tv The Exchange CNBC May 31, 2022 1:00pm-2:00pm EDT
now i'm ready for "maverick. >> i saw it in the theater i agree. the company been around since after the civil war. been paying a dividend for 82 years. this is the kind of stock i want to be in for the second half of the your >> energy i'm not in overweight and i'm overweight for agriculture. a adm. >> "the exchange" begins right now. ♪ ♪ thank you, melissa hi, everybody and welcome to "the exchange. and the big event this hour, fed chair powell, as president biden pushes his own plan to bring prices down. with ilit result in more hawkish fed than markets current hey expect and oil jumping again today, hitting $118 barrel as a gasoline futures hit another
record high. and spending on big-ticket items is starting to slow. is the hit exaggerated by return to services or is inflation to blame? >> if you look tit right now, it se seems like hoe, hum, nothing is going on the nasdaq is up 35. modest moves but consider the fact that at the lows of the day, the net composite index for the nasdaq is up 189 points. you can see very much off the session lows for both the dow industrials and the s&p. the s&p 41.55. trying to find footing in a market that has been very volatile for the memorial day celebration in the united states if you lock at where the happenings are, are the
positivity is in the market, it's in some of the growth and technology-oriented trade. if you look at a couple of etfs rrb. that top the white line verses the orange line, which is theivalue stocks woe know values habeen out performing for the better part of the year. take look at the out performance over the course of the last eke. we have closed the gap a little bit. maybe that's a signal of a bottom the bulls are hoping that the bears sayee have another leg to go lower in the market if you look at the stocks of the day, anyone diabetic or knows s somebody who is, may know these companies. just about a week agob kelly, there was chatter, reports, speculation about dexcommaking a bid for insulet.
might be a combination well, dexcom comes out they say they are not in active deal talks with anybody right now that's what set it higher for 4.9% and health care on that side of things a very big mover in today's trade. >> a growing area of venture capital activity as well moments away from president biden meeting jay powell after laying out his plans for curbing inflation. it inclouds not meddling with the fedding with targeting child care costs and raising taxes so, how much of the inflation fight will fall to the fed and how much thowhite house some and what is the historical significance of tod's meeting between biden and powell and director of the hutchins
center what do you think is the significance of this meeting >> we had a time where the fed chair was going to the white house and ran the risk of being over shadowed boy a k-pop fan. that's unprecedented what we've seen here is that the president wants to demonstrate he's worried about inflation and what's significant is he's standing behind the fed as it raise interest rates >> this is a big political risk for him as with well hoe wroits in the piece that if job growth slows from to 550,000 a month, that's a good sign. we don't typically see that happen but it reflects the reality that inflation is already causing political fallout. and fighting it aggressively
seems the only option left. >> i think the president is trying to demonstrate he understands people are anxious about inflation and he's using whatever power he has to do something about it he's demonstrating a concern this is a very convenient. they have the political establishment as their back as they raise the interest rates. they're hoping all the talk about inflation will help prevent inflation expectations from getting worse than they are already because that's the essential part of their strategy >> this idea stoked by fed officials that maybe they're not going to do a lot more half-point hikes and has nick has been reporting and we heard from the fed governor yesterday and now the significance of the op-ed and summit, you have to wonder if there's going to be a lot more tightening to come from the fed than people expect
>> it's getting ridiculous now that that the fed has essentially preannounced what it's going to do 50 basis points increase once and twice, the speculation is what happens after that? and the short answer is that depends on what the world looks like then. i sort of think this is getting out of controel. my principal opinion is that jay powell is determined to be the fed chairman who let it get out of control is he'll air on too much rather than too little. >> what does ben say about all this right now you spent a lot of time with him in the last couple of weeks. and it -- as i read it, i can't help but escape the concollusion that what he's saying is it's always the fed's fault
if policy is too tight and loose. monetary policy is the primary driver of inflation and only the fed can really cure it is that implicitly his advice for what they should be doing right now? >> i think what he said is yes, the fed misread the economy and expected inflation to be transitory and is now moved very quickly to make direct for that mistake he has a great deal of confidence that the fed will achieve its inflation goal over the next couple of years and he said he wouldn't be surprised if the unemployment rate went up a little bit. not much fiscal policy can do unless the congress and the president are ready to raise taxes particularly on people who spend when taxes go up and that would mean raising taxes on the bottom half of the
population and one thing i'm sure isn't going to happen anytime son. he's confident they will do it but it's going to be tricky and this is me it's going to be hard to avoid a mild recession but a lot depends on luck. what happens with covid, ukraine, russia. what china does. a lot of it is out of the fed's control. >> and there are multifactor causes so, as we wait for this meeting, which should be underway any moment now, we'll expect a short public discussion followed by a lengthier private one. what are you going to be watching for >> this is more theater than substance. remember the last time, when we had a different president, and jay powell med t with him, the e released a statement in order to pre-empt a trump tweet but one thing i'm sure of there
won't be a joe biden tweet saying i beat him over the whed a baseball bat the only thing that would surprise me is that they're not 100% behind the fed and the rate hikes. and i don't expect that. >> quick programming note. san francisco fed president, mary daly will be on tech check at 11:00 a.m. eastern time don't want to miss it. for years the motto is there is no alternatives to stocks and the stock market just seems to go higher. but now that rate have moved up, with the potential to go higher, commodities are soaring and stocks are a lot less attractive or are stocks still the best place to be? chief investment officer at momentum advisors.
this is your phrase, your moniker. i think it's an appropriate one. explain it and where it leaves you in terms of the market >> sure. thanks for having me listen, a year ago we're buying stocks because there's nothing else to buy. even though we knew valuations were getting price ea. now we look at a market that pulls off a lot and bonds. it's a rerating across all asset classes. and now you can buy things and feel good about it really nice dividends and in bonds, there's good fixed income out there right now. there are reasonable alternatives out there in the market right now >> so, would you be buying bonds after everything we talk about that it proves to be more hawkish than people expect >> i look at a yield curve
that's still got positive smoke to it. and just last week i i was able to buy in the secondary market, bank cds insured for two or three years and i got a 2% rate interest i could not buy a 3% 52-year paper anytime in the last few years. i'd be cautiously optimistic that, even though i'm concerned about inflation, i would expect i get my money back in the future i'll be able to get a prettiy good rate of return in the future if you're going to buy bonds now is a decent time to buy them i would still say stocks are more attractive because there's a number of stocks with a dividend yield higher than stocks >> but on commodity, if you're interested in the space, physical commodities or equitie
with exposure? >> i think always the equities with exposure. when you're playing commodities, you have to be cognizant of the fact that there's tango on a lot of commodities and that just means there's a caught cost to rolling contracts forward. i used to work at goldman sachs years ago. i remember we had a bullish call on corn. it was the right call but we didn't factor in the cost of rolling the contracts. in a market where corn prices went higher, investors lost money because of the costs if i way bullish on corn, i'd buy a company in thing a a rucultural space that's actually producing the corn or theple whatever the product i'm looking to get exposed to. >> imagine that you make the right call and still doesn't work as an investment. you can imagine if the timing
doesn't perfectly play into your hands. what are a couple of investments you think investors could go for? >> a few others. so, i like merck it's got a nice dividend it trades at a discount. phillips 66 is another it's an energy space this year energy's got a lot of attention. i think wore in the midst of the energy priced super cycle where prices are getting higher. and i think phillips 66 is one of the companies that has been overlooked it hasn't rallied as much a atz a lot of the other energy market players. you have a lot of ability to pass on your prices to the end user i think phillips 66 is a good look and there's a a few others i look at small cap value as an asset class. the whole small cap value market
is trading at under ten times earnings right now i mean, things are really on sale >> whether it's through real estate cycle exposed equities or literally real estate which meanty of people have dabbled in >> i like real estate generally. if you have the ability to manage a property on your own, as an owner of real estate, you get to mark your rents up every year that's a thing that helps you fight inflation. but if you can't go out and buy physical properties, then the best alternative is look at wheat. and there's a lot of great uns out there. the ticker is residential. and their focus on apartment buildings and single family homes. mainly it's multifamily homes. got a great dividend yield as well >> and still making calls that space will continue to perform
it's like a quick master class so to speak. there are reasonable alternatives thanks again, we appreciate it allen boomer with momentum a advisors coming up, the eu's new deal is pressing oil to a new high and to make matters worse, bottle necks are fuelling fierce gasoline shortages up next why drivers won't be breathing a sigh of relief anytime soon and one of the people responsible for bringing "top gun" maverick to life, the first ever tv interview with his reaction to maverick's massive debut. his thaults on the future of the movie business and much more here's a quick look at markets it's down 86 s&p down 6 the 10-year back at 284. we're back in a moment
$4.16. you can tack a bunch more on top of that. $5 or so that's maybe the nationalal average. the spike in energy prices is spilling over am to the stock market where 19 out of the top 20 names are energy stocks look at some of the gainers. occidental is up 147% and we know when you look at prices across the country, $4.62. and $150 more than a year ago. oil and everything, brian sullivan is here to talk about this >> cost me $100 to commute here to studio and that's not an exaggeration >> there are going to be people who work at home to avoid the fuel hit and specifically what europe has announced is a, they're not going to allow ship imports but
they can do it via pipeline for the sake of hungary. b, that the natural gas continues, which is more important for the economy. and c, in a weird way we bear the brunt because the economy is still relatively more sensitive to that than europe. >> car based i paid $6.06 a gallon in new jersey yesterday this is a single station, one owner. he was taking aed a vant thoq situation. from an interngzal perspective nothing has been announced yet eu floated what they think they'll do tomorrow they'll vote. you're right they're trying to wean off russian oil by the end of the year largely by making it impossible to insure tankers with russian oil on them. greece doesn't like it because they're the big shipping everybody has their own beef
with some part of this but they are going to wean off hoping to get 80 to 90% of russian oil out of the eu. they're doing it to, they say, end the funding for putin's war machine. let's hope it works. my guess is india is going to buy up all the extra barrels it's only down a million barrels for russia russia may be making more money now. >> it is relatively better for the u.s. consumer that russia's oil ends up somewhere because the market is so tight, in a way, you at least want those barrels to find somewhere. but it's unfortunately going to keep funding the war machine >> india's been a huge buyer bizarrely there are russian-owned refineries in the eu in italy and sicily, italy's
biggest refinery is in russia. the question is where does europe -- now, europe's going to slow demand. but the cut off is more than the slowdown so, where do they pick up the extra barrels? to we start exporting to europe more maybe. an goalau? norway i'm not kidding. and the iranian nuclear deal is not getting anywhere so, those extra barrels are probably not going to be on the market at least not for a while if ever. >> notably in the president's op-ed, the only energy release measure is clean energy credits. in other words, nothing official from the white house about anything to specifically try to lower the price. so, should we expect it to keep going higher >> here's the thing about fossil fuel there's two uses
we frame oil in terms of gasoline and driving in place of jet fuel i get that natural gas, which, to your point, they did not touch, it's used to make stuff, make everything pharmaceuticals, plastics. wind turbines, solar panels. bodies for cars, electric cars natural gas is used to heat homes so people don't freeze to death. >> it's still getting the spike from the global energy crunch. in that sense, there is going to be an impact we haven't knfelt the doubling f the impact we've felt. some resolution with the russia/ukraine war >> that would be huge and huge for the world in so many ways. just end it. and from what i understand, there are conversations maybe
starting to happen let's pray that is the case. and you'll see things shuffle around if that happens everything i'm reading, and it's not opinion. aggregate everything i read from people i love and trust. you're getting 1.5 to 2.5 million barrels off the market good to squeeze putin, as long as he doesn't sell it anywhere else triple a is estimating 8% jump in driving this memorial day from last year, which was a huge ju jump because of covid from tent 20 everybody's at the car and the airport. jet fuel shortages possible europe probable, more than possible and quickly, can demand destruction in gasoline doesn't happen that fast most people drive because they have to.
imagine if everybody started going back to the office >> and 80% higher memorial day, not a lot of sensitivity to high oil prices until next time. >> i'm going to bike home. >> still ahead, will fossil fuel prices push a cost to energy well look at rising energy cost mean to the cumod tes making renewable? the latest numbers and the areas suffering the most from tighter spending i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
(ted) after talking and texting for years, we got married... matching your job description. for the family plan. (jane) and then we really expanded our family... for the wireless savings. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family. get visible. single-line wireless with unlimited data for as low as $25 a month. welcome back to "the exchange." the dow is down 460 points at the lows this morning.
although woe haven't yet heard anything from the fed president's meeting with chair powell as for the movers, looking a at shares in the crypto space trading higher micro strategy in the green as bitcoin stacks above 32,000. american eagle falling after morgan stanley cut its price a targets 8 bucks. 40% down side from here. they say more room for sales misses and margin declines and china internet etf on pace there the fourth straight positive session one of the worst performers over the past year. tesla on pace for the fourth straight day of gains. it's up 23% in the short period of time. it's low was $460 a share. and let's end with a check on this month 's worst dow stock.
it's walmart, down 15% missed estimates for the worst day since 1987 earlier this month. now to tyler matheson for a cnbc news update. and heres is your cnbc news update the heavy death toll from flooding and mud slides in brazil stands at 91 with dozens of additional people missing hundreds of state and federal rescue workers are still searching for survivors. this follows similar flooding and mud slides that occurred in brazil back in february. amid calls for gun control after last week's pmassacre, more tha a dozen shootings occurred the gun violence archive tracked at least fraeng, quote, mass shootings in the country where four or more people were shot. at least nine were killed in the
shootings with more than 60 injured. the democratic-led house judiciary committee is planning an emergency session thursday to markup a package of gun violence prevention bills called the protecting our kids act would raise the buying age from 18 to 21 years old. among other measures for full in-depth coverage of congress's planned bills, tune in to the news with shepherd smith tonight at 7:00 p.m. after a two-year delay, "top gun maverick" finally hit the screen and audiences were eager to hit the theaters. it raked in more than 160 million in the u.s 300 million world wide, shattering records joining us is one of the men behind the move a. producer and sky dance ceo, david elson is julia, i'll hand to you.
everyone i know that saw it raved about it >> yes, indeed this is a movie that 99% positive audience score on rotten tomatoes and has been a huge financial success for paramount and david elson and sky dance media. thank you so much for joining us today. and what is your first tv interview after over a decade in this business. >> thank you for having me and it's a privilege to be here. >> i want to start with the "top gun" maverick numbers. the box office is higher than anticipated wrerd. how does the performance of the movie you worked on for a decade change your outlook on what type of movies to invest in going forward and your expectations for the box office >> we could not be more thrilled and excited with the performance of "top gun" maverick this
weekend. our incredible partners with tom cruz and i think what top gun showed is they want an escape, they want a good time at the movies and we're thrilled we were able to deliver that to audiences this weekend >> i think it's interesting you've made some of the biggest movies on netflix and amazon first-look deal with apple films. explain your strategy and perspective on what type of films should go on what platforms. >> we started the company 12 years ago. w we're diversified and the most recent one, sky dance sports we really believe and the quality is the best business plan wore big believes in consumer choice
for us, it's a case-by-case basis on are we think the particular story is going to reach the broader audience we're proud we've released three from netflix the tomorrow war and without remorse last year with amazon. now we have a deal we're excited about with apple and we have a first animated movie coming out in partnership with john laster and holly edward >> so, big picture though, do you think audiences are going to continue to go to the theater? or do you think top gun will be an aberration? and the numbers may drop below 2019 in terms of summer box office >> i think we're still recovering from the pandemic what i hope "top gun" helped prove this weekend is for the right movie, they'll come back to the theater
they want to so stories like "top gun" on the biggest screen possible there's no bigger place to see it than an i max screen. it's definitively changed consumer behavior and above anything else, audiences are going to want choice and peep rl going to be selective about what they want to see at home and the atricly. we love being able to be a content engine that can power the overall ecosystem around us. >> i mean, you have experience with a lot of the different company as you concerned about a contraction in the number of subscribers that netflix raised a lot of red flags about and what about for the industry as a whole >> we're big believes. we're big believes in netflix. we've been partners with them since they started in the original content business.
"grace and frankie." we just premiered the series finale last week. for it's the longest running show in the history of their network when you look at -- you guys have been talking about the rising inflation, rising interest rates mortgage rates going up. i think there are larger macro economics contributing when you look at the entertainment business, it's always been countercyclical. it's still one of the most cost effective forms of entertainment. and what "top gun" proved is everyone needs an escape with everything going on in the world. >> and i know 10 cent is one of your investors i believe "top gun maverick" will not get a release in china. i wondered what your outlook on
the chinese box office in general that's historically been an important piece for the studios. >> we have a great relationship with 10 cent they've been an investor for a long time. it's still unknown whether or not we will get a release date in china for "top gun. "some geopolitical tensions have made that tricky it's a significant market and our hope is always to try to get our films into the marketplace >> certainly a growing market there. before we wrap up, i'm wondering if you can give us perspective on what you learned from watch aing your father, larry ellison build and grow oracle and what you've been able to take from that learning and apply to the entertainment business >> my dad is one of the most
competitive people that ki've ever met his tenacity and perseverance was an incredible learning lesson if there's something you believe in, to never stop fighting for something. that you love if you really believe it's something that can work as "top gun maverick" was the first movie and we signed our original deal in 2010, it's been a journey and thanks to lessons my father taught me, we're thrilled to have it in theaters. could not be more grateful to our partners at paramount. and incredibly grateful to our film making partners and everybody involved in the picture. >> thank you so much for joining us in the first tv interview and woe hope you will come back soon >> thank you not many people grow up as the
son of someone like larry ellison and i liked his answer >> it took a lot of persistence to get this movie made after over a decade. you can only imagine the challenges before the pandemic and the decision and debate about what to do once the lockdown and pandemic started and a lot of movie theaters were closed >> it feel almost like a symbolic end, hopefully, to this whole thing. coming up, senator elizabeth warren has the new price target back the details of her new bill are next
welcome back senator elizabeth warren has had her eye on spacs since hast year and reportedly poised to crack down on them and here with all the details and whether the bill will gain traction once again, may i suggest the market is doing the work for her. >> it's a chicken and the egg problem. now you have potential legislation here
she plans to build on the sec's proposedsgoidlines she plans to code nigh definition of spac underwrite aers and close the lop holes she says they use in spac projections. the proposed regulation ends today. we should get more information in the coming weeks. they sent letters to six creators of stocks seeking information about compensation and potential conflicts of interest. so, today, she revealed a large sizeable report based on the findings, as well as experts in the field that are helping inform this ledge slagsz it's unclear what kind of support this bill would get but it could add to an already chill
under environment for spacs. and they have lost 40% this year and the number of new spac issuance plummeted only 52 new spacs raising 9 billion, 1/10 the value raised in the same period in 2021 >> incredible. that's what you wonder is -- listen, i'm not saying there wasn't a problem that needed to be solve issed where is the most important change fgoing to come from >> i think the catalyst is liability for underwriters what was the big sea change is you have the bold bracket firms. goldman sacs even credit street historically hadn't been huge in the spac role.
it really was in terms of fees for their firms. if these rules and especially th proposed legislation becomes law, they could face more liability in things like the projections, if those turn out to be wrong and other issues >> hasn't goldman already shut down the spacs department? because they were concerned about a legal blowback or investorlout >> pretty much every big bank has put a pause on this business essentially because they need to see hoy the proposed rules play out and what the risk profile looks like if they're liable for the spac, it's not worth being involved in despac processes i've heard indications of once they find their merger target are like i don't need back pay compensation for this going through because i don't want to come afoul of any the potential
regulations in the process and without the big underwriters, with it's a little harder to do there are underwriters still doing this they're just smaller firms >> i don't want to say gone for good but not anything like the market it once was >> i don't think so. >> good to see you the consumer confidence index dropping again after a tick higher in april the gauge that measures consumer six-month outlook and big ticket items like houses and cars cooled but so did plans for vacation. ceo of the conference board and cnbc contributor great have you here and maybe you can give usa anecdotal insight into what's going on with the u.s. consumer >> the index did drop a little bit.
it's been very flat over the past three months. it's been bouncing around, which is surprising because with all the talk about are we going to have a resession or whatever, the consumer has really held up here and the drop or little adjustment has been abouct the future and this is driven by virtually full employment. their wages are going up but they're nervous about down the road and the reason is because of inflation and that's why you see the purchase intent for big items dropping and now we see interest rates coming up. so, borrowing is also more expensive. >> the fact people are pulling back on vacations, what are you learning >> i don't know. i haven't been on a plane that had an empty seat. this inflation thing is the key thing. we did the ceo confidence index
and they're worried about inflation too and raising prices as part of that. the ceo confidence index came down here a couple weeks ago that's more of a precursor to leading into possible recession. and the ceos are telling us it's not consumer we're worried about and not supply chain we're worried about the fed. they're moving two levers at the same time and woore're worried they're going to create recession. the consumer is very strong. >> and we thank you for your time president biden is meeting with fed chair at the white house let's listen in. meeting with chairman today and secretary yellen to discuss my top priority. and that is addressing inflation.
and in order to transition from historic recovery to a steady egrowth that works for american families and my plan is address inflation. starts with a simple proposition. respect the fed. respect the fed's independence, which i have done and will continue to do my job as president is not to nominate -- i would nominate highly qualified individuals but to give them the space they need to do their job. i'm not going to interfere with their critically important work. the fed has dual responsibilities one employment and two, stable prices jay powell and other leaders at the fed have a laser focus on addressing inflation, just like i am and with a larger number of board members confirmed, i know we'll use those tools to address rising prices for the american people
i look forward to powell's continued leadership with the fed and the senate confirming my final nomination in the near future and thank you for coming in >> thank you let's go thank you. let's go thank you a. let's go thank you, thank you let's go come on, you guys. president biden meeting with fed chair jay powell moments ago at the white house let's bring in kayla for more reaction no major headlines yet >> reporter: a brief set of comments and new guidelines for the fed chair newly reconfirmed.
this after president biden announced he would nominate jay powell for a second term thefla inflation has only got worse since then he's looking to the fed to establish independence and for g this issue at the feet of the federal reserve, which has the most powerful tools to deal with inflation. among the tools that president biden has suggested he could use, which he said in an op-ed in "the wall street journal" last night, he's talked about more releases from the emergency oil reserves to bring down gas prices and potentially working with congress to pass clean energy tax credits but in that op-ed, he notably did not mention his build back better plan writ large, which he and his administration officials have long argued will bring down more costs in the medium term. and he also did not reference tariffs on goods imported from china. secretary yellen who you saw there in the oval office has advocated for a large scale roll back of tariffs to spur the
economy and lower inflation. you can imagine that president biden, as he is weighing a decision on that front will want input from chair powell on that too, kelly. >> absolutely. kayla, thank you very much kayla tausche reporting at the white house. dow down 60 points we're still well off session lows nasdaq is -- s&p is -- well, one of them's positive. this etf is posting double-digit gains this month, easily outperforming the broader markets, but the shine could wear off if costs keep climbing. why inflation could put a halt to the entire industry, that's ahead.
welcome back as the dow is erasing a 450 point decline right in front of our eyes, it is about to go positive the s&p is up four points. ed the nasdaq up 39. it does seem to be accelerating in the wake of president biden's meeting with jay powell. solar stocks were some of the big outperformers this month solar isn't the only renewable on a tear. how rising cts cldosou derail the green energy trend next. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.
at adp, we use data-driven insights to design hr solutions to provide flexible pay options and greater workforce visibility today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ (vo) everyone knows to get wireless savings, you need to be on a family pla- ...oh... so you can have more success tomorrow. (jane) with visible, i get unlimited data for as low as $25 a month. no family needed. (vo) i guess i spoke too soon. visible. single-line, unlimited data as low as $25 a month.
etf seeing nice gains this month. it's up almost 12%, but persistent inflation could actually derail that run pippa stevens has the story. >> falling costs have been key to renewable energy since it makes wind and solar more competitive with fossil fuel power. but now costs are rising, in part because of the jump in raw materials reversing years of declines, and things are only getting more spexpensive. not a surprise given surging demand alongside supply chain disruption polysilicon has tripled in the last 18 months, up more than 700% since january 2021. cobalt has jumped 66%, and nickel has nearly doubled. for most minerals and metals vital to the energy transition, the price increases during the first few months of 2022 have exceeded by a wide margin the largest annual increases during the last decade. now, looking forward, analysts
are split on whether costs will keep on rising at this rate. bank of america said markets may not loosen much, while goldman believes the battery metals bull market is over four now. morgan bazillion from the colorado school of mines says rising costs are a fundamental change for the industry and will impact deployment. these stocks are up for months, kelly, as you noticed, but still in the red for the year. >> pippa, why does goldman think that the run is over for the battery commodities if you want to call it that? >> they said that prices will keep rising through this year, but then next year actually lithium will drop down to about 16,000, around that range, and they said that everyone is aware of how important these metals and minerals are for the transition so there will be this supply response they are a bit of an outlier, not everyone's calling for that. it's certainly getting a lot more attention. >> yeah, we can only hope. we've seen it before hopefully we'll see something similar this time around pippa, thank you very much
our pippa stevens. coming up, we're looking at another area of the economy where inflation is starting to hit. real estate, did why one housing economy says there are signs the market is softening and what it means for supply ahead on "power lunch. over to tyler. >> kelly, thank you, and welcome to "power lunch" for this last day of may i'm tyler mathisen, and here's what we have planned for you a critical and rare high level meeting at the white house the president talking with the fed chair as the central bank battles decades high inflation is the administration signaling perhaps that it will accept a slower economy and rising oil prices fanning inflation fears. crude hitting $119 a barrel in trading today. a buck 25, 125 is that next? we've got the ceo of liberty energy here for his outlook on