Transcripts For CNBC Closing Bell 20240712 : comparemela.com

Are miles apart. We are focused on that potential record close on the s p 500. The number youre watching for is 3386. 15, a couple points off of it as we stand, sara. Hard to believe that we are here coming up on todays show. S p 500 could close at a record high for the First Time Since mid february were going to talk to wharton professor Jeremy Siegel about whether the rally can last from here. Plus counting down to a pair of key Earnings Results after the bell, lyft and cisco gearing up to report well bring numbers and analysis as soon as they hit. Lets focus on the stories were watching with one hour left of trade. Mark santoli with the action, colin rush from oppenheimer. Lets start off with the broader market, familiar things taking us higher, tech, lower treasury yields and the like. Thats right. A bit of a reform to norm. Yesterday 3381 of about the late selloff. Of course were a couple points above that right now its kind of tantalizing also seems a little bit silly this hesitation in front of an alltime high. But here we are alltime highs are more bullish than not. In other words strength begets strength even if were getting stretched in the longterm i wanted to point out oneyear basis, if you look to last august, august 15th, that anniversary is friday, was a pretty significant low, a summertime low last year from that point on, the s p 500 is up 9 thats kind of a remarkable return over this period of time, which is especially to vault this huge valley the market doesnt really owe you anything if youve been in it for a little while. Doesnt mean youre not going to get a little more. Yes, it is tech reasserting itself today here is a chart that shows a pattern in the nasdaq 100, those big Growth Stocks dominating the line is the 21day average what youll see is from the march low, youll see a couple of times, the fourth or fifth time, that essentially bounced and obeyed this uptrend line until it stops working, i think traders are going to attempt this perhaps this is why. At the open we did get the nasdaq kind of getting buying interest out there so this kind of shows you even though weve been talking about this rotation away from large cap growth into cyclical stocks and value names its not been really 180 turn, context of flattening out and pullback in the leading group. Too early to say a whole new market even if it is broader in its participation, guys. How do you stack up what we saw today from yesterday to the close. It was jarring it wasnt a humongous move lower but shows you how fast and how quickly this drop can happen and change in terms of risk sentiment. You heard, of course, of people coming out and say, look, these tech stocks have been overvalued they are due for a cooling off period its not certain stimulus. Looks like the economic picture is dire. The negative excuses pile up was that a warning for people buying in as we sit at a record high. I think youre never going to run out of reasons why we might have to worry an reasons why the market could be vulnerable i dont want to dismiss those things what mostly seemed to happen is on the first approach of the old highs, it seemed as if there was a little bit of a lack of the proper factors lining up meaning largest and leadingstocks in the market were selling off all day. Its very difficult to overcome that especially when you had a lot of erratic action in things like the dollar in gold and a lot of these trades that were in place for a long time just got upended or unsettled for a day so there was hesitation on the first approach i dont know that its much more than that even though you could grab at those headlines and say the longerterm picture is complicated. Also we could get sticker shock here were paying very high valuations for the market right now based on what investors hope to happen in a year, year and a half not really whats going on right now. Mike, as always, thank you. More to discuss with mike later in the show. Meantime shares of tesla jumping today as elon musk announces five for one stock split effective august 21st. Joining for colin rush managing director and Senior Research analyst at oppenheimer colin, thanks so much for joining us first question, simple question, does this make a difference to the value you attribute to the share price . One thing we think it does, it uses some concerns around buying stocks, potential its helpful, signals a certain amount of confidence prospects. Why do you think the share price jumped so aggressively today and does it in any way make you feel like were at a market peak or in bubble territory, that were squeezing the last possible juice of positive runup of tock . Its a good question. The stocks had such incredible run this year that some consolidation seemed to have made sense it peaked about a month ago, the earnings then settled in to the level and started getting a little bit as we saw the talk out there. I think what were seeing, real serious pencil sharpening and, you know, arithmetic on valuations on the market as we see those folks do the work and start to layer in the stock were seeing the appearance for it. The market that things are going well, you know, and that the inclusion on the s p 500 may be on the horizon in the shortterm. When i hear this and when ive heard some of the enthusiasm around tesla, the bullish case around tesla lately, are they going to enter the s p 500, retail traders embracing it here is the stock split which attacks more retail traders, excite over esgs what about the fundamentals of the tesla story . How many are they going to deliver in the second half of the year and is production up to speed . Lets get to the real valuation question. Valuation, as you know in the market has been fascinating topic right now. I think investors this year valuation were really looking at multiyear story. When you look at that, theres two key things, Technology Test the leader in both areas. Liu at the number of vehicles on the road, approaching a million, equity which aring data, thats incredibly important and order of magnitude more vehicles on the road than anyone else. The power Train Technology really proven a differentiated Battery Technology as well as engineering through power train as well as operating System Technology really still the only company out there that has updates on the operating system. When we look at the efficiency of their power train batteries, make the claims, really production at this point remotely close for this sort of performance. So from that perspective, you know, were still very bullish on the position. Market found its level in terms of stock prices but we see tremendous amount of operating leverage, certain people paint a premium for disrupter in the space. Colin rush, thanks for joining us. Sara, the other point i want to bring it back to you, many people discussing all day is apple. The surge we saw after apple announced their stocks after we saw that surge particularly over the next two days but also since then, apple before their earnings down around 317 now up to 450, there was another factor people could point to they could say but the quarter was fantastic as well and tlr therefore none of us could point to the fact it was a misunderstanding what the stock split meant. When we see this move from tesla, it does slightly worry you the same sort of fawn real factor drove apple stock higher as well. Of course it makes no difference mathematically well see if once we get past that date august 21st for tesla whether it suddenly moves back in the opposite direction again. Yeah, not sure its cause for worry. Maybe its a good thing more retail traders can buy into stocks we know they like, household names like apple or tesla and they can embrace that even though there are questions whether they were already doing that because you can buy fractional shares, places like robinhood, zero commission fees, of course. But clearly the opportunity is there. It on the companies to prove the fundamentals can be strong anyway, both rare cases of stock splits happening in 2020. Coming up on closing bell, moderna is the latest company Big Government deal as part of operation warp speed up next, were going to discuss how the decisions are being made and the stocks that should be on your radar youre watching closing bell, 49 left of trade upbeat music we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile. Call, click or visit a store today. Some new headlines coming in here on the stimulus front lets get to it. Reporter offered to meet with leadership and democrats turned him down. According to the source he initiated talks with nancy pelosi but said white house is refusing to budge from the position, said the administration doesnt fully grasp the magnitude of the problems in a joint statement between pelosi andsenate minority leader chuck schumer, they said they will resume negotiations once the white house starts to take this process seriously. So guys, the stalemate does continue despite at least some initial overtures from the administration both sides remain locked into their positions. Back to you. The take away on wednesday is the executive orders didnt kick negotiations meaningfully back into action. Thats right. I mean, i wonder if the white house felt like this would provide sort of a new development from which they could continue these talks and that might be why treasury secretary Steve Mnuchin reached out. Democrats are sticking to their guns here and saying without any additional change from the white house, theres just nothing left to talkabout democrats arguing here they are already compromised by offering to bring down the total cost of the package and right now theres nothing more to say. Thanks for that by the way s p 500 you would have seen next to her was just touching what would be enough for a record close back below 3386. 15 is what were looking for. Just a fraction below where we stand. Moderna latest for a deal in operation warp speed meg tirrell has the deal. This is the sixth deal for the government to supply covid19 vaccines if they are successful getting through testing. They will be paying more than 1. 5 billion to secure more than 100 million doses. Putting a price tag on these vaccines of 15. 25 per dose. This is how this lines up with the other deals that the government has struck. Now, some of these numbers are going to be different Like Astrazeneca and novavax which include support for development. Johnson johnson, the most recent company before moderna to strike a deal for a billion dollars for 100 million doses, about 10. While moderna is on the higher end, pfizer the highest, it took no government funding for development its lower than the price moderna had been telegraphing for vaccines. You see their stock with gains on that news. Meg, what is operation warp speed. Who makes these decisions and how is the government picking winners and losers, especially when it goes to backing not just vaccines but they say they are going to back treatments on. Yes primary for operation warp speed is to secure a vaccine by this year or neck year, secure hundreds of millions of doses of the vaccine. Its a group of scientists as well as officials that really stated in terms of what they are looking for to those that show signs of promise and can get through phase three by the end of this year or early next year. They arent looking at things to take years to do, typical of time lines and companies that can manufacture tens of millions of doses simultaneously. Interestingly, if you look at the deals they have struck, 800 million doses up front, thats assuming some of these potentially fail also some of these vaccines are twodose regime mince, so 330 Million People, you need a lot of vaccine tocover everybody we wanted to talk to you about about important stories, stories to come, antibodies, what youve learned about how effective they are and when we can expect them. Referred to as potential bridges to vaccines because they could potential be available earlier. We talked to regenerons chief officer to explain this approach here is how he explained it. When will guam will whole goalie reduce antibodies, making them and giving them to you and as if youve had protection from a vaccine or as if youve already had the disease. Guys, they, as well as ely lill lilly, are testing them to treat covid19 and prevent it in highrisk settings like if you live with somebody diagnosed or in a nursing home with an outbreak those late stage trials are ongoing now. We should see some data by the end of september for regeneral rons treatment trial. Thanks for that we have 46 minutes left for the session. Were on record close watch for the s p at 3387 we are there as things stand, if we were to close now it would be a record closing high for the s p 500 green across the screen as you can see, all of the major indexes comfortably higher led by nasdaq. After the break, weve talked at length about the hit to commercial airlines for the pandemic but does their pain translate to a gain for private jet companies . Well discuss with the ceo of jet it next. Right now, switch to tmobile and get four lines of unlimited for just 25 bucks a line. With access to americas largest 5g included. Thats right. Unlimited and nationwide 5g for the whole family for just 25 bucks a line. Only at tmobile. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. More than 800,000 people passed through airport checkpoints, the highest level since march. Despite the uptake, tsa traffic down 70 airline shares rallied on the news last week for those who are not ready to get back on commercial flights and can afford it, private jet companies are taking advantage jet it saw its sales jump 300 in the Second Quarter compared to 2019. Joining us glen gonzalez, founder and ceo of jet it. Glen, welcome. So talk to us a little about where the demand is coming from. Sara, its the same for all americans. We all want to protect our families we want to protect ourselves, if we can wed love to live to be 120. But unfortunately with the coronavirus and this current pandemic, unfortunately its hard to stay safe. None of us understand where its coming from or why one of the ways to reduce the odds when have you to travel, when you have to be there, the entrepreneurs, Business Leaders, to keep everyone employed and working so hard to do so, private travel is the way to go. Thats what we found with our growth with jet it. But its so expensive, glen what is the least amount you can pay for a private flight and how do you get those costs down . Is there any way to make economics more accessible to more people . There are lots of different models out there, sara in our case, one of the things we do, our owners are only paying 16 hun an hour to operate. Part of that is the airplane, part of that is our Business Model, and the rest of it is the market demanding need of private travel at the end of the day its about physics. If i dont need an airplane to carry eight people that weighs 20,000 pounds, then maybe i should find Something Else thats in the market with our utilization of the jet elite, its the same honda that builds all over the automotive vehicles, we use the honda jet and its only 10,700 pound airplane but its still the same speed, still as comfortable and spacious and as quiet as all of the other airplanes ive experienced having flown everything from fighters to gulf streams. Glen, expand on your Business Model a little bit you quoted a price per hour it would cost an i dont know to buy the planes they have to have bought the plane in the first polar vortex albeit a share in the plane with not a share up front. You are buying the aircraft in relation to our business. In exchange we provide you with the aircraft for a number of days the greatness about that is you can fly anywhere and everywhere you want within a normal free duty day a lot of owners are utilizing the airplane to run their errands. They proceed to meet with suppliers in the morning, in the evenings meet with another customer an return home for the evening activities to be home for dinner especially in todays environment thats a great tool given thaturing did the pandemic. Using it to run your errands. I doubt the Addressable Market is everyone in the country pivoting a little bit, glenn, what is the optimum distance for this sort of Business Model and this sort of plane youre using. Its not long haul travel, is it it is not what we found in our research the average traveler is flying 90 to 120 minutes, 1 1 2 to 2 hours time three people on average. We can take six. If thats not the norm, whats the need for having an eight or ten or twelve passenger aircraft. So what have you seen in terms of expanded whats your vision for how youre going to expand your Customer Base here clearly people want to fly older parents places in a pandemic how are you reaching out to those types of people, because it is a pretty specific wealthy clientele. What we found is typically its notnearly as expensive as the rest of the industry normally its about five times the cost of what our owners are paying to utilize our service. That being said, when it comes to reaching them, in most cases people are finding us. Owners are reaching out to their friends and colleagues, trying to help them, provide them with safer means of travel. These individuals are all walking in the same circles. Their Business Leaders in our communities, civilian leaders in our communities and they want to make sure they are taking care of themselves and their friends. If we could expand it to everyone across the country, we most certainly would at the end of the day, it is somewhat expensive to operate the aircraft as far as it is concerned, we are launching our first aircraft to First Time Since<\/a> mid february were going to talk to wharton professor Jeremy Siegel<\/a> about whether the rally can last from here. Plus counting down to a pair of key Earnings Results<\/a> after the bell, lyft and cisco gearing up to report well bring numbers and analysis as soon as they hit. Lets focus on the stories were watching with one hour left of trade. Mark santoli with the action, colin rush from oppenheimer. Lets start off with the broader market, familiar things taking us higher, tech, lower treasury yields and the like. Thats right. A bit of a reform to norm. Yesterday 3381 of about the late selloff. Of course were a couple points above that right now its kind of tantalizing also seems a little bit silly this hesitation in front of an alltime high. But here we are alltime highs are more bullish than not. In other words strength begets strength even if were getting stretched in the longterm i wanted to point out oneyear basis, if you look to last august, august 15th, that anniversary is friday, was a pretty significant low, a summertime low last year from that point on, the s p 500 is up 9 thats kind of a remarkable return over this period of time, which is especially to vault this huge valley the market doesnt really owe you anything if youve been in it for a little while. Doesnt mean youre not going to get a little more. Yes, it is tech reasserting itself today here is a chart that shows a pattern in the nasdaq 100, those big Growth Stocks<\/a> dominating the line is the 21day average what youll see is from the march low, youll see a couple of times, the fourth or fifth time, that essentially bounced and obeyed this uptrend line until it stops working, i think traders are going to attempt this perhaps this is why. At the open we did get the nasdaq kind of getting buying interest out there so this kind of shows you even though weve been talking about this rotation away from large cap growth into cyclical stocks and value names its not been really 180 turn, context of flattening out and pullback in the leading group. Too early to say a whole new market even if it is broader in its participation, guys. How do you stack up what we saw today from yesterday to the close. It was jarring it wasnt a humongous move lower but shows you how fast and how quickly this drop can happen and change in terms of risk sentiment. You heard, of course, of people coming out and say, look, these tech stocks have been overvalued they are due for a cooling off period its not certain stimulus. Looks like the economic picture is dire. The negative excuses pile up was that a warning for people buying in as we sit at a record high. I think youre never going to run out of reasons why we might have to worry an reasons why the market could be vulnerable i dont want to dismiss those things what mostly seemed to happen is on the first approach of the old highs, it seemed as if there was a little bit of a lack of the proper factors lining up meaning largest and leadingstocks in the market were selling off all day. Its very difficult to overcome that especially when you had a lot of erratic action in things like the dollar in gold and a lot of these trades that were in place for a long time just got upended or unsettled for a day so there was hesitation on the first approach i dont know that its much more than that even though you could grab at those headlines and say the longerterm picture is complicated. Also we could get sticker shock here were paying very high valuations for the market right now based on what investors hope to happen in a year, year and a half not really whats going on right now. Mike, as always, thank you. More to discuss with mike later in the show. Meantime shares of tesla jumping today as elon musk announces five for one stock split effective august 21st. Joining for colin rush managing director and Senior Research<\/a> analyst at oppenheimer colin, thanks so much for joining us first question, simple question, does this make a difference to the value you attribute to the share price . One thing we think it does, it uses some concerns around buying stocks, potential its helpful, signals a certain amount of confidence prospects. Why do you think the share price jumped so aggressively today and does it in any way make you feel like were at a market peak or in bubble territory, that were squeezing the last possible juice of positive runup of tock . Its a good question. The stocks had such incredible run this year that some consolidation seemed to have made sense it peaked about a month ago, the earnings then settled in to the level and started getting a little bit as we saw the talk out there. I think what were seeing, real serious pencil sharpening and, you know, arithmetic on valuations on the market as we see those folks do the work and start to layer in the stock were seeing the appearance for it. The market that things are going well, you know, and that the inclusion on the s p 500 may be on the horizon in the shortterm. When i hear this and when ive heard some of the enthusiasm around tesla, the bullish case around tesla lately, are they going to enter the s p 500, retail traders embracing it here is the stock split which attacks more retail traders, excite over esgs what about the fundamentals of the tesla story . How many are they going to deliver in the second half of the year and is production up to speed . Lets get to the real valuation question. Valuation, as you know in the market has been fascinating topic right now. I think investors this year valuation were really looking at multiyear story. When you look at that, theres two key things, Technology Test<\/a> the leader in both areas. Liu at the number of vehicles on the road, approaching a million, equity which aring data, thats incredibly important and order of magnitude more vehicles on the road than anyone else. The power Train Technology<\/a> really proven a differentiated Battery Technology<\/a> as well as engineering through power train as well as operating System Technology<\/a> really still the only company out there that has updates on the operating system. When we look at the efficiency of their power train batteries, make the claims, really production at this point remotely close for this sort of performance. So from that perspective, you know, were still very bullish on the position. Market found its level in terms of stock prices but we see tremendous amount of operating leverage, certain people paint a premium for disrupter in the space. Colin rush, thanks for joining us. Sara, the other point i want to bring it back to you, many people discussing all day is apple. The surge we saw after apple announced their stocks after we saw that surge particularly over the next two days but also since then, apple before their earnings down around 317 now up to 450, there was another factor people could point to they could say but the quarter was fantastic as well and tlr therefore none of us could point to the fact it was a misunderstanding what the stock split meant. When we see this move from tesla, it does slightly worry you the same sort of fawn real factor drove apple stock higher as well. Of course it makes no difference mathematically well see if once we get past that date august 21st for tesla whether it suddenly moves back in the opposite direction again. Yeah, not sure its cause for worry. Maybe its a good thing more retail traders can buy into stocks we know they like, household names like apple or tesla and they can embrace that even though there are questions whether they were already doing that because you can buy fractional shares, places like robinhood, zero commission fees, of course. But clearly the opportunity is there. It on the companies to prove the fundamentals can be strong anyway, both rare cases of stock splits happening in 2020. Coming up on closing bell, moderna is the latest company Big Government<\/a> deal as part of operation warp speed up next, were going to discuss how the decisions are being made and the stocks that should be on your radar youre watching closing bell, 49 left of trade upbeat music we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire<\/a> university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile<\/a>. Call, click or visit a store today. Some new headlines coming in here on the stimulus front lets get to it. Reporter offered to meet with leadership and democrats turned him down. According to the source he initiated talks with nancy pelosi but said white house is refusing to budge from the position, said the administration doesnt fully grasp the magnitude of the problems in a joint statement between pelosi andsenate minority leader chuck schumer, they said they will resume negotiations once the white house starts to take this process seriously. So guys, the stalemate does continue despite at least some initial overtures from the administration both sides remain locked into their positions. Back to you. The take away on wednesday is the executive orders didnt kick negotiations meaningfully back into action. Thats right. I mean, i wonder if the white house felt like this would provide sort of a new development from which they could continue these talks and that might be why treasury secretary Steve Mnuchin<\/a> reached out. Democrats are sticking to their guns here and saying without any additional change from the white house, theres just nothing left to talkabout democrats arguing here they are already compromised by offering to bring down the total cost of the package and right now theres nothing more to say. Thanks for that by the way s p 500 you would have seen next to her was just touching what would be enough for a record close back below 3386. 15 is what were looking for. Just a fraction below where we stand. Moderna latest for a deal in operation warp speed meg tirrell has the deal. This is the sixth deal for the government to supply covid19 vaccines if they are successful getting through testing. They will be paying more than 1. 5 billion to secure more than 100 million doses. Putting a price tag on these vaccines of 15. 25 per dose. This is how this lines up with the other deals that the government has struck. Now, some of these numbers are going to be different Like Astrazeneca<\/a> and novavax which include support for development. Johnson johnson, the most recent company before moderna to strike a deal for a billion dollars for 100 million doses, about 10. While moderna is on the higher end, pfizer the highest, it took no government funding for development its lower than the price moderna had been telegraphing for vaccines. You see their stock with gains on that news. Meg, what is operation warp speed. Who makes these decisions and how is the government picking winners and losers, especially when it goes to backing not just vaccines but they say they are going to back treatments on. Yes primary for operation warp speed is to secure a vaccine by this year or neck year, secure hundreds of millions of doses of the vaccine. Its a group of scientists as well as officials that really stated in terms of what they are looking for to those that show signs of promise and can get through phase three by the end of this year or early next year. They arent looking at things to take years to do, typical of time lines and companies that can manufacture tens of millions of doses simultaneously. Interestingly, if you look at the deals they have struck, 800 million doses up front, thats assuming some of these potentially fail also some of these vaccines are twodose regime mince, so 330 Million People<\/a>, you need a lot of vaccine tocover everybody we wanted to talk to you about about important stories, stories to come, antibodies, what youve learned about how effective they are and when we can expect them. Referred to as potential bridges to vaccines because they could potential be available earlier. We talked to regenerons chief officer to explain this approach here is how he explained it. When will guam will whole goalie reduce antibodies, making them and giving them to you and as if youve had protection from a vaccine or as if youve already had the disease. Guys, they, as well as ely lill lilly, are testing them to treat covid19 and prevent it in highrisk settings like if you live with somebody diagnosed or in a nursing home with an outbreak those late stage trials are ongoing now. We should see some data by the end of september for regeneral rons treatment trial. Thanks for that we have 46 minutes left for the session. Were on record close watch for the s p at 3387 we are there as things stand, if we were to close now it would be a record closing high for the s p 500 green across the screen as you can see, all of the major indexes comfortably higher led by nasdaq. After the break, weve talked at length about the hit to commercial airlines for the pandemic but does their pain translate to a gain for private jet companies . Well discuss with the ceo of jet it next. Right now, switch to tmobile and get four lines of unlimited for just 25 bucks a line. With access to americas largest 5g included. Thats right. Unlimited and nationwide 5g for the whole family for just 25 bucks a line. Only at tmobile. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. More than 800,000 people passed through airport checkpoints, the highest level since march. Despite the uptake, tsa traffic down 70 airline shares rallied on the news last week for those who are not ready to get back on commercial flights and can afford it, private jet companies are taking advantage jet it saw its sales jump 300 in the Second Quarter<\/a> compared to 2019. Joining us glen gonzalez, founder and ceo of jet it. Glen, welcome. So talk to us a little about where the demand is coming from. Sara, its the same for all americans. We all want to protect our families we want to protect ourselves, if we can wed love to live to be 120. But unfortunately with the coronavirus and this current pandemic, unfortunately its hard to stay safe. None of us understand where its coming from or why one of the ways to reduce the odds when have you to travel, when you have to be there, the entrepreneurs, Business Leaders<\/a>, to keep everyone employed and working so hard to do so, private travel is the way to go. Thats what we found with our growth with jet it. But its so expensive, glen what is the least amount you can pay for a private flight and how do you get those costs down . Is there any way to make economics more accessible to more people . There are lots of different models out there, sara in our case, one of the things we do, our owners are only paying 16 hun an hour to operate. Part of that is the airplane, part of that is our Business Model<\/a>, and the rest of it is the market demanding need of private travel at the end of the day its about physics. If i dont need an airplane to carry eight people that weighs 20,000 pounds, then maybe i should find Something Else<\/a> thats in the market with our utilization of the jet elite, its the same honda that builds all over the automotive vehicles, we use the honda jet and its only 10,700 pound airplane but its still the same speed, still as comfortable and spacious and as quiet as all of the other airplanes ive experienced having flown everything from fighters to gulf streams. Glen, expand on your Business Model<\/a> a little bit you quoted a price per hour it would cost an i dont know to buy the planes they have to have bought the plane in the first polar vortex albeit a share in the plane with not a share up front. You are buying the aircraft in relation to our business. In exchange we provide you with the aircraft for a number of days the greatness about that is you can fly anywhere and everywhere you want within a normal free duty day a lot of owners are utilizing the airplane to run their errands. They proceed to meet with suppliers in the morning, in the evenings meet with another customer an return home for the evening activities to be home for dinner especially in todays environment thats a great tool given thaturing did the pandemic. Using it to run your errands. I doubt the Addressable Market<\/a> is everyone in the country pivoting a little bit, glenn, what is the optimum distance for this sort of Business Model<\/a> and this sort of plane youre using. Its not long haul travel, is it it is not what we found in our research the average traveler is flying 90 to 120 minutes, 1 1 2 to 2 hours time three people on average. We can take six. If thats not the norm, whats the need for having an eight or ten or twelve passenger aircraft. So what have you seen in terms of expanded whats your vision for how youre going to expand your Customer Base<\/a> here clearly people want to fly older parents places in a pandemic how are you reaching out to those types of people, because it is a pretty specific wealthy clientele. What we found is typically its notnearly as expensive as the rest of the industry normally its about five times the cost of what our owners are paying to utilize our service. That being said, when it comes to reaching them, in most cases people are finding us. Owners are reaching out to their friends and colleagues, trying to help them, provide them with safer means of travel. These individuals are all walking in the same circles. Their Business Leaders<\/a> in our communities, civilian leaders in our communities and they want to make sure they are taking care of themselves and their friends. If we could expand it to everyone across the country, we most certainly would at the end of the day, it is somewhat expensive to operate the aircraft as far as it is concerned, we are launching our first aircraft to Southeast Asia<\/a> with my cofounder he is running our International Operation<\/a> jet club and were continually expanding across the country with jet it. What, glenn, are your permissions with travel compared to new bigger boeing or airbus obviously when youre comparing it per passenger, theres really no comparison there. One thing i can speak to that, the honda jet is the most efficient aircraft in the marketplace. It does have the lowest emissions in reference to any other business jet in the marketplace, so those are things that definitely work to our advantage. We actually have some of our owners who purchase credits in expense after they fly every flight with us those are all options and were happy to facilitate those discussions for an individual who might be interested. Dplglenn, thanks for joinings to talk about the business. Thank you both. From jet it were on record close watch for s p 500. It would be the first time weve hit a record since mid february. The intraday record in striking distance here as well. Were up 1 1 2 all groups positive except for financials still ahead shares of lyft are down 30 on the year facing head winds not just from the pandemic but also from a New California<\/a> ruling were going to discuss those factors, see how they impact earnings when results hit after the bell and as we head to break, here is a check on bond for mixed action for treasuries today, though the tenyear yield is higher again. 675 so continuing to see that jumping in yields, which yesterday was a big story, cooled off at the end of the day and into this morning. Were seeing it happen again thats why its weighing on banks. Well be right back. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. 50,000 cases for the third day in a row but deaths have not yet begun to roll over the nation averaged over 1,000 deaths per day for more than two weeks. Florida and georgia with single death toll records florida positivity with 17 while georgia is 11 International Front<\/a> United Kingdom<\/a> gdp plunged 20. 4 in the Second Quarter<\/a> this as europe continues to show signs of new outbreaks germany announced 1,236 cases, the highest count since early may. New zealand returns to partial lockdown after posting its first new cases in more than 100 days and france saw its biggest jump in daily cases since easing lockdown restrictions with 2,524 new cases in a single day. Time now to get a cnbc news update with rahel solomon. Here is the cnbc update in iowa assessing damage from derecho storms an estimated 10 million acres of crops, a third of the states total 600,000 people still without power. Overseas fires continue to spread in the amazon brazil reporting more than 10,000 fires in the first 10 days of august so experts say that the fires are usually man made to clear land for pastures, also president bolsonaro predicting figures saying there are actually fewer fires in indiana where south bend students taking classes at home getting a boost from buses that used to take them to school. More than a dozen school buses turning into rolling wifi hot spots to expand access to internet there and improve chances elearning will be a success. Up to date, cnbc update for this hour wilf, ill send it back to you. Thanks very much. 28 minutes to the end of session, close to alltime high, 3380 the required number, 3386 back in a few minutes with much more on these markets. [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. The volatility. The ambiguity. This moment calls for more. And Northern Trust<\/a> delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Bouncing back from yesterdayed late day selloff, a couple of points from a record day high. Lets bring in tony dispirito, cfo blackrock and Portfolio Manager<\/a> of blackrock Equity Dividend<\/a> fund. Tony, thanks for joining us. Do you sit here today with all time record high on s p thinging im a lot more likely to buy equities or sell it. I think theres a couple of drivers around the market really important to recognize one is the economic data, thats been broadly positive particularly as were seeing cases come back down you see it in the city price index. That set an alltime low in april. Mid july set an alltime high and were still pretty close to those high levels. Earning season very strong we had beats of more than 20 on earnings so thats very positive then we also have a very supportive monetary and fiscal policy thats really a big deal weve never seen such a coordinated effort this swiftly. Its global, its coordinated. Big, important finally the virus itself, theres a lot of optimism around the vaccine. We have a number of companies in phase three trials weve seen governments around the world contract for supply. So i do think there are a lot of reasons to be optimistic on the other hand you have to have a healthy dose of scepticism there is some froth about this market we see it in special purpose acquisition vehicles they raised a record amount of capital in the Second Quarter<\/a>. It seems like every day theres another one coming to market you see it in the robinhood phenomenon, online trading you see it in the Options Market<\/a> more buyers in calls and puts, we isnt seen it since the tech bubble there are reasons to be optimistic, also ropes to be cautious i think well be range bound for a while here. Overall do you increase your exposure to u. S. Equities or reduce it. So im holding it you know, we have a very balanced portfolio weve taken a barbell approach where we have a healthy dose of n n n n n noncyclic always the companies that have gone down the most, as the world normalizes, we get a vaccine, those are the industries and sectors that have the most to rise. Right is that why seeing rise in tenyear treasury note yield its really starting to take people people are surprised. 67, away from. 5 where we were a week ago hovering around a record low what is that about and when do we get to levels where its worrisome for Equity Investors<\/a> lets remember where we started the year, right, we were at pretty close to 2 . Yes, weve had a rise here in the last week or two but thats small relative to history. 70 basis points or less, thats still extremely low rates. So when you look at market multiples, yes, on an absolute basis, market multiples look high but you cant look at them in isolation you have to look at them in the context of Interest Rates<\/a>. When you do that, multiples actually look quite reasonable i do think its something longer term we have to worry about. But a move from 50 to 60 to 70 basis points, thats small. Tony, were seeing banks sell off today despite the fact the tenyear yield keeps rising. Obviously they jumped yesterday. What does it tell you when we fail to see them ever build on any gains in a meaningful way. Is that a warning sign about the broader economy or stock or sector specific. No, i think theres just a debate going on in the market right now so to speak. In most when you have a market that declines and then recovers, usually what led in the decline, theres a change in leadership what leads out is something different. You saw that in 2009, right . In 2009 the sectors and companies that were hurt most by the Global Financial<\/a> crisis, they are the ones that did best in 2009. This recovery so far has been very different the leaders have continued to lead tech and health care why is that . I think its because some of the drivers, the important drivers have been the stimulus both fiscal and Monetary Policy<\/a> we havent yet had that real economic recovery. I think when we see a vaccine, thats when you really see strength in financials and energy until then, i think were going to have this back and Forth Movement<\/a> in those sectors. Where do you see financials excuse me, evaluations overall for the market and how should we be thinking about that in this era of unprecedented stimulus and what thats going to do for multiples. Well, particularly its about Monetary Policy<\/a>. Its about low rates were in a low rate world. If you need income, equities are the only place to go when the s p 500 is yielding 180 basis points and the tenyear treasury is at 70, thats an easy decision. Get your income from equities. Same on pe multiples, if you think about the valuation of the market, p multiples dividend discount key input is Interest Rates<\/a>. With Interest Rates<\/a> as low as they are, that tells you multiples should be high until we get to 2 plus tenyear treasury, i think thats the world were going to be in, a world of high multiples. Tony dispirito, thanks for joining us. Thank you. From blackrock. Up next s p 500 makes a run at a record what to watch when lyft reports and why one is bullish on American Eagle<\/a> those stories when we go inside the market zone. A reminder, watch or listen to us live on the go on the cnbc app. Closing bell will be right back you say the customers make their own rules. Lets talk data. Only Xfinity Mobile<\/a> lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile<\/a>. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy<\/a> note20 ultra 5g. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission<\/a> free today. Weve got 15 minutes left in the trading day. We are now in the closing bell market zone. Commercialfree coverage going into the close cnbc commentator mike santoli here to break down the trading day. Ceo josh brown here as well. Well kick it off with the broader model glued to the levels on s p 500 because were on record close watch. The first time s p 500 made a record close since february 19, prepandemic. 3383 is where we are right now 3386 would be a record close were also watching for a record intraday high which is 3393. Mike santoli, significance of these levels and these milestones. Means the market hasnt done anything in six months no the significance is to really just track the pace and the steepness of the Financial Recovery<\/a> that weve seen here. We all know the reasons why. We know the kinds of stock it took us here it seems as though today the market said whats the shortest path to get it over with lets take microsoft and apple agency does it for us underneath the hood very kind of quiet action, very mixed, 50 50 versus up and down, some bigger nasdaq stock bouncing off their trend line the significance really is to take an opportunity to stop and assess and say what got us here, whats in the tank for the market a lot of stocks have not participated a third of the s p down more than 20 off its high, can that somehow kick in if we get greater clarity on the path of the economy and those are the questions for the moment. Josh brown, how much is in the tank for the market . I think you can go back i think you can go back and look at the yield curve again and the fact that its steep is important. If you want confirmation that the rally weve seen over the last week or so in cyclicals, industrial stocks, financials, if you want confirmation thats based on anything other than etf flows back and forth, that would be your tell by that measure, i do think there are some good things to point out in both auction act n action option action and yield curve, tenyear threemonth, that is positive action its quite possible that that has bottomed as of the first few days of august if that bottom sticks, i think its important then just go ahead and purely look at the tenyear i know a lot of its ability to signal peoples feelings about the economy have been taken out by voracious buying from Central Banks<\/a> and the fed. I still think theres some meaning there. Seeing that at 65 basis points when 0 looked like a foregone conclusion four weeks ago is important. If youre looking at something outside of the stock market to confirm stock market strength, thats not a bad place to look. To that point 67, does it make you rethink what sectors to be in because of rising rates, better inflation data to back it up thats a really good question, sara the only way to answer that question is with another question do we have a vaccine because this is all one big story. So while were all blind and touching different parts of the elephant and some are looking at the price of gold, dollar, bond yields, earnings picture, at the end of the day, there is a game changer looming out there and we dont know if that game changer is two months from now or six months from now. But when it comes, every win that everyone has about the stock market at present, throw it out the window. So its a very strange and peculiar time on wall street to be thinking about the future because we all know that theres this thing that might happen, hopefully will happen, that will invalidate everything we think is happening at the current moment so i think its reasonable when i talk to clients and we talk to over 1,000 households as their financial adviser, i think its reasonable for us to present the situation that way and to not as though weve got an edge on when the fda will approve a vaccine, when 10 million batches of it will have been delivered where its needed. We dont have that edge but we know how important it will be if and when it happens. But josh, throw it out of the window because if we had a vaccine today the stock market would double or would climb 5 or what . I dont think a vaccine is fully priced into some of the biggest sectors in the market. So what, so if we had a vaccine today all else equal s p 500 would climb by what amount we had enormous amount of stimulus and vaccine could solve economic problems. Look, im just a guy who casually sits in his living room with a full suit and tie on, so take this with a grain of salt my bet, this is my guess, we have a vaccine before the election, and i think there might be some incentives out there for that to happen im not saying we have a vaccine, like they are injecting it into me, im saying if theres fda approval of a vaccine and a reasonable timetable for when thats going to get to frontline workers and hospitals, doesnt have to be the whole population, i think banks go up 20 on average im in berkshire hathaway, jpmorgan, those stocks go up 20 . This is my opinion does it have to happen in one day . Probably not but we could see an absolute rampage. The closest thing we have to something instructive would be the runup in stocks going into the tax cut, the trump tax cut so stocks price that in on a monday and rallied again on tuesday and rallied again on wednesday and ran all the way into the actual physical announcement everyone knew it would happen because of congress and the president being in the same party. So thats the way i think we should be thinking about an event like a vaccine it will have an enormous effect on a lot of areas of the market that have not done well in the recovery so far relative to tech but again, you could take a lot of pain waiting for that moment. We are currently by the way about five points from a record close on the s p 500 robinhood officially stopped sharing its user trading data last week. Jpmorgan looked to the platform to learn about the surge of Retail Investors<\/a> piling into the market the firm found these individual investors have been net buys of attention grabbing stocks and these stocks outperformed those with decreasing popularity, at least in the shortterm. One group that may be quietly hit by robinhoods trading data being taken down hedge funds according to some reports some funds using robinhood data as input into trading algorithms. Mike, the question then becomes do all hedge funds miss out or select few Getting Better<\/a> access to more unique data . They are trying i think they are looking for perhaps a substitute or some way to get a window onto this part of the market. Theres definitely a new energy and character to parts of the market because of this boom in new account openings and the kinds of stocks that capture the attention of this type of stayathome trader, novice trader i dont think its just hedge funds looking to the order flow and patterns in it to directly trade against it or to follow it blindly but its a new source of idiosyncratic order flow what i mean by that, right now for years been in a market black boxes, everyone following same quantitative models, signaling the same technical indicators, execution algorithms its been very difficult to have an edge because everyone is on the rule book. This will be a little different. You chase a lot of the story stocks and see if that plays out. Theres one school of thought that says hedge funds may have a greater opportunity in this type of environment. It does sort of raise the question, josh brown, what sort of Market Indicator<\/a> are those robinhood trades, are those retail trades . Wasnt it in the long train they were contrarian indicator . Now a hot spot to look at stocks like tesla that gets a lot of retail interest. Well, if you go through the report they find that todays, i guess, millennial and gen y traders are exactly the same as their parents. They are on an app as opposed to Charles Schwab<\/a> or doj direct but they are the same thing. What they did was recreated the story, a very famous study where original study looked at 1981 to 2000 what they determine in the study is that retail traders tend to buy stocks in the headlines, tend to buy stocks trading at very high volumes relative to previous volumes meaning theres a lot of chatter and interest and tend to buy stocks where theres been an extreme recent move in the price, usually up. Thats whats going on today with the new study coming out 20 years later. I know everyone thinks its a new generation, new era, the same thing i remember because i was there, im there again. Im there twice. When you see on the robinhood app and people on social media talking about their stocks, to me it looks exactly like raging bull i know santoli was there writing great articles at barrons, same phenomenon. I agree but its not over so in other words, yes, it feels very familiar, the dynamic is there. I think the emergence of this cohort made people in the business almost more nervous than it worries me they are getting a little crazy on the retail side. Its almost like it created its wall of worry. If we get anywhere near, you know this, were not there yet. One thing i want to add to that i agree with you one thing i want to add to that the most conclusive result quantitatively in the study, past a week, it doesnt matter in other words, they determine that stocks that make it into this robinhood top ten list, whatever it is, most owned stocks on robinhood, they couldnt do it by dollar amount so did it by how many robinhood accounts on the stock. The most conclusive thing is that, yes, if you buy a stock that ranks highly amongst robinhood account users and bubbles up into that list over the next week, youre likely to outperform the rest of the market true, but past a week they say its inconclusive so what are we really doing here i guess if youre a hedge fund and write an algorithm for as long as they provide the data which they will probably shut it down tomorrow but for anxious you provide the data, could you trade that, trade against it, get long for the week . Okay, great. I think everyone else needs to calm down. While it might be new kids doing this, this is what kids have been doing when they enter the stock market in every decade or every two decades going back to the buffett shops and livermore, that said its not that different. That said, more people might have scope to enter into it for this generation because of access to fraction al shaers or everyone with a smart iphone in their hand, didnt have access because it was more expensive to trade. Going to etrade instead of merrill lynch. You still had to do 20 for a single trade. 20 down from 300. Just saying can i ask a question. More generational effect this time. If the barrier to doing a trade is a 7 commission, maybe you shouldnt do that trade. I dont know call me crazy. Like if that was the Thing Holding<\/a> people back and now all of a sudden they have good reason to trade, look, i think people are board, at home, discovering this whole new world in the absence of sports lets not just knee jerk get nervous about it, lets root for these kids to learn stuff along the way. They will make money, lose money. My generation did it every generation goes through it its fine. One more point in question, well have to come back to after the close, first a preview of lyft numbers due out straight after the close. Deirdre bosa. The fate of ride sharing in california after a judge ruled uber could classify as employees. Uber says theres a real chance the app will shut down entirely. We think we comply by the law. But if a judge and court finds we do not and dont give us a stake until november, then well have to shut down irish until november. Lyft hasnt been as vocal or engaged in that brinkmanship but appealing the season and basing same existential question does the Business Model<\/a> work if drivers must be employees. Now the Financial Results<\/a> are expected to be ugly especially after ubers massive decline in ride sharing and doesnt have food delivery edge uber has. At the same time we could see leaner cost structure from lyft and better positioning post pandemic back to you. Yeah. Questions about whether they saw the lows in terms of ridership thank you. Deirdre, thank you deirdre bosa two minutes left in trading day. Mike, whether or not are you seeing in the market internal. Not really flattering whats going in the headline index, opposite of days with great internal action and the index not doing much slight advantage on New York Stock Exchange<\/a>, up versus down not conclusive the nasdaq similarly mixed even though market cap weighted nasdaq composite is a good deal higher thats something to watch. About the rotation recently, its still in there if you look at the numbers like industrials versus technology over the last week or so, its kind of holding this advantage its really more cyclical. Its looking good on fiveday basis. Volatility index more less in tune with the ramps of the highs. Its been lower in the last few days right now still cooperating the market is supported but not collapsing like you would see if the market were going to really go to sleep and be on melt up mode. One minute left, five points away from record close on s p 500 and were steady so it doesnt quite look like well get there today. 3380 is where we stand 3386 is where we need to be for that record close. Still high across the board, 1. 4 s p 500, 1 higher on dow, 2 on nasdaq composite, russell 2000 lags but up half a percent tech, health care, utilities best performing. Only one in the red, financials. Banks somehow failing to perform today despite tenyear yield rising nicely to 0. 6 banks opened higher but faded during the session gold buounced but down. The dollar had bounced a little bit but soft down. 2 of 1 back to s p 500 were watching closely for record close at 3381 as we stand four points off what would be a record alltime closing high as the bell goes, we have just missed that but its still up 1. 4 today and is only just, what,. 2 percent or less from record alltime closing high do you up 1 and nasdaq up 2. 1 . And that will make it its best day for s p 500 since july 6th, more than a month not quite a record close welcome back, everyone, to closing bell. Im sara eisen with wizard frost along with mike santoli, cnbcs market commentator take a look how we finished the day on wall street pretty strong one. The dow closed higher by a percent, 289 higher on the dow as far as the big winner, apple was the leader of the dow, microsoft behind it, home depot, merck, a lot of winners on top boeing and American Express<\/a> were the losers s p 500, 3380 wasnt enough to get to a record close of 3386. Not too far away and a gain of 1. 4 does make it the best day since july 6th technology and health care led financials, the only red sector in the market today. Nasdaq took back its crown up 2. 13 after three days in a row of weakness and underperformance of growth versus value we saw that come back into play today. Russell 2000 index small caps lagged only up half a percent. Banks part of the story there. Were going to get earnings from two sides of the pandemic story. Ride sharing company lyft which doesnt have food Delivery Business<\/a> like uber and cisco, read on Global Economy<\/a> and business spending on digital, those due out any minute now with stocks brushing up against alltime highs, what do you do now . Whartons Jeremy Siegel<\/a> joining us in a few incidents make joining us to talk about the market josh brown is here. First to you, mike santoli, on that resumption of the tech trade and the pretty strong bounce we saw today overall on what was a lack of real news that drove it. There was, sara there really was what had been longterm Leadership Group<\/a> in this market just kind of reasserting itself, bouncing after a few days down. I do think the market to some degree is following the path of maximum frustration in the small moves as it tends to do, which means everyone got really excited about the rotation away from big growth names into cyclicals. It has worked, continues to work, day to day, people kind of overplaying it on the very shortterm its just too hard to say whether there will be zerosum game flipflop around there. Apple, microsoft, can take this market higher, draw out the drama for another day and see if we get back to february highs. Josh are you worried there might not be stimulus bill and if not, will that damage equities i am worried. I think that will introduce a new element, ive called in my blog an air pocket if we can avoid the air pocket, eventually they will do a stimulus because they have no choice you have 17 Million People<\/a> and an election coming up. I do think both sides have to come to an agreement forget about the election and anything cynical like that, you cannot ignore the fact that by the time this is over, there will probably be tens of millions of businesses that have closed across the country. We may be stuck with chronically high unemployment in areas like hospitality, leisure, for years to come. We really dont know how this fundamentally reshapes the economy. So one really important thing that took place this spring that has not accompanied any previous recessions is this idea of keeping the consumer going regardless of their employment status, and it worked beautifully. I understand theres a bill for that that bill will come due in the form of higher taxes and more debt, but i think its preferable to letting everything go down the tubes over ideology. So i am worried about that i do think it will be resolved im not permanently worried about that but i think they have to get on it right now. When you talk, josh, about the loss of small business, the business thats going to be permanently damaged here, the longterm scarring to the jobs market and to our economy, does it make sense to you that stocks have wiped out all their pandemic losses . Well, it only makes sense when you go under the hood and look at what the stocks were that drove that recovery youre talking about. And unfortunately, and this isnt longterm or forever, but unfortunately there are Huge Companies<\/a> in our economy that have major market capitalization in terms of their waiting in the indexes that will thrive regardless of what happens to people in lets say the bottom decili or quintile of the earnings categories. When you see people, hotel workers, when you see mass layoffs your assumption is this will hit iphones i know how horribleette sounds it does. At the end of the day they look at large cap tech earnings, large Cap Growth Companies<\/a> earnings and at who actually lost their jobs and its like a double tragedy, which is why i feel so strongly the government needs to step in and help these people because it would be a much worse scenario for us to emerge from pandemic with more wealth inequality than we had going into it and we had a lot it looks like something will happen but absolutely, problem 20 million, 30 million in america in a daily emergency when i juxtapose that looking at my stock trading app, its always bittersweet its hard to celebrate a new record high on the s p given the fact so many people are not experiencing anything resembling a recovery personally. Lets get to earnings lyft is out. Lets go to deirdre bosa for that deirdre. Hey, sara the results are ugly but they are better than expected an adjusted loss of 0. 86 per share versus thats nearer than the 0. 99 the street was expecting. Revenue a beat as well, 339. 3 million versus nearly 337 million expected that is still a decline of 61 percent year over year i should also note the fed is better than ubers ride sharing or mobility Second Quarter<\/a>, that dropped 67 year over year remember the company does not report gross bookings. Aggressive cost reductions led the company to outperform q2 outlook it set out on Earnings Call<\/a> active riders came up short for q2, 8. 7 million, a drop of 60 from last year the street was expecting it to hold onto 9 million active riders 39. 06 better than 38 and change analysts expected perhaps youre seeing some operational efficiencies play out there. The stock is up nearly 2 1 2 . Also some commentary on recovery trends, sara i know youre looking for those. Ceo logan green said hes encouraged monthly ride share rides in july up 78 compared to april. That is quite substantial recovery, so that stock is up 2 1 2 on the call were listening for any commentary around those regulations, the fate of the company in california as well as guidance for the Third Quarter<\/a> and rest of the year if they choose to get that back to you. Just to be clear, in april they had fallen off a cliff. Right, deirdre, they were down, what, 75, 78 . They were down. I dont know what that number was but up 78 from that low point so still have recovery and we heard similar comments from uber. Got it. Deirdre bosa, thank you. Lyft shares surging a little after hours, up almost 6 a better read pretty much overall. They dont have eats like uber and the weight of the california ruling but the numbers look better. Yeah, they definitely look better one thing about lyft and uber, for almost their entire history they have not really been overloved. The street has had relatively realistic understanding of the challenges here meaning they never did get to that mode of the street blindly believing this is going to work out great. When you look at lyfts chart when it became public in 2019, it looks like a slinky going down the stairs, has waves lower. See if we get to the landing thats why able to bounce on a daily when you dont have a lot of clarity how the business will turn out but expectations reasonably low and incremental progress is enough. Guys, break out the cisco numbers which for the quarter just passed actually kind of in line or slightbeat but shares moving down because of the guide, which is a little soft. Revenue came in at 12. 15 billion, the forecast was 12. 1 being. The eps, adjusted 0. 80, forecast for 0. 74 a share so on that the quarter is basically in line. For reference that is still a 9 decline year over year for revenue for the quarter but in line with expectations the guide, though, for q1 cog in a bit soft eps at 0. 75, guiding 0. 69 to 0. 70, down revenue year over year for next quarter. Just digging into individual lines to find out a bit more detail the quarter passed itself where we had that detail it was a very slight beat. Nonetheless shares down 4 in after hours trade, mike. Yeah. Its become kind of a grow at gdp levels at best type business therefore the guide, you know, they have a decent read on how thats going to track from here. Its certainly not an expensive stock. Its in that old tech penalty box for a while, 3 dividend yield. Those are the things to essentially sort out whether thats worth it here when youre not necessarily going to see an acceleration on the top line, more of a defensive type business at best. Do you like either of these. I just on cisco, even if its a slight beat or whatever, still negative 10 year over year. Theres no growth here the fact that in this pandemic webex didnt totally own this whole work from home thing why are fortune 500 Companies Adopting<\/a> zoom when webx has been available for over a decade. I find it so disheartening they couldnt capitalize given their strength in telephony and everything they do super boring stock, ambien of the nasdaq i dont know why they dont become a dividend name go to a 5 yield, acknowledge that youre barely ever going to grow faster than the u. S. Economy or Government Spending<\/a> or whatever the proxy is because they have really missed the boat here look at their piers, stock up 35 to 100 and this thing is putting me to sleep. I dont want to talk about it anymore. I want to pivot back to the conversation before the close, a question i didnt get in that is tesla jumping 30 on news of the stock split. Does that worry you and make you think apples massive jump after earnings many people saying they had a great quarter, too, was purely down to the stock split and at some point hot air for the jump for superficial reasons the hot air has to get removed again. Yeah. I went back and look, 25 police a month in 1999. There were people buying stocks just because they were splitting. We do seem to be getting back into that mode so i would say yes, it obviously if you have this bubble opinion of the market, it would go a long way toward affirming that when you short the history of stock splits they do tend to peak right around when theres a market top i dont like to see that kind of activity but what am i, peoples mother if they want to buy something because its splitting and dont understand the difference between ten 10 bills and 100 bill i cant be the world police, wilf. If Warren Buffett<\/a> is the father of investing, youve just anointed yourself the mother or in british terms well call you the mum. Josh brown, thanks for joining us. Still to come, more on lyft shares better than expected quarter but a sizable loss as the business struggles during the pandemic were back in 90 seconds lets hear it for kansas city monarch legend jim robinson. Crowd cheering celebrate your history together. The allnew highlander. Toyota. Lets go places. Lyft earning, deirdre bosa with more. Hey, deirdre. Hey, sara, i want to add commentary from lyfts ceo he reiterated still targeting q42021 for adjusted end ridability, ride shares measure of ride able he says we can get there with 20 to 25 fewer rides because of cost savings measures, 300 million putting in place for this year. So its interesting that they can get there. Thats still on track despite the huge decline in revenue. Sara. Pick it up. Thanks so much for that. Shares as weve been showing you moving higher for lyft, lets dive in deeper thanks so much for joining us, gentlemen. Santos, start with you, clearly costcutting measures enacted. Do you welcome those or do they worry you a little bit these are costs 12 months ago people would have been amazed they can say they can strip out . Absolutely. I think this quarter was all about Cost Management<\/a> and positions for the post covid world. The second half of the year. I think they are doing a great job. I think nothing was expected not much was expected this quarter. We just wanted them to hold the line, which they did a lot of challenges and uber told us that already so i think they are doing a great job, and their targets are still on track i think all said, i think they are on track they are doing very well. Angelo, do you feel like uber eats, currently a benefit for uber, will become a kind of anchor to their numbers in the future or is this a bit of luck that uber will always benefit from no, we definitely love the diversification of uber here as far as their Delivery Business<\/a> at the end of the day. I think thats really kind of the name you really want to be pegged to. Its a really tough year, and i know lyft highlighted the fact that looking for adjusted ebitda profitability by late 2021 is difficult to tell. You have no idea what the Regulatory Environment<\/a> is going to look like you also have no idea what the recovery is going to look like in terms of post covid19 world. We do believe getting to 75 of those volume is attainable but wed rather be more exposed to that Delivery Business<\/a> where we see some significant secular opportunities there. Lets talk about the Regulatory Environment<\/a>, santos its not favorable for them right now. Like uber facing this big issue in california where lawmakers want them to classify their w k drivers as workers how much can you expect to play out can economics work for uber or lyft if they have to do that . No. I think the way the judge wants it, i dont think it will work there will be a lot of back and forth. Well see how it plays out its a lose lose proposition if it passes. The drivers lose the freedom and income to some extent. Riders will lose the quality of service and the price because prices will be passed down the whole proposition of this Ride Sharing Companies<\/a> will go away i think there will be a lot of back and forth, hopefully prop 22 will pass and in favor of these companies and they will come down and people will realize that in the end its for the good and there should be a paradigm shift for the new economy and laws need to adjust to new reality. Angelo if lockdowns lasted longer than any of us want, how many months are we talking runway and wiggle room that both these companies have well, in terms of the Financial Capability<\/a> of these companies clearly uber is more than capable of lasting a prolonged downturn in terms of lyft weve seen them burn significant cash over the last two quarters. They raised a ton of cash in the most recent Second Quarter<\/a> which allowed them to actually increase their cash position quarter over quarter that being said, if were looking at prolonged downturn or shutdown, i mean, theres a real possibility where youre looking 8 to 12 quarters out where you could potentially see lyft run out of cash. We dont think thats really a likely scenario. But that being said, clearly uber is in a much better financial position than lyft is here for the longterm id say this, when we see downturns like this, what you typically see happening is the strong get stronger and the weak often tend to get a bit weaker if we were to see that protracted downturn. We want to santos, go ahead. One thing, lyft with its pure play focus and 75 being variable, they can handle, have enough funding were on the other side of that, we like the pure play of lyft and optionality later on of other services right now i think lyft is well positioned Going Forward<\/a> for the downturn. Finally santos, lyft did say rides in july are trending up. 78 higher than they were in april. April, of course, was the low where things really dropped off a cliff. Is that encouraging . Is it gradual change do you wonder about how much improvement can be seen while were still fighting this virus and while in the meantime our habits are changing . People are out buying cars, for instance yeah. We were looking for green shoots and we saw a few here. Theres going to be comeback, localized. Some markets are opening up like the company has said in the past youre going to see a gradual buildup, not overall all over the country but youll see localized pickup, until the whole thing picks up there is a bridge to complete abnormality and i think lyft can ride it. Thanks for joining us angelo and santos with lyft shares after hours. Up next, how much juice left in the rally mike is answering the question once and for all then the professor Jeremy Siegel<\/a> will weigh in whether stocks are overvalued right now closing bell will be right back 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. Our Retirement Plan<\/a> with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile<\/a>. Call, click or visit a store today. The remarkable climb of this market continues, higher by 1. 4 today, best day since early july lets go back to mike santoli taking a look at Investor Sentiment<\/a> and whether the market is overvalued here, mike. Yeah, sara, when weve been up 50 as we have in just a few months and back at the alltime highs, the things to look out for seeing nearterm tub liens is the market overloved and demonstrably overvalued. Here is the spread between bulls and bears, weekly poll we look at a lot investments, advisers, newsletters. Here you see that spread at the top of the range, above it late 2017 or early 18. Otherwise scraping against the top of the screen. I would want to emphasize, this doesnt mean sell. The market can continue to go higher as it did for most of the back half of 2019 while people are still on board and people are still net bullish but it does tell you maybe we couldnt accommodate too much expected bad news often something comes along when everybody is overtrusting of the market valuation wise, somewhat alternative of the median pe, trailing pe of New York Stock Exchange<\/a> stocks. If you look at the universe in the middle, whats the median, 30, almost off the charts, a very longterm chart valuations higher, massive shock where profits disappeared for Many Companies<\/a> its inflating this number we did see something pretty big right there, at the beginning of the last recovery. Not necessarily game over but shows you a lot of the expected turnaround in profitability is probably already reflected in the majority of stocks here, guys. Its really interestingthat you looked at the median weak because you cant say market is big tech stocks that continue to go up and up and up and totally overvalued are you saying the ample stock, even ones that have not soared like tech stocks are overvalued, punished for a reason. Overvalued or underearning. When you have trough earnings you look like a daily basis. It adds a point to the idea of valerotation a lot of socalled value stocks are only relative values and not necessarily in an absolute sense super cheap based on the long sweep of history. Mike, that is a 123month trading pe a couple months later it will get worse. A couple of back orders in there. This quarter will exacerbate this trend theres no doubt about it. At least cosmetically youre not going to be able to make the Valuation Case<\/a> for stocks. The thing is financial conditions remain supportive, supply demand for stocks is good, trends are higher. As long as data keep Getting Better<\/a> on longerterm basis the market can do fine as it did in the early 2010s but you have to be on the lookout for any arguments that say that the market is cheap, which i dont think you can make that case. Mike as always, thank you stocks finished higher s p missed out on record close do they have rootom return. Discuss with wharton schools Jeremy Siegel<\/a> when we return the s p 500 closed just shy of record levels set back in february joining us now is Jeremy Siegel<\/a>, professor of finance Whartons School<\/a> of business at u penn you were making the bull case, professor siegel back in the crisis, you were right now that were up against this historic milestone, are you still telling investors to buy yeah. I think weve got a ways to go we have 35 increase in the money supply sips the beginning of march we have not had that increase in liquidity for 75 years more than twice the increase in liquidity in the entire year that followed the lehman bankruptcy and that liquidity is still going to be going into the stock market i still think were selling about 20 times next years earnings in a zero Interest Rate<\/a> environment, and i think we may beat next year by 5 to 10 , because i think were going to have a spending boom in 2021 with all this buildup of liquidity and the fears of the pandemic we get the therapeutics, et cetera i think all this money is going to be flowing right into the economy and into the stock market. But does it depend on another stimulus increasing that money in peoples wallets especially for the millions of americans that are still unemployed nchts you know, i do think they are going to come to a deal. Im very disappointed it hasnt come to a deal yet it seems like theres a lot of political posturing, which can understand less than three months until the national elections. Its over the is it going to be 600 or 400 over the standard amount both sides agree on a lot of the other factors that are there i think its posturing i think we will get a deal that will come through. Well see which side thinks some political advantage to Standing Firm<\/a> for a while so professor, you just listed a couple of the shortterm risks to the market, whether thats a stimulus bill or the election. Are they significant enough for you to want to take money off the table, take some profits because of the likelihood or risk of a shortterm pullback or is that money supply, that liquidity argument for the next 18 months just far too powerful for you to even want to risk missing out on i think really even overwhelms the politics. I know about and ive talked about if theres a democratic sweep higher taxes, but i really think the increase in the liquidity dont forget if theres going to be a democratic sweep, theres going to be a lot of spending. Youre still going to be in more debt, more spending thats going to be feeding into the market. More taxes, thats something took consider. All the forces i think, liquidity buildup, democratic administration, more spending, unemployment is going to stay high, the fed is going to stay at zero. As i mentioned, i remember mentioning back in april i said i thought there would be inflation in 2021, 22 people said, professor, only deflation, oil is negative now more and more people are beginning to say, hey, where is this liquidity going its going intocommodities we see it in gold, we see it in silver it goes into assets that are backed by real assets such as stocks i call for the end of the 39year bull market in bonds that started in 1981 i dont think well ever see yields on longterm bonds as low as we have this year looking back what that means is really . We just saw the record low a week ago. I know. We have, a half a percent and now about 67 basis points. I still think maybe that week ago was going to be the high i think thats going to be low i dont think negative Interest Rates<\/a> in the u. S. Because i think inflation next year and i think bond holders are going to say, hey, i need more compensation than 50 basis points to hold tenyear paper. You know, i think that will send bond Interest Rates<\/a> higher moderate inflation, 3, 4, 5 is good for the stock market. High inflation is bad. So you like the market clearly. I do. You say were going higher. Does that mean you should stick with the winners, technology, chip stocks . Amd up 10 , do you stick there because those have been the big beneficiaries of liquidity trade or get into value which has started showing some signs of life, industrials, energy companies, maybe banks. Well, if theres going to be higher Interest Rates<\/a> the fed is going to hold on the short end but the higher end, that will do better for financials. Theres two arguments in 2021. Obviously we see how important tech is and clearly that has been the relative outperformer but the two factors that could argue for 2021 the return to value is one, of course, vaccines, therapeutics to get people back into a more normal economy, factor number one factor number two, where are people going to get yield. Dividend yield in s p near 2 . A lot of stocks, sound stocks, 3, 4 , they are going to be looking for those stocks to get yield because youre not going to be getting them in the treasury market, youre not going to get them in the bank, youre not going to get them in the cds. That might be a really big shift in people thinking its not a lot but the income i can get is going to be in the Dividend Bank<\/a> stocks that could cause the shift in 2021. Professor siegel, for so much of 2018 and 2019 we kept asking the question how much longer can this tenyear Economic Cycle<\/a>, tenyear bull market continue. If the next six months does, indeed, go well and we get a vaccine and were out of the craziness of coronavirus in 2020, are we then at the start of a totally fresh new Economic Cycle<\/a> and potentially bull market for the stock market . Or because this has been such a bizarre end to the last cycle and pulling out of the depths of it, is it still an extension of the tenyear Economic Cycle<\/a> we were in in 2018 and 2019 well, if it werent for the pandemic, i think we would have still been in the record breaking expansion that we were in, but i think we all have to admit, the world has changed and will change permanently even after we get a vaccine and therapeutics we see what we can do with Technology Firms<\/a> laid off a lot of workers and say, hey, you know, really my productivity is nearly the same were going to have high unemployment for a long time, so the world is permanently shifted, even after this virus disappears were going to have a permanent shift. I think we may have a record boost in productivity of firms next year. As they see we can produce without all the costs. Costcutting has been fierce and unfortunately fallen as we know. As for people unemployed, they are not going to be hired back the government is going to be pushing money in to try to get them retrained into the new economy. So in many ways it could be the start, it is the start of a new expansion but its going to be a very different sort of economy Going Forward<\/a> than what we were ending up with in 2019 really good to check in with you, Jeremy Siegel<\/a>, thank you. Thank you very much for having me. Up next, playing during a pandemic well talk to nba player Blake Griffin<\/a> about the leagues restart, his new podcast and more thats ahead check out shares of lyft and cisco, both reporting results, lyft is higher, off the highs of the after hour session after some results, cisco down almost 6 at the closing bell well be right back. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. Welcome back time for cnbc update, rahel has it for us. Hi, rahel. Cnbc update at this hour. In Georgia Largest School District<\/a> facetoface classes quarantined another 300 students that brings the total to cherokee for 250 wearing a mask needs to become part of the new normal for coronavirus of thats one of the recommendations and guidelines on face covers released by American Association<\/a> of medical colleges the group says face masks should be worn outside even when briefly passing others like walking by someone on the sidewalk. The Tribune Company<\/a> is closing newsrooms of five of its newspapers including New York Daily News<\/a> and Orlando Sentine<\/a> sentinel. Newspapers continue to be printed. Spokesman said in light of the pandemic he sees, quote, no clear path to return to the office the daily news had the highest circulation of any daily paper in the country youre now up to date and ill send it back to you, sara. All right, rahel, thank you. Up next, sports in the age of covid nbas restart has been smooth sailing so far with zero confirmed positive cases were going to discuss with nba player Blake Griffin<\/a> after this break. Nba allstar Blake Griffin<\/a> making moves off the Basketball Court<\/a> with the launch of his new podcast called the pursuit of healthiness, which is produced by audible and obb sound Blake Griffin<\/a> joins us now to discuss. Blake, ive got to ask you about College Basketball<\/a> because its such an open question right now. What do you think is going to happen to the season i dont know, thats a good question probably makes sense to try to do some sort of Conference Games<\/a> only im not sure if they can do a bubble or not. It obviously worked really well for the nba. Its expensive but i think nca needs to put a plan in action. Thats probably the best bet and hopefully play the tournament as its always played. Well, if you were still at oklahoma where you went, would you play right now yeah, i think i would as long as they put certain protocols in place. As players we felt safe. I would definitely play. I would want to be playing in the bubble right now if our team was in it. The nba did a great job of putting together a really good plan, executing it, and i think the guys that are all there feel safe so if the nca can do Something Like<\/a> that, i dont see the issue. Yeah, i think the question now is can sports workouts the bubble we see that it works inside the bubble for nhl and nba and wnba but mlb not looking so good. What do you think . Do you think they have to do a bubble to do Something Like<\/a> a march madness tournament i mean, you never know. Hopefully by march things will be a little bit more normal. That might be Wishful Thinking<\/a> i just dont see it really truly working very well or as well as the bubble situation so you know, early on, early january, whenever they start Conference Games<\/a>, i think it would be smart to look at a bubble situation hopefully by the tournament you can sort of open things up a little bit more. My other question to you on College Basketball<\/a> in particular was about the pay issue, which is not a new issue but sort of front and center again because of the dangers of playing at the sport right now and the importance of it to College Finances<\/a> sort of raises the question of the inequity here andwhether these College Players<\/a> sheeb compensated. What do you think . I think so. These athletes are bringing in a lot of money for everybodys university it doesnt have to be a crazy amount when we were in college, i think several guys most guys on our team could use extra income. When youre playing a sport, you dont have the ability to go out and get a job. That is your job when youre not in class, study hall making sure players are somewhat taken care of. I realize getting a Free Education<\/a> is a huge plus in itself, but i think making sure students are able student athletes are able to live a little bit more comfortably is probably important for these student athletes. You said you like the idea of a bubble so how do you feel about not being in the bubble, blake i wonder at cnbc we talk about the business cost of all of this what, you have spches wiresponsp with red bull and jordan brand do those brands as a result of you not being able to play im not sure. As a basketball player what we all love doing is playing basketball not being able to be there is obviously not fun. We try to be i try to be a great partner to these brands and do whatever they ask of me but they have a lot of great players there as well. The exposure is there. Hopefully once things get back to normal, then well resume everything. Why are you doing a podcast about Healthy Lifestyles<\/a> and how much of the conversations about health revolve around the pandemic and how we might be doing things differently in the future i started to say ive been interesting in health my whole life i was Health Science<\/a> major in college, conversations with trainers and doctors in the nba are ones im more drawn to i really just started this so i could sit down and talk with people leading in their respective fields in health and wellness vertical and its been really eyeopening to hear peoples different perspectives. As far as the first season just came out, obviously we recorded that before the pandemic hit some of the guests in the Second Season<\/a> have hit a little more on the pandemic for the most part i just want people to sort of take something away if its one thing or two things, if its anything that helps improve their life, you know, im happy about it Blake Griffin<\/a>, thanks for joining us. Thanks for having me. Still ahead on the show, inside the battleground states new cnbc change Research Data<\/a> shedding light on where trump and biden std anin key states on the economy. Were going to break down the figures when closing bell comes right back look here, its your very own allinone Entertainment Experience<\/a> xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Lets get back to deirdre bosa who has more on the latest. So theyve recovered a little bit. That turn lower comes on comments from lift cofounder john zimmer regarding that california ruling earlier this week that could force uber and lift to treat their drivers as employees. John zimmer said, quote, they may appeal this ruling and request a further stay if efforts here are not successful, we would be forced to suspend our operations in california this comes on the analyst call that is currently underway the injunction expires on august 20th notably on the call, lyft said they may appeal the ruling that means they have not yet also, today as weve become talking about ubers ceo raising the possibility that uber would shut down entirely this means within about one week ride sharing in california could be virtually turned off. I dont need to tell you the implications of riders, drivers and their income during this challenging time back to you. But also the implications of it on the companies themselves how big of a market is california for these companies how big of a hit could they be looking at right now yes, it obviously impacts riders but this isnt exactly the heyday of ride sharing right now. Absolutely. What i can tell you is they are extremely important markets. L. A. And San Francisco<\/a> were two of ubers top five markets in the entire world that would be a major hit, but that company is more diversified. Lyft, you have to imagine they would account for even more shares the financial hits to these companies would be quite large but its notable share prices arent down all that much. A lot of this is baked in. I wonder what investors are seeing here because you just have to imagine it would be a huge hit the appeal could be granted, the stay could be extended so well see. Deirdre, thank you. Up next, the race to the 2020 president ial election is heating up as joe biden and Kamala Harris<\/a> kick off their first event together since the vp announcement. Where do the candidates stand on the key battleground states . New numbers. Flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment<\/a> objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. The countdown to the president ial election is on. Joe biden and Kamala Harris<\/a> holding their first event since yesterdays historic Vice President<\/a> announcement and pick. Reporter this is their first public appearance together, the former Vice President<\/a> saying hes going to approach this campaign with purpose and seriousness of mind. This is an historic choice for him. He told me that the pick of harris for his Vice President<\/a> will lead to a bounce in the polls as our own survey shows he is widening his lead in the battleground states after losing some momentum in recent months we surveyed likely voters in six key states and found that 48 are backing biden with 44 for trump. Biden has doubled his advantage in florida hes now at 5044, a sixpoint lead likely voters in florida say that more than any other state that the economy and the coronavirus are two of the top issues facing the country. Back over to you. Positivity rate increasing in florida today. As we wrap it up, another very strong session on wall street the s p surged 1. 4 . Didnt quite get to that record close. Still best day since early july. Technology back on top im wondering how youre thinking about the rotation and where it takes us from here and what were watching tomorrow. I think its very contingent. Its not a zero sum game you dont have to have some go down for others to go up necessarily or at least not on a oneforone dollar basis also we can just have a little bit of a pullback. Last time we got to a new alltime high after a significant drawdown, a little bit of fall to the upside once the new high was reached then you had a little bit of a giveback i dont think any of that would be surprising. There was weakness below the surface today. So its very difficult to generalize about the character of this market from day to day the complexion really changes in terms of whats leading and lagging and investor priorities. Also interesting the way the banks failed to build on their momentum yet again even though yields rose significantly in the tenyear to 0. 67 gold rallied a bit in the morning but closed down 1 , still higher for this quarter but giving up quite a lot of gains as well. Were out of time. Fast money starts now. Im melissa lee. This is fast money. Guy adami, tim seymour, Karen Finerman<\/a> well dive into the numbers. Plus, how the big battle over tiktok could come into play during the next round of trade talks with china later we are continuing our weeklong series on the cannabis craze truly blazing higher today on earnings. We start off with record high the s p 500 six points shy from","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia601902.us.archive.org\/32\/items\/CNBC_20200812_190000_Closing_Bell\/CNBC_20200812_190000_Closing_Bell.thumbs\/CNBC_20200812_190000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}