Last ten minutes or so and finally, optimism around the possibility of new stimulus. All of that helping the market up about 1 on the s p 500 as we stand. Coming up on todays show, big moves in the banks space and Goldman Sachs is bringing workers back to the office well talk about that with the president and ceo john waldron and Michael Novogratz will lay out the risks he sees. Mike santoli is tracking the Market Action and a pair of key faang names holding their annual meetings as tech underperforms today and mike, start us off with the Broader Market and the action were seeing right now. Yeah, so weve been talking about this rotational activity away from the big growth winners into all other areas of the market that are more sickly call and smaller. It is really happening in a benign way so far. Sometimes the baton can get dropped in the handoff but it is towards its highs so kind of stalled out at this area, but below the surface, equal weighted is up close to 5 so it is kind of stuck there almost for good reasons because of the rotation into more cyclical economically geared areas. At least the story for now obviously you cant count on that continuing in a seamless way. But i also wanted to highlight the credit markets and the high yield hygtf. It continues to point in the right direction, still well off its strongest levels still not where back to the lows before all it started. But the fed support and a lot of investor response which has helped this out. Look at the pace of inflows into the hyg, it has hit a bit of an overheated level so maybe this has to take a break, this bottom panel on that chart is also the premium of the share price of hyg to the net asset value. So this is an etf trades based on an index, slightly rich to that index by about 0. 8 and while that is not out of whack, you see how volatile it was. That is in part why the fed has to say we want to make sure that the markets function properly. Arguably ris arguably risk reward might be tilts against it, but we want to watch it as either confirming or opposing point on what the equity markets are up to so the theme that you say continues today, value over growth, obviously it is key. Investors want to know should i get into more value like financials and industrials what has driven that shift and how can we rely on sort of the fundamentals to tell us whether it will continue two things seem to be driving it one is strictly i think an investor positioning issue people saw how stretched the large growth trade got relative to small value it seemed just it could have a mean reverlgs thesion there but also the fact that all 50 states are in the process of reopening the economy, that we have not seen anything to interrupt the idea that were in for a few weeks with increasing activity, and seeming like there is a cushion and if things can get moving fast enough, we wont gr drop anything big along the way. Again, they got so stretched looking at the top stocks in the s p yesterday and today, and they are up a lot. It is travel, retail, finance names. Yet they are all still down on average 40 from their high. So there is just so much ground to make up that simply at little bit of flow from one of those groups into another has a lot of affect on the latter group and the other point id makes a well, Brian Moynihan is presenting at the conference as we speak and he struck kind of similar stones to what jamie diamond struck yesterda dimon yesterday including mortgage forbearance, that the data on that is improving and much reduced from the earlier weeks and again some people already making payments again. And he said data that he released in terms of Consumer Spending not quite as bad as some people feared down 7 in april, down 5 in may. Again, painting perhaps a slightly better picture that the worst case scenario. And kind of similar to yesterday again, intra day highs for bank of america stock up about 6. 4 during that presentation and ill point out john waldron this morning programs wasnt as constructive as moynihan and dimon were so well be good to speak to him coming up at will 4 10 p. M and Goldman Sachs stock only down 10 year to date. Meantime, lets drill down on amazon deidre bosa has the headlines of its Share Holders meeting. And this was their First VirtualShareholder Meeting, so we didnt see the protestors and activists signs, but we heard from a few of them and certainly the pressure was still on, especially when it came to the companys Covid Response which has been under scrutiny by employee, activist groups and lawmakers. Today was a chance for Share Holders to voice their concerns. One share holder proposal called for more disclosure of covid19 patients and warehouse conditions am mid tid the pande. And jeff bezos took q and a at the end of the meeting, asked whether increased scrutiny could hurt amazons reputation with customers. And he said no, we welcome it. Asked whether he thought amazons leadership and board has done enough to protect worker, and he said yes, they have done a remarkable job but amazon shares are down today but trading near alltime highs. And bezos closed the meeting by saying when you find yourself between a rock and a hard place, the way out is to invent your way out. Back to you guys i guess he has track record of doing that. As for the actual votes, did any of them go against the company, were any of them even close . No, there was about 12 shareholder proposals ranging from an independent chair of the board to environmental concerns. None of them specifically drilled down on amazons Covid Response, but the theme was intertwined through all of them. The board remains in act and the Company Proposals passed deidre, thank you. And facebook held its Shareholder Meeting today and Julia Boorstin is monitoring that one for us. Thats right, Mark Zuckerberg controls the majority of facebooks voting shares on the companys proposals including reelecting the board and executive compensation were approved and all the proposals opposing zuckerberg were rejected, including limg naturing hnatur limiting his voting control, and having a man dated independent board chair, and other proposals were calls for a report on facebooks advertising rules, another one to prohibit encryption in order to prevent child 2exploitation and another on pay equity. It will be meaningful to see which percentage of votes they draw. And it will be included in s. E. C. Filing that facebook puts out in the next couple of days but for now, zuckerbergs control prevails back over to you i guess, julia, shareholders dont have that much to be upset about because the stock has done relatively well even in the face of huge challenges like the regulatory overhang and the political battles and the controversies over fake news the performance has spoken for itself yeah, thats right. Look at that year to date performance, up about 12 . So the stock has done well, but also, these are complaints that Share Holders have had for years can now. This is just the later and i believe the theird or fourth yer that asked zuckerberg not to be chairman as well as ceo. And they know that zuckerberg controls the majority of votes i think it is really more about making a statement, asking the company to take steps to have greater oversight with the full knowledge that they may not win the vote, but they can send a message. True. Julia, thank you and on that note, dont miss andrew ross sorsorkins intervi tomorrow morning and the dow is adding more gains, but Mike Novogratz sees big risks. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Michael vasquez come over here. Ive heard such good things about you, your company. Well, i wouldnt have done any of it without you. Without this place. This is for you. Michael, you didnt have to. And, were going to need some help with the rest. Youve worked so hard to achieve so much. Perhaps its time to partner with someone who knows you and your business well enough to understand what your wealth is really for. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Welcome back were just over an hour away from the moment of truth from spacex and American Space program, 4 33 eastern time spacex plans to launch two nasa astronauts into orbit, the first crude mission to space and what Jim Bridenstine called a new era in space flight. We will certainly be watching this, 4 33 eastern time. Stay tuned, well have all of the key moments as we approach that looks a little cloudy i hope it clears up so that they can take off and dont have to delay it i guess they will break through the clouds i dont know how much of a difference that makes to be honest well speak to our experts later in the show. And Morgan Brennan our space guru tells us that they could change it based on the weather, they are just monitoring the conditions in real time. And if they decide to delay it, they will try again on monday. But were glued to the shot. The president and Vice President set to be there, wishing the two astronauts well as they go up to their mission. Back to the markets, the dow and s p both higher after volatile trading led by reopening plays like traveling and airlines doing well today joining us now for market outlook, Michael Novogratz is back on the show welcome back sansmustache. Looking good how are you feeling about this market ive been on here a few times and ive been more bearish and i always thought that there was this tug of war between fundamentals and liquidity and obviously liquidity is winning the tug of war weve taken it as pretty big chart levels and i tried with puts and put spreads and almost have thrown in the towel i still am worried when i look at the supply situation. The last few years, the whole market was driven by buy backs they are down 80 this year, m and a is pretty much dead and you have huge supply so this is a market that once it runs out of its enthusiasm i think has a ways to fall and im not fighting it right now, the market feels like it wants to go up, were seeing a lot of rotations, you know, into stocks that lag the market that were probably beaten down. So maybe there is one more are leg up but i dont think that it is a market that you will buy and come back in 12 months we might have one more little leg up here. But i still think that the supply is down and the fact that will the economy come back anywhere near where tfz it wit s and do you think it is telling that the likes of apple, facebook, amazon are in the red, only that you will get rotation one way or the other, you wont get banks and the nasdaq both significantly higher on the same day . It feels like that. I dont think that that is a great sign for market vols well see how far the laggards can go before they run out of steam. They have been beaten down a lot. And especially when you were talking about the travel stocks before listen, covid will end and well start traveling again, so there are plenty of plays in that stays that i actually find appealing. But overall the market just seems way too optimistic given a really difficult police situati political situation. If joe biden becomes president and i dont think that he will, i dont think that people will want donald trump president for a lot of reason, and that wont be good for the markets. Corporate taxes are going up, not down taxes are going up, not down so well run into a political environment that just cant be this optimistic for markets. You think joe biden is going to push to raise corporate taxes and taxes at a time whereas you laid out the economy wont be back up to where it was before the crisis yeah, this narrative that, you know, amazon paid no taxes and made gill ga zazillion that has a big force the drive is poplism and the idea that the billionaires have made 347 billion in the last eight weeks during covid and even else is suffering is such a powerful story, if you are a democratic president , you got to do something. And so silicon valley, beware. There will be pressure on these companies that are making so much money to pay more of their share. Deescalating tensions with chooif, shou tensions with china, should that be worrying the markets . It should be worrying the Hong Kong Market i think that it is a stunningly important development. I think that that is risk destability l losing. And pompeo said that we dont anymore recognize china hong kongs independence. So if we start using the same rules that apply to china and hong kong, there is a whole lot that changes you could see funding pressure on the hong kong banks which create the funding pressure on the reminibi and it will crate a lot of uncertainty and a lot of, you know, bad pressure mike, you said that the overall markets are moving against sorry sorry, i thought you were done just wanted to talk about your specific calls here. Understand the market is moving against your bearish view of where were headed are thereany spo any spots wheru are putting on shorts positions or betting against Certain Industries or sectors that you think are not connected with reality . You know, i havent specifically there are one or two stocks that im short that i dont want to mention. But i keep buying put spreads and losing a bit of money to stay in the psychology of the game and hoping making money in currency and fixed income and bitcoin and other things to make up for it. One of the funny things about running a family office, you are always in some ways cheering for overall markets to go up because all your other element assets ae to the s p to a degree and so im not unhappy the market is going up, im unhappy that ive been wrong about it. I want to touch on bitcoin. That was a relatively bear wrish no note out of Goldman Sachs. And one of the arguments is t si wont act as a typical hedge that people might think of gold for example. Where do you stand on that issue in particular . Because clearly you are a long term structure augu structural bull on bitcoin so where do you stand . I think that it is a great hedge and it is a broad hedge against the fact that we are moving to a world where we will monday size oetize our debt at. Only time weve had deficits like that is world war ii. So if you just keep applicanprir assets find a way to go harder so bitcoin is a heenlg to readge global uncertainty you know, it is funny, i talked to charlamagne before she wrote this piece and i got her story, but i keep thinking that she owns wealth management, they have old conservative clients, and i think that you are missing thes bigger picture. Like that paradigm is shifting and it might not shift next year, but the probability that it could shift is a lot higher than it was when you look at the deficits that the entire developed world is running so were seeing more and more an option, more and more rails put in to make it easier to buy. Bitcoin is still hard to buy so this whole industry is putting it on. And i guess the last thing id say, when does something become a story . 100 Million People own bitcoin does Alan Greenspan have to say it at what point do people say it is a storied value i think that were way past that moment charlamagne obviously doesnt think that weve gotten there. But i think that weve crossed that rubicon and now it is a matter of time before you see more and more reduction and that is my stand and im sticking to it Mike Novogratz, thank you always good to check in with you. You guys as well. I for one miss the mustache i thought that was stellar but there we go. I got a call from my mother who is turning 80 and she is like it makes you look tall, please shave it. So when your mom calls, you dont have a whole lot of there is not a lot of negotiating power. Ive xwabeen there you cant deny the mom mike, thank you. 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