Transcripts For CNBC Closing Bell 20240712

167 drop. Turn positive 59 minutes left in the trading day. Yeah, set for another record day all time close for the nasdaq coming up on the show, the dow component and tech component an hour away from that up more than 30 from the march lows still down year to date. Well have full coverage and analysis when those numbers hit. First of all, lets focus on the big stories were watching mike santoli is back and tracking all the Market Action for us meg terrell has new details on a number of vaccine candidates and were following the action in washington with the key deadline approaching. Mike, lets start with you its almost faz that rotation out of tech into value didnt even happen. You missed it all of last week you know, exactly a little bit of a stutter step that is all. Maybe it took for the overheated big nasdaq names to cool off for 4 1 2 days, 4 1 2 trading days but they are leading the way today. Is a very narrow rally it is a slow motion breakout you look at a year to date, thats going to close. The if we finish right here, about. 5 where it finished on june 8th that is the Previous Post crash high that we h weve been in the trading range for about six weeks. That is a pretty prolonged benign kind of consolidation period weve seen. I also want to point out here in january this is the only time ever weve traded above, you know, 3250 or Something Like that in the s p 500. So that was pretty much when the market was really putting the finishing touch onzes on a high momentum that is something to put into per inspe perspective. I want to take a look at the breakdown here of the s p 500 year to date against a portfolio of domestic u. S. Focus companies. This is a very small etf the russell 1,000 pure u. S. Composure etf. Does it nicely track companies that mostly are about u. S. Revenue. You see right here on june 8th, that is a narrow gap it was about 4 or so based on year to date performance that widened out to 10 . Part of this is about technology but Technology International focus maybe has something to do with the strength. Also, lots of health care in here so health care, telecommunications, financials are very heavily weighted. But maybe the argument is dollar is down. Global assets are up the Global Economy might be gaining pace faster than the u. S. Thats one message, perhaps. The s p 500 is telling us in a subtle way mike, last week if you were trying to find the reason as to why value and cyclicals did do well, i guess you would point to the vaccine news as opposed to necessarily the economic and virus data its interesting to see the snap back today the same applies today good vaccine news not necessarily outstanding an economic and virus data. Its true i do think that the narrative is a little bit staticky. It is very difficult to actually say what has been driving things i think positioning, even though its kind of a boring mechanical thing to talk about, people get overcommitted to the big Growth Stocks they pull back you did have some good beats in the Bank Earnings front. I think that had something to do with it. The vaccine news, i dont know fit was new in terms of what the premise of this rally has been already. That within several months, perhaps we will have some kind of a vaccine to kind of end this phase of things. So thats why i dont think todays newses with drivi todays news is driving the sector action. Lets had hit that vaccine news today biotech stocks are getting a big boost amid a number of important updates. Meg terrell has the updates for us sarah, we did get news from a couple Different Companies in this race today. First lets start with oxford and astro citizen ka reporting the results from a phase one two trial of more than 1,000 patients we also saw results from pfizer and the partner from a german phase one study. Both of these vaccines showed in the trials they did generate an immune response. They were generally well tolerated. You did see some side effects like fatigue and headaches we learned some new details today. As t after the arestrazeneca thinks they need to vaccines. This is what it may look like. They also said it hopes base ond what theyve seen in this Vaccine Technology previously that the protection could last a year or even a little bit more were going to need the phase three trials which are starting as soon as next week for some of them to really answer the questions. The do the vaccines provide protection are they safe in more people and how long will that protection last . Those are going to help us answer the questions sara and wilf . Meg, do we know how often we get positive responses like this where we get ultimately an effective vaccine . Or is this just unanimously a positive indication that its going to work . It certainly not unanimous. Part of the issue is that this is brained new virus and we dont know how the antibody levels and the tcell levels will correlate with protection from the virus when people encounter it in the world. So thats why we just need these 30,000 participant phase three trials to tell us once people get vaccinated, are they protected if infection so until then, we just dont know meg tirrell, thank you. Lets switch focus to washington a stimulus deadline is fast approaching. We have all the Key Headlines from that story. Wilf, with five days left for manufacture the programs authorized under the c. A. R. E. S. Act, the white house convened Top Republicans from capitol hill and Top Administration officials to craft their negotiating stance for the next phase of Economic Relief focused on starting with another trillion dollars we think that will make a big impact and the focus is, as i said, is really about kids and jobs and vaccines gop aides say a payroll tax holiday for a specific short term period of time is where the support generally landed among those officials. President trump prefers stimulus via tax cuts rather than direct checks even though the administration would support both if necessary to get a deal according to my sources. Now other positions would include reducing the size of Unemployment Benefits, reducing the number of americans who are actually getting those direct checks by a stricter means test, introducing tax incentives for consumption and tax incentives for schools and stores that open safely and protecting those locations against future lawsuits the republican package is not expected to include any additional money for states and local governments. By comparison, the package that democrats passed in the house of representatives back in may, that included 1 trillion for states, local governments and tribal communities so there is clearly a lot of daylight between the two parties on where their negotiating positions begin. The treasury secretary and chief of staff will be on capitol hill this evening meeting with members of Senate Health committees and presenting to all republican senators at a policy luncheon tomorrow and negotiations with democrats will begin after that sara and wilf. Clearly a lot of daylight between the two sides and negotiation that has to go ahead. Even in the best case scenario, are we expecting that while the stimulus will be extended, it will reduce in size relative to what we had over the last couple months, depending exactly how that shakes out and who benefits thats right. We heard members of the administration up and down the ranks for the last several months talking about how they understood that the economy was going to need more relief but that they were going to try to do it in a more targeted fashion. They saw the 3 trillion package that House Democrats passed in may as sort of an everything but the kitchen sink or perhaps even including the kitchen sink type deal they want theirs to be more narrowly tailored. I think being realisted, they think the final draft will end in between thank you so much for that. Markets by the way, sitting pretty nicely. Nasdaq up 2. 2 dow back positive. S p 500 up 10. 7 50 minutes left in the session after the break, why so Many Companies working on vaccines and updates on the progress. Which developments are most important . Well talk with Jacob Glanville right after this break youre watching closing bell on cnbc. Usaa is made for whats next were helping members catch up by spreading any missed usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa. Com in a highlyconnected lexus vehicle at the golden opportunity sales event. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. Experience amazing hey lily from at t here. With some helpful tips. Tip 1 you can currently get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Welcome back to closing bell. Time to get word on the street check out shares of amazon up 7 Goldman Sachs and jeffries both raising the price targets to a new street high of 3,800 a share. Both citing accelerating ecommerce and core growth Second Quarter earnings next thursday sarah, Goldman Sachs was at 3,000 jeffries at 3100. Both up to 3800 clearly, seizing a little pullback in amazon shares to do their upgrade. I am note that the thing that stood out to me most of all in the Goldman Sachs note which is a broad note on the internet sector is this, saying multiples across the sector have expanded well beyond one deviation above five year historical options and even though they have this big upgrade for amazon, you read the rest of it, its basically saying all these valuations are unbelievably stretched well see if the momentum enough to keep going or whether earnings does focus people and what the multiples are its crazy to see that move on no news making up almost all of the loss thats we saw last week. It has become one of the ultimate stay at home stocks with that whole tech trade working, the stay at home trade, amazon comes out on top. Speaking of the virus, move on to the positive news on the vaccine front today from astrazeneca and pfizer and oxford as scientists race to find a vaccine, theyre looking to find an effective treatment Jacob Glanville is currently working on a covid19 treatment. You may recognize him from the Netflix Documentary pandemic how to prevent an outbreak. Glad to have you back on the show as far as the news on the day on vaccine we get to your treatment, what is your level of confidence at this point given some of the early responses weve seen so far that we will get an effective vaccine by the end of the year . Well, its definitely good news we know the vaccines are in antibodies in recipients we need to complete the trials, the smart money as we should be cautiously optimistic. Thaws because we know that amsters and primates, they have antibodies, theyre protected from the virus the vaccines are not enlisting antibodies i think well have effective vaccines by the end of this last year well talk about the hamsters in a moment. On the vaccine front, is there a way for the scientists and doctors to test how long the vaccine will protect people . It seems like were not going to know that until we start administrating it in the fall or winter the only way to know that is watch these people the closest can you do is you can look at the type of vaccine that the Different Companies have chosen and can you compare to other uses of the same technology if you use an r a vaccine, they may have a certain characteristic amount of time the person has immunity. Ultimately, we have to watch the patients and find out. Doctor, if we look at the last week or so, maderna and astrazeneca is there any one of those three that is the best or winner takes all type market when we get a successful vaccine that is approved i had surprisingly similar results. They show antibodies being elicited and they showed some side effects. The so fever and some kind of flu like symptoms that seemed to happen that is a good sign. That means that youre getting a response to the vaccine. Although people dont like it so much between the three different vaccines, i dont want to give people too much advice one or the other. I like the pseudo particles, the oxford style technology. It he licits t cell antibodies as well. Lets talk about the research youve been doing on your antibody treatments wh when you are testing on humans and whats the difference between what youre doing and what others are doing . A lot of hope for the antibody cocktail to be used as a treatment. Thats right. So in addition to the vaccines which are definitely good news, we need a therapy. The reason for that is that even if the vaccines start becoming available in 2021, first off, it its going to take many months to vaccinate large swaths of the population dr. Fauci indicated we never have a perfect vaccine so it wont work in everybody. And we know 20 to 50 of americans may not take the vaccine. So for all those people, they may still get sick and they need something at the hospital to treat them antibodies are a potent way to provide treatment for these kinds of viruses we think the method hopefully will be successful and the difference of our antibodies versus theirs is we have additional engineering to increase safety. Hopefully theyre able to treat patients by the end of the year. Clearly u. S. Cases spiked aggressively over the course of the last two or three months but deaths havent followed. Nowhere near to the same scale which is great why do you that i is and should we be confident that that will continue for the next six months until we do have a vaccine . Unfortunately, youll see a big spike in deaths as well. Were starting to see that happen what i said repeatedly, i will continue to anticipate the series of waves where well start to see large spikes in cases. Once that starts hitting hospitals, people increase social distancing measures and other social isolation measures and then that slows the wave were going to continue seeing the behavior until we have good vaccines and therapies back to the antibody therapy for a second a lot of people i know a lot of doctors do hail this as a game changer bridge to the vaccine. Are you looking to use this to treat severe patients as weve seen the antivirals or could this be used preventatively as sort of a temporary vaccine until we get the real thing . I see it larger than a stopgap measure. They dont take it we could be in a position of a year or more of the virus continuing to undergo large scale outbreaks. Having a therapy, having an antibody you can offer people at the hospital, its like an antiviral they get better and go home, then the virus is no longer as scary. Its no longer as dangerous to get sick you can give antibodies to people that are sick the earlier you give them, the better the effect s we learned this from other nasty viruses. That appears to be the case here as well. But can you also give antibodies as a preventative to at risk populations like the people that are elderly or hospital washing workers or the military. Doctor, just to go back to the cases and the deaths we should have done two follow ups in a row each rather than yoyoing like this back to the prospect of where were heading on that front. Do you think whether gettieatheg worse in the fall is a big factor, maybe not on the death front but on the cases front given this may push the new Economic Activity weve been able to enjoy indoors rather than outdoors . Its a little hard to say my expectation is as we see increase in case thats affect hospitals, then local policies will change. The good news is that this is the second time weve gone through the cycle. So were all a little more experienced on implementing the policies the problem, of course, is people are exaspirated im expecting to see some worsening as we go into the fall but this is going to be our second and potentially third wave by the end of the year. Thats going to help us try to mitigate the damage until the medicines are ready. What is your thinking as the country and various governors try to figure out how to send kids back to school and whether kids can pass it on to other kids that can pass it on to adults how dangerous is the risk . What should we make of places like europe that have been successful in opening schools . Is. So the evidence so far suggests that children under 10 are less likely to have severe symptoms and less likely to trans transmit children between 10 and 18 are at low risk. The problem, of course, is its not zero risk. So still possible. Its not like chicken pox. Its possible someone could get quite sick or even die the efforts in europe have benefitted from way less cases and they applied a bunch of distancing measures at the schools. I think with appropriate sets of measures, its possible to engage educational systems i think the danger is being faced in the United States is that were just pushing everybody back into schools without enough distancing measures and that is a risk that a large number of kids could get sick theyll get infected they may not get that sick but can bring home to families and grandmothers and so forth. Dr. Glanville, thank you for joining us keep us posted on your studies thank you we appreciate it. 37 minutes left of trading take a look at the markets were higher we made back that whole deficit in the dow and are now higher by 40 points. The nasdaq is shining today up 2. 4 the stay at Home Technology trade that suffered last week is back on. Remember the nasdaq was the only one of the big three to close lower on theweek but still, were seeing some nice strength across the board except for the russell 2,000 index of small caps. After the break, Energy Stocks are on the move today on the back of a multibillion dollar deal and a surprise earnings beat will well share the details next as we thoed brehead to break, ta jumping midsection ahead of the Earnings Report on wednesday a jump for tlaes is up 9. 5 . Well be right back. Earnings and m a activity make og for a busy day in the energy sector. Lets get to Brian Sullivan with more brian . All right we have a deal and the numbers coming out ahead so lets get to the deal first chevron buying noble energy. There is an ne this is nbl for 13 billion total. Theyre assuming some debt noble is going to be taken out at 10. 50 a share. So a little pop for that stock this morning keep this in mind, this was a 75 stock six years ago. Chevron got outbid theyre happy about that now so theyre am coming in and scooping up a big on shore driller to get in texas and colorado theyre getting equatorial ginia. Theyre going up a bit on the results side, i wouldnt call them earnings, halliburton, a narrower than expected loss. The stock actually rising a little bit today despite numbers being pretty much every metric being weighed down its not as bad as people thought and there was sign of optimism amid Gross Margins in the projects that do continue. Narrower loss. A big energy deal as well. Of guys . Brian, i have to fascinating deal, as you sid the biggest take away though is the fact that chevron and steve worth got so lucky that they failed in their attempts to get anadarco never been happier to lose out, right i mean, you know, they went into a i wouldnt say a bidding war. They ended up bidding against itself in a way. You think about that today noble is not as big as anadarco. Of course, you know, Warren Buffett is helping out on the debt side. So, yeah the team is doing a good job trying to delever the Balance Sheet. And anadarco is not a pure play on texas but a large play. A lot of people dont realize this they were the first or second people in the area in 1924 or Something Like that. I cant remember the exact year. There will be blood type stuff theyve been there and now theyre getting assets there as well as colorado which is kind of a new hot bed and this project off of equatorial ginea so i think theyre happy with the price. Wall street is not unhappy but im not sure they expect more deals there is nobody left with any money. Brian sullivan, thanks very much as always for that s p 500 up 0. 9 . Were gaining. Dow is up 2 comfortably in record close territory. Still ahead, dow component ibm gearing up to report earnings after the close. Will well preview the key things to watch out frr that report the stock is down around 5 or so year to date. As we head to break, lets check in on bonds. Welcome back with the dow 52 points, lets get to developments on the coronavirus. Yesterday marking the 41st straight day that the seven day average of new daily coronavirus cases increased in the country thats according to the washington post. Florida continues to be a hot spot with the state reporting more than 10,000 new daily cases for the sixth day in a row one florida lawmaker saying the state should close down due to the rising number of infections there. Texas and another hot spot reporting more than 8,000 new cases on sunday. And ohio, could become florida thats according to the states governor the state reporting more than 1,100 new infections yesterday with the seven day average now higher by 10. 6 . Time for a cnbc update. Hey, frank heres your cnbc update at this hour. The jets and giants and the in ational Football League will be playing their home games without fans in attendance because of the pandemic new jersey governor said fans are not allowed in Metlife Stadium until conditions improve. Both teams are thanking their fans for their patience. La teesha james and 23 other states attorney general are suing the Trump Administration they say a new rule allows Health Care Discrimination the suit claims the new rule makes it easier for health care provide aernz Insurance Companies to deny coverage to lgbtq individuals. The and these mcdonalds employees are among the thousands to take part in todays strike for black lives labor unions and Racial Justice organizations have called for a nationwide walkout to push for better pay, health care, and paid sick leave. And thats our cnbc news update at this hour. Sara, back to you. Frank, thank you. 27 minutes left of trading heres where we stand. Were pushing hue highigher in e final hour of trade. Amazon is up 7. 8 . Recovering most of the losses that it saw last week. Just charging higher the overall s p 500 is up about 1 it is Consumer Discretionary and Technology Communication services and health care are leading higher utilities, energy and industrials lag. Nasdaq up 2. 5 coming up, China Shanghai composite climbing 3 in todays session. Now up more than 8 for the year beating the s p 500. Were going to ask an expert up next who says china could remain the worlds best consumer story. Well be right back. 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. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Welcome back we have a market flash on tesla. Phil lebeau with details take a look at shares of tesla. Up almost 10 on the day yes, 10 for this stock means, what, 140, 145 a share look, 142 higher. Keep in mind, there is no specific news that is driving this stock higher. Fwhut but this is not uncommon before they report quarterly results. Weve seen this in previous quarters, especially when theyre expected to post a profit you see the stock move higher. Tesla reports q2 results and an expected profit for the Second Quarter, thats the expectation out there, that will happen after the bell on wednesday. So thats a little bit of color into why this stock is up almost 10 on the day guys, back to you. At 1640, the high touched on the 13th of july, 1775. A little ways still off. That phil lebeau, thank you. The shanghai composite outperforming u. S. Equities this year jumping 3 on this session chinas economic is on the way to a v shape recovery. Andy, good to see you. Thank you for joining us lets start on that topic. Are they experiencing a genuine v in the economy and can we believe those numbers . Yes the for the time being, there is definitely a vshaped recovery across most parts of the economy. Capex spending, Consumer Spending that is the biggest part of the economy. That drives growth and new home sales, car sales. Its all looking perfect it good not yet back to normal but heading in that direction. I guess because of 2020 were all focused on covid19 issues should we be more focused as it relates to the china market on u. S. China tension ds which elevated is that a factor that should derail other is the economy adapting such that its no longer a ris snk. You knrisk i think the biggest risk is the same one here. How are we going to manage covid19 and how are they doing it thats where things are looking good they really managed to bring it under control over the last couple months. There hasnt been a covid19 death in china since the middle of april and thats going to be the most important part what happens with the u. S. Is much less important because china is a domestic demand driven economy just like ours and therefore, the tensions between washington and beijing are highly unlikely, i think, to derail things. Net exports, that is a value of a countrys kporexports. They contribute zeerd row. And china only sends 17 of the exports to the United States i think that is a big factor in terms of Investor Sentiment but not a big factor in terms of performance to the economy or of investments in china andy, what do you think offant group going public . This is going to be a giant ipo. They chose to list in hong kong and shanghai interestingly after jack mop a few years back came to the u. S. For alibaba. What does it signal . Well, i think for me the most important element to this is the frustration that i have with the counterproductive efforts that some people in washington are making to try and delist Chinese Companies fromthe United States americans are going to invest in Chinese Companies wherever theyre listed as they do now. If theyre not listed in new york, that bolsters the Hong Kong Exchange or exchanges in singapore and london that means the companies arent subject to our regulations i think for american investors, counterproductive. Whether we consider some of the action thats have been taken of late against china, its clearly elevated the debate as to who is to blame over last couple of decades if people did go down to the chinese regime. Do you think ceos that have seen the ip stolen, for example, need to take more responsibility for some of the questions . Well, i think that companies do that by their general nature. Thats what Companies Need to protect their ip whenever it is that makes them successful but when you talk about cow you toing, youre referring to a speech that attorney general barr made recently where he said that china seeks to overthrow the rules based International System and to make the world safe for dictatorship. I just see no evidence to support that at all. China wants to make china safe for running its own system of governance we may not like. We have to acknowledge that thats going to be there for some time. And we have to work with it. I think engagement has been really successful for american companies, for chinese people, but for us as well china is a much better actor abroad look at taiwan, for example. When the u. S. And china established diplomatic relations in 1979, china was still sorry, taiwan was still a one party regime everybody is worried about survival now its a wealthy, thriving democracy. So i think going back to the process that brought us where we are today is whats going to generate more progress for our economy, for our companies, and also for chinese people. But dont we need to keep National Security in mind, andy . Arent there some real concerns . The u. S. Government is warning about this for a reason. Of course im as attune to the National Security issues as anybody else. I spent 17 years as a Foreign Service officer in the state department, mostly focused on china. Im well aware of those. We have to make sure when we call something a National Security threat it really is a National Security threat so, for example, is huawei putting gear on the uk and National Security threat gchq, their version of our nsa has been pulling apart all the gear and software as it comes into the uk for ten years and has said every year in a published report, its not a National Security threat has this become a political excuse to deal with political problems in the United States rather than focusing on National Security and our own commercial interests as well . Andy, thank you for joining us thank you lets check in on the markets. Theyre rallying into the close. Up 90 points at the high for the dow. Up 68 at the moment. S p 500 is up 1 nasdaq composite up 2. 5 set for the record all time closing high after the break, key things to watch from ibms earnings and a reality check for one high flying electronic vehicle company. Those stories and much more when we take you inside the market zone. Lets have a look at amazon in particular up 7. 6 . It is set for the best day since december 2018. That is if it is up more than 7. 5 at the close though were just a week or so ago it was a little higher than it is now. Touched 3329 or so on the 13th of july. Were back in a couple minutes on closing bell. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. [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. The markets mike santoli is back hes here to break down the trading day. We have the chief Investment Officer nancy tangler here as well lets kick things would have a Broader Market a strong rally on our hands. The dow remains the lagger it is up 70 points or so mark cuban warned people should be spectacle of this rally everybodys making money right now because you got the fed put. And, you know, that brings people in who otherwise wouldnt participate. You have all the free traders, you know, the analysis to the day traders of the late 90s that can come in and trade for free they can trade fractionalized stocks you know, as i look at my portfolio, it is very heavy on amazon and netflix i have to keep on reminding myself that the internet bubble lasted multiple years. It went from 1995 to early 2,000. The bubble is over two months later. It lasted for years. Mike, i guess its last for years already. Although, its never really resembled a bubble theyve been growing revenues very, very quickly now that said, we did see last week with netflix that earnings brought that stock down to earth a little bit might the same happen when we get to the other tech reports . I think the expectation is built into the big tech names are pretty high right nour there is no doubt about that but i also think that there is a little bit of a difference in terms of tone and motivation of this incessant buying and the very large Growth Stocks today versus what happened i believe mark cuban might actually agree with this its almost more defensive right now. There is this sense of perhaps an inflated sense of certainty around their long term earnings trends as opposed to it being these are the fastest moving, you know, catchers of eyeballs going on in the 9 0es the fact that mark has to remind himself how the late 90s bubble went, nobody played it better than he d he sold it near the top. He locked in the gains and the trade of the decade. So if he has to kind of remind himself of these things, i think its telling you something how beguiling the market can be and the risk of overdiagnosing something as a bubble when its not really a bubble. Still, some of the moves are extraordinary. Microsoft is up more than 5 you have seen moves like this . What does this action tell you yeah. Thanks, sara i think you have to set aside the robin hood cohort and look at the underlying fundamentals of the company i will say, i dont think this market, i wrote a piece on this recently, is necessarily moving on fundamentals. It is certainly being driven bypassive amounts of liquidity in the system. When you look at the companies that are already well placed ghoog covid going into covid19, companies i talked about multiple times on the air, those trends have just been accelerated as we also keep talking about and its hurt other Companies Like oracle which were exiting and well see what happens with ibm coming up but you have to be aware of the valuation and then the growth potential. 50 stocks in the s p 500 have grown their earnings on average at 15 over the last five years. That is ridiculously low that is why investors are willing to pay up for growth and were certainly not even close to the valuation levels we saw in the 90s and early 2000s so you dont so you push back against the bubble talk i do. I lived through that bubble. Mike is also correct this is a safer trade for many people at the margin, those people will leave when earnings disappoint well see with microsoft in the coming days. But if you look at the long if youre buying the stocks for the long term, the trends have moved in their direction im talking about Companies Providing real service the last thing ill say is cap ex as a percent of total capex topped 50 software capex is three times what energy capex is in total capex spend. That tells us a lot. Sara, just to jump in you also have to be clear that stocks can be unattractively valued and they can, you know, overreflect some good news and be too expensive and have unattractive long term returns right there are questions on the movement of lack of fund ales lets move on. Lets talk about another driver of the market. The more hope on the Coronavirus Vaccine front today. Highly anticipated data from astrazeneca astrazenecas vaccine. Shares falling today pfizers vaccine effort also showing promise in data released today. Joining us is a biotech analyst at jeffries. That stock is getting sold off pretty hard today. I think its hard to figure out the valuations for the companies. With the potential demand for this covid19 vaccine so large how do you do it thanks for having me on first i say all of the stocks have run up last week. Moderna is up 50 last week. Astrazeneca ran up on news that the data is coming in today. People are putting in context the very significant opportunity for pandemic stock piling which is hundreds and hundreds of millions of doses. Could be a billion doses and not only pandemic but potentially e ne potentially endemic. So that is a tremendous opportunity. And we dont know if its going to happen. I totally get all the stocks had a great run. Is moderna selling off because the dwrat is not as good as the oxford data this morning and because investors to some extent are saying this is winner takes all. Again, ill reiterate the stock. We had one last week so that was perhaps due for a little bit of pullback one is, of course, you saw the pfizer 30 million dose order this morning out of the uk which is a good sign that countries are starting to move in this case, doing a deal with pfizer and, of course, astrazenca data looks good there is more competitors and people are saying, you know, its a race. Who is going to win . Move the chess pieces. Youll have this volatility for the next few months until we get that data. What about the kmn coming from the federal government. The u. S. Responds has really focused around pumping money and bets into these vaccine makers how is that changing the economics and the calculus for the companies . Well, i think on one hand it tells us that there is no doubt that the u. S. Both with the amount of the capital and they point to obviously stimulus package four trillion to fend this off for a couple billion that they put in they help the manufacturers get this so we have hundreds of millions of doses ready to go. We want these to happen. We work with placement and economics. I think that the end of the day the volume is so tremendous. Hundreds of millions of doses to a billion doses times a small number like 20 gets you to enormous money, a billion doses times 20 is 20 billion just to put that in perspective. Obviously a fraction of that, like 2 billion is worth a lot of money to a company like moderna. Put that in perspective. Michael, thank you for joining us great to see you Broader Markets still nicely high s p 500 up nearly 1 tesla soaring today. Shares of the electric vehicle maker getting crushed after announcing a secondary Share Offering late last week. Phil lebeau has details. And when you take a look at shares of nikola, its a case of dilution concerns. Deutsche bank is out with a note saying its going to be substantial and this could be a positive entry point heres the dilution that youre looking at 24 million warrants coming in at an exercise price of 11. 50. Then you have 54 million of the pipe shares, those are going to be registered. So all together, youre looking at 77 million shares coming to market when you take a look at shares of nikola, weve seen this before this stock will be up or down 15, 20 in a particular day and right now, yeah, its down 21 thank you so much for that. Do you think tesla can shrug off a capital race if they want one . Arguably could, yeah. It depends on the size of it a lot of people talking about assuming it does get into the s p 500. Smimdz they do a Capital Raising conjunction with that as index funds have to buy. Almost any whisper that complicates the situation can be an excuse to cause it to retrench a little bit. I dont think a Capital Raise that would further kind of secure the finances would in itself be game over. Ibm is trading higher along with the dow ahead of the results due after the bell we have a preview. Sara, this the first full quarter. Now the early days have seen him do things a little bit differently for one, he runs the Earnings Call himself. There are as many that delegated them it is really the same as it has been for years shares, you just noted this have underperformed last quarter to remember that ibm withdrew the guidance due to the pandemic shar shares are down 5. 5 this year 15 over the last 12 months. Will so trailing tech and the Broader Markets. Back to you. Thank you we just got about two minutes left in the trading day. Mike, what you are seeing in the market internals the internals are vastly weaker than the index. I think that is the bottom line. So if you look at New York Stock Exchange volume, actually more volume in the declining shares than advancing shares. Very narrow rally. So the equal weighted index down. 4 while you have the headline s p 500 up 1 its not good or bad. You like to see a broader move it definitely shows you very selective market right now volatility index is getting some attention here its broken down its not falling apart here. It is resilient in the mid 20s if this breaks lower, it will trigger a lot of the strategies that tell those models to take on a little more equity risk that is something to have on your radar as well. Okay, mike, thank you for that 50 seconds left as mike said the headline is impressive theyre down 170 so well off the lows of the session. Nasdaq up 2. 6 set for a record close being led higher by the likes of tesla up 9 . Amazon up 9 microsoft up 4. 5 . Alphabet up 3. 5 tech very much the best performing sector Consumer Discretionary also because, of course, thats where amazon sits Communication Services the other sector nicely higher we have got seven or eight sectors in the red speaking to what mike is saying about there being more stocks down than up today. At the bell, were up 0. 9 the nasdaq composite a record closing high up 2. 5 welcome back to closing bell. Im sara eisen mike santoli joins us. Take a look at how we finished up on wall street. We were down more than 160 at the lows around the open led higher by microsoft. That was theme today for technology the s p 500 up. 8 and did you see strength in the Consumer Discretionary group thank you, amazon. Closed up almost 8 . Also in technology, communications services, a lot of the faang names didwell the russell 2000 index closed lower by. 3 investors are awaiting earnings from dow component ibm well bring ut numbers as soon as theyre released. Instant analysis the first as she mentioned under the new siceo. Joining us to talk about the market, nancy tangler. And victoria fernandez joins the market conversation. Welcome to you first though, i turn you to, mike on the action we saw today which was a bit of a reversal from last week. The big story was the s p 500 finished up 1 the nasdaq finished down 1 on the week people wonder is this the end of the growth trade well, guess not. Well, at least not yet. Certainly too early to tell that i think we should keep in mind last monday when people were essentially saying that big down side reversal in the nasdaq 100 tight names is something decisive be careful what you say now. They now decided to levitate again. It is hard to know exactly what it means on a daily basis. And ill say the pullback and the big Growth Stocks did not do anything to disturb the longer term up friend and leadership profile and the rest of it its not a zero sum game either. Its not as if the big Growth Stocks have to fall apart in order for more cyclicals to work better i do think it makes sense even talking about the kind of bizarrely huge moves in mega cap stocks on no news like microsoft. I think its unstable backdrop you have a lot of speculation and the faster moving names. You set it doesnt have to be buy or bubble. Does that valuation gap, does that have to narrow again at some point i dont know if it had as to narrow on a sustained basis. Youll have the episodes where it just does get pulled apart too much the groewth stocks are expensive theyre not growing very much to match those moves. Yes, you have crowding risk. That is another thing that does happen i think you have a lot of crowding in names in terms of hedge funds and individual investors. That gets unwound periodically i dont want to suggest there is a free lunch zint mean there is one single way for the market to progress how are you processing the case loads in this country theyre starting to slow the economy again. Weve seen the rollbacks in the High Frequency data and sensing it in a lot of the ceo commentary from bankers, Airline Executives and others. We saw it trough in april youre right it really plateaued at this point in time. Were looking at what that means for the consumer consumer demand is key for us as were looking forward. Were trying to make sure that even though things are shutting down again or that theyre slowly reopening, maybe slower than people anticipated, that there is still going to be an opportunity for the consumer to spend. So not just the secular growth names that weve been adding to that youve been talking about but also looking at some names like a walmart that we added to our portfolio last week. We think those are going to be good plays if the consumer remains somewhat strong. Were going to be able to take advantage of that and continue to grow. So we think were going to see trends move higher it is going to be slower and we need to watch the consumer demand nancy, i know youre not concerned about the data points in terms of spike of cases given the huge amount of stimulus in the u. S. Do you think it will be a factor for relative performance between Different Countries and now might be the time to put money to Work Overseas which underperformed for the last decade i still think the u. S. Is the best real estate in town also the stocks are also beneficiaries of technology and the economy. But i do think it is time to take a fresh look at emerging markets and the Global Markets in general we increased our allocation recently not a huge amount. But it is a more attractively valued space and one that i think, you know, weve seen china begin to v recover if you will and i think well start to see that in other parts of the world. So, yes, i think that is a reasonable deduction for sure we got ibm numbers heading to tape we have them it is a beat on the top and bottom lines for big blue. Actual eps coming in at 2. 18. The street was estimating 2. 07. So an 11 cent beat there revenue at 18. 1 billion versus 17. 7 billion expected you can see shares are popping more than 3 in the after hours. This is another year over year decline in revenue the eighth straight quarter of flat or negative growth. The ceo has his work cut out for him. Cloud i want to mention. Cloud is making a major push posted cloud revenue of 3. 6 billion that up is 30 a nice beat there. The company says that cloud now compromises a third of total ibm revenue. Margins were slightly better than expected. No guidance, guys. Remember that ibm pulled guidance due to coronavirus uncertainties last quarter some thought it would perhaps reinstate guidance that did not happen i have to say, lastly, there is really no commentary on covid19 uncertainties or the path forward in the Earnings Release. Well certainly be looking for that awaiting that on the Earnings Call which kicks off at 5 00 p. M. Eastern thank you so much for that. Mike, for a long time, this battle for the company is trying to get people to focus on cloud revenue on 30 or red hat hef knew up 13 as opposed to the headline number which is flat as d said does the era of covid19 speed that up and help the market look at this as something thats not perhaps as some of the core economy stocks that has been labelled and bracketed in terms of share Price Performance at a certain threshold when the businesses do represent the predominant play you get when you buy a share of ibm, it will make a difference. Im not sure they have a halo effect but certainly the trends are moving in the right direction. The stock is indispensive by most measures. Its like 1 of the s p 500 value index. It gets penalized for that more than a benefiting from it. So seems like decent numbers but also, theyre not fast moving in terms of the customers adjusting to what the new realities are. A lot of subscription type stuff. Its no the as if it you would necessarily see the big drop followed by a big come back in this one quarters numbers just trying to figure out if this is were not used to seeing a beat and a share price jump i wonder if this is a case of low expectations and they manage to beat numbers or if it is looking better at ibm with ibm with that revenue beat and there is growth he in the hybrid cloud and everything theyre pushing on that has yet to really materialize into real growth thiscy hard one there are so many promises one of the Portfolio Managers and the dividend yielding and theyre waiting this out its only the dividends are half of Free Cash Flow but i just become concerned when you cant the company cant string together year over year Revenue Growth and it just continues to decline new management if you want to own it, you take comfort in the fact that dividend is 5 its been growing over 7 a year which is better than can you get pretty much anywhere else. Mike, want to pivot back to the Broader Markets. You mentioned how the vix dropped below certain key levels but one of the factors is the negative days is slightly bearish factor what is your take on where that stands it still does i think count in the negative column the putcall ratio is low recently does it show you very low demand for down side protection relative to high demand for upside exposure. I do think its some what mitigated by the fact that the volatility index which is based on index options trading has been at or above 25 for months now. That means in aggregate, Institutional Investors are well hedged up against the indices even if theyre not hedging individual stocks. I think there are signs of froth in the putcall ratios and other types of investors with exposures and the ratio of nasdaq volume to New York Stock Exchange volume is off the charts and showing just a concentration of upside speculation. Well leave it there. Thank you for joining us nancy and victoria, good to see you both well see you soon up next, much more on ibms better than expected Earnings Release and whether you should be buying the stock. Its having a nice nearly 5 jump after hours closing bell returns in just 9 90 seconds after my dvt blood clot. I wondered. Could another come around the corner . Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. Welcome back shares of ibm moving higher. The first Earnings Report under new ceo. The company beat on both lines its up 5. 7 in after hours. Lets bring in our analyst great to have you join us. What is the take on the numbers . Clearly moving nicely higher after hours. Why do you think that is yeah. You know, to start off with, it is nice to get a revenue beat out of ibm so 18. 1 million print. A few million ahead of the street thats a good positive and then you start to see a nice trend. The Software Segment is starting to show nice steady broej. You start to see the things that ibm promised theyre still able to do that despite all the covid19 problems so thats been the positive. The second part is they appear clean. There is no tax or stuff that is helping on the bottom line this is a nice clean revenue is this enough of a catalyst . Its a nice move today 6 enough of a catalyst to see this move from the bracket of value stocks within tech to Growth Stocks if people start to focus on the cloud numbers, the red hat numbers . You know, thats a great question you have glimpses of performance falling back a bit the big dynamic will be this is a great quarter. This is a great start. Did we string along a few more quarters until this gets right i think that is the big focus for people to get convinced that this time is different and can i get more of the quarters like the june one i have right there to what extent, i mean, is the pandemic impacting ibm weve seen it, you know, boost the business of so many other cloud stocks and tech stocks what is the direct impact here you know, i was trying to go through. I dont see them calling out covid19 a whole lot especially on the call in terms of what is happening to them now. Keep in mind, there are a lot of ibm business is contracts. It is rhythm in nature i think 60 plus of the rev knees or profits are reoccurring in nature. So in theory, covid19 should not have a big positive or a big negative impact for them for right now, it is morsteady as you go. The question will be, i think, in the next six months, if and as transformation accelerates, can red hat and the stock portfolio see an upside of it. What is the top question or top thing youd like to see from the new ceo . You know, the biggest thing that Everyone Wants to understand out of the company is how does the portfolio stack up in the next six months and the next six years as you go through the Digital Transformation journey and does ibm need to do more acquisitions like red hat on a smaller scale to get the portfolio to be aligned correctly over time . I think youre at 130 in terms of the price target on the stock. You have it at a neutral you are looking to raise that . Youre sounding more optimistic. Again, this will depend on what our forward estimates look like we dont have a formal guide out there. But if the trends that you have in the june quarter that are leading to the revenue in eps beat, one can be structural and can sustain. And certainly the stock has a higher life path ahead thank you for joining us. Up next, well look at earnings and if it theyre priced into the market can you always watch us on the gon e bcpp othcn a its easy to get lost in the economic uncertainty. The volatility. The ambiguity. This moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Stocks closed higher nasdaq closed at a new record high lets go back to mike santoli. Mike yes one thing that is clear in the early stretch of this earnings season is that analysts had cut their forecast a bit too far in the initial reaction to the covid19 crisis. Thats what this line says right here thats a v its not all the way back up to even but so far it is a V Morgan Stanley chart showing the net positive to negative earnings revisions in the s p 500. This is deeply negative. The obvious comparison being made is to 08 er in gnever got as bad as 08. That happened in mid 2009. That is a sustainable recovery in profitability there is no magic here i want to point out this is the year 2000. Back up above even so it was not necessarily a durable come back for corporate profitability. You have to watch how this develops i think looking into Third Quarter earnings estimates and seeing if you can get anything from the reporting this week, next week and the following week from companies that are suggesting that maybe even Third Quarter numbers are too low. That may be too much to ask. But it is something worth watching as we wait to see how long its going to take for s p 500 companies to get back to anything like 2019 levels of profitability. Right now weeshgs talking about next year at the earlier earliest. Seems tricky to do given that most companies are still using covid19 as a reason not to provide guidance or unable to do so they dont see clearly whats coming which, you know, shouldnt fault them for its pretty hard to predict. Sure. But also, mike, its not like were watching the cash and Balance Sheet metrics. The fed has dune a lot to clear up the clogging of that market what is it were trying to read the management tone and commentary i think its the management tone and also what management is doing in terms of what it can control on the cost side so what are they doing to try to preserve Profit Margins . What are they building in for budgeting in the coming quarters in next year what are they assuming on revenue as they build the budgets . All those things i think are coming into the mix. We certainly, i think, should be braced for some level of echo job reductions out there from Corporate America among companies that are not directly affected by the immediate shutdowns. But obviously have to readjust the footprint of the business based on what they think is sustainable here what if we did get more shutdowns even if we get a vaccine. What if we saw more shutdowns such that q3 and q4 really disappointed i dont think the market is set up for that really to see a backsliding of the reopening i dont think the market necessarily would take it very well you have to also say what would that mean for the market cap of amazon and microsoft and apple on a day like today is all that mattered but on a more sustainable basis, you have to think it takes more than just that i mean, the median stock is still well off the highs its no the necessarily saying things are back to normal. But the average stock is saying were going to get there before lets say the end of next year back to normal mike, thank you see you in bate. Companies furiously lobbying for piece of the next covid19 stimulus bill. Next, we discuss which industries could be the big winners and losers for more relieve money from congress. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. Our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Nasdaq closing at a record high there were performers that helped drive that move amazon jumping 8 after they both set street high price targets, 3,800 for Amazon Microsoft climbed about 4 tesla finished the day up nearly 10 . And over on the big board, ibm up nearly 5 now in after hours trade after just repeating reporting a beat on both lines up 7 following the earnings the knew beat is impressive we are less than two weeks from employee emergency Unemployment Benefits spirg emergency that, is and congress is finally back in session this week negotiating the next Coronavirus Relief bill Industries Including banks, airlines and restaurants have all launched massive lobbying campaigns vying for assistance in that bill joining us now is bruce melman its one of the largest lobbying firms in the United States bruce, it goods to have you onboard. Just what does the lobbying see and frenzy look like around this next stimulus that is coming out . How active have you been well, gosh. Folks have been active my firm and every other firm, you know, as im sure you report all the time a huge amount of the economy staying afloat right now particularly given the failure to attain the disease the way we have seen before in other developed nations is congresss support. And the coronavirus packages are the keys to businesses surviving. There the is probably one left package left in the two to three weeks that will be somewhere between 1 and 3 trillion. But a lot of businesses are worried that if they cant get support and the economy continues to struggle as a result of the disease, theyre going to be extinguished there is a lot of struggle to go around. How do you narrow down which industries and types of Companies Need it most all businesses are talking about the need for liability and the worry about a tsunami of lawsuits and what that can mean. You have many that are so clearly impacted travel and tourism you think of hotels and airlines p recommend clearly not using services you cant work from home if youre talking about flying, for example. There is a lot of concern in the Real Estate Industry the forbearance against foreclosures if they dont continue that and dont find ways to keep mortgage servicers or mortgages whole, there could be a lot of pain there many in the news industry are seeking support for government it takes schools, schools would like to reopen its better for particularly k12 kids if they can reopen and for universities, you may see a quarter of them go out of business if theyre not able to reopen they need help they werent prepared. They put in place what weve seen in germany or south korea to allow us to necessarily safely reopen schools. What sector is most exposed that really needs some kind of further stimulus and at the moment is the bills shaping up may not have it included well, lets see that is a double whammy question it seems to me that the travel and tourism is hurting about as anybody i can think of perhaps not to europe right now. Of course, im an american they wouldnt have me right now. I think congress is well aware of that. Every member of congress flies every member of congress will stay at hotels they all understand and everyone has them in the district they understand how important it is i think the central dynamic on the next bill will be both sides want to support families democrats in particular want to make sure states and localities have money or well see five Million People lose their jobs huge amount of pain and very unionized municipal workers. For republicans, the liability question i think they will come to a compromise on that the question is how much more theyre willing to spend and how far down the ranks of worthy businesses, worthy employers that people want to help and that probably comes down to a question of the white house. The Senate Republicans left on their own and stop at one trillion total the House Democrats have already said theyre happy go to three and change its probably up to the white house in terms of how much fiscal stimulus they need heading into the election. What about Small Business, bruce . Especially ones that cant afford big fancy lobbying groups i know theyre represented in some places. Are we going to see another ppp program . How are they expected to survive if they dont get the extra government money i start by noting, i have a Small Business as well not fancy, i hope. Youre 100 right. The majority of businesses in america are Small Businesses and to have a dynamic competitive economy you need Small Businesses to challenge the larnlge ones. One of the rare areas of bipartisan agreement is we have to figure out ways to help and protect and keep afloat Small Businesses you saw that with an extraordinary amount of money and additional money put out there. Right now the program is socalled ppp program through the Small Business administration some of that is structuring. They spent 75 of the money only on payrolls when many of them had rents and other expenses and we had all hoped and at times been reassured it was going to last a few months i think well see more money and more significantly changing and easing of the rules to make the program thats have already begun funded more accessible and less punitive for the Small Businesses that are finding it harder to get foot traffic for a while. Do you think this bill is going to pass first time or is there the chance it has to fail once or twice before it actually gets over the line . Like tarp did in causing a 750 point market swing i think it will pass before they all drop the mike and head out of town for the august recess and political conventions. Whether or not the senate has such goofy arcane rules, it its very conceivable youll see some number of tries before they finalize the sausages and theyre ready for service to the customers. But im pretty confident this will pass even if you have multiple days where you have to report that efforts failed and youll hear from leaders in both party to sense theyre going to go home or cancel their Party Conventions and stay in town that is usually bluff. Theyll get this done. Bruce, you mentioned your business itself was a Small Business did you take ppp money no. We didnt ask for it were not seeking it we dont need it, luckily. And we wouldnt like the look. There are a lot of really worthy and needy businesses and thankfully were not one of them bruce, thanks so much for joining us thank you thank you for having me today. Good to sort of see you again, sara thanks, bruce teachers are suing to hold the reopening of schools well ask sal khan how he is working with School Districts to help students learrete n moly time now for a cnbc update with frank here is the cnbc update california hair salons and barber shops can reopen again but they have to move the business outdoors. The governor announced the plan this afternoon he ordered salons and shops to reclose last week after new cases in the state increased a judge will hear arguments on an emergency request by georgias governor to stop atlanta from enforcing a Face Covering mandate and other covid19 restrictions. The governor says that atlantas mayor doesnt have authority to set restrictions tighter than state level rules. That hearing is set for tomorrow morning. European leaders are considering a new recovery package after four days of heated talks that failed to result in the deal reuters is reporting new plan cuts the grants to 450 billion and raises the amount of loans to 410 billion. It also requires nations to get approval for their plans before they use recovery funds. And thats our cnbc update for this hour. Sara, back to you. Frank collin, thank you up next, a large study out of south korea finds that older children spread the coronavirus just as much as adults suggesting that reopening schools could be tricky and could cause outbreaks. Well break down the back to School Debate with a pioneer in Remote Learning when closing bell comes right back stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. 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. I was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. It was an up day for stocks. The nasdaq was the star of the show closing up more than 2 . Best day since late april at a record high. The 28th record close of 2020. The names that led the nasdaq, tesla, zoom video, amazon. Com, citrix, a lot of the Technology Stay at home winners that have been driving this market for months now sharply higher huge moves for amazon. 1. 1 trillion company to move up 8 giant market cap moves of about a billion dollars on those names. Interestingly, the narrative around the market was two positive vaccine candidate results out. Usually that boosts the vaccine stocks airlines and away from home names. Hotels and cruise lines. Not so today maybe that starting to get a little priced in the today it was back to the mega cap semidefensive structurally growing winners absolutely. I guess they already had those cyclical stocks and good vaccine news to rally on last week so perhaps already priced in there up next, ready for a rally . Forecasts showing a huge surge in demand for e commerce warehouse stocks the big names veorshldinsts ou be watching when we return advee of a bigger world in a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Exlookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back ecommerce warehouse stocks to be a place for a big boost frank collin is here with a name to watch the Global Leader in ecommerce warehousing trading lower ahead of the earnings tomorrow when you look at the entire sector, well, its underperformed since july. Recent reports that demand will surge for warehousing as much as 72 over the next 18 months. According to new research from cbre, companies restructure the supply chains after the trade war and after the pandemic will be a driver forecasting retailers will shift from holding months of inventory to just holding weeks now grocery delivery also forecast to see a boom in demand with online ordering for the 1. 2 trillion industry going from 6. 6 of sales at the height of the pandemic to as much as 10 by 2025. Warehouse operators say the Space Dedicated to ecommerce has grown this year and that can increase with retail closures forecast to increase as much as 177 this year back over to you frank, does america have enough Warehouse Space to fulfill the ecommerce boom were seeing now in the projections say that will continue to see . I wonder if the stores that are closing in droves are getting transferred into spaces like this great question. The question is are people going to keep buying online and have it sent to their house look at the numbers for click and collect, that shows obviously a trend of people more and more going to online to buy things and then going to the store to pick up the item. Thats increased dramatically in 2020 alone obviously, the pandemic disrupted a lot of ways we shop. In june, 27 of people who bought something online, they picked it up in the store. That is not everything they bought online. They picked up at least one thing from the store that they bought online. Frank holland, thank you. One major issue for working parents and economists is will schools reopen in the fall parents my choose an all Remote Learning option for the children as florida educators sue the governor over plans to reopen schools as cases in that state rise joining us now, sal khan, the founder of khan academy, a nonprofit that offers education through online courses they work with School Districts across the country including las vegas, detroit, and houston. Good to see you again. Thank you for joining us we always discuss the various issues about Online Learning versus in person learning. One issue i want to ask you about is keeping childrens attention. I think all of us when we were kids would have not worked if it that had been an option. But teachers presence obviously made sure youre focused how hard is it to keep kids focused on a laptop or computer at home when theyre in their room by themselves it. Its a real thing you know, anyone who taught live with 20 or 30 or more students knows how difficult it is sometimes to keep their attention. Obviously it depends on their agegroup and what youre doing with them. But if youre doing it over video conference, doing it over zoom, it is that much harder that is talking to a lot of teachers thats what they struggled the most with. Obviously, can you have a few controls if youre the moderator on video conference. But if a student is really disengaged and can you imagine theyre on a computer, there is other windows open, its really hard to tell that theyre engage the. So there is all sorts of techniques weve seen teachers really experimenting with where theyre, you know, cold calling students making sure theyre participating. Its no longer about lecturing over zoom. You have to really pull the students out of the screen and the other big question, of course, is on the wealth divide in terms of whether all kids have access to the equipment and technology they need thats the Biggest Issue that i think the world is facing right now. Even in places where there have been heroic efforts to close the Digital Divide to get lap tops out. New york put out 290,000 devices. Miamidade, 200,000 devices. The local Telecom Carriers are providing Free Internet access even in those situations, were seeing a substantial number of kids not being able to engage. They may not have the support at home they may not have the right context at home. They might just need someone to be just have a little bit more oversight than they have and what were seeing is use of online tools before the crisis they were proportionate throughout the country but as we have gone to the individual School Closure distance learning, the affluent are continuing to use online tools in the same proportions as they were before but the less affluent dropped off dramatically this is something were working on very closely with educators and districts and states around the country. So lets talk about what is happening with your business, sal. What are you seeing . Youre a nonprofit you offer supplemental education for students online as some of the schools and districts take theyre not going to fully reopen for learning. What is your demand like yeah. So, you know, were a nonprofit. Our Business Model is funded with philanthropic donations there is two use cases of us precovid19 as, can you call stra steejic supplement. One is independent learners, the tutor that kids use arent country or around the world that otherwise families cannot afford and then a lot of teachers were using us even when you have a traditional curriculum, you need more practice you need more feedback teachers need a way to keep t k track of what students are doing. They all have different needs, different gaps, learn different paces. Thats why we had close to 100 mi million using us precrisis then the crisis hit. Our traffic was about three times as normal the. Our registration from parents, 20 times normal. Registration from students and teachers was five to ten times normal and we suspect given what is happening in the world going into back to school were going to see numbers at least that high so what were doing is first just keeping the servers on. Making sure we have the security, privacy, everything is working as intended. And then what other supports can we do to make sure that teachers and parents know how support to make sure teachers and parents lean on us even more normally in a curriculum might have five days, now two or three zoom sessions, its hard to keep the kids engaged land have to lean on supplement like this academy heavier. How much progress can be made in the months between now and when kids go back to school, weeks, i should say, in materials of making that experience as close as in person is that some easy lifting . Or pretty difficult . Well, to be clear, were not going to be able to replicate school even when the school is doing a perfect job. So people shouldnt expect that. But there are very clear things that we can do that can keep kids learning in core subjects of math, reading and writing so they dont atrophy their skills. People need clarity right now because they havent had a chance to think about what the circumcision curriculum looks like in math class two or three zoom conferences, where the student can work with the students, ideally its interactive, teachers ask students to ask questions and teachers are there to answer questions and help students set goals and then 30 minutes a day working asin chronnously at this academy where we can monitor the students time doing work theres got to be a lot of studies on all sorts of things, one will be on this experiment of Remote Learning its a hard choice for governors and teachers to make this fall so far the Health Studies are mixed for what it means for kids, whether they can transmit the virus. At this point given the trade offs on both the health front and on social front and learning and just developmental issues, is it worth it to reopen the schools this fall in this country with the viruses where they are flight . They are right now yeah, first im not a doctor, im married to a physician but im paying close attention to this, im on the board of my own Childrens School and the epidemiolo epidemiological data for young kids five and six years old theres not actual evidence it spreads. And theres good precedent from many decades ago when you had tuberculosis outbreaks for the spanish flu the school was able to transition into an outdoor type of model. I think those are the type of things, if you have the outdoor space its worth exploring especially for younger kids. For for younger kids the spread is not as obvious. Outdoors safer those are students its hardest to engage online and they need the socializing and community more than the rest of the Students High School students need it too but they are more likely to be dependent and stay engaged a lot of the social development emotions have already happened. Thank you for joining us, good to have you. Thank you thank you shifting gears, Kanye West Holding his first president ial Campaign Event on sunday and hes already under fire for controversial comments he made about famed ab ollishist, harriet tuanbm find out how that can Impact Partnership with adidas when closing bell comes right back jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Welcome back lets move on with earnings news hey, well, thats right this is on zions bank that stock was down as much as 3 petitioners and now down just a little over 1 in aftermarket trading about 1. 66 in aftermarket trading. The Company Reported an earnings miss that missed expectations by 3 Cents Per Share on the bottom line so well keep an eye on this one. Back over to you leslie picker, leslie, thank you. Rapper kanye west making a bizarre attentiongrabbing appearance in South Carolina this weekend, apparently restarting his longshot bid for presidency at a rally for supporters on a makeshift stage west made pretty controversial comments on race, slavery and American History listen Harriet Tubman never actually freed the slaves she just had the slaves go work for the white people. Hard to hear but said Harriet Tubman never actually freed the slaves and he threatened to cancel his partnerships guys adidas and gap pushing for representation on the companys boards listen to that in risk or no risk of losing Everything Possible i am not on the board at adidas, i am not on the board at gap and that has to change today or i walk away he wasnt using a microphone but he said it has to change today or i walk away, talking about boards shares of gap taking a tumble but initially jumped as much as 40 after the clothing line with west was initially announced, what was supposed to be is a tenyear partnership adidas stock soared since launching with kanye west in 2016 to really turn around that entire business in the United States as we show on this chart that we like to use. Up more than 250 since yrk eezys first drops so clearly collaborating with mccann can add a lot of clout, name recognition and trend setting and big money and share price reaction but can also come with risk, especially with Consumer Brands if you make statements like this, which are potentially very offensive, especially on Harriet Tubman adidas has no comment. We reached out to gap as well. No surprise there. Clearly, guys, kanye west and nike had a messy break up few years ago and partly was on the idea he was difficult to work with and while hes been a major moneymaker for adidas, the companies are going to have to start answering questions if theyre going to remain attached to him and if hes going to maintain publicly like this. Are you guessing theyre more likely to boot him or put him on the board . I have no idea. I know its been a huge winner for them but i dont know the answer to that question. Theyre not giving me any indication of that as well id be surprised if he was put on the board hes a Creative Genius and has sold a lot of sneakers, not sure it merits a board position. Presumably in negotiations gap knew about his history and there was risk with the reward and could have potentially brought upboard seat if he thought he earned one. Lets move on to microsoft, and tesla, names of the week. No doubt about it by the way very unusual to have the market up with most stocks being down watch if theres a divergence to be reconciled in next couple days. Thanks for watching closing bell, fast money starts now. Thanks for watching fast coming up shares of pellegrioton sprinting and major deal in the consolidation sectors. And later the cofounder of the premier Lacrosse League paul rabil with his thoughts on restarting during the pandemic back to stocks nasdaq throwin