Transcripts For CNBC Closing Bell 20240712

Additions here amgen, honeywell and salesforce which report after the bell. 59 minutes left of trade welcome to the big show, david yep and head on todays show as well sara, were going to discuss the Economic Data points and what the outlook is Going Forward were going to have the council of economic advisors acting chairman his name is tyler goodspeed. Hell be our guest plus, well focus on todays strong housing dwrat with redfins ceo glenn kelman. And it may be late in earnings season there are still some big names reporting after the bell including sales force, nordstrom, Toll Brothers and more well bring you all the numbers, sara, as soon as they hit the tape before all that, lets get straight to the market the major arnlgs following another record high for the s p 500 yesterday. Mike santoli is tracking all of the moves for us good morning i should say that is the last time ill do that, mike good afternoon, mike. 3 00 p. M. Is the last time were going to call it morning appreciate it, david and, yeah, you know, it is a mixed action out there the quiet. The market, the s p 500 if you look right here on a one year chart, its not doing much what its not doing is really falling apart, correcting in major way. It finds a way to stay supported. Yesterday the story is nontech today, weaker breadth. Tech outside of tesla and apple doing quite well and the s p 500 is just extending this what i call boring uptrend boring uptrends are boring and persistent dont know if its going to extend that much farther some aspects are getting stretched. The s p 500 is far above the 200 day average. But for now, the market is finding a way to keep itself supported. There is a gap here that it dropped in a sud wayne at the beginning of the coronavirus hatz no t it has not closed. And two of the four tech stocks, cisco and intel, have been dogs. That has been a weight on the dow. Lets compare the two. Now that we have this refresh of the dow coming, trying to modernize it a little bit. A lot of debate whether it is worth looking at the Dow Jones Industrial average it even relevant, well, its sort of got historical relevance. This is the dow divided by the s p 500. This is the ratio of the two indices. For the last 21 years, and what you soo he is they wax and wayne relative to one another. The dow tends to outperform in bear markets this was the last kind of surge of the tech bubble the dow had had little in tech right there it added microsoft and intel, first two nasdaq stocks to go in. St capitulated to the fact that tech is the whole market then you see it outperform in that bear market its not always the case over a long span its right in line its hard so suggest that dow is irrelevant if it tracked, you know, on different pasts over the last 21 years. Guys so when i say it is the statistically irrelevant, mike, i guess im wrong . I mean there it is, the poof that actually does its unrigorous lets remember, it started as an average, a little ral average of the stock price. It is divide by 30 and had to kind of go over the years its too what it now is but it still price weighted. That doesnt make a lot of sense in the age that were beyond paper and pencil right now the way i describe it though, david, its like fahrenheit or batting average. We have superior measures of temperature and batting performance right now. But people know what it s people know what the moves are relative to history and thats why they persist. So ill never understand why celsius is superior and ill never understand how to translate it ill stick with fahrenheit mike, there is a big discussion right now about how the s p 500, you know, for all the benefits of having 500 members is totally unbalanced right now and is not a reflection of the economy or the overall market because its all so heavily weighted to a few Mega Cap Technology names. Is the dow a better reflection its certainly more spread out. The way its now going to be revamped after the apple stock split and the new stocks going in there, now its still going to be the top five or six stocks in the dow are still going to be more than a fifth of the dow but thats only 5 out of 30 members as opposed to five out of 500 members and its going to have a lower tech rating. The sector distribution is going to be a little more diversified than the s p 500 is right now which is ironic given the fact that it is only 30 stocks. I think a lot of people are going to know the names more i mean salesforce is btob business that a lot of consumers dont know it just puts it on the radar we talk about them more which could be one reason why theyre near the top of the market there is not a lot of money behind the dow its not as if there is a tremendous amount of index funds in that index. So its not like theyre going to have to be furious buying of the stocks when they go in no. Nothing compared to the s p 500. All right. Mike, well see you in a bit thank you. As the s p 500 hovers near that high, more investors may be drown to Value Investing we hear it all the time. In a new note, bank of america is warning investors not to fall for value traps or stocks that are inexpensive for the wrong reasons. Joining us now via phone is the person behind the note, bank of America Securities head of equity and quaun tastrategy its time for stocks to outperform as this economy and recovery should broaden out. Which ones are you warning about . Yeah. So, you know, its a good its a good question i think it is time for value to outperform growth. But not all value. So our note, what we try to do is differentiate between good value and bad value. And what we found theres a really easy way to identify bad value or value traps these are stocks that are starting to look cheap but its because prices are falling faster than analysts are actually taking down their earnings expectations. So its basically, you know, the case of a company where the market is telling you that something is going wrong but earnings estimates havent necessarily caught up with that information. And what we found in our model is that stocks or industries that are identified as traps tend to basically remain kind of dead money they fail to outperform the two out of three times over the next 12 months. So its really a better stay away signal whereas if youre a value manager, the root to underperformance is by buying too early. And what we try to do is guard against those types of situations so we just showed some sectors. Yes i just want to get to the specifics. So real estate investment, what are the other groups that you say beware of that fall into this trap . A couple of yeah, so a couple of other groups that fall in there is telecom is also an industry that doesnt necessarily look cheap for the right reasons. Real estate is an interesting one. It is potentially d rating on the more structural covid19 related issues the maybe we wont need as much commercial real estate coming out of this crisis we started to see kind of a cheapening profile but really more because of earnings not catching up to where prices are have fallen. O our value trap model is saying its too early to buy in these areas that i just mentioned. All right that leads to the question, of course, where does the true value potentially reside here . Yes. I asked it. Where is it and is it still too early to even buy that well, no. So i think that there is there are value opportunities we identify good value as a fairly cyclical group of industries so were seeing it in household durables were seeing it in some of the industrial sectors were seeing it in if financials these are companies and areas of the market that should benefit from a little bit of a pickup in Economic Activity and are also not necessarily, you know, in that area of where analysts are going to take them down. So the area thats are attractive are largely in that cyclical and maybe even more consumer oriented area of the market savita, thank you. Going to leave it there. After the break, Consumer Confidence plunging in august. Home sales continue to surge were going to try to make sense of all the latest data well speak with the acting chair of the council of economic advisors next. Youre watching closing bell. Turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. 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Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Welcome back 46 minutes left of trade of mixed Economic Data out today. New home sales surging to the highest level, up nearly 14 for the month of july and up 36 from a year ago. But on the other hand, Consumer Confidence told a different story falling to the lowest level in six years what does that say about the economic recovery . Bringing in the council of economic advisors. Good to see you, tyler. Thank you for having me, sarah. What is your idea about the Consumer Confidence numbers . Certainly today we were encouraged to observe the housing data, housing does remain a very strong point in the economy. So were actually in this context, im look morgue closely at levels than rates because we had a big contraction in february, march, april of this year were going to hopefully observe a lot of growth rates in response to that and when we look at existing home sales, there, too, were observing a level that is the highest its been since 2006 and thats why were also starting to see some strength in if the Residential Construction sector with Real Investment in in Residential Real Estate to ip crease 20 annualized rate in the Third Quarter. And thats about 4 of the u. S. Economy. Something like that could add up to 1 to real gdp growth wooer ve the won assumer confidence data is something were looking at very carefully there are mixed message theres. We saw on the Conference Board indicator a decline. In the preliminary university of Michigan Survey last week, we actually saw a slight uptick in Consumer Confidence. Tyler, no question the housing numbers are amazing. There say boom there and the stock market is at a record high. But the nearly 30 million americans that are receiving Unemployment Benefits right now are not buying housing and stocks so it does feel a bit lumpy out there given some of the economic situations that we have going on with unemployment. What do you make of that overall disconnect with what were seeing in housing and stocks in march and april of of this year, the u. S. Economy and Global Economy was hit by the worst Macro Economic shock in decades. We observed a sharp rebound from the marchapril lows the a sharper rebound than i think anyone was expecting and thats also reflected in forward looking equity markets but there is no doubt that there remains a long ways go before we get back to the overall levels that we observed before this adverse shock hit. And thats precisely why weve been very, very disappointed to observe little action on the part of congress im frankly baffled that congress would be recalled from reset and recalled on a weekend to discuss a bailout for the United States post office but would not be recalled to discuss and vote on a reload of the paycheck protection program, to vote on a continuation of enhanced unmoiment Insurance Benefits to vote on an Employee Retention tax credit to vote on state and local aid to prevent layoffs among essential service providers. So i think there is no doubt theres a lot of anxiety out there. Thats why the Trump Administration and the absence of congressional leadership took Decisive Action to provide protection against evictions and provide continued enhanced Unemployment Insurance in the midst of the largest shock to hit america in decades the tyler, you know well why there is not that aid forthcoming. There is such a large gap between the ask. And the key area of contention appears to be aid to state and local governments. How concerned are you . You mentioned concern about the state and local governments if they dont get any aid, even if its just 150 billion youre offering or if it was to be a lot more no aid at all, with woun have to imagine, layoffs are in the offing if not already taking place with so many of these strapped municipalities. The cares act we provided 150 billion in assistance to state and local governments and 150 billi 150 billion sources f mechanisms and recently, the republicans proposed relaxing some of let strictithe restrictd providing flexibility. And my colleagues, the chief of staff and treasury secretary have put on the table an additional 200 billion in support for state and local governments. And, look, as the treasury secretary said this doesnt have to be the final word on this issue. If we need to revisit the question of state and local funding, we can revisitthat in a phase five, in a phase six this doesnt have to be the end but if we agree in in principle that this support is needed, then lets get that support out there and then revisit the issue when and where needed. So then why is the senate on vacation im afraid that would have to be a question to our counterparts on the hill its republican led senate. And theyre taking the cue from negotiations in the white house. Its hard to figure out why these talks remain stalled with such an urgent need for extended Unemployment Benefits and stimulus to Small Business which you laid out, extension of the ppp program and so many other necessary stimulus measures that will help bridge us over until we can effectively fight away this crisis this pandemic the calculations, the political calculations on the hill are something to which i cannot speak i can simply say that in the absence of Movement Toward Bipartisan Legislation that the president can sign into law, the president took the bold and Decisive Action to provide protection for americans at risk of eviction, to provide Additional Support to student borrowers, to provide payroll relief to American Employees and to provide continued enhanced unemployment Insurance Benefits to the 15 million americans who remain unemployed and the millions more who remain on pandemic unemployment assistance how much of that is actually going to happen . I know there was some questions, tyler about, the effectiveness and the legality of it as well so this is something that was thoroughly reviewed by the office of legal counsel, authority to defer deflection of Tax Liability is an authority explicitly alotted to the treasury secretary under the u. S. C 7508a. The authority to defer collection on to provide relief to student borrowers is explicitly provided under the Higher Education act of 1965 also there are authorities granted to the president under the stafford act and so those were vetted by the office of legal counsel. And weve been providing guidance to make sure that those executive actions are implemented in as expeditious a way as possible. Yeah. Im sure we can both agree the nation would benefit more broadly speaking from action from congress. So back to this question of aid to the states and localities i think you said 150 billion then the ability to repurpose existing funds and then you mentioned an additional 200 billion, tyler is that correct . Where is that coming from . I heard you say that maybe i missed it in the news over lat last week. The white house was willing to authorize an additional in any phase four in any phase for legislation to provide an additional 200 billion in support to state and local governments. That doesnt have to be the end, the final word st but but if we can agree we want Additional Support, then lets provide the flexibility for them to spend what is already been allocated chf approximately 80 billion remains. And authorize additional funds and then if we need to revisit the issue, revisit it. Lets agree where we have agreed lets agree to provide support where we agree support is needed. Finally, tyler, this is the first time youve been on with us so welcome its been active in your office. Kevin was there in your position i think twice and has left already twice. What people dont know about you is that you actually published a paper at the white house september 2019 about vaccines and their Critical Role in had innovations in fighting a pandemic just as the white house remains a source of intrigue, im curious what your role is there right now. So that was a very strong and pressing paper that we published in autumn 2019 it is something that a lot of components read with interest and informed has informed our response to the covid19 crisis. Indeed, back when we were contemplating a ban on travel to and from china, we actually consulted that paper and the estimates of the potential cost of a major pandemic arriving in the United States. Certainly under kevin haset and under my leadership here, were keeping our heads down and work having he closely with our colleagues in the treasury department, with our colleagues in the white house, particularly director kudlow, director navarro and the whole Economic Team to make sure the president is fully informed on matters of Economic Policy and the state and progress of the economic recovery tyler goodspeed, thank you for joining us weve got just a little under 40 minutes left of trade take a look at the major averages dow is lagging apple is lower could be part of the story there. S p 500 though is up. 3 so is the nasdaq were gaining momentum here to the close of. 7 small caps getting a boost after the break, unraveling the palantir mystery theyre going to file to go public today were going to talk to an analyst that just puisd blhea note on how the firm makes its money. Thats next. This selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, 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. Companies are taking part in the rush to go public. We saw six Software Companies file alone yesterday palantir is a direct listing theyre not raising any new equity our next guest is taking a look at their financials. They could come as soon as late september. Mark, you know, im curious what your thoughts are about the Growth Prospect about the company that is relying on the u. S. Government for a lot of the revenues theyve had ambitions to much move more significantly into the commercial route with the data source palantir is generating the manien fr money from the governments theyve had clients within corporate enterprise for many years. Depending on what information you believe from all the different public commentaries and Third Party Sources and the rest, somewhere between 50 , 60 of the revenue comes from government but there is still a sizable commercial business made up of very Large Companies and very large projects so its going to be very interesting filing its going to be very Interesting Company to look at it is a an area in which there is a lot of unique Companies Offering diverse capabilities in the analysis of all the different data sources and theyre created every day. The s1 was filed, what are you looking at first what is most important to you . And then secondly, id love to understand who their peers are in your opinion as well, who were going to be comparing them to when you look at the financials so obviously were going to be looking at the Background Data to validate against some of the information we received in some of the news articles and some of the leaks that have occurred were also looking it at the deep financial data, trying to understand the economy of the business and the economics of the business Going Forward according to most sources, there is a company that has been losing money until now and so well be trying to understand where the spending is, where the ability to ramp and drive margins, where the Revenue Growth is coming from spread across how many clients, how many different industries, how complex is the product to be able to install, maintain and support . Because all of those are going to drive into the margins. From an investment point of view, you want to understand not just how big the company is, but how big the company can become reasonably and you want to understand what happens to the margin profile a lot of that data is buried in public filings the we hope there is enough transparency to be able to understand what is really driving the business where theyre gaining success, what their customer retention and customer churn is, what is driving the marge ibz, wheins a the costs are going and better understand the clients and understanding the value of the company long term. What about that question that david mentions, who the peers are . So it depends on what you compare this company to. Again, without seeing the s1 and the detail data, you know, its difficult but if you look in the government space and you look at Government Consulting companies, there is obviously a lot of consulting required in the implementation of the product. They trade at a multiple of revenue because it is highly Services Based on the other hand, if this is a True Software company in which there is True Software revenues, especially if this is a subscription revenue stream or a cloud revenue stream, you can compare it to the Software Space. Depending upon how that revenue is made up, how much is professional services, how much is is the product itself, how much is licensed, how much, you know, how that plays out, will define who it compares against its no the just simply look at it and compare it to a Government Company because it sells government and it sells enterprise and its positioning itself as a sas company, the question is understanding exactly what the Company Offers and how they make money, how they generate revenue. And understanding that will give us a sense of who they compare to do they compare to the Government Contractors do they cover compare to other data analytic source thats are out there whether it is portions of what ibm owns or whether it is splunk or any wide range of other Companies Really depends on exactly what the business does and what the mix of services to software and how customized the solution is mark, thank you for joining us we await that s1 filing thank you 27 minutes left of trade. Dow is down 61 points. Time for a cnbc update with sue herrera. Hello, everybody. Heres whats happening at this hour Jerry Fallwell jr. Resigned as president of liberty university. The move comes following his wifes involvement with a younger Business Partner the sefrns package called for in his contract has not been changed. In galveston, texas, buses are lined up to help people get out of the way of hurricane laura. Hundreds of thousands of people have been ordered to evacuate parts of coastal texas and louisiana. And soccer great messi says he wants to throwin the towel with the Barcelona Team he captains and for whom he has played his entire professional career the move comes after barcelona suffered a humiliating 82 loss to byron munich in the quarterfinals. The if he is able to depart, it will spark a bidding war among top teams though it remains unclear which would be able to afford his very lucrative salary youre up to date. Thats the news update this hour david, ill send it back to you. Thank you, sue. Still ahead here, weighing the pros and cons, new york state allowing gyms to reopen in some areas this week but will customers come back were going to check in with the chairman of equinox ahead. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. 23 minutes left of trade after the break, the fearless market morgue an stanley analyst says despite the backdrop, the market isnt afraid of anything its up again today heading for a record high despite weak Consumer Confidence dat yachlt well talk about where the opportunities are with the record high stock levels when we come back. [squeaky shopping cart] [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. Im a delivery Operations Manager in san diego, california. We were one of the first stations to pilot a fleet of electric vehicles. Were striving to deliver a package with zero emissions into the air. I feel really proud of the impact that has on the environment. We have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. Major averages have been nothing short of a terror since those march 23rd lows. Rallying by more than 50 . Even more for the nasdaq this as Economic Uncertainty looms amid the pandemic. Can stocks though, of course, as we ask this question often, continue to climb from even these levels joining us now is the chief global strast strategist at morgue an stanley invest mept management he is also the author of the book the 10 rules of successful nations. We appreciate you joining us is that enough to continue to support what is few of us have ever seen in our long careers . Exactly but i think there are two effects going on here. Its partly confusing for many people there is one effect. That is the feds policies have elevated asset prices across the world. This is referred to as the everything bubble. But i think that there is a lot of discounting of the fact that the stock market is still playing the traditional role as the best barometer of buzz conditions so if you look at the stock market, it bottomed out just a few weeks before Economic Activity bottomed out. And since then, the surprises across the world have consistently surprised on the upside the and the stock market is reflecting that. So i think its a combination with the prices are very high because the discount rate is so low and the fed is obviously overstimulated but on the other hand, on a daily basis, the stock market still doing its job of reflecting the economic change of the margin which has been much better than what the forecasters had pencilled in as late as april. So do those that say the sto market is not reflective of the real economy or not reflective of the suffering of tens of millions of americans right now, you say what well, i would say to them that theyre reading the stock market wrong even if you read at 2008 and 2009, the stock market doesnt react to levels of Economic Activity the stock market reacts to changes in Economic Activity and when things are getting slight slightly less bad,en into 2009, we saw a very powerful rally well before the Economic Activity appears to be in a good condition. So therefore i dont think that we should discount what the stock market is doing. The other point ill make here is this. We have done this research that when there is a split between what the communists are saying and what the stock market is saying, the stock market almost always wins. Because it still has a better nose in terms of sniffing things o nut anticipation of Economic Activity than Economic Forecasters do so the last few weeks a lot of Economic Forecasters have been upping their forecast or at least making them less bad than what they had pencilled in in april and may. This thursday chair powell is supposed to give an important speech in jackson hole remote jackson hole, about inflation. Do you expect that to continue to feed and fuel this rally, you know, taking that theyre okay with inflation running a little hot essential i had as were expecting him to do . Do you expect that to keep this whole thing going . Yes i think that this is what ive been arguing for for a while the fundamental problem with the feds policies is that it has anchored itself to an inflation target asset Price Inflation and the fed is, in account fa, said so including chairman powell that even if the feds policies lead to some bubbles in assets markets, thats not the principle worry. So i think that as long as the feds focus remains on Consumer Price inplace and oblivious to asset Price Inflation, asset prices will continue to inflate away thank you for joining us. Appreciate it. After the break, best buy sinks despite smashing estimates. A flood of Software Companies are gearing up to go public. And well have a preview of what to expect when Toll Brothers reports its results after the bell those stories and so much re clininside the market zone. 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. 13 minutes left in the trading day. Were now in the closing bell market zone. Commercial free action of all the action going into the close. Mike santoli here to break down the crucial moments of the trading day. St today we have Profit Investment Eugene Profit here as well welcome back we kick it off with the Broader Market the dow underperforming. The s p 500 though on track for a record close mike, if if you look at what is underpinning the rally, a lot of the usual suspects, faang all doing well not april l, facebook, alphabet. Biotechs having a good day a lot of the Software Companies and retail and restaurants what is the catalyst what story does that tell . With higher treasury yields which is helping the banks it is helping a little bit. Interestingly, im not sure anything boils down to a particular catalyst. The market went into the mode of lets buy the strongest, longest uptrending Growth Stocks out there. Amgen is boosting the biotech indices. People are excited about the coming into the dow h what is interesting is as you mentioned, apple will and tesla on the decline after having the huge vertical spikes into yesterday morning. They had the bad reversals its like it rotated into the equal weighted nasdaq 100 which is up more than the s p 500 is today. Its a little bit of the muscle memory of the bull market. On a day when Consumer Confidence is weak, best buy selling off on great earnings. Home builders down really good new home sales so it shows you a lot of good expectations built into the market theyre able to absorb that profit taking. I would note as well despite the performance of apple, facebook is up substantially google as well amazon alibaba is having great day. That i may be on the prospect of the financial and ipo. It could be 33 of which owned by alley bab yachlt were seeing as you pointed out, some of the big growth names having a big come back late in session here its just what hasnt gotten as overheated as apple has its almost like thats whats going on Bigger Picture is showing this stair step trend its done that several times over the course of the last few months it doesnt take a lot to back off at least but its very difficult to look minute to minute, hour to hour and say if it looks like a really vulnerable situation. Eugene, would you still be a buyer of some of the tech names after the amazing run theyve already had . Id be a buyer to ones that are up today i still certainly on apple and certainly on google. However, im valuation sensitive. I think that certainly weve had a very, very large run but with the china and u. S. Talking again, maybe not making much progress, i think it gives you a little more confidence that there is a little bit more legs left in the bull market i do Like Technology but not so much at the faang names. Speaking of technology, software as well has been one of the biggest winners this year h and that has Software Companies a lot of them racing to go public we have some of the details. Six s1s dropped yesterday alone, david snowflake filing, they showed two companies that have more than doubled revenue from the year before. But are still losing money gaming engine, unit want to pull that one out itry veelz the breech and how theyre challenging Epic Games Epic Games is in a fight with apple. We also learned thattant group is incredibly profitable on the other side and we continue to wait for those palantir financials. Back to you. Yeah. Interesting. Anlt financial going to list on the star market in shanghai which is a new market. But could sell as much as 30 billion worth overall. For the other deals, any of them particularly large obviously palantir is a direct listing. Very different than raising equity from the other names you mentioned. Yeah. Absolutely i think that youve seen this rush particularly in the Software Space they are doing so well of course, you have to pick through all of these s1s and find out the differences its interesting i mentioned snow make. The losses, they are the pace of them at least are slowing down you see asana, the pace of those losses, they doubled in first half of this year. More than doubled from previously like you mentioned, you havant financial listing in shanghai and hong kong, hugely profitable so not all s1s are equal. Zpid the incredible run that theyve been on. Thank you software having another good day to day sales force, newly minted dow company up 4 . I mean clearly its a good time, right . The shift is happening quickly, even faster online especially for Enterprise Software markets at a record high i guess the question is how long that window is and are investors going to embrace all of these names . The Cloud Computing sector is up 40 year to date. That pretty much tells you its kind of the strongest part of the strongest part of the strongest part of the market it is cloud within software and tech so, yes, this is the right time. To try to do it. A lot of the companies are going to be kind of glorified one product vertical type companies. Who knows down the road if there is a long term opportunity to get consolidate add way. The i do imagine its as receptive a market as theyre likely to find right now its another way, i think, that youre starting to see the typical kind of heeding up of bull market rhythms that you see even though were only a few months removed from a massive, you know, panic on the down side for this market. But have the stocks outrun the fundamentals are we in a sas bubble you know, obviously, amazingly aggressive valuations right now. People are trying to apply kind of a new math to it and say these are uniquely well positioned you dont have to use todays earnings i dont know a few years ago people look at the valuation of cell phone Tower Companies and compare them no, this is not what that is the stocks did amazingly different for years. Lets move stocks in Different Directions best buy beating on both the top and bottom lines seeing the u. S. On line sales surge by 242 . However, the stock is moving lower. Jam smuker rallying. Along with the beat on the bottom line. I talked to maushg smuker about how much of the quarter success can be attributed to the pandemic about twothirds of it rough will you we can contribute to the pandemic whats interesting is as consumers are staying home, theyre forming habits our job right now is to make sure that we can get those habits to stick and use targeted marketing to make sure that were doing that and keep consumers in our brands. Smuckers said that pb and j and hot. Theyre selling everything that they are making when it comes to Peanut Butter and jelly. That pet snacking is a thing its not just humans the cat food in particular has done very well and that the company is really firing on all cylinders. I know you like consumer staples. To me, smucker is a sleeper. I it had a lower valuation when it comes out with a quarter like this and raises guidance, it was a big surprise for wall street is this one of the staples that you like its not a company i own. I do like pb j it makes sense people are staying at home theyre eating lunch at home restaurants are closed and mostly Food Service Type companies are doing very well. This one just slipped through our screens. But well be taking a much closer look at it because it did very well. Well, speaking of doing well, were going to get a check on Toll Brothers which is set to report earnings after the bell that follows another day of what was very strong housing data the diana brought that to us earlier today. She has now a preview of those Toll Brothers earnings yeah. Sales of newly built homes jumped to a 13year high as pent up demand from the spring and desire for bigger homes gave builders a boost july sales were up 36 annually. Prices jumped 7 we also saw price for existing homes improve there was an annual gain. Theyre no longer. St Toll Brothers expected to report a stronger q4 resulting in from all this new demand. Back to you. Thanks, diana just take a look at whats going on under the hood of the market at the moment you see breadth actually improved on the New York Stock Exchange it started out really skewed to the negative right now its about 50 50 you have this afternoon very quiet afternoon come back across pretty wide variety of stocks. Now you see that has gone more in the right direction at this point. Yesterday, of course, very strong breadth day take a look also at at the comparison of the Corporate Bond market to the s p 500. This is just officer this week is it so there is an interesting underperformance on price terms. So spreads are going up. Treasury is a little bit its not critical but something to keep an eye on the Corporate Bond smashgt a good underpinning. It is not supported the last little leg to the upside that equities have had. Its hard to know what that is f it is supply issues. That is something to keep an eye on right now and then the volatility index, it is actually popped early. It was over 23 it settled into the zone it flattened out over the last month or so. So its not really giving you a real all clear signal if you look back to the Third Quarter of last year, well under 20 for that whole uptrend we have an election coming that is feeding in, sara. St. Yeah. As we watch here for the closing bell were seeing the dow down 66 points s p 500 does remain positive up. 3 you just need a positive close on the s p 500 and the nasdaq to get a record finish for stocks were getting a look at the technology stocks. Software is having a good day. Software equipment also doing quite well. Communication services leading you have netflix and facebook in there taking us higher along with the media names health care is the second best sector consumer discretionary, of course, amazon a big part of that story gap getting a nice upgreat from city helping let tail stocks there is the closing bell. Dow going out with a decline of about 54 points or so. Well off session lows. Down almost about. 2 . S p 500 and the nasdaq going to close at new record highs. Welcome back, everyone take a look at how we finished up the day on wall street. If it soundslike we have done lot of record cloeging, we have. The dow closed lower 59 points apple a part of the story. Theyre closing down for the first time in a while. The s p 500 up for the fourth day in a row at a new record close. Get this, the 17th record close in 2020. It also hit a new intraday all time high earlier today. Its up 6. 5 so far this year. The nasdaq closing at a record high fourth positive day in a row and its 38th 38 record close of 2020. Also hit a new all time train day high earlier in the session h as far as the russell 2,000, up. 2 lagged some of the other major averages investors are turning to several big earnings coming after the bell salesforce and nordstrom and Toll Brothers all set to report results. Well break down all of the numbers as soon as they are released first though, Eugene Profit is us with. First ill turn it back to you, mike we had this catalyst with u. S. And china trade negotiators playing nice but it still feels like it continues to be driven by optimism around vaccine and stimulus those are the atmosphere fearics. That is the backdrop but is enabling this relentless bid it is extending the forces that got us to the new high i dont think the trade deal is the reason that starbucks is up 5 today and all the soft waur stocks ru stocks rup its about the idea when you get into the gentle persistent uptrends that they go a little bit longer than you might actually think what im watching for is technically the s p 500 is getting stretched. Its well above the 200day trend. And then also sentiment. Youre seeing continued aggression on option speculators continuing to bet on further upside thats not like everyone is mega bullish. But there are pockets of people seeming like theyre going to push their luck a little bit that has not mattered. They always find a way to stay supported and remain in this uptrend. I want to welcome mark smith to the conversation as well. He is a financial visor at ubs what is the level of optimism from your clients right now at ubs . Everyones very optimistic because the market is at all time highs st the issue is where do we go from here . And there is a lot of headline risk so there is a lot of negative Headline News that come k. Come out with the elections looming over us in november. Theyre staying defensive. You are telling them not to chase this rally is that what youre saying im telling my clients if you are someone who has a 30year time horizon, id say keep to your asset allocation. Continue to dollar cost average into the market. But it youre someone who is looking to retire the next couple years, i think you should start taking some money off the table. And wait and see what happens in november do you soo he that being priced in at all . I dont think it is i think that certainly investors are very optimistic and theyre looking for reasons to bid market higher. But even if you look at the consumer confident report for last two months it, thats been declining. And that seems to be consistent with the fact that we havent gotten confirmation of additional stimulus, right and you also have a situation where a lot of companies arent giving guidance. The ones that are are guiding lower to tap down enthusiasm but that doesnt matter. Feels a lot like a little bit like the dotcom end of the bull market there companies rushing to go public here the ipos and cloud space. And investors dont want to be left sitting on the sideline with this type of run. So they began to stretch the fundamentals or stretch the fundamentals thats whats going on i dont know when its going to end. I dont think this is sustainable. Im not sure if november is the key point on what is looked at so whatever it takes to take target Prices Higher a lot of people listening and watching would agree with you, eugene but then there is fear of missing out. They zoom higher every day of how are you positioning to reflect that skepticism you see on the market and participating in it in places Like Technology which i know you liked you know, you a lot of times you use a barbell approach here you have the faang stocks one side and then looking at some more valuations on the other side salesforce is thatsecurity so we look at how that model is going and how they go over to artificial intelligence. I think theyre up about 19 on this year versus where nvidia is up which we also own were looking at plays that are higher im looks at Companies Like salesforce i also own nvidia. One thing you dont want to do as an investor is be in cash its off the lows. And you set in cash. Clients dont want to hear it even though risk reward says thats where you should be tough to be in cash we saw salesforce shares moving higher on numbers. Lets also get to hewlettpackard Enterprises Earnings because those are out as well. So 32 cents, thats verse expectations of 23 revenue, 6. 82 billion versus 6. 06 billion. Q4, 32 and 36 strengths census at 31 cents by segment, 3. 4 billion storage, 1. 1 billion. Intelligent a intelligent edge, 684 million i caught up with the ceo he said stronger execution, stronger growth. Reduce backlog by 500 million through improved supply chain execution. He sequential improving Going Forward. I asked him real visibility in the pandemic what is he hearing from customers . He said that pandemic results in permanent lasting changes. He thinks up to 50 of the workforce will not return to an office thats going to require different kind of work setting secure remote connectivity and optics in a. I. , Machine Learning and Data Analytics back to you. Its moving after hours up 4 . 50 50 yeah seems like a lot a high number of people, david, not returning back to offices. I guess hes talking about clients about it yeah. I mean listen, we did have zuckerberg on the facebook call some time back now say they could see over the next five to ten years. Half of the employees could not return to the office that number seems awfully high awfully high that is a different world. Hewlettpackard enterprise now up more than 6 . Lets get to sales force earnings will is out were tracking those hey, sara a beat on the top and bottom line for crm earnings per share coming in at 1. 44. Thats more than double what the street was expecting it was 67 cents. Revenue coming in higher than expected at 5. 15 billion versus just under 5 billion expected mixed Third Quarter outlook. Q3 e. P. S. Guidance, 73 to 747 cents. The street expecting 77 cents. Light there. However, Third Quarter revenue guidance higher than the 5 billion. That was expected. And thats enough to push shares up more than 7 in the after hours. A little comment from the release. Humbling to have had one of the best quarters in salesforce history against the backdrop of multiple crisis. This is a company, shares are up more than 30 year to date adding to that in the after hours. Back to you. Yeah, he is having a good day. Added to the dow and also the blowout numbers up almost 7 mike, i mean, even for Software Company that continues to show double digit revenue, up 29 and that huge blowout on earnings. Strong quarter yep no doubt about it. Very strong. Funny, often sales force is one of the stocks that there say little bit of an indecisive move on the print of earnings and then the pep talk and then the stock seems to recover but now its just jumping even after having a good day. So clearly the market was on a little bit of the back foot for how good the numbers were at this point yeah. Sara, interesting, he said its hum toblg have one of the best quarters in salesforces history on the back of multiple crisis seriously affecting communities around the world as you say, its been quite a run. Its been quite a run for very long period of time as mike knows very well. Given how much value is created. The now going to surpass the 200 billion market value is salesforce i love the second quote in the release. Salesforce was found ond belief in stake holder capitalism and core values. You dont get from a lot of ceos these days hes been a huge proponent of the idea along with, you know, the World Economic forum of having multiple stake holders, clients, communities beyond just the investors, something we talked a lot about, david, before this pandemic and the economic crisis. But clearly for our company like sales force continues obviously to be front and center my last question, maybe mark smith, i will ask you. Is sales force, do you think unique or does it Say Something broader about Enterprise Technology spending right now that things continue to be strong and pick up even with the job losses weve seen and some of the economic damage im not surprised at these numbers. Tech is going to continue to rule the day just like they have. And i think that 5g and the rollout of that is more upside than clients of ours are going to be taking advantage of. Infrastructure to make that happen tech is going to continue to outperform so i dont know about so much about the other sectors. I feel comfortable setting my clients in the tech space and continuing to dollar cost average there. Thank you both for joining us big move for sales force up now 8 after hours up next on the show, well have much more here on reaction to those numbers and were going to ask a tech analyst wheer tthhe sector rally is showing any signs of slowing down. Were back in just 90 seconds. 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. Numbers disappointing in terms of what the street was looking for. Reporting a Second Quarter loss of 1. 62 per share adjusted. Revenues also coming up short. Net sales were down 53 year over year. They were constrained by stores being closed, flow of inventory. But also the fact that they had to shift theyre anniversary sale which is a big deal for them thats a 10 impact because they had to shift it from the Second Quarter to the Third Quarter its currently on. Digital sales also down 5 because of that shift. If you take that into consideration, sales were up 20 . Sara ill say it thank you. Lets also talk a bit more about sales force which, of course, saw was out with the numbers the stock moving up even more. Sth after being announced it is added to the dow lets bring in the senior tech analyst with jeffries. He has a buy rating on the stock. Give me a quick view here. We have top line up 29 . That seems to be pretty strong so backlog is revenue and earnings so we think when you look at all available met rikz, they smoked the number this very clear that theyre in a recovery phase we think ultimately again there is some concern around where the company is going are they a work from home play or not i think it furnther cements sof warn customers it into spend are they a work from home play and how has that been answered you look at the revenue number that, is clearly addressed. The biggest concerns have been the pace of acquisitions which they didnt do any in the quarter. We think many initiatives they put in place paint the salesforce out and making key investments, that clearly is showing up now in the numbers. Brent, where is this business coming from . Are they taking share or just new business from companies that are continuing to transform diblgtally its to your point, digitsal trance formation. The whole front office is trance formed were living in effectively e commerce business. It is letting Large Enterprises get on line. Service the clients, engage with sales so think about the entire front Office Oracle and sap have nothing. They have fallen over their shoelaces on building anything in the front office. Its a two horse race. Its adobe at the high end with sales force and then there is emerging Companies Like hub spot who are doing very well. Sales force is pioneering the Front Office Like no one else. This is the Area Companies are spending theyre not spending in the back office on erp upgrades if you look at jeffries and our form, we put salesforce in to transform our entire front office and how we deal with clients, trades, and across the firm has a lot of growth been moved forward and spread out over years . I think there is a little bit of a sugar rush. I think clearly you have a pause in spend i think, yes, there is a pull forward. But again, there is a pause. I ultimately believe that again what were seeing companies realize, you know, dan shulman said this, were in a Digital First economy. That is driving can you sell online if you dont need sell online, you can buy a Service System they created capability thats customers are taking and betting open them as a platform, no betting one or two of the products so there is always something you can consume as a client and it can be overwhelming as a buyer. But from salesforces perspective, they have the product shelf full of things to sell keep in mind, it is running up 9. 5 after hours. Valuation, how does it stack up relative to some of the other high flying tech names that you follow right now it is the best opportunity or are there better ones out there as Technology Remains front and center for this market sales force has been a discount to its peers because theyve had to overhang of the margin and m a concerns. So its traded at a discount its now no longer trading discount they exceeded the ieg. So it exceeded that now with todays move so we still think its relatively cheap you feel like adobes market cap, you know, there is still a discrepancy. They have others in front of them in terms of larger market caps software in general is expensive. The only thing that is concerning to investors is do we get a vaccine . I think our firm has a call that once a vaccine comes out, Software Group is probably for sale that money will go into other names like travel, entertainment, other sectors that have lagged so right now, you know, all systems go its great you think this continues the rest of the year well see. Some of the valuations are trading at 20, 30 times revenue. Not earnings you again, facebook looks a lot cheaper than some of software names. So its been expensive it will continue to be expensive as long as were in a worm from home environment yeah. 30 years of revenues is quite a multiple to say the least. Brent, thank you Toll Brothers earnings are out. Yeah. A really nice beat for luxury home builder Toll Brothers 90 cents a share versus estimates of 71 cents. Thats on revenue of 6. 13 billion for q3. The value of the signed contracts is up 18 . That is the highest contract for a Third Quarter ever in it both units and dollars in the history of the company contracts for community were the highest in 15 years. Ceo doug yearly pointed quarly at low Mortgage Rates and the undersupply of existing homes for sale he also said consumers are focused on the importance of home and thats what were seeing in the Home Builders across the board is big demand from buyers who want newly built, hightech homes with larger spaces, home offices, and large outdoor spaces luxury builder Toll Brothers benefiting from all of those and increase in prices across the board. Again, a nice beat for Toll Brothers not exactly unexpected given what were seeing in the entire builder market back to you. Dianne yashgs thank you dont miss an exclusive interview Toll Brothers ceo that is tomorrow, 4 00 p. M. Right here on closing bell. There he is. Jobs jolt. Up next, mike santoli takes a look awhether the market is flashing a warning sign for the overall market and the economy as a reminder, you can always watch or listen to us live on the go lbeig bk. Nbc app. Wel rhtac traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. You say that customers make thelets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Another record close for the s p 500 and for the nasdaq weaker Consumer Confidence data. Lets go back to mike santoli. Taking a look at measure of confident in that report the overall confidence board was a down side. It was decline from the prior month. Both expectations and Current Conditions were pretty middle h within the survey was also a little down beat this is the difference between those saying jobs are plentiful and those who say jobs are hard to get so just essentially the difference between the two numbers as can you see at the end of these very long expansions, thats a very high number it dropped off the cliff as you would expect that is absolutely a concern but what you will notice too is the absolute level here is well above where we were, for example, at the bottom in the prior very deep and very long recession. So we havent had enough time i dont think for this to kind of work its way through for people to say they believe the labor market has really weakened in an enduring way. So thats good news. Also, job openings are holding up okay. This is one you want to watch. There is a moderating of this recovery trend w he have to get confirmation or peptation of this, sara also, it overlapped with the flareup in infections in many parts of the country including the hot spots like texas and arizona and florida. Clearly, they had to roll back some of the reopening there. Must have had an impact at least on confidence and people thinking that they have the ability to get jobs. This might be slightly lagging in that sense. In the last few weeks, of course, you see dramatic declines and new case counts maybe that is something also florida saying theyre going to start Indoor Dining next month the so, yeah this is something that you have to watch were never going to get out of. This its a very unusual recession that were in or maybe still not in the way the numbers are shaking out. All right mike, thank you. Mike santoli we have news now on charges accounting violations at a Company Called super micro josh lipton has details for us thats right. So the sec today charging Super Micro Computer and the former cfo here with prematurely recognizing revenue and understating expenses over a period of three years. They say that executives there pushed employees to maximize end of quarter revenue but failed to devise and maintain sufficient internal accounting controls to accurately record revenue. They say here the company settled the charges without admitting or denying the findings the company paying a 17. 5 million penalty. Back to you. Josh, down about 4 after hours. Josh lipton, thank you new york gyms are reopening with several restrictions including operating at 33 capacity equinox plans to open doors in new york on september 2nd with new protocols in place including prebooking visits and enhanced disinfection procedures and using medical grade air purifiers. Joining us to discuss how he is planning, the chexecutive chair eqinox welcome back. Thank you for having me. Whats your sense of what demand is going to be like when you reopen well, obviously, you know, the only benchmark we have is what weve seen around the country. And what weve seen around the country is that there are a lot of people, a lot of members are so excited that were finally opening as are our employees so what we expect is youll have the earlier adopters who are standing there waiting for us to unlock the doors and then youll have another group that will be a little bit more cautious who are likely to return but might take a little bit more time until theyre ready either because of their own personal situation or just as they hear from others how suck setsful our comprehensive plan and procedures are. I ask because i just wonder how much of any of the Consumer Behavior changes and habits weve adopted are going to be permanent including not being able to go to the gym. People found fitness apps and a lot of peletons are sold there are other ways of doing it maybe more affordbly in your own home do you worry about the longer term impact . I dont worry, sara i look forward post pandemic coming on and telling what you exactly happened i think what youre going tose is there is increased demand for fitness. But there is also a lot of fatigue. People desire the community, engagement, expertise, in person experience and so i think the future will be more of an omni or integrated online, offline approach people are working out more frequently now its more of a no days off experience and commitment. And so there are days where youre going to go physically to eqinox and other days you want to experience virtually on demand so we actually accelerated our virtual offering during the pandemic we launched something called barres by equinox. It includes classes. We also launched our at home bike and weve had Great Success keeping our Community Engaged during the pandemic. But when we reopen, what were seeing is some people want just the physical some wont both. I think youre going to see people would want the physical and the digital compliment, integrated frictionless seamless way. Thats what were committed to doing. Harvey, you know, im sure its been very difficult to try to navigate the different desires and rolebacks and openings of various municipalities the how confident you are, for example, in a place like new york that theyre going to stick with what they say right now and that you are going to be able to stay open and continue to sort of progress . Im fairly confident. I think Governor Cuomo and the state have done a phenomenal job of we all talked about breaking the curve. New york reported the best data since the pandemic started and Governor Cuomo is very clear, he doesnt want to be in a situation where you are open and then have to close again like we had in california. So im very confident that we will not have close again. But i also think its important that just like we will do, others in the industry embrace the procedures and the protocols that the governor laid out to make sure we protect the wellbeing and safety of our members and employees. I think its interesting to say from our perspective, we always had high standards and we worked tirelessly to create a new comprehensive plan with our own external cdc consultants that we really started implementing back in may when we first started opening clubs in other markets around the United States and weve continued to build on those procedures and so were very ready to take care of our community in new york and i think the most important stat or two stats i would say actually is based on 500,000 visits, weve had reported. 0018 covid19 cases that is extremely low. And i cant tell you scientifically, but we believe its because of when you have a strong immune system because youre healthy, one, youre less lickly to get covid19, and, two, our procedures are so robust that oftentimes exceeding what required by the government. The other stat a highlight is in surveying members, 96 say that theyre satisfy order very satisfied with our procedures. Were also getting in you sales because people want to leave other places where theyre less comfortable and come to equinox where we treat them the way they deserve to be treated. 33 capacity . How long economically can you stay that way . You are planning to go through the fall and winter . At what point do the economics become too difficult after months of having to shut down . Its been a long run after being closed for six months. But we can be profitable at 33 . Im not going to tell you its ideal. It is ideal in protecting the safety and wellbeing of our members and our employees which is paramount and we embrace that wholeheartedly we said that from when i was back on cnbc when the pandemic first started. And so what youre going to see is just people want to talk behavior change, people are working differently. And so now youre going to schedule when you come to equinox through the app. Fill out a Health Declaration through the app. Some people want to come out still bhachlt we learned around the country is we can satisfy all detroit mannethe demand we havent turned anyone back. Some are coming twice a day. We dont think its going to have a significant amount of pressure on our profitability and we do believe we can be profitable what is more important is getting people to come back to new york and other major cities so we can serve them and we always serve them as part of the daily lifestyle. Good luck with the reopening next week. Thanks for coming on to talk about it. Thank you as always. Harvey. More earnings to get to. Coming as far as whats been a busy afternoon for earnings. Sales force surging after hours. Plus, we saw more strong housing numbers today. This time from Toll Brothers and from n he ewomsales. Well dive into that trade coming up on closing bell. 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Evers is also doubling the number of National Guard to 250. Thestate of emergency covers all of the state of wisconsin. Blakes mother says the damage to the city doesnt reflect her son or her family. Propublica is reporting that alaskas attorney general went on a months long leaf after a young state employee reported she received over 550 texts and phone calls from him in less than four weeks. The messages including at least 18 requests for her to go to the married attorney generals home. Clarkson apologized for putting a state worker in an uncomfortable workplace situation. And finally, some good news of a sort. New yorks fashion week will take place next month but attendance will, of course, be limited. Outdoor events will be capped at 50 people. Indoor Events Limited to 50 of capacity with no spectators allowed. Maybe a little sense of normalcy thats the news update for this hour ill send it back to you ill take it, thank you new home sales jumping nearly 14 last month up next, well ask the ceo of Real Estate Company red fin whether ushoing can remain red hot with so many uncertainty you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Toll brothers reported earnings just moments ago, Third Quarter numbers, by the way, were strong. Stocks higher after the beat on the top and bottom lines this on the back of strong housing data today we saw new home sales rising more than 36 on an annual basis. Zblen glenn, people seem to want more outdoor space and they certainly need a home office these days, dont they they do were running out of inventory what about Toll Brothers in particular, are they well positioned for a market like this i think all the builders are doing extremely well for a long time theyve been slow about adding inventory were not sure how long demand will last. But now i think were all really leaning into it. So its a boom it is just a rural boom, glenn, or is any of it stronger in the cities . Its still strong almost everywhere people are leaving the cities for the suburbs. And it means that there is going to be more transactions across the board. Small increases in small towns and suburbs. So what are the expectations when it comes to how long this can be us is snand is this a seminole change in the way people live . Are we going to continue to see this move from the it is to these to homes in the suburbs and rural areas . Well, it will last months maybe it will last a year. If you look at the number of homes sold in the United States, et never varies between five and seven million. Right nour were near the top of that range and so i would expect at some point in 2021 or 2022 things will settle back down. But right now, america is on the move so what else are you seeing in terms of the hothousing market you are seeing things like bidding wars yeah, so 54 of our offerses are facing a competition half the listings that go on the market sell within two weeks the strongest markets are in the most affordable places it is the century of texas it is taking over the u. S. Everyone is moving there so were seeing very strong demand, especially in dallas but also in affordable places like tucson and Salt Lake City people are leaving l. A. , new york, San Francisco for the very affordable places. Thats where the demand is strongest. Its pretty strong almost everywhere wow look at that list. The traffic will get worse and theyll say the quality of life is not what it used to be. Thats a trend a long time and comi coming, right . If people dont commute as much, the traffic wont be as bad. Thats where people are willing to live further from the city center so maybe theyll just dial it in in thats a good point what is happening in new york city, glenn . People are willing to look two hours outside of the city. It used to be you had had to be on the transit line. That is as far as people would go now we meet people in connecticut, new jersey, dhoenlt really care whether its going to take 2, 2 1 2 hours to get into the city. Theyre only going once a week or once a month. And what theyre really focused on is Square Footage and schools. And so if you can deliver that extra room for the spouse to have a zoom meeting and the kids to get Online Education and you have good schools, then people are going to pay have seen that were selling for 150,000 going to be 300,000. Thats where the price appreciation is really crazy really. Glenn, thank you crazy st. Great to see you. Bye you too up next, saving money in the age of covid19. Many parents gear up for an uncertain school year, what should they do about saving for college . Were going to discuss that. As we head to break, check out shares of Urban Outfitters getting a nice bounce after beating on the top and bottom line citing strong double digit growth a particularly strong surprise on the free people brand the more bohemian brand showing ri ia sen sales comps were about half what analysts expected. 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. Now tmobile has thousands more. Locations across the country. More towers and more coverage than ever before. Tmobile is americas largest 5g network. With more 5g coverage than verizon and at t combined. Experience it now with our best deal ever. Unlimited for 25 dollars a line for four lines with 5g access included. Its time to join tmobile. Up next, the class of covid19 were going to discuss College Savings strategies amid the pandemic hey, kids welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. From kindergarten to college, parents of the class of covid19 are bracing themselves for a tumultuous fall. Many are wondering if they should be continuing to save for college when there is so much uncertainty out there. Sharon college may look very different by the time your child is ready to attend that may impact the way you save and you pay for it a new survey found that 77 of parents with children 18 or under expect to maintain or increase their savings for college but 15 are not going to save this year and 9 plan to decrease their contributions a third of the survey respondents did say they may need to tap into it because either they lost a job or because of the pandemic. Keep in mind that 529 plans can also be used for qualified education expenses besides College Costs like k12 private School Tuition or apprenticeship programs or up to 10,000 in qualified student loan payments. If your childs College Plans change, still hold onto that 529 plan money. Even though you name your child as beneficiary, you can change that beneficiary. If youve got a kid that doesnt want to go to college, you can move it to another child you can use it yourself if you want to go back to college now, keep in mind, though, if you do take a nonqualified distribution from a 529 plan, you will have to pay income tax and a 10 penalty on that money. So you want to be very careful about when you dip into that, what you use it for. Sharon, thank you very helpful up next, your earnings score card well give you a breakdown of all the biggest movers 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. 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℠ give you a check on some of this afternoons biggest movers. Salesforce is the headliner. It was a huge 29 top line growth, strong outlook for the year, this on top of what was already a 3. 6 gain during the regular session because the stock is going to be added to the dow 30 by the way, we have hewlettpackard there. Ceo saying 50 of employees may never return to the office thats something sarah and i have a little bit of trouble accepting. Nordstrom sales fell 54 of course, retail has been so tough. Stock is down. Toll brothers, a beat with a record level of signed contracts. By the way, dont miss an important earnings interview marc beni ooff is going to join jim cramer at 6 30 p. M. Eastern. Well be right back. Were back. Please go ahead, sarah. I was just going to reflect on the action that we saw today, which was another strong close and pretty strong session. We rebounded from some earlier losses the market clearly wants to go higher its being driven by some of the same usual suspects Like Technology but the earnings today, heerch h even hewlettpackard enterprises with a good outlook. The expectations across the board extremely low. It confirms a lot of trends. Cloud software has massive tailwinds. Mall retail, not so great. Housing by far the strongest thrust in the economy right now in terms of the real economy all that stuff confirmed the question is exactly how far has the market already come in pricing a lot of that stuff in theres inertia and momentum to keep pushing it higher at what point do we have one of those moments to say i guess we got there. Well have to see. That does it for us right now on closing bell. Fast money begins right now. Im melissa lee and this is fast money. Guy adami, tim seymour, Pete Najarian and brian kelly well bring you all the big headlines. Plus, facebook goes shopping well tell you about the social media giant