Transcripts For CNBC Closing Bell 20240712

59 minutes we are session highs on the dow record highs on the nasdaq composite intraday and set for a record close coming up, the rebound for Airline Stocks has been fast and furious. Is there enough demand to justify the rise well get a firsthand look with robin hayes. Plus, a powerful email from a Goldman Sachs employee about equality in america made the rounds on wall street in the past few days. Well speak with freddererick ba that is coming up on the show. Lets focus in on the big stories were watching to day. Mike san thole and Brian Sullivan watching the Energy Sector which is helping lead the market gains today mike, lets kick things off with you. Yeah, well, this rally continues to impress not just in the magnitude of the gains since the march 23rd low but the persistence of it. Look at a two year chart this is really now a broad move. Up until around this point, you can say it was relatively narrow yes, some of beaten down stocks gained most. Mostst reas of the reason is th Growth Stocks, they have not helped much. It is clearing a lot of resistance a lot of folks like here thought that would be an issue for the market it capped rallies for the better part of a couple of years. The weve cleared that the what are we looking at now really just looking at the speculative activity how stretched the market is relative to the longer term trend. Thats where were at. Figuring out figuring out if sentiment is getting overheated 3200 is about a 50 gain off the lows tha that is probably something to keep in your sights as well. Take a look at the momentum etf over the last year and something called the you turn etf. Its a small fund xh has an interesting strategy of buying lagger stocks. Excessively beaten down stocks from a given week. It looks based on the pro pry takery system to see if theyre worth playing for a rebound. It is buying laggers systemically based on their own scores you see here this was all momentum that is persistence of the leadership not just growth but just the same stocks kind of doing the work here you have it not just a huge move off the bottom for this uturn etf but then we just soared ahead of momentum so that tells you the kind of market it s the top stocks in the s p 500 again today and the most beaten down names over the prior few months and that seems to be the trend right now. Kind of picking up a lot of the wreckage that was left in that huge selloff mike, clearly its a bullish day for equities today the is it fair to say it only for equities if you look at the fact that oil is down. Gold up is the vix is up again. And the ten year yield back below 0. 9 mostly equities its not as much as a macro move credit markets hanging in okay the etf buyers and high yield space really like to get in there. Buy ahead of the perceived further buying of the fed. But, yeah that, is true. It is mostly stock market feeding on its own thousands of new yorkers are expected to return to work today. City begins the first phase of its reopening. Contessa brewer joins us now with the details new york city had the first confirmed case in february today theyre launching phase one and the Beauty Supply store is reopen. A line outside social distancing in effect. Theyre only letting a few people in at a time and limiting the time they can be there 16,000 retail shops are now allowed to reopen with delivery at curb side or instore pick up. Look at this long line of Stores Across the street. These are chain stores you would recognize. You have the footlocker, american eagle, the shoe store, they remained closed. The independent stores are the ones eager to reopen im looking ahead, the challenge is really were looking at traffic, seeing if traffic is going to come back. What our new normal is going to look like. The challenge is really hoping that people come back, feel comfortable to come back outside and shop and the city says more than 33,000 nonessential Construction Projects are allowed to resume again as well. Manufacturing and wholesal services are also getting the green light today. And in this area, the Shopping Center is very busy in brooklyn. But customers at the big mall are still only allowed into the essential businesses and to the target and into the trader joes the windows are all boarded up against damage from the civil unrest we just had had a protest come through here an hour ago otherwise, it is full steam ahead. You see this shop that is reopening. How is that for lucky . Lucky day one. Sarah . Wil . Very good you didnt plan that at all. What makes new york unique among other cities and sthats are reopening, the public Mass Transit System what do we know about whether people are even allowed to ride it to get to work. And also the skyscrapers and those Office Buildings where hundreds and thousands of people have to take the same elevator and enter the building at the same time. Are either of those two things returning . Yes look, a lot of people live in skyscrapers in manhattan you have no choice but to get into the elevator. Theyre trying to make sure there is social distancing, one or two people up at a time no more than 50 capacity. That is the same rules for the construction areas the subway, theyre trying to ask people to stagger the work times that people have to show up so you dont get this jam packed rush hour the mta expected capacity to come in maybe at 15 of normal woor hopi were hoping to get numbers to tell us what the return was like today. Thank you very much for that. Pure gold on show from contessa jewellers and crossing the street live there. Thank you to contessa. Lets send to the Energy Sector now the top performer in the s p 500 building on strong gains from the march lows, Brian Sullivan has a closer look. Brian . I see what you did there, contessa jewelers, pure gold good stuff you know what else is good energy how long has it been since we said that . I mean you look at energy today. It is on the run the price of oil is up the price of oil and Energy Stocks is up even more if you have not been paying attention to what energy has done because for first 90 days of the year, it was one direction. Down the xop, 60 all the way down to 29 the xop is back to 70. Wti crude, look at that. It did hit 40 earlier today. I mean that v, that spike drop in the middle really tells the story not just guys of that leave your home trade as i call it or reopen or whatever it is but also a demand spike. Weve been showing all these sort of High Frequency type indicators traffic data, restaurant reservations, ttas and most have a long way to go to get back to where they were. But theyre well off the lows. Opec, of course, has done a good job in managing supplies they had a press conference today. Theyre going to continue their cuts theyre going to revisit that in a month. More oil is likely to come on. But they expect demand, guys, to pick up faster ill leave you with. This you look at two stocks, Marathon Petroleum and oxidental. There were real concerns in the bonds. We were talking about the debt the stocks doubled in price just this quarter not all is well in energy. Nobody saying that but 40 can Keep Companies alive and afloat unlike negative 40 yeah. Looks a whole lot better brian, thanks. Brian sullivan after the break, the next leg for the Airlines Jetblue shares doubled from the march lows does that mean demand has matched up were going totalk to jetblue Ceo Robin Hayes about the trend hes seeing next youre watching closing bell here on cnbc we have 50 minutes left of trading. Dear fellow Business Leaders and technologists, i see all the Amazing Things you have been doing. You are transforming Business Models, and virtualizing workforces overnight. Because so much of that relies on financing, we have committed two billion dollars to relieve the pressure on your business. As you adapt and transform, were here with the people, financing, and technology, ready to help. We hope you find these Digital Solutions helpful to bank from almost anywhere. Deposit a check with your phone or tablet. Check balances, pay bills, and more. Send money to people you know and trust with zelle. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. The tsa screening the highest number theyve have in months American Airlines is boosting the schedule for the following month. Airline stocks are rallying on any hope of return like american, jetblue and united and delta are up triple digits from the march lows joining us now for more on the trends hes seeing as jetblues Ceo Robin Hayes. A very good afternoon. Thank you for joining us good afternoon to you hi to sarah. What weve seen, i mentioned a brief selection of the statistics theres been quite a lot of them coming out over the last couple weeks. Suggesting a pickup in bookings and lightly trarvffic in the months ahead you have been seeing the same . Yes we have to remember how low we went if you go back to p april time, you know, we were seeing about 3 to 5 of customers fly that normally fly as we came into may. We were flying about 10 to 15 of the schedule we planneded if we look at june, were flying between 25 to 30 of what we planned. Were finalizing summer now. We continue to see some interest in sort of Summer Vacation and Leisure Travel and were seeing that in the bookings so 30 of whats normal so what are you estimating for how long it will take you to get back to normal were expecting the summer. With we look at july, were still finalizing the schedule now. Way think were going to fly about half of our original schedule for july. We think august is likely to be bate stronger than july. We have seen pickup in leisure the question that we have is what happens to Business Travel and how long does that really take to come back . On that point, robin, it looks like from the European Airlines weve seen data again suggesting intraeurope, within europe travel is going to pick up significantly as we have here for within u. S were learning as we go along. I think as we came into this we felt domestic would recover from international. We felt international it was closer to the u. S. Would recover more quickly than international. International and still many countries that are closed that were not flying to. As those markets start to get into july and august they start to add flights back robin, lets talk about for a second what its like to fly i know you were the First Airline in the u. S. To require passengers wear masks. You are enforcing that policy . We heard a lot of anecdotal evidence there is a number of articles saying that people are not Wearing Masks or not everyone is Wearing Masks on the flights yes so, yes. Customers have when they board the airplane, if they wont wear a mask, then well not board them we do have ones to offer them to wear in case they forgot one or dont have one and then during the airplane, you know, during the flight itself, you know, look, were trying to be sensible about it you need to eat and drink. You need to maybe have a quiet conversation with someone. But, you know, just use common sense. Use good judgement in flight crew members are amazing diplomats. Theyre used to persuading people to do things they dont always want to do. We have few issues so far f a customer refuses to fall a crew member instruction, its like any other situation. Then well review that customer for flying jetblue in the future we need have people on the airplane that are going to play a team sport and cooperate so we can get through this together. Can you update us on where you stand with the outlook and the months ahead for possible layoffs at jetblue can you take government aide and relief in the cares act . Sure. We have not furloughed anyone in our 28year history. Were extremely proud of that. Were trying to come through this and keep that intact. So were going to be working on a series of volunteer programs weve had an extremely good takeup for the summer, about 60 of our crew members, so about 14,000 out of 23,000 have voluntarily taken some form of unpaid time off. So were going to continue to push those programs out into the fore and, you know, if we can get enough interest in the involuntary programs and i believe we can, then that should mean we do not have to resort to involuntary furloughs so we can keep our 20year record. Right now to the degree companies k. Thats the way to come out of this more quickly. It may be possible you have to make some layoffs in the months ahead we dont know yet. But certainly some of your competitors are suggesting that come september they will be making firm layoffs despite taking government help do you understand the political backlash, the media backlash when things like that do happen after government aid and do you consider your industry and your airline unbelievably lucky to have received the help you did from the government yes so we are unbelievably lucky i remember being on your show. You asked me about government support. I say we need a slot waiver. And look what has happened since we were very fortunate the i think the thing to remember about the c. A. R. E. S. Act is it covers about 76 of our payroll expense for the same period last year and of that, we have to pay about 30 back so in terms of when you look at the money we got that doesnt have to be paid back, its just about half of what our salary and payroll cost for the period last year. And in an environment where, you know, we were for a while at zero if not negative revenue, airlines are still under an incredible amount of pressure. Now the c. A. R. E. S. Act requires everyone not to furlough, no to the lay anyone off through the end of september and i know as an industry were making sure we deliver on that commitment but i guess to the question, what happens october 1 when some of the restrictions tied to the c. A. R. E. S. Act expire to your industry broadly a lot of the bigger competitors have double digit numbers when it comes to debt in the billions of dollars i know you have a little bit lower. But still have the debt issue. I mean what is going to happen to the industry this fall . Well, i mean we came into this with a very strong balance sheet. Probably the second strongest in the u. S. We fought hard to conserve cash. The i cant speak tore our other airlines you know, they have to speak for themselves i will will tell you that everyone is focused on trying to come through this as best they k. Protecting as many jobs as they can there is more Business Travel. Youre going to be more conservative about how long the recovery is going to take. For us, were 80 leisure. 70 domestic we think that our business is going to rebound and respond and come back more quicker than most but its still going to be a period of time before we back to where we were in 2019. Youre kind of conservative comments on Business Class travel is that directly because of less likely Corporate Travel and the work from home to allow people to take meetings via zoom or whatever it may be as opposed to traveling such that wiit will never come back . I think it comes back at the end of the day, gdp is usually a huge driver of business so i think some habits will stay i think were learning as we go through this that we can do more remotely than we thought before. There are certain jobs that you get a sales force out. Those things are hard to do through a link like this so we think it will come back. There is an expense issue. You know, longer haul business flights cost more than domestically for a lot of people as they come out of this and as they get better sense of what risk theyre willing to take, a lot of people want to stay closer to home for the initial trips. So youre very exposed to the caribbean, robin back to the leisure. We win. 21 for once makes it change right its still adidas, wilfred what are you seeing in terms of booking caribbean vacations right now . You are making any adjustments when it comes to how exposed you are to different places and plans, for instance, to london and other things based on what youre seeing from these early signs from the consumer and what the preferences are . Yeah. So, you know, ill take the bait on the london question you know, were still going to london the i think its going to be a bit later than we thought. Still in 2021. I think that the Business Travel market to london will start to come back as we get into the second half of next year so we want to be there to, you know, lower fairs and tares. A lot of the caribbean markets are close to tourism were talking about how we can open up safely a couple of destinations have announced theyre going to be opening in july. So were directing capacity there in a thoughtful way. But again, i think once the markets are open, you know, a lot of the outdoor beach vacations, they lend themselves tosocially distance and also sort of have a very enjoyable time i think there will be some great deals around as they open. Hotels and airlines are going to want to entice people to fly i think once these countries open up for tourism, i think demand will fill out pretty quickly. Robin hayes, good to hear from you thank you. Thank you yep take care bye. We got just under 40 minutes left 37 minutes left of trading take a look at the markets right now. Were in rally mode again. Building on what was a very strong week and a strong day on friday dow is up 320. Up 1. 2 . The nasdaq has joined the party as well. Tech was lagging earlier it is higher now the s p 500 up almost 1 after the break, Fitness Company crossfit seeing backlash from one major partner after controversial comments from its founder. Well bring you the details right after the break. 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If it doesnt change and our commitment and dedication to the Crossfit Community rebok announced the sponsorship a decade ago it was a he ten year deal in 2010 credited for breathing new life into reebok which had languished since the heyday in the 1980s when it held 30 market share. This was significant for reebok. Along with sponsoring the Crossfit Games which is the annual competition, they held the exclusive license to sell crossfit branded apparel crossfit has somewhat unusual model. Affiliate gyms pay licensing and training fees to the Parent Company but are independent businesses since the news broke, countless affiliates which are called boxes promised to breakaway from the company. The ceo tweeting yesterday, i made a mistake by the words i chose. It was a mistake not racist, but a mistake. Reebok the largest sponsor of crossfit whose future competitions and big sponsors are now a big unknown. This was the biggest sponsor, wilfred. They have a couple other little ones they announce their breaking relationship but for reebok, its significant in that it has played a role in the turn around of reebok. Still, sales are tracking about where they were four years ago so not increasing momentum like we sae saw tw in the last few y, but clearly will be a question, i think, for adidas. This brand was always seen as a comeback story and potential divestiture which can bring in a lot of cash for adidas for crossfit itself, as you talked about, they were already in negotiations whether to resign with reebok or with one of the rivals. So particularly bad timing if not just reebok but other high profile brands decide they cant partner with crossfit going forward. Also that Business Model you eluded to for crossfit suggesting that a lot of the gyms may break way in a way that is far easier to do than if it was a fully crossfit owned Business Model and remains to be seen if it does real serious lasting damage to crossfit itself for sure. Costly mistake watch what you tweet when were in a moment where most we cover on a daily basis are coming out and denouncing racism, putting out donations, this has been a universal issue. And for one, crossfit was silent on it which they received some criticism for. And, two, for the ceo to make sort of an insensitive joke about it, obviously it could be very costly. Just want to check in on the markets as well. The higher the session for the dow is up about 3 4 340 were close to that level at the moment so near the session highs. That is a record high there or there abouts set for another record closing high and we have had an intraday high as well. We have breaking news on the fed. Steve liesman. Thank you very much the Federal Reserve once again expanding the terms and expanding the availability of credit through the yet to be launched main Street Lending facility the fed lowered the minimum size of a loan from 500,000 to 250,000 it also raised the maximum amount of loans. The largest lone now is 300 million compared to prior of 200 million the fed also extending loan terms to five years from four years and now you get a two year delay on principal payment compared to one year in the original rules that were announced. The Federal Reserve saying the main Street Lending program will be open soon could be any day now i dont know if you remember but over a month ago i did a story citing several people who were wondering was the Federal Reserve and the treasury together, remember the treasury received 75 billion worth of equity, was it taking enough risk to really help out Small Businesses over a series of changes to the main street facility it seems like the fed has decided initially it didnt. Now it looks like its going out further on the risk spectrum here smaller loans, longer delay in repayment. And also retention from the banks. This program has been pretty fairly criticized from several different quarters and a lot of lobbying of the fed to change the rules, make the loans easier to really help out businesses. I think the fact that its taken so long, steve, to get off the ground actually shows that from your reporting here that theyre spending a lot of time thinking about how this is going to work and whos going to qualify. Do you have a sense of what type of businesses are going to actually be the beneficiaries . So its supposed to fall into, i dont know for a lack of a better term, sarah, the donut hole between those businesses that got help through the ppp program and those businesses that can go Public Companies that can go to the Corporate Bond program, the Federal Reserve also is involved within the launch and one part as well. So its the medium size businesses between 500 and 15,000 employees its right in that sector that cannot really access the public markets. There is still a problem with the name if you think about it its called the main Street Lending facility i dont know of any main street business that has 500 employees. Its the fed doing a little pr work with the name of the fund steve, thanks very much for that were by the way right in the session highs. Up 350 points on the dow 1. 3 still ahead, Venture Capital firms placing bets on the technology thats will matter most in a post covid19 world. Will well speak with the partner with bessemer adventures heres a look in at bonds. Yields slipping to day having been 0. 9 on the ten year. Last week below that level of the moment slightly lower and flattening yield curve despite the banks are rallying were back in a couple minutes dow is up 350 points time for an update heres your cnbc update at this hour. White House Press Secretary says President Trump is considering a number of proposals in response to the death of george floyd while in police custody. However, she is sharply critical of calls to defund the police. This is rolling back the protective layers that protect americans in their homes and places of business hes upset by it in houston, democratic president ial nominee joe biden met with members of the floyd family as well as family Attorney Ben Crump photo of the Group Members of the press were not permitted to attend. And in philadelphia, a Police Inspector has been greeted with salutes and cheers from his fellow officers as he went to surrender on charges of aggravated assault for allegedly beating a College Student with his baton during protests last week sarah . Back to you. Ill pick it up there thank you so much for. That were up 1. 3 on the dow with what 25 minutes left in the session. After the break, is Millennial Money the new smart money . Well dive into the surprising findings from Td Ameritrade about what younger investors have been yibung and selling successfully coming up next. At leaf blowers. 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. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back 20 minutes left of trade, were looking at session highs the dow is up 375 points boeing is the leader every sector in the s p 500 is higher expect for materials. Td ameritrade releasing findings of the Investor Movement index which clients positions. They were net buyers and turned out millennial clients in particular were bullish showing the widest gap between millennials and overall clients since november 2018. Joining us to dus the findings is j. J. Kenihan chief Market Strategist good to see you again. Talk us through the results an what was so notable about that bullishness among millennials. Yeah. Ill start with, you know, very interesting to me if we look over the last few months the millennials have been more bullish than our average client base and, in fact, if we go back had the pleasure of joining you the last few months talking about this and if you remember in the march month, our millennials started buying Carnival Cruise lines when it is down. The rest of the population joined them later. So then they were onairlines before the rest of them. This month it was draft kings. That has been a rocket ship. Its having a rough day to day but i mean its been crazy how fast thats gone up. And mgm. But with that, the interesting thing is, sarah, theyve been bigger boppers in j. P. Morgan and cocacola. It is bifurcated what theyre buying so what im wond seering is the shorter term plays based on the opening of businesses whereas others may look and say, you know what . These are longer term plays that i want to Start Building my portfolio around i think is a perception among people that millennials are only trading for the quick hit. They also want to build a portfolio longer term. J. J. , put aside the millennials analysis what has been the top thing that has been sold over the course of the last month yeah. So while this month i think, wofrl, what is interesting is two months ago we were talking about our clients buying tesla as it went, you know, under 500, down into the mid 300s now that its back, as soon as tesla started hitting 800, we saw sellers start to come out. It progressed higher with he see more people starting to sell. The stock market seems to be way out in front i think one of the headwinds may be, okay, a tesla obviously being a very luxury item is that something that people are going to put off buying until they are more sure of where their job is going to be and overall whats going on in the economy. That was also for the secretary month in a row a big seller. J. J. , thank you for joining us always a pleasure thank you for having me. J. J coming up next, the boeing breakout intensifies and retail could have a long road to recovery well bring you those stories and much more when we enter the market zone. 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. [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. 14 minutes left in the trading day. Were in the market zone. Commercial free action of going into the to break down the crucial moments of the trading day. Today we have Barbara Duran joining us as well lets kick it off with the Broader Market Stanley Drukenmiller joining us recently to discuss the rally weve seen for stocks. Ive been humbled many times in my career and im sure ill be humbled many times in the future and the last three weeks certainly fits that category so i have long term concerns for the last few years that because of easy money, too much debt was being built up in the corporate sector when covid19 hit, i was of the view that there was a good chance that bubble finally the credit bubble burst. And the underlining of that leverage could take years. Im still of that view over the long term. A mea culpa there after, what, he said he was up 3 as the market rebounded more than 40 . And after those comments, it never looked worse in his career yeah. And, you know, concerns about valuation. I think its representative of how a lot of people feel about this market which is allowed investors to comfortably get in before it has kind of run away to the upside. The fed has really placed a cushion under that partst market it was just a market essentially raced to price in if the floor is higher, maybe the ceiling is can go up further from there. So i do think a lot of people are feeling and the price action we see today where it just kind of grinds up and grinds up and grinds up with no news and nobody really reacting to a lot of macro signals, shows you it is a lot of positioning pain causing people to add exposure i will just say, as you say, a mea culpa for which he should be commended for making given that he was willing to come on and sort of add mit he wasnt accurate i think it is worth mentioning a theme that jim cramer is talking about earlier today which is as a long Term Investor, youre not defined by what you say on cnbc with a two week or three week or four week gap. They define the long Term Investor performance own for that, of course, he has great long term track record on. On the point by the way of airlines, lets move on and talk about the move which has been massive, of course in, recent weeks. And robin hayes from jetblue joined us earlier. We were seeing 40 or 50 of customers fly as we came into may. We were flying about 10 to 15 of the schedule we plan. Were flying between 25 to 30 of how we planned and we just finalizing summer now. We continue to see some interest in sort of Summer Vacation and Leisure Travel were seeing that in the bookings theyre down year to date s that a good long Term Investment entry point . I think you can wait here the stocks had a bounce in my view it really was friday was a rush to get position because this news with the employment was probably a month or so earlier than people expected we thought july, Third Quarter would be, you know, at the time of a transition. I think the airlines here, you have to make a distinction the there is Corporate Travel, 50 of usair line revenue. And then leisure leisure is bouncing back thats where you have to look at airlines like jetblue, like alaska air that really cater only to the leisure section. Jet blue is interesting. It is only leisure but very competitive markets, whether its new york, boston. So theyll have a tough road to hoe. It is about 35 more but thats why the money is rushing in to jetblue. I think its a good move how much more upside is a question i think price is going to be tough. Are investors given Certain Airlines the benefit of the doubt . Are they distinguishing between the debt profiles, balance sheets, the exposure that barb is talking about or it is buy, buy, buy do a degree at the beginning of the move there was a lot of discernment. Even with these moves, the stocks are down a lot from their highs. So it seems as if you can just kind of put a number out there and say i think that its going to recover x of normal and have an excuse for buying the group so i dont think there is a lot of discrimination going on as they goup every single day yeah. Dow session highs by the way were up 426 points right now. And boeing is leading the charge there. On the dow again related to this whole conversation will phil lebeau with the details on boeing. Heck of a move by boeing. Its trading now at levels we last saw in early march. And i know this sounds strange were only eight days into june. But boeing is headed towards its best month ever. Lets see how itcontinues for the rest of the month. Were only eight days in but theyre up almost 60, more than 60 the investors are ignoring the three things year to date orders. Negative 516 the order book is not Getting Better it is staying the same, deteriorating. May orders andeliveries come out tomorrow we dont know when the 737 max certification will happen. They think it happen about it end of the Third Quarter thats not a guarantee at this point. As boeing goes, so goes most of their larger publicly traded suppliers. They moved higher along with boeing in the last week. Back to you. Thank you so much for that one. Right now the way its run, no i think its run its course here they have a lot of move. And were seeing airlines cancelling orders because most airlines ceos, you listen to are talking about a full recovery not until 22 at the earliest so there is a lot of issues in how the backlog is now we know boeing is going to be a long term winner but i think much longer term given the bounce back, even though its still off the high significantly, i think its run its course i would not be adding here boeing as a market barometer, its still down 28 year to date its underperformed the market but boy, as phil talked about, its had quite a month to date up almost 60 . Yeah. And again, its benefiting from low expectations and essentially the base effect. Basically having no business right now and, therefore, how much is increase in business going to mean to the bottom line a tremendous amount of room once again. Anything that looks like its down a lot and will benefit from some kind of track back toward a normal economy is working very well right now its very difficult to know what equilibrium were going to find that we call the next definition of normal. Right now though, because nobody knows that, people can kind of trade these as based on the their own hopes for that were pretty much at session highs with five minutes left all three major indices up more than 1 . It could take three years for retail sales to recover from the Coronavirus Crisis Courtney Reagan has details for that hi. The so with will economy closed, vacations canceled, dinners out tabled and so much more, americans werent spending so much they were saving and we saw the savings rate hit the highest level ever, 33 in april. Now some retailers are indicating that consumers are spending more than expected during the early reopenings. Still, the forecast suggests 2020 u. S. Retail sales will fall more than 10 this year and take more than three years to recover. It will take five years to return to prepandemic levels sales of food and beverage, health and beauty, the categories are predicted to grow ecommerce is up 18 a year. It would make up 14 of total retail sales for the first time, they project that walmart will be the number two Online Player in the u. S. By market share this year surpassing ebay thanks to surging interest in buy on line pickup and store and grocery delivery growth at the covid19 outbreak in the categories some say really accelerated three to four years in just three to four months so some of the trends that were starting really sort of was like care seen poured on a fire for some of these retail trends. Back over you to, sarah and wil. We should mention that tomorrow were speaking exclusively to macys ceo right here on the closing bell to talk about everything retail bhashgs he is seeing for both his company as well as the broader landscape. Back over to you guys. Thanks so much for that one go ahead, sarah no. Its great to hear from him. Havent heard from macys in a long time. Theyve been under enormous pressure not just as a result of Department Stores and lack of traffic and the shutdown but the protests as well bar sh, a barb, are the declines in retail spending that theyre forecasting for the year factored into the stocks already . Well, it is interesting youre wondering what theyre extrapolating from if theyre really basing it on a real change in Consumer Behavior which is highly likely as courtney pointed out, we have seen a expression of some years into ecommerce. People that are there are doing well the rest have to get into the omni channel a lot of the names are just coming out weve alreadyseen a clear demarcation in the winners and losers some winners take a bit of a risk now i think there is going to be a slow opening and certainly, you know, were seeing here in new york, were just entering phase one today. A lot of Retail Stores boarded up but its going to be a while before people are comfortable getting into physical space. Thats going to accelerate things having been in the homes for so long, do you find you need less . That could be thats probably a temporary thing. It is worth watching mike santoli, what you are seeing as we look at another strong close here . Very strong its another day with a very, very widespread rally. More than 90 of the volume to the upside that is pretty emphatic in terms of demand here especially for the rank and file stocks on a day when a lot of the big stocks did not work look at the equal weighted s p 500. It shows similar dynamics. More than twice the gain in the s p 500 based on the equal weighted version smaller stocks, the ones that had not held up well in the decline are doing better today the volatility index is an interesting dynamic. You actually see it up today sometimes it does go up a little bit on a monday just to rebuild premium after a weekend. But in is a little more than that it just shows you maybe the underlying market is getting a little jumpy people are bidding up for options at this point. The who knows if it means that later in the summer things will get stormy does it shows you that the market is getting a little bit Spring Loaded internally i would say at this point as we stretch towards the highs. Thank you one minute left in the session to the point about the vix rising, a couple slightly worrying factors to watch. Crude oil down 3. 4 . Gold up 1. 3 also got yields lower today. The ten year back below the 0. 9 handle at 0. 877 but he can quits a but equities are positive the dow up 440 points as we stand. That is the segts highs. The s p 500 up 1. 2 with all 11 sectors just positive. Materials turning positive moments ago. Energy up 4 despite oil being lower as i mentioned is at the top. Also higher by 2 or more than nasdaq up 1. 8 . A record all time closing high which says it all. The nasdaq now up over 10 year to date. Its close, sarah comp up 1. 2 the dow at 1. 7 . And the s p 500 is up 1. 2 they go positive for the year welcome back everyone to closing bell. Im here with wilfred frost and mike santoli we just shot higher into the close after a strong day all day. 1. 7 that close really took us there up 1. 2 every seconder closing Higher Energy leading the charge. Materials and technology lagging. But still were positive thats why we saw the nasdaq go higher later in the day after sort of weak start we closed at a record high for the nasdaq up 1. 13 dipping earlier. Still it wasnt the tech stocks that led us here theyve been leading all year long this average is up 50 from the lows that we hit in march at the height of the pandemic check out the russell index 2,000. Surging to day 2 almost higher as we continue to see money being put to work in the underperformers the value stocks, small caps that had lagged. Coming up this hour, well speak to the Goldman Sachs executive who wrote an emotional email to colleagues about how they can help push for racial equality. Very buzzy all over the street joining us to talk about the market today though, Barbara Duran is here, jeff klinetop joins the conversation the first to you, mike another very strong close. Off the back of strong gains now the sixth in a row for the dow. On top of what we saw last week. The optimism is getting built in here it is optimism. Absolutely its getting priced in but i almost feel as if its anxiety that is driving things anxiety is run ago way from people when they were underinvested. There was a market on close order that got big and circulated before the close. That was the final ramp. That is an index type thing. Just get me in art cashman, a lot of times he calls these procrastinators rally. You want to wait for the market to pull back it didnt work that dynamic does very well for the indexed while it lasts the question now is in the very short term, are we overshooting getting a little bit heated and stretched. Its obvious in some parts of the market but that in itself doesnt undermine the idea that you saw some very impressive and broad momentum signals that usually signal months out the market is in decent shape. Jeff, i want to come you to in terms of this huge rally weve seen are you encouraged were seeing better opening that it justifies the bounce weve seen . I think the Global Economy is in a at least a v shape recovery so far well have to see how that shapes up and if were getting a initial snapback we have to recognize in the stock market is its a different set of stocks in this rally. Value stocks are doing the listening to the markets thats the in you story. The risk investors face is not that market rally fades. Its that theyre in the wrong stocks and old cycle and not the new leaders of this cycle. Style changes every cycle. Were likely to see value run away with it this time investors need to consider that and rebalance the portfolios towards the stocks that are cyclically oriented. Why is this time different, jeff should investors really be shifting all their money from amazon and facebook and going into beaten down financials and Energy Stocks and industrials. Weve seen this for 15 years now. Once you get a yield curve, you get new leadership this is flipflopped every time for 50 years i think expectations got stretched between some of the growth leaders, particularly some of the u. S. Growth leaders and some of the laggers. I think well see now as growth expectations get reset, those laggers begin to lead the market theyre reflecting much lower expectations. Its interesting what the gentleman was saying before. Im not convinced well see a sustainable leadership here. We have seen this before people are rushing to the undervalued stocks that is the small cap. That is the value names. And so you can look at though, i think the cycle does have more to run i think he is totally right there. Those are names, you know, youre looking at the ford and gm you can still buy into the leisure and travel ive had performance in amazon, n netflix of the world im trimming a little bit on the netflix. These are great secular stories. Were not sure yet well have to see. But i still think its going to be both. I think there is a pause in that leadership and netflix, amazon, you know, amazon is special unto itself. I think you stay long on those i want to get to new terms of the alternative reopening data and the charts youve been building on that front talk us through the car sales one and in particular how it relates to china this is a big ticket item for sure watching what is happening in china is amazing you have to be confident in the job prospect to buy a car. Car sales in china returned to where they were a year ago what were tracking is the China Passenger Car Association but also getting this data from the bmw and daimler benz and gm and ford the china sales, the biggest car market in the world have returned i think that says a lot about the Chinese Consumer and the pace of the rebound in china which is ahead of the rest of the world remember, china is the first in to the covid19 down turn in the first out. Maybe two months ahead of everyone else. The economy is still going strong mike, i guess if we saw similar data in the u. S. , ie, that retail sales and other parts of the economy, the fallback was temporary by the end of this year were back to where we were at the start of the year. Then there is justification for the economy to be the market to be much higher than it is for sure. You know, maybe there already is a justification right now for the market to be where it is given where, you know, bond yields are and where we are in the trajectory of a comeback i think its important to make a difference between the very Service Based domestic facing economy like we have in the u. S. That may or may not kind of quickly get back to where it was in february and china where they flip back on the manufacturing and consumption. I think its legitimately a model to track and i think youre going to have months where Companies Get a pass we sort of rejoice in the huge kind of increases off the lows in terms of activity and all the rest of it and down the road somewhere, we have to realize where its going to settle out in terms of peaking. Thats why the market is doing what its doing. It is free from the negative case for the foreseeable future. At least feels free from the negative case. I think thats why im seeing it get a little bit overheated in this trade china virtually eliminated the covid19 cases they kept it restrained to wuhan then started reporting, whether you believe it or not, fewer and fewer numbers ultimately none. Were still in a place where were watching some of the numbers and the hospitalizations and states like arizona and out in the west and theyre not looking good and were monitoring it and were wondering. I just wonder how confident were going to feel relative to how confident they feel. You know, youre right. There are differences. And were seeing that in canada in the u. S. And the uk brazil and india as well the covid19 case count still remain high. Its interesting the china pattern was followed in australia it was followed in new zealand were seeing it now in italy and france and germany a lot of other places. It seems to be evolving and moving from, you know, from east to west. And maybe eventually gets to the u. S. If we can get our hands around this and really drive the numbers down but youre right, there is a different shaped recovery and different parts of the world being led by asia followed by europe, hopefully well come to the u. S. In some the other emerging markets in the next few months speaking of a consumer, we got stitch fix earnings out right now. Kate rooney has the results. Kate Third Quarter results out a loss per share 33 cents that is more than double what analysts expected. They were looking for 16 cents of a loss there. Revenues were also missed coming in at 372 million that is a decrease of 9 year over year. Stitch fix did withdraw full year guidance given the uncertainty around Business Planning and covid19. The ceo saying in the press release these are extraordinary times and mentioning the effect of covid19 as well. Still though, the stock popping 7 after earnings. Back to you. Kate rooney, thank you very much its down a little bit off that high, that initial spike still down 1 or so. Mike, how doesstitch fix look and where does it fall whether it trades like a retailer or tech ecommerce play i remember that headline last week where they told employees that they have to relocator else theyll be fired sure. I think it did trade a little bit. At least just kind of a high beta, high concept Business Model you could bet on in short term it is below the february highs i think its a lot of people thinking this could work but it hasnt yet proven right now in the shape consumers are in whether they want to sign up, you know, for this type of commitment for stitch fix. Its not one thing or another entirely jeff, just want to get a quick final thought on your relative weight towards u. S. And International Equities european stocks are down 12 slt that an opportunity or not enough of a price gap performance difference to warrant going into your european equities theres a big gap between the expectations between International Companies and Consumer Staples i think there is an opportunity there and that gap may continue to close over the course of this year weve seen over the last two or three weeks real momentum in International Stocks, developed International Stocks and that could continue. Barbara and jeff, thank you so much for joining us another day another rally. Up next, well ask the head of t. Row prices multiasset division where he seize the most attractive opportunities were back in 90 seconds 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. What do i need from a partner right now . An insightful outlook that comes from experience navigating multiple bear markets. Can i find a partner to help guide me through this uncertainty . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Because when you want to create an entirely new feeling, the difference between excellence and mastery is all the difference in the world. 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He also weighed in with his stance on the growth versus value stock play there are hundreds of companies that get hurt by covid19 so thats why, say, the first 35 of the rally was led by the Growth Stocks and now its being led by obviously the last few weeks the value stocks let me say, you have to have an open mind. Personally, i have still Something Like amazon and microsoft on my Largest Holdings but i have the least growth weighting in my portfolio. Ive had maybe for six or seven years. Joining us now Sebastian Paige from t. Row price. Growth or value stocks right now . Were neutral between both. We think now is the time to be diversified between growth and value. There is a case still for Growth Stocks because these are the secular winners. And these are the companies that have faired well during the pandemic and the spread in cumulative returns between value and growth is in part justified by stronger fundamentals and stronger earnings the other side of that is that expectations for the path of the recovery from here remain fairly low. And we can get positive surprises like we just did on unemployment and that will favor value stocks we end up down the middle. Lets be deversefied between styles we get the options with value and the long term secular case with Growth Stocks sebastian, what did you think of that positive surprise in the unemployment data . And what is your outlook if here in terms of what it will mean for equities the data is very hard to measure. There is a lot of unprecedented aspects to the dwrat thata thate looking at i think a lot of economists calibrated the models for the path of the recovery in the unemployment data based on historical recessions. I dont think that the calibrations are right were in a fundamentally even though its going to be a slow recovery and a more temporary recession than what weve had in the past look, restaurants are reopening. Leisure jobs are coming back online and travel jobs are coming back online and its all about expectations. Right . If we if we expect the economy to recover at, say, 20 and be 20 open for the next six to ten months and realize that maybe well be 30, 40 open, then well see a better outcome. And i think thats kind of what has been happening with the unemployment data. Really important thing to mention is that 80 of it is flagged as temporary and that is very different from historical recessions. That number the percentage of unemployment that is typically flagged us temporary is usually 15 . And it probably goes all the i waup to 20 . So were in a different situation here and there is incentive for people to take unemployment with the 600 a week which is fundamentally temporary. We could actually continue to see positive surprises in where we go. Especially given that expectations of just so low at the moment for economic and earningsdata bonds making an interesting move lower not today. Today they went up just in general with yields higher, are you shifting around allocations given the moves were seeing were shifting around first of all, we benefitted from the recovery because weve had a tactical overweight to stocks. And were bringing that back down there are risks with the emerge markets given the stage that the markets are in with respect to the pandemic and also the lingering issue of trade which is itself related to the pandemic but also to geopolitical tensions. So there are risks however, the Valuation Case for markets, look, emerging markets are up on a cumulative return basis 50 over the last five years relative to u. S. Equities. Theyre down theyre down so there is a valuation advantage in favor of emerge markets. Its 50 down relative to u. S. Equities so theyre cheap and now if you expect a weaker u. S. Dollar with the Interest Rate differential narrowing between the u. S. And rest of the world as we drag rates towards zero, if you take into account the fact that u. S. Stimulus is much larger in size an scope in the u. S. Than in the rest of the world, then can you get a weaker u. S. Dollar, even weaker from here which is favorable for emerging markets and the other thing i say about emerging markets is that there are opportunities in that asset class for active management. And there are companies that were sold together with the asset class emerging markets are much more hightech than they used to be, less commodities linked and to a certain extent, financials can benefit from slightly higher rates. If you look through active management and u. S. Weaker dollar, you start with low expectations, very favorable valuations and you have a case for overweighting emerging markets with a six to 18 months horizon. Sebastian paige, thank you for joining us coming up, well speak with Goldman Sachs managing director fred baba about an email that got a lot of coverage on wall street questioning whether companies are really doing enough and following up their rhetoric in terms of affirmative action well have that interview when we come back and much more 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. 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 say that customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. 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Its been dramatic a story the last several weeks from Goldman Sachs, this is the relative performance of cyclicals versus defensive when this line is going up, cyclicals outperform you see right here, pronounced in the last few months now i would say that we have about 7 or 8 of relative performance before we get to this 104 level who knows if its going to be relevant in an on going way. That capped the value of performance, cyclical performance over the last couple years. That would be of significance. How are they valued though compared to one another . This is also a companion chart cyclical stocks way more expensive than defensives. You say wow that looks like it may be risky when you see this kind of a spike as near the bottom in 2009 or smaller with unin 2016, usually what means is the market is racing ahead to price in a sharp rebound in the earnings of cyclical stocks and potentially reacceleration of the economy. Its not necessarily the case that when they get more expensive on a relative basis its when you sell them. That may be a caveat it does suggest the market is trying to run ahead of what it expects to be a comeback in earnings but it also suggests, mike, as the point that youve been making that the market is getting pretty optimistic about the prospect of a v shaped recovery or a stronger recovery that should benefit the overall economy, especially after that jobs report. The market always is in a hurry to get to the next phase most likely it will have largely priced things in well in advance of when we see full fledge, full come back of Economic Activity that doesnt mean its happened by now but it does mean its going to probably hurry to that spot. And then the big question that we keep coming back so as well is just exactly how strong is this point were going to that were going to start calling a return to normal is it and we dont know that its going to be very good for some not very good for others we dont know how stubborn this base of unemployment is going to be anything like that. Thanks very much. Coming up, expressing solidarity is not enough. That is what fred baba messaged his colleagues at Goldman Sachs. And across the business world, the concrete actions he says we need to take as a Society Coming up after this short break. 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. Okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Find a stock basedtech. 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. Try natures bounty sleep3, 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. Makes it beautiful. State of the Art Technology makes it brilliant. The lexus nx experience the crossover in its most visionary form. Experience amazing at your lexus dealer. Goldman sachs managing director sent a powerful email about racial inequality to his colleagues last week that made the rounds on wall street. He wrote in part, ive learned that bad things are more likely to happen to black people solely because theyre black. It is as if our loiives are expendable question never rebuild a store front as mart ij luther king jr. Nonviolent philosophy allowed him to opt out of death by White Supremacy as if the covid19 pandemic ravaging communities of color is acceptable, inevitable costs in our lives are not worth the points of gdp. Its been a lot to process the man that wrote that email, fred baba joins us now good afternoon you to. Thank you for joining us thank you very much for having me. Its been a really fascinating email to read but then to see the traction its gotten. Im sure thats been a surprise to you as well the theme that comes out of it as has been reported is you appreciate so many of the encouraging words that your colleagues and the Business Community have been saying but you would like to see more youd like to see specific action as well. Yeah. So on the one hand i think that the response has been positive i think part of that is that there are a number of people who just were not aware that things were actually happening or they didnt think the things would happen to someone like me. And obviously there are like class implications in that, right . People say fred works at Goldman Sachs. Hes a managing director obviously, the bad things that we hear about racism dont apply to him because hes special in some way and i think one thing that is really interesting is my email is starting to build awareness i from awareness we get to people actually engaging with the difficult topics of race and eventually moving towards ad advocacy im going to stand against injustice in our society and that is where i think more people need to get to. But i think to the extent that people have made that first step its been really encouraging to see. As part of raising at wareness, fred, for those that have not red the oped in bloomberg or email, what stood out to me was that, you know, you tracked the cases over the United States. The ones that we had all heard of but also talked about some personal experiences you dealt with yourself like what happened in chicago so talk about what happened there. Yeah. So i had an experience where i was going to an event and walking to the subway in the north side of chicago. Chicago is a fairly segregated city and two Police Officers approached me and said they had reports of a black male in shorts and a tshirt stealing from some of the residences in the area there were not very many black people in the city and peoples perceptions, they assume i was that person and then i tried to explain to them that was ridiculous and the description was extremely vague and being profiled and there were all the reasons that this person would not be me and talk about where i went to school and where i worked. And at the end of the day, the thing that started to dawn on me is a way they were perceiving me is this had a black person in an area where we dont normally see black people, where we have been told that a crime is committed and this is a trader at a firm in our city that is probably affluent and probably would not commit this crime. Theyre across this country. You were going to have these experiences where you realize that the way someone is responding to you is potentially a function of your race. And i think the thing that is really difficult is that sometimes its going to be very explicit and very racist and youll be able to say for certain this thing is racist and then other times it is not clear. And munn is not fully aware of it this interaction with the ploufPolice Officers and they got extremely physical with me, they were not processing the inherent racism and structural issues around them saying i have seen a black person and although my evidence is extremely shaky, it is clearly this person that is standing in front of me. Right . And so i think the thing that we need to understand is that there are a lot of issues and structural racist, like, imbeddings into our society for a lack of a better term. Part of it is policing that is something that our society is coping with and froesting right now. But its no the just policing. Its policing, its incarceration, its what communities and what people have access to social institutions and wall Street Health care and publ Public Transportation and jobs all these things affect people of color in the United States. They impact how we perceive them and treat them like whether or not theyre able to fully engage and benefit it our society and that is really the undertone i think of a lot of the frustration that we have seen play out on a positive note, there is a lot of solidarity that is developing out of this and as people are becoming more aware that these things are happening and being capable of engaging with these topics and having conversations with their children and feeling excited about donating and going to protest marches, i think progress ishappening and progress is being made but we do still live in a country where a black person can be killed by a Police Officer extra judicially and nothing will happen for several weeks or several months until people take to the streets. So on the one hand, i think that progress is being made and a good conversation is being had on the other hand, my experience is not unique for black people in the United States my experience is unique for people that its not even unique for black people. So these are common themes and experiences where people of color are going to be harassed on the basis of the color of their skin w we as a society are starting to deal with. That. I want to ask you about a particular sentence, feedback from our junior colleagues is while our firm expresses a commitment no equality and social justice at the top, they dont necessarily see support from their direct managers. Can you elaborate a little bit more on that theme of your email in particular absolutely. If you think about the current makeup of corporate america, both at the top and then on the way down f youre a black person in Many Companies across the industry and across the United States, its quite likely the person you report to is not going to be a black person and race is a topic that has a storied and painful history in the United States. So that is already a very difficult topic for people to engage with in the best of times. Particularly with the killings weve seen over the last several months the there are a number of junior people that werent sure how they could have that conversation with the manager if that was okay and if that is perceived as weakness or in some negative light and so, like, i kind of eluded to this some what in the email. I was trying to write an email that would create space for people to have that conversation and also create space for managers to feel like they could engage on the topics and properly support the black people that report to them because i think for a lot of white people in the United States, because this is an extremely difficult topic many of them choose not to engage with it. There is concern about am i going to say the wrong thing is it going to be misconstrued am i going to be offensive and cause more damage than if i had said nothing but the problem with not saying anything is that you are implicitly allowing the current state of the world to continue and that, i think people are coming to realize is unacceptable fred baba, thank you very much for joining us. Thank you very much for having me. Sharing your story. Up next, we will ask Venture Capitalist Elliott Robinson why he thinks Cloud Companies will be a big winner in a post coronavirus world. Well be right back. We have breaking news on macys Courtney Reagan with the story hi there. Yeah, so macys putting out the details for the financing theyve been working to secure so there is two main parts to this they have secured 1. 3 billion in Debt Financing that ended up being 8. 375 for Senior Security notes as well as a little more than 3. 1 billion in an asset based Credit Agreement with the closings of the financing, they expect to have sufficient liquidity to address the needs of the business including funding operations and the purchase of new inventory for upcoming merchandise seasons. Theyre resolving the accrued payables obligations and repaying some upcoming debt maturities in fiscal 2020 and fiscal 2021. Shares are higher by more than 7 on this news. Again, we had a lot of questions about what was going to happen to many retailers including those in the Department Store space and macys specially with some of the debt obligations were going to talk about this and more with macys c. E. O. Jeff gannette in an exclusive interview. We look forward it to immense tyly time for a cnbc update heres your cnbc news update at this hour in an Oval Office Meeting with Law Enforcement officials around the country, President Trump said his administration is looking in various ideas for Police Reform but rejected any banding of police departments. Sometimes you see some recent things 99. 9 but lets go with 99 of them are great, great people and theyve done jobs at a record setting the attorney general william barr says fox news he wont try to extradite Prince Andrew to the u. S. For the Jeffrey Epstein investigation. But nbc news does report federal prosecutors have formally asked through the British Government to talk to him there are racial protests in the u. S. City but in the last hour, prosecutors said they wont charge thousands of people accused of curfew violations or disobeying Police Orders to disperse and there are long lines outside of a Houston Church as mourners wait to view George Floyds coffin before tomorrows private funeral. Sayer yash sarah, thank you. Up next, the path forward for Venture Capital. Well talk to Elliott Robinson about what he sees for tech in the coronavirureves cory closing bell will be right back oing to place it . Not until im sure. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. 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. vo at whether on the track,that exhor the everyday drive. Ty, today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. Audi at your door. The epicenter of the countrys coronavirus outbreak, new york city. It begins the phase one reopening plan today the pandemic has had a profound impact on the way we do business including an acceleration to the cloud to Remote Services and to e commerce. 94 of Enterprises Use at least one Cloud Service today. The bessemer emerging cloud index includes names like adobe and zoom up now more than 38 for the year while the s p 500 is flat which season aachievement by itself joining us now is Elliott Robinson, partner at Bessemer Venture Partners thank you for joining us before we get into the cloud plays right now, just in general, as we have seen the u. S. Start its reopening, what is your industry seeing . For sure, thats great question you know, when march hit and coronavirus really took a hold, one of the toughest things Venture Capital is we spend a lot of time with management teams, with founders, with customers. And it is a facetoface interaction. When coronavirus hit and went to shelter in place and work from home, all that got disrupted f youre talking to a company over a couple months or even a year tracking it, perhaps there is a way you can invest in that new opportunity. Where i sit on the growth stage, even if if i knew a company and cutting checks larger than the early stage commitment of 30 million, 40 million, 50 million, shelter in place and coronavirus slowed deal pace i think if you look back to march, april, may, it is different than in some time. There are opportunities that are coming out of q2, june, july, and for the rest of the summer what about valuations weve seen a vshape recovery and publicly listed company valuations, s p 500 back to positive territory now something similar for private market valuations . Yeah. So were in bate of a weird time it reminds me of my venture career back during the last economic crash flat is the new up so a lot of companies that are out naturally in the market trying to raise for new Venture Capital funds or Growth Equity funds, you know, where i focus many i time, were going back to transaction thats were, you know, consummated six, nine, 12 months ago and the valuation markets are the opening conversation point of where new transactions are taking place. So for the traditional business that doesnt have a tail wind or head wind from coronavirus, theyre seeing flat rounds but the Cloud Software and techu know, bit of a tail wind, theyre seeing uprounds. No doubt. Weve seen the resilience through the pandemic where do you find growth though in this business we know about microsoft. We know about amazon where also are you betting in terms of cloud outperformance . If you take a step back and look at our bessemer state of the cloud report we put out in april, there are two predictions i talked about that im really excited about. One, you know, we talked about distributed teams and that trend of remote work thats something that were still really excited about one of our Portfolio Companies is doing an excellent job of helping korn helping corporations figure throughout are a lot of people out of work, really interesting talent spread across the country if not the globe how i do manage onboarding them, dealing with payroll, dealing with health care, challenges and benefits challenges as we bring those people on. So a company like papaya global is seeing a tail went. A company like zoom, you know, we talked about this in january when you had me on everyone is working from home. Im talking to you guys on zoom. They have one of the best quarters in Enterprise Software history. You know, we also talk about enterprise automation at scale one of the most exciting areas that well get a chance to talk to you a bit later. Elliott, we look forward to that next conversation. Joinings one. Still to come, a travel take off, the sector seeing a remarkable rebound from its late march lows ldis ve stocks that have doubled since then. Whatd we decide on the flyers again . Uh, fifteen minutes could save you 15 or more on car insurance. I think were gonna swap over to over seventyfive years of savings and service. What, were just gonna swap over . Yep. Pump the breaks on this, swap it over to that. Pump the breaks, and, uh, swap over . Thats right. Instead of all this that ive already . Yeah. What are we gonna do with these . Keep it at your desk, and save it for next time. Geico. Over 75 years of savings and service. And their financial wellbeing. Since our beginning, our business has been people. Its evident in good times, with decisions focused on the longterm. 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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. A number of hardhit stocks and sectors have seen remarkable moves higher as the country slowly get back to business. Five travel names have rallied 100 off their 52week low first, theater chains also make ago significant recoveries from the market Julia Boorstin with that story cimemark shares up 11. 5 as well as amc on pace for best ever gains, preannounced results of debt restructuring last week. That stock up 230 from its lows. Though now down 11 year to date cinemark shares up 1240 from 240 saying it has the means to survive even if theaters are closed for the remainder of the year though theyre scheduled to reopen in midjuly our analyst saying it is wellpositioned because of its available liquidity but does warn not to normalize until the end of next year thank you, julia, very much now a handful of travel stocks rallying in a big way. Now with those names and whats driving some of the moves, hey, seema. Hey, equity expected jobs lit a fire in travel stocks. Investors hope reopening the economy will bring back travel, especially Domestic Travel which is picking up. From the march lows marriott and hilton seen the stocks double. Cruise lines are burning cash. That hasnt stopped the rally 200 or more from their respective 52 week lows. Now hoping to get travellers sailing by august. I hear a meeting is planned for later this week so two sides can formulate a working timeline. Seema, thank you. I would add to all those play s about reopening, the overall market which went positive, guys, for the year today, s p 500, the nasdaq, closing at record high. How about hertz, the carrental site, this stock has exploded since the company declared bankruptcy at the end of may the move today up 115 , mike, whats up with that. I referred earlier to the pockets of over activity this is one of those areas Chesapeake Energy is another one, it reported after close it is going to report bankruptcy. Other companies doing debt restructuring have been caught up on this on one level equity in a bank rumsy occasionally could have value after the company reemerge from bankruptcy but its rare. What they are is call options on survival or existence of equity value down the road. So you have to have one eye on that type of activity going on with apparently inexperienced traders really enjoying this phase of the market. On the other side saying, look, even the broad market is acting well with very broad rallies and theres big monies to get more exposure both those things are happening. Go for those call option stocks as a say. Boeing up 12 today, up 60 just in the move june extraordinary moves. Tomorrow dont miss our exclusive interview with Morgan Stanley Ceo James Gorman at 3 00 p. M. And at 4 00 p. M. We have macys Ceo Jeff Gennette the Company Announcing 4. 5 million of financing, stocks up 50 in the last five days great time to discuss that with macys i mentioned as well Morgan Stanley almost positive year to date only down one percent check in with gorman i think macys is important because they said they will make it through this year and next with business at stand still an the company reporting 1 billion operating loss in the last quarter their troubles are far from over but clearly they have the liquidity. Thank you to jay powell and everyone else for raising money. Fast money starts now im melissa lee. Today we have trader line up coming up on fast. Boeing soaring sky high. This monster move could be telling the real story about where the market is headed that in moments. Plus zooming higher. Big news out of china, shares from tesla