Transcripts For CNBC Closing Bell 20240712

Its up about 0. 3 today the dow as we said up over 1 at session highs. The sara crazy to see the s p 500 just wiping out all the pandemic losses the todays show, clorox is a standout winner. Up more than 50 so far this year people stock up on cleaning supplies but can the company keep up with the huge demand for wipes and disinfectants . Were going to talk to the ceo plus, well talk renovations, Small Businesses and more with the ceo of Angie Home Services of that company reporting earnings after the bell. Along with iac, tilray and many more names lets focus in on the big stories that were watching in this final hour of trade mike santoli tracking todays market action. We have the latest on the increasingly complicated stimulus discussion in washington and kate rogers has the details on a scandal involving former mcdonalds ceo steve east easterbrook. Mike, start us off with the Broader Market and the gap were seeing. This is a good illustration of how a broadening out of the market beyond the big growth stock win seners is restrainingh s p 500 even if it represents healthier activity below the surface. This is the year to date s p 500. This is up 1 below that all time peak back in february about 3395 is the intraday high. So its essentially 1 right now. Trying to approach that old high, that very high nasdaq stocks as they pull back a little bit which looks like a routine pull back for now, theyre really dampening things right now. Nothing really to argue with the kind of steadiness of this trend. Its been very quiet approach. It seemed we got close enough to the old highs to trend in that direction and make a go of it. Take a look at this ratio with the equal weighted s p 500 this is a fiveyear chart. The average stock versus vet large ones then you have the crash and look at how erratic its gotten and emotional. Its going between the huge winners and the average stock on this kind of i would say not just erratic but very much an onoff way it is a binary thing this is a reflection of things that a handful of stocks, five or seven, represent a massive percentage of the s p 500. So it is the few stocks turning on when this is going down and then underperforming and then this line goes up it could arguably be looking like kind of a violent thrashing bottoming process for the average stock. Well have to see how that plays. Guys yeah. Mike, lots more to dig into with you on the markets throughout the show apple, of course, the exception in terms of the tech names up comfortably 1. 7 . But lets move on and get to the latest on government stimulus. President trump signing four orders this weekend aimed at extending some benefits. Though theyre likely to face legal challenges we have the latest in washington there is no contact between the administration and democratic leadership either today or over the weekend according to aides this comes as President Trump tweeted that democrats want to make a deal and they know his phone number now on cnbc this morning, the treasury secretary said that no compromise is possible as long as democrats remain unreasonable he said state and local aid remains a key Sticking Point we want money for vaccines, hospitals, rental assistance and we have given them flexibility and we offered more money for state and local. But were not going to give a trillion dollars to state and local. Thats just not a reasonable approach now the four executive orders signed by the president are projected to cost 165 billion in the short run over the long term that, number is more like 10 billion because most of that money is simply deferred or has been allocated as a result, democrats are calling the president s actions meager and say its up to republicans to come back to the table. Guys i guess one of the big Sticking Points of the last month though was Unemployment Benefits and seems that with this executive order offering that one has been conquered. There are still state and local as well as limited liability issues but some progress could we frame this as even though politically it seems like theyre clashing more than ever well, progress in terms of perhaps getting workers actual cash but one of the essential questions here is how many states are actually going to participate in this program . This is not automatic by any means. The states would have to request money from the federal government and it looks like they might have to kick in some of their own money as well so depending on how those rules are actually written and what states have to do, well see how many workers end up getting the checks at the end of the day ylan, thank you a bombshell lawsuit from mcdonalds alleging that former Ceo Steve Easterbrook committed fraud and lied during the companys internal probe into the conduct. Kate rogers with all the details. Kate thats right. Mcdonalds suing the former Ceo Steve Easterbrook related to the firing last year for sexting in a consensual relationship. This includes new allegation thats easterbrook had physical sexual relationships with three mcdonalds employers in the year before he was fired. He also approved a extraordinary stock grant worth hundreds of thousands of dollars for one of those employees during the relationship and that he lied to investigators in 2019. It adds that internal investigation uncovered photographic evidence of physical sexual relationships while he was ceo with three employees. This was discovered as easterbrook did not delete the emails off of the companys server the they want to scale back the compensation package in the estimates of tens of millions of dollars by firing him for cause instead of without cause we reached out to lawyers for comment and bring you anything else we hear current mcdonalds ceo writing in a letter to the companys employees that mcdonalds does not tolerate behavior from any employee that doesnt reflect our values they reflect a continued demonstration of this commitment back to you. And the public airing of some of the dirty details is pretty interesting and unusual. The New York Times take on it is notable you dont often see companies, you know, air this kind of dirty laundry in lawsuits. They usually just bury all the information, goodbye and good luck but the fact that were getting into this they compare it to cbs and les munves how unusual is this for mcdonalds and what corporate reckonning theyre going through coming out with the details. The i remember back when the scandal first broke, we were debating whether he should even be fired for consensual relationship thats right. It seems that they want to really make a point here that the culture changed under new leadership this is knoll tolerated. Some of the details that were uncovered were so scandalous and so against Company Culture that something needed to be done here as you said, really unprecedented. We cant think of another comparison cbs obviously, you know in, some way compares but this is a really strong move from mcdonalds, unusual in Corporate America and the details were eye opening fascinating a closing thought. I mean its extraordinary story on all sorts of levels but clearly mcdonalds had had to conduct a pretty deep investigation originally last year and the fact that the new evidence has come on the companys servers does raise a question about how deep and detailed the original investigation they carried out ff if this was new Evidence Base ond testimony from former employees that, might have taken time for mcdonalds to be able to uncover it does raise a question about how good an investigation they carried out last year if the new evidence come from their own email servers. Thats right. It seems that someone had given the board a tip about this and that he had sent emails to his personal email from his professional account, deleted them off the phone but not off the Company Computer and server. I think thats where some of the issues lie but certainly as you said, just really scandalous new details that we were not expecting on the story from last year yeah. Crazy. I think also the original investigation they only looked at his work sanctioned phone and didnt look at all the emails on the server was the discrepancy. Im sure. Crazy story dow up is 343. After the break, s p 500 inching closer to an all time high but were going to talk to a fund manager who says shes gone from bullish to moderately bearish and she says a major die am nallic shift is coming. Youre watching closing bell. vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. 48 minutes left of trade near session highs on the dow. Boeing and caterpillar leading the charge were up 340 points. Big divergence between growth and value stocks today with the s p 500 value up almost 1 growth falls our next guest is forecasting this shift and says its important to Pay Attention to the change in market leadership. Joining us now for more is mili gilbert. Are you saying no more big faang mega cap stocks in the lead . Its great to be back on air. Thank you for having me. Yes, thats right our forecast is for change in leadership. In the stock market from large growth to smaller and value stocks like what so today youre giving a runup in energy, industrials and materials . Financials still kind of lagging. Which of the groups do you like most most is the reflation trade when you think about the decline of march and the beginning of the year, a lot of the decline centered on some of those more heavy Industry Sectors but as we start to think that an economy can recover, we may get a vaccine, you start to think about a reflation trade which should favor some of the same sectors that youre mentioning in which already are improving theyre momentum the other part, is of course, the role of sentment do those sectors need a vaccine in order to continue that rally or do you this i that theyre attractively valued enough that they can rally regardless i think it really is important to look company by company ratheren that sector by sector and within sectors how expectations are priced. And how theyre able to reemerge. And within the leadership, not just looking at individual sectors, but also at things like large versus small there is really a lot more emphasis on stock specific risk and the market like this because and you find Companies Whose business mod rlz moels ar favored by the shutdown and then also the reopening no question, if you look at what replace is from monetary or fiscal from all over the world thats happening but the next step then is to get comet going. And going Strong Enough to bring these sort of deeper value plays into focus why do you have a yield around. 5 if you look at the divergence between let bounds that weve seen in a lot of the stock market and what is happening in the real economy, no, certainly. Even when we look at the unemployment numbers that came out last week, better than expected, were still losing over a million jobs. Thats definitely not good so we have to talk separately about what is happening in the real economy and what is happening in the stock market. As you know and as you discussed often on the show, the stock market is a forward looking animal and so oftentimes it will start to price in the economic recovery before we see that recovery but this is also baking in expectations about how Monetary Policy and fiscal intervention will be digested thats a really big part of the thesis that the stock market is baking in right now. When it comes to actual reflation, it starts to matter more about whether all the money thats being put into the market is actually getting spent and by whom so then you also have to ask questions about divergence potentially between the Consumer Spending and Business Investment as well. What do you make of european stocks i mean, which ever the three major indices you look in the u. S. , they comfortably outperform the nasdaq but all three most of the european indices. Is there value there our outlook is currently stronger for the u. S. Than it is for europe and some of that, you know, we already have seen in the trends. Its encouraging that europe has come together on the policy standpoint to try to work as a union truly. And organized way towards a recovery but right now were still waiting to see some of the effects of that come through in the numbers. And in the data and its and our outlook, not currently being reflected as well as it is for the u. S. You know, lets wait and see one thing that is really encouraging to me when i look at the europeans perspective on the recovery is the way that they have been embedded broader social environmental goals and the intention to build back better you know, really thinking about how to advance the climate agenda how to advance certain social priorities in the way that theyre reinvesting and, you know, i have to think that for the long term that thats going to give europe an edge i hope that well be able to have deeper conversations about those types of topics as we plan our recovery here in the states as well. Mili, thank you so much for joining us pleasure to be with you thank you for having me on weve got just over 40 minutes left of the session. Weve been at session highs for the show so far. 350 points on the dow. That leads the charge of the major indices. After the break, barry diller tries his luck at the casinos. Nestaction in mgm and how both companies are looking to cash in. Thats next. Rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ 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. Contessa brewer reports with more on that story hi. Interactive corporate announced a billion dollar, 12 stake in mgm. Investment in the stock. Iac says it likes how mgm has embraced the online opportunities going asset light to invest in digital platforms and mgm chairman paul salem told me today, Sports Betting will be massive. Iac has run more online Commerce Business than we ever have in fact, they may have forgotten more about ecommerce than what we know f i were asked who could you pick that would help your company the most i would have picked barry diller well, to that end, mgm is inviting iac to joint board of directors. Mgm stock skyrocketed today. Its up almost 14 today iacs decline about. 5 or so. I want to look at draft kings now. Down more than 7 . This certainly adds some muscle to a competitive marketplace they made a lot of the deal with bar stool. Its down more than 7 both of these stocks may be struggling covid19 could disrupt College Football but a crowded competitive marketplace right now, wilf. Its an interesting deal. A lot of the casinos are up today when, for instance, there is news on mccal that could be very good for them thats right. Theyre going to start issuing tourist visas starting on the 12th of august that is extremely good news. This is really been holding back any kind of significant ramp in the stock. So what we saw today is that those casinos that have properties, mgm but certainly wynn, Las Vegas Sands and melco which is listed here but based in hong kong, all bounced on that news today. Las vegas sands up 7 . Wynn up more than that sara yeah. A lot of the Consumer Discretionary names doing well today. Contessa, thank you. Still ahead if, youre looking for closrox wipes you ma be out of luck until next year were going to ask the ceo about the supply shortages and much more coming up on the show as we head to break, a check on bonds for you welcome back dow is up 357. Check out shares of kodak today sinking, down about 30 . The white house says it will not proceed with the loan worth more than three quarters of a billion to produce drug ingredients unless allegations are cleared the sec is reportedly investigating the disclosure of the deal and the options granted to the companys executive chairman right before. Shares down today. Still up significantly since the deal was first announced im surprised its not down further. I mean this is a stock that went up 1500 attracted retail buying and everybody on this deal announcement and according to reports, pretty shady behavior from executives here issuing options right before this deal was announced i know. On the surface, seems extraordinary. So extraordinary does it seem. It makes you think that once the investigation is finished that there wont be any dodginess or insider trading. Because if you were going to take part it in, you do it in a less obvious way i mean, it is baffling and we kind of look forward to the results of the sec investigation. As sara said, still up 400 or so in the last month s p 500 by the way, near session highs. 0. 2 as we stand time now for our daily coronavirus tracker. South dakota is flashing warning symbols. Thousands of people gathered for the 80th annual sturgis motorcycle rally the largest in person gathering since the start of the coronavirus pandemic south dakota seven day daily case average is up 16 and rate of person to person spread is one of the highest in the country. Hawaii is another state to watch. The seven day daily case average is up more than 120 meantime, a new report found that nearly 100,000 children in the u. S. Were recently infected with coronavirus this comes as schools face the foremidable task of reopening. Some schools in georgia and indiana had begun in person class to switch back to online instruction after recent virus outbreaks. Yeah those 100,000 kids diagnosed just in the last two weeks of july so something to watch into the fall time to get a cnbc update with Frank Holland sarah, heres the cnbc update athis hour the white house and t the gettg battlefield is where he wants to get the acceptance speech for the nomination he said hell decide soon on the location for the august 27th speech across much of europe, a sweltering heat wave continues to push temperatures into the 90s. Brussels, children played in fountains to cool down highs are expected to be back in the 90s tomorrow in england, a pair of glasses believed to belong to gandhi they were given to the pair in africa he was known to give glasses to people that would help him out they were expected to gore to 0 20,000 but presale bids are at 65,000. Thats our cnbc update for this hour back to you. Thanks for that, frank. Weve got just over 30 minutes left in the session. The dow up is leading the charge 350 points at session highs, 1. 3 the s p 500 up 0. 2 . Nasdaq continues to lag two sessions in a row of pretty significant rotation out of the nasdaq into the likes of the dow and that growth into cyclicals that comes with that that said, apple still doing pretty well today. Up 1. 2 . Continuing its extraordinary recent surge the russell is doing well today as well. Up 1. 25 banks leading the charge still ahead, how long will the gold rally last . Prices near all time highs the above 2,000 an ounce. Well ask the head of commodities whether he thinks there is more upside ahead were back in a couple minutes first up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Weve got less than 30 minutes of trade dow is sitting near session highs. Theyre up 300, almost 50 points big gains today from the likes of boeing, cat pill area, the industrials are having a strong day. Nike is also trading in near an all time high. The biggest losers are microsoft and disney as far as the s p 500, we are less than 1 away from a record high hard to believe. And the groups taking us there today, energy and industrials and materials. Technology and Communication Services which have been the big winners in the market. Thats why the nasdaq is down. 5 obviously, outperforming for the year still up doubling bije digits the s p 500 is now up 4 year to date and. 9 away from a record high i know weve been there already on the nasdaq. It yael i is milestones given all the negative news out there around the economy and consumer competence and Everything Else well get retail sales later this week. Wow. You no he what beats the nasdaq is gold year to date. Up 33 and silver up 62 year to date which is pretty extraordinary. And were joined by Goldman Sachs head of commodities jeff curry to discuss all of that jeff, great to see you thanks so much for joining us. I mean, you put a note out a couple weeks ago that grabbed headlines that actually called into question the long term stato status as the dollar as reserved currency for the world how realistic is that a question in your mind were pointing out the way the market is pricing at that point in time in the sense that we use the title searching for a new reserve currency i think what it is more of a ding in the confidence of the long term value in the dollar. In the sense that real Interest Rates have collapsed right now theyre trading minus 125 basis points in that piece we raised our forecast a gold to 2300 an ounce to reflect a real Interest Rate of minus 200 basis points i think keet point there is that in a debt accumulation phase through lots of stimulus to deal with the covid19 crisis, thats putting outward pressure on real rates. You can think of it as a devaluation of the dollar. That is putting upward pressure on gold in other Precious Metals the nakt fact that we broke new high, does that open the possibility to surge meaningfully from here you know, i think we deal with strictly in our fundamental outlook and so i would argue if anything given the runup weve seen both in gold and silver were due for consolidation phase which is why i would say, hey, this thing is going to take a breather i think the key points is that we still have a lot of time between now and vaccine and normalization and growth and that means youre more likely than not to see more stimulus that is more outward pressure on real rates and more upward pressure on gold prices. They have stolen a lot of attention, jeff. A lot of the commodities are up strongly over the past three months i mean oil prices and generally most of the Energy Complex some of the other commodities like lumber is up 80 . That is a housing story and weak dollar story is there broader inflation story happening here beneath the surface thats coming . Is it weve seen what happened to food prices it could be getting to be bigger i think can you look at the Precious Metals that we just talked about then you can look at the cyclical or base metals, the ones that go into investment and capex. That story is real it is really driving what is going on in china. Very strong investment demand from a far east weve seen strong investment demand capex commodities. The energy commodities, id say theyre more lackluster. Oil is trading side ways around 45 a barrel but i want to go back to your key question about, you know, inflation potential here the way we like to describe gold is its a hedge against debasement lets go back to debasement . It means adding base metals into Precious Metals. Youre debasing the gold so if you own pure gold is a really good hedge against debasement it does not necessarily mean innation when we look at the best hedge against inflation, it is actually oil today year dueling with crisis but the debt accumulation today could impact the probability of inflation further out. And we think that what is the best hedge fund, oil definitely is we like to think about it, oil hedges unexpected inflation equities hedge expected inflation. And so we think about that spot inflation, thats going to be captured one last point think about all the bond positions out there. The only there is only three asset classes. You have equities, bonds and commodities. Theyre the hedge against the impact that inflation can have on the bonds i saw a high yield bond was issued for 2. 8 . You take the average bond portfolio and it has to have return of 3 to inflation into they have a problem. That brings to the next question bonds have run up aggressively after what has been a sort of almost lost decade for gold, do you feel that the clients you speak to fund manager allocation to gold is still low even though weve had a runup this year that there is significant scope for Fund Managers to shift out of bonds into gold as one of their hedges against risk more broadly . You know, in europe, you look at the fundi managers are max positioning for gold theyve been dealing with negative Interest Rates. As a result, they have actual lyn creased their holdings in the rest of the world, you look at it it is still by low the highs even the highs still are not that large i think one of the key points, we havent seen inflationary pressures in the 70s what we see what is going on, the average bond portfolio has declined tremendously. The positioning in commodities is extraordinarily light so once you do have any type of inflationary risk, youre likely to see a huge increase in demand for commodities as an offset inflation hedge. In fact, when you think about, you know, the only hedge out there that is really available has to come from the commodity complex. I want to emphasize again, its not gold contrary to what many in fact, goals and tips statistically are really bad inflationary hedges. The inflationary hedge is the raw, pure commodities like oil and metals jeff curry, thank you for joining us great thanks for having me Goldman Sachs after the break, a sneaker surprise for footlocker. And is twitter eyeing tiktok those stories and more when we go inside the market zone. What happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. 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Welcome back were now in the closing bell market zone. Cnbc senior markets commentator here to break down the crucial moments of the trading day today we have paul hickey with us as well good afternoon you to, paul. Lets kick things off with the Broader Market nasdaq divergence continuing to day. The dow and s p 500 on track to close higher for the seventh straight day each. The nasdaq underperforms were near the session highs on the Broader Markets. The dow up about 1. 25 nasdaq down about. 5 . Mike, two sessions in it a row significant rotation from tech into value i mean, those Value Investors must be celebrating. Two in a row. And now in fairness, value is well off the lows. Its only been two days. The youre right to be a little skeptical about calling some kind of wholesale shift in investor priorities right here its hard to argue with the market that is broadening out. That you have autos and Home Builders and transports leading the way. Semiconductors are green i wonder though, there is a certain amount of a tinker bell effect, so i think this is mostly portfolio reallocation. People really latching on to obvious signs of massive macro acceleration even though the ji signs are generally positive i like the tinker bell effect. Paul hickey, whats the why . Why do we get the days where value is so significantly trumps growth was there a catalyst is there a better news open the virus . There is one or two day portfolio issues i think we talk about breadth of the market a lot less than 20 of states have rising case counts you have the relative strength of small caps versus large caps. So when the breadth of positive case counts goes down, we have seen small caps utperform. Mike is talking about small value versus growth. Its more impact the stocks that were hit hardest and during the initial outbreak of covid19 and negative news on covid19, they tend to lag. Often value stocks it is also small caps. Its also some Growth Stocks that were just negatively impacted by the virus. You look at hotel stocks, casino stocks and the air heinz so i think its there is some value growth i think its more of the reopening versus closing trade the november election is now just three months away theyre starting to position themselves accordingly futures and currencies are starting to indicate a big spike in volatility around november. Paul, you say the elections impact over the market is overrated. Were into the volatility instrument window. And youre seeing some fears rising that it could get crazy tequity market hasnt seen that over the next few months. Thats an outlier. We do a lot of information on Market Performance during different Political Parties and make ups of congress but when you take a step back from it, it is a little bit overrated the impact of Political Parties on the market and makeup of Congress Just look at the two last president s obama and trump. These two individuals couldnt be more different from each other in every possible way. Yet under obama, two best performing sectors were tech and Consumer Discretionary under trump. Energy, worst performing sector under obama. Worst performing sector under trump. Of the six sectors i believe it is that outperform the market under underperform the market during obama, five underperformed during trump. And the three sectors that have outperformed the s p 500 under trump, tech, Consumer Discretionary and health care, two of those are outperformed under obama and health care is pretty much right in line. I think it is more of the facts and broader macro trends that determine how the market is going to the Broader Market is going to perform. I think within Small Industries like the defense sector, can you see some impact. The big factor over the market right no you is covid19 and neither trump nor biden is going to stop covid19 so they can try all they want. The virus is going to do what the virus does and were going to have to react accordingly. I guess, mike, if if you continue not to have a stimulus deal, there is dine mix and stimulus that we dont currently have but there is a lot of ifs in that im surprised the market hasnt been hit more. Zblst to. To a degree, yeah i think the market probably still thinks something more lasting gets done. The other thing is we always talk about how fiscal policy operates with a bit of a lag there is a huge spike in the savings rate and theyre still with us. Not that most households dont absolutely need the added benefits if they were already receiving it but the aggregate i think the economy has a little bit of a cushion at least for weeks not months lets move on to tiktok who may well have another bit of u. S. Operation we have the story. Hey, wilf twitter could be another long shot option for tiktok according to the journal, a twitter combination over microsoft acquisition, that may actually help with antitrust concerns but still lots of questions. They have about 8 billion in cash less than 30 billion market cap to microsofts 1 1. 6 trillion value. Another report from the south morning post, poured cold water on the notion of any company doing a deal citing a source that said the probability of microsoft buying tiktok is not higher than 20 and the chances of twitter buying it are even smaller back to you. Thank you so much for that. Mike, fascinating to see twitter linked with lots of discussion points on this from the fact that they closed down vying already and then just the size of twitter relative to what they would be buying. All of the question marks that continue to ami are just music to facebooks ears presumably, yeah. I think the size of twitter is the least relevant i do think that this is probably a financeable deal i dont know if it would take private equity partners. But the approval required would be massive hurdles there is a sense out there that there is a lot of chatter from both sides trying to kind of spin exactly whats going on and how much interest there might be in the asset and whether, nkt fa, there is a deal done its hard to really tease out what surely is going on. But it all comes down to the fact that microsoft would seem to have the insidetrack almost in any scenario. If its going to be sold. I think interesting that twitter is up on the news. Investors like it. The fact that will is interest and whoever might get this sara, states are getting word from washington that they wont have to put up any additional money to pay workers 300 in additional benefits. This is related to that executive order that President Trump signed allowing states to request the money from fema if the states kicked in an additional 25 match or 100 that would have brought the total benefit to 400. However, two states have told cnbc that they received guidance from the department of labor stating that the Unemployment Benefits theyre already paying to workers, that will allow them to qualify for the match this is important because one of the Big Questions around the program is how cash strapped states would be able to come up with that additional money the guidance that was obtained by cnbc explicitly states this option requires no new expenditures of state funds beyond what the state would already be paying out. In other words, the states dont have to come up with any new money. They can request it from washington and the tradeoff for workers is instead of 400, theyre getting 300 a week. The Vice President has been leading a Conference Call with the nations governors this afternoon. Well see if this issue comes up during that call guys so just to clarify, the governors like i see newsom saying we cant afford the additional money that trump order is making us put out for unemployment thats not necessarily valid the government will be stepping in with that money well, there are several options that states can take they can count the money that theyre already paying out as part of that 25 match that is according to the guidance that weve seen there is a lot of confusion among the states about how this program would exactly work and if they would have to put in that additional money now it looks like they wont. However, workers wont see the same level of benefit if they dont. Thank you so much for that mike, i guess the market still not reacting as we discussed all day really to this story. The market will prefer either way a full congressional deal even if the margin is encouraging for the believability and scope of the executive order deal yeah. I mean it helps. It goes in the right direction it doesnt solve the larger issue. The market today, even if you look at this cyclicali he ty of stocks, it is global we cant forget the industrials are very global. And we have manufacturing indices around the world people cant afford to eat at restaurants. Its about the lornlgarger cycl here. Which raises a question, paul the what kind of economy is the stock market factoring in . Especially as we get participation from industrials, no question, you know, that estimate is that were going to get a short really, really deep recession. And come out of it on the other end and things like vaccine and stimulus are going to help cushion the blow what about the longer term damage that economists have warned about millions of more people are on Unemployment Benefits for long period of time the fact that theyre still 13 million bem w Million People who lost jobs since pandemic the longer term issues, does that factor in the market . You know, i think right now the market is pricing in a quick a relatively quick recovery whether if that is the wrong idea by market i dont know the biggest pandemic we ever faced was back in 1918 and that was over the course of a year one of the indicators is caterpillar and machinery sales. Throughout the last two turning points of the numbers, asia was the first to turn around weaker dollar on top of that that will be good for the industrials like were talking to have more of a geographically diverse exposure simon, Property Group may be on the hunt for a new solution to save Ailing Department stores jumping after theyre in talks with amazon shutter jcpenney and sears stores into amazon warehouses the Company Operates 63 jcpenney locations and 11 sears stores according to the recent public filing sun Property Group expected to report results after the bell this evening this is a fascinating sort of angle. And again, it shows the benefit that strongest player in amazon has of picking and choosing when it wants to reinvest or buy certain little assets. Sure. On the path to becoming truly ubiquitous in all ways and i think this is also a model target is demonstrating that you can really adapt store spaces to being delivery hubs and that is not something that i think is novel in this case it certainly makes sense, you know, at the mall level. I cant imagine what is happening in america retail. We knew the boom in ecommerce was happening. This just sped it up so fast you see about 31 advancing volume on the New York Stock Exchange that is certainly solidly positive take a look also at one measure of how it is more aggressive, more leverage, more cyclical stocks outperforming that is the high beta index. So thats exactly an encapsulation of that aggressive tone volatility index, on a monday often you get a perk up a little bit. It did earlier now down to 22 it continues to go in the right direction. 20 is a level thats sort of broadly in a long term basis considered to be the line between sort of normal markets and something that is, you know, going through a little bit of stress on the upside. Just over one minute left of the session. Quick mention for the commodities. Oil is nicely higher by 2 gold is up again it is just a third of 1 having seen a pullback on friday silver higher up 5. 8 . The dollar is arent flat line for most of the session. Just positive. Up. 2 as we stand the dow is up 360 points or 1. 3 not far from the high of the session. It was 370 points 15, 20 minutes ago. S p 500 up. 3 nasdaq is down 0. 4 . That rotation that we saw on friday continues today out of the tech stocks into more of the value names as weve been discussing that means the russell 2,000 is higher as well by a full 1 . Energy and industrials, the clear winners up 3 and 2. 5 respectively Communication Services and technology bottom of the file. As the bell goes, were higher on the dow by 1. 3 s p 500 up. 25 . Nasdaq down 0. 4 take a look at how we finished up the day on wall street higher the dow up 359 points. They had the biggest gains because of outside influence from big heavy market cap names like boeing and caterpillar. S p 500 up about. 3 the energy and industrials, materials leading the charge there. You see were a little under 1 what we do for an s p 500 record nasdaq, closing down technology lagged. 3 . Coming up this hour, quite a business to be in during the age of covid19. Shares of clorox up 50 this year were going to talk to the ceo about the consumer demand for his product in a few minutes and how theyre keeping up with all the demand its a cnn exclusive joining cnbc exclusive paul hickey is with us first to you, mike santoli, on this strong run for stocks whats been driving it what stands out to you in todays action its an answer to the prevailing complaint about the market the last little while its only dominated by a handful of stocks and if not for the giants of the nasdaq then where would this market be well, theyre down. 5 today theyve actually kind of slowed down in terms of their overall absolute performance lately. And then there was other stocks to step up and essentially the market as a whole was not really prepared to back off in a big way. I i do this this movement of buying interest is way from the big defensive growth names into other areas is probably encouraging. The one thing to look out for now i think is if the s p 500 does nudge the last little bit up to the former highs or a little beyond that, it seems like it might coincide with final numbers in the stock price. They got ahead of us if in fact we go in a Straight Line or relatively quickly back towards the highs or just above them. Mona, are you surprised that strength of the market, particularly the cyclicals and value stocks over the last couple days in the light of not having a full stimulus deal from congress yet yeah, you know what we were talking about your traditional pandemic playbook, that included, you know, large cap technology, gold, treasury yield and really high quality Investment Grade bonds what weve seen over the last few days is that pandemic playbook is starting to soften there hasnt been a real catalyst for it. But what were looking for broadly is for this s p 500 rally to be sustained as mike said, do you need to see a broadening out of participation. In order for that to nap a sustained way, we think there should somebody sort of shift in fundamentals too whether that is better virus trends which were starting to see. Whether that is, you know, the arrival of a vaccine solution which we had several players now in phase three they also is supportive generally of cyclicals and then, you know, broadly speaking, were looking at, as you mentioned, the stimulus bill i think for the most part the market is sanguine about this. They maybe have liked what President Trump has done but more importantly, theyre probably expecting congress to come together as they always have in the past perhaps very late minute fashion to provide additional stimulus which does point money in the hands of consumers, households, also provides additional ppp for the Small Businesses as well so all things that could ultimately help this cyclical rally. And there is earnings also. Foot locker is one i want to note today they came out with a huge surprise today they said they preannounced samestore sales for the quarter up 1 . Analysts were expecting that number to be down 24 . They also indicated they were profitable something that was not expected. So, i mean, either analysts are completely wrong in the absence of guidance and not, you know, calculating. They had a good tell with sports saying that samestore sales growth a few weeks ago its either the analysts or companies are doing a lot better or there is a lot more Consumer Confidence out there that maybe people expected. Clearly the 1200 checks went to sneakers and the market is recognizing. That i hate to say, if you look at, for example, on a price to sales basis, footlocker is near the lows of the 200 , a8, 2009 recession. They dont expect a sustained move higher. Secular issues with the business model. I find it interesting can you have this big uptick in expectations and people say, wow, what a win fall for this company. But still theyre in a relatively distressed position. Stimulus checks and pent up demand boenl both of those things are temperature for airy how Many Companies are getting a temporary boost by those two factors that will go away after this quarter yeah, i mean, i think a lot of consumers are getting that extra benefit. That was the intent of the program when it came out and especially worked. The key now is will there be enough will the bridge be long enough to where people are comfortable coming back to work . That remains to be seen. When it comes to, like a company like foot locker, as you said, it wasnt a thriving business before pandemic. It wasnt thriving during. Its not thriving after. So youre going to tend to see that a lot more. Companies were not giving guidance in the First Quarter earnings season hence the results this quarterer that are just off the charts relative to expectations earnings rate is near the highest in since going back in 2001 sales as well above average. And more of the higher percentage of companies have raised guidance this quarter than weve seen over the last close to 20 years in a given earnings season. Its very strong there was a lot of negative sentiment heading into at the end of the q1 earnings season so were starting to see that play out now so, you know, its all a matter of how things play out from here none of us have a crystal ball and then how the two are going to work together. Good earnings across the tape we have results. Hi, wilf, tilray shares are down 4 after reporting earnings lets get to the top line. A miss 50. 4 million versus expectations of 55 million on the bottom line the company is reporting a per share loss of 65 cents unclear what the comparable figure that wall street estimated is for that. But going down to gross margins, another really key factor, key number that analysts are looking at the company says that gross margin decreased to negative 10. 7 from 27 in the second quarter. Saying that they took an invento inventory wrydown of 1. 6 million. That is a bloated inventory. Overfly is an issue that a lot of Cannabis Companies have been really grappling with. Weve seen that with Canopy Growth shares are down 3. 5 back to you. Thank you so much for that. Mike, looking at the chart it is almost back at 300 but i think it settled in 2020 to more around these levels and has some semblance of stableness relative to the years prior obviously under a billion dollars at this point. It was gold rush, i guess, herding back in 2018 now its how can you operate here when this business is kind of forever on the company. Its not free us in terms of full legalization. But, you know, certainly, you know, controlling what they can control i think is the rule for a lot of companies this quarter. We have breaking news on uber and lyft California Court has california has won the preliminary injunction against the Ride Sharing Companies uber and lyft we knew this was coming. This is a preliminary injunction that would force the Ride Sharing Companies to treat their contract employees their contractors, excuse me, as employees. And that involves benefits and froection froecti protections. This law was put in effect this year ub eastern lyft are not treating drivers as employees the this seeks to force them to do so. Its unclear how they will comply with this injunction. We have reached out to uber. Well reach out to lyft and have not heard back yet well continue to look at. This as you can see, shares of lyft a little lower in the after hours. Take a look at uber. They dipped on this news as well again this is partst on going regulatory battle that both of these Companies Face this he have a ballot measure in november to bring this to the voters and the last thing i would mention, wilf and sarah is just this morning, the uber ceo wrote an oped they have been proposing for many months now that the drivers should get some benefits but not be treated as full employees. So the result of this, guys, if ub uber and lyft have to comply, it can be drastically higher costs for drivers and riders pivoting back to the Broader Markets. Final thoughts what would be your top sector pick for the rest of this year yeah. You know, i think broadly speaking investors that have been very overweight in technology, gold, trade should think about diverse fig in the cyclical areas if if areas Like Airlines and hotels are perhaps too high beta, think about areas that will benefit from both areas some sectors in that camp include medical technology, you know, surgeries and et cetera start to open up housing in a low rate environment benefiting from a secular trend towards moving into the suburbs and esg broadly has become a focus area when you look at public policy, joe bidens campaign put out tremendous policy, funding towards areas like clean energy, even in europe youre seeing the similar trends really an area poised for growth these are just ideas can you think about if you want to broaden that portfolio beyond just, you know, the core pandemic plays paul and mona, thank you so much for joining us today. Thanks again. Coming up, an exclusive interview with cloroxs ceo on the explosive demand for his products particularly those disinfectant wipes amid the pandemic and whether the company can see that dand emcontinue were back in 90 seconds urance r veterans like liz and mike. An army family who is always at the ready. So when they got a little surprise. Two . They didnt panic. They got a bigger car for their soontobebigger family. After shopping around for insurance, they called usaa who helped find the right coverage for them and even some muchneeded savings. That was the easy part. Usaa insurance is made the way liz and mike need it easy. 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. Contessa brewer is us with Interactive Corp coming in with 726 million in revenue and a loss of 1. 13 per share. Unclear how that compares with estimates. The slos due in part because of the separation with match. Iac is a majority owner in angie which lists independently. That grew by 9 . They signed up more subscribers than in any other quarter. And dotdash, revenues grew by 18 . Decrease in search revenues because of fewer customer queries at least in part the billion dollar news today though is that 12 stake iac bought in mgm resorts. That really is a departure from Standard Operating Procedures for this company but in a shareholder letter, iac explains we believe mgm presented a once in a decade opportunity for iac to own a meaningful piece of a preeminent grand in a large category with Great Potential to move online iac just thinks that they can bring something to mgms table in the move to online. And they said, look, even if we dont, the value is simply too compelling to ignore an extended trading you see iac is just up just a bit. Sara yeah. Talking about going for value, Barrie Diller going for a big one. Well talk to angies sceo late. Shares of clorox are up 50 this year. Fourth Quarter Sales grew 22 as consumers stock up on disinfecting whipz and other Consumer Staples the clorox ceo joins us now. My biggest question which is relevant for consumers and investors is when we can find clorox wipes on the shelves again . It is really going to take until next year . Thank you for having me and thats a question that clearly is on everybodys mind were making incredible progress but the reality is that this pandemic is, of course, worse than anybody anticipated consumer demand for disinfecting wipes far exceeded our internal expectations what i do want everybody to know is that were taking our role in Public Health very seriously queer maki were making a lot more wipes. We made 100 million more disinfecting products this year. Were churning out one Million Units of disinfecting wipes to stores every single day. The reality is that theyre scooped up right away as soon as they arichlt brive but the reality is were making progress and focused on this and keep making more every quarter and we will think that by the year 2021, i know that sounds like a long time, but within the next six months, six to nine months well be in it a reasonably good shape. Demand permitting. The way i think of clorox wipes is something that could stay with us even after we get a vaccine. One of the sort of permanent behavior shifts that we adopt as a result of this pandemic. I think thats why people are surprised at your guidance when you announced last week that you expect a deceleration in the back half. Certainly providing an outlook right now is a little bit like looking into a crystal ball i think if you take outlook, it reflects the confidence that we have in the business the expectation that well see continued growth for sure. But its mostly also a reflection of the fact that we dont know how long and severe the pandemic will be we know there is a recession that will effect consumers and were also affected by fx. If if anything, this is a reflection of the volatility and uncertainty. But it is also a reflection of the aggressive stance that were taking in investing in the business were investing in creating more capacity and that costs money in the short term because we think that there is a unique long term opportunity for us to step change the growth trajectory of the company. I notice partnerships with businesses like United Airlines. They put closrox on there how do you prioritize those kind of customers versus the retailers like a walmart or a kroger that want to get the product to consumers so that everybody has access retailers and consumers are our priority we want to make sure that those that help others on the front line are prioritizing and getting the products they need thats clear so at this point the partnerships we created with United Airlines and amc theaters, theyre more the pilot phase. And the degree with which well supply them will depend on availability of the products which will ramp up over time but clearly, we have a great responsibility to serve consumers and retailers first and thats what were focused on ben, the peak of the crisis though there is a great kind of imperative not to price gouge for crucial products that all people needed. Given that were past the peak of the crisis and still such ferocious demand for your disinfectant wipes, is it fair for you to push out the price at least a little bit number we will will not do that you know, one of the core values is do the right thing. It was simply not doing the right thing. So we clearly incur additional costs in the manufacturing of our products and particularly because we use third parties and that tends to be a little more expensive. But, you know, its the right thing to do is absorb the costs. Increasingly were learning from studies and science that, you know, this virus is not necessarily being as transferred as much on surfaces as we originally thought we dont have to wipe down our groceries as much and use the disinfecting wipes z that impact your planning or your research and development . Are you working more on trying to get the disinfectant to combat this more airborne disease . From where we sit, the way we understand the guidance is there is no change compared to what it was early in this pandemic clearly, you know, airtoair through breath is predominantly how this spreads but both the cdc as well as the World Health Organization continue to recommend the use of disinfectants on hard and nonporous surfaces to keep consumers safe there is no change does it mean thats what were seeing in the marketplace also people will continue to use our products and other products to keep themselves and their families safe. We just showed some images of the clorox bleach products how much bigger is the margin on those disinfectant wipes which have seen the demand go through the roof relative to a big bottle of bleach you know, being a public company, i cant comment on that but what i can comment on is that the margin on any disinfectant product is part of our company. This is a case where were making a difference in Public Health and making a difference to shareholders by selling more of this disinfecting products. Ben, i want to get to the ceo announcement which you just laid out recently 17year veteran. Linda reynolds is taking your job. Why now in the middle of this pandemic when your products are one of the most in demand in the world are you making this leadership change . This has been the strategic and long plans weve had conversations within the board for several years on this and you know, it just so happens that it is a good time for the company. We have a very healthy business. We have a strategy that we believe in and thats working for our shareholders we have highly engaged workforce. All the consumer fundamentals are very solid and importantly, of course, we have a terrific successor. I worked with linda for 13 years. Very closely ive been a fan of hers for a long time. I have helped develop her and she is so ready to go. And i think at this point, its a good idea for a company to have a ceo with a long run relift we have such a big opportunity to create investments that change the long term growth trajectory for a company and for that having somebody who is just at the beginning and for whom whatever we have been able to create over the last months is the floor and not the ceiling is really beneficial for shareholders also nice to see a woman take over a major Consumer Products company. Ben, thank you for joining us. We appreciate it thank you we hope to talk to her as well coming up on the show, mike is pouring cold water on a popular explanation for the markets rally what else is new plus, why america is afraid of tiktok. Its the atlantics deep dive into the company and what it says about two global wperpowers and the authorill join us to talk about that in a few minutes. 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. 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Despite pandemic related closures of many retail locations, the company saying that 91 of the tenants are open and operating and percentage of rent collected improved from 51 to 73 in july the stock also closed the regular session 5 higher on news that simon and amazon are considering turning some former jcpenney and sears locations into amazon fulfillment centers. Were expecting to hear much more on this on the Earnings Call that begins at 5 00 p. M. Eastern. Again, shares of Simon Property up more than. 5 right now after a miss on revenue and a miss on eps. Back to you. All right Frank Holland, thanks. Still down 56 for the year. Well send it back to mike santoli now looking at the deep klining numb h. Declining number of Public Companies. Its been a theme people pointing out that the number of companies in the u. S. Is well off of the mid to late 90s high h also suggesting that somehow there is a scarcity of equities to invest in what makes this the right Reference Point to say what a proper number of Public Companies is . That looked like a pretty unsustainable peak there are 3,000 large investmen companies that went away it is a much more mature market and private financing market m a swallowing up a lot of companies. I dont think it changes the equation for them investing in equities there is still 30 trillion of u. S. Equities in the s p 500 they invest in it would seem to be plenty to accommodate folks. So i dont know that i want to focus as much on the number of stocks as whether there is a discouragement of Innovative Companies coming public. Thats perhaps a decent debate to v the other thing is jeffries said maybe this makes it that much tougher to beat the indices. I wouldnt argue with that either, guys mike, thanks so much. Still to come, tiktok is built a huge following in the u. S. Why thats become a big risk for both the United States and china and how both countries could lose out if the app is banned. Gimme one minute. And ill tell you some important things to know about medicare. First, it doesnt pay for everything. Say this pizza is your part b medical expenses. This much about 80 medicare will pay for. Whats left is on you. Thats where an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company comes in. This type of plan helps pay some of what medicare doesnt. These are the only plans to carry the aarp endorsement for meeting their high standards of quality and service. So call Unitedhealthcare Insurance Company today and ask for your free decision guide. With this type of plan, youll have the freedom to choose any doctor who accepts medicare patients. And when you travel, your plan will go with you anywhere in the country. Whew call unitedhealthcare today and ask for your free decision guide. President trump banning tiktok and wechat from operating if they dont sell it may stem from americas fear of tiktok, an app which challenges american dominance in the tech sector. Joining us is a contributor to the atlantic. Its good to have you here, michael. Its a must read, a beach read the you have done a lot of reporting optic t reporting on tiktok. How much it is a National Security threat . Its really that we dont trust china. You know, when you think the issue is really not what bite dance will do, is bite dance an agent of the communist party, the reality is that we know how china works. We know how the communist party works. And we dont trust that the Chinese Government is not going to try to use bite dance and tiktok to spy on the United States, to collect data on americans for whatever kind of purposes that they have. I dont think we would be having this conversation about tiktok you draw contrast to say alibaba and one of the people that paraded trump tower when President Trump was first elected before he was inaugurated and how was celebrated during the ipo. Was it just a different time or is there a big difference in the kind of companies and the individuals . I was watching on your network, he was treated like royalty. And here we are six years late we are a guy who also, you know, ming is an expert and started his company with Venture Capital. A lot of it is american money. And look at what he is facing. What has changed what changed is really the entire american attitude on china has changed. Our entire attitude towards engagement for china you know, now we look at engagement as this horrible mistake that all we did was kind of create china into this kind of massive authoritarian monster. But when you think about it, now, you know, engagement is tossed out and now we see these same people very, very differently than we did just a few years ago you interviewed mr. Jong, michael. What do you think he does next in order to maximize the value he can extract from his company hes created is it plausible to sell off just the u. S. Business or if he really wants to monday ties things, does he have to sell it all . You know, hes had a very rough few weeks. But, of course, he was banned in india which was the largest market for tiktok. And the u. S. Is the second largest. So, you know, with that in mind, there are a lot of other businesses and a lot of businesses in china that are very, very successful. Bite dance will go on and be just fine. But, you know, hes in a terrible position where hes not negotiating from a position of strength, right . He kind of has it is a shotgun arrangement with the deadline and hes going to try to maximize his money. Money for his investors again, a lot of foreign money, soft bank is there and other major, major Venture Capital companies. So, you know, theyre going to want to maximize their money on this as well so what does all this mean for American Companies that do business in china . Many of the social Media Companies cannot but there is always apple and a lot of the Consumer Companies that are staking a lot of their Growth Prospect on those companies. If we continue to do the tiktok bans, what happens to them what worries me about going on with tiktok is the potential precedent that its creating here you have the u. S. Government basically forcing a Chinese Company to sell an asset to american investors on National Security grounds. Where does this go as relations begin to deteriorate is this something the Chinese Government is going to try to do to American Companies operating in china you know, there are Companies Already having a lot of trouble as you mentioned the internet space. Most American Companies are already banned or revheavily restricted this is something the Chinese Government doesnt have a lot of problems doing so im worried that this is setting a whole new tone to thechina business relationship that isnt going to be great r Chinese Companies but may not be good for American Companies. That fierce retaliation is something that anybody wants to see or fear escalation but is it working . Is the u. S. Tactic working if you look at huawei, for example . You know, i know him as well with the United Kingdom banning huawei from the 5g system huawei is coming under pressure. This is really bad news for china. China wants to being a tech power. Here you have the Prominent Companies running into problems. Why are they having problems its not really because of the companies themselves its all really politics we dont trust the Chinese Government behind these companies. So here on the one hand you have the Chinese Government putting all the policies in place to try to create National Tech champions. It is almost undermining these companies ability to go global. As this economy wants to, you know, become more expensive to operate and loses some of the business, they need the hightech businesses to continue to grow, to continue to see increases and incomes. So if politics ends up blocking Chinese Tech Companies from going global this is really kind of bad news for the whole china future economics story michael, thank you so much for joining us thank you still to come, its been a stay at home winner. Angie Home Services is seeing a huge runup in the stock this year as more people are pouring money into home renovations. Were back in a couple minutes to discuss i had saved up some money and then found the home of my dreams. But my home of my dreams needed some work sofi was the first lender that even offered a personal loan. I didnt even know that was an option. The personal loan let us renovate our Single Family house into a multiunit home. And i get to live in this Beautiful House with this beautiful kitchen and its all thanks to sofi. Health care back time for a cnbc update here is your update secretary of state mike pompeo joining the International Criticism of the election in belaruse saying the voting was not free and fair. Police and demonstrators clashing for a second night in the capital and other cities the president says he will crack down on protesters the opposition candidate saying she considers herself the winner of the election. In baltimore, there are now six injured and one dead from a gas explosion that destroyed three houses and damaged others. Search and rescue teams are still looking for survivors as they battle debris and 90degree heat the causest explosion remains unclear. Actor antonio ban dare yas said he tested positive for coronavirus and celebrating his 60th brirnlg day in quarantine he says he feels well but also a bit tired. He is confident he will recover. Thats our update for this hour. Back to you. All right frank, thank you up next, angie soem Services Just reported an earnings beat but the stock is down sharply here after hours almost 10 it had rocketed this year as re inans work on their homes. Wegog to talk to the ceo about all of this next flexshares may look simple on the outside. 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. Woi felt completely helpless. Hed containingonline. Nformation. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Welcome back Angie Home Services falling in after hours trading despite q2 earnings the company seeing revenue increase 9 . The stock though down 9 joining us now to break down the numbers is the ceo brandon thank you for having me were all spending more time in our home than ever a great time to talk Home Services absolutely. The clearly, the overall year over year themes are strong. And the share price has been strong in general of late. But why do you think slipping so significantly after hours this evening . Its difficult to say the you know, we definitely feel that the q2 results were strong given the context with a tough margin and then into april was a tough beginning. We ended the quarter in may and june with very strong trends and i think most importantly we saw the focus of consumers and homeowners dramatically shift toward their homes, towards taking care of the home, maintaining and improving the home to accommodate the lifestyles were all living. And so we have seen the trends persist throughout the quarter and into july. They continue to be tail winds for the business what sort of services, brandon . Can you give us more color about what people are doing . How the behaviors are challenge changing. Weve seen just looking at july data, were seeing growth in just about every single category of service we provide early on things like kitchen remodelling and other types of remodelling and indoor projects were under a little pressure and they were not growing as fast as things like landscaping and pool installation. But its all growing because people are spending so much time in their home and its such an important place for us all right now that were seeing growth everywhere. So its more leisure related improvements like swimming pools than Home Improvements that say prepare the home for offices, et cetera, things like that yeah. People are using their homes more the so youre seeing more wear and tear youre seeing more maintenance request. People are using home for leisure. So youre seeing a lot of outdoor improvements new decks, new pat yoez, nios a landscaping. New home offices and general improvements given how much time were spending in our homes these days its a huge focus for people the contractors and the Small Businesses and many cases micro business thats you work with, brandon, how are they doing . How are they coping through the pandemic you are seeing more of them because of some of the Economic Opportunities that youre able to offer well, its been a tough period for Small Businesses and for these small contractors. Its been such a roller coaster with the initial collapse in march and april. We saw a lot of the Small Businesses completely suspended operations they many were uncertain whether they can operate in the lockdown period. What were finding is the industry is operating in reduced capacity and frankly, were watching it we do a weekly sentment survey and were seeing slow and steady inl prochlt. But a lot of the companies are having to start back up and rehire were facing challenges on the rehiring front manufacture the categories are facing significant challenges on the supply chain side of things. So while the consumer demand side is incredibly robust and elevated well above writ was precovid19, the capacity of the industry to handle it, it has been impacted. But its making a steady recovery so its something were opt many hiss tick well see continuous recovery in the second half of the year brandon, talk us through the partnership with lowes and have you seen a direct and Immediate Impact from it yeah. The we, of course, Value Partnership with lowes considerably its a natural match because in the last 12 months we had 29 million individual requests for service submitted to our marketplaces at the same time, lowes is the leader in home goods and home materials. So being able to bring a service led business together with a company that can provide products and has strong relationship with pros has natural synergies. Were excited about where that could potentially go given our scale and their scale and we come out of the Services Side and then from a product side primarily. The wow news of the day, brandon, actually had to do with your parent iac which owns a majority stake in your company taking a huge stake in mgm resorts. What was your reaction i get angis and vimio and daily beast all or the iec portfolio umbrella how does mgm fit in there . What do you think . Well, you know, i found out that news this morning i think like everybody else. So i dont know enough to comment on it other than to say that iac has a great track record of creating value, some of the sharpest minds that ive worked with in terms of identifying deals and value to be on lock i have a lot of confidence in their judgement on these things. Very diplomatic just thought id ask brandon, thank you for joining us fresh results. Thanks for having me. We appreciate it. Still to come, tesla rival nikola learning that trash is cash and investors are cheering the news that story is coming up. Knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. 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. Up next, cashing in on the ev craze nikola shares surging on the back of an order from a stwae company. Well discuss it after the break. Welcome back shares of nikola surging today 22 higher by the close. Waste amendment Republic Services ordered 2500 electric garbage trucks from the manufacturer and they expect testing of the trucks to begin in early 2022 followed by delivers why 2023. Dont miss an interview with nikola founder coming up on fast money next hour and guys, i mean, mike, i guess trying to get into the ev market that hasnt already been seized by tesla but no up front or significant revenues for the company but a headline grabbing deal in the very least. And this is the kind of thing where you have compressions of interest in a final product when one is available by big fleets where fuel is a tremendous amount of the cost you have things like natural gas powered buses around the country. So it makes sense but you have to understand the company is in the business of churning out headlines and new announcements and joint ventures and manufacturing partnerships so expect a lot of these things until fruition. And the ceo coming up on fast money. And breaking news. Uber and lyft responding to the california ruling. We have the details. Just to be clear, the two companies will have ten days to file an appeal which they will with regards to the staples the companies did not mince any words from uber. They said that when over 3 million californians are without a job our elected leaders should focus on creating work not trying to shut down an entire industry during an economic depression lyft issued a statement as well saying drivers do not want to be employees, full stop will immediately appeal this ruling and continue to fight for their independence ultimately we believe this will be decided by california voters and theyre referencing the proposition that uber and lyft and others in the gig economy are putting toward voters to decide in november i also want to talk about what happens from here. If after ten days theyre not successful, uber and lyft are not successful in their appeals, it is a real possibility they have to shut down apps entirely in california. Uber has over 100,000 drivers, the logistics of bringing them all online oz employees im told would be next to impossible. So this is going to play out over the next few weeks and well certainly have consequences for drivers and riders in california back to you. They only have ten days to achieve that. So i believe that they could the court of appeals could grant a further stay if that doesnt happen then youre looking at a potential shutdown or the other option, guys, they could continue to operate at the risk of more legal liability at this point im not sure that is something they would do it is possible the ridesharing Companies May decide to turn off apps to show lawmakers what happens when they do that. Hmm maybe why the nervousness around the shares with the decision expected both down 1 or more thank you. Just wrapping up final thoughts here as we close out the show mike santoli, it was a strong day for stocks. It was a below average day, but for the s p and nasdaq down for the down for the second day in a row, the transport had a particularly strong day up 2 3 4 percent and best day since july 15th. So there is some evidence that this is becoming more about the cyclical story of the economy, which is broadened out as as you say into the value sectors. Transport affected by that and that is what is going on and besides just the straight rotation into a different type of stock which are earnings forecast for 2021 have curled higher as in the Third Quarter it seems as if people want to use the early cycle playbook and see if it plays out. Meantime, while the big cap tech stocks take a rest it is a happy story if it follows through. Well see if it does. A strong session for the dow. Finishing near the session highs up 357 points, s p just higher and nasdaq was lower by 0. 4 that does it for closing bell. Fast money starts now. Im melissa lee and this is fast money. Tonights trader lineup. Tonight on fast, stocks closing in on new alltime highs, the chart master has three names that could be catchup trades. Plus turning trash into crash. Nikola shares soaring today, Trevor Milton will join us and it is weed week here on fast money. Kicking off the long series on the cannabis craze with a look at the big risk and opportunities in this budding industry well start off with big tech