Transcripts For CNBC Power Lunch 20240712

Financials all higher by 2 or there abouts shares of Sonic Automotive up 200 from the march low as the demand for used cars skyrocket during the pandemic. The ceo david smith will join us well welcome him as power lunch begins right now thanks the stocks are still on track for a week in the red bob was more on the moves for us we were moving down quickly at the open. We turned around at 10 00. Thats when we got the headline that the regulators were easing part of the rule we had word that texas was pausing the roping plans we drifted lower again thats what i mean about dualing headlines that we have been seeing its been drifting lower they are delaying the california theme park they have been on a down trend for a while. Nice to see Energy Bounce back we had a bad day yesterday on energy as oil dropped about 5 they are all bouncing back today. Thats helpful all five of the big names advancing, theyll be up on the day. Back to you. Lets go to the bond market where yields are lower rick tracks the action for us. Out at the cme yields are lower. The interesting fact is, theyre still at highs of the session for today. Now, if we look at the s ps on top of tenyear note yields the answer really jumps out at you stocks have been leading the way to lazy treasuries they are more inclined to be lev on the yields and very aggressive on the bid especially lately but the s ps are turning and so are treasury yields finally, the kbw bank index. You see it on the chart. Its hovering near one month lows maybe one of the reasons is the curve is below 50 basis points but maybe some of those rule changes that tyler was talking about may help that out. They can now margin and save some money within a firm and maybe be in more risky ventures like Venture Capital were going to have to pay very close attention to how those rule changes affect this chart kelly, back to you thats for sure thank you. The market is seeming to shake off the virus fears and send stocks spiraling yesterday is that a good sign for the so called recovery rally were seeing lets welcome in jason katz. What are your thought os on the strengths of financials . If anyone thought this summer was going the be smooth sailing going into an election year, they have another thing coming well see that we know about the virus and the trade kmpb aconcern and the seasonallity you see financials leading the market, thats a good thing. The change in the rule is not a reason to bauy banks but its a catalyst this is an opportunity for investors to save. Warren sold his airlines but kept his banks i think well find opportunity here for investors banks are swimming in cash they have a lot of money to put out there. You have a biden blue wave coming in and biden is no enemy of the banks its going to be a Good Opportunity for Financial Institutions in the months, years ahead and this sector is down like no one wanted to own it double digits. Given up for dead. Lets find some real value here. Would you also be buying. What are your thoughts on the biden win or blue wave we might be seeing . We prefer more cyclical, health care, industrials and the like its a net positive today. Net interest margins of banks will get a benefit here. Theres going to be billions of dollars freed up i think the market started to sniff the blue waver out yesterday. The fed will be accommodating regardless of who is in that seat i think to larrys point, financials are in the camp of a biden in terms of him not going after them, per se larry, i know youre enthusiasm for the banks but where else would you be in this market or do you think that stocks can continue to move higher the trade is so wide that people stopped counting because values lagged. Banks could be the diamond in the pandemic within that trade theres other opportunities. Were in a volatile yield desert investors will need income so desperately in the months and years ahead. We know tax policy is the first thing on the menu under the next administration if you see a change in tax policy, it could mean the tax advantage investment remains incredibly attractive. Riding Dividend Income were really opportunistic here. As we see this trillion dollars worth of volatility that hit the market all summer and create market swings, investors have an opportunity to add to some positions here, create some opportunity going into the fall. Find some dividend yield and forget the pandemic. Thats for the experts and traders. Jason, i know youre cautious on the financials. I see head winds for energy and for big tech why not the kind of wide enthusiasm for big tech in particular if we get a changing of the guard, its clear youre going to have more regulation and i think that these sectors have enduring competitive advantages, access to the capital markets, fortress Balance Sheets with respect to the meg tech. Id rather pivot and look in areas that have under performed but more teetherthered to the b and mortar but look at mid cap its under performed by 6, 7 this year. I think youll see a much broader catch up trade there all right jason, larry, thank you both thank you tyler. A record spike in coronavirus cases in the United States this week in part because of emerging hot spots like arizona and florida and now texas is pausing its reopening process as hospitalizations in that state jump. Meg has the details. Meg. These incredible numbers were seeing are continuing today from states like texas, arizona and florida. Yesterday contributing to a Record Number of new daily cases across the United States were now seeing levels that we havent seen since april the test Positivity Rate across the u. S. Also going up in terms of the states of real concern. Texas showing increase last week of 80 of cases compared with the week before. Arizona also showing an increase as well as florida all of these states are showing their test positive rates increasing arizona now up to 23 . Showing a lot of Community Spread texas seeing a lot of news today. The governor saying hes halting these states reopening plans not going back but just freedsifreeds i freezing them where they are. Four counties being ordered to halt elective surgeries to make sure they have enough Hospital Capacity to treat covid19 patients houston is almost at its normal icu capacity they do have a Surge Capacity of 870 more beds that they can start using. Seeing the fatality rate in that population larger, younger americans being diagnosed here and he also said, cdc Surveillance Systems on blood tests looking for antibodies they estimate that 5 to 8 of americans they have already been infected with the coronavirus. Let me turn to the question of whether theres any seasonality to this virus. Months ago there was thoughts when the weather got warmer and things turned around this virus might abate. Thats not happened. Yeah. We were kind of hoping for a break this summer. Its not what were seeing at all. Its really the hotter states right now that are having the worst infections there is some thought that its because its indoor season there. People are staying in the airconditioning and being closer together. Could that be contributing to it the seasonality idea seems to be going away that doesnt mean that Public Health officials arent concerned about the fall because that is flu season and that will massively overwhelm our Health Care System if we also have high rates of covid as the weather gets cooler, people in other parts of the country will move inside as well where they might have greater chance of exposure kelly. Coming up, a volatile trading session with financials in Energy Leading a rebound in stocks well have more on what the moves mean for the market. Used car prices are hitting a record high as driving demand is surging. One stock benefitting from the jump is Sonic Automotive the ceo will join us after this quick break. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Twhile the future of work professional or consultant remains a question mark, one thing is certain reopening will be a journey. Thats why salesforce created work. Com to help at every step of the process, with tools like manual Contact Tracing to help prevent one from becoming three and three from becoming more. While displaying Key Information in one place on a Customer Relationship platform you trust. Because heres one more thing were sure of. Relationships are the heart of business. So lets tackle this together. Welcome back new cars are showing some signs of improvement, used car sales are jumping even as prices stand at a record high one company benefitting from that surge is Sonic Automotive its used car sales at franchised dealerships are up 7 so far this month versus last year they compare that to a 32 drop back in april. Soninlawic is the 5th largest auto retailer in the United States shares are up 200 from the march lows david smith is the ceo of Sonic Automotive you say in some areas of your operations, which are mostly across the south and western parts of the United States, your sales are above precovid levels two questions. Are those sales of new or used cars or both and what are the areas where the sales are above where they were precovid . Were tracking nor an all time level june in volume and profit. We did about a billion two in our eco park stores in 2019 we have plan well be rolling out soon to talk about increasing that in short order to about 10 billion in revenue with our eco park stores rolling those out into additional locations across the country. Eco park is an interesting concept as i understand it its used cars but its low mileage, for years or younger. Never been in an accident. Do you use a fixed price approach there or is it the typical sort of negotiate your best deal . We do call nearly new theyre all fixed pricing. We had people come in from alaska to buy cars from eco park thats why our eco park on average, the ten stores do about ten times the volume of a traditional preowned or franchised dealer store as far as our number of units per store. Do the franchises carry the eco park or the sonic name or is it joewilliams ford but you are the owner of that franchise from the ford company how does it work our Franchise Stores have different names all over the country from again from california to florida. Our eco park stores are stand alone preowned stores with the eco park name only we have one of our stores sells about 1300 per month during the pandemic, the eco park stores were the most resilient during the whole pandemic from an investor standpoint thats what i think is most interesting is to see that growth and taking what now is a combined 20 billion im sorry 10. 5 billion Dollar Company to now were show a path to get to 20 billion in total revenue which from investor standpoint we think that is what most important lets talk about some of the near term trends phil was tweeting about a dealer who was contemplating shutting down over july 4th this is gnaw ca new car dealer e demand was so strong and inventory was so light is that resonating or unique to a few markets. This is a ford dealer in the northeast and a few types of cars in our new vehicle Franchise Stores, some of the most popular models, we have a lighter day supply of those. The shopper out there know because they can look online and see whats out there and see theres not a big day supply as far as eco park goes we have been ramping back up and buying inventory, preowned inventory so thats why were back up far above our precovid levels we had all time record, 2019, january and february were tracking to be all time records and we hit this. We have been very excited about how quickly its bounced back. Lets zero in on new car sales. What about the sales trajectory there. Obviously, you made it very plain that eco park and the previously owned segment is doing very, very well. What about new car sales how are they trending and are they coming back at the pace you expected or slower or what absolutely. We attribute that to our manufacturing partners from bmw, ford. They are really Historic Program from zero percent financing to 0. 49 from bmw Historic Programs that have helped us get that volume back and drooiive customer traffic thats been incredible love your thoughts about carvana and the success some of these new entrants to the market had. We try to take our time and build a foundation and do it profitably our eco park operation is profitable which our competitors cant say that that was our plan is to create a fantastic Customer Experience that people really love and the feedback from our customer is great which is why we do ten times the sales per store that the normal preowned store does and so, that was our focus and were ready to roll that out across the country and thats why were very excited about it. We have been able to do it profitably and also with a great Customer Experience to make sure the customers love it. You have to have all of that in order to be successful thank you so much for your time today we appreciate it thank you very much david smith of sonic. Tune in to sidewalk box tomorrow morning at 8 00 a. M. Eastern time well be speaking with the ford coo, jim farley. Kelly. Still ahead, hotels to cruise lines are under pressure as uncertainty remains around reopening in the u. S a battle is brewingbetween states over hot spots emerging in the south and west. Amazon hitting a fresh record high today and a top analyst says its most undervalued asset could be video came service twitch more power lunch is next can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back news of a state quarantine putting additional pressure on hotels and tourist hot spots like new york that are already grappling with low occupancy due to the pandemic and a drop in international tourism. The city has faced explosive growth in the past decade. Supply of new hotel rooms up 42 since 2010 john, how are you trading these hotel stocks knowing the state quarantine can limit travel even further . Were pretty much avoiding the space right now. Any time you go into the travel and leisure space know theres cyclicality to it. You really have to buckle up we would like the airlines could be of interest but we definitely want to see the length and the depth of where covid round two comes to and how far the government will step in to protect this industry if there is another lockdown. We think theres way too many variables that are hard to quantify right now to step into the trade. Well watch it go by and when we feel its appropriate, reassess. Theres a lot of uncertainty facing the travel sector is there one name that could provide leadership for the broader space . Yeah. The one looking at a technical basis, the one stock that we should look at very closely because it looks like the charts of all the other Airline Stocks and most of the other travel and le leisure names is delta airlines. We saw how this group became cay over sold and march and bounced back we have seen this sell off more recently its quite neutral its going to have to get a lot more over sold before we want to back up the truck here the key to watch in the stock is it got up above its april highs. The old resistance level became new support. It tested the support level weeks ago. Its now testing it again. Looks like it wants to breakthrough the momentum money thats been hot in these names will bail on the stock. I agree with john, if you want to buy them, youll get them at lower levels down the road got it. For more trading nation head to our website or follow us on twitter for more analysis. Tlie back to you. Amazon is way more than just an online retailer well talk to an analyst who says twitch is a key asset for the company. Exploring the office divide. How different people view race in the workplace nike reports results after the bell today what will the company say about the covid19 impact on its business globally. All that and much more when power lunch returns in a couple of minutes can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back here is your cnbc news update. The president and first lady participated in a wreath laying ceremony this was to commemorate the 70th anniversary of the beginning of the three year conflict. More than 36,000 american troops died new jersey governor is warning residents that the rate of transmission is on the rise again. Over the past week, the rate of transmission has increased in 16 of our counties with six counties now recording rates of transmission 50 greater than they were last wednesday we cannot let up even for one day with our social distancing sec chairman says now is not the time to discuss being nominated add the top federal prosecutor in manhattan. When pressed, he would not promise to recuse himself from investigations of Trump Associates we would said we would approach the job with independence. Tyler, back to you like a lot of us, his hair is a little longer than i last remember than thanks markets right now, lets take a look after beginning in a limp fashion. The dow industrials were hire and now they have fallen back below the flat line but just by a little bit 22 points for the industrials. One point for the s p. A flat day for it and the nasdaq and for the russell 2000 there are pockets of activity. Most notably the big banks today. Oil market closing for the day dom has the news at the commodity desk green on the screen the modse emodest positivity is translating into the oil market for now as well. You have u. S. Benchmark, wti prices 28. 50. Thats 1. 5 gain theres a watchful eye towards Global Oil Cartel opec in its partner countries to see if they will continue to rein Oil Production beyond next month thats been helping Prices Higher tomorrow is friday that means the Baker Hughes Oil and gas rate count will be out at 1 00 p. M. Eastern time. Oil and gats remain at record low levels the back over to you. Shares of amazon are hitting an all time high today the ecommerce giant reaping the benefits as americans stay at home one of its businesses are still being over looked. Its great to have you here. This will go down as possible one of the greatest acquisitions of all time. Amazon bought twitch for remind me. Under a billion dollars what do you think its worth today . We think its worth 15 billion dollar on 2. 5 billion of revenue this year and it will grow revenue by nearly 70 in 2020 despite the pandemic. How much more valuable did twitch become . I think this is really interesting announcement a lot of amazon holders missed theres a video gamer named ninja. He has a real game but nobody knows. He played 10 hours a day on fortnite while he talked the whole time and he earned 10 million on twitch in 2008 and twitch earned 10 million because they have a 50 rev share. This celebrity got bought for 20 Million Dollar guaranteed to go with microsoft mixer platform that was competing with twitch six months later, microsoft, shut it down now all the celebrities they bought out are coming back to twitch it looks like microsoft is trying to push them to Facebook Gaming which facebook announced in april in the depths of the pandemic realizing that in some ways video games are the new social media but users on twitch, on mixer seem hesitant to go on that platform they dont want to create facebook profiles. Its kind of anonymity and avatars. Facebook doesnt give you that i know you cover facebook. What do you make of its early into gaming . We have data point now. Ninja did leave. He abandoned 14 million followers when he left twitch to go to microsoft. Only 3 million followed him. Even though he was the biggest celebrity, fortnite, streamer, influencer the idea that hes going to now move to facebook, which is even less well established than mixer. I just dont think all these celebrities will come back to twitch because thats where 14 Million People are and thats where they can earn the most ad revenue. If facebook bought them out and paid them 10 million a year, okay then they will go to Facebook Gaming theres no way ninja or these other celebrities would have made the independent idea to go to mixer or to Facebook Gaming they cant make as much money unless somebody writes them a check. Twitch is getting the advertising benefit thatcomes from Young Companies to reach young males. 15 billion doesnt add up to a lot to amazon overall but part of its overall media strategy very important another point of that is prime video. You have real interesting thoughts about what amazon might do to enhance its Current Partnership with the nfl maybe it could do something with one of the major broadcast channels could we see the launch of an amazon skinny bundle how likely is that in the future we published a piece saying they will add looiive channels prime. The thing im most excited about is amazon has an 18 billion revenue advertising business that gets almost as lost as twitch if they added video adid units y adding licensing, some linear challenge, that would be a huge addition or they could do a skinny bundle that would create a new revenue stream that amazon doesnt have today which will be exciting theyre paying 130 million to the nfl for 22 games its a twoyear deal i could see the appeal as a consumer as well a 3200 price target on amazon is how you get there real quickly on disney, big announcement they are delaying the opening of the california theme park what does that do to your views on this stock which has been down more than 20 still this year mulan too its a problem not only because of the whats happening to their fixed costs and profitability but also because its totally unclear when these will open and even if it had opened, its unclear anybody would have attended in a way, i sort of view it as a blessing in disguise because if they opened and no consumer had gone to a theme park, they would have been eating those fixed costs and having no revenue. They have shut down the park so theres no fixed costs and no revenue. I think this might be cheaper for them than opening the park and having no consumers show up. Great point thank you so much. Tyler. Fascinating. Shares of beyond meat getting hit today as mcdonalds ends a test run of its burgers in canada aditi roy is following the story. The six month test run end and as planned three months ago. The beyond meat burger that was on trial in canada was no longer on store menus that sent shares down and now the stock is on track to snap a threeday win streak despite todays losses the stock is still up more than 200 since the mid march low. Mcdonalds saying were e vae t evaluating learn the ceo says we feel good about our relationship with mcdonalds the test had a start and an end as planned the plant lettuce, tomato sandwich was tested in more than 50 stores between september 30th through april 6th of this year its unclear whether the test will lead to a permanent beyond meat offering at mcdonalds. Beyond meat and impossible foods have been in a rat race over restaurant partnerships. Beyond does have one advantage with mcdonalds. One of its Board Members is a former ceo of mcdonalds never a dull moment in this space. Thank you very much americans see issues of race in this country quite differently and not just about what the problem is but about howi fix it. Well discuss race in the workplace, next. Right now is a time for action. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Or credit card bills. Youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Wherever you make go, lexus will welcome you back with exceptional offers. Get zero percent financing and make no payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. Welcome back we have a new alert on apple dom has the details. Its closing more stores or reclosing more stores. This time in the state of florida. Theres 14 locations that apple has announced and posted it on its website right now. The locations including the galleria, the falls, the florida mall, anomong others. Due to to covid19 we are temporarily Closing Stores in this area. We take this step with an abuns dance abundance of caution 7 from the houston area. Just jed the day before and now we have these ones we are keeping a tally of how many stores are being closed tyler, kelly, back to you. E cent events have exposed a big divide in the way people see race and thats true in the workplace. Steve joins us now with the results of the cnbc all America Survey steve. Good afternoon. We asked in the survey about how americans feel about the issue of inequality in the workplace and how to solve the problem we found divisions along party lines. We found divisions along racial lines. Let me go through the data here. 61 of the public say yes, this is a problem for which we need solutions but 24 say no its not a problem 15 say they are unsure. When it comes to the issue of whether theres a problem, thats where you get the divisions along party lines. 38 of republicans say its not a problem. 28 of independents and 12 of democrats say no, this is not an issue that needs to be addressed. When it comes to who thinks it does 73 of democrats this is the other side of what i showed you 60 of independents and 43 of republicans say yes the solutions are needed when it comes to which solutions, thats where we find sop interesting racial differences here looking at overall, the top choices for how to fix the problem among white voters, recruit and train more black employees too. Create policies to for black employees in the workplace the difference is one is a bottom up approach the other is a top down where africanamericans are saying put more people above me that will bring me into the organization rather than the other way around which is to bring more in. Tyler. I suppose you could do both or all of the above if you wanted to. How was the question posed did everybody have whites and blacks have the same choices to make and it bubbled through . They did. The black response could have said i can read you can question if question is when it comes to creating racial equality in the workplace, which one of the following things do you think is the most important for companies to do . We had a series of choices and steps not needed was also an option very interesting. Thank you very much. Appreciate it. Kelly. Coming up, how millennials and gen z are being affected financially by covid19. The dow tries to hold onto gains after the g opbidr stay with us when the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Welcome back its now time for power movers the Consulting Company beating on earnings and revenue saying results were boosted we dont talk about this company too often but look at the market cap. 142 billion slightly larger even than mcdonalds kb home beating on earnings but the rest of its result showing the impact from the coronavirus. Deliveries down 11 . Net orders down 57 . Analysts are split on the stock. Evercore downgrading and Raymond James raising prit target and reiterating the strong buy rating we end with far fetch. The online luxury goods retailer they preannounced results showing gains in customers and market share as more retail moved online the stock tripled, kelly, from the march low. Nice move today thank you the financial crisis caused by the coronavirus are having a greater impact on younger people kate rooney has more on how the p pandemic is hitting millennials. Younger generations are reporting higher job losses, less financial optimism and changing views of the workplace during the pandemic. According to the annual Millennial Survey out today, twothirds of millennials and gen zs say they worry or get stressed about the financial situation. They did an initial survey in december then a follow up in may to measure responses during the pandemic pessimism about finances grew by 9 during the first few months of 2020. 61 see their financial situations worsening in the next year the pandemic also brought a surge in job losses among the generations. According to that follow up survey, 30 of gen zs and younger millennials lost a job or put on leave. The crisis is also changing the way they view the workplace. More than 60 said that when the pandemic is over they would like the option to work remotely more frequently and a surprising one, guys, despite all the headwinds, stress levels were actually down during the pandemic. Researchers say thats due to more time with family and less time commuting guys well, thats an absolute benefit, kate. Its interesting though that they prefer to work from home in the longer run it would be good if as you suggested could mean more time with family, less commuting. But i wonder about their Career Advancement if theyre not able to kind of just mingle and be around the office to the same extent in the early years as, you know, you normally would think. Absolutely. You think of if its a global workforce, this var was global you might have more opportunity for millennial thats dont live in new york or San Francisco or any of the major cities f youre looking to move back to your hometown, it may not be a major mel poll tan area f you are able to work remote, could provide more opportunities well see. Thats true that would be a positive kate, thanks so much kate rooney. To read more about the story, go to cnbc do. Com coming up, everything you need to get ready for result were talking nike out after the bell dont forget, you can always watch and listen to us live and on the go on the cnbc app. For action. Ime thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Anwhile the future of workns. Remains a question mark, one thing is certain reopening will be a journey. Thats why salesforce created work. Com to help at every step of the process, with tools like manual Contact Tracing to help prevent one from becoming three and three from becoming more. While displaying Key Information in one place on a Customer Relationship platform you trust. Because heres one more thing were sure of. Relationships are the heart of business. So lets tackle this together. Hi, welcome back, everybody. Nike set to report earnings after the bell the street expects a substantial hit to the Fourth Quarter sales from coronavirus shutdowns around the globe the stock is down about 1 for the year but shares are up 66 from the march low. The next guest expects them to emerge from the pandemic lets welcome in brian nagle senior retail and hard lines hard lines and broad lines and all that kind of lines analyst thank you for having me obviously, nike is going to take a hit this quarter based on revenue falloff, profit falloff. How big a hit . And is there a number that would surprise you to the down side or surprise you to the upside the street expectations for what its worth, assumes sales of nike will be down 30 year on year earnings like 9 cents versus 62 cents last year. So youre saying thats a big hit. Now, i dont think overall the Fourth Quarter results matter that much. What does matter is the comments that nike management makes about the trending business through the quarter and into the early days of the new year if the sales were down 10 that, will be the big picture. But again, the q4 result will report in an hour or so. It is much more positive say about the underlying business. Im wondering whether this covid19 experience has accelerated nikes move to becoming a direct consumer seller and online seller and that that in the long run may actually benefit it. Absolutely. You know, i think you said that perfectly. So nike has had has been on this digital push for a while. In particular, how they connect with consumers and we saw again, well get big update on this tonight we saw in china, with the pandemic hit first, all the groundwork that nike has laid to be more of a Digital Company is very much benefit them through this crisis. And on the other side of this, relative to competition, that will make it Even Stronger where is the stock now and where is it going to go . 100. They got a phenomenal bounce back it is basically now playing with all time highs i got 15 price target on the stock. But look in my mind, nike especially with the digital mischiefs in the easterly zwrajs of dominating the athletic space. You know what is interesting to me . How wig nike is. It is bigger in revenue last year and the combined top line of of adidas, under armour and louisiana lemon. Its a big company. Obviously big presence it is a big brand. Its its political stances affected it positively or negatively and how do you expect it to express its political views over the next months . Sure. So look, i think as ive said, nike digital, theyve done a great job. Theyre a great manufacturer of products everyone i think the other really powerful aspect of nike is the marketing engine. And so you have nike is a great marketer looks like we have lost we lost brians signal there. Brian nagle. And there you see nike at 100 a share. He has 150 price target on it. Brian, take it away. Hes gone. Im sorry. Hes not coming back at any rate, a price target on nike he sees it moving up to 115 a share. That will be obviously, a 15 move tyler, if you go about ten minutes drive from here, you see the nike store there is a line of dozens and dozens of people outside of that store every single day since its been reopened 95 degree heat i mean thats my bellwether. And my son who is 14, i mean, he really wont wear anything but nike i mean, he turns his nose up at the other brands so deeply in his life is nike. I think its partly because he loves lebron so much and lebron is a big nike presence well see what nike does after apple announced theyre going to close a few more stores now i believe in Florida Apple shrugging off the market as well. Built these companies have a lot of Big Decisions to make well see you tomorrow thanks for watching power lunch, everybody. Closing bell starts right now. Thank you, kelly and tyler. And welcome, everyone, to closing bell. Im sara eisen along with wilfred frost. Stocks rofrpd recovered on a choppy day of trading. Lets see what is driving the action in the final hour fears of a virus resurging texas pauses reopening and apple close sometimes Stores Across florida. A rollback of some banking regulations in the u. S. Has financials rallying today. And jobless claims claims remaining above one million for the 14th straight week 59 minutes left until the close. When investors will get a slew of news. Ni e