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tv   The Exchange  CNBC  August 5, 2022 1:00pm-2:00pm EDT

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>> zoetis. they narrowed the range for earnings companion animal of 14%. >> okay. next >> home depot. >> yeah, yeah. >> citigroup i said a name, not like ten sent sentences. i'll see you in overtime [ laughter ] hi, everybody. i am jon fortt in for kelly evans. a big on the labor front, the july jobs report coming in much hotter than expected a look at how the fed could get with a potential fallout for the markets. plus consumer are spending big on experiences, helps livenation for a big quarter. we're joined live with the ceo
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on what he's seeing. and the fed's impact on housing. more lenders have been hit hard by rising rates. there could be a shakeout in the industries he details are ahead the july jobs report and steve liesman. steve? >> jon, thanks job growth unexpectedly surging in july. bolster the case at the fed for continued hefty rate hikes jeffries is writing -- forget recession. the market narrative should be shifting to stronger for longer. set to accelerate. this could cause real wages, income spending at gdp to accelerate sharply in the third quarter. the data suggests a bit part of the employment rebound is employers getting back to the level they were at before the pandemic take a look at some of these numbers. here's where the jobs are. it's a bit below where it was in february 2020, but we've had a
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lot of population growth construction still did well, despite what's happening in the housing and mortgage markets and local education, here are the numbers. i'm not going to real you all the numbers, but they're all well above, 528 jobs looking for 250, and the revisions were in the positive way, up 28,000. that's the important thing hourly average wages up more than expected. so powell has said -- fed chair jay powell has said pretty consistently he believes the job market could withstand sharp rate increases this report helps the case the only question is whether the job market is too resilient to the fed medicine, which could mean heavier and more rate hikes. >> steve liesman, thank you.
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wall street seemingly taking today's hot jobs report in stride, stocks falling initially at the even, with the doubt dropping more than 200 points, and nasdaq down 1.5% at the lowest let's get to bob pisani at the nor stock exchange with the latest bob? >> yeah, no recession now. the concern is there may be one down the road if the fed continues to be aggressive that's the topsy-turvy world for the stock market the low print was the open we were on the verge of breaking below 4100 that was right at the open since then we've held on pretty well, actually made a bit of a comeback the nasdaq is the weak one so, remember, a strong economy,
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and material names free port mcmoran although vat -- and when we see 18 basis points, 1 basis points increase in the ten-year yield, that will get bank stocks going. jpmorgan today some of the big super-regional banks, wells fargo all having a nice move to the up side tech has had an amazing run. it would not be surprising to go it sell off a bit. apple has been terrific recently, it moves up, and doesn't move down much micron -- nvidia is up 20% in the last few weeks, still a pretty modest decline here for some of the big-cap names.
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the stock market is a discounting mechanism. that's hard for people to understand the news indicates we're not likely in a re session, but as steve said, there could be more increases by the fed, and there could be a recession the stock market looks ahead trying to figure out what's going on, and the immediate certain is the six to eight-month period down the road. >> not lowers interest rates, boy, it seems to be discounting something different every other day, though. bob pisani, thank you. >> that's right. as we mentioned, today's jobs report raidsing expectation the fed could be more aggressive
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through the end of the year. one of my next guests projecting 50 basis point hikes in september and november, and then another hike in december welcome to you both. maria, is bad news good news is good news bad news? how do we digest this jobs report, which shows that the consumer and the economy should still be reasonably strong. >> i think this is good news is good news. we went into this day, thinking that bad new england would be good, and we've seen the market has reacted quite well to a super-strong number. at the end of the day we're going through a process of normalization of all the imbalances that happened because of covid and all the other issues that have been squechbt to that, with russia and china
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so the fact is that the u.s. is a growth market. this jobs report is a good news job report. >> michael, though, what does this mean about the expectations, what we should expect for interest rate hikes, and then the likelihood of a soft landing this is proving a pretty different economy to tame. >> yeah, that's exactly right. i'm a little more in the camp this is a double-edged sword report, where i completely agree that it sends a very strong signal about underlying momentum in the u.s. economy. i think strong data means the fed has more work to do, so, yes, whether that's a 75 basis point hike in september, or make a series of 50 basis point hikes to year end, i think this means, you know, current and existing fed tightening hasn't slowed things down all that much, so they probably need to extend their effort and front load some
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of that. >> we were getting chatter out of the fed this week, saying don't expect us to be all over the place, we're going to raise and stay higher, to make sure we have inflation under control that was before we got this jobs data what kind of position does this put them in? and what sort of investments should the folks at home be thinking about making, based on that >> right i think that the message this sends is don't expect a fed pivot back to a moor balanced reaction function. the fed certainly keyed in on reducing inflation, and in their mind, they have to at least take some of the edge off the domestic economies and labor marked to do that. we'll see if it ends up being a soft landing or something worse, but i think the stronger the data is, the more the fed will be inclined to lean against it
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they had they need clear and compelling evidence that inflation is on its way back to 2% i think a switch from hikes to cuts is premature. i think the fed will likely be in a restrictive policy stance for longer than the market is currently expecting. >> maria, how are you putting money to work here technology specifically cybersecurity and software, you say healthcare also we're still at this elevated level in equities versus where we were when the fear was, oh, boy, the economy is running hot on its own, and people were thinking, the economy will self-cool, but now it doesn't look like that where is safe to put money right now? >> well, you know, for thoughtful long-term investors, we think these volatile moments provide excellent entry points but they've come down significantly from the beginning of the year, where everything, bonds, equities were priced for
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perfection, no margin for error. now the average stock is down 30% from their highs, and valuations relative to 30-year historic averages are significantly better so we are deploying cash carefully but thoughtfully into the equity markets, rebalancing. individuals can harvest losses so they don't end up paying too much in taxes, and going into sector that is secularly well position the what i would avoid is fixed income i think if you need to be in fixed income, you stay very, very short, because you're getting paid most of the return, but you're avoiding areas where, with interest rates going higher, you could definitely get hurt. >> michael, what about international? >> well, the growth environment globally is as much as trickier than it is in the u.s. all evidence is pointing to very subdued, if not outright
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recessions here we're talking about your larger developed economies like europe and u.s., and now for the u.s., i would say be careful to extrapolate weak growth globally to mean weaker growth in the u.s. our trade channeling is smaller than in other economies. the weaker growth is outside the u.s., the more it tends to support consumption through lower commodity and energy prices, as we've been seeing recently there's a bit of a paradox here. sometimes the weaker it is outside the u.s., the better it is for the u.s. >> interesting maria we all just got through the second week of a brill busy earnings season where results were pretty strong, guides were missed what is the overall message you take away from that.
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we have a situation where it didn't look like congress was getting much done, and then there's a surge. shoo investoring be thinking about what happens being a marked moving time of event? >> i think they both matter.
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what happened with the economy will come up with politics i think both matter. i think the government is trying to put some things that will be positive, so that this election can be a good midterm election >> michael, if politics do matter, for what particular types of equities and where should investors position right now? >> well, i think that, in the moment, politics are mattering in the sense, but what is coming out is a balance budget amendment -- not an amendment, but a forecast of a deficit of 100 and 300 billion. it would be something that argues for medium-term stability. i don't pick asset classes -- >> well, here is the president hold on, michael let's here what he's got to a. >> 528,000 jobs were added just
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last month to this country's employment 528,000 jobs we have now nearly doubled -- almost 10 million jobs almost at 10 million jobs since i took office. that's the fastest job growth in history. today we also matched the lowest unemployment rate in america in the last 50 years, 3.5%. yes, 3.5%. today there are more people working in america than before the pandemic began in fact, there are more people working in america than at any point in american history. what we're also seeing that just a few years ago many experts said ways literally impossible, the revitalization of american manufacturing. since i took office, we have created 642,000 american manufacturing jobs in america. we've seen the biggest and fastest job recovery in american
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manufacturing history since the '50s some people may have given up on american manufacturing, but the american people didn't, and i know i never did that's why i made it make it in america, that phrase, make it in america, the cornerstone of my economic plan. today's report proves that it isn't just a slogan, it's my administration, it's a reality i've also made it a priority to bring down the federal deficit after watching mice predecessor every single year increase the debt, every year from the four years he was in office, i said no more. the days of exploding deficits are over i've kept my word. just take a look at the facts. the deficit is down a record $1.7 trillion this year. that's right, $1.7 trillion with a "t." that's on top of the $350
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billion reduction first year in my office. i know people will hear the jobs report and they don't see it, they don't feel it in their own lives. i knowhow hard it is it's hard to feel good about job creation when you already have a job and you're dealing with rising prices, food, gas and so much more. i get it i literally can remember sitting at my mom and dad's dining room table and watching them choose which bills they were going to pay that month, because there wasn't enough to pay all the bills. i get it that's why i'm doing everything in my power to lower of cost for families we've seen some progress gas prices are coming down they're down almost $1 a gallon from where they were just a month ago. and we're making progress. we now have more than 50 straight days of falling gas prices in this country
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price at the pump is less than $3.99 a gallon in move than half of the gas stations. $ $3.79 is now the most common price to pay per gallon. we're on the steps to help congress to lower inflation. the inflation reduction acts tiff give medicare the power to negotiate for lower drug prices. that's something the american people have been promised for years for decades. we're on the verge of finally getting that done. it also keeps down healthcare insurance costs by keeping premiums for those on the affordable care act down $2400 a year it will make historic investments in clean energy,
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security, the security of the country is at stake. we're going to save american families hundreds of dollars a year on paying their energy bills by allowing them to have money to invest by getting -- allowing them to put in new windows and doors, solar panels and the like, and get tax credits for that also inbot a corporate minimum tax of 15% on billion dollar companies that will put an end to what we have seen in recent years. we're 55 of the largest companies in america pay zero federal taxes on income over $40 billion combined with profit this will reduce the deficit by another $300 billion and one more point this bill will not -- let me repeat this. this bill will not -- will not raise taxes on anybody make less
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than $400,000 a year when it comes to the benefits of this bill, you don't have to take my word for it. 130 commissions, seven nobel lawyer aton the economics, former secretaries of treasury, federal reserve -- former federal reserve vice chair former director of the congressional budget office that wrote, quote, will fight inflation and lower costs for american families on setting the stage as to strong, stable and broadly shared long-term economic growth. in short, this bill is a game changer for working families and our economy. i look forward to the senate taking up this legislation and passing it as soon as possible you know, i know most families are focused on just putting three meals on the table, taking care of their kids and paying their bills. helping you do that is my job.
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that's a president's job as well i have one more job, which is not only to focus on getting america through the economic challenges we are facing, but to look to the future, to make sure we're building an economy that meets the needs of american families, to be able to succeed, and for american in the future when you step bulk, today's jobs report is part of a brokeder st broader story. all the rewards of the economy seems to be going to those at the very top when i came into office, i was determined to change that. i ran for president, saying i was going to restore the backbone of america, the middle class, grow the economy from the bottom up and the middle out -- not from the top down. when the middle class does well, everybody does well.
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the wealthy do very well and the poor have a way up my economic plan rests on five pillars -- get america back to work at a record pace. all americans, all americans, leaving no one behind, and we're doing just that. in the process for the first time in a long time, workers are being empowered. instead of workers begging employers for work, we'll seeing employers have to compete for american workers where i come from, that's a good thing, and it's long overdue two, we're literally rebuilding this nation. our roads, our bridges, our ports, our airports, clean water, high-speed internet for all americans. for too long america has failed to invest in itself. we changed that this year with the biggest investment in american since eisenhower's interstate highway system.
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we're now committing to rebuilding america, not just for tomorrow, but for the next decade that inclusion investments in things like rods and bridges, but investments in research and development, the next-generation of technologies. they're all going to remake the world. as i said earlier, we're going to build it here in america. let me be clear. we're going to invest in america. we're going to make it in america. we're going to win the economic competition of the 21st century in america three -- give working people in the middle class a fighting chance more than just breathing room, a real chance to get ahead by making their everyday things more affordable and accessible, like health care, prescription drug costs, energy, child care, education, housing, and so much more, because when we lower those costs, of all the
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necessary things, we improve their standard of living four -- make our economy more competitive and less concentrated when too few companies dominate a market. that reduces competition, drives up the costs for american consumers. that's been going on for too long we need to give small business and entrepreneurs more opportunities, and consumers more choices at affordable prices the fifth thing, the fifth pillar, we're going to reward work, not just wealth in america, so that everyone pays their fair share in taxes. ipt a capitalist i'm not trying to punish everybody. i'm saying everyone, everyone should pay their fair share, just their fair share. america's a nation that was built on work. we can never lose sight of that. that's why the pace of the recovery is so important
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in the past, it's taken years for america to recover from an economic crisis. when that's happened, millions of people suffered for years years, just trying to get back on their feet. well, that didn't happen this time my dad used to say that a job is about a lot more than a paycheck it's about your dignity. it's about respect it's about your place in the community. it's about being able to look your child in the eye and say, honey, it's going to be okay, and mean it. that's the economy i'm determined to build today. that's the economy i'm looking at now, a part of changing the way things have been done in the past is by restoring faith in the american people and their government today, i'm going to be signing very shortly two bipartisan bills that begin to restore that faith. the key to economic recovery is resurgence of american small
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business small business hires many people as major corporations. we just learned last week that small businesses with less than 15 employ crease created nearly 3 million jobs in 2021 three million. that's the most ever in a single year more americans applied to start new businesses than ever before in our history part of our plan is making sure when we commit funds to help american small business, it actually goes to the small businesses it's supposed to go to we know the last administration, that's not what happened too much of small business relief funding passed by the congress ended up in the hands of those who didn't need it, or criminal syndicates who outright stole the money. not only did the trump administration help the biggest teams -- that is president biden addressing today's strong jobs report and the inflation
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reduction act. let's bring in our kayla tausche. it seems like he's trying to use this moment to reshape the narrative a bit, with his approval ratings where they are, 10 million jobs created, talking about small business creating jobs, acknowledging inflation. how much that is this strong jobs report and some of the legislative, looks like, wins that are happening on capitol hill, how much is that changing the narrative? >> reporter: jon, it certainly adds some fuel to the art that the labor market is simply too strong to declare the u.s. in a recession, despite last week we saw two straight quarters of a shrinking economy in this country. there certainly have been mixed signals on what the economy is telling us president biden is taking a victory lap after a rare string of domestic wins, ranging from the economy shows that job losses have been completely erased gas prices are back where they
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were, and some support coalescing for critical pieces of democrats' legislation, not least of which the inflation reduction act, which could see a vote later on this weekend, but it comes against the backdrop of a shrinks economic inflation that remains incredibly he, and that it will raise interest rates, again in september, because the economy can handled stuff like that. that means it would become more expensive for consumers to borrow volers -- are saying while there were positive signs, notably in kansas, they are still focused on the economy, number one, first and foremost and what it can deliver for voters. >> this economy feels very different if you're rich versus if you're poor, right? these numbers that come out today are exciting if you're
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thinking, i own some equities, i already own a home, not looking to buy another one, maybe things aren't so bad. maybe q4 will hold up just fine, but if you're on the poorer end of the spectrum, gas might have come down, but it's still expensive, and so are a lot of other things. >> reporter: that's absolutely right. that's one of the areas that the white house has faced criticism. on the campaign trail, he was adamant that he wouldn't raise taxes on people masse len that is $400,000 a year, but critics are arguing it doesn't matter if you raise taxes, bauer the costs are going up regardless, perhaps in a bigger way than in their taxes had gone up. there's questions about if there's anything they can do there's still questions of whether it's tools too late.
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>> it's important to see the ramifications. thank you. higher prices not stopping consumers from spending, helping livenation to compete on the top appeared bottom lines, the ceo saying consumers are spending more on experiences. in fact the company saw the strongest quarterly attendance figures ever, with attendance 20% higher than pre-pandemic levels the stock not reacting much to the news, though, lower on the session, down more than 1% this year joinings me is gotta start not only the difference between people who got a lot of money and people who don't, there's this bruce springs steen ticket issue, $5,000 tickets.
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i know most of the tickets aren't $5,000, but it's just such an illustration of how demand remains strong among people with a lot of money, and not so much for people that don't. >> we saw demand top to bottom, across the business we're see fans buying tickets, buying the expensive tickets if they want to sit in the front row, also buying tickets just to get in and see the show we have an average entry price of $33, which is up only 5% from 2019 despite the mines. the pricing is up about 10% from 2019, which remains below what the inflation has been in the u.s. over that same period yes, a few of those tickets get the headlines, but the reality is that this is an affordable event for the vast majority of
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people we're seeing that in the results. they're just there to have a good time. >> joe, in so many different industries, we're seeing this post thick of the pandemic spike, and then a cooling of that if you look at e-commerce, we have seen it a number of different stocks what are you seeing when it comes to live events and the demand for those, the post-covid demand to get out, being around people was so huge, but what are your expectations for '23. does it continue off a high base or does it cool? >> one of the things that's different about concerts and live experiences, we've been growing from 2010 to 2019. we are growing double digits this is not an aberration to be growing alternate this point and now we've gone back to it. as we look at '23, we continue to feel very good. a few things, first of all, the
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percentage gdp being spent on experiences is not yet fully returned to the 2019 levels, so we have strong tailwinds there secondly, it's never been stronger, sitting there six months ought we have a tremendous lineup we'll be putting on sale as we get into the fall. i think we'll see another great year in 2023. coming up soon, bad bunny, lizzo, post malone tell me about how the operation of the business have changed or not. there was a lot of time to work on technology, on contact lists, maybe on some things that increase the wallet spend while people are within the event. is that happening? is that paying offer right now >> absolutely. we're seeing a lot of what is happening at our festivals, what is the better expect like not just the usual show up
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at the show, but where is the differentiated, whether it's a vip club, or fast lane, vip parking, how do i have even a higher experience. we've spend a lot of time over the past three years what are all the use cases. what do they want differently? how do we make sure we can deliver that as they come out of the pandemic. >> have you figured out finally house to monetize that instagram fomo people are so focused on not just being there, but showing people, hey, look, i'm here. how is that working? >> it's working great for us you're absolutely right. having differentiated experiences. it's great to show you're in the crowd. it's even better to so when you're at the front of the rail or at the club with the different experience. >> thank you
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>> thank you. consumers are continues to spend on travel as well. that's a common themes we've been hearing from the major players. marriott, avis, airbnb, trip adviser, all seeing strong demand, but finding enough workers to keep up with that demand, that's a challenge kate rogers has more in today's "help wanted." >> even with today's job gains, we're still more than 1 million below the pandemic they're somehow limiting rooms, because they just can't service them. >> 97% said they had opens, 49% said they had severe staffing shortages that were impacting operations about half the hotels are being impacting in a way that is hitting operations >> in california, the staff are
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doing more with less some restaurants on the property are now open just five days a week, and they're also limiting hotel cleaning during stays. >> we limit the number of items on the menu. that helps in the back of the house. people are getting used to not a full service every day if someone is staying with us for three days, we're doing limited cleans between each night, and then we do a full service on checkout and check-in >> now, miller says inflation has cause ticker shock, but maintains the value is there and guests are getting used to prices, and frankly hotels are doing more with less, because everyone is just so excited to go on vacation. >> indicate rogers, thank you. i wonder which happens first -- consumers getting tired of not getting everything they think they should be paying for, or
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the places actually coming down. stocks meanwhile, initially dropping on the strong jobs number, but the dow is now up ever so slightly, while the s&p and nasdaq have slight losses. yields have also moved higher, as investors expect a more hawkish fed. up next, the margin play, and dividend play, plus one name to avoid as yields move higher. we'll be right back.
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welcome back today's red-hot jobs numbers has the market expecting a more hawkish fed through at least the end of the year. gina sanchez is chief market strategist at lido advisers, as three rate-sensitive buys, and one name to bail on today. gina, first up bank of america, shares are up 8%, still about 30% off their highs. this one you're calling your margin play. why? >> this is one where bank of america has a solid depositor base that doesn't leave the bank if interest rates go up
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elsewhere. they have -- and charging more and more on those loans, so the net interest margins tend to expand during interest rates rise we've seen it historically and see it now we think bank of america is one of those playing where you simply make more money when interest rates are rising. >> and they are rising, for sure your next buy is morgan stanley, shares up 12%, this is your valuation play you like the recurring revenue stream trading at just 12 times earnings right now >> eah, absolutely everybody this is a cheap stock relative to the rest of the s&p this is one that can participate to some degree in the net interest margin play, but the real story is the fact it has tremendous recurring revenues firms whether collecting a regular fee for wealth management services, and through
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their investment book as well. and so those two units are doing very well, very profitable, stable, and we think quite frankly the valuation is very cheap right now relative to what you get as a stock we think that this is going to be able to weather the interest rate hike, because the valuation just isn't that high. the final buy, also a financial company, t. rowe price, on pace for the third straight positive week this is your dividend play is it a dividend yield play, being so far off the highs >> well, yeah. this is actually a growing dividend play. this is a story of a company that is not only growing its dividend, but the dividend payout ratio is like 3%, more than covering that dividend with earnings so that solid, you know, that solid fee -- the fee they good
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et for managing investments is, you know, they're turning around and giving that back to the investors. when interest rates are rising, cash is king dividends is a great way to get cash out of your portfolio without having to sell anything in your portfolio. we just really like the dividend growth story, along with the fact that the underlying business is good business. three financial names are the buys here's one to bail on, also a financial name robinhood, on pace for the best week since march, after announcing it's trimming the work force by nearly 23% it's the second round of job cuts this year, and missed street estimates, posted declines in both users and assets under custody the hood is more than 80% off its highs. why isn't is it cheap? isn't it supposed to be disrupting those others names? >> robinhood hasn't figured out
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its profitability yet. they just got hit with a $30 million know your customer kind of, you know, fine so that's sort of anti-money laundering space is not where you want to be running fast and loose. they were running fast and loose, and they got caught that i examination came back with a lot of questionable elements of their business model. so if they can't get their business model, they are operating in a regulated space if they could get their regulation house in order, all of the profits they're going to make will end up getting spilt back out in the form of fines. even though they are trying to get profitability under control, we think it's in response to the fine, not necessarily the right direction. we think this is dead money until it really has its business model in order. >> fast and loose, had a good year in 2021, but not so much in
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2022, you're saying. ina sanchez, thank you coming up, this stock soaring today, still down big for the year the name and what's moving it higher, next
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the dow's low was down 237 points, high was up 22 -- actually it's up 35 points right now. here's the mystery chart we teased before this break draftkings is soaring on a better than expected revenue and adjusted earnings report for its latest quarter the company also raising full-year revenue forecast that stock is up, but still down 32% year to date coming up, inflation hitting both companies and consumers, but that could prove to be a boon for the company's morgan
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stanley calls deflation enablers we'll talk about bringing down rising costs, ne xt bubbles bubbles bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles. space. the boundary of human achievement. the new frontier. ♪♪ eh. ♪♪ it's not time to escape. it's time to engage. it's time to plant more trees. hoo! ♪♪ time to build more trust. time to make more space for all of us.
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welcome back to "the exchange." morgan stanley is out with a list of deflation enablers one of the companies is lowers costs, despite the nod, the stock is down more than stock i and it is up 40% since the beginning of july. let's bring in sanjit, the ceo on the heels of this strong jobs report it shows the tightness in the supply chain and particularly where labor is concerned. how has that affected demand for what you offer >> hi, john. that for having me on and we are seeing the tightness and the supply chain and construction and field services and a bunch of these other physical operations industries. as i think we saw in the jobs report this morning, these
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industries are going strong and hiring a lot of people and that's causing tightness in the labor market so that cost is significant. on the other hand, they're investing in technology that's making them more efficient so if you can find yourselves eliminating 10% of your time by moving to apps and it's like hiring 10% more people without having to spend as much and that's the deflationary trend that's enabled by technology. >> part of what you're doing is putting sensors on things like on trucks so that people can understand how stuff is moving, how it's moving and how to be more efficient with it how do you see behavior changing in this environment where gas is so expensive and labor is so hard to come by? >> gas prices are still high i think they've come down a little bit over the last few months and we're still talking about prices that are $5-plus for diesel and it is $1.50 than last year. they're using the sensors and the realtime gps information to
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re-plan their routes and figure out, could we maybe visit customers in a different order can we find a different way to service them and that's leading to efficiency gains, as well our customers have been operating for 100-plus years and they're creative and finding new ways to use this technology to be smarter about their day to day decisions. >> i keep hearing about technology companies about longer cycles and actually getting deals done and the need to be able to show quick roi on technology spend i would think that maybe you'd be in that category of being able to show that roi, but as capital itself gets more expensive, are customers able to spend at that same kind of rate? is it taking longer to close those deals? >> roi has been part of the picture for customer operations and they only invest in technology when it truly makes sense for them and it's a clear win and we've had that trend since the beginning of the company. what we're seeing is these
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customers trying to find creative ways to clear up cash and just to give you a specific example, trailers are very hard to come by right now and that's an asset not a lot of people have right now and we're seeing customers use the gps trackers to see which are used and which are not and it's a way to reinvest it in areas that they need to. >> what about your own supply chain for the hardware you need to serve these customers it's got to be chips to go into these sensors so the software can do its work. are you constrained there and what's the outlook >> so this has been something we've had to get creative on for the last two and a half years on, ever since the pandemic began, our engineers basically redesigned the products so we can figure out which chips are available and we re-wrote the software and our cut ostomers we
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enabled on the platform. a lot of work behind the scenes to continue serving our customers, but i think that's the kind of agility growing companies need to have. >> absolutely. that's the same agility tesla was able to use to get ahead of the automakers sanjit biswars, thanks. >> we'll get dai oetlsn the latest amazon push into home robots next. in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep,
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you're a cio in 2022. so what's on the agenda? threat briefings, it meetings, and lots of coffee. but with fully integrated security solutions all in one place. you're ready. comcast business. powering possibilities. ™ ♪ ♪ welcome back amazon taking another step into consumer robotics announcing a deal to buy roomba maker i robot. steve kobach joins me with the details. >> amazon is buying i robot for $1.7 million in cash it's been going back a full decade when it bought kiva those are the robots that scoot
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around the warehouse moving product so people can pack and ship them. last year releasing a robot called astro that was a $1500 robot that can patrol your home, bring you snacks and send you alerts and it's like alexa on wheels and it was poorly reviewed and it's an invite-only product, but buying i-robot, jon, gives amazon a firmer foothold in the smart home thanks to the speakers and the alexa system that's been built around them and alexa bought another smarthome company, ring, and it could be tough especially if the ftc reviews this deal the ftc chair khan blocks deals like this buying meta buying a virtual reality business a couple of weeks ago. >> what's tough, though, i spoke with jamie from ring and rick
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both of which were purchased by amazon, and the scale and the difficult ney building up enough capital to ramp a new product. so if you constrain the ability of amazon to buy these things maybe some of these things go away. >> i-robot is struggling right now. revenue reported the second-quarter earnings results and it was down 30% so people weren't staying inside and vacuuming their homes anymore and they were out in the real world and amazon saw they can get the company at a discount and they have the capital to provide and super charge any future products they may be working on >> it will be an interesting test of how much this regulation has teeth because i think it's hard to argue amazon's got a monopoly in robot. >> right they do have a big market share in the smart home and consumer robots, just like virtual reality is a market right now and it's hard for regulators to make the argument that they're wiping out competitors because the market share is not really there, jon >> i can't wait to see what they
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do with the flying robots and the drones that are supposed to shoot video of your house and make you feel more secure. >> you can buy one now >> well, we'll see steve, thank you >> thanks, jon and that's going to do it for "the exchange" with the dow still barely in positive territory. major indices off the lows "power lunch" starts right now ♪ ♪ ♪ ♪ thank you very much, jon welcome to "power lunch," everybody, i'm last with the last thought there that people are no longer just staying home and vacuuming, they're actually getting out this summer. welcome to "power lunch. i'm tyler matheson we have a big jobs number, 528,000 jobs added to the economy in july. that was more than double what had been effort mated. the unemployment rate falling now to 3.5% lower even than pre-pandemic and average hourly earnings jumping 1.2


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