market >> we have a great lineup of guests coming your way we'll speak exclusively with morgan stanley ceo james gorman. his take on the market's come back the read on the economy and the strength of the banks. plus, you will hear from the ceos of macy's, signet jewelers and brown foreman. they're joining us to discuss their path forward for their respective irz stroo respective industries. but let's begin with the broader market the rally, take the pause today following the rapid surge that pushed the s&p 500 back into territory for the year if we close higher we'll get another record close for the tech hefin' dechl. what you are watching? >> it does look that way, sarah. a recoil from the recent trends. the headline index is pulling back outside of the index. the majority of volume is to the down side. this is one day where the indices are understating the weakness they want to take a look at the one year really all the pullback meant is a little dip below 3200. it held there and bounced modestly since then. that is really not much to report there is nothing going on in terms of significance of a pullback unless and until you get down in that range below 3100 or 29, mid 2900 at this point, we're still kind of working off that pretty stretched steep asent that we saw. nasdaq 10,000 means a few things double the level at a basically peeked nat 2000. i have a 25-year chart so each percentage changes the same so this double where it peaked in 2000. just look at the steepness of the acceleration to 5,000 there over the course of four years. doubling in less than a year at one point. now is obviously been incredibly strong market. a much more orderly asent. yeah, that's been steep. it's been within this uptrend. maybe it is getting ahead of itself it doesn't look anything like that it was a big deal at the time. it was cheap to trade. e- trade was lower than that ameritrade was cheaper than. that one thing that got people moving in the direction of speculating in fast moving stocks, we went to zero commissions. maybe it's early in that process. morgan stanley chairman joins us james gorman joins us. >> great to be back. >> i listen to your presentation you made at the morgue an stanley conference today i felt it was really quite surprisingly positive and upbeat i guess i wonder whether the word surprising is warranted though when you look at your stock, the s&p 500, both essentially now flat year to date did you think this huge bounceback is warranted, james >> there were a couple separate questions. clearly, the bounceback and the magnitude of it has been a surprise to me you know, we're still got a troubled economy we're finding out our path back from covid-19 with the opening up of the economy. i think some people are interpreting opening up to the economy being great. but that is clearly not going to be the case for some time. there is certain segments and certain industries that will struggle for some time so, yeah, i'm surprised by the equity markets, frankly. but they are very tech centered. that is what has been driving a lot of the activity. >> what about the unemployment data we saw last week? was that a game changing moment to see it move in the other direction that it has been of late >> you know, from my mind, it was game changing in the sense that i think we passed the bottom and there is panic on how deep is the bottom? the sense that okay we're in a recovery so let's get ahead of it that's why you seen these pretty graphic moves in the equity markets. but yeah, it was encouraging but at the end of the day, unemployment still remain for some time well above 10% which given we're at 3.5% before all this began, we still have a lot of wood to chop to get back there. >> online account openings for e- trade and also t.d. schwab look incredibly strong of late you must be feeling great about the acquisition now. i guess pleased to see the markets kind of giving as much of a push to reaction to it as well >> listen, i love this deal from the beginning. i've been talking to e-trade on and off for 20 years through my career. i always felt that these channels were converge i think the digital technology, the online banking capability is extraordinary. and, you know, we could structure a deal to work for everybody. so i'm thrilled with it. in fact, i'm given that everybody is now being working from home, there's been more digital indirection having world class digital capability together with the stock planning business is just fantastic so i'm thrilled about that for the account openings, what you're seeing in the early commentators were talking about it, you're effectively got a lot of gambling going on there will a lot of people in there chasing some of the relatively obscure stocks around and, you know, they'll make a lot of money in a few days and they can just as easily give it back in the next few days. i'm looking for durable and can stick. >> i wanted to go a little deep near that, james it relates to the move in the market you mentioned the word gambling. huge numbers of new account openings do you therefore put a little bit of credence to the argument this latest short term leg is down to retail investors and some of the themes you're seeing there mark the top and the short term at least? >> i don't think so. honestly, i think the amount of retail activity that, is you know, at this level of speculation in dull terms is small. and accounts, number of accounts and numbers of individuals that is quite large and, you know, maybe it's because everybody's been sitting at home with nothing to do or some people with nothing to do that's what stimulated it. so, no, the market is being mofrd by overall sent. that the world's economy bottomed we're covering from covid-19 they don't seem to be breaking our ranks and across asia certainly. and parts of europe and the u.s. is now trending. look where we've gone in new york city where i am we've had, you know, move from a month ago where the number of deaths per day, deaths were over 700 and i think yesterday last couple of days it's been around 30 so it's still 30. how much of all of these moves are on the fed we're going to hear from jay powell tomorrow. do you see it as dangerous at all that the federal reserve is all in and people are saying, you know, it's brush ago way it's a wave of liquidity, washing away the fund. ales in this economy both in the bond market and stock snashgt. >> listen, i think the fed is doing a phenomenal job the fed's role is to be a stabilizer, to put liquidity back into the market and to take out the extreme shocks and support the economy. that's, you know, that is the core monetary policy so i think the fed is doing has been smart i think they've been courageous and bold when would you ever want the fed -- certainly the time when you're seeing, you know, 30 million people being thrown out of work in the space of a few weeks. this is unprecedented. if ever the fed is going to act, its now. i think it's to do what they have exactly done. >> what about congress james? how much do you expect and see the need for another stimulus package? after that better jobs report, feels like there is a little less urgency on the part of congress to get something done >> there are a lot of businesses it's one thing to say we had a couple million people come back on the payroll after being furloughed there are many, many millions who are not. and many, many small businesses that have struggled. yes, they've been able to bring people back and to pay them under the ppp program. that doesn't mean they have a viable business. the royal is provide the support this country needs to get back to the thriving economy where everybody can prosper from it. and, frankly, we can pay down some of the debt that has been created to facilitate all the programs >> james, i want to pivot to some of the recent protests surrounding racial injustices in america. you sent an e-mail internally to employees in the last week that said, "this week will not be easily forgotten in history and it shouldn't be. god willing it will be seen as a turning point in race relations. i want to ask what you're doing specifically at morgan stanley to make sure that it is indeed a turning point. >> it's been an incredibly searing period i've been in and around the bottom half of manhattan for the last three months. i've seen the massive protests. people are angry and upset and the killing that's have occurred have given cause for that. you know, i told our team the easiest thing we can do is make a statement and give a bunch of money to somebody and then sort of say okay, we've done our job. the harder work is to say what would we actually change internally and effective immediately this week, we did four or five things we appointed leadership to our operating and management committees to reflect the diversity of our firm and the great standing of those individuals. we added a fifth value to our four core values that we've had for a very long time and that fifth value is commitment to diversity and inclusion. something that shouldn't have to besaid we're funding that with $25 million. and yes, we're giving money to the naacp legal defense fund and other organizations and matching employee gifts so the folk us is on making morgue an stanley better that's our job if we can create more jobs and more opportunity for our black employees and other diverse employees, then we'll be doing our job. >> we look forward to checking in with you on the future on the actions. as you said, god willing it will prove to be a turning point. i want to ask about the work from home theme. you operated recently well over 90% work from home during the crisis what long term impact will that have on morgue an stanley's commercial real estate footprint around the world >> i made a comment to one of your competitor organizations. if we demonstrated we could have our employees work with no footprint by definition we would be taking a hard look at our real estate. that doesn't mean we're shutting down our real estate gi any stretch. we've got major headquarters who remain in new york, london, hong kong, tokyo, frankfurt first and all over the world it gives us an opportunity to consolidate where we've got opportunities to do it we have branchs in certain cities that are close together and some of those employees are now working from home. i see it more long term. i think 20% of our employee hours worked will be done from home in the future currently it's 90% in the long run, 80% of employee hours will be done through office space and 20% from home that is a rough guess. i don't know when we get there but with that, we'll become some fine tuning of real estate, thinking through our off shore strategies and thinking through density and major cities i don't think you'll see a radical shift. you'll see fine tuning >> i want to ask why b. your capital return program i know you're clear that you're 100% committed to the dividend how you are thinking about buybacks are they now off the table for many years >> the capital distribution is a function of what earnings you're retaining, how you navigate these crisis and the various scenarios the regulators put together for getting through the crisis and then what the regulatory structure is as to how much capital you need to hold let me just start with how we're doing. i talked about the environment we're in now the firm is doing well we're not going backwards and we'll not underperform the sector we don't have a lot of consumer credit exposure and we have no unsecured consumer credit exposure to, you know, the firm is on strong footing our businesses are doing what they're supposed to do that is performing in a difficult environment. we're under no capital stress. we should be maintaining a dividend for millions of individuals that rely on the bank's dividends but as to the buyback and reinstituting that, it's too soon now we need to get through the stress test and see what the capital position is under the new scb structure, we can adjust our balance sheet and risk weighted assets to free up capital if we need to i would think, you know, over the next several months we'll be looking at bringing the buyback back it won't be imminent but it certainly not going to be years. but, you know, these are well capitalized banks. >> james, i know we're out of time we're very grateful for you joining us i should mention the stock is at a session high it's up 0.6% it also makes you best performing bank of the big six year to date the lesson is you should make sure to come on "closing bell" again soon. >> i was only going to say, the kindness of you and your producers and sarah for bringing me on. maybe i'll come on tomorrow morning. >> we're the afternoon show. perfect. sounds good. james, thank you >> all right all best, bye. >> james gorman there. >> still ahead, the view from the ceo of macy, signet and brown foreman and how the coronavirus changed their businesses and if customers are coming back. you're watching "closing bell" on cnbc. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. sawithout evenon yoleaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you'll only have to pay for the data you need- starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. it's the most reliable wireless network. and it could save you hundreds. xfinity mobile. 40 minutes left of trade breaking news on honda >> you know, yesterday when honda shut down production at a number of facilities around the world, people immediately said, wait a second, was there a cyber attack here? the company confirmed that some of the facilities here in the united states, honda saying that it has experienced a cyber attack that is effective production operations at some u.s. plants. however, there is no current evidence of a loss of personally identifiable information we resumed production in most plans and planning the return of production of our auto and engine plants in ohio. honda has a large presence in ohio this is getting a lot of attention because of honda's foot frint arou footprint around the world this gets a lot of attention, especially in the manufacturing circles. >> it does what about boeing as well? we want to touch on that shares continuing -- well, sorry, they skyrocketed of late. not so much today. >> this is not a surprise. anybody's that's been closely following boeing knew this company was unlikely to pose a positive month in terms of orders and deliveries. no surprise. negative 86 in terms of orders year to date down 602 airplanes. the backlog has fallen back to 4,744. lowest backlog total since 2013. when you look at what's going on in terms of the deliveries, as you take a look at shares of boeing today, they deliver four planes in may. lowest monthly delivery rate in six decades. really to go back far for this boeing and air bus, they had the may not to write home about. air bus had no orders. boeing had negative 86 >> phil, i want to ask you about nicola corporation >> yes nikola what can you tell us about the company and what is driving this craze? >> well, look, they are working on developing electric vehicles. and because of that such a hot market right now and people are looking at nikola and saying wait a second, they're going to come without a truck at some point and then have a semi this is where we want to be. a lot of this is because people look at the success of tesla they also know that this is a developing market. and the stock is just taking off this week. remember, they had a combination deal with victo-iq that happened last week and then the stock really took off this week. look at the market caps here when you look at nikola, they have no revenue. they have no products. they have grand plans that they eventually would like to cash in on f that comes to fruition, great. but we haven't seen anything yet n terms of market cap, $176 billion is tesla then you have ford and then nikola which is considerably lower. a number of people are pointing out in terms of the excitement surrounding this stock, it is way off the charts relative to others and, guys this is what we're going to see for some time to come. look at nikola and others that are in this area developing electrical vehicles. >> they look also, phil, cool. the model on the transformer's movies otherwise, they look pretty awesome. >> you like that you like the electric -- the electric semis have a cool look about them i think a lot of people say, look, can you change things when you take that engine out of the front cab there. and that's what you have >> i think if you can get it in the optimum prime color scheme, you'd have a really good product. >> exactly >> we're out of time, phil thanks so much for that. we've got, what, 37 minutes left of the session we're high by 0.7% for the nasdaq set for a all time closing high. but we're off the session high which is above 10,000. macy's releasing preliminary results. announcing billions of dollars in fresh moneying. the stock gave up the early gains. we'll break it all down in a rare interview with macy's ceo that's coming nt.upex republican leaders including mike pence on this network touted the administration's opportunity zones as a step towards bridging inequality in america. but are investors putting money to work in those areas are funds going to the right places robert frank joins us with that storey hey, robert? >> hey, wilf they're announcing new guidelines giving investors more incentives and more times to invest in the opportunity zones. opportunity zones allow investors and developers to defer or avoid capital gains taxes by investing in designated areas. republican members of congress looking to expand that program to attract even more capital that's because opportunity zones were expected to bring in more than $100 billion. so far it's only about $10 billion. noi critics also say this program is helping investors on many low income communities. projects being funded right now include luxury hotels, condos and retail complexes in a lot of affluent areas like manhattan, miami and the bay area there is never a list of projects or what impact they're having guys, back to you. >> it's also interesting because it's a current part of the narrative on the season of billions st but robert, my question was about the president and the administration's claims. you know, when they talk about some of the racial protest that's we've seen, the black lives matter and how they've been so beneficial as an administration toward african-americans with the unemployment rate, they also point to these opportunities and how they have taken the lead is your reporting suggesting that it's not helping lower income communities of color? >> this bill was bipartisan. you had cory booker on the democratic side, tim scott on the republican side when this first became part of the tax cuts then mysteriously, the reporting requirement was taken out the last minute. so we have no information on what projects are being funded or where they are. so it's been left to journalists to find them they're supported by the yacht marinas. and so the short answer is we just don't know. and we won't know unless they change they have a reporting requirement. they should be transparent about it >> robert, thanks. >> still ahead, 23 and me ceo writing a candid post on racial inequality calling out her own company's diversity stats and adding, the world is filled with people i believe genuinely want to create an equitable society but are unsure how to take the first step to make that happen she'll discuss the first step she's looking at taking towards change later on "closing bell. as we head to break, take a look at bonds yields are slipping to day bonds are in demand. tent year yield inching back towards that .8% level getting awfully close to 1% at the end of last week we're going the other way this week "closing bell" will be right back stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. welcome back 29 minutes left until the closing bell and we're lower but well off session lows at one point the dow was down more than 400 points earlier today we're down about 164 there is the snapshot across industries technology takes the lead. it is green. communications services and consumer discretionary also trading higher today energy, utilities and industrials are the worst performing sectors because of the tech theme back on top, the nasdaq is tracking for a record close here are three things driving the action the rotation reversion as we call it with tech back in the driver's seat. apple and amazon setting new all time highs right now on the other side, the reopening trade takes a pause. yesterday's frantic rally in sectors like retail, travel, energy are seeing sharp declines today. and we will hear more from the federal reserve as it begins the two day policy meeting on what it sees for the economy and unprecedented support that the fed has provided the market. that is out at this time tomorrow >> time for a cnbc news update >> hello, everyone here's what's happening at this hour family members of george floyd speaking of their overwhelming loss at his funeral that is now under way in houston >> i want to say that i'm going to miss my brother a whole lot and i love him i just want to say, i love you i thank god for giving my own personal superman. god bless you all. >> also at the funeral, houston mayor sylvester turner announcing that he will ban the use of choke holds by that city's police force. they're speaking about what the death means to those who survive him. >> we honor him, reverend sharpton not because he was perfect, but we honor him today because when he took his last breath, the rest of will now be be able to breathe. >> you're up to date we'll have more on the service next hour and the other news of the day. sarah, back to you >> sue, thank you. just under 30 minutes left of trade. here's whether we stand. dow is down 200 points at this hour boeing is the biggest loser on the dow right now. but it has been very strong lately the nasdaq composite up .6%. any positive close will be a record high. key level first time ever on the nasdaq they get back to the flat line for the year but it hasn't exactly been a v shaped recovery for every stock. we're going to talk to the ceo of signet jewelers about what the future of her company looks like in a post covid-19 world. that's next. first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance. get e*trade and get more than just trading but a resilient business you cacan be ready for it.re. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or the city government 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about and what we're seeing now is the power of our sales team working virtually. our jewelry consultants are all empowered with ipads they've been working from homes. they've been consulting with customers, helping them to find the jewelry that is right for them to educate, to help cure yat that online shopping journey from their house >> there are whether people want to buy engagement rings and jewelry online without having to go in and try it on. if that is really the case, why aren't your e-commerce sales higher trending up as we got our sales team working from home virtually doing online consultations after we closed our stores on march 23rd, they reached out personally to 23 million customers and did over 100,000 virtual appointments and so that's what really made us see the rise in e-commerce sales in april. >> i want to ask you about the price of gold. when we see it over the course of this year rallies so significantly more because of a financial market and risk move in large part because the economy is weakening is that a double whammy because you see sales drop off because of that weakening economy and pushes up the biggest raw commodity cost that's you have or conversely it is strangely a positive because even if the price of the product rises, it kind of seems more attractive to the consumer to be buying products made of gold? >> fine jewelry is always, i think, good gift to give, something good for people to buy for themselves because it has commodity value. diamonds and gold always have value. and when people are concerned about the economy, they tend to go for that kind of gift more often. it's a large company, we have great relationships with vendors and we're able to provide a great value to our customers even as prices rise. >> what is it that you saw during the crisis in. >> you know, sayer yashgs we've been bringing data and analytics into our business the last couple of years. we did agreenfield analysis which is really taking a white sheet of paper and saying where should we have stores? we found a number of markets where we're overstored we found some places where we're still too highly exposed to declining c malls or b malls we found more opportunities to move our stores off mall we take a big first step on that this year. following the last two years of consolidating some of our stores particularly out of d malls and regional banners what is really important though is to think about how we're reimagining the whole shopping experience it's no the just about kaye in one store or zales in another, we're looking at exciting new footprint opportunities. we've been testing james allen and it's driving traffic and conversion we think there is more opportunity for us to use the houses that we're in to support more banners >> yeah. the stock has come off of the lows that we saw in march like most of the market but still, you know, 5, 10 year looking chart doesn't look good. you were -- i've been talking to you throughout this transition you came in to turn around this company both culturally and financially. how much of a setback is the pandemic and how do you implement a turn around of a brand that so exposed to weaker spots like the mall at a time where there is so little visibility even to what comes next on the economy? >> i think on the stock price, sarah, covid-19 is a temporary setback for us i mean you saw we had a very strong holiday and saw some increased momentum in our share price coming out of that we reported at the time that we did our year end announcement that we had a good valentine's day. i talked we had a good mother's day. the strategies that we put in place have been working. on customer first, better merchandise and more targeted marketing, omni channel. we exploded during this covid-19 crisis bringing new tools to our jewelry consultants to serve customers in different ways. and then in our culture of agility and efficiency, we're testing and learning faster and we announced today an incremental $100 million of cost savings. we will well exceed the 200 to $225 million we were looking to save as part of path to brilliance the strategies are working i think we're accelerating the strategies that are important coming through this crisis and i see signet emerging as a stronger team and company and team on the other side >> thank you very much for joining us to talk through it. >> thank you, sarah. >> appreciate the time >> still to come, another very bullish call on amazon plus apple could be ready to take a bite out of intel's business. we take you "inside the market zone" next my name is christine payne, i'm an associate here at amazon. step onto the blue line, sir. this device is giving us an accurate temperature check. you're good to go. i have to take care of my coworkers. that's how i am. i have a son, and he said, "one day i'm gonna be like you, i'm gonna help people." you're good to go, ma'am. i hope so. this is my passion. if i can take of everyone who is sick out there, i would do it in a heartbeat. if iyeah. this movingyone thing never gets any easier. well, xfinity makes moving super easy. i can transfer my internet and tv service in about a minute. wow, that is easy. almost as easy as having those guys help you move. we are those guys. that's you? the truck adds 10 pounds. in the arms. -okay... transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. the dow is down 240 points this is commercial free coverage while they go into the close mike santoli is here to break down the crucial moments of the trading day. and we have chief investment officer back as well welcome back, nancy. let's kick it off with the broader market stocks taking a pause after a multiday rally with the s&p 500 now back in negative territory for the year just a little bit though the nasdaq outperforming to day on track for a record close. crossing above 10,000 for the first time ever today. it's hard, a step back, sure you mention it's actually weaker than the overall average suggests but with the nasdaq, you know, tracking for a record close, hard to argue that it's real weakness or sign of anything changing at this point. >> right >> absolutely not possible based on today's action to say anything changed on one level, you could say it looks like an elegant rotation the day when the average stock in the market is down more than 2%, you have the nasdaq able to go up. it's almost as if, you know, nasdaq went to the big guys and say we have to make a run at 10,000 he would sort of stall away. i think you want to be on alert for the idea that even though this looks resilient, it's not necessarily telling you that we're just going to resume the surge tomorrow necessarily >> nancy, i guess sarah mentioned s&p 500, only just i guess the fact that it's still close to that flat line sums it up this is not much of a pullback how much you would like to see get broadly bullish again? >> i think we're getting near the end of that game and i would expect to see a -- i'd like to see, actually, a 10% to 15% pullback so that we can sort of recalibrate, get adjusted and move up from there. i found this morning's move heartening and then this afternoon as we kind of came back disappointing we need a little bit of a selloff. they discuss whether the banks considering reinstating the buyback. >> the firms on strong footing our businesses are doing what they're supposed to do which is foremani performing in a difficult environment. we're under no capital stress. we should be maintaining the dividend a source of income for millions of americans out there that rely upon the bank's dividends. but as to the buyback and reinstituting that, too soon i would think over the next several months we're looking to bring the buy baklava. it won't be imminent it's certainly not going to be years. >> clearly saying it's too soon to make any commitments now. the very fact that he mentioned several months from now kind of changes the conversation from fear of whether the dividends are going to be cut and ask the question when buybacks might come back in and again, talks to the strength that management of some of the banks feel they're in relative to a couple months ago and could certainly be a extra boost to the bank stocks if we did see them reinstituted at some point in 2020. >> yeah, for sure. if you look at any other signal for the whole system, you would say that, yeah, they'll move to suspend dividends was at a very different environment than we have right now and presumably if things continue to improve from here, we'll be in a few months are they going to be coordinated about the buybacks back the way they were with suspending them the institutions are not built to accumulate excess capital maybe can you make the dividend call as opposed to buyback it's not a surprise they're looking for that opportunity to reinstate. >> i feel what is lost in the discussion of the markets is the fact that covid-19 cases are rising and about a dozen states right now including big economic states like texas, florida, arizona is a particular hot spot right now. how rinne veare investors watch news they're not as sensitive as they were a few months ago. >> you're right. i don't think it's really entering into the conversation as much in recent weeks. i live in arizona. you wouldn't know it i was out last night and the bar i was at was packed. and nobody was wearing a mask. i don't have an opinion because i don't really know, you know, what the trajectory is going to look like. we're distant here in arizona from one another in general. what people are talking about is multiples and earnings growth and sustainability of the rally. they're not talking about covid-19 anymore >> let's move on to apple. apple set to ditch intel in favor of the own chips how big of a deal is this? >> so, sarah, apple ace chip guru member is apparently busy apple is reportedly preparing now here to announce a big shift to its own main processors in max. licensing technology from arm and that would mean replacing chips from intel apple is a single diblgts customer it could be a reputation for the chip giant tim cook's company is controlling more and more of its own products from end to end from the operating system to the main processors. by the way, that stock now tracking for best quarter since 2012 >> another 3%move. thank you. i think it's great news from a vertical integration standpoint. it's pretty rich on all of our metrics, however, so if you don't own it, i don't have very good advice. if if you do, clearly you hang on as long as you can because this is a safe trade with pretty sure growth in if the future it's a well managed company. i mean they didn't suspend their buyback either and they are due to increase the dividend so i like my holdings. i'm sticking with them >> mike, to josh's point, the best quarter since 2012 for apple, again, just shows the relative weight that these types of moves have compared to that rotation as powerful as the rotation seemed it lasts, the apples of this world are far more important to the overall indices. >> yes no doubt about it. apple is people are finding a new little wrinkle to become bullish on apple when it comes to manufacturing its own chips i mean it seems to kind of be the stock for any season you can make any rational you would like but, yes, the power of it, by the way, 2012 was by far peak parabolic apple shares if you look at what happened in the last -- in the year after that, stock did nothing while the overall market did very well it's not always a bellwether it's not always the lead dog but right now looks very bullish. apple by far is the largest holding has done pretty well might offset some of that. >> good point. so nancy, you own apple. just curious where you stand sort of bigger picture on the growth versus value trade and the rotation that we've seen over recent sessions and where you want to be more heavily weighted what types of stocks >> yeah. that's a great question, sarah we've been increasing our exposure to growth i don't think the value trade is sustainable. and that's coming from a value manager. so we've been buying relative value or relative growth, growth at a reasonable price. i think as we come out of this, growth is going to be scarce economic growth after the initial bounceback and so we're moving away from the deep value plays and have been for the last six months and moving into growth year parts of the segments of the market and tech obviously, you know, i know people keep talking about how it's not going to continue to work. but if it doesn't work, nothing works. and so we've been really increasing our exposure to technology and banking on that as a future growth driver as it has been >> well, talking a big tech outperformers, amazon on track for a record close after a pair of price targeting increases from bank of america and wells fargo. both firms raising the targets to $3,000. bank of america predicts accelerating sales growth this quarter for amazon based on data points wells fargo also bullish on the e-commerce giant they have begun curb side pickup they're returning to more hectic works and school schedules will likely prefer the rapid delivery to brick-and-mortar store based options. the calls come one day after rbc raised the price target to high of 3,300 amazon at $2,600 as we stand, mike, up 41% year to date. and to your point about apple, again, you can kind of find a positive case for amazon regardless of what the economic outlook is this also seems the stock is forcing the analysts hands when it blows through price targets, you have to make the call i do downgrade it and say get out of the stock that seems like it's got this irresistible momentum or find a rational to raise a price target to a level that seems like, you know, there is still a cushion of upside that is the dynamic we're in now. the stock looks very, you know, expended let's put that way if you look at it on a longer term chart it has not stopped working even with the reopening and all the rest of it so, you know, clearly the street wants to give it the benefit of the doubt. >> nancy, where do you stand on amazon as these analysts fall over themselves to increase price targets? >> too rich for us here, sarah we played our e-commerce bets in home depot and also walmart. that is not performed nearly as well it has been a stallwort during the last couple years. we're going to nipple aroubble h edges. i can't jump in at these levels. its too expensive. there is going to be some real margin issues for quite some time so we're going to look for other opportunities. >> we'll get to that comment that you just made about the consumer but just little more than two minutes left to go in the session. mike santoli, i want to dive into the market internals. what you are seeing? >> the internals are weaker than the headlines we implied earlier. 180 degrees difference from a lot of the days recently when you had the s&p 500 not doing much here you have very decidedly negative volume skew at 1.90% negative. not quite there now. obviously, tilted to the down side then look at the equal weighted s&p 500 against the regular s&p 500. the rsp, etf right there you see it's giving back some of the recent outperformance, you know, 2.5% down. and then the volatility index continues to get a little bit of juice back into it of it's up above 27 now. obviously kind of rose yesterday with a rising market i think a lot of the buying of call options and some of the fast moving stocks is creating a dynamic where people just think you can get jumpy out there even if we stay at these pretty strong levels for the overall d index. >> another quick factor is we had a strang rally into the close yesterday here that didn't carry overnight into european open. it was soft throughout the session. and that obviously help the open here. >> for sure. we talked yesterday about how it was a u.s. equity story. you know, independent of other things, macro factors. that is true of overseas markets overnight and treasury yields are backing up a little bit today. it's not really everything in gear as it was in the fastest days of the rally recently. >> we have main left of the session. we talked about apple and amazon's 3% gains. facebook also holding on to 3% gain throw-in microsoft and alphabet, higher too less than 1% the nasdaq composite is set for a record all time closing high it's up by a third of 1% did cross 10,000 earlier 10,002 the new intraday high the we're off the levels still there for a record close s&p 500 down .75%. dow down over 1% speaking to the narrow nature of today's rally particularly in tech stocks. in fact, only two sectors in the s&p 500 are higher that is tech and communications services the rest are lower financials and industrials, utilities, energy all down 2% or more seeing quite a lot of profit taking in those sectors today. at the bell, we have gold higher, dollar weaker. dow doan ovwn over 1% and nasdaa third of a per cent. closing on the nasdaq. >> the 18th record close for the nasdaq so far of 2020. welcome back, everyone to "closing bell. i'm sarah eisen along with wilfred frost. there is the dow, it lost 300 points fist down day for the dow in the last seven sessions. boeing is the biggest loser. boeing, down .8% most sectors were weaker energy was the worst performer technology and communication service dz well. that's why the index did not fall more. check out the nasdaq that was the star of the show today. and of the year. so far it's up about 10% for the 11% for the year crazy thinking about some of the headwinds that we faced. and a record closing high for the nasdaq composite autopsy t up at 10,000 level still, up .3%. the russell 2,000 index of small caps, took a bigger hit. down about 2%. that is pretty much been the trend overall for the year the underperforming small caps coming up this hour, we'll ask the ceo of macy's about the progress of store reopening and retailer strategy in case of a second wave of coronavirus infections in this country plus, we'll ask the ceo of 23 and me why she says her company is part of the problem when it comes to racial diversity in the workforce and how she's promising to fix it. first, let's talk about this market joining us, the chief investment officer nancy tangler is here. sri kumar also joins the discussion what clues are you looking for as far as what the market tells us >> the one hand, just kind of the recently hot areas cooled off a bit. the cyclicals, small caps, value names that have really been heavily bought in the last couple of weeks. they back add way. i guess can you say if that was going to happen, you might as well have the old faang stocks pick up the stock. big cap tech did keep the indices together you have a gain in the nasdaq. doesn't change the overall story. we came into the week with a lot of readings showing a little bit of trader overconfidence a lot of overbought conditions developing the which really doesn't mean anything except that if you get further upside, often that upside doesn't last long or the market flattens out and you might be prone to some kind of a pullback i still think it's the case. did you see a little bit of the super speculative stuff come off the boil a little bit when you talk about the bankruptcy stocks and all this other trendy things so that's, you know, probably for the good i don't think that story is yet over >> what do you make of today's tepid markets in lights of the massive rally and rotation we've had in the prior couple weeks? >> i think the market backed off to some extent, concerned about how much it had gone up friday from the basis of the jobs report which i don't think it was as stellar as it was made out to be. today there is a pullback. still, the market doesn't want to fight the fed and the u.s. treasury adding all the stimulus so the fundamentals to me still look really weak in terms of the economy. the reopening is not going to go out without a hitch. you're going to have issues with the secondary wave so what the market is banking son that it will be a lot of positives and the negatives will be taken care of later on. not to mention the impact of what we have seen with the riots in recent days and we still do not know whether that is going to calm down or whether we're going to persist there are more negatives than poz. and that is what you see reflected in the ten-year treasury yield backing off from the 96 basis point high on friday and i think it's going to back off even more >> that's what i want to ask you. you were the only one correctly to call a 1% yield on the ten year treasury which we did see what is your forecast at this point? >> sarah, i'm looking for the ten year yield to keep going down to beat the 39 basis point intraday low that we had in march. and essentially keep going down further. timing is when does it happen? sometime in the next six to eight months depending on when the secondary wave of the wider stakes takes place when we realize the economy is not a v shape recovery that's when i think the ten year yield plummets again to new lows >> we get back to 39 basis points, presumably if we're going to get there on the ten year you are considering negative rates at the very short end of the fed's fund rate? >> that's a great question, wilfred. the federal bank of st. louis has research being done suggesting that the federal funds rate go negative and there have been people at the fed who are expressing support for it my expectation is more likely than not the federal funds rate which is hovering just over zero is going to go to somewhere in the range of minus 0.1%. what helps here, the bank of england is talking about a negative rate. bank of japan we just had a negative policy rate i don't think the u.s. can be an island apart from the other countries. that is why i think the federal funds rate is headed to the negative region. >> so nancy, if you listen to sri, all the negatives, they've been out there they're obviously present. but if you real quli worrily wot that, you would have missed a 46% move higher off the march lows solt what do you do with it now given that we still face the sizable risk that's sri laid out there and we've already seen such a big rally >> yeah, sayer why i wrote in my notes that this is the most difficult market i've had to navigate in my career not the down side but the upside moves. because it isn't directly being driven by fundamentals it is being driven by liquidity as we know what we're doing is we're leery of the bond market at this point. so we're staying long in our equity portfolios and doubling down on our puts on the s&p 500. we have increased it twofold and that's the way that we are ensuring against what i think is an inevitable correction though not necessarily a test of the lows >> mike, back in in march when we did hit that intraday low on the ten year, the correlations, the traditional correlations are strong but we've kind of stepped back from that over the course of the last month or two have we not? >> well, we have i mean it hasn't gone in lock step, for sure the ten year yield, sort of just flattened out and did hover above the lows i think that's the toggle in a sense. the equity market is uncomfortable if the yield probably sank back towards the lows, let's say around pipe. >> pete: .5% on the ten year. the yield curve is steepening. you look at the 30 years, so all that is to say that the overall message of the bond market with the steepening yield curve and credit spreads coming in is comfortable enough for equities to do what they've done. whether it's enough for them to sit there like that and have equities get further upside. i can't say for sure at this point. i think that's why there has been a tolerance for the fact that yields did not really keep up with what stocks did. >> you finally add -- >> go ahead. >> sorry, sarah. if i may add one point to what mike said. if you go back and look at the steepening of the yield curve in 2007-2008, we had the yield curve inward long before the recession began in december 2007 before the recession began yet again, the yield curve started to steepen in other words, the steepening of the yield curve happens even before the recession begins and the steepening should not give you confidence that all is well. and i think we're going to go through a similar phase right now, sarah and which issy thi why i think e inversion and steepening are textbook variety >> very quickly, sri, we have jay powell tomorrow. not expected to take any major action in terms of the fed i think is going to have to sort of toe this tric of tow this tricky line and not promising they're going to do more how do you see powell tomorrow >> my expectation is that he will say that he's going to remain supportive. he is also going to be asked about the yield curve control or interest rate cap as is otherwise known. he's going to say that it is being studied and that nothing is being done. expect a lot of tender loving care from the chairman but nothing in terms of actual moves at all >> tender loving care. sri kumar, thank you nancy tangler, always good to have you on the show thank you. >> thank you >> thank you, wilfred. >> open for business customers returning to reopen macy's stores faster than the company expected up next, we'll ask the retailer ceo fohistter s ragy for 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advice and tailored recommendations. that's the clarity you get with fidelity wealth management. shares of macy's lower as the ceo warns they could see a gradual recovery following coronavirus related shutdowns. jeff gennett joins us along with our own courtney reagan. courtney, take it away >> thank you very much jeff, thank you for being here with us today. a lot going on at macy's you have about 70% of your stores reopen after the closure from the coronavirus shutdown. initially you said that things were going better than expected. but you have seen some of the shopping behavior plateau a little bit what changed now that you're just over a month into opening some of the stores >> hi, courtney. good to be with you. actually going quite well. you know, when you look at the stores that we plan to be down about 80%. they're down about 50% for those that we initially opened and then it improves by about 3 to 5 points each week. there is -- i'm pleased with the way the storms performed it's universal taz cross the country as new states open up you know, we have yet to see the biggest impact in metro market that's are coastal that were impacted by the pandemic they're going to be opening in the next week and a half so we'll see how they perform. and while this is going on, we're also policleased with the level of our digital business. >> so because that digital business has remained so strong and you're already looking at a store closure program since february, to right before the pandemic really took hold here in the united states, how were you re-evaluating the role of your stores. are more stores going to be closed than you previously planned? >> so we're still evaluating that right now so when we had indicated before was that we had had flthree buckets of stores, flag ships, magnet and neighborhood stores and the neighborhood stores are 125. we already closed about 30 of those. so there is a group of almost 100 stores that we're going to close over the next 2 1/2 years. you might see us accelerate that but we haven't made that full decision yet as it stands right now, we're reopening all of our stores including our neighborhoods and, you know, they're still serving customers. they're still part of our overall omni channel strategy. we have implemented curb side pickup into all of those which has become quite popular we're looking through the inventory that we have to liquidate so we're ready for the fall season. we're evaluating all of that real estate in imagining, you know, what it looks like in terms of cash flows and individual sales as a storage unit versus what we can get in terms terms of the real estate value so we'll make the decisions as we go forward. >> you and i spoke a couple weeks ago when you were just looking at reopening some of the stores and there was still a lot of decisions to be made about what the support was going to look like in the macy's organization for the stores that were reopened you weren't exactly sure what the personnel levels would look like but suggested macy's would be smaller. there are some employees wondering if they're ever coming back from furlough, what you are looking at for your staff in store level and corporate level? >> when we opened stores as mentioned, they were down 50% as we start versus the 80% that we expected we built that into our go forward plans. all the stores that are opening, we're expecting the levels of sales. as it relates to then what our corporate employees, we're bringing them back from furlough right now in stages. we will be a smaller more leveraged company. so we're mindful of that we will make sure that we're going to be focused on the top line and bottom line so we want to make sure that our sg & a is in line with the way we see the business going. we're pleased with how the stores have reopened and how the digital business has been. we don't want to get ahead of ourselves. we want to make sure we believe it will be a gradual recovery. and we are looking with conservative clients to the third and fourth quarters and we're buying accordingly and we're expensing accordingly. >> and so you're talking about some conservative measures we know you had to take a lot of defensive actions during tcrisis you secured financing in debt. the are all of the movers that you're making really sort of more defensive rather than offensive? are you able or in a position to go after some of the market share right now that is being opened up from retailers that are filing for bankruptcy or closing stores en masse that are nearby your locations? >> yeah. thank you, courtney. i think, look, we're very pleased with the level of refinancing that we were able to secure in the two trenches that you just described, the as sset basin ven torre and the credit line as well as what the inventory has done for the bond deal and that $4.5 billion is not only going to help us get through the crisis, it helps us invest in our business as we define as the strategy back in february and it also helps us retire debt maturities that are coming in january of '21 and '22 and we'll have cushion so we have all of the means to be able to invest in the business that we see fit we do think that customer is going to be more digital customer and while omni channel remains incredibly important part of our overall strategy, we do think the penetration of digital is going to rise the investment required, we're ready to do that >> we can shift gears a little bit. the krone criscoronavirus crisi not the only one we're dealing with you put out several statements over your social media accounts about racial inequality. what can you do as a ceo what can macy's do as a company that serves america to really help fix the issues that we're dealing with right now >> i think the first thing we can do is we have 100 or over 100,000 colleagues that work for macy's that have an expectation that as a company and as americans department's store that we're going to be highly respectful of their needs and exactly how they're looking at opportunities. what i committed is they're going to be seeing, they're going to be heard and they're going to have opportunities that we're going to help them achieve. so we have dni or diversity inclusion is part of our core values for years that is very important we as a team is listening very intently after the george floyd flash point in our society the and, you know, our colleagues work very clear that this time is very different. and so we just have a virtual town hall that we had 10,000 of our colleagues participate in in we're formulating plans about what that means within our company. but then also what stand we need to take externally as america's department store, you know, what we will -- how we step into this and do it in a way that is respectful of all of our customer ands our colleagues but also on the right side of this for my perspective, that's going to be very important so we have stepped into it we made statements to our customers. we put statements unto our social sites we don't have all the answers. we're still discovering what we will do. but we will take action on this. we think is right for our company and right for our world right now in the retail in america. >> i understand that you have an internal initiative where you're looking to spend about 5% of some portion of the budget towards minority owned businesses when it comes to the vendor relationships that you have, i believe. is that still a target that feels appropriate for you? do you need to change that do you need to expand thinking like that? those types of solutions >> this is one, you know, we've done a lot with certain programs like workshops, what we've done with the story brand, what we've done with market by macy's and we have exposed ourselves to lots of minority and women owned businesses and we're able to do that at a small scale. our opportunity is how do we do it on a larger scale and what are we going to do about that in the future so that is where, you know, i am very much listening to -- i have a lot of advisors out there saying, hey, there is a lot of black talent that is ready for a place that can operate at scale. and how does macy's enable that in ways we haven't been able to in the past? so that is on my agenda. i don't have the answers yet but with respect to everything with, you know, with diversity and inclusion, that now is on my agenda to work with my team to help solve so i know we have to figure out a way to scale this talent in ways that they're reaching more americans and then we've been able to with our current programs >> i know macy's has often been pointed to as a business that has done a pretty good job with female representation in a lot of its executive ranks and on its boards, perhaps at least a percentage that is slightly better than what we've seen from other even consumer facing companies. is that a goal potentially to look at a more african-american talent and make sure that those numbers become more representative as well >> i think we've been really good progress on this one. we have a strategy and one of them is what is your internal talent look like does that internal talent represent the communities you serve at all levels from the ground level, from your front forward facing, you know, colleague all the way up to the board room if you look at the composition of our board, you look at the composition of our senior executive committee, you look at everybody who is a director and above or vice president and above, we've made very large head way on that in terms of the percentage of the census and that's across black talent and other minority talent. we want to be by the year 2025, 30% of our executive talent is the vice president and above going through the board room is minority talent. we made good progress. the we're in the high teens and now in the low 20s i'm proud of the progress but we still have work to do. >> got it. jeff gennette, ceo and chairman of macy's, thank you for joining us here today. >> thanks, courtney. >> our thanks very much to courtney and to jeff macy's stock almost doubled from the march lows but still down 50% or so year to date game stop earnings are out josh has those for us. josh >> that's right. so gamestop is reporting a q-1 loss here of $1.61 the street was closer to a loss of $1.27 of revenue comes in at $1.02 billion. and also looking closer for $1.07 billion. same-store sales declining 17% excluding the stores closed due to covid-19. heading into this print, remember, this stock had rallied about 80% of the april low still 20% year to date the company did maback in march close 3500 u.s. locations. analysts point out roughly 885% of the stores reopened to some limited degree i caught up with the bigger strategic question for this company and the reason he has a neutral rating on it, the reason he is on the sidelines is waiting to see how successfully they can transition to the new world where so many game play occurs online. back to you. >> josh, thanks so much for that one. chewy numbers also out we have those numbers. >> i do. we have shares right now off 2.5% roughly on 882,000 shares of after market volume chewy comes out with a good report in terms of expectations. loss is 12 cents a share analysts looking for a loss on 16 cents nongap the revenues come in better as well analysts looking for $1.75 billion. also, pretty good current quarter and full year revenue guidance as well coming in better than some analysts estimates. they report 15 million active customers, up 33% year over year they added a record 1.6 million net active customers in this previous quarter they did say that the shop at home business because of the covid-19 pandemic did help their businesses a bit they proved resilient in the economic disruption. they also did say that pantry stocking did help in terms of inform the previous performance. we'll keep an eye on the stock the shares had rallied 78% year to date heading into the earnings report. options markets were expecting volatility we're getting more muted responses now. we'll keep an eye on the conference call right now. it starts in 35 minutes. back to you. >> thank you so much for that. yeah that, 2% or 3% slide is very much in perspective up next, mike santoli looks at alternative data to find oit how to value the market and reminder, you can watch or listen us to on the go on the cnbc app we'll be right back. with a truw that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. thanks for sharing your savage moves, and especially your awkward ones. thanks for sharing your cute kids. and your adorable pets. now it's our turn to share... with the geico giveback. a 15% credit on car and motorcycle policies for both current and new customers. and because we're committed for the long haul, the credit lasts your full policy term. so thanks again. one good share deserves another. what do i need from a partner right now? an insightful outlook that comes from experience navigating multiple bear markets. can i find a partner to help guide me through this uncertainty? with capital group, i can. talk to your financial professional or consultant for investment risks and information. welcome back let's get a look at alternative ways to val univalue the market >> one way that equities look attractive is compared to bond yields that is the blue line on this chart. we're going to see here. compares the earnings yield of the s&p 500 against bond yields. it looks like it got really cheap here, right? however, credit suisse adjust this for the level of credit spreads and the ism index. what is the cycle look like here what does riskiness look like? they say the orange line looks like fairly valued at best the best times to buy stocks is it when that blue line above the orange line. and there you see a couple times the cycle. so maybe you have to adjust the adjusted idea of exactly how stocks look relative to bonds. in this environment unless the factors start to come back more, guys >> mike, thanks. the booze boom jack daniels maker brown foreman beating revenue estimates thanks to more people drinking at home. we'll ask the company's ceo whether that will continue as restaurants and bars continue to open across the country. did the lone store state open too early? texas seeing a big spike in virus cases. what one doctor is seeing on the front lines. plus, new problems for america's food supply. and a businesswoman who found gold in the ddmile of the crisis it's all tonight at 7:00 p.m mmm, it shows! so good. oh hey, did you say you needed help with investing? because i know someone who's really great. and you trust him? totally. yeah. we went to school together. i'll check him out on investor.gov. so, what'll it be? i'll just have the burger. before you invest, get 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can. talk to your financial professional or consultant for investment risks and information. welcome back the makeors of liquors including jack daniels and old forrester have off promised sales from at home consumption travel retail sales came to a halt joining us, lawson whiting thank you for joining us i guess the key first question is that headline theme of sales, are you seeing a lot more drinking from home and to what extent is that offset from bar drinking and as you said duty free >> thank you yeah, i mean the u.s. is having a bit of a phenomenon that is not really being replicated in the rest of the world. our u.s. business which was strong going into the pandemic saw a big channel shift over the last few months where sales to bars and restaurants went to zero and close to zero and that is about 20% of our sales in the u.s. but that was largely offset by this massive jump in the off premise, at home drinking occasion has really spiked up. and it's been a good thing i mean it is essentially made our u.s. business come in just with a little bit of growth. otherwise would have been down massively given the 20% jump in off premise. you don't see that necessarily aren't rest of the world i'm sorry? >> sorry i didn't mean to cut you off how much of the business is actually those restaurants and bars and away from home on premise business what percentage of it is the overall revenue? >> about 20% is bars and restaurants. thats true in the united states and approximately true in the rest of the world too. but as i was saying -- >> is it coming back now that states are reopening >> yeah, the on premise is still slowing down it's in the neighborhood of 80%. and that will be one of the things to watch over the next few months is to what happens with this off premise boom that we have, you know, as the bars and restaurants come back on line again but i still think we feel good about our business and resilience of it through what would have been tough times. >> good going, expand for us about what you're seeing in europe is there different economic outlook there or sort of structural taste difference? >> i think it's a little more structural europe and for that matter really the international markets as a whole, they fell off quite sharply in both march and april for us our fiscal end is april 30 we're not seeing that off premise boom that you're getting in the u.s. to offset the restaurant sales europe is more subdued a number of markets there that are very on premise driven in italy or spain, greece, i mean they're very restaurant -- you know, restaurants are 80% of the sales in some of those places so they're down, you know, quite a lot. our asian business is coming back south america, mexico, largest of the emerging markets is struggling quite a bit the continents that don't have a social net under them like the government stimulus checks that you're seeing in the u.s. and europe, the countries are down and we have not seen much of a comeback at all. >> wondering what you're seeing in terms of which brands are working and which ones aren't and how much of it is just a phenomenon of people drinking at home now and how much is sort of a longer term structural trend of millennials and gen-ex drinking differently than parents? >> yeah. the brands that are sort of hot a in today's market are the tried and true brands. that happened in the past and other crisis over the years where consumers often revert back to the trusted brands that they know. and jack daniels certainly fits that bill. i think there is also an issue in terms of inventory management both in the restaurants and bars where if you're a restaurant and you're strapped right now and slowly opening back up again, you're going to make sure that you got the brands that turn fastest. and jack daniels is certainly fit into that as would other brands that we have f you're a brand that is very small and just trying to learn your way through the system and grow your consumer availability, it's a lot tougher. and so that would cover a lot of the craft brands that are out there, things like that. you know, the bars just are not going to want to invest in those right now if they just don't turn as fast as far as the longer term trend that you asked about, you know, with millennials, you know, we've been hearing -- you read a lot in the media that, you know, consumers are -- millennials are trying to be healthier you know, it is true by age-group. the spirits brands are still the spirits industry is still doing really well in the united states in particular. and so we just haven't seen it come through the data. >> lawson whiting, thank you for the update we appreciate it >> thank you, sarah. good to be here. >> i have to say, sarah. very rare i hear anyone say an expert say that europeans are drinking a lot less. i mean, surprised to hear that but understand his point >> maybe it's beer over spirits. >> that's what you and i always go back and forth on still ahead, we will ask the ceo of 23 and me about her pledge to diverse the company after saying she's ashamed she doesn't have a single black employee at director level or above. we'll be right back. what do i need from a partner right now? an insightful outlook that comes from experience navigating multiple bear markets. can i find a partner to help guide me through this uncertainty? with capital group, i can. talk to your financial professional or consultant for investment risks and information. tafind a stock basedtech. pron your interestssultant or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. welcome back emcee entertainment earnings are out and we have them for you hi, julia. >> amc reported adjusted loss of $2.22. that is not comparable to estimates from a 98 cent per share. revenues which the company preannounced last week of $942 million missing estimates of $951 million the company saying in its press release it expects all of its -- nearly all of the u.s. leaders to be open in july they say they are partnering with clorox and taking new steps to clean the theaters. they'll be implementing aggressive promotions and promotional activity to jump-start demand. they don't currently have any films from nbc universal studios involved but that they are in conversations with them. guys, back to you. >> julia, thank you for that down 2%. time for cnbc update, sue herrera has it for us. >> i do. thank you very much. here's what's happening at this hour just moments ago the funeral of george floyd finishing with the fiery eulogy by reverend al sharp ton calling for justice and reform sharpton also slamming president trump for doing a photo-op in front of a church near the white house instead of working on police reform. >> you take rubber bullets and tear gas to clear out peaceful protesters and then take a bible and walk in front of a church and use a church as a prop wickedness in high places. >> president trump has tweeted a conspiracy theory that a buffalo protesters injured by police was a "setup." the story appears to be from one american news network that was written by a reporter who also has worked for the russian propaganda agency. you're up to date. that's the news update at this hour i'll send it back to you sarah? >> sue, thank you. want to pick up one other piece of news this afternoon there was a "wall street journal" story this morning about employees at places like estee lauder and adidas speaking out against the lack of diversity and equality in their workplaces despite public messages of support from the company's ceos and the companies. one black adidas employee said it was difficult to advance in that company saying, "it really becomes evident that we're just kind of there for our insights and not necessary for leadership." well now adidas is out responding outlining some of the concrete change that's the company is going to make. the ceo saying "at adeed as, we'll create lasting change and do it" announcing they will invest in $20 in black communities, invest in university scholarships for black employees and hire more people of color. they're setting a target, a minimum of 30% of new hires in the u.s. will be filled with black and latino people. so more could be krencrete stepe microscope and facing criticism like adidas. >> absolutely. will speaking of a push for more diversity, what companies aren't world are firming their commitment to the fight against racism the ceo of 23andme is taking step one further and directly calling out her own company for its lack of diversity. whathe d s'soing to change that when we return with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. 23andme affirming support for racial justice and equality last week with the ceo went one step further and called out her company for the short comings. our management team, board, and employee base must have greater diversity. i'm ashamed to say i do not have a single black employee who is at director level or above we are also part of the problem. i'm holding myself accountable joining us now 23 dandme co-founder this stood out to us we read and heard a lot of ceos speak out on this issue. but none of them are really willing to say that they are part of the problem. the how are you sort of examining your own company and thinking about what change looks like >> i think you can't really change unless you first examine yourself you actually identify part of the problems and i think in this time, you know, the george floyd death really impacted me and it triggered, you see the amazing outpour and it forced me to sort of look around and say, you know, why are we in this position we're in today? and am i doing something that is actually perpetuating this problem? and when i look around, i think we're a company filled with people with the right intentions but, yet, i don't have -- i don't have the diversity that i want so it was important for me to first set that -- to set the expectations like look, everyone. like we're actually not great here and to declare that and recognize that we're actually part of the problem and you can't do -- you can't fix it until you actually identify and realize that you're actually -- you have issues. so we're now actively trying to figure out how are we going to change >> we applaud the honesty, ann and to the point of how you're going to make progress and make change, i mean, is that purely by hiring the right people going forward or will it involve layoffs of existing employees? >> no. it's four aspects to me that are really important hiring is an important one if you look at some of the metrics, 70% of people get their job through a network. so one of the most important things for us is to all of us expand our networks. so i have to improve hiring. i think there is also aspects i can look at my board that is a choice i can make. i absolutely have to have diversity and representation on my board i think number two, looking at your employee experience are the things that you're potentially doing that don't create the right kind of environment for employees r there micro aggressions going on do they feel open? do underrepresented minorities feel the ability to talk about their experience so the employee experience is a critical component beer looking at third, i think it's the community. are the -- is there a funnel of people that k. you know, get into science how is it that 23andme is partnering with companies that also have diversity? do we make up the priority that we say we only want to do research programs -- or with groups that actually have that diversity or partnerships for our supplies and last, looking at our own product. and making sure that our product actually has equal representation that it's not as euro sen trick but actually supports all of our customers. >> feels like silicon valley in particular has not been great on this issue i mean it's no the just you. but you have a pretty good feel for what it's like at some of the big tech companies obviously your sister runs google and venture capital firms. how bad is this problem out there? >> i think there's a real issue. again, i think it's a real issue. i think the first thing that people need to do is recognize that there is something that we're doing that is creating barriers for true diversity. and there is changes that we all have to make and there is parts of things i'm committed to doing of knowing that you know there is not enough black representation in research in development in pharma and biotech companies that is clear. that is not something that is a quick fix. nid to invest but i need to invest in education. we need to have intern programs? what are ways we can support that growth? i think the entire industry, all of silicon valley has a responsibility to making sure that the funnel of people coming in are diverse and that we're evaluating our own culture to see whether or not anything is impeding a diverse culture >> ann, i want to pivot if i mas what have you guys at 23 and me been able to add in terms of the response to try and progress things whether it's in vaccines and treatments or just identifying who's the most vulnerable >> when covid-19 came out, we decided the best way we could have an impact was actually looking at genetic associations with why some people get so sick and why some people get sick to begin with on april 6th we laumpnched a study. we now have 750,000 people that have taken the survey. we have 12,000 people who said they were covid-19 positive at some point and over 2,000 people who said they are hospitalized for it we were excited to see that we actually did find genetic associations in the gene, meaning people who are o blood type look 9-18% less likely to get covid-19 and we're also looking at some of the severity. >> so have you passed on these results with, who should be using these results, vaccine makers, hospitals? >> that's a great question part of the push here is to make sure we can make data available to the academic world, that we can help advance this. i know we've had a lot of reach from our customers who are interested in knowing themselves whether or not they have this mutation i think the reality, what we hope to get in the future is that there is a genetic test where we can say this group of individuals are less likely to have it and this group of individual are more likely to have it and do the people who are more susceptible take increased precautions. so that would be, i think, the ideal area there's absolutely potential for us helping with drug discovery in other areas, vaccines those companies are running with it and we'll look to support it as we can. >> thank you so much for joining us. >> thank you still to come, we're looking ahead. the fed set to release more details about what it's seeing in the economyomrow tor afternoon. what you need to be watching out for when we return you doing okay? yeah. this moving thing never gets any easier. well, xfinity makes moving super easy. i can transfer my internet and tv service in about a minute. wow, that is easy. almost as easy as having those guys help you move. we are those guys. that's you? the truck adds 10 pounds. in the arms. -okay... transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. up next, reviving the economy. the fed reserve kicked off its two-day meeting today. a decision due out tomorrow. according to a new survey, investors have high expectations for more stimulus. the fed kicked off its two-day meeting today and is due out with a decision tomorrow afternoon. meantime investors still hoping to hear more about what potential stimulus could be on the docket as the economy recovers from the coronavirus shutdown steve? >> that will be a focus at the meeting tomorrow, not the deliverables but what the fed is going to do in the months ahead. respondents think trillions more will be done by the fed and congress looking at our fed, nobody expects the fed to do nothing tomorrow 76% say eventually more is coming from the fed reserve. how much more? 2.8 trillion that is in addition to the 7 trillion balance sheet already and the funds rate expected to remain at the current rate through at least the end of 2021 what's the fed going to do 51% picked solid forward guidance linked to some economic variable keeping rates low until then 29% even say the fed may cap buy yields at a certain level. 54% said, you know what, congress which has done 2.7 trillion of assistance already, they need to do more how much more? $1.5 trillion more money expected from congress finally, who needs the help? 93% say you got to help state and local governments. 70% say small business needs more 50% say workers. and 40% say minority communities. i think the markets are very attuned to whether or not these programs and additional assistance from congress and the federal reserve are eventually delivered. >> steve, thank you. looking forward to tomorrow. some of the best closing bells are post federal reserve news conference ones. i think the market is also going to be paying attention to anything powell says about whether he's hopeful and optimistic about this recovery this market has been so happy with all of the stimulus out there. >> it would be a change of tune too because we has emphasized the downside risks and also been calling for more fiscal support. that would be a shift. not sure if we're fully expecting that. >> record all-time closing high for the nasdaq composite did cross 10 k for the session declined so for the s&p and dow. fast money starts right now. tonight's trader line-up coming up on fast, cleanup in aisle 5. the headline that sent shares of macy's tumbling today. plus we'll speak to the ceo of a red hot back to work play. clear systems makes thermal temperature scanners the big surge they are seeing. later, betting big on bankruptcy we'll break down everything you need to know before you dash for trash. fast money trade school is coming your way. record breakout for apple. the stock hitting another all-time we kic

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