Transcripts For CNBC Closing Bell 20240712

2. 8 million added well explore if that means a v shaped recovery is coming. 2. 7 on the s p 500. Coming up, retail making a big move higher today as reopening trend ramps up across america. Well with marc metrick about what hes seeing from customers so far and later, are leaders doing enough to address equality daymond john will join us with his list of actions. Lets get straight to the key question of the day. Have we bottom ed were ploex ploering in a number of ways. Steve liesman has e details on the number mike looking at the rapid pace of the rally scott will give us his Market Outlook and well focus in on the soaring Airline Stocks with Raymond James analyst. Steve, start us off on the jobs report and how sustainable it is great question, sara, but a lot o head scratching going on how u were 2. 5 jobs created and no one knew it wall street didnt seem to know it but look, i put together a list here of maybe some reasons how do you get 2. 5 million delta there, 11 million jobs 8. 3 million decline. First of all, to get there, mass firings have to have stopped which we kind of knew. The second thing, you have to have additional rehiring from reopenings taking place and the ppp program. Third, there was no second wave of layoffs than there was just the health shutdowns. Finally, maybe the first wave was overdone some were release d and brought back quietly because no one really knew what was happening 2. 5 to the upside against the forecast average Hourly Earnings declined that showed that low wage workers came back into the workforce. Labor Participation Rate inching up to 60. 8 . Lets play alphabet economics. Did we have a v . Heres your v, folks if you look at the change in the month to month payroll, yeah, we were down 20 million, up 2. 5 that locks like a v to me. Theres another way ha looks more i dont know, call it lish. We went down by about 20 million jobs and came back by 2. 5 million. So bottom line on that is theres a long way to return we got back 11 of the jobs we lost the forecast that im reading now say june is going to be another month and maybe a str g stronger month in june great stuff thanks for that. Better than expected the bulls have grabbed on to that number today, push iing th recovery rally even higher mike has more on todays Market Action that number really emboldened stock buyers to push further in the direction they were leaning. The market was already positioning for a faster, stronger reopening and paps more of a cyclical tone to the market than was the case a few months past this is the s p over the past year you can see this hlittle acceleration one lesson here is really barely had a pullback just stalled out hasnt really adhered to a lot of these areas on the chart where folks thought it would break. 3130 i talked about. Just blew right above that today. Also, this is basically flat for the year 32 20ish the market has almost spent no time in its history above the level its trading at this moment we were just talking about december, january, february of this year. So clearly a ton of ground has been made. Look at stocks versus bonds. Another part is an unwind of this crowded, bullish bond position this is the tlt. Longterm treasury etf against the s p 500. This goes back two years and you see how they were pretty well linked up here until february. Then of course massive bond rally. Huge stock sell off. Reconverging here, not joining bonds are still outperforming. This other disconnect when stocks sold off then rejoined bonds. So it doesnt have to be the case that bonds keep going higher, but at some point, maybe some e quul librium is reached theyre about at the same level but look where they came from. The transports in orange traded above 11,000 in 2018 dead money for a long time huge bounce then this comeback here is most significant from the recent lows. So clearly, theyre not really linked as asset classes, but its kind of sink ra niehaus and its appropriate the cyclical transports sort of take the stage and eclipse the move in the nasdaq composite if we look at the stocks and is sectors performing best today and in the rotation of the last couple of weeks, there was some justification for that in the jobs number if you dig down sbo seeing which sectors did the most hiring relative to expectation. Sure. Theres no doubt that the more activity on the consumer front if youre looking at mobility, consumers getting out more does it justify the magnitude of the rally in airlines . Perhaps not. That hooks like a hot money chase but none is less, its pretty match up in tune. The bond move is in tune the global move, its all in dpeer. All points in the similar direction of recovery. The question is you know, is the market going to overshoot a little bit in the shortterm on this theme where we have evidence that its actually happening. Its a good one thank you. Lets ask that question and talk more about this massive rally with wells fargo Senior Market strategist, scott. Thanks for swrojoining us this jobs report today confirmed the market was right to be optimistic about the reopening but is the market overshooting now on the good news well, right, i think the market is right to be optimistic but it is probably a bit of an overshoot here now these reopenings, depending on what segments of the economy you look at, theyve been going okay some have been going better than others ch but certainly, any news that deals with Consumer Spending, which clearly employment does, the market is going to like. We need Consumer Spending in order r for that we need confidence in order for that, we need people out to work if were all sitting home hike mo like most us here are in september, october, the market isnt going to be where it is now, its going to be lower but b obviously, theres anticipation built in here and were looking for a good quarter and a modest 20, 21. It might be a little ahead of it right here to that point, i believe im right in saying scott, wells fargo, your year end estimate is 3,000 so were a couple hundred thousand points above that what would you need to see in the fundamentals to revise that full year estimate higher . The data weve seen lately, you could generalize and say are these going better than what we thought . They are is the Employment Data a little bit better than what we thought . It is. So those are the kinds of things that i think are driving it. Were looking for a little bit over 7 springback or bounceback in the Third Quarter that might be ali l low. So were looking for a contraction is things are looking shortterm here. There will be a little pull back but as 3130, that was a big level. Weve blown through a number of technical points weve heard good news, but se certainly after 40 plus percent run, you could expect a give back here and sideways trading and it is good news, no question about it. A lot better than expected but weve still got 21 million americans unemployed and an Unemployment Rate we havent seen since 1940 so how do you position in this kind of an economic environment where small improvement is being awarded in the markets, but it sounds like youre not convinced given the long road ahead. It was funny because when i was sitting here at 7 30 central time and the number came out and youre thinking is this going to be much worse than expected or better right now, face it, theres a lot of guessing going on on some of these numbers and when that number came in, i was just wow, what, this is, this is a pretty unbelievable numberment relative to the consensus which you could probably throw that out the window on most numbers these days, but for us, weve liked Technology Consumer discretionary sector. Communication services weve liked financials and that position sometimes weve looked very smart and other times we havent. And that positions working a little better now. We also Like Health Care so you know ffor us, we want tos recovery the market seems to think its coming along faster than what we initially expected, but i think those are right sectors to be in as we look out over the next 12 months not whats working today. Energy, financials and industrials are on top thank you for swroining us today is that thank you. Have a good weekend. Now its been a record breaking week for Airline Stocks with the New York Stock Exchange Airline Index on track for its best ever on hopes that sum e travel will pick up as economies begin to reopen. Its up what 36 theres American Airlines up 10 today. 75 since the first of june this week now airlines as we said have rallied. And were joined by Raymond James analyst to discuss whether we can go higher thanks so much for joining us. What is this late e leg higher of the rally been off the back of is it certainty these airlines will survive or is it genuine hope that all things will be back to normal within a couple of months . Thanks. I think its a combination if you look at other sectors even with the massive move this week, the stocks are down 37 . And so it is a kind of a recognition that maybe bankruptcies are off table and also that things are recovering faster what we find unusual though is there seems to be a simplistic trade thats happening here where youre just buy iing the kind of the stocks that are off the most versus trying to sift through the the fact that the Balance Sheets are very today than they were at the end of 19 and if you look at enterprise values, the picture is different. Like american, interpraise prize value, its flat year over year unlike the stock and thats in sharp contrast to southwest where its down 27 so there are some shares like american that seems to be trading like we are having a v shaped recovery while there are others that are still showing a little bit o a lag here so its an interesting move and just you know some excitement here that the recovery is coming faster but is what youre saying that it doesnt match up with the fundamentals an its swrus getting swept up in the reopening and the fiscal and monetary stimulus wave waover ti market exactly it doesnt seem to be a lot of talk where the bets are being placed if you see the data points from what weve seen so far, lee sure is where the demand is coming back its the domestic market but if you look at the stocks, its really any stock thats sold off the most and irecovered a lot p doesnt have as much exposure to the domestic market as southwest and southwest is still on an enterprise value than american. So its an opportunity than we would be rotating out of those stocks like american that have you know, recovered fairy well into kind of more domestic stocks like southwest that havent seen that recovery as much where do you stand in terms of the longterm impact of things like work from home on Business Class travel, those sub sectors of the industry that are so profitable for the Major Airlines i think initially, the demand impact would be driven by peoples comfort flying in a world of covid19. As we get therapeutics and vaccines, i think that fear goes away the other more important aspect will be just the health of the economy and that will drive business over the longer term, if you have work from home, nobody was flying to the office so i dont think that really impacts demand for travel and i think what has been shown as much as you know zoom or Microsoft Teams have been helpful, its just not a good replacement for in person meetings i think the trends we had going into this crisis will return once the economy rohrer rohrers and once we get comfort bable flying in a post covid world gl thanks so much for joining us all right after the break, is the worst over for retail . As the sector rallies today. Well speak with the president of sax fifth avenue to discuss the trends hes seeing at the stores that have reopened. Youre watching closing bell on cnbc stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. 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. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness. While taking eliquis, you may bruise more easily. And it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planed medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. 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 42 minutes left. S p up 2. 5 . The Energy Sector within the s p is up 6. 6 occidental and apache at the top of the list. Both up more than 20 . P. Retail is getting a big lift. Sax fifth avenue is one that started reopening just a few weeks ago. As of this week, they have 20 open stores, 21 closed with eight temporarily closed when some demonstrations this week turned destructive lets bring if marc. Thanks for joining us again. Nice to have you tell us about what youre seeing in terms of Customer Behavior in the stores that have opened and whether youve seen a step back as a result of the protest this is week. Zbh good afternoon thanks for having me look, lets just start with a month ago when i was here and we chatted about us, we were opening in texas and we were really excited what weve seen so far is that the consumer is resilient. They came back in force so really like it pretty optimistic b about what were seeing and how theyre reacting and we feel good about it so its been good. Marc, in terms of the level of demand youve seen when you have reopened stores, has it surprised you and specifically, what type of products are are people focusing on its been surprising. I think we didnt know you look at the jobs report that came out this morning. Everyones in a little bit of a guessing game now, but we certainly have bloomed through what our forecast and eck pe expectations were. We have a saying at sax. Men are the new women. Men are back men now are representing about 25 of the svolume in the stores open versus 15 or so normally so thats big. Were also seeing omens footwear, handbags, these are the businesses that are going and were going before. So its been a little new and some of the same, but super exciting i dont quite get that. The men are the new women thing. I dont know whats driving that, marc hey, i dont know i joke with my wife that they probably just want to get out of the house, but i dont think so. Men are finding themselves theyre realizing they only have two wardrobes. Now theyre hope and are in between so i think its great. Mens footwear is up up 25 last month. Thats a business right now positive this this environment its just crazy. What about new york obviously you havent been allowed to open the flag ship store. How much is that hurting now and are your plans deterred by the protests that have often turned violent as weve seen looting across new york city given whats goin on were taking new york day by day and have been generating business with our stylists out of the new york because theyre working virtually. I never feel we closed our flag ship were going to be ready to go curb side next week and we are as long as we get the go ahead, we are undeterred. Theres been changing ways the consumers spend during lockdown and accelerated a structural shift that weve seen over the last five years do you think the add shift to online will stick after we fully reopen again are you worried about that not at all. I think where sax as a luxury player is going to win is really the combination f our physical and digital presence thats where weve been investing the last several years and maybe whats happening now is merely an acceleration of a strategy and what the future was going to look like any way so we are ready and excited. What does the future look like for Department Stores during this crisis, weve seen you know one of your big competitors, niemann marcus, file for bankruptcy. J. C. Penny, maybe not a direct competitor i think first, painting the Department Store industry with a broad brush dangerous. A lot of us were investing, getting ready, thinking about digital, stores, fusing together the high traffic digital platforms and the high converting store platforms and we were writing ourselves for the future so i dont think theres going to be problems for a sax fifth avenue that went into this strong, with a strong Balance Sheet, prepared to invest and prepared to run coming out of it can you make as much money in this environment where we are social distancing, where were taking all sorts of safety precautions, in the stores, out of the stores. You know it, are you able to get back to the activity you saw precrisis . I think especially for a store like sax where were not, its not a density play. Not a high traffic play. We are a conversion play we you know the way we clientele, the way we go through the transaction with our customers, you can socially distance in our stobefore this youll be able to after. Really wiquickly. The employees you furloughed, are they going to come back as youve seen customer activity return sure. You think about most of our stores, associate base thats furloughed, were out of the stores and as were opening, were rolling through. I think we furloughed 6,000 of our society yassociates and broa third back keep us posted. Thank you very much for joining us thanks so much. 35 minutes left before the closing bell take a look at the markets strong gains across the board. The dows up more than 3 . 817 points s p 500 up 2. 6 its being led by energy but every sector is higher in a broad rally. Up next, chip stocks are rallying hard with the market today building on gains for the year and two wall street firms are picking winners in the space. The names to watch are up next and take a look at the huge rally in cruise stocks as well today. Its part of the reopening theme along with airlines. These stocks have been hit so cris during the pandemic and and now theyre charging back today with Royal Caribbean leading the pack up 20 well be right back. vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Bringing the weeks gains to 5 lets check in on individual Market Movers now. Chip stocks, the semietf hitting a new all time high earlier led by the likes of micron, broadcom and mxp. Piper sandler naming Broad Campaign its top pick saying its well positioned for the next two years wheen qualcomm a buy rating and 105 price target for high hopes for 5g and shares of grubhub jumping higher now fielding interest from two European Food delivery companies. Sourcing telling alex sherman takeaway. Com and german delivery hero both experrezexpressing int ubers got competition thanks. S p is up 2. 8 31 minutes left of the session still ahead, how Corporate Leaders can push for meaningful change well ask daymond james if companies are doing enough as they join the discussion around racial equality in america heres a check on bonds. Another major move higher in yields, particularly the long end. Tenyear is up 0. 9 . Helping the banks all u week financials up u 4 hey lily from at t here. Im back and while most stores are open, im working from home and here to help. Heres a tip get halfoff the amazing iphone 11 on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Welcome back dows up 850 points. S p 500 is also surging and theres a picture. All sectors higher energy, financials and industrials are up the most. Consumer staples up the least but still up 1. 7 . As far as the growth versus value debate, its the value sectors that are winning today and for the week with all three of those Top Performing industries now energy, financials and industrials all up week to date. Energy stocks up 15 still down about 26 year. Here are three things driving the action hire. Historic jobs number shocking wall street and boosting hopes of a v shaped recovery those gains can be seen across the board and though the nasdaq is lacking, it did bach the first of the arches to notch a record high. Dr. Fauci telling cnbc that a sec wave of infections is not inevitable if the right precautions are put in place another encouraging development. Time for a cnbc new s update President Trump is allowing commercial fishing and marine conversation areas off the new england coast call iing the ban put in place by president obama deeply unfair to lobstermen. And the pentagon is reportically ordered the remaining active duty troops sent to the washington, d. C. , area to return the base has also called for federal Law Enforcement officials to leave the city in the next few days, the Supreme Court is expected to reveal if it will look again at its 1982 ruling creating qualified immunity for Police Officers i says police cant be specifically sued for any misconduct that hasnt been declared illegal critics say it lets police act with impunity. And in mobile, alabama, a statue has been e moved. The mayor says it was a potential distraction to focusing on the citys future. Sara back over to you frank, thank you very much. Were less than a half an hour before the closing bell. Were seeing a stropg rastrong rally on wall street and thats bringing the gains to about 5 840 points higher now on the dow. Intraday, we saw a record high for the nasdaq up next, how did todays massive jobs number factor into the case for more stimulus . Well debate with two former white house economists and as we head to break, look at the huge rally for the bank stocks today. Bringing their gains for the week to double digits up more than 10 for the financials well be right back. [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Welcome back 24 minutes left of trading heres a look at todays Top Performing consumer stocks and some double digits koelz up 11. 4 theyve been hammered throughout the course of the pandemic, have been slow to catch up but are roaring back today on the reopening trade off that bet e jobs report. Sorry, we lost connection momentarily there, but back and connected. D dows up b about 3 . Mike pence talked to jim cramer earlier today. I want to assure you that if theres another phase of reco r recovery efforts, were going to make sure we have more pro growth policies in addition to direct relief for families and businesses as we put this coronavirus more and more in the past every day does todays job number change the calculus when it comes to more stimulus joining us to discuss are president of the American Action forum whos also former chief economist of the council of economic advisers under george w. Bush and Gene Sperling over both president obama and president clinton. The author of the new book, economic dignity very good afternoon to you both doug, just how good were these numbers this morning well they were good news. And i think the question is how good and how much news to me, the news is there wasnt a second round of knock on layoffs or firings that produced a negative number in may thats the news thats good news the e remainder, the people going back to work, we knew there were a lot of temporarily Unemployed People who would be brought back we just expected it to happen in june so this is more of a timing phenomenon than really a change in the outlook in my view. What will it do to the calls for another round of fiscal stimulus to the extension of the relief packages that are put in place and including state and local government assistance . This is really just a shift between may and june i dont think it should change your calculus deeply on what it should look like in september or october, which is really what the next legislation is b about and there will be things that have to get done we have to find a way to get people into workplaces safely. Thats going to involve more pressure on the business side to get the liablely reforms on the workers side to get ppe and workplace modifications. Its a lot of work that needs to get done and congress can help with that. The states and localities remain an issue and i think the real issue is how much do they borrow from the fed and how much does congress end up helping them out because of theyve had the undo expenses of the pandemic so theres going to be a lot of negotiations going on constantly i dont think todays report changes deeply the negotiations ch i just think it strengthens the hands a bit r for those less aggressive the tok market stock Market Recovery v shaped. Does that give you hope the economy will follow suit unfortunately, i agree with a lot of dougs analysis youve had a dramatic fall you knew that numbers would get better from the trough at some point. This was a few weeks earlier theres just enormous pain still in this market people like my former colleague, jason, and even to be less if you look at the numbers theyre probably closer to 1, 17 unemployment youve still got 6 million more people working part time involuntary ily. This is an unprecedentedly pain labor market now and i think theres a strong and unfortunate chance that we could stay at double digit unemployment for quite a long time. So i think that if you want to have a true recovery, then youre going to have to stay with some of these efforts to help state and local so theyre not adding to job loss with t p teacher layoffs et cetera. Youre still going to need enhanced unemployment that should be extended until Unemployment Rates are well below 10 . I think these things are are going to be absolutely essential and yes, this was a surprising number today but you have to look at the level. The level is still the most pained labor market weve seen in 70 years and we should treat it that way economically, fiscally, but also you know from just a human capacity. When it comes to Congress Moving fast on stimulus like we saw with the last relief effort, it takes a major melt down and scary numbers on the economy so the more improvement we see and the fact that stocks are about to go flat on the year, i just wonder if you think that just hurts the urgency factor for more fiscal stimulus which we still need. I didnt come on to promote my book, but part of it is your end goal and Economic Policy is about the happiness and well being and dignity of American People i can tell you when i was in the white house at the Great Recession when it was still 8 or 9 unemployment, you could feel the terrific amount of pain. So many people are going to lose their health care. So many people are are scared. This kind of unemployment is well over 20 . Its still the highest in 70 years. So its posimportant to keep yor eye on the ball both to be the kind of people we want to look out for each other but also fiscally, it would be a mistake for a member of congress to stand up and say well, the tok markets doing well so im not going to look at the degree o unemployment, the degree of people losing health care, the Small Businesses and jobs that may be lost forever. Theres an extraordinary amount of pain b and the best way to reduce that and get economy is to make people hole whole, give Small Businesses more chance to stay alive and dont add to the pain by starving state and local governments. They didnt do anything wrong. They just happened to be states and local governments during a once and a 200year pandemic well have you back on to talk about how that should look but for now, thank you both very much you guys werent supposed to agree on so many things. After the break, were going to take you through the most important stocks and sectors to watch in the final minutes of trading on this big rally day on wall street. You can always watch or listen live on the app, closing bell will be right back dow up 3 . Past the 27,000 level but just off session highs. Well be right back. When you say what youre in the mood for, the xfinity voice remote will find exactly that. Happy stuff. The groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Circle of trust, greg. Relax, the needles are jumping. You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say to find more of what you love with the xinity voice remote. I opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. I just discovered sofi, and im an investor with a diversified portfolio. Who am i . i refinanced my Student Loans with sofi because of their low Interest Rates. Thanks sofi for helping us get our money right. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start trading Commission Free today. Commercial free action of the close. Weve got capital usas keith bliss with us as well. Leets kick it off with the rally after a surprising jobs report this morning, the u. S. Economy added 2. 5 million jobs in may. The largest one month increase ever economists were expegting a decline of almost 8. 3 million jobs unemployment is at 13. 3 still shocking absolute numbers of unemployment of course. Mike, up 2. 4 on the s p a little off the highs but a positive day strong week, up 4. 6 and all sort of risk on factors have been flashing all week came down to bond yields rising, value caps outperforming big caps thats been very much in harmony talking about the same theme of a soon rer than expected rush to reopen i do think the number makes the outright negative case on the economy and the reopening tougher to make. But this market effect has been in train for a while now so in order, the market has rushed ahead and gotten to this place so the question is whether weve maybe gotten a little bit past where reality is or not and if this is kind of a squeeze and people being forced for a reopening when theyre reluctant to do so its all very positive but, theres been this little ebb in the enthusiasm midday. So maybe just market field position means it makes sense not to press bets here into the weekend. Keith, strong rally, strong week youve been pretty positive on this market and have backed the reopening trend. Where does it leave us now after weve climbed so far, so fast after the march lows theres a couple of things. Number one is across all the major indexes while its rallied hard, especially this week and today of course, we still dont see them as grossly overbought at this point in time so weve got room to move and also kind of underscoring what michael was getting to and ill get to the market internals later on. Strong breadth has been building across u. S. Equities for the last couple of weeks and we got one of our strongest indicators. It doesnt matter what people think about the market, doesnt matter about the fundamentals, valuations, the market will continue to rally 2 to 4 . Caught that last thursday o weve been riding that for right now youre right when we were in the doldrums at the end of march, i called the market vastly oversold lots of things are steering anytime the right direction. Bond yields are rallying up. Oil prices are going up. The employment and jobs numbers we got today no matter how many revisions we may see just because of the way the bureau of labor status ic ss to calculate now, i still believe this market is et up to move higher and may do so throughout the summer. Dollar has moved down, too, which has been helpful restaurant stocks have been helpful after restaurants, bars and other food Service Employment accounted for r about half the gains we saw in jobs in may following steep declines in the previous two months of course mike, how do the restaurant stocks look now . Theyve been rebounding but from very, very cheap levels theres this etf i keep pointing to, pej, has a lot of restaurants and hotels in this and essentially, its up more than 10 this week but still down you know 25 from the high. So its a very, very familiar story. Theres a big section to this economy where the stock market essential ly discarded them and said were going to essentially assume youre on hold and frozen indefinitely and maybe some of you arent going to make it and any incremental move in this direction. Arguably, the easy stuff has been done. We knew there would be a v in the data where it went from negative to positive we just dont know how high the right leg goes and how soon it gets this. Thats probably the debate for you. At the moment, its not as if the Restaurant Industry has much margin for error, even in the best of times. If were back at 85 of capacity, its not going to cut it for a lot of these businesses boeing and Airline Stocks are major drivers of the rally today and this week as a whole hey, phil. Wow, wilf, what a day for boeing and the airlines. When you look at these stock, they were off to the races from the get go in terms of boeing, its now above 200 share first time been at that level since march. The shares up 43 in the last week and its not just boeing. Its also airbus and on a day when airbus reports zero, zero new orders for the month of may, well, the adrs moved higher. Usually does generally in tandem with boeing. As for the Airline Stocks, american, delta and united, they soared on hopes that passenger levels as they continue to move higher, business will get better and this carried over to the rest of the Airline Stocks as well theyre all having a similar day. Keep in mind however, passenger level guy, still down. 85 to 86 compared to the same time last year and phil, theyll be making lot of layoffs still in september. Yeah. Thats the expectation at this point. Unless we see a huge snap back in terms of travel demand. Were just not seeing that yet t going to keep increasing but not to the levels we were last year thanks for that keith, i saw you reply to a tweet i put up earlier i mentioned that to phil because clearly, these airlines would not have enjoyed a 100 plus rally from their lows without a boit and support for credit markets. All of the sectors, Companies Really benefitted the most from those sorts of supports from the government and central bank. Yeah, thats accurate, wilf, and i did like your tweet and when i responded, b b i said know you know why mnuchin wanted warrants as part of that a deal for the bailout when you see the rally and these stock prices here the fact is youre right if we didnt have the bailouts an zero Interest Rates, not only here but around the globe like youre saying a lot of these carriers would have been in bankruptcy protection at this point in time. They would have burned through their cash while they did build strong Balance Sheets. They would have burned through those and would have been in bankruptcy protection. So now we have to see how quickly they come back from the reopening of not only the states that have just about fully reopened but u bear in mind, weve got Large Population centers on the east and west coast that have not fully opened, for example in new jersey, where i live, we wont be reopened until probably the first weekend in july and will that spur the demand from people like myself and my friends around the state that will help unemployment travel. Dont know the answer yet, b but certainly the trend is the right one. Yeah, President Trump calling out Warren Buffett today in his News Conference for selling the Airline Stocks apple hitting a high today josh with the details. That stock is on a role its surged more than 50 from late march i caught one gene munser he says for one, apple clearly benefits from a rock solid Balance Sheet with a net cash position of 83 billion. Cash is king he says during uncertain times. Says the work from home trend benefitting apple as wechlt wearables and the 5g iphone thi year thank you mike, how do you look at apple is that a reoping play because it also did well and came out with the good quarter in the middle of covid19 as china started to open up and it said online orders were going okay. From the china exposure, it was a bit of a reopening play but cant suffer u much in the depths when things were getting shut down. Its because of the quality Balance Sheet. Then theres the standard its high margins, pivot to services so you can make the case any which way when it comes to apple. People keep talk iing about the rotation there really hasnt been one out of the big cap stocks. Just been the smaller value stocks have also perform well alongside them so if theres a true pronounce d rotation, am l is probably something that we get harvested in that process but so far, were not seeing it. To that point, apple is up 12. 5 and up today and this week does that give you hope that all sectors can continue rising as one as opposed to a rotation absolutely. I dont think theres money just moving from one sector to the other nd of the equities market. I think were seeing it move into the equity market so michaels point is that the megacap tech names havent really dpoen down. Theyre not getting you know disinvestment happening as we go along here the nasdaq setting an all time high intraday. We just have money moving out of ore asset classes. Ive long been a fan of apples business and cash, cash and more cash strong Balance Sheet wins the game today still a buyer at these levels never sell apple no you just heard the swoosh that was two minutes to go in the trading day. Mike, what are you see ng the market internals thats what a swoosh sounds like very strong. Internals are definitely solid to the upside. Not quite 90 as we had seen earlier. Take a look at high yield this week as vastly outperformed treasuries that means credit spreads are coming in. Very supportive. Thats a dynamic that they want to see continue and the volatility index its grudgingly going lower. Often on a friday, theres give to it then this big rally has it down below 25. I still wouldnt say its decisive still 24 from the highs from the sell off last august but its moving in the direction stock bulls would like to see for now. One minute left dows up 3 . Nasdaq up about 2 dows up 800 points. The high just above 1,000 but a resoundingly positive session. Energy, financials, industrials, the best performing sectors today and this week for the week as a whole, those three all up more than 10 compared to the s p 500s near ly 5 gain for te week as a whole. At the bell, higher on the dow by 486 points or 3. 2 . 2. 7 on the s p 500 and 2 on the nasdaq what a week the welcome back, everyone to chosing bell take a look at how we finish eda strong week. It closed up 3. 1 making it the best day for the dow since may 18th for the week, the s p gained about 5 very strong. Best Weekly Performance since april 9th when it gained 12 as we continue this rebound from the lows up 45 since those march lows p check out the nasdaq, it did lag the other major averages as weve seen this rotation into financials and industrials and energy which played out today but then tech joined the party, too. Nasdaq up 2 earlier it hit a high. Nasdaq 100 did as well the russell 2000 index charging forward. It was big winner on the day as the small caps play a lot of catch up as they had been the underperformers all were year weve got a lot to talk about were also going to ask daymond john about the economy and whether Corporate Leaders are doing enough to address Racial Injustice in this country. Joining us to talk about the market today though, keith bliss is still with us first to you, another week of gains, a week where we saw the economically sensitive stocks like the banks really take charge where does this leave snus. In a place where the markets are sending a message that is comforting in the sense of handicap ping an economic upturn, its been broad and confirmed by the bond market by the forexmarkets. Were at a point where you have to ask all the indicators to tell you this is a really strong robust rally in control of the bulls. Im looking at a lot of readings that say were getting overheated looked like a desperate grab and chase for exposure today but that doesnt mean the rallys over it means watch and wait. Be careful you saw a subtle rethink of how far weve come but i dont think that invalidates the underlying message of what the markets have been saying. The nasdaq 100 hit a record high nasdaq composite not quite at that level does stimulus alone justify those levelins or do we need to see e a fully v shaped recovery . It seems to me it does justify if youre talking about monetary stimulus, increase in the the fed Balance Sheet from 4 trillion to 7 trillion its hard to be short. When you talk about the fiscal stimulus, i would argue its more, i dont want to be overly semantic about it, but its more income replacement than stimulus thus far so i think you know, i think people are appropriately starting to discount a reopening and better Economic News but im still, i dont, ive never been accused of being b r bearish, but i think weve done real damage with the shutdown that will take a long time to repair the market may be yus looking through the next year or near and a half, which it seems to be doing but idea were going to be back where we were in february, i think obviously history would tell you its going to take a long time to get that there. Jason, i was really eager to hear from you because ifls wondering if you were going to capitulate at all off the back of numbers like we got today on jobs because i know youve been cautious on this market. The longer term damage sounds like youre not going there yet. There are two Different Things the markets and economy, obviously over longer term, they have a strong relationship with one another but i also think that there are times at which they diverge and especially diverge when you have the Federal Reserve board and you have the federal government kind of putting their thumbs on the scale. Now frankly, p you didnt shut the economy down, you wouldnt have had to do that. I have the feeling the market would be at all time highs now any way, but i think that its just hard to take big victory laps when the rate still 13. 5 and it will start to come down no two ways about it, but theres also a sense o airlines havent laid anyone off. Theres likely to be a second wave of unemployment it seems to me of probably higher paid workers. People on supervisory roles. So i want to be clear. I wouldnt short the market here i just would be careful on cyclicals at these levels because i think t going to take time say three months from now, we have a feeling growth will be scarce and at that point, you want to own tech, things that are growthier. Its been a crazy week on wall street. Lets get to bob for asummary of all the key pause in the action sxwl and still, wilf, the stunning jobs report really caps a near perfect week for the overall market bulls here. So to reopening story was evident in looking at two big sectors. Small caps and transports outperformed the s p 10 growth on the transports for a week 8 on the small caps theyre in the middle and theres the s p, about a 4 gain there on the green line on the bottom the reopening story was evident all week the stock of the week has to be boeing which represents the transports boeing, 43 for the week huge gains in Simon Property group. It was up 54 . The reits rebounded. We had apache jumpi ining huge r the week some big regional banks were up. Big cap industrial names like caterpillar were notably on the whereupon side in the mid teens heres some laggards defensive names. As well as names associated with work from home kroger and clorox. Act vision and blizzard. The gold stocks. Whats missing from this picture is better earnings here. Prices are up, but earnings estimates are still coming down and thats a real problem we herement weve got to see guidance come back and weve got to see analysts moving up their ts back to you. Bob, thanks for that. Mike, clearly, todays jobs number capped off a great week for the u. S. Markets though s p 500 up about 5 the european markets up about 10 , certainly germany, france, italy, spain, all up more than 10 and i guess the positivity this week was sort of satarted i europe and capped off here with that jobs number for sure. Even from the last month and the lows in march, the markets have outperformed and the same type of story where theres a Spring Loaded level is certainly in place this then you have the stimulus because one of the reasons for u. S. Outperformance before is that the incremental Central Bank Response by the fed was so vastly greater than what the ecbc was willing to do and what was likely on the fiscal side but thats been balanced out in the last week or so keith, i feel like theres a bit of a tug of war going on between the stay at home stocks that have done so well like zoom video is the poster child for that, but clorox as bob showed you which lagged today and some of the others. Amazon certainly in that basket then the airlines an cruise ships and retailers. Today was an example where all of them did well but the reopening stocks did better. Coke and pepsi are ones that i like to watch because coke does better on the reopening trade. It has more restaurant exposure. Pepsi did better all year long because it was more of a stay at home stock which group do you favor now in. Excellent question and very hard to answer quite candidly i think now given trend we see in the market and what we now determine from the jobs picture, i would go for the reopening stocks right now we got this massive inkroes but havent even starting to reopen the major Population Centers on both coast when new york and new jersey start to get open this month and into july, i think youre going to see the reopening rebound we see in the market and that includes the stocks like coke, which benefits from restaurants and theme parks and the airlines listen, myself and everybody else is itching to get on a plane and go on a vacation somewhere. Weve been couped up for 80 days in new jersey and we want to get out. I think those stocks will continue to rally and as long as the market trend is bullish and continue that way and by the way, underscoring something jason said earlier we still got a long way to go. Not out of the woods yet still didnt know the economic carnage were still sorting through the ashes on but right now, the trend is our friend on this trade the reopening stocks i think will start to youtperform especially since the work at home stocks get so out this month. I want to ask you where you stand on gold. Sold off today, but were also starting to talk about the possibility of inflation starting to talk about bond yields rise. Prices fall. Does gold not therefore offer an attractive hedge to equities even if it fell today . My own opinion, i like gold personally and i view it, i always have, viewed it as an snrns po insurance policy like all insurance policies, you hope you dont have to use it. I think it makes sense because you know lets face it, the deficit this year at the start of the year was thought to be 750 billion. Probably going to be 3. 8 trillion i think people, one of the reasons why gold is off the currencies is that people dont trust politicians to take the stimulus back when its no longer needed. And that i would say history would say its an important level of skepticism and so i like gold. Its going underperform. I think for the next couple of months, it will understood perform other assets but i think for a longer term investor, it makes sense. I also start to think at this point, bonds are starting to offer pretty decent hedge against stocks, too. And so for a while, everything was going up and i think one of the good things for the stock market is that bond yields have started to increase as stocks went up, which is a very strong confirming signal but it givers gives you room to hedge your exposure with bonds. But any way, i like gold thanks both very much up next, its not just the tok market that saw big moves today. Bond yields surging after the jobs report. Well discuss with Jeff Rosenberg when we come back. vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. To deliver your mail and packages and the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. A check on some retail names and how they have performs today. Kohls in particular up 11. 5 . Stocks surging today following a surprising jobs report with the dow posting a fiveday win streak. Plus, a major move higher for bond yields. The tenyear touching its highest lel since march 24th yef rosenberg joins us now by phone. Theres a bit of a brokeout here in yields, jeff. First, tell us how significant this move was this week and what drove it you know, its a very significant move and what i want to focus listeners attention on is the fiveyear fiveyear forward rate its a really nice way to see the message from the bond market the rate basically tells you what is the bond markets expectation for longer run expectations on growth and inflation. That level is now back to its highest point since right before the whole crisis began and really this week was the breakout week and so its a significant message telling you that from the bond markets perspective, youre starting to see what were all seeing, but its validated in terms of turning the corner and avoiding the most negative scenarios of deflation and double dip recession and protracted negativity are we going to see if not deflation, significant inflation and perhaps a much steeper curve . A couple of things. Lets talk about inflation then the steepening of the curve. Weve seen a significant steepening of the curve. On inflation, near term, the positive message from the bond market is the avoidance from inflation. You had measures signalling bright red part of the recovery is price iing back more of a low inflation environment. Its key here that were still in a low inflationa rrry environment. Yes, theres a very important medium to longterm conversation about the potential inflationary trend thats a very longterm. In financing, all these aspects but the near term kind of between now and the next six months, maybe the next year, its really a low inflationary environment. The second part is the steepening of the curve. The fed flans to stay there for a long time. What the bond market doesnt know and well talk more about it and the fomc meeting, what kind of shape of the yield curve is the fed looking for what is consistent with supporting market functioning. Another step down in the pace of purchases from treasuries. And thats helping to steepen the curve in light of a historic amount of issuance coming our way. Every time people get excited about bond moves, were back to the lows i know this is still below 11 which is still a low bond yield, but how far do you think this move goes . You know, that is not really up to the fundamentals that way it might have been in the two weeks in the middle of the covid crisis, we strurkly changed the make up of the bond market bond professionals like myself, we debate what the fed is going to do. What does supporting market functioning mean how big will the Balance Sheet go to support that were detached from the economic fundamentals of real Interest Rates and inflation and Inflation Expectations because its really about this epic wave of supply relative to an unlimited amount of Balance Sheets the fed has said its willing to use i dont think yields to answer the question, are going to go significantly higher because that would tighten financial conditions it would disrupt much of the benefits that the fed liquidity injections have gained and they dont want to see that could they, will they and they seem to be willing to let bond yields in the back end drift a little bit wider here. Little bit higher here but i dont think were going to have a significant increase in yields thats going to disrupt Financial Market conditions that would undermine everythings thats been accomplished the dollar has been all over the place this year. Do you feel now it will begin to react begin to differing International Fundamentals or is that going to be a risk on ris i off dollar safe haven trade depending on what equity markets are doing . I think we reiterated the dollar safe haven status we saw that very clearly, were seeing it again. So i think you have that aspect. I think injected in that, especially this week, you have kind of the competing Central Banks Balance Sheet growth and so that piece in terms of relative currency valuations will be an additional part so if you u move to less risk on risk off, it may be a more room for tsome of these other factors, bt i dont think the risk on safe haven aspect of the dollar is going to be diminished anytime soon jeff, thanks for joining us thank you up next, after the rapid rise in the market, are investors positioned for more gains in stocks mike checking the charts next and you can always watch or listen live on the go on the cnbc app lbeig bk tethe dow closed up 829 points today turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. 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 the dow higher by 829 points the high of the session was over 1,000 but still over 3 gain 2 2. 6 gain for the s p 500. Nasdaq 100 hit a record all time high the russell up 3. 8 . All 11 sectors up higher today and nicely higher for the week energy, financials and industrials up more than 10 for the week as a whole. How about a 12 gain for bank stocks this week not too shabby over to mike now taking a look at how investors are positionedd amid the rally i always love to check in with you on this front. Its been a common mantra for the last couple of months to say this was a hated rally its not quite true. This is from bank of americas Wealth Management division the strategists there talk about their client allocations now and its up to 57 equities. Youll see it is above the 15year average. Its above 60 at peaks during the 2010 bull market so clearly thats room for it to rise so by no stretch are people underexposed this shot was probably too quick to really have people intentionally take allocations down to so this is really just market prices going down so along with other data and retail participation in this rally, i think youre losing a little bit of that case to say this is a hated outright hated rally even though you still have residual caution in there, guys mike, i mean im trying to track whether you know, are we at the point where the panic euphoria models as citigroup has it woul go too far in one direction where its not helpful anymore where everybodys questioning or doubting this rally . At this point, you want to havecalled wall of worry. You can have periods where people agree things are Getting Better theyre willing to put things at risk and the market can continue to go higher its not like it has to be a wrong way move but i think youre lose iing that bullet po that said people are fighting it they dont really want it and you mentioned the city model which measures trading based activities that are starting to seem frothy. Nasdaq volumes from small investors seem like theyre getting overheated but well see if it can persist. Thanks for that alexis from reddits board to nll with a black candidate. Upext, well ask daymond john whether more executives should follow that lead back in a couple of minutes. Oh, we love our new home. Neighborhoods great. Amazing school district. The hoa has been very involved. These shrubs arent board approved. You need to break down your cardboard. Thank you. Violation. Violation. I see youve met cynthia. At least geico makes bundling our home and Car Insurance easy. And it does help us save a bunch of money. Two inches over regulation. Thanks, cynthia. For bundling made easy, go to geico. Com markets rallying today a quick check on how big tech stocks pfinished up. 2 gain for facebook apple, 2. 9 despite the fact that various cyclicals and value names rallied most of all. The bigger recent tech outperformers also registering gains. Walmarts ceo announcing today a 100 million donation over five years through a new center on Racial Equity following a nationwide movement protesting Police Brutality and the death of george floyd. Mcmillan is also the chairman of the business round tab group of ceos said the coalition will create a special committee that focuses on Public Policy solutions and corporate initiatives that advance racial equality. Nike is also committing 40 million to supporting orgs that follow on social justicement one of few companies that regularly puts out diversity numbers currently, nike has 23 of its board thats black or africanamerican and across all employees, 22 ceo john donahoe saying in a letter to employees quote, nike needs to be better than society as a whole our aspiration is to be a leader while we have made progress, we have a long way to go and then just now, nike owned jordan brand upping the anti. Michael jordan and jordan brand will be donating 100 million. Wilfred. Joining us for more on what companies can be doing to support the black community is daymond john, also author of power shift, transform any situation, close any deal and achieve any outcome. Very good afternoon to you thanks for joining us. Thank you for having me so many encouraging statements from Business Leaders this week. Are you hopeful theres lasting action to follow i am hopeful. Im glad theyre putting it out there. Im advising a lot of ceos i know the first step. Listen to your staff internally. I had to have a meeting with my entire staff and i had man a color. I knew they would have questions. A lot hoff people that arent minorities just dont understand what they feel like they want to do and dont know where to start, so internally, have those tough questions being asked. Find out how your colleague or staff feels and have the other individuals who may not be of color ask also and theyll start to get more insight. It has to start within the company and then of course its amazing theyre going out to help other organizations that are helping you know the black community. The diversity numbers at nike, of 22, 23 which is actually higher than a lot of the rest of Corporate America, which doesnt publish this diversity and inclusion had been hot buzz words for years now esg had been all the rage. Why do you think these numbers are still so low and do you have hope they are going to grow at any rapid pace as a result of this moment were in right now its been due unfortunately to systemic racisracism it took up until weinstein 60 years later to really start making legislation that means that a womans voice was heard when youre hiring practices, when you say listen, if you happen to be a felon, let us know, well then all felons arent created equal i know somebody who had 1,000 worth of drugs with them and spent ten years in jail. If systemic racism is to arrest as many people as you can, you make it hard for people who are employers to hire them because they look at it as if the guy or girl was scar face true entrepreneurs what they do find a problem in the mark identify the problem, they listen they do their homework and then they figure it out and this is what you have to do. It starts with the systemic racism before you can get to help your company. You need to understand some things to help is there racism when it comes to access to capital absolutely. You know, listen, the banks often have nott given minoritie the rates they would give others again going back to asking if they had a felony or a crime then you may not have the generational wealth that was passed down or the education you dont necessarily have the grandparents and great grandparents who had businesses to talk about how interest was, setting up the mund mentals o a company. This goes back a long way but u how can people fix it is listen and understand internal ly who your staff is and then youll be able to externally commute in bet r way. I mean this is all coming at such a hard time for the overall economy. And especially for black employment and black economics we got the jobs report today and it showed job gains and unemployment fell but for black americans, that rate rose. 16. 8 . Higher than the national avrnl rate ifs whites was 12. 4 . How do we fix that it starts with education and being open to hiring more people and diversifying your team and understanding youre going to get more value, more creativity from two different or four different parties but u to put the change within your hiring practice you cant force it i dont force any person of color or not of my color to be the initiative but you have to say im going to give them a shot and a try and look at the things such as felonies records education. You know most of my employs came from good schools because they were interns who started but if americans dont have access to that type of education then the pool youre going to come from to take out of is not going to be filled with too many people of color so maybe you should look in other pools as well for people who could be part of your team i wanted to pivot to talk about how the businesses that you speak to so often that you are invested in are feeling at the moment in light of the coronavirus. Clearly, the stock market back to being flat year to date does that tally with what you invest in . No, half are doing really amazing because they may have been people of companies that directly deal with their consumers and some are high touch businesses whether its raestaurants or service areas. In regards to other ceos im talking to, the same thing theyre all just trying to make a change but the stock markets arent really reflecting what were doing in business now u one more interesting example as it relates to business and the race issue today, the reddit cofounder, he teped down from his own board saying that he was stepping down to urge the company to replace him with a black candidate saying that hes writing it as a father who needs to be able to answer his black daughter when she asks with what did you do . Is that a the kind of action you want to see in Corporate America . I do. I think that is absolutely amazing. I take my hat off because you know hes actually taking action and other people will hopefully follow suit. Whether they want to step down or say we need to include this you know people are sart iing to identify a lot now with whats going on and people of all color rs taking to the street to make sure that they, that Everybody Knows that this is wrong and there needs to be change youre seeing action like that where other people will follow i think its amazing the only question and ive heard this from Business Leaders not necessarily on air, how do you do this in a way that doesnt alienate people where you make them feel theyre only being put on the board because theyre the token minority or black person the same thing with women. Whether its from quotas or just a rising awareness to the moment where you find the qualified people and make them feel included yeah, i think the people will understand that theyre getting this opportunity but if youre going after a pool of people you think are brilliant, when Jackie Robinson understood that he was he was also a great athlete and play r and overperformed. I think that you should also take that in consideration and dont have anybody that you include in there and if you dont meet up to the standards, you have to get rid of them because it will make us all look bad, both sides, all color, if we have people there not up to the standard, but there are many people who are up to the standard who just didnt get their shot and i think that we have to do that now. Thank you for joining us. Thank you appreciate the time coronavirus cases surging. Were going to ask former fda commissioner dr. Gottlieb if he thinks civil unrest protests could lead to a second coronavirus wave and slow down the reopening of the economy well be right back. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. This virus is testing all of us. And its testing the people on the front lines of this fight most of all. So abbott is getting new tests into their hands, delivering the critical results they need. And until this fight is over, we. Will. Never. Quit. Because they never quit. Time for a cnbc news update with frank heres whats happening this hour California State Police will no longer use the type of restraint used on george floyd in minneapolis. Governor newsome saying during a News Conference theres no lo longer a place for the technique. John kelly says the u. S. Military should not be deployed against americans. Kelly joins a chorus of officials who have rejected the president s threat to use military forces against violent protests zblnc protests. And a 57person unit in buffalo resigning after they injured a 75yearold man. Theyre stepping down from a team that reponds to large crowd control situations the local Police Union Says the officers were quote simply f following orders to clear everyone from the area. New fencing has been put up around the white house the secret service says it will maintain security measures and allow for peaceful protesting. Back to you. Frank, thank you. Up next, preventing a second wave as more states move forward with reopening, how u can we ensure people say staff . Dr. Fauci gave cnbc his takes. Well break those down with dr. Scott gottlieb when we come back i love these fries. You know, the chef here trained in france. Mmm, it shows so good. Oh hey, did you say you needed help with investing . Because i know someone whos really great. 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. The covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Today, dr. Fauci spoke with meg about the taupes we need to take to prevent a second wave of infection. We dont have to have a second wave. People talk about it, but it doesnt necessarily have to occur. As new infections start to creep up, which they will, as we get into the fall, its the way we and the efficiency and the effectiveness in which we put the manpower, the systems, the tests to identify, isolate and Contact Trace that will determine how successful we are in preventing that wave. Joining us now, dr. Gottlieb. Form rer f drda commissioner, c contributor sits on the boards of pfizer and alum na. Given everything youve learned over the week today, what are your latest expectations when it comes to a second wave well look, we see a persistent level of infection around the country of about 20,000 diagnosed cases a day and thats been for about a month now and it may be that we just cant get below these levels and we take a lot of infection into the fall i agree with tony, a second wave isnt inevitable but if we continue to have this level of infection when were going to reopen schools and try to go back to work, theres a will the of infection that sets up the conditions for a resurgence in the fall were only diagnosing probably about one in ten infections now. This is really 200,000 infections this has been persistent the question is do you need to crush the epidemic or can you have a level of spread and be able to contain it within that level and a are the of countries like japan, south korea, germany, really crushed their epidemics. We havent been able to do that here some states have done it, but a lot of states have had this persistent spread. I know youre watching the rising cases but how do you explain places like georgia which was among the first b and most aggressive to reopening we havent seen a surge. The lake of the ozarks crowds hundreds of people gathered closely and theres no surge there m how do you explain this . Lets look at georgia new york had the biggest epidemic in the world in terms of what happened in new york city new york city implemented very tough measures really crushed their especially deppic its come all the way down new york city recorded a day, the first day with no deaths in a r very long time new york states recording about 150 hospitalizations a day right now. Theyve come all the way down their curve. Georgia by contrast has more hospitalizations than new york right now. They never really had a large epidemic, but never really eck ti extinguished it. Georgia was never as heavily seeded so they had infection coming into the state. They had a level of spread theyve brought it down to a lower level than what it was at but theyve never been al to really crush the epidemic and drive down their curve to the kinds of levels were seeing in new york so if they take that level of infection through the summer, i think theyre setting up a will the of risk for the fall we may be able to sustain this through the summer because we have a backstop from the seasonal effect of the summer. We may not see it go down much either and thats a lot of risk for the fall i dont know that were properly discounting that risk for the fall right now theres been a lot of talk about what the protests are likely to show us, the likelihood of a second wave. What will you will watching out for in the day and when would you expegt to have gotten confirmation of whether that caused a big second spread or not . I think its going to take two or three weeks really to see the impact from these large gatherings and i think its inevidefvitablfvitable there wie of transmission. You look at the picture us a lot of people are Wearing Masks so they are conscious of the fact theres a pandemic going on, but these gatherings create risk. On what scope, we dont know the its hard to tale. We need to wait two or three weeks because its likely to take two or three cycles of transmission before you start to see the impact of these kind of gatherings show up there will be one round of infections that gets sparked and youll have to go through two or three rounds to see it show up so you have to look at states like minnesota which had high lefl levels of infection and see if you see an uptick, as well as New York New York was really coming down aggressively if you start to see an uptick in new york in the next two or three weeks, some is going to be from the reopening some could be from the gatherings its going to be hard to isolate the effect earlier in the week, we had a cnbc survey that suggested quite a High Percentage of people didnt want to take the vaccine if and when one was fully operational. Is that a problem . Do we need to see everyone get vaccinated for the vaccine to be fully effective . No, we dont and actually, the levels in that survey is pretty consistent levels in thas pretty consistent of what weve seen the vaccine uptick. About 50 take the shingles. And 45 that are eligible. If we can get 40 vaccination rate that will be sufficient by the time we get to a vaccine, assuming we dont have an epidemic in the fall and if we continue on the slow burn of 20,000 infections a day and the epidemic of every 60 days. By the time we get to a licensed vaccine in 2021, probably 20 of the population or 20 would have had covid, you can vaccinate an additional 40 you will get to herd immunity. By the time we get to a vaccine, a sizeable portion of the population would be exposed. If we do have a higher percentage of people would have been exposed we will get to avaccine and well have a technological solution here and all of the data shows us that from these Early Vaccine trial, but well have to get through the fall and maybe part of the way into the winter until we can get to that point. Dr. Gottlieb, thanks for joining us. Thanks a lot. Still ahead, the dow closing uporth me an 800 points following a jobs report, but theres one part of the market not benefiting from the economic turnaround we will explain. Ask about xeljanz xr, a oncedaily pill for adults with moderate to severe Rheumatoid Arthritis or active Psoriatic Arthritis for whom methotrexate did not work well enough. It can reduce pain, swelling, and significantly improve physical function. Xeljanz can lower your ability to fight infections like tb; dont start xeljanz if you have an infection. Taking a higher than recommended dose of xeljanz for ra can increase risk of death. Serious, sometimes fatal infections, cancers including lymphoma, and blood clots have happened. As have tears in the stomach or intestines, serious allergic reactions, and changes in lab results. Tell your doctor if youve been somewhere fungal infections are common, or if youve had tb, hepatitis b or c, or are prone to infections. Dont let another morning go by without asking your doctor about xeljanz xr. Without asking your doctor about i geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Up next, how todays stronger than expected jobs report could spell trouble for prospective homebuyers closing bell will be right back stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Todays strong jobs report was a welcome good news for the u. S. Economy and its bad news for Mortgage Rates diana olick here with that story. Diana . Wilf thats because they follow bond yields take a look at the 30year fixed riding from a record low and then spiking today according to mortgage news daily. Low rates have helped a big spike in demand for mortgages from homebuyers up 18 annually last week. Mortgage lenders have struggled to meet that demand and big names like quicken, loan depot and United Wholesale mortgage, all adding thousands of jobs i spoke to j. P. Morgan chase and wells fargo and they also said they are hiring. This rate could be a new breakout higher and given the volatility and the mark, it is still possible that rates could turn back down again back to you guys. Diane a thank you very much for that sara, able to share a fun photo there, as well by j. P. Morgan this is a photo of jamie dimons first public outing with employees since his heart surgery and since covid. Apparently, this is his local branch outside of new york and great to see and hear that his recovery is going well i have to say with those masks and the open vault it looks like they almost robbed it and decided to pose for a team photo before they escaped with their winnings and obviously, just great to see that his recovery is continuing to go well at that chase branch. And it looks like taking a knee to protest the racial inequality as weve been seeing. I dont know if thats the tone of it or not, but whether oh, okay. Whether thats the it looks like theyre doing that it does a bit, but i dont know if it was able to stagger it so they could be socially distanced and still see everyone im not actually sure. I dont know the answer to that, but as you say, in short, if you have the chairman and ceo you dress up smart and suit and ties all around and he showed up in shorts shorts and sneakers, athleisure look the Federal Reserve and thursday well get adobe, lululemon and pvh. Mike santoli, as we look toward the market for the week, clearly the market sniffed out the reopening story and the flattening of the curve. I would just add another hugely hopeful sign that we saw in new york city this week that we saw the first day with no deaths in new york city from covid19 since march and that really was a major milestone. Yes the markets did sniff out this progress in fact, i will say they have a lungful of it and the question now is can the reality of the reopening move up to what investors are now implicitly anticipating at this point, but i do think it is also interesting that a fed meeting is almost an afterthought because we just know that they are there and in Risk Management mode and well reiterate the same message a strong week it was today and all week for the markets and 2. 6 on the s p and 5 for the week as a whole. That does it for closing bell. Fast money begins now. Im melissa lee guy adami, jeff mills, and jim verrone can the record speed of the rally keep the pace . Well get some answers and how high can airlines fly . The name that just turned in its best week ever despite a big downgrade and later on the special edition of fast were counting down the biggest stories of the week from the jobs report to social media, we bring you what we call