up a bit.
and we're happy to do that as well >> okay. that was what my next question was going to be. how much more are you having to pay this year for last, just quickly? >> yeah, i think it's varying from state to state. but, you know, like i said, we don't mind paying a fair day's work for those folks that are willing to come in because we do know there's been a pretty significant dropoff in the number of folks who are working in hospitality >> eric wyatt, thank you so much and happy thanksgiving. >> happy thanksgiving to you and all of our employees at boston market. >> we'll leave it there. thank you. >> i won't talk to him my husband only wants to eat at boston market. he's ruined it for me. for dessert, the cost of your holiday pie is rising and part of that may be due to climate change >> kelly, drought, floods and wildfires are all taking a toll on the ingredients that go into
our pies take the crust, for example, wheat prices are up over 10% in just the past month. severe drought in the u.s. west caused the worst wheat production in nearly two decades. high prices for wheat and alfalfa make feed prices higher. and honey, wildfire in the west left honey bees with nothing to eat. california, montana, nevada and colorado lost a huge amount of bees >> now we worry about freezes in brazil even more than we did before or floods in china. and so we can't run and hide anymore from global severe weather events because they're all part of the food chain >> and it's hitting small businesses like dc's pie shop
where sandra has been in business for 12 years. >> usually thanksgiving is where we're able to make a little extra money to cushion us for the slow winter. however, this year, i'm not so sure that we'll be profitable. >> she said she would like to raise her prices before, but she added, really, there's only so much people will pay for a pie i don't know, guys, i would pay a lot this year. >> what's this business about crab >> oh, that was from over the summer and actually because she does savory pies and seafood pies, there was some thought that because of warmer waters in the chesapeake bay that the crab harvest was not nearly as good as it usually is and there was a big crab shortage in this area, the dc/maryland area and that caused prices to spike. >> back to pies.
let's take a three-person -- crab pie >> crab seafood pie. >> do we like pumpkin pie? fruit pie? pecan pie? >> i think i'm going to say yes. can i just do a blanket yes. >> a yes to all three. >> i'm a fruit pie guy pumpkin, pass. thanks for watching "power lunch. >> "closing bell" starts right now. >> thank you welcome, everyone to "closing bell." i'm sara eisen another roller coaster session here on wall street as an early plunge has given way to a more mixed picture. the dow is lagging the nasdaq is outperforming as we head into the final hour of trade. >> let's look at what's driving the action the fed releasing minutes from its november meeting, talking inflation and noting that, quote, appropriate actions