Its up about 0. 3 today the dow as we said up over 1 at session highs. The sara crazy to see the s p 500 just wiping out all the pandemic losses the todays show, clorox is a standout winner. Up more than 50 so far this year people stock up on cleaning supplies but can the company keep up with the huge demand for wipes and disinfectants . Were going to talk to the ceo plus, well talk renovations, Small Businesses and more with the ceo of Angie Home Services of that company reporting earnings after the bell. Along with iac, tilray and many more names lets focus in on the big stories that were watching in this final hour of trade mike santoli tracking todays market action. We have the latest on the increasingly complicated stimulus discussion in washington and kate rogers has the details on a scandal involving former mcdonalds ceo steve east easterbrook. Mike, start us off with the Broader Market and the gap were seeing. This is a good illustration of how a broadening out of the market beyond the big growth stock win seners is restrainingh s p 500 even if it represents healthier activity below the surface. This is the year to date s p 500. This is up 1 below that all time peak back in february about 3395 is the intraday high. So its essentially 1 right now. Trying to approach that old high, that very high nasdaq stocks as they pull back a little bit which looks like a routine pull back for now, theyre really dampening things right now. Nothing really to argue with the kind of steadiness of this trend. Its been very quiet approach. It seemed we got close enough to the old highs to trend in that direction and make a go of it. Take a look at this ratio with the equal weighted s p 500 this is a fiveyear chart. The average stock versus vet large ones then you have the crash and look at how erratic its gotten and emotional. Its going between the huge winners and the average stock on this kind of i would say not just erratic but very much an onoff way it is a binary thing this is a reflection of things that a handful of stocks, five or seven, represent a massive percentage of the s p 500. So it is the few stocks turning on when this is going down and then underperforming and then this line goes up it could arguably be looking like kind of a violent thrashing bottoming process for the average stock. Well have to see how that plays. Guys yeah. Mike, lots more to dig into with you on the markets throughout the show apple, of course, the exception in terms of the tech names up comfortably 1. 7 . But lets move on and get to the latest on government stimulus. President trump signing four orders this weekend aimed at extending some benefits. Though theyre likely to face legal challenges we have the latest in washington there is no contact between the administration and democratic leadership either today or over the weekend according to aides this comes as President Trump tweeted that democrats want to make a deal and they know his phone number now on cnbc this morning, the treasury secretary said that no compromise is possible as long as democrats remain unreasonable he said state and local aid remains a key Sticking Point we want money for vaccines, hospitals, rental assistance and we have given them flexibility and we offered more money for state and local. But were not going to give a trillion dollars to state and local. Thats just not a reasonable approach now the four executive orders signed by the president are projected to cost 165 billion in the short run over the long term that, number is more like 10 billion because most of that money is simply deferred or has been allocated as a result, democrats are calling the president s actions meager and say its up to republicans to come back to the table. Guys i guess one of the big Sticking Points of the last month though was Unemployment Benefits and seems that with this executive order offering that one has been conquered. There are still state and local as well as limited liability issues but some progress could we frame this as even though politically it seems like theyre clashing more than ever well, progress in terms of perhaps getting workers actual cash but one of the essential questions here is how many states are actually going to participate in this program . This is not automatic by any means. The states would have to request money from the federal government and it looks like they might have to kick in some of their own money as well so depending on how those rules are actually written and what states have to do, well see how many workers end up getting the checks at the end of the day ylan, thank you a bombshell lawsuit from mcdonalds alleging that former Ceo Steve Easterbrook committed fraud and lied during the companys internal probe into the conduct. Kate rogers with all the details. Kate thats right. Mcdonalds suing the former Ceo Steve Easterbrook related to the firing last year for sexting in a consensual relationship. This includes new allegation thats easterbrook had physical sexual relationships with three mcdonalds employers in the year before he was fired. He also approved a extraordinary stock grant worth hundreds of thousands of dollars for one of those employees during the relationship and that he lied to investigators in 2019. It adds that internal investigation uncovered photographic evidence of physical sexual relationships while he was ceo with three employees. This was discovered as easterbrook did not delete the emails off of the companys server the they want to scale back the compensation package in the estimates of tens of millions of dollars by firing him for cause instead of without cause we reached out to lawyers for comment and bring you anything else we hear current mcdonalds ceo writing in a letter to the companys employees that mcdonalds does not tolerate behavior from any employee that doesnt reflect our values they reflect a continued demonstration of this commitment back to you. And the public airing of some of the dirty details is pretty interesting and unusual. The New York Times take on it is notable you dont often see companies, you know, air this kind of dirty laundry in lawsuits. They usually just bury all the information, goodbye and good luck but the fact that were getting into this they compare it to cbs and les munves how unusual is this for mcdonalds and what corporate reckonning theyre going through coming out with the details. The i remember back when the scandal first broke, we were debating whether he should even be fired for consensual relationship thats right. It seems that they want to really make a point here that the culture changed under new leadership this is knoll tolerated. Some of the details that were uncovered were so scandalous and so against Company Culture that something needed to be done here as you said, really unprecedented. We cant think of another comparison cbs obviously, you know in, some way compares but this is a really strong move from mcdonalds, unusual in Corporate America and the details were eye opening fascinating a closing thought. I mean its extraordinary story on all sorts of levels but clearly mcdonalds had had to conduct a pretty deep investigation originally last year and the fact that the new evidence has come on the companys servers does raise a question about how deep and detailed the original investigation they carried out ff if this was new Evidence Base ond testimony from former employees that, might have taken time for mcdonalds to be able to uncover it does raise a question about how good an investigation they carried out last year if the new evidence come from their own email servers. Thats right. It seems that someone had given the board a tip about this and that he had sent emails to his personal email from his professional account, deleted them off the phone but not off the Company Computer and server. I think thats where some of the issues lie but certainly as you said, just really scandalous new details that we were not expecting on the story from last year yeah. Crazy. I think also the original investigation they only looked at his work sanctioned phone and didnt look at all the emails on the server was the discrepancy. Im sure. Crazy story dow up is 343. After the break, s p 500 inching closer to an all time high but were going to talk to a fund manager who says shes gone from bullish to moderately bearish and she says a major die am nallic shift is coming. Youre watching closing bell. vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. 48 minutes left of trade near session highs on the dow. Boeing and caterpillar leading the charge were up 340 points. Big divergence between growth and value stocks today with the s p 500 value up almost 1 growth falls our next guest is forecasting this shift and says its important to Pay Attention to the change in market leadership. Joining us now for more is mili gilbert. Are you saying no more big faang mega cap stocks in the lead . Its great to be back on air. Thank you for having me. Yes, thats right our forecast is for change in leadership. In the stock market from large growth to smaller and value stocks like what so today youre giving a runup in energy, industrials and materials . Financials still kind of lagging. Which of the groups do you like most most is the reflation trade when you think about the decline of march and the beginning of the year, a lot of the decline centered on some of those more heavy Industry Sectors but as we start to think that an economy can recover, we may get a vaccine, you start to think about a reflation trade which should favor some of the same sectors that youre mentioning in which already are improving theyre momentum the other part, is of course, the role of sentment do those sectors need a vaccine in order to continue that rally or do you this i that theyre attractively valued enough that they can rally regardless i think it really is important to look company by company ratheren that sector by sector and within sectors how expectations are priced. And how theyre able to reemerge. And within the leadership, not just looking at individual sectors, but also at things like large versus small there is really a lot more emphasis on stock specific risk and the market like this because and you find Companies Whose business mod rlz moels ar favored by the shutdown and then also the reopening no question, if you look at what replace is from monetary or fiscal from all over the world thats happening but the next step then is to get comet going. And going Strong Enough to bring these sort of deeper value plays into focus why do you have a yield around. 5 if you look at the divergence between let bounds that weve seen in a lot of the stock market and what is happening in the real economy, no, certainly. Even when we look at the unemployment numbers that came out last week, better than expected, were still losing over a million jobs. Thats definitely not good so we have to talk separately about what is happening in the real economy and what is happening in the stock market. As you know and as you discussed often on the show, the stock market is a forward looking animal and so oftentimes it will start to price in the economic recovery before we see that recovery but this is also baking in expectations about how Monetary Policy and fiscal intervention will be digested thats a really big part of the thesis that the stock market is baking in right now. When it comes to actual reflation, it starts to matter more about whether all the money thats being put into the market is actually getting spent and by whom so then you also have to ask questions about divergence potentially between the Consumer Spending and Business Investment as well. What do you make of european stocks i mean, which ever the three major indices you look in the u. S. , they comfortably outperform the nasdaq but all three most of the european indices. Is there value there our outlook is currently stronger for the u. S. Than it is for europe and some of that, you know, we already have seen in the trends. Its encouraging that europe has come together on the policy standpoint to try to work as a union truly. And organized way towards a recovery but right now were still waiting to see some of the effects of that come through in the numbers. And in the data and its and our outlook, not currently being reflected as well as it is for the u. S. You know, lets wait and see one thing that is really encouraging to me when i look at the europeans perspective on the recovery is the way that they have been embedded broader social environmental goals and the intention to build back better you know, really thinking about how to advance the climate agenda how to advance certain social priorities in the way that theyre reinvesting and, you know, i have to think that for the long term that thats going to give europe an edge i hope that well be able to have deeper conversations about those types of topics as we plan our recovery here in the states as well. Mili, thank you so much for joining us pleasure to be with you thank you for having me on weve got just over 40 minutes left of the session. Weve been at session highs for the show so far. 350 points on the dow. That leads the charge of the major indices. After the break, barry diller tries his luck at the casinos. Nestaction in mgm and how both companies are looking to cash in. Thats next. Rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ 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. Contessa brewer reports with more on that story hi. Interactive corporate announced a billion dollar, 12 stake in mgm. Investment in the stock. Iac says it likes how mgm has embraced the online opportunities going asset light to invest in digital platforms and mgm chairman paul salem told me today, Sports Betting will be massive. Iac has run more online Commerce Business than we ever have in fact, they may have forgotten more about ecommerce than what we know f i were asked who could you pick that would help your company the most i would have picked barry diller well, to that end, mgm is inviting iac to joint board of directors. Mgm stock skyrocketed today. Its up almost 14 today iacs decline about. 5 or so. I want to look at draft kings now. Down more than 7 . This certainly adds some muscle to a competitive marketplace they made a lot of the deal with bar stool. Its down more than 7 both of these stocks may be struggling covid19 could disrupt College Football but a crowded competitive marketplace right now, wilf. Its an interesting deal. A lot of the casinos are up today when, for instance, there is news on mccal that could be very good for them thats right. Theyre going to start issuing tourist visas starting on the 12th of august that is extremely good news. This is really been holding back any kind of significant ramp in the stock. So what we saw today is that those casinos that have properties, mgm but certainly wynn, Las Vegas Sands and melco which is listed here but based in hong kong, all bounced on that news today. Las vegas sands up 7 . Wynn up more than that sara yeah. A lot of the Consumer Discretionary names doing well today. Contessa, thank you. Still ahead if, youre looking for closrox wipes you ma be out of luck until next year were going to ask the ceo about the supply shortages and much more coming up on the show as we head to break, a check on bonds for you welcome back dow is up 357. Check out shares of kodak today sinking, down about 30 . The white house says it will not proceed with the loan worth more than three quarters of a billion to produce drug ingredients unless allegations are cleared the sec is reportedly investigating the disclosure of the deal and the options granted to the companys executive chairman right before. Shares down today. Still up significantly since the deal was first announced im surprised its not down further. I mean this is a stock that went up 1500 attracted retail buying and everybody on this deal announcement and according to reports, pretty shady behavior from executives here issuing options right before this deal was announced i know. On the surface, seems extraordinary. So extraordinary does it seem. It makes you think that once the investigation is finished that there wont be any dodginess or insider trading. Because if you were going to take part it in, you do it in a less obvious way i mean, it is baffling and we kind of look forward to the results of the sec investigation. As sara said, still up 400 or so in the last month s p 500 by the way, near session highs. 0. 2 as we stand time now for our daily coronavirus tracker. South dakota is flashing warning symbols. Thousands of people gathered for the 80th annual sturgis motorcycle rally the largest in person gathering since the start of the coronavirus pandemic south dakota seven day daily case average is up 16 and rate of person to person spread is one of the highest in the country. Hawaii is another state to watch. The seven day daily case average is up more than 120 meantime, a new report found that nearly 100,000 children in the u. S. Were recently infected with coronavirus this comes as schools face the foremidable task of reopening. Some schools in georgia and indiana had begun in per