Sarah . Yeah, shows the power of the fed there. When that headline hit, boom we have a great lineup coming your way Jeremy Siegel and rick reider join us. Plus, well speak with larry kudlow about the latest debate over the future of enhanced Unemployment Benefits and what happens when they run out . Well also take a closer look at one winner amid the volatility, the video game sector. Well speak with Strauss Zelnick. That stock has been an outperform they are year lets focus in on the big stories with one hour left of trading. Mike santoli tracking the action and phil lebeau and joining us to discuss the outlook for the banks is brian foran start us with the big come back that weve seen in the market this afternoon theyre saying buy the dips were in a dip buying environment. They proved it this morning. Take a look improvement. We got that one weeks time. Things are looking stretched at the highs. One week ago today 3232 was the closing level then we got that shakeout. Thursday most pronounced and then continued this morning. And i was pointing last week to what people were saying might actually be a zone we kind of have gravity pull. There is an 8 to 10 pullback from the highs today value stocks were leading along with things like Cloud Software it was a broad buying interest that happened in the overall market now take a look at the context for this move compared to other bull markets early bull markets nobody is saying what this is right now that were in. But right now, this is a lot of years, but the key point is this is the path right here of the current rally off the march 23rd low. And what you see is places in the ranks of things like the 1982 and the 2009 bottom in terms of how much it gained in a short period of time what does that also tell you pretty much was due for Something Like this. Right . To start the chop around maybe consolidate a little bit take a breather. But you see here that months later the other significantly similar rallies did continue higher from there. Now wide range of outcomes as i said we dont knowwhat this thing i if its going to be this massive multiyear move but it is behaving this way which is mostly to say were still in routine pullback zone and we were this morning even with that 8 decline in a few days time. Didnt yet really compromise what was driving things in an underlying basis guys i mean do you not think that the buy the dip mentality which as you point out appears to be at work today . Has a loet t to do with the fedl reserve. It has to do with the Federal Reserve telling us repeatedly it will not permit a worst case scenario, a worsening of Capital Markets and conditions they keep characterizing what theyre doing in terms of Corporate Bond buying as helping market function. In other words, making sure that there is bid ask spreads are okay making sure will is liquidity. At this point, organizebarguablr yo beyond that things are functioning well they seem to want to accentuate the idea that they want to place a cushion under the market it is dollar for dollar. Somehow they have a Multiplier Effect in stock market the general message and the approach is absolutely giving confidence to investors to say i will buy when there is a down side break yeah, certainly led to an extra late half. The stocks already turned around from the negative opens. Mike, thank you. Airline stocks starting the day deep in the red. Staging their own sharp rally throughout the session phil lebeau has the latest on the sector for us. A volatile day for the Airline Stocks you look at the four Biggest Airlines as you mention, they started down 5 , 6 . Not all of them have come back substantially since then you still have a couple of carriers far better than they were earlier this morning this comes on the same day that we saw the best passenger levels in the u. S. Reported for this weekend that weve seen since mid march. A little hard to tell. At the end of that line there, its a slight uptick its the first time weve seen numbers above 500,000. Still down 79. 4 compared to a year ago because theyre so low in terms of passenger levels, the cash burn rates continue to be high the for june, the cash burn daily cash burn is between 25 and 40 million depending on the airline. And one specific note, today United Airlines out with a 8 k saying they borrowed 5 billion backed by the frequent flier Mileage Plus Program they expect to have 17 billion in liquidcy by september the other part, 4. 5 billion loan they expect to line up through the treasury department. Phil, i want to ask about that how rare is it to see an airline have to collateralize the frequent Flyer Program on one level you could say its great. Its a noncash item. And theyre getting a better rate because theyre backing it with that. But it also still strikes of the slight level of desperation that exists in terms of well grab what cash we can even among the strongest Biggest Airlines in the country. Well, it its never been done like this before in terms of taking the frequent Flyer Program, they have about 100 million members within mileage plus and monday tiesing etizing it we would rather set up this Loan Facility and have too much liquidity that makes it through early next year and then figure out okay, lets pay it back early as opposed to waiting too long and then saying oh, boy weve got a second wave. Weve got to find more money they are moving ahead of time as much as possible phil, as always, thank you. Lets have a look at the banks one of the worst performing sectors this year. Top of the pile with that intraday recover rich. Next guest is saying they do see some optimism in the space head of regional Banks Research joins us brian, great to see you. Thank you so much for joining us do you think its fair that banks over the last couple of weeks and months have kind of been tracking the likes of the airlines as just discussed with phil as if they are really very closely tied to the fortunes of the virus and the economy. Look, i leave you with three key points on that first, its an extremely tough time to be a bank. And rates are low. Credit costs are high. So to your point why are they tracking the ultra Cyclical Industries like the airlines its the same thing if we get a recovery and also the outlook for the fed potentially raising Interest Rates in 2022 or 2023 or at least some point in my lifetime starts to improve a little bit if we dont, if we dont get the recovery, then both of those things continue to work against them and thats the core fear with the banks bouncing around one times tangible book. The second point i make is within the books, the highest losses are in consumer looking forward and looking how things are tracking relative to what the banks expected, there is actually a little sign for optimism there two key places were seeing it, one is in credit card delinquents and they came out for the month of may this morning. And theyre actually down a little bit year over year. Much better than expected. No one was expecting them to be down clearly, there is a heavy dose of government stimulus, expanded Unemployment Insurance but still being down here year over year this far into the game is a surprising positive and the second place were seeing this housing. St weve seen both real estate dealings and mortgage purchase applications balance to a low double digit year over year increase so higher than a year ago. And its only beginning of april that both of the metrics were down on the order of 30 to 50 . The third point i make is where were still cautious in the commercial and in particular commercial real estate fund. Look, its a well worn theme we realize a lot of investors are worried about commercial real estate right now. It seems like an industry that is going to deal with challenges with Retail Sector and with the Office Sector for in time to come from the banks speshgtive, its the place they built by far the least reserves so far. So where credit card, they have written off 9 of the loan book. So brian, is your thesis tha bears have overdone it on the banks and ignoring the critical positives . Where do you see the best opportunities . Which stocks we lean into the consumer focus bank at the most part. And we still avoid the more commercial heavy franchises prosperity, coamerica are the top three in the coverage universe the within the sector, again, its more about rotation to the consumer heavy names and continuing to avoid the commercial heavy names at this point in the cycle brian, where do you stand on the likelihood of consolidation and in particular as it relates to pnc we had bill on the show a month or so ago. He has ammunition clearly. Will he have been willing Bank Share Prices in this last week to decline 5 more, 10 more or is the current level ready for him to pounce . Theres an old adage banks are sold, no the bought. No bank ceo wants to sell at the bottom of the cycle. One thing slowing consolidation at this point, the valuations are low. But the liquidity of the banks is at an all time high theyre sitting on 3. 3 trillion of cash. That number was 1. 7 trillion in january. If you think about what that does if im a bank ceo and my stock is out there against the book there is no gun to my head eventually i might be a seller id rather wait six or 12 months and absorb the losses and then sell for something north of tangible book and give me self a victory on the way out i think there will be deals. Pnc is one you highlighted prosperity is another thats been very vocal about being on the hunt right now but theyre going to be few and between. Theyll be the extension rather than the rule. Again, key difference this time versus 08 is the banks are flush with liquidity back in 08 there were a lot of sellers. Frankly, they ran out of monday. Do you think, therefore, zero bankruptcies among the banks provided, you know, were talking above 50 billion in assets or so yeah, i think thats a real possibility this cycle especially with the default cycle playing out a little bit more slowly than we all initially anticipated and obviously fear you know, that gives them time to earn their way through it and gives them a lot more options as well brian, thank you for joining us we have a new session high, by the way. The dow climbed to up 286 points were up 214 as we stand nearly 1 on the dow which, of course, was down 760 points right near the open, sara. And quite a turn around the banks are not the top of the pack in terms of the market leaders right now. They were right at the bottom this Morning Energy and financials, always either at the top or bottom when it comes to this reopening trade to your point. Up next, market volatility kicking in high gear following last weeks fed meeting. Are investors in for a summer of wild swings . Well ask Jeremy Siegel for his outlook after the break. Youre watching closing bell on cnbc. 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. Because when you want to create an entirely new feeling, the difference between excellence and mastery is all the difference in the world. The lexus es. A product of mastery. Experience amazing at your lexus dealer. 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. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. A rise in daily infections in florida and texas are weighing on Investor Confidence as much of the country continues to slowly reopen we have a look at some of the key hot spots to watch hi, meg. Hey, wolf, if you look at the country at a whole, were Holding Steady at 28,000 new infections every day across the united states. This could be due to testing this gives us a sense of how severe the outbreaks are take a look at texas and arizona. The blue line is the new cases you do see those increasing. The yellow line is the hospitalizations net change which includes discharges or deaths you can see for texas and arizona, they are adding, you know, between 0 and 50 new hospitalizations on a net basis per day. So those are ticking up quite a bit. In terms of hot spots around the country, the places seeing their cases double in the fastest time, phoenix, tampa, charlotte, north carolina, austin, texas, and Central Washington state enough guys that local leaders in these areas are talking about whether to pause their reopenings or even put some of those mid gas stati those mitigation measures back in place meg, thank you. It certainly been a volatile market over the past few days. Is todays turn around a bullish sign for stocks overall . Joining us now on the news line is Jeremy Siegel, university of pennsylvania warton professor of finance. Professor, good to talk to you again. Big turn around in the market today. Buy the dip crowd is alive and well what does it tell you . That tells me all the tons of liquidity that is out there. As we know in the last hour, the fed is providing even more liquidity. And, you know, ive been saying on your program for months that all this liquidity is positive for equities is going to feed into the economy in 2021 and i think thats what stock investors are looking forward to you know, i look at monetary statistics, the treasury has has an account at the fed with 1. 5 trillion in it that they have not yet dispersed mnuchin was on saying were going to get that into the economy. Thats on top of everything thats there so again, you know, we certainly have, you know, the fears, the limited openings, and all of the rest but this liquidity is going to feed a Strong Economy going into 2021 would it have been more healthy for your case on equities to have seen a slightly bigger pullback, a prolonged pullback in top level equity snashgts. Markets yeah, there was froth went up among the fastest we ever did see did it get frothy. Another 5 pullback, you know, would have washed some of that froth up i think again people looking ahead and saying, listen, you know, i didnt get in back in late march or early april, you know, im not going to make that mistake again. And wait for some sort of, you know, Double Bottom the way so many people talked about and thats why i see the buying going in and with the fed, you know, theyre there to support for the government to put money into the economy. This is necessary. Its going to have economic consequences next year and, you know, i think i think investors recognize that what also could have economic consequences, professor, is what meg just laid out which is the rising hot spots across this country. Especially in in busy metropolitan areas are you not concerned about that in the thesis here that hospitalizations are going up and some local authorities are talking about shutting down spots. You know, i think and we do see it. And i wish people would respect the social distancing and those rules in place but were not going to have a shutdown like before i mean, everyone is saying that was just devastating for so many people and the economy i think that if we, you know, respect the social distancing, if we wear masks outside when we should, we take a look at the asian countries, theyve been extremely successful with this you dont need the draconian measures like china. You look at korea, japan, taiwan this will control it and i think that i wouldnt even call it a second wave. I dont think were going to get the type of shutdown at all as we had before. I dont think anyone wants that. And so, again, its a matter of managing it. Professor siegel, not necessarily what i was arguing i mean, you could still have economic pain if consumers themselves decide that, you know, its scary out there and they dont want to go out anymore because of the rising infectionors business infections it doesnt have to be necessarily a xwlount or noth g necessarily need to be a shutdown or nothing. But again, we are making great progress on the vaccine. Three of them at least stage three trials you know, we dont get a headline on a breakthrough every day. You get a little discouraged you see that, you know, sort of a breakout but really if you talk to the epidemiologists, you talk to doctors, they say, wow it is progressing faster than we thought. Its not going to be withdrawn from the fed and government. It its going to be there and say, wow, i can do these things and guess what i have the money in the bank account to do these things i think thats what im talking about 2021 dont forget, stocks are among the most forward looking of all asset classes. There are forward earnings, not what is going to come this year wlachlt is going to come in 21, 22 and 23. We talked the last couple months about how hard it is to have a true pe multiple given the unpredictability i wonder what you thought about dividend yields, particularly in light of the Additional Information today that the fed is going to be buying individual Corporate Bonds. Clearly yield is not really on offer outside of equities. We see the yield on fixes income the fed is going to keep, as they said, the short rate really low. Bank accounts will be zero for years. If you want to go out long term, you have to present on the treasuries you get 1 , 1. 5 on