Fractional gains across the board with the russell up the strongest as investors try to assess the weekend impact. Its the first trading day of june joe, whats your inter preation of whats going on as it relates today i think the market is responding to what was a better than feared ism manufacturing report again, it goes back to the theme of the last couple of weeks that the economy is opening domestically and globally better than anticipated i think the positive reaction youre seeing in financials today up over 1 that indicative of the perception that the economy is opening up better than expected. There are a confluence of head winds that are greeting the market and you rightly define them at the top of the show. I think the market will price in that con tentious nature the right strategy as i continue to suggest the balance between the growth names that have gotten us here, the Technology Growth oriented v shape recovery stocks and what i would define as quality value shannon, you think china is one of the top threats facing the markets right now. In terms of todays action, were seeing at the top, strength in small caps strength and financials were seeing in todays question that signaling a market a domestic recovery under way. How does china factor into that picture . Its not dissimilar to what we saw in 2018 and 2019. When we start to hear an escalation of tensions between the u. S. And china, people look domestic they are going to be doe messiahmessia domestically oriented. We still have a long way to go from an economic recovery per spif spective, i think joe makes a good point youre not over exposing yourself to what is likely to be escalation intentions with china. Certainly after the changes that they have made as far as speech, free speech in hong kong then youre also benefitting from the fact that we are starting to feel that enthusiasm and optimism ant the roping. I would caution that were looking past or perhaps not giving enough emphasis to the china situation. This is an over hang to the market or portions of the market for about two years. I think once we move past this data around reopening, i do think that will be a renewed focus on china i think the names that consistently were benefitted from that previously which were domestically other yentsed demand names as well as Technology Names the rob, i want to go to help how the protests we have seen across the country are continuing into this week could play into a recovery we heard the corporate response in terms of store closures and retailers like target, Delivery Center closures and amazon, for instance just the notion that tensions would rise most of you are weak and urging a crackdown, stronger response to violence seen in the streets. Potential social escalation, social tensions are something that can definitely be disruptive along with what joe said, along with what shannon said china is a reemerging threat we saw what it did once before twl when there was trade tensions. We have come very far, very fast the magnitude of the downside is much greater than the potential for the upside yet, i still think the potential for the up side is more likely we have this cautiously optimistic view. If i were to look at what would sustain this move or allow us to build a base at higher levels, the number one most important thing is the fed backstop the fed did in two weeks what it took nine months to do in the flow ball financi Global Financial crisis. I think the worries are as we reopen, reinfection rates and what damage that does. Ultimately, fiscal policy. I think early on there was cooperation and what are congressmen did in delivering stimulus package of 3 trillion in a month and a half given the way the legislative process works in the u. S. , thats shocking with they were able to accomplish its going to be a little tougher to get through what we want to get done again, cautionly optimistic. I think once we get to those things and have to address them, if they are positive, i think they will subside. Its not as much as you could potentially see if this breaks the wrong way. Let me get this straight because you outlined a lot of concerns that a lot of investors have at the end of the day youre saying theres more upside in the market the risk reward is to the upside yeah. I would say the risk is to the downside but its more likely youll see some upside one of the factors in play there is you have a tremendous amount of liquidity in the system the fed has really pulled out all the stops. I think they are the main player in this recovery i think theres other aspects that could derail us but they are less likely in my mind i think we built a bridge. The question now is is that bridge long enough i would say that covid is going to have roughly an 11 hit to gdp in the u. S the stimulus is roughly 14 of gdp. My sense is we have built that bridge long enough only time will tell. Thats sort of the thing out of the notes at Goldman Sachs saying fiscal and monetary stimulus, thats going to limit the downside to down about 10 they are scaling back the projected down side risk to 2750 from 2400. How do you sort of that note was published may 29th how do you factor what transp e transpired over the weekend. Target up in minneapolis having to shutter a number of stores the retailers that were so severely impacted by the looting that went on and so forth. Thats not a very big move i dont disagree with mr. Costa. I do think the downside is extremely limited. I thought both the president and china were very measured in how each reacted to what the other was doing. Friday, im sure, melissa, you were anticipating before your 5 00 show that you might see a little more volatility out of such a press conference that was delayed by hours and so forth. Instead, the president was very measured the chinese response like wise has been very measured to robs point, i think were not really seeing the catalysts to drive the market lower and has horrific as the incidents were over the weekend, overall thats not a significant driver, unless, it continues for months and months weekends worth of really horrific news scenes and damage is not the same thing as what the market down. All right the social unrest across america highlighting the systemic issues we face. Lets bring in ron hes out with a new oped peace called rebuilding the American Economy to bring peace and prosperity to all. Always great to speak with you are you there in. I am. Youre saying look to build it to 2050 as opposed to 1950. I think as much turmoil and disruption we have seen from coronavirus and the clear evidence of racial inequality and income inequality, the short Term Economic outlook for quite some time. What were going through right now requires a much Bigger Picture lens and one in which we take stock in where the country is and where its going. In some respects fault this administration for looking at coal i think were having a problem with rons audio here. Well try to reconnect and talk to him hes saying we need huge projects like infrastructure to bring prosperity to all walks of life in america. Well go back to our panel here. Shannon, in terms of how you look out and what might be done in government, do you think that anything would be likely and if we were to go down the path of a big infrastructure package, presumably that would be big positives for the market as well i think it would be a positive for the markets and something well received across party lines too from a political perspective. If theres one thing that surprised me over the last couple of years given the amount of stimulus where it was the tax cuts or recent packages as a response to coronavirus, that infrastructure hasnt been more of a focus if you look at the european union, they are putting forth 750 euro package. That includes a lot of infrastructure upgrades, green transport. That is continuing to move their cause forward. In this case, this is something we have been talking about our failing roads and bridges for years. The amount of jobs that would be produced by such a package its probably unfortunate that partisanship may prevent that from happening over the course of the next couple of months the Senate Republicans have made it clear they are not interested in doing something large scale i think that would be catalyst for additional growth and just improvement of society that may or may not happen. We have ron back. Hes back on the phone with us hopefully this connection with last, ron. Youre just in the midst of describing one economy for 2050 would look like and how they could hap americans elp all ame. We all know whats needed and the way of Shovel Ready Projects are available. Its about 50 billion in capacity per year. Im talking about rethinking the entire economic landscape with respect to all the digital changes that we have seen. That process has to be ramped up and fully supported and embraced by the government with the appropriate guardrails we need to reestablish or alliances that if we hear that china is making end roads to provide financing and other types of support for countries that we would like to do business with in the future, that we need to strengthen those alliances whether its nato or wto. We shouldnt be pulling away we should be moving forward. When it comes to issues like income ainequality and Racial Disparity that was on full display over the weekend, i think its entirely economic and societal policy that needs to be thought about. Youre talk about the income inequality, the opportunity gap fp squawk box had a poignant interview this morning he was talk about how he grew up in the inner city of philadelphia by some stroke of luck, he and a few other black children got bussed 90 minutes away to a Different School system and that put him on a different trajectory these days, that form of bussing doesnt exist in bussing it exists in technology. It exists in Internet Connection that could help close that gap it sounds like youre talking about using all the tools and rethinking to close the gaps we know those kids that had access were able to conduct their School Business from home. They were shut out for the remainder of the school year we need some elements of socialization for kids those kids out of reach of the better school, these types of connections, types of ter telemedicine that should be made available around the country to even out not just the disparities in education and health care and other aspects of our social live s truly important. Setting a vision to make those Services Available here at home and enhance the opportunity sets for every one. Its not just that as much as i thought the spacex launch was fantastic, the government has seeded its role to private enterprise. That could be a good thing but it takes onnous off the government for providing the type of leadership it has and sets the tone for the country when comes to aspirational technologies the moves today even not on the top line were only seeing fraction of percent moves in the major averages it does look like a reopening rally is under way in the names like the airline stock, the cruise lines, the retailers, et cetera in small caps i think thats what the markets are responding to and global liquidsty whether its japan and the your zone friday whether its the known when you look at money growth in the United States its at 20 annual rate when you put up global liquidity against Global Markets they move at exactly lock step very, very tightly i think theres that recovery hopes that we will see something is better than nothing without a reinfection risk going higher than the markets will calm down. We still have to get through some bad numbers but many are suggesting thats going to be the trough the market is looking past 2020, junking it entirely. Even looking past 2021 earnings and beginning to price 2022. Clearly they are looking well beyond not just the short term but the intermediate term as well thats right. From a market that trades on headlines, you can see the markets move tick by tick. Its amazing this long term view has held here. Great to speak with you. Thank you. You can read his oped by going to cnbc. Com. Youre making some moves in this market. What are you doing im in Dicks Sporting Goods because we have seen some unusual activity in that one right at the 30 strike also crowd strike, crowd strike. Almost anything in the cloud im sure you and the 5 00 pnl talk about this all the time anything in the cloud whether its security, software, things delivered like zoom meetings and all of that. All of that is a focus for me right now. I think all of those kinds of things continue to work and those are what i added over the past 24 48 hours lets move onto amazon. The price target being raised at 2800 from 2600. They expect to benefit from ecommerce trends. Joe, john and shannon all own it joe, ill go to you. Amazon is a core holding for me its been a position on any type of dip i want to add to that position scott asked me last week if i would buy it i think it was around 2420 it was a dip that happened in the prior day. Alt so amazon represents the true blessing we have in this country. We have transitioned our economy to a Technology Oriented economy. Think about all the disruption thats given us energy independent. Thats given us the abilities for people to work from home during this pandemic think about utilizing that tool to fight against inequality. Think about the reach that technology can present going out and teaching and distributing, learning how to code thats where the infrastructure bill needs to be placed. Making sure every one in the kun trip has te country has technology its going to create jobs. Think of the Cyber Security jobs well need to create from that back to amazon, i want represents what we are as an economy and its why the rest of the world wants to invest in the United States because we offer that technological solution that no other economy offers. Joe, lets not forget it plays in every business that is the hot Business Today we have adopted it at an accelerated rate i think thats a good point the krn with amazon was the spending on the Distribution System but now in this pandemic it seems so clear why they did it they were ready to go. Every time amazon spends a bunch of money, people get concerned. Then oh bezos, he had this vision on why he was spending this money i think the question here is how much of this bump is sustainable. I think thats been the rallying cry around to joes point, buy amazon here or wait a bit. I do think theres the lifestyle shift is here. People ordering online who hadnt traditionally ordered online especially for things like groceries i think thats a hard sell to people prior to this and they are like this is really just as fishts efficient as me going myself Facebook Ceo Mark Zuckerberg receiving push back for his decision to leave up trumps looting, shooting post john and shannon own facebook. Some employees went to twitter they were complaining and praising jack dorsey on his stance on hiding the tweet that appeared in twitter. Is this a risk is this an internal risk for facebook well, i mean any time youre either for or against the president , i guess its a risk look at how easily facebook has shrugged this off and look at where it has gone since they announ announced they would not be limiting the ads of either political party. Twitter stepped up and said nope, no more political ads. Were kcutting those out. If you look at the divergence of those two stocks, its pretty clear where the money went morally, you guys decide i invest to make money if i had an esg fund or something where i had to be socially responsible, that would be a different story my mandate is to make money. Facebook is going to continue to make money they are expanding their reach and we use it more every day the fact that they have bought gify allows them to get deeper into twitters baliwick, that allows this to go higher as twitter goes lower youre saying that because facebook is not trying to sensor or hide or comment or anything like the characterize what is posted on their platform, as an investor, thats a preferable stance are you a platform or a news agency and so forth in we both know there are different ways that each of those are treated or that are supposed to be treated. If youre saying this is platform, thats what they are operating under. The more you censor, the more it is that you have to be responsible for whats going up on that site all right up next, calls out on snap, lululemon and much more. Well debate all those were back in twmiteti o nus me lets get the headlines with sue. Thank you very much here is whats happening at this hour President Trump is criticizing the nations governors for being quote fools in their response to violent protests trump said most of you are weak. You have to arrest people and put them in jail for ten years and youll never see this stuff again, end quote new yorks governor says violence helps people against progressive change Governor Cuomo is calling for a nationwide ban on police using Excessive Force including out choke olds it is horrendous. I stand with the protesters. Its friegghtening it perverts everything you believer about this country. He also says hes going to talk to new york city mayor who tells reporters today he is considering a curfew in the city following overnight violence you are up to date back to you. See you next hour. Thank you. Several calls on wall street today. Lets get started with abbott labs downgraded to a sell over at Goldman Sachs. Joe ill go to you the analysts say they expect the testing to be much more in line with what some investors had been hoping for. Thats great but thats not why you own it its the most diversified large cap name youre talking about the company that has the diversified reach shannon, your thoughts. We owned this before covid. They talk about electives as well 30 of their sales are elected to related procedures. Look at this longer term things like glucose testing. The sell off that might come on the back of the covid crisis might be a great point for the stock and well continue to hold it lets move onto beauty. Its a strong point for them and for ulta they say the comps have been tracking bovr plan prior to march tenth and after may roping those are very strong data points yeah, i think the prestige beauty has been selling well over the last couple of years. We think the sales will continue estee lauder was hit hard. A lot of their sales are on site for sales and fragrances. They can benefit from that thats a cnbc exclusive lulu is the subject of an analyst call the price target being raised to 311. It does seem the bullish analyst are on this band wagon last week Raymond James raised the price target it was to 335. I got very lucky with this stock. It traded down on march 18th to 128. Trading now at 308 the previous high that was on february 20th was at 266 this stock should not go back below. It does have the very strong tail wind of the brand recognition. Best in breed and thats why im staying long lulu. I will utilize the stop below 266. Lets hit snap getting the price target to a street high. 24 a share over at Deutsche Bank this falls into the divide we have seen in social media stocks including the ones we want to see wade into some sort of debate where they had to cast judgment on the platform and the ones that dont when we saw last week was snap and pinterest do well while some of the other ones that might be under fire have some declines for the last, i think, three of the last five days, we have seen unusual activity, up side calls being caught in snap right now they are buying the 1850s. This was last thursday thats the most recent one clearly, as this stock has march higher, people, analysts as well as big investors have been pushing more money across the table into this one. I dont know at this moment if im in it. I have to check the disclosures. Ive been trading this one rather than owning it. I wish i would have just held this one straight ahead, the big etfs to watch today but a check on the s p 500 sectors. Technology and health care are the laggards today you can always watch or listen to us live or on the go on the cnbc app halftime is back after this. But a slice is just right. Thats why fidelity offers dollarbased trading. Buy what you want based upon how much you want to spend, even if its just a slice of a share. Btry natures bounty sleep3, how much you want to spend, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Could another come aroundot, the corner. Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 of patients on eliquis didnt experience another. 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And you trust him . Totally. Yeah. We went to school together. Ill check him out on investor. Gov. So, whatll it be . Ill just have the burger. Before you invest, get the full report. Check out an investment professionals background for free on investor. Gov. Before you invest, investor. Gov. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. A portion. A chunk. With dollarbased trading you can spend what you want, even on just a slice of a share. Welcome back to the Halftime Report lets check with bob who is watching the etf movers. Bob. Melissa, investors are struggling how the protests might impact the opening plans theres a very big interest in esg. Those funds are out performing again today. Environmental looks at impact on environment. Social looks at relations with employees and the governance look at leadership pay, shareholder rights, inclusiveness. Esg is out performed this year theres a number of big etfs around now two of the largest are out performing today and on the year both of them are down about 4 with the s p down about 6 thats relative out performance. I think the problem a lot of people had with esg is they tend to look a lot like mega cap growth funds microsoft, johnson and johnson, visa, Procter Gamble all of them Big Companies but big megacap funds. They tend to under represent flrj and those are the things that are done well these companies that i just showed you do wade higher. I guess the issue is how do you wait them. How do you include them. That is very difficult sometimes and a little bit difficult to quantify head over to etf edge. Well be talking to mona naqvi they have an index out they will be educating us a bit more about esg melissa, back to you bob, thank you. Jon is following the action on the options market. His latest trades are up next. Halftime is backn son i30ecds shares hitting a new all time high. Jon is following the unusual activity there what are you seeing . For a long time, this was a stock that was really architects and engineers that used it then, James Cameron used it for avatar auto desk because of allow it can make a very, very complicated thing easier has really exploded and its almost 105 off the lows, i think of just a month ago its a spectacular move. They are buying the june 220 calls today. I bought those regular june calls when the stock was right around 209 this morning. Flex is the second trade this one, there are options that expire this coming friday which we both know means youve just got four days for this thing to be right or wrong but they bought them literally right at the money here buying a lot of these calls very quickly and flex right around the ten strike you have a dog dock ive got two dogs they are both bothering me now i picture jon with a dog on each pants leg tugging now thats a different kind of show let o lets move on. U. S. Global jets seeing a surge of inflow. Now holds about 950 million. Lets trade it joe, this is all about the reopening trade. Were seeing reopening sectors across the board do well today we are quickly got out of delta and took the loss. I think thats where the clear uncertainty is regarding what the revenue trajectory will look like Going Forward i think youll see a benefit to boeing you might as well go out and buy boeing at that point and not buy the airlines that would be the strategy rob, you had a balanced view of the market would you be a buyer of airlines i think bookings are down too much i dont think theres any visibility as it rerates to the airlines i wouldnt continue to trace this trade i would focus on the cyclical rotation that were seeing and try to get some cyclical optionalty in your portfolio in a different way. A lot of salespeoppeople go to p but i think theres too much leverage if youre wrong i like mid cap and some of this rotation that were seeing in large cap to some of the more dividend cyclical oriented names. All right up next, the dollar falling to its lowest level since mid march. The trades when halftime returns in two this is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Welcome back welcome to our new daily segment futures outlook. Well be tackling all aspects of the futures market, rates, commodities. Lets get a look at the dollar hitting the lowest level since march. The dollar still positive territory this year but up only around 2 . Shannon your outlook for the dollar is not very positive. I think that were likely to see the dollar weaken. Ive been wrong on this previously thats my caveat here. I think if we look at whats happening from a stimulus perspective on the fiscal side i think theres going to continue to be downward pressure on the dollar if we see a Global Recovery which i think is what most of us are looking forward to whether thats this year or next year. Our positioning is recognizing our belief the dollar will weaken joe, where would you go for safety then . I dont know if you agree with shannon in terms of weakness of the dollar but if the tlar is not going be that safety trade that it has been because of all the other currents facing the dollar in investors there, then where would one go i have an interesting, a little bit of a different view of it. I believe the tlar and the appreciation that we witnessed in the last two years has been on the excellence of the American Economy relative to the rest of the world. I think what youre witnessing right now in terms of very modest pull back around 1. 5 for the quarter is really about the liquidity and the shortage of dollars that was the environment prior to march and the removal of that circumstance the Federal Reserve has flooded the world with dollars to remove that shortage. I think what that really has done is just placed the dollar more in a trading range than anything else. I would caution those viewers not to really be going out and implementing an aggressive strategy believing the dollar is going to rally aggressively or depreciate significantly i think its more in a trading range. Thats probably the right environment given the actions of the Federal Reserve and the continued american excellence as it relates to the economy relative to the rest of the world. All right coming up next, our experts will answer your questions. Plus we have yr oufinal trades thats straight ahead. A slice. A piece. A portion. A chunk. With dollarbased trading you can spend what you want, even on just a slice of a share. A portion. A chunk. With dollarbased trading you can spend what you want, even on just a slice of a share. Tune in to cnbc tonight for a special report, markets in turmoil tonight 7 00 p. M. Eastern time the traders are answering your questions joe, what percentage of bonds do you think should be in tips in a 60 40 portfolio . Joe . Ed, thank you for the question basically the premise of having tips in a portfolio is same as having gold. Afraid of inflation. Deflation is the risk with gold or tips to make yourself sleep comfortably at night somewhere around 3 of the overall portfolio in gold or tips and i like tips better than gold. This is for dr. Jay art in washington asks, should small investors avoid trading on or around options expiration days jon . Mel, i dont think its so much a question that arts asking about whether a small investor should or whether it should be a more knowledgeable investor because thats deep end of the pool. Those final hours of the options trade are really volatile because it could be something or nothing very quickly so id say its more of a question of how much trading they have done as to whether they should do it not a question of how big or little the trading account might be. All right anthony on twitter writes in, is it a good idea to buy schwab ahead of their td acquisition . Shannon . I dont think you need to buy it ahead of the acquisition. I think theres competition here, low rate environment isnt great for schwab the acquisition we believe is creative so its probably a good longterm buy and no rush because that acession is a 2021 story. This is from joe at long island, im a relatively new investor should i reinvest dividends back into the stock or pocket the cash good question, joe. It not me or an income based investor i would say if youre an investbased investor you look for return on capital, for the cash flow. If youre a return investor you look for the compounding effects of reinvesting the dividend so i think it depends on the context. If youre a relatively new investor, long time horizon, reinvest. Moe in canada has this question what are your thoughts on the future of spotify. Joe, why dont you take this one . Future is a good one. Recently made an alltime high i think it will exceed 200. The subscriber growth exceeded expectations so long the stock with the trading around 185 i would hold that position for a play above 200. All right this one is robert in port washington, new york writes in, why is netflix a stock price going down they have the most subscribers and releasing new content. Shannon, you have this one. Thank you for the question. I think netflix is really in this basket of stayathome stocks i trimmed the position back on april 30th i purchased it right around the 310 mark and felt like it was a bit ahead of itself. The competitive environment is significant for netflix as they expand internationally and theyre looking at the jugg juggernaut that will be disney plus and probably will continue to see a bit of a rotation out of stock as people move into the cyclicals we talked about today. Jon, what about netflix seems like will we do final trades i got the animation. I guess im going to take my queue from you know what, jon . Ill ask you about netflix. I like it overall i like netflix, mel. It is only pulling back because the run is so spectacular. All right lets roll the animation again now we will do final trades. Joe, what do you say so lesson learned, i got cute with zoom video. Now its 200. I wont make that same mistake with docusign. I have had it quite sometime and going to expect it to push towards 200 eventually. Rob ill stick with what i said last time. Iwr. I believe in the cyclical acceleration and recovery trade and more money to be made from that. Shannon chubb, insurance is a great way to play financials. And doc amyris. Its breaking out. See you tonight at 5 00 the exchange with kelly evans starts now. Thanks, melissa. See you soon hi, everybody. Today it is crisis in america with protests rocking the nation from coast to coast just as cities were starting to reopen we look at the Economic Impact and corporate americas response as ceos line up to call for change markets try iing to climb the wall of worry. Where investors should focus attention. Eli lilly starts to test a groundbreaking Covid Treatment and america marks a historic day in space dom chu hath