Well look at other names that could surge as well. Its tilman tuesday. He says todays record retail sales are good news but he warns were out of the woods just yet. Kelly, to you. Its the Third Straight day of gains for the major averages. Bob has more on these markets for us more positives than negatives on the reopening story talking about bajs are up today. Industrials are doing well you want to know how tough it is to call the industrial space back look at boeing. 150 to 230 to 198. Thats all in two weeks. 150 to 231 the max is trying to get recertified. The analyst estimates are too high every one is still playing the airline come back story. Thats boeing. Chips, interesting story Morgan Stanley downgrading nvidia it means kla corp. , lam research, corvo and qualcomm, new high for them. You see, more positives than negatives today. The reopening story, retail sales very much a positive beijing closing schools is a negative on the reopening story. Reopening stimulus and treatment. Back to you. Now to the bond market where yields are joining the market rally. Rick is tracking the action at the cme. Absolutely, kelly that retail sales you cant say too much about it. It was a strong number theres evidence all across the country that the ropings in some areas are pretty hots. I would have to say this my little town, the shell shves ar empty. What youll notice is around 10 38 eastern we see the yields dropped and a big bid came into the treasury market. We didnt see a huge effect by jay powells talk or any of the interactions with the senators the dollar index year to date chart are holding instead of last year. Dollar index is up a bit tyler, back to you thank you very much. More jerome towel today. The chair beginning two days of testimony starting with the Senate Banking committee he continued to express concern about the uncertainty for the outlook and including concern about a second wave of is virus and the long recovery that remains ahead in which people may find trouble finding their job again. A large number of people will not be able to go, immediately go back to work at their old job or industry. There will be a Significant Group thats left over after we get the employment mass. I do think theyll be hard pressed to find work and they will need support. Theyll have regular Unemployment Insurance for a period thats something i would be looking at is what kind of support will they need powell repeated the feds commitment to doing as much as it possibly can and using all of the tools and urged congress to do the same. There was some talk from senators about whether the fed has plan for unwinding its Balance Sheet and the possibility of the fed doing too mu much powell said he was concerned the fed did not go in and distort the Corporate Bond market i dont see us running through the bond market and snuffing out price signals and things like that we want to be there if things turn bad in the economy. Well have to watch that whether the ned would ease off getting data like there. Obviously keeping unemployment as low as possible is what they are after there has powell set up a collision there between the fed and either congress or the white house on that particular point . Its hard to look at the retail sales report today and not see the effectiveness of spending people checks. People who are out of work that were still considering spending and a good bounce back probably a combination of the checks send out. He doesnt see everybody going back just exactly where they were before the crisis thank you very much stocks rallying again today. A Record Number of investors think the market is over valued. A record high 78 of respondents say they think stocks are too expensive. Thats the highest since the survey began in 1998 what do you make of those stats . One thing that ive learned throughout my career is the market doesnt carry if you think its expensive the market if you look at it, its been right so far every one thought in march was just the beginning we see better data that expected that doesnt mean the market could predict what will happen next as most people were saying were in a great depression, the market was back at all time highs. We need the v to continue because the levels are still pretty weak. It does seem that the market has gotten a bit ahead of itself if you look at where we are trading, were currently trading about 24 times, if youre at 122, lets throw that away because the year is so murky that still has us trading on 2021 at over historical average levels, which, if you just think about the myriad risks that are out there, some of the negative news that we have gotten cautious fed conversations and positioning. Beijing closing down 22 states having renewed concerns and Health Issues there are a lot of lagging spaces and long term themes that have not been given as much love we think this is the time to position for both short and long term out performance and mid caps, for example and health care, which youve seen today move on the news and which has had an unparalleled level of not only inflow of capital but resources and intellectual capital that we think will play into long term themes. Taking the market signals as a really important piece of information. What happens if we start to get more of a frenzy do you think were there yet they talked about how cash levels are down by the most since 09. I guess thats a good sign. Usually is when theres most right now the data point you gave us was like 70 something percent as over valued when you have to worry is when every one thinks were in a new paradigm and which valuations dont matter and the digital transformations all that matters. Were not quite there at that part of the story. Thats not what they were saying in 99. Nirp else that you would tell people to go right now i would say going back to this sort of marriage of what is fair valuation, we have an unprecedented level of cash in the market. Everything is telling us we are well into and navigating the process to get to a v shaped recovery that will open up again a number of opportunities to out perform over the long term thank you both. Good to see you. Talking about these markets. Tyler. Coming up, Retail Stocks higher as sales in the month of may have the biggest jump ever that is following the biggest drop ever in april whats behind the resilient consumers . Plus, apple back near all time highs. Citigroup says the stock is headed to 400 a share and why one trader is betting on an bigger apple run more power lunch after this. Can i find an Investment Firm with a truly longterm view thats 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. Yeah yyeah yeah hey, hey can i find an Investment Firm with a truly longterm view thats 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. Welcome back retail in rally mode with the xrt up more than 3 as sales surged 17. 7 retail sales, that is, in the month of may is this a true recovery or is it not to great . May retail sales did grow 18 . The best month over month increases on record for both of those. Consumers drove again. Went to restaurants, bought Sporting Goods and more to entertain themselves at their spruced up inside and outside homes. When you compare this may to last may, it looks a little less like retail spending is all the way back the big number still good. Core retail sales down just 1. 4 from last may. Pretty good. Much of the country was partially closed during the month. Clothing and accessories up a really impressive 118 from may to april but down 63 from last year electronics, Appliance Stores was also a very impressively in may from april, 51 but down 30 when you compare it to what we saw last year. Still, the Market Reaction pretty decisive today. Clothing names are surging nordstrom shares up 15 . Koh kohls up. Gap is up. The parent of dsw designer brands is surging almost 15 tapestry higher by 6 . Up almost 15 . Its among the home names that are soared over the last three months all benefitting from this stay at home and fix it up kind of trend. Kel, back over to you. Another group of stocks rallying could ben fits from a 1 trillion infrastructure package that the president is working on talk about those desicisive market moves. Very decisive moves. You can see they are 5 to 9 on the upside here. Over the last three years it hasnt moved that much and the peaks and valleys have coincidesed with the head lieli. One more thing to take note, this particular etf, the global sfr infrastructure etf, the ticker igf has a lot of global power, energy and yutility name back over to you on this same issue about the infrastructure plan, even pour a little cold water on that this morning and the stocks are still jumping. Its almost like they are looking for an excuse to rally they have been although i would point out they did take a bit more of a disproportionate hit over the past couple of weeks even as we saw the big downturn in the markets last thursday one of the things to keep in mind, we have seen a lot of volatility in the names, if you look at a three year chart youll see we have seen peaks and valleys to about a 5 loss over three years if many of these stocks you could be looking at a situation where like i said, a lot of moves, peaks and valleys here just to the upside and down side many of those coincidesing with news about infrastructure. This particular move here has seen a sharp move to the down side just in the past few months well see if that is played into some of those results about why the stock is still surging even despite the fact that some cold water has been poured on the headlines. Guys thank you very much still ahead, health care, industrials and technology are amoung the market leaders and theres one name in the tech sector that has wall street analyst pounding the table now well tell you what it is plus Tilman Fertitta says he is seeing green chus. Te hell explain what it is and why next on power lunch. Yeah yyeah yeah hey, hey the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. But a resilient business you cacan be ready for it. Re. A Digital Foundation from vmware helps you redefine whats 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 GovernmentGoing Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Welcome back citi is the latest firm to raise its price target on apple. A street high of 404 400 we think the number one reason to own apple is the second half of this year will be very exciting. A lot of innovation. Many people were concerned that coronavirus would slow down their innovation and they wouldnt have a 5g product line up we have absolutely confidence they will have 5g lineups in time for christmas and it will be big and a lot of people will want those should you buy, sell or hold apple . I think theres three things that kind of benefit apple and tech in general. One growth has been the new defensive. Strong cash flow amid strong Balance Sheets which means you havent been under pressure because you need external finance and return of capital is safe two, i think youll see a big tech upgrade cycle tech has been whats gotten us through the quarantine i think every one is looking both businesses and individuals is my tech good enough can i upgrade. I think 5g will be technology to people want to upgrade to and three the retail sales number you saw today. Consumers have pents up demand, stockpile savings. All three of those things are wind at the back of a company like apple todd, looking at the stock, citi see it going from 310 to 400. Where do you see it going . We hold apple in all three of our portfolios if we get a little technical here, you look at the three advances since 2013, each has been 130 all by a one third give back. The current advance is only 66 . I hold it and our firm holds it. I also note the wearables like air pod and apple watch continues the grow we like the services with subscription, streaming, tv, gaming, the credit card. We think those will be the drivers of growth going forward. We like it hsbc saying its focus on health will play a role in driving apple farther from here. Thanks for joini ining me to dis apple. Kelly. Thank you very much. Lets check on the markets right now. The dow helped by the retail Sales Numbers showing a bounce back in consumer spending. Were up 552 points. Well ask tilman what he is seeing is the nba season really coming back the players are saying they dont want to play its tilman tuesday on power lunch. Stay with us well see if hes right. [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. And tailored recommendations. Thats it. Im calling kohler about their walkin bath. [ sigh ] not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Ask about saving up to 1500 on your installation. Welcome back, everybody. Here is your cnbc news update. Pg e pleading guilty to 84 deaths in a 2018 wildfire in paradise, california becoming one of the fewest companies to be convicted of homicide pg e ceo bill johnson entering guilty pleas on behalf of the company for 84 counts of Involuntary Manslaughter the companys failure to properly maintain its electrical grid was blamed for the fire the former Atlanta Police officer who shot and killed rashard brooks had more than ten disciplinary incidents on his record his previous incidents include one written reprimands for use of force and thats according to records released by the Atlanta Police department. North korea confirming it lieu up a Liasion Office amid rising tensions between the two countries. North korea threatened to destroy the office last week here at home, u. S. Senators introducing Bipartisan Legislation to reform aircraft certification. The proposed bill follows two fatal boeing 737 max crashes that have kept the planes grounded for more than a year. Youre up to date. Thats the news update back to you. Lets check on the markets right now which have been all over the place the dow is up more than 800 at the highs. Up just 48 points at the lows. Wee have climbed back to a 620 point gain 2. 3 for the s p just under 2 for the nasdaq the russell 2000 is up a little more than 3 today the oil market is closing up lets go back to dom crude oil futures are generally higher today they are off the best levels of the day but you still have u. S. Benchmark west texas intermediate or wti prices up 38. Brent crude, 40. 82. Prices are being helped in part by news out of the International Energy agency. It also did say Global Oil Supplies fell by 12 Million Barrels per day. Tyler, supply, demand, higher prices are near the highs of the day. Back over to you our next guest ti lirlman s hes not expecting business and the economy to just roar back to normal in that sense hes rather like chairman powell. Not in the v shape recovery group. Welcome back the notes say youre seeing a pick up in traffic at your restaurants and yet at restaurants youre still down 60 year over year thats consistent with what Courtney Reagan was reporting a few months ago about those retail Sales Numbers were improving drastically in which ill show yall what i think of the v coming back this is my lazy v right here this is where we were and this is where we are now. Theres great retail sales now look how far we have come. The problem is we got to get all the way to here which i think is at the end of 21. Its going to take the middle of 21 youre talk about two years from now is how long it will take not a true v i would say here, guys lets look at your casino business this sounds like a tail of thlee cities las vegas coming back some but maybe not as robustly as one might hope youre exactly right. Its definitely a tale of three stories. Our regional casinos are going great. Its a different customer. Theres a lot of stimulus out there. You have to give our administration for putting all this money into the marketplace and thats tremendously helping the regional casinos i told yall a week ago it was a bunch of bs what everybody said was h