This is. Semisurge, theyre leading us to new highs. Yeah, and its been pretty interesting, scott, because this has been a much broader rally than i think a lot of the folks have talked about over the last couple of weeks, and part of it is its the semiconductors, thats one of the areas everybody looks at the big 5 theyre not looking at some of these other names. When you look at the smh, and you see where its trading now and near all time highs, it gives you a little bit of a sense of how much activity there is there, and continues to be there. We have seen so much in the unusual options side of things its been incredible across just about every name that you can imagine. So it certainly does stand out to me that thats been performing, along with biotech to the upside, and both of those, oftentimes youre going to see most of those names in the nasdaq, and thats part of the reason youre seeing some of this outperformance from the nasdaq is this the week that growth took the market back, so to speak . Growth is outperformed im wondering if this is the week we stop talking about the resurgence of the value trade. Yeah, so following the massive down day last week, this was the week that the bears had an opportunity to retake control, and that didnt happen. Not only did they not take control, but we had this resurgence in the big Growth Stocks and it brought in doulbt we talk sometimes about the triple cues and qqew, thats an etf that looks at tech, at the nasdaq, but then equal weights, all of the names both of them, both of them are up 4. 3 this week, and thats in addition to the big guys getting it done. Netflix had a 7 week. Amazon had a 4 week nvidia, up 5 1 2 . Pennies away from all time highs. I think thats really whats happening and as we discussed yesterday, i think where the puck is going is that it broadens out away from just tech growth and lets take a look at the xpi which we talked about yesterday, equal weight biotech. Thats up 2 today, all time record high. Take a look at the ibb, up 1 pn. 7 . This is what i think is now going to happen in addition to the spotify vertical move, the shopify of vertical move were going to see that broaden out to health care plays that have growth. Were going to see that broaden out to other consumer plays that have growth, not just tech, and i think thats what you want to see in the market now. Im perfectly okay with that. Forgive me for stepping on you there. Im going to give you names and tell you what the performances have been. Let me get to Steve Liesman with breaking news, and well get back to the conversation hi, steve. Hey, scott, some Important Information about banks and the Federal Reserve and stress testing. The fed is adding or has added an additional stress test scenario for covid19. Its going to test the capital distributions, shares and dividends against a vshaped recovery, a ushaped recovery, and a wshaped recovery, in other words, a resurgence of the virus. Its not going to affect Capital Requirements for the games the Capital Requirement will be set according to the regular february 2020 scenario that was put out. But the Share Repurchases and dividends will be subject and used to inform the feds approval of Share Repurchase and dividends. Now, youll know most banks have suspended Share Repurchases. Its the dividend that might have some risk when the results are announced june 25th. I dont know the extent to which they might be in danger. It is some risk for the banks that they didnt pass these uv and w shaped recoveries that the fed is stress testing. Well follow it thats Steve Liesman lets get back to our conversation i told you, ill give you ideas of how well the semistock, and broadly tech have done this week alone, okay. 13 1 2, nxp, tardon, applied materials, all with good gains if you brought it out month to date, nxp is up 25 . Gains of 20 from all of the names that i mentioned what does it say about where we are now in the market. I think this is still in response to what we heard from the fed last week, scott i think that the anticipation of significant monetary and fiscal stimulus was leading us to expect or the market to expect based on the way it was trading that we were going to have a massive resurgence in gdp. It supports what we are calling quote unquote the value sectors. You take financials off the table now, given that were talking about yield curve targeting, but to joshs point, its not just about tech, but its probably still about a broader growth resurgence because in a low growth environment, you Want Companies that have a clear competitive advantage. You Want Companies that are innovative and that have strong Balance Sheets and i think this return to tech this week is an indication that we believe we are entering into a period of economic improvement but perhaps not a juiced economic environment that we were trading on over the course of the last month or so in some of these value sectors. Lets make, kevin, the analogy to tv. This is a rerun. I mean, were watching a rerun of a show we have liked before this is growth tech coming back into play. Do you think this is the week that does it, puts this value trade to rest . Because it sure feels like it. If you look at the performance of not only the semis, but the big faang stocks, microsoft 5 1 2, amazon, 5 1 2, facebook, 5. Alphabet, 2, and apple 4 1 2, knocking on a new high again yeah, at the beginning of this trend, it was all about the covid idea that this somehow is going to be a shortterm boast of technologies, but thats not whats happening i think the market is anticipating what i call america 2. 0, and what its going to look like in 18 to 24 months, an extraordinarily productive economy, full of margin enhancement, because of technology tools, a move into 5g, which accelerates all kinds of enterprise opportunities. You know, i try to temper my enthusiasm and hold back, as i buy these names more and more and more at valuations that you got to hold your nose, but the market is right. Its always right, and this trade isnt going to stop. It has nothing to do anymore with covid it has to do with the market figuring out, america 2. 0 is a pretty darn good place to invest your money amy, the other trade, so to speak, the reopen trade after the initial pop that was easy, right, if you got in it, right, its too hard. Its hard, right youre going to have to play every single up and down of the virus, a headline here, a headline there, the growth trade has worked a lot of those stocks people have said were built for the kind of moment were in. Why make it more difficult on yourself as an investor. Well, i think thats whats happening. I think the liquidity is certainly going into the Growth Stocks there probably not going to miss, i think is what people are saying, although expectations for a lot of them have gotten very high. So we think that is the easy trade right now. Im not sure its the right trade for the longterm. I think some of these valuations are out of hand. Theyre being driven by fed liquidity, and i think theyre going to be disappointing. Like which ones when you say that, what kinds of stocks are you looking at . So we have been trimming microsoft. I talked about it last time i was on the show as well. E even though its at an all time high, its performing in line to slightly below the market for the past month trading at ten times sales, a 1. 5 trillion market cap expectations have not come down at all earnings are expected to be up 20 this year, 10 next year if we do end up in this very low growth world, which will support low Interest Rates and therefore support the multiple, im not sure theyre going to hit their numbers, and a stock like that cannot afford to miss numbers at this point. You think microsoft is overvalued here. I do. Its a Wonderful Company i think they have done a lot of things right but its easy at a time of change to extrapolate growth and thats probably just not going to happen. Pete . What do we have in the steel cage this is a steel cage match now she just called one of your favorite stocks overvalued you love microsoft, pete i do. I do but you know what, i also trimmed and i actually trimmed this morning, but i still hold a majority of what i have. Oh, you trimmed microsoft, too . I did tell me more, pete. Thats not tell me more. Thats not to say that i think that microsoft isnt doing everything right i think they are, but they have had an extraordinary move to e thesidth upside this held up better than any stock in the entire market when we went to the downside. Its been on a great path to the upside, i think microsoft, i think it is maybe a little bit in front of itself thats not to say why i only trimmed, i didnt sell it. I still think there is up side to this stock. I think theyre going to be able to surprise people when the time comes, when they deliver on some of the numbers that have happened, when you look at what has gone on throughout the covid situation, microsoft has been one of the goto names i think theres a lot of reasons to stay excited about microsoft. This is another one of these names where there are so many verticals for them to make money. I think thats part of the story as well. When you look at teams, you look at other issues. Dont try and save it, man. Dont try and save the situation, okay . Dont try and save. You have to be disciplined, take one off once in a while so you have given us the next leg of our conversation because i didnt know that you had trimmed that, and i didnt know that amy thought that microsoft was over valued, where this is now i put this in a greater context. I have joe telling me he took profits at amazon, brynn telling me she took profits in apple, sacrilegious to many josh brown, what do you take from that . What do you tell people who have been in these stocks who still think this is the place to be, yet they have seen the run up and they say you know what, now its time to take something off the table. If you have a stock that goes up 75 , and the overall market goes up 40 , then by definition, the longer you let that run on without trimming some of your position, youre just becoming more and more exposed to one particular company, and in some cases, youre turning the entire asset class in your portfolio into a much narrower proposition. So i think, like, even the best performing stocks throughout history, people that manage to hold on to them, they have to look at these things in the context of the rest of the portfolio, and like their overall life situation how much exposure do you want to have to one company, given the fact that literally anything can happen to any company in any day. I dont think you need to have a fundamental change of opinion on apple or microsoft, if its a 1. 5 trillion stock and you own it in lots of the mutual funds you own and you own the stock as an overweight on top of that, and it grows to be so big, you just have to ask yourself, am i overexposed, even if i love the company. I think what pete said is right. This is not just about how you feel about microsofts prospects Going Forward, this is about what is your exposure as an investor i dont think we need to make more of it than that i can see both sides. My point is, josh, there are a lot of places you could look in the market to trim, to take some profits, i have had multiple people of our Investment Committee go to the best and the brightest, right, the ones in the lights are the ones theyre looking at. Again, i dont think you have to have a change of view on how great microsoft is we all agree its great. We agree the ceo is going a great job. You can make the argument of taking 10 of your position off the table because the stock is up so much, and it doesnt have to be more complex than that. Kevin oleary. You know, i would make a point about microsoft thats unique it is the only stock i can find that finds itself in growth indices, and im an indexer, so im rules based. I dont have an emotional opinion, but i can tell you its the only name that sits in a really boring index that is a dividend play like oh, usa but its the number two holding in ogig, which is a growth mandate. Show me a stock that does both you cant find one, and thats why its an overweight, and i havent sold a dime of it, and im going to stay long right through the next two years who said apple, josh, you said apple. Yeah, i think to kevins point, we have this class of corporation in america right now, maybe unprecedented in history, every economics textbook you came across in school tells you that companies should not be able to growth 20 a year with 25 Profit Margins for ten years without new competitors coming in and competing away either the Growth Opportunity or the margin opportunity and in most cases throughout history, both thats not happening with microsoft or with apple, and so these are companies that can invest extraordinary amounts in r and d, keeping them ahead of the pack they can pay back tons of capital to shareholders in the form of buy backs and dividends. They can raise capx budgets each year, continue to hire people, and they manage despite how big they have gotten to post Growth Numbers that are ahead of the overall s p 500s growth now, again, economics tells you these companies shouldnt exist, and yet they do. And i said this yesterday, tell me something thats all of a sudden going to change that, and ill be interested to hear it. I cant think of anything. Shannon, you want to take the other side look what these guys have done look what they did to microsoft and apple. What are they doing . The dow has gone negative, the s p has gone negative. The nasdaq might go negative, microsoft is negative, apple is negative man, you got a lot of angry people watching right now, shannon. I actually dont think this is a negative sign i mean, to joshs point earlier, if you think that this trade around growth, around tech, we talked about the broadening out of the semitrade, for instance, if you think that were actually entering into a new phase of, you know, potential Margin Expansion and hopefully some earnings growth, and you see that you have heavy weights and they become outside positions in your portfolio, you should be, if youre feeling chicago, you should be giving those and companies that have not appreciated to the same extent we talked about this as a threat to tech over the last month or so, that we were going tosee tech sales into value. Were seeing a reconfiguration of a repopulation of your Tech Health Care growth exposure into names that had company or institutional buying i dont see it as a negative to trim Something Like microsoft. Im not there yet. I love that stock, and i love the different components of their business but i actually dont think this is a negative i think its a positive that were optimistic about other places in the portfolio. By the way, with apple, guys, amy, new street high by the way. Price started today on apple 405 from 370 and thats a reiteration of a buy over at jeffreys for a variety of reasons that you can figure out what they are, Worldwide Developers conference is next week youre going to get optimism ahead of that, amy and lets put this in perspective. Apple and microsoft together have 3 trillion in market cap our entire economy is about 20 trillion, so youre saying that those two companies together are 15 , represent 15 of our entire economy. The numbers have gotten so big, i think theyre both excellent companies, the question is the valuation appropriate, and has it been somewhat distorted by all this liquidity that we have gotten from the fed and congress that sort of is where i would say, no one is questioning whether the companies are great. Im a little more comfortable with apple at this point because earnings estimates have actually come down to a degree where even though its intensive relative to itself, its expensive based on earnings that have at least moderated somewhat i feel like in microsofts case, yes, they have lots of shots on gold, and theyre really well positioned for this economy Going Forward but the earnings have not come down significantly. 90 of the sales side analysts are recommending it, and it has not missed a beat. I think theres a little more risk there. Kevin, im just kidding anyway about these moves in the market, there are some headlines, by the way, that im sure were working to confirm that apple may close some of its u. S. Stores again because of these speck were seeing because of covid19, so thats probably having a more profound impact, no offense to the Investment Committee. But we have seen apple and microsoft and some of these tech names go negative, along with the Broader Market by the way, you look up, the dow is now down by 155 points, apple, microsoft, obviously playing a role s p is down 16 1 2 points, there you go what was green across the board is suddenly negative therein lies the risk, gang of, you know, pete, of optimism about reopening going in the opposite direction because of these speck were seeing in some big states, right, florida and texas among them no doubt about it, scott, and you know what, its reflected right into the volatility index that we talk about all the time. I bring up this volatility index all the time because of the fact that i think its far more accurate, years ago people started saying you know what, that doesnt work anymore, yes, it does. It gives you a great insight into the risks on the market on a daytoday basis and we were looking at the volatility index spiked up to 44 on the big down day, and we pulled all the way back, and we were back into the actually high 20s so here we are now at 32, call it, give or take i cant see it right now with the push to the downside, it makes total sense take a look at the intraday movement, i think thats the most important thing that i think sometimes gets lost in this too the market was up 250 points, whatever the case may be, it may have been down 250 before that move there are significant moves going on intraday within this marketplace each and every day that are absolutely extraordinary. Its something we havent seen before and ill point it out one last time. Again, the volumes, scott, have been absolutely off the charts the last two days we slowed down a little bit. The market has turned in like the last, you know, figuratively 30 seconds, not 30 seconds but you get my point were having a nice conversation here at the beginning of our program about all of these tech stocks that are doing so well, whether its the chips or faangs and tech is at a high, and you get a negative headline, again, that this is ive seen this headline on twitter, im sure our news desk is working to confirm it, and well have our own reporting at it, that seems to be at play why the market has turned decidedly negative in seconds, youre at the lows of the day, across the board, kevin, included for the nasdaq, dow down 175, kev. Yeah, i would blame it on the idea i mean, i saw the result in miami of opening up the beaches. I was there when that occurred last week or two weeks ago now and you know, a million two people kroucrowded out and of cs theyre going to spike to 3,000 cases, et cetera lincoln road, the apple story is my guess they will close that. In miami youre talking about. Yeah, im talking about miami, but if you think about the overall tone of the market regarding volatility brought by cases spiking, et cetera, if you believe as i do the therapeutics will advance over the next 18 months and we will have some kind of a cure in the next 18 months, the big picture means that the bull markets in tact those that have called it against it saying this pandemic is going to change the tone and nature of the s ps margins and potential Margin Expansion, they have been wrong, and they have had their heads handed to them on a platter i really really think the country will learn from this and be a much more productive place. And any day that youre going to get spiking, you know, its going to be new york, florida, texas, california, that everybody is going to have their eyeballs on. You know where else theyre going to have their eyeballs on. A move of 400 points in either direction. Forgive me, kevin, im sorry, im looking at a tweet from dr. Scott gottlieb, another state, arizona which we have talked about a lot, not only on this program but our prime time special, arizona is entering a period of steep growth in its covid epidemic with Population Based mitigation off the table, dialing back or closings it will face challenges, they were debating masks this week as simple and limited as that tool is should raise concerns you have an ongoing debate in this country largely along political lines. Its such a partisan issue over masks. Dr. Gottlieb is talking about whats happening in arizona. It goes to the point i was making at the beginning of the show, shannon, about these reopening stocks, the so called epicenter stocks thats why its so difficult because theres going to be headlines. I said it at the top of the show, positive and negative, whereas these other stocks, even though theyre pulling back today in the overall pull back, the apples, the microsofts, the googles and the amazons, et cetera the adobes and some of these chips, thats where youre going to get the growth in an environment thats barely growing. How can you extrapolate what your expectations are for Free Cash Flow when you dont know if those businesses are going to be open at 25 capacity or 100 capacity in three months, and you know, to the point that you have been making on your evening program, you know, this isnt a second wave in some of these places, its the same wave, and so for many investors and looking back prior to covid, you know, looking at things that could have moved into this covid period and still been competitive, still been able to increase their Free Cash Flow, maintain their dividend, maintain their innovation, and their spending on r and d, and really play to what the new world will be, it actually doesnt have to be entirely different than it was precovid, but there are going to be things that linger and i think the Growth Companies are just better situated right now to be able to find ways to still survive and thrive, and i think, again, you go into a much more shorter term trading mentality when youre trying to find out how to play these headlines. You know, then you have, you know, youve got this call on disney today, by the way, which is, you know, the price target goes up to 118 over at wells fargo. You know, a lot of these stocks play, josh, right into the reopening narrative. Headline, i dont know what disney is doing right this second i havent seen it. Just the mere fact that you have negativity around the reopen cant be good for that stock its emblematic. Disney is one of those emblematicstocks of a reopen trade, josh, right, you get a positive headline, disney is likely to be up. You get a negative headline, disney is likely to be down and it may be down steeper than some of the others for obvious reasons. In so many ways, disney is emblematic of this tug of war because they need sports to come back to feed espn, basically espn, i watched it the other day by accident. I think they had a cooking show on i dont know whats going on with the channel the parks are hugely important, not just as a contributor to earnings and revenue, but as part of the magic that makes all the other parts of the company hum. They dont have that either. Disney plus probably has helped the stock from a valuation standpoint its probably why its over 100 instead of under 100 because they have that app its not enough. I agree with you, and i think the other part of that is disney like most of our economy requires a lot of Consumer Spending we have 20 1 2 Million People still on unemployment. The end of july, the extraordinary benefit of 600 is going to go away congress has not yet stepped up to the plate to replace that we dont know if they will extend it. We dont know if theyll come in with a lower number or if they cant get along and nothing at all happens. That stuff is going to be very important for consumer related stocks like disney not just the virus cases and not just the reopening of properties but we have a very consumerreliant economy, and i still dont think we have enough answers about whats going to happen with employment even. Yeah. This past week was the slowest pace of people getting rehired back its nice that its going in the right direction. Its desecelerating. These apparent closings of apple stores in arizona, to dr. Gottliebs point about whats happening on the ground there and florida has seen a spike in cases nearly every day this week. The dow down 200 points, s p 500 down more than 1 2 of 1 a third down for the nasdaq, not as bad but the best of the three major averages as the day started to unfold. Lets get more on the disney call from rahel solomon. Theyre confident and bullish on disney plus which josh brown alluded to they see quite a bit of concern. Theyve raised their price target 107 to 118 which is where it had been trading earlier in the session, now off 1 1 2 . Some o. Concer some of the concerns, with these skeptical headlines coming out of coronavirus, when that will happen is sun clear, certainly not until a vaccine breakthrough comes through. Another thing they said, scott, production shut downs really create some concern for them saying that, you know, with a fourmonth shut down, that implies some 4 to 5 billion of content that has been halted or slowed and saying that disney without content is like a ferrari without gas. They did raise their price target certainly not a glowing report by any stretch of the imagination, scott. The stock is trading at right now, pull up disney again, guys, if you would, please theyre constructive at disney, 100 or below. Thats the line in the sand, pete to be bullish from here, the world has to have a clearer path towards its reopen and i think that makes a lot of sense we talked about it, and josh brought up espn. You talk about espn, thats content. Theres content from the studios, thats an issue, and the parks. The combination makes for a lot of big question marks without a lot of answers, quite frankly, because as were watching this whole thing progress right in front of us and talking about apple reducing some of their stores that have been opened up again, so thats something thats going to be weighing on disney as well, and its going to weigh on disney for a while obviously they have had adds, espn plus or disney plus, they have done a great job. Its going take a lot more if it got down there, i would add. I think im comfortable selling options right on top of where it is, and the reason that i would do that is i dont see the up side i think there are so many questions unanswered that i dont see the up side explosive in terms of a move to the up side, so id be very satisfied with the implied volatilities trading where they are this is a great example of what i try to do with any stock i own, which is use the options which weve got inflated implied volatilities and thats exactly what were seeing in names like disney, apple and facebook and some of the rest, you can get incredible premiums and thats a way to mitigate your way and figure out your way through the markets. We dont know each and every day, we get an up or down Movement Based on the coronavirus. One way or the other based on some new stat. Under those circumstances youve got to be able to react and trade around that, and thats how im doing it. Im going to get back to rahel in a second, lets go to josh lipman. I have news from apple its going to temporarily close stores due to covid19 speikes Eleven Stores in florida, north carolina, South Carolina and arizona. That means 200 stores of the 271 stores would still remain open here apple in total operates 511 stores around the world. Remember, apple always did emphasize as it reopened the stores that a company would file the data, follow the guidance of experts and if warranted would close stores again they are doing so now. We take this step with an abundance of caution as we closely monitor the situation, and we look forward to having our teams and customers back as soon as possible scott, back to you. Appreciate it thats josh lipton, reporting from the french countryside today from his shot. Kevin oleary, you started a new position in apple. Yep, well, i generally do buy it before the big conference its something i have been doing for years. I want to point out to people, apple is not a growth stock anymore. I dont know why people think it is to me, its an infrastructure stock, and if i want to take a position on the transition to 5g over the next two years, its a name i think i want to own i dont have any expectations for it in terms of hyper growth at all i cant buy huawei, which i think is the number one name to own for 5g, for a million reasons, i cant buy huawei, but i know apple will benefit from 5g, and i think theyve done a great job in Getting Services to be bigger each quarter and the conference is coming i think it will be a good trade. Its a tough call on growth. And whether they close 50 of their stores, who cares. If people want to own the 5g phone, theyre going to buy it online like most people are doing with products anyways. Let me button up the conversation on disney do we still have rahel she with us. Im here. Lets pull up disney, part of the issue, youre dealing with disney, ta lot of the good news is the stock is up 20 in the past three months, so much optimism about disney plus as you know, a lot of hthat has to be in there. Theres a lot of optimism to be had the conversation about the streaming wars, its a false narrative, dont buy it. In fact, you should buy disney, you should buy amazon and you should by netflix. A lot may have been built in but some analysts on the street think theres more to go. Appreciate it its a show me story, perhaps, as you think about how the reopen is going to go from here. Lets take a quick break well talk slack shares, lower today on the downgrade josh owns that stock, as you know, well get his thoughts and anyocaade next, d u n always watch or listen live on the go, on the cnbc app, were back after this. Welcome back, we have turned decidedly red. Dow is down 150. Lets get the headlines from sue hererra heres whats happening this hour. Florida is reporting a Record Number of new confirmed cases of the coronavirus. The Health Department has counted more than 3,800 infections and 43 more deaths just since yesterday in louisville, the Police Department is beginning the process of firing detective brett hackenson, one of the three officers involved in the Fatal Shooting of Breonna Taylor after entering her home with a no knock warrant knnear tucson, the bush wildfire is the fifth largest in arizona history. Hot, dry, conditions are fanning more than a dozen blazes across the southwest and the west. Deprived baseball fans can now look to japan. The season began there today nobody in the stands, but instead, there were pictures of fans that were added behind the plate and down the baselines youre up today, thats the news upat a time this hour strange times indeed, scott. Yeah, im wondering what a seminole market may be if you get more headlines regarding sports in the u. S. Its going to be interesting and the baseball owners have been decidedly absent in the discussion about how to restart that game. Its going to be interesting to see what happens as they go down the line. Im just thinking you had, you know, much more strict mitigation efforts in the nations that are having their sports back now, than you did here in the u. S. Were seeing spikes in florida at a time where the nba is having its bubble strategy of going down i just wonder what the Market Reaction would be if you had a headline that said nba decides not to go with season. Fauci throwing cold water, dr. Fauci to be respectful, dr. Fauci throwing cold water on the potential football season. I think its something to think about down the road. That could be a big Inflection Point for the market because of the economic consequences, because of the social consequences and i think also when we look at the numbers in florida and in california, and the move by the governor yesterday to mandate masks, we are starting to see the market pay more attention to those states and the reopening efforts. And whether or not those efforts are going to be able to conti e continue. Yeah, appreciate the headlines, sue, thank you. Lets talk about another big call today because it directly impacts a stock owned by one member of our Investment Committee. Slack cut to sell. This is at goldman, josh they say increased competition with Microsoft Teams is one of the reasons i said, you own it, they maintain their 30 price target what do you make of this call on slack . I read it because, you know, when you own a stock, you should understand what the other side, you know, what the bear case is, but theres nothing in here. This is the same stuff analysts were saying when the stuck was 15 so now its 30 you know, i really dont think theres anything interesting in here i think like one of the thorns in the side of this stock is that came public via direct list and not the traditional ipo. There is no banker on wall street that got paid a couple hundred Million Dollars for working with the company, and that will be a problem until its not spotify had the same situation for the first couple of years of its company, had no champions. And the stock is up 100 ove the last month, and that could be the case here, not that it will double in a month, but ultimately it wont matter i think the market has zoom and slack backwards. And im not trying to talk down zoom pause i own that stock, too, for a long time zoom has a multiple, a pricetosales multiple of 80 times, which is absolutely insane both these companies trailing 12 months did about 700 million. Theyre very similar in terms of revenue size they act like zoom has this lock in, but if kevin oleary calls me, and he says, oh, by the way, next week, we have to have a virtual meeting, lets do it on google hangouts, i would be like, all right, its like coke or pepsi slack has the true lockin if your company is on slack, thats it, there isnt another place to have these discussions. Im not sure why slack selling at 20 times sales, and zoom selling at 80 times sales, the only thing i have seen pointed out is that zoom does most of its capx in r and d and china. Slack trying to do that in the United States with american paid engineers and so they dont have positive Free Cash Flow, they spent a lot more money than zoom spends on r and d, if thats the only reason for this massive disparity, it doesnt make a lot of sense to me. And ill tell you, shannon, you can also say, i own cisco because of web x, speaking of competition to zoom. Right, i own cisco, but i also own microsoft i think this is similar to the content conversation you briefly brought up i think theres several winners here theres a lot of companies that need, you know, digital interface. Theres a lot of ways to do it, and i do understand theres a captive nature to it, but you know, web x is great because it is part of a cisco suite, and so you can utilize it, but i also use zoom there are other ways theres competitive aspects to this i think when were thinking about this digitization of the workplace, i think theres going to be a number of different win skpe ers and its going to come down to partnership with companies learning to be digital. The oxy and eog, they got upgraded to buy at sun trust shannon, you own eog, amy, you own eog, lets hear from you first, amy, on that, which by the way, you have been adding to yes, so we added to eog a couple of months ago at the depth of the energies demise when the futures contract went negative we think eog is best in class, we think theyre doing a lot of the right things with shutting in their production. Stocks still where it was at this time last year. We think theres a good opportunity. Quick from you . We own three energy stocks, eog is one of them we think they are going to benefit. They have great Capital Expenditure discipline, and thats a theme throughout our three energy holdings. As you know, much of America Today observing juneteenth, which marks the end of slavery in the United States all day right here on cnbc, were looking at what companies are doing, and the big challenges minorities face in the workplace, we take a closer look at the divide in the gig economy. Uber and lyft have made juneteenth an official holiday for employees, but that does not apply for the thousands of drivers who operate as independent contractors, a large proportion of them black in recent weeks, and i dont want to take away from this, the ride sharing companies, they have spoken out on Racial Injustice and followed up with actions but of course racial inequality goes far deeper and the divide is on display in the gig economy. According to ubers most recent diversity and inclusion report, the proportion of black leadership sits at 3. 3 , and among fulltime employees its at about 9 but black uber drivers who according to another survey make up 18 of totally drivers, and they dont get the day off unless they choose not to work. So today a group of gig economy workers, theyre circulating a petition that has more than 250 signatures to executives, not just at uber and lyft but door dash, instacart and gig economies, demanding sick lever, health insurance, work comp and what they say is meaningful representation for black gig workers. This comes as the classification continues to be a heated topic, not just in california but around the country and a significant richk, and remember, other states are considering gig legislation of their own back to you, scott. Appreciate that very much. Our experts are ready to answer your questions, and you can still reach us at cnbc. Com halftime and tweet us as you know. Were back in two minutes. Lets answer some of your questions now. Josh, from haresh, is now a good time to go long shake shack . Its both a good time to go long shake shack and to visit your local location, and try the chicken sandwich look, this is a 2. 4 billion when isnt it lets be honest. Its a 2. 4 billion market cap. I think theres a lot of room. One thing real quick, last week they announced the entire board of directors is going to take the remaining compensation through the First Quarter of next year in all stock, 100 stock, no cash so when you see things like that, as an owner of a business, when i see other Business Owners and directors doing that, it makes me feel really good about my investment, so im long, and i would be a buyer. Good stuff. Pete, to you from brendan in australia. Thanks for the question. What are your thoughts on Capital One Financial . Yeah, i love this name, scott, i own the calls and the stock so i was doubly long at one point in time. Got out of the calls, continue to own the stock i like the fact that they have so much exposure to different parts of the financial world and services and all the credit cards, it gives you a lot of diversity in a company that has a great balance sheet. I like it, im going to continue to hold on to it. Shan from viba, what about alibaba, is it a buy here . Yes, we bought this in early april, still think its a buy. Could be a little choppy as we deal with political overhang and a slower Chinese Consumer recovery but the Cloud Business is going to continue to drive interest in this stock Going Forward. Were all over the globe today, amy, we have a question from russell in new zealand, can i get your opinion on echo lab we like e coe laco lab, perf year to date, 8 , versus the sector down 6 they just completed a successful spinoff of their upstream energy business, kpachampion x, its nt cheap but a good longterm hold. Mr. Wonderful, paul from state side, would you recommend buying crowd strike . Yes, i own crowd strike in a growth index but i also own it personally this is a u. Must own name going into an election psycycle. Whoever loses will blame the mee russians this time its one of the goto names anybody looking in america 2. 0 yes, yes, yes, own it now right through january. Well bounce for a couple minutes, come back and find out how future traders are positioning themtselves for the weekend ahead. Well do that in a minute and a half [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. Yeah yyeah yeah hey, hey 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. Welcome back to the halftime futures now appear we will announced it would close some of its stores in florida and the carolinas one trader betting on even more upside lets bring in jim urio. Hes at Institutional Services these stocks would bid lower, and as soon as you saw microsoft and apple and amazon, some of these other names, jimmy, go too low, according to some, they jumped in. When these headlines hit about apple Stores Closing and cases rising, in a Square Market where we dont have any information, it tends to get more squared first of all, the trade for me and ill tell you why, too market trade is back up above 31, so a stopin to buy the s p at the mini. You want to see a little strength first buy it at 104, which is above where we are now with a target of 31. 34 when that news hit, the markets job is to tend to overreact, and you have an shuts convoluted thread, and an economy thats making a comeback, albeit a slow one. Jimmy, we appreciate it have a good weekend. Jim iurio with that report pete has final trades, straight ahead. Where will you go first . Wherever you may go, lexus will welcome you back with exceptional offers on exceptional vehicles. Get zero percent financing and make no payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. Experience amazing yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Reminder, kevin oleery is going to do a live chat next wednesday at 2 00 p. M. Got a money dispute . Ask kevin. Go to cnbc. Com youtubelive chewy, online pet sales, thats all you need to know. Theyve hit already four times this month and its been incredible tod 7500 of those calls getting bought today it was 36 earlier, went to 48 today and its over 50 right now. Tencent music. Really big buying there as well, scott. Sorry to cut you off. Final trade salesforce. Amy, give me a name regeneron docusign. Thanks, everybody kelly . They always sneak it in hi, scott, hi, everybody its from reopening to reclosin this afternoon apple announces its selliclosi some stores. The man behind the call joins us to break it down. And the math of staying open well speak to a chef who has restaurants acro