Transcripts For CNBC Closing Bell 20240712

From pfizer and after the aresa zenica coming up, the ceo of caesars will join us exclusively to discuss that partnership and the path forward for vegas plus, shares of Advertising Software Company Trade desk are up more than 50 on the year up more than 200 from the march lows were going to talk to that companys ceo, find out what that move is all about how they managed to outperform and whether the underlying business is looking as strong as the stock. First up though, lets focus on the big stories in this final hour of trade. Mike santoli tracking the Market Action julia is covering new developments in the oracletiktok saga and josh lipton on information on nvidias deal to buy arm holdings start with the come back for tech and the overall market. A pretty broad and strong rally. You have a little psychological boost from that m a. Im not sure it would change anybodys find if you were bullish or bearish coming into the week it is operating under the level where we closed the friday before last. Also operating below a couple of the shorter term trend lines that we were kind of disappointed if you were a bull when it went below a little while ago. So certainly some resilience making the case that it is trying to chop around and put a bottom for the correction. I dont think it is too decisive still hanging around from the highs back in february, remember that 3380 and change were the highs heres the interplay of the nasdaq 100 and the s p 500 theyre crucial over the last couple of months this is quarter to date. Right here thats the biggest spread between these two the mega caps and qqq. And right now were more like 1 or 2 . It like its come into line. The question is theyre below the payback and stocks to really refresh and there is a mechanical bounce. And the corporate target and this is 2019 and 2018 the same date. So clearly way behind. There is turmoil and base lick no deals and they have two trillion and corporate america. And there is private equity of 40 billion in facts. So in theory, the ingredients are there. See if that comes through in the next few months. The other factor is sentiment. Have we seen signs of the sufficient signs that investors have altered their position such that it flushed out the overbought nature . I think things move to a more neutral condition. I dont think theres as much overconfidence you definitely have profit taking people right sizing some of the outside positions and mega cap tech however, if you look at the speculative action in the options market, things like that that led us high, that is right back i mean that seems like thats not the thing that is going to go out its not oversold or flushed out or really to the point where people felt genuine fear mike, thanks so much for that bite dance has chosen oracle as its trusted Technology Partner as tiktok restructuring. And they proposed for tiktok there is technical discussions with oracle ahead of the september 20th deadline. There are assets but rather and there is tick to being and becoming tick to beings cloud provider and that is oracle o would take responsibility for the privacy and Data Security issues as part of restructuring of tick to being to the operations the sources tell me things are very much fluid. Walmart tells us and is continuing discussion and there is general add lantic and there are all the different players. And theyre still fluid ahead of that deadline. I know. And so many twists and surprises. Including this new trusted technology there is a seeming resolution. Tlaen are the codes. And there is security. And there is a provider. And there is data on this and the consumers. And there is all the data. But i feel like, julia and they could still control the information and propaganda well, i think the question is that if this is a restructuring and i can say this still very much in the works. But if the company is restructured and the operation was separate, the u. S. Operation could license the version of the outbreak and consumers so the u. S. Consumer and dwrat is not actually being transferred back there and the algorithm would be run out of the u. S. Operations tiktok has 1500 employees here in the u. S the company said they want to grow that to 10,000. Today the secretary said that tiktok would grow to 20,000 people in the u. S. So there is certainly a sense that the company would be managed by all those and run out of the u. S. By all the employees here got it. Investors like it. Oracle is up more than 4 . Turning to the other big deal news of the day, nvidia buying arm holdings for 40 billion josh lipton has more on that deal josh so, sarah, a bowl move here by nvidia and one that is going to draw strcrutiny from regulators why arm and why now . He is looking to broaden the portfolio. They are known as the Worlds Largest graphics chipmaker with this acquisition, they become a player in the much bigger cpu market too. That is the primary brain in most Computing Devices Arms Technology is everywhere. Smart phones to tablets to pcs they have seen a wave of deals over the past couple years in a rapidly consolidated industry. And theyre buying melanox to name a few the risk is customers may be unhappy that theyre buying this asset. And they can expect regulatory review around the world. Though, working in the companys favor, these are two very different business models. They make chips and arm and ip josh lipton, thank you. Watching shares of citigroup moving lower right now following reports saying regulators are planning to reprimand the bank over its risk systems. I know youve been digging into this so its down about 5 as we spchlt the cfo was speaking at the barclays financial conference moments ago and references the need for improved Risk Management after they made that payment of 900 million to creditors of Cosmetics Company revlon a few weeks few months ago. There is no greater priority to get what we characterize as a best in class risk and control environment. Simply put, fundamentally transforming our operating environment and strengthening our infrastructure risk and controls is a strategic priority for the firm that comment coming just before that wall street journal report hit suggesting regulators considering places a Consent Order on citi until they rectified the risk control issues the added cost is weighing on the share price and likely to impact the timing of the ceos departure a handover that came a year or so before some were expecting. Its ironic because one of the parts of success of his early eight years of his tenure was improving Risk Management which was seen as being very poor post crisis and under him something they didnt continue to improve through the second half and the other aspect if you look at why, for example, citi trades on a hoer price to book multiple than bank of america does is over the last three or four years, bank of america has massively reduced the costs in a way that citi failed to do again, you throw Something Like this, its going to increase the cost basis in the years ahead and make reducing the costs and increasing the returns hearter to do over the next couple years. You see citigroup trade down 5 based on the reports thats what i was going to ask. It is a sharp move lower all the other banks are up how big of a deal is this . Is this a gut reaction sh just an ugly negative headline is this in for the long run . Could mean some pain what youre suggesting is it could. Last year on an adjusted basis when the environment for banks is much better than the covid19 era, they hit just under 12 . The target was 12 to 13 and that was when times are good and that lagged a 16 rotc for bank of america and 17 or 18 . If you throw extra restrictions from the regulators at them, again, youre bringing into question how many years away we are where when theyre going to compete for like in terms of return on common equity. Thats a big question mark we know as well from the wells fargo experience how long it can take once youre under a sort of Consent Order to get it lifted again. This is a very different circumstance were not talking about consumers being wronged. But nonetheless, if you cross a line enough for the regulators to take a draconian action, you have to rectify everything before they lift it. I think that and the uncertainty around that is why the share price is down quite so sharply the citigroup share price year to date, this takes it down 40 year to date add it to jane frasiers plate. Her to do list very long. Better to get the share price to tank before you join. Sure. Or you can build on it and improve. True. Thats really something citi is down. I think sandy while said as much financials are doing well. The theyre up more than 1 . Citigroup notable section now down more than 5 . Every sector is higher after the break, another part of todays merger extravaganza. Well talk about gileads 21 billion to bulk up the cancer drug portfolio next. Youre watching closing bell on cnbc. Look here, its your very own allinone Entertainment 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. Gilead reaching a deal to buy another company for 21 billion. The major merger expanding gileads availability of cancer treatments the here to discuss, michael yi from jeffries. What do you mablg make of the deal great to be here. There are two important things like about this deal the stock is responding well first, the company is been expected to deploy capital, build a huge portfolio of cancer drugs. And they have a very, very big drug year and i think this is going to be a big blockbuster for gilead Going Forward. Do you think they see more data than others have seen is that normal process with a deal like this and does that make you encouraged to there is more blockbuster drugs to come . Yeah. I think in two ways this is going to be a long term big deal one is because they were pretty clear they have seen Additional Data in other types that wall street is not aware of there is a large on going study for Breast Cancer. Another in lung cancer and they have seen that data and theyre bullish on that. So that is number one. And in addition, the company is focused on the initial data that is going to be next week but longer term, there are other tumors that are going to work making this a big drug im surprised to see gilead up 2 and to hear you talk about it a lot of the focus take away from this has been on the high pricetag the fact that they paid more than 100 premium after a already 100 runup in the stock overpaying well, i never heard of someone that didnt pay up for a good asset i think the key is people expect gilead to have to deploy that capital. I think cost of capital is achieved theyre out there. St this has been an out of favor stock. This is what theyre going to expect to do the theyre happy theyre doing that but longer term, of course, is it is a reflection of the fact that this is a good drug its going to be a good one. I think people like that what is the time frame now for news from gilead and the potential catalyst or triggers for share prices to improve further . Thats right. Thats right. I think that the really important data is going to be first half of next year. If that new Breast Cancer study works, i think the sale is going to go for 40 billion where people are today thats a big one i also point next week at the conference where gilead has seen some of that data already, youre going to see new data in Bladder Cancer as well thats going to be a big one we were talking about remdesivir and covid19, thats a big driver that fade a that faded away. I expect the vaccines to work. You might talk about that i think most people expect that f that for remdesivir. There is a point where remdesivir data and gilead stock is moving the entire market. That was our best hope at fighting this pandemic what revenue driver has it been for this company and where does that outlook go . As you say with the focus now all on a vaccine this was a huge roller coaster, right people didnt know if there was going to work. Then it works. Of stock goes up it works and stock goes back down the street is having a very difficult time trying to figure out if its just a 3,000,000,001 time pandemic situation right now or there is going to be sales into the future we do think there will be sales in the future. A billion dollars. St there will be a covid19 vaccine. So people dont want to give a lot of value to that particularly when the longer term outlook is really about new cancer drugs, new pipeline and a reason to buy gilyard for the growth Going Forward michael, thank you for joining us good to see you. Great to be here. Weve got 40 minutes left of the session. As we stand, the dow is up 305 points a little after session highs still green across the screen today. Still ahead, nikola moving higher as they respond to accusations from the short seller Hindenberg Research and gm is weighing in too. Spending is 25 higher year over year. Some is for current homes and some are moving. Higher demand for leaving big cities when you look, for example, at the rates from new york to shar hot, throose are 350 higher thn charlotte to new york. San francisco to portland, similar numbers. Eerng way, Home Improvement stocks are expected to benefit home depot and lowes getting 60 of the sales from suburban and rural customers. There are three common themes. Buyers get much more square footage, a bathroom and a lawn or garden. William and sonoma, Restoration Hardware and best buy all expected to b expected to benefit. And also reporting positive forecasts for sales either in the next quarter or long term. Back to you. Okay. So many social media posts of uhaul trucks all over new york city, depressing thank you, frank still ahead, shares of caesars getting a big boost as inking a new deal with espn involving Sports Betting, well talk with the ceo of caesars about that partnership and whether people are coming back to physical casinos. As we head to break, a check on bonds. Time for our covid19 tracker. The who reporting a record spike in global cases yesterday. The 307,000 new infections in 24 hours. India, u. S. And brazil contributing most to the total israel is the first country to reimpose lockdown measures starting this friday and lasting three weeks as it seeks to curb a surge in new cases israelis have to stay within 500 meters of their homes. And here in the u. S. , covid19 cases are growing by 5 or more in 11 states since sunday. And there appear to be a significant spike over the weekend in places like south carolina, arkansas, and indiana. The numbers looking out are declining but there are 30,000 to 40,000 cases per day. Time for a cnbc update. Sue has it for us. Hello, everybody. Here is what is happening at this hour. In california, President Trump meeting Governor Newsom and thanking state officials and firefighters for their efforts to reign in the wildfires scorching multiple states. He renewed his criticism of forest officials for not doing more democratic president ial candidate joe biden calling for urgent action on Climate Change and calling President Trump a climate arsonist. He said four more years of trum cop create a Health Threat for america. And inned is is, state attorney general jason reaganbork hit a deer with his car on saturday but state investigators say he actually hit a pedestrians who was killed and his body wasnt found until the next day the investigation is continuing there. That is the news update this hour ill send it back to you sue, thank you so much for that turning now to the Airlines Delta says it is raising billions of dollars in fresh debt backed by the frequent flyer program. Phil has the details for us. 6. 5 billion, thats how much delta is raising theyre leveraging the sky miles, frequent flyer program. A significants here is twofold one, need more liquidity, he especially to get through the next 18 to 24 months, and, two, delta says its likely not going need to take out a loan from the Treasury Department as a result. Jet blue is at one of the airlines that still out there considering whether or not to take out 1. 4 billion from the Treasury Department. It has until the end of the month to make that decision. Today we talk with the ceo of jet blue he said, look, we are seeing some growth in certain select markets. We know that demand is there. We think that has the possibility to come back as early as 2021. What the take longer to come back is Business Travel. Some forms of Business Travel may be gone for a year or so the he is from earlier today on the exchange. The while card in all this, what happens with covid19. If cases spike this winter when it gets cold, that could really put a damper on what we for the Holiday Travel season. What caveats come from taking a second round of treasury that are not applied from the first rounds of help from treasury if some companies are able to tap the private markets, Public Markets rather than going by treasury for the second round. Will they have a huge advantage in a year, 18 months time when others are still facing restrictions warrants goes along it with of the 50 billion that was set aside as pars of the cares act, 25 billion was in the form of grants and some loans. The other 25 drr billion is strictly loans at the end of june, you had the air heinz essentially work out a deal with the Treasury Department but then southwest came out and said, you know, were going to go to the private markets ourselves. Now you have delta saying the same thing you stril a number of airlines out there. The and american said they will tap that treasury loan so there are restrictions that do go with the treasury loan and again, that decision has to be made by the end of september phil, we have to ask you about the latest in nikolas case being accused of a fraud and especially i want to know from you what it means for a truck to be under its own power. The video that is out there, that truck was at the top of a hill in utah and going down a hill but it did confirm that this video of this truck, this truck is not under its own power and as a result, yeah, it was not 2016 and nikola said theyre not by themselves we said it was just in motion. All of this raises questions for j General Motors that struck a deal mary barra today presenting at a conference she said we did our Due Diligence on nikola. We think there say lot of opportunity here they bought an 11 stake in this company. They have an interest in this back and forth with the research but, phil, i mean, whether theyre managing to try to dig themselves out of this hole by they faked the trucks ability to propel itself. They know what product theyre going to sell. They know what Consumers Want the product to be able to do it is like if you showed a clean tshirt from a deturnlg ent company and it hadnt actually been cleaned by the detergent even though there is a caveat. That is falsitiesing that is in 2017. Maybe they can propel themselves now. It doesnt give you a level of trust. And what theyre saying is you cant take statements from back then and make now forwardlooking statements thats mixing apples and oranges. If you said it then and then you had had investors through a number of rounds of fundraising, you were misleading people. That is at the heart of what theyre saying the interesting thing is we havent heard from Trevor Milton he was out on social media on thursday and friday saying i have to respond. Theyre short sellers. Its a hit job we heard from them we asked nikola can we talk to Trevor Milton, he said not for now. Did nikola acknowledge in the past they had faked this 2017 video . Great question. I do know from talking with people, wilf that the technology on the vehicles that theyre working on the semis, this are people that have the trucks that have been self propelled they dont have that technology. That is clearly marked at the time so that everybody knew that it was not driving itself that is unbelievably quiet it doesnt sound like it is running and free wheeling past them phil, thank you. So heres where we stand were 300 points on the dow. The high had been up 420 points. And shares of trade desk and the ceo is adjusting in that companys shift. 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. Dont get mad get e trade and start trading 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. Good job, michael does. Ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a Financial Advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Welcome back as of 3 23 take a look at this dharchart. This is trade desk this the is a stock that ipod at 18 per share it is a diblgtal ad platform used by buyers, connected tvs to web sites to podcasts jeff green is the cofounder and ceo and he joins us now jeff, what is going on with your stock . Why has it been this moon shot first of all, thank you for having me. Well, you know, especially this year with vud, look what happened was in march we paused relatively healthy economy and then advertisers immediately stopped doing as much advertising as they could. Paused as much as they can and then what happens is as things start to come back, everybody realizes that advertising is at the front end of that recovery and that they have to advertise in order to come back. And so we just have been part of that recovery and especially with connected tv being just something that people are consuming more and more of we really just benefited by the nature of this recovery. Yeah. Connected tv is just where i want to go or ctv. Its part of the very bull ush thesis around your company what you are seeing in terms of demand there and where are those add dollars going . Yeah. So first you have to just highlight this year has been almost perfectly horrible up for Cable Television and cable subscriptions. We surveyed thousands of people after covid19 happened. The number one reason why people were hanging on to cable was for sports, over 60 of them said that was the case. Of course with sports going away, the new content not necessarily being there with unemployment levels where they are and it being the most expensive part of peoples tv experience, people have gravitated to on demand. And as people gravitate to on demand given all the economic pressures, they also would rather pay for that content with an ad experience than to fork out another 14. 95 for yet another pack anl its through the roof of reach now were reaching over 80 million households and because of that core cutting, broadcast television is below 80 million households the opportunity for advertisers is unprecedented as it relates to ctv. Jeff, nhow far are we over th top tv from the hulu to peacock and from a Google Search and instagram are targeted and they know who it is that is watching it when we get to that point, does that mean that revenue per eyeball for the broadcast to actually going to increase because the commercials could have the potential to be so much more effective yeah, were already doing that it will never be the exact same thing that we have or more personal device. However, thats the only way that the tv experience stays as strong as it is. The thing that is so great about connected tv is you see much viewer ads and more relevant and that makes it so you want to have a better experience and thats what is funding this really expensive content so its actually a really important part of the tv experience Going Forward and finding what is in there for television its essential that we keep doing that but are we there yet . I watch a lot of stuff over the top. I dont feel the commercials are targeted yet the reason i ask that question is if that gain or benefit is still to come, which of the brackets of companies is going to see the benefit is it the buyer of the ads, the agency, or ultimately the platform and the content creator as we look across at the moment the different types of companies with different multiples on them is this something that will benefit the traditional broadcaster that is not priced in yet yeah. So the bulk of the adds we use on connected tv have a data driven approach to it. You are absolutely right that often ad experience is not opt mall its early innings in applying that but there are impressions or specific adds that are already doing that and in terms who have is going to benefit from it most, definitely the content owners are most going to benefit. And theyre most in need of that benefit. Because they have to justify raising those costs and at the same time, you know, they have to transition millions and millions of people from they are could be souping on broadcasts and can make up for the cost differences as this he come on to demand platform so its a very important that these metrics stay there the. Thank you for joining us. Thank you after the break, nvidias ceo speaks out about their new arm deal and biotech sees a breakout the United States Postal Service is here to deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Every day, all across america, the big events are back. Xfinity is your home for the return of live sports. [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. 15 minutes left in the trading day. Were now in the chosing bell market zone. Commercial kree acti commercial free acticoverage of the action going into the close. Toflt day we have mike santoli and chris farone here as well. We kick it off with the Broader Market a strong start to the week here, mike santoli it looked dicey earlier. Amazon went red. Nvidia lost half of the gains. But things are starting to firm up here into the close the dow is up 370. All sectors are green including technology what were the last two weeks and what is today . I think today is part of the last two weeks this on going process, this adjustment period of kind of letting the stuff that was most overheated cool off. And then settle out in terms of what the market is positioned for in terms of broader economic recovery that pushpull is the content. I think the big question over the big cap undechls is, you know, is there enough of a payback at this point . There does seem to be kind of pretty solid twoway action. By that i mean, you know, people are buying dips. There is very low conviction at these levels i dont think that anyone is necessarily too alarmed what the is going on inside which is, you know, relatively help nly pullback activity within the context of a longer term trend higher sfwh chr chris, do we have enough of a pullback i think what is interesting is when you look at the pockets of the market that got hit the hardest over the last two weeks, nasdaq 100 down 10 , 11 s p 500 is down 7 but the markets perception on groek expectations really never changed. The continued leadership from materials and autos and discretionary. So i think what has been really constructive about the last two weeks, the overheated pockets of the market got a chance to pause and correct while the more risk on value oriented, the more cyclical components actually reaccelerated and kauried some of the burden. That should be reassuring to the bull ush call. Nvidia is buying arm holdings the ceo was on squawk on the street earlier today explaining the vision behind the acquisition. The vision is this. We want to build a Computing Company for the age of ai. If we can leverage their business model, if we can stand on the network that they created and take the technology weve invented and put it into that channel and make them available, there are thousands of partners. The economics for us is incredible most importantly, we are able to spread the nvidia architecture all over the place mike santoli. The details of where arm is today compared to when soft bank bought it, all coming out in the last couple weeks and particularly with various write ups with this deal it will be good pricetag is pretty cheap you can understand people commending the rational for this sure. Its a little about half in stock. There is actually in the 40 billion i believe an earn oifut over a year. Its not right to soft bank. Clearly the market likes it. Thats what you see in the reaction of nvidia stock up 6 it is a big portion of what theyre paying for this company, so pretty good risk reward it seems for nvidia. It may not be much of a home run. Mike, there are serious questions here it is Regulatory Approval from the uk, from china, and from the u. S. Weve teen them in trade wars and fights around semiconductors some competitors are concerned about it nvidia can be up 6 in a day when nasdaq is up 2 no matter what i dont know that people are saying its a make or break for the company. But perfectly willing to see if it they can navigate this process. I you he dont know if its a deal breaker on any of the fronts there are a lot of hoops to jump through. I also add on the save arm Front Campaign in the uk, you can understand the rational for that and wanted to keep jobs, wanted to keep the expertise and cambridge and not lose that innovation that said, that argument would have been better made when it was originally sold to soft bank at that time yes five year pledges we went through this debate in 2016 as well but there are various pledge thats lasted for five years and those expire anyway in 18 months time. Its kind of a little bit rich going over the same ground with the same level of kind of animosity towards it there are questions to whether the jobs stay or go. And that is the reason for that. Just quickly, on the chip sector as a whole, what do you make of the particular charts . I think what is important is semis are an integral part of this market advance not for a year or two years but for a decade aand we sell largely to semis as a Leadership Group here. Take a look at broadcom and qualcomm these are names i largely sat out the move in semiconductories that are getting involved. We like how the sector is broadening out take a look at biotech. Of course that is a bounce off of the 108 premium gilead is paying for the 21 billion deal reigniting a lot of hopes for the sector that there will be more deals to come. Gileads ceo telling us it was a competitive deal it reflects the mid sized Biotech Companies up almost 7 the ibb which is Larger Companies up more than 5 . So some of the names youre seeing really flying today Companies Like insight, iovans and blueprint medicines. Theyre up 6 to 13 today. They could be good takeout targets. This is a list from jeffries and that is biotech. We also got news today on the vaccine front. We talked with pfizers ceo and theyre in the lead on vaccine he expects data by the end of october but not by a key date when they expect data to be in to be reviewed potentially for an approval before the election. Thats an october 22nd day st. I think it is on the committee of the 22nd. We will be in time although its not impossible i think its accurate h from the time they start to resolve, there is some time to repair the subject key date. That is a scheduled meeting of outside advisors to the fda on covid19 vaccines. So much speculation. There will be pressure to approve before the election. Back over to you pfizer getting a boost up 3 . Thank you. By the way, when you quoted him, i thought you were going to say his quote of the day the ceo at gilead is the howie mandel of biotech making deals every other day with all the cancer drugs i thought that was a good line thats a lot. Meg, thank you. How does the ibb look to you and would you be making a may for the other potential takeout targets . We look for good charts and good trends that have gotten washed out or oversold. You have about 75 of the sector in an uptrend though so timely. It got oversold. You see the stocks starting to respond to that. The poupt i was not just biotech, its pharma too the move in pfizer is notable. Hook at lily that one is starting to turn up here as well when you look at the analyst ratings on the stocks, theyre not as bullish as you would expect the knows out of the Broader Health care sector are really aggressive we had that contrarian signal we like to see in the etf flows i think it comes together for a timely lock call in biotech and pharma right here. Z shares of draftkings are up Contessa Brewer has details for us espn will provide digital links in the online content to draftkings and caesars sports books. In turn, draft kings is the exclusive daily Fantasy Sports producer and will have segments on espn shows, caesars are the exclusive oddsmaker. The books are operated in partnership with william hill and espn just cut the ribbon on a new studio at the link owned by caesars on las vegas strip. Wait, there is more. You see the Performance Today for caesars and draft kings what about penn up 10 on the day. Deutsche banksen analyst points out espns following is roughly 45 larger than the soon to be launched penn bar stool entity and could be critical to monday tiesing caesars brand u but there you see penn just shrugging off foremidable competition. Coming up on closing bell, caesars ceo tom reid joins us in an exclusive interview to talk about this deal, the competition, and most importantly what comes next. We look forward to that interview later in the show. Mike santoli, clearly various Sports Betting companies are hot of late. There is hair trigger enthusiasm for any Sports Betting, legalizing it, whatever it s i think its almost to the exclusion of traditional gaming at this point. Right now it doesnt matter. People arent making a careful analysis what the total Addressable Market is and how it is commanded by the players. Theyre subsidizing this business the way ub easteer and do theyre giving you winning bets at the outset. Its all about Customer Acquisition at this point. Its a little bit of a gold rush right now. Everyone is willing to just bet on everyone in this trend. Down the road, presumably there will be some rationalization well figure out this is really that profitable a business weve seen this stock so tough around the headlines theyre good charts good things thoop good charts. Theyre very accepting of good news the stock was side because for a last several weeks and months. You have a base that was built just on the breakout here. Penn has been very good. Go the stocks that are Getting Better the that is a very important reopening signal and its another indication in our work that we think the economy is stronger than people think here the dow is up 350 points. Its a broad rally so far look it he volume split. Strong on the nasdaq the New York Stock Exchange as well so you see some more five times up volume as down. Also, very much a risk seeking tone if you look at micro cap stocks, there is an etf for micro caps, well outperforming the largest stocks it shows you its basically picking up a lot of the stuff that moves the fastest and then the volatility index continues to come in we have this what looks like on the chart, you know, a little bit of a scare popup to the 30s. Had ard to know how much down side there is here pt we have to 20 or so in this rally pt its just given the fact that there is such hedging demand ahead of the election we keep talking about it its keeping the entire volatility complex up. Down a fair about it, more than a point. And therefore, kind of somewhat confirming what is happening in the equity indices the dow was up 420. Were up 350 at the moment so a little off the highs. The but that last hour or so still net positive for the markets. S p 500 up 1. 4 . Dow, 1. 3 . Nasdaq is leading the charge up just shy of 2 the russell 2 thou tho,000 lead by real estate and tech not classically a duo paired together both up more than 2 today oil flat the dollar soft. Nothing too significant. Banks are higher across the board. Other than citi, in fact, it is yu is down 5. 5 . And stock contrast the kpw bank inbechl up 5 . Pretty strong close for what was a rally day on wall street rebound after the worst week for stocks since june. Welcome back, everyone in youre just joining us to closing bell, im sara eisen along with wilfred frost and mike santoli take a hook at how we closed up on wall street a gain of 1. 1 s p 500 up 1. 3 . All sectors higher in the s p 500. And you have a special Technology Standing out. That is what lead the nasdaq to outperform everyone else nasdaq had the first positive day in the last three. Closed up 1. 9 it was really the small caps which shine today. The russell 2,000 index up 2. 65 . Best day in just about two months since july 15th yes, you have names in there like vxrt up 48 after getting an fda signoff on hay vud vud track seen trial still, the financials did well that certainly helped the small caps as well just if youre keeping score, the s p 500 is now 5 for the year well ask caesars ceo how his deal will impact the bottom line and competition with rivals. First up, joining us to talk about the market today, chris is still here and joining the conversation, tony from black rock still t first though i send it to you, mike a combination of optimism around the vaccine with pfizer news and resuming trials. A bounce back fwrom last week. What do you make of the rally . Both of those things are evident out there. Definitely i think there say lot of mentality around was this just a kind of technical and sentiment correction if thats the case, if there is nothing else to worry about, if the market is not surfacing new fears, basically seems to be the case, you know, is today just as good a day as any . You know, 1 off the recent lows and the s p 500. One or 2 right now. I dont know that anything was decided to day but the big take way is nothing all that much changed either from two weeks ago or four weeks ago. Four weeks ago we started to ramp higher. In a big way last two weeks has been chopping lower. And now its much more about is there going to be fundamental buyers or are we just playing tactical games and trying to pick a little luck do you feel like we pull back enough this is now the start of another meaningful sustained leg high . You have to look at two things. You look at equity risk premium basis. When you compare with bond yields and the ten year treachery at less than 70 basis points, stocks look attractive there is an opportunity for a catchup trade. Equally weighted undechl h index underperformed there is an opportunity for a catchup trade there. Like what, tone. I what would you tell people to buy so in the Equity Dividend i buy, we have taken the barbell approach we continue to hold big overweights in tech and health care which have been the winners of covid19. They were winning before covid19 and covid19 accelerated the opportunities. So we continue to avoid those. But were also taking a healthy way and the cyclical stocks like financials and energy. They should have the biggest recovery what markets stand out we view we agree with the view i think its evidence when we look around the world german dax is a strong market here. A lot of china exposure. Sweden, the fact that sweden is the strongest market in europe they bottomed and turned up. I think whether its sweden or germany or chinese yields, there is a lot of sicyclical signals what does that mean for industrials . Theyre the benefactors when we see that globally. You think that gives validation to the covid19 strategy yeah. They have the most stocks in an up trend you can say that is leadership it has a lot of industrials. But i think that is a surprising outcome given the route that they went. Yeah. I think it would be surprising the death rate is much higher than the neighbors mike, i want to turn the focus back to the overall market today. M a is also a huge catalyst and a theme. And there was something common across all the stocks that were in deals today that is they went up that wasnt outright m a gilead even with the complaints that they were overpaying for that went up so whether they were individual strategic thumbs up from the markets or a general feeling of confidence, that helped the tone no doubt. M a is a feature of bull markets. It is an undercurrent. I dont think todays activity means were in this high velocity boom that is shows there is enough ceo confidence theyre sitting back and hunkering down and waiting in the bunker of all that stuff fits together. Will feen its not so much about, you know, all the deals are home runs and spawn follow on transactions or anything like that it shows that you nobody really feels like anything kind of overstepped the prudent line with any of the deals announced to day you drawn to the dividends on offer in the banks i am. I would like to comment on the m a. Theyre saying the coast is clear. We can now step and the worst of covid19 is behind us. It also tells you the fed is helping support nat only the market through pe ratios and also through chief financing finally, its no coincidence that the m a were seeing is the health care as these have been the pest performing sectors. That happened. But, yes, absolutely from the other half of the barbell, were getting banks and financials chris and tony, thank you for joining us to day. Thank you lets move on to the tiktok announcement oracle confirming its part of a proposal to be a Technology Provider for the chinese company. Lets bring in alex kantor and casey newton from the verge. Very good afternoon to you both. Alex, ill start with you. What is your take away from the level of deal that we look like having here. Its not what people were anticipating oracle is putting in a bud to become the trusted tech partner of tiktok. To me trusted tech partner sounds like, you know, official pickup of the nfl. Sounds fancy but what is it in reality . We dont know exactly what it is but we know for sure that its not going to be the owner of tiktok so that means theyre not going to possess the algorithm we dont know what theyre going to be able to do with the data underlying the app its not like bite dance is going to come in and help them make better social apps. Its a head scratcher on both sides. Casey do you feel as skeptical about this as alex does i do feel skeptical the stated point of this deal was to, you know, protect americans from the possible innuns of chinese propaganda or data theft if oracle becomes Cloud Storage for tiktok, its unclear what that would solve the question is whether trump will follow for this deal which seems to accomplish nothing he said he wanted to accomplish what does this mean, casey, for facebook and other rivals to the tiktok product is this a sort of blow to them if tenl senlly the thing gets to run as it was . I think the bigger blow to them would be a country just banding a social app un las rally because they elected official there got mad that poses a huge risk to Companies Like facebook all around the world in the short term, it is going to create more competition for them at home but they want to operate in a world where these networks are allowed to compete alex, you raise the National Security issue that is really my question here. And whether this kind of deal would protect americans data and protect americans consumers prothe disinformation and all the other things that, you know, you would worry about when it comes to the Chinese Government having access. Does it accomplish that . I mean, dissmfinformation it doesnt. We know that the algorithm isnt coming along from the deal now from a data standpoint, if oracle sl going to provide back end services for tick to being, i can see as a useful check on what the Chinese Communist party might do on the back end with bike dance that we wouldnt know i think there is a positive there. The third part is we know that oracle is very much into domesticer is vaulance theyre great and essential. Will we see more surveillance of americans at home while, you know, pushing that threat of Foreign Government interference away i think that is a possibility too. It is multifacetted and complex. But ultimately from a National Security standpoint, i think it is likely a benefit. Mike, clearly oracle is up 20 . Is there any surprise that microsoft is not down today . I was trying to sort that out. Ut is very tough to figure did you have an overall strong take st microsoft was getting bid up when it seems like they had the insidetrack on this deal its barely up so i would say that, you know, up, you know, twothirds of is on this news, it was never going to be a huge piece of microsoft business wise. The there may be more relief that they dont undertake this the if it wasnt available, if were finding out now that essentially a deal was not really on the table, i dont think it changes a lot in terms of their competitive set, especially if tiktok is going to remain as is i wonder casey fit changes the competitive setup of oracle which it shares did rise today and respond. When is the last time you wrote a sexy story about oracle and when did they ever show interest in Consumer Technology you know, im trying to figure out even if i have a pr contact over there this is not a company that we hear from very much. And, you know, i also point thought is a company that said almost nothing publicly about what it intends to do with tiktok so oracle itself is creating a lot of mystery here. For me it is also leading to a lot of skepticism. I cant imagine a worse culture fit for the folks. But i know attic tok than oracle this is, as you know, not a Business Done for Consumer Technology so even if this deal somehow happens, i am going to continue to feel really bad for the people attic tok that were just trying to make a fun and social app. Although, casey, you admitted yourself you do have a contact at oracle. Maybe youll change your mind once you spend more time with them if you got one, please send them to me hes not spinning it. Anyway. Casey, alex, thank you both very much for joining us. Great discussion and up next, why trading shares of private companies could be piinupoon ckg sand what it means for investors. Were back in 90 seconds pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. J. P. Morgan is going to get into trade willing shares before the ipo. The bank is launching a new team focused on connecting buyers and semiconductorers sellers in it the private market the companies include spacex, robin hood and tiktok. Lets bring in the cofounde and managing partner of bracket capital. They specialize in private markets. Very good afternoon you to, thank you for joining us zblfr pleasure to be here again. What is your take on essentially j. P. Morgan moving into this space . Is there enough demand out there for the ability to trade private Market Companies absolutely. You know, i would say actually that the challenge will be on the other side of the equation demand is very strong. Increasingly strong from various different investors that i classify as cross over investors. You see banking clients looking for the shares so its no surprise that j. P. Morgan and other banks will follow suit in the very near term by nature, private markets are capacity constraint, however and so getting allocations in the size which is necessary to get that demand i think will prove to be more of the challenge than the demand side of the equation than itself. Youve been involved in this area for a while a little ahead of j. P. Morgan moving into this space what evaluations like at the moment and how long will they remain there if there is an influx of demand for a limited number of stocks or companies or shares . Why is this a short lived fore you know, it will be interesting to see i think that one thing we know is the case is that Traditional Asset Management with Public Market only allocations is a thing of the past. The line between public and private investments is really blurring, dissolving i think most Asset Managers and investors are looking for allocation to equities in it a more broad based format and that includes Companies Like spacex and airbnb that you talked about before theyre private by design as opposed to aby necessity i dont think there will be significant demand for many years to come. This market will become much larger and much more liquid. And i think that it will be occupied by a number of native brokerages and incumbents like the large banks. One of the issues is how to do that in your world of Venture Capital during the growth phases before they go public. Uber is a great example. All the investors, private investors made money the public investors havent. Thats exactly right theres significant issues when you think about private markets and most assets in general i think its even more exacerbated in a market like this where demand very materially outstrips supply. And that is typically the types of names that you can get access to as an outsider and somebody not on the inside of the very organic Silicon Valley networks, are the companies that you dont want to buy. And the companies you do want to buy are slow for choice. They have many more investors thn they need. They have capital knocking at the door than they have shares available. I think that well see growth in the asset class in the years and decades to come. I think theyll continue to be dominate bid specialty Fund Managers via Venture Capital funds that do have the experience on the ground sourcing the shares. This is voluntary different than logging on to the bloomberg screen and executing shares the way ourselves and other investors trained in the more classical models have experienced. I think there is a learning curve. We welcome them. And we do think that this is only the beginning of the a very large influx of capital to the traditionally nonaccessible assets if youre simplifying and saying youre a broker of the shares in the companies, what is the fee . I mean, Public Markets they gave away the fees to a matter of basis points what is a fair fee can you charge when you give a private investor access to the private companies . Yeah. From our perspective, were fund manager. We dont broker shares in these kinds of businesses. But forge, j. P. Morgan is in the game many other competitors in that spate can typically charge anywhere between 2 and 5 its a lot like the markets. The bid offer is very large. I would expect the fees at j. P. Morgan without any inside knowledge of their pricing systems which you would expect them to use their large Balance Sheet to arbitrage away that offer which is good for investors and Fund Managers. Thank you for joining us. Thank you for having me we appreciate it. Up next, mike santoli is back to look at whether the recent decline in the kmek surprieconoc supply index is a red flag you can watch and listen to us live on the go on the cnbc app well be right back. For skin as alive as you are. Dont settle for silver gold bond champion your skin gold bond you can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Stocks closing sharply higher the dow is up more than 300 points mike santoli is looking at the u. S. Economic surprise index which had been doing very well, mike what happened lately its still doing well never more surprising. Its one of the many charts that covid19 has broken in a sense look, used to be pretty much in a narrow range this is, of course, how Economic Data comes in relative to economists forecast. So its not the absolute strength or weakness of the economy. Its how much data are beating expectations and here you see, kind of this revery, very slow to catch up to the fact that we were getting a recovery in things like the labor market and things like manufacturing and retail sales over the last couple months. You have gone a little lower so maybe you have to be on alert for the fact this is going to finally revert back towards the main here. I will say as an observation, these are the best buying opportunities when theyre really when the index is real low and then snaps back. That was in march and then 2011. You have 2009. Those are when you get the real fat pitch for buying the huge washout in the markets so its unclear if you have a signal on the top. Take a look at the internals of the market in terms of industrial, Consumer Discretionary and equal weighted basis against tech outside of amazon, that shows you the market latched on to this trend its no the necessarily just kind of an academic exercise you get a full slate of numbers in september it gives fuel, mike it seems to give fuel to those that are saying this economy is going to be a lot better than expected buy the cyclicals, the industrials. I guess the question is how far are we along youre still up 50 from the march lows obviously, expectations got super low. A tremendous amount of that upside we have seen in the markets is from the areas of the market that are not really geared towards cyclicals will look at the top performers today, a lot of the beaten down hotel and Consumer Finance stocks, the other travel related names. The rental companies are not the ones that led the market in theory, there is room for them to catch up wildfires continue to devastate millions of acres on the west coast. Well ask tom steyer about the Economic Impact from the fires the state tries to reopen the economy in theakofud we v when the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. With the icon that does the same. The rx, crafted by lexus. Lease the 2020 rx 350 for 409 a month for 36 months. Experience amazing at your lexus dealer. vo while you may not beg running an architectural firm, tending hives of honeybees, and mentoring a teenager your life is just as unique. A Raymond James Financial Advisor gets to know you, your passions, and the way you help others. So you can live your life. Thats life well planned. President trump meeting with California Governor Gavin Newsom as historic wildfires ravage california, oregon, and washington the fires have left 33 people dead and more than a dozen people missing as of august 30th, california reported 6,000 wildfires and more than one million acres. Tom steyer joins us. Very focused on climate. Tom, good to have you here the. Sara, great to be with you let me just say one thing its hard to do are you going to talk politics i wanted to put aside mikz of politics. You said a million acres burned in california so far this year just to be clear, 3. 5 million acres burned in california so far this year. Wow so three times that amount its been very rapid and its been historic, more than any other year and were half way through fire season. So my question is what is the Economic Cost of all of this on the western part of the u. S. And for the u. S. In general . How do you think about that . The first way to think about that is just the destruction of bullings, of structures, of life its definitely in the tens of billions or hundreds of billions of dollars i think the real question here is this is not a one off experience, sara you know, what were seeing is the worst wildfires in california history by far. Following the highest temperatures in california history by far that is a climate related event in a Climate Crisis that is not stable or contained but in fact is continuing to grow worse. Where were seeing the wildfires, the historic, you know, devastating wildfires at the same time that there are five tornadoes in the gulf of mexico and the hurricane hitting louisiana, alabama, and mississippi today. So were seeing, yes, structures being burned people dying we need to get leadership in there to deal with the crisis as it gets worse. And i want to talk about solutions in just a moment as outline the damage and we watch the sort of apocalyptic images on our screen, california in particular, tom, where youre on the task force for the governor advising on the reopening, it couldnt come at a worse time with the pandemic thats the outlook for home value. And companies. And basic economic activity. We have to make sure we protect lives and thats the best way to protect livelihoods. The i think hes right thats whats been true. And i think that for us to come out of this, were going to have to support small business. Were going to have to rebuild this state with equity in mind and with a Clean Energy Economy in mind. And theres no doubt that the pandemic has hurt us but its also true that Governor Newsom stepped up accurately to protect lives. There is an awareness of Clean Energy Jobs across this state as we rebuild tom, to what extent could these fires have been prevented or put a different way,ing what could joe biden do to make sure they dont happen in 2021 . Well, wilfred, lets break down this problem into immediate adaptation and reaction to the health and life threatening aspects of the fires and then the longer term control of this Climate Crisis is it true that we could do short term things in terms of where houses are built, how forests are managed, how people are directed to protect lives and safety yes. And its also true that the federal government owns half of california so to the extent that were going to do better management of the forest, that is largely a federal government issue but there is no way to say that over time we can adapt to the changes that the Climate Crisis is bringing to california and to all other the other 49 states this is an issue that requires new leadership, obviously, in the presidency we have a great candidate on this in joe biden. Its a global issue where we need a president who can lead globally because 85 of the co emissions from outside of the United States. And we need a president who understands that in it fact doing this is a gigantic job creator. You know, were talking about an opportunity to control a crisis and create millions of good jobs our society concentrated tochl yinz and pollutants for in memorial it is time to retell this story and to understand that solving this crisis is a gigantic economic boost and thats what joe bidens plan does. Climate plan is a jobs plan and an Environmental Justice plan. We need a new understanding of where were going, wilfred and the time is now. To that point exactly though, tom, to the need to retell this story and reframe this story as you know, i started the largest youth Voter Mobilization organization in the country next generation and there is absolutely no doubt that this topic about climate is the number one issue that is the number one age cohort in American History and they voted half the rate of other americans. Young american citizens taking power and insisting that we did the right thing on climate i think weve seen it in it the primaries. We saw it in massachusetts with ed markys historic victory with two to three times the normal turnout and young people across this country, i believe, will show up for joe biden and flip the senate because they know their entire futures are at stake. Theyre smart. They care. And were going to see it this year i know youre putting a lot on the government. But where the wildfires are raging right now is home to all the biggest and brightest Tech Companies in this country. Amazon, facebook, google, microsoft, salesforce, all located in those states. Is it up to the private companies, the private sector to do more on this issue particularly for their communities . And, do you worry about an exodus of talent from the companies if theyre libel or worried about the worker safety and air quality . You know, sara, i think were all worried about safety and air quality. I think if you look at what all of those companies and specifically the leaders of those companies have been talking about clean energy and climate, theyre absolute leaders. You know, california has the most Progressive Energy laws in the world. The west coast is the center of innovation in terms of clean energy as well as Information Technology but this is a global issue it hits everybody. It is not solvable on a local basis. And, in fact, those tech giants are the forefront of insisting on clean energy in terms of their own business and in terms of their own supply chain. This is, in fact, something that needs government leadership at the very top all of those tech leaders would fall in and support it 100 . But we need a president and we need a congress that insists on a new way of thinking about energy and leads the world the way america used to lead the world from a tech basis, from a job creation basis and also in terms of a morals and value basis about protecting lives here, at home, and abroad. Tom steyer, thank you for joining us sf thank you so much for having us shares of caesars hitting the jock p jackpot after reaching a deal with espn. Well ask caesars ceo about how the deal will attract new sports gamblers and impact competition with rivals. Some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. Were getting news on Facebook Julia has the details. Sar yashgs a buzz feed article revealing that a data scientists wrote a wris will blower memo saying that facebook ignored global mill manipulation the 6,000 memo gives examples of heads of government and Political Parties and honduras azerbaijan and other countries to influence public opinion. Facebook responding to us, we built specialized teams working with leading experts to stop bad actors from abusing our system resulting in the removal of more than is 00 networks for coordinated and authentic behavior, working against that pry and were addressing spam and fake engagement. We investigate issue carefully before we take action or make claims publicly as a company. Certainly something to watch facebook shares not really moving on this but certainly a accusation there on a topic that facebook is really working to improve. Back to you. Julia, thank you for that ncht time for a cnbc update with sue herrera. Hi, sue. Hello, everybody. Heres what is happening at this hour Hurricane Sally now expected to strengthen to a category two and possibly become a major category 3 storm by tomorrow morning. Land fall is expected late tuesday with heavy storm surge earlier in the day in alabama, residents in coastal communities are boarding up their homes and making sandbags to keep floodwaters from sally at bay. Last minute preparations also under way in mississippi the latest forecast now predicting new orleans will escape sally with little wind damage out west in portland, oregon, smoke from wildfires filling the skies there. Two fires in nearby counties have burned more than 320,000 acres. Emergency management officials just reporting 22 people are missing. And in south carolina, Lieutenant Governor Pamela Evette tested positive for covid19 Officials Say she is recovering at home with her family. She says she feels luckily to have suffered only muild symptos from the virus youre up to date. That is the news update this hour back to you. All right sue, thanks. Up next, shares of Caesars Entertainment spiking on a new Sports Gaming deal with espn well talk to the companys ceo right after the break. Since my dvt blood clot. I wasnt sure. Was another around the corner . Or could things go a different way . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be worth waiting for. Ask your doctor about eliquis. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Ncht shar shares of caesars surging this morning after getting in a deal with espn Contessa Brewer joins us to talk about it along with caesars ceo. Thank you for that. Tom, its good to see you today. Thank you for joining us on such a buzzy dsy day the stock is up 10 and so is penn talk about who the competition is, how much this deal costs you, what does it do to your profit marnl margins this is an exciting day for us we worked on this for some time. We have an existing partnership with caesars this broadens and expands that relationship and it gives us access to Customer Acquisition costs that should be extremely attractive to us. I cant disclose the price but we think this positions us well to be a leader in sports we this think is going to be a number of winners in this space. Is. Will it affect your marbligis no, it should not be material to our margins its actually a quite an attractive for all sides tom, there is a lot of chatter right now that this is looking a lot like a bubble, maybe a dotcom bubble of 2000 mike santoli said when i reported this an hour ago, that he is seeing hair trigger enthusiasm he calls it kind of a gold rush. Are you concerned . We have not seen that to date in our equity. There is very little in the caesar shares for Sports Betting. So im not particularly concerned with our own stock this is an enormous opportunity. I liken it to when states outside nevada and new jersey started to legalize riverboat casinos in the 90s we is no the seen a Growth Opportunity in this space in quite some time. So its an adjustment for analysts to look at a hyper growth piece of business that has been mature but we think there is a lot of money to be made here over time and were seeing a lot of interest from nongaming operators this espn agreement being the latest evidence of that its sara no question, wall street is bullish on betting but what about your core business how would you characterize what demand is like right now in vegas at the casinos so we got two pieces of our existing core business, sara we have the regional markets where property where you can drive to them. And generally not dependent on hotel stays. That business has been quite strong margins are up 1,000 plus points in that business in the destination markets of which las vegas is one, were trailing last years numbers basically weekends are very strong in las vegas. Week days are missing the Group Business so were running about 50 occupancy on week days and full on weekends. But thats been grindinghigher as the weeks go by tom, i just wonder whether all this legalization of Sports Betting is moving a little too fast i think you said hyper growth to describe it. And you obviously partner with william hill in the uk in the uk theyve had to ban the advertising of Sports Betting in if and around luf Sports Events because of the levels of addiction it is causing. Is the u. S. Moving too fast from zero to flat out and your partnership with espn is a great embodyment of that might there be problems down the rooe r road were in the very early stag stages legalization of Sports Betting. There are only a handful of stauts that are legal as we sut here today i expect to see states that have budget issues related to the postcovid era that may look to sports and online as a way to raise tax revenue. But all of these states that have legalized already have gambling prior to th this is really just another piece, another option for betters and every Regulatory Agency is keenly focused on managing responsible games and crease ares is a lead cesars itself is a leader in responsible games so we have it in place. This is responsible the American Gaming Association association talks about new technology that brings a bubble so to bring restriction as cross state lines. Pretty remarkable. Speaking of advertising, you are not a big believer paying a lot to market your product how do you grow profitably this giant business without the cost of marketing youve seen the bulk of that stripped out postcovid just from restricted for Public Health reasons what you use for marketing, buffet and food and beverage, promotion thats gather significant crowds on a friday or saturday night. So all of the operators are seeing what operations look like without those subsidy in there i expect everybody to be sticky on the way back. I can assure you that we will be on the sport and online side this is the key to this espn deal for us. This is an attractive way to access a gigantic potential customer database and bring them into our system rather than you are seeing he adds words effectively buying new business. It had is a much more economical way to acquire customers and build market share in that space. And what does it launch we are going live as we speak today, it will launch, it will start to roll out as states legalize, id expect, your fully integrated and operational across a significant number of states by march madness this year okay. Tom, good to see you as always thank you for coming on today. Thank you. Exciting news in the world of Sports Gaming. Very good to see you tom and contessa thank you for bringing that to us psill to come a total snooze pei co launching a sur prizing product got wall street buzzing. Next introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. The big events are back. Xfinity is your home for the return of live sports. Up next, drifting further into health and wellness, pepsi launching a new product,t is main goal might surprise you, thats when closing bell comes right back when i was in high school, this was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. 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. Energy drinks have been a growth area for soft drink makers and pepsi c is betting you want to deenergize it is called drift well to help consumers relax and fall asleep, in the category of food and drinks in quote functional category question have seen new hard seltzers and this product is different. Contained altheamine found in teas and fda approved. Coming in 7. 5 mini cans in black berry lavender, also good for sleep, its the perfect size for hydrating before bed time without requiring a trip to the bathroom, this is kind of a cool product because the idea for it actually came from an internal pitch and this is the winner and fastest ever to market in about a year will launch ecommerce end of this year and in Stores Next Year my read on it, its a trial balloon not necessarily the next trillion dollar brand for pepsi, the stock or anything, but its not cbd, and it does get into wellness category. People spend a lot of money to sleep better. Without a doubt theres mel a tonein gummies all over my house. Is it an instant thing, what you dowe know how effective it is . Im no scientist. Its an amino acid meant to help feel relaxation, theres no Health Claims on the cans or anything like that, as a product, its more of a natural supplement to relax you. I look forward it to it think it will be worth trying. We are out of time on closing bell fast money starts now. And this is fast money and im Brian Sullivan in for melissa. Good evening, everybody. Todays trader lineup. Guy autoa a monday market move inching back to highs and one saying be wear of another sell off and why to be so worried espn doubling down on casino bets, share of two stotlcks hitting the money line