Well tell you why traders are betting on an even bigger run. Later, airlines lower as they prepare for what could be a slow september the former ceo of continue nenal airlines will be with us to explain what the new normal may mean for travel stocks kelly evans is back. Welcome. Power lunch begins right now its the s p 500 sitting close to its record high now the wild market ride has brought a resurgence of the retail trader bob and kate are standing by with more. Bob, lets start with you in these record highs we are on new high watch and for the s p as well as the nasdaq and whats brought us there, thats a very familiar pattern. We have seen it many times its essentially Technology Stocks thats with megacap stocks moving on the upside sectors, its technology thats been leading the way we see banks, energy and industrials lagging there. We had many rallies in those cyclical value names banks, the energy and the industrial names over the last few months in various occasions including about a week ago, but thats not what powered us forward. Health care also minor contribution to that we talk about those names, the big five amazon, thats not a mistake there. 46 and you could see apple, netflix, facebook, microsoft all very big contributions this is the main reason were approaching new highs. Who has better posters than that guy love the posters lets go to kate on how robinhood is raking it in because of the rise of the retail trader. Robinhoods raising 200 million from a new backer. Its a price tag increase of almost 3 billion. All of this coming just a month after the Company Closed a two part funding round the round, 600 million robinhoods is climbing the ranks now among the most valuable private u. S. Fin Tech Companies second only to strike. Funding will be used for improving robinhood core product and customer experience. Analysts telling me the fresh financing could help robinhoods accelerate its own mma plans it could help robinhood prime itself for an ipo. Back to you. Im curious we have been here before we hat the dot com days and the etrade dominating air waves and people were day trading that way. Do you think the app itself will be subject to criticisms like we heard last hour that it is designed to, you know, just turn out as many trades as possible and to some extent not truly disclose its intentions to its users. Absolutely. They have caught the attention of regular lartors last week they pulled some of the da down from the website sort of distance themselves from that association kate, how do they make money . Payment forward thats the same way they are making the brokers. Thank you very much with Retail Investors adding to the market euphoria as kate just detailed citigroup is sounding an alarm its panic euphoria model estimates a 95 chance of a downturn in the market over the next 12 months david, let me start with you is there too much euphoria around and does the zoom in platforms like robinhood tip you off to that . I wouldnt be betting big in portfolios on a notable meaningful decline without some external stimulus. Just on valuation alone, i wouldnt make that bet not have sentiments gotten too far ahead but has the market gotten too far ahead of what reasonable people would think is the growth rate of the economy were back in a risk environment. Were in pace for a record year flows. Its really huge. Bob said earlier, we got a bit of a bifercated market so far year to date, spy, the biggest etf is 23 billion in assets. Energy and banks. I think from a valuation stand point people take that into account. When you buy in index etfs, theres no manager that making sure you are buying it on dips or the right valuation at this point in time american investors are saying they want in they want in and they want in the qqq despite the fact when you point out 48 of its value is represented by facebook, microsoft, amazon, netflix and google if i put money in there, arent i just chasing the winners youre participating in this new economy. 66 of gdp is based on Small Businesses all Small Businesses have had to change we had to be embracing technology, communication, buying online. Putting our data into the cloud. All these companies are pretty much in line with that and their growth rates are exacerbated by whats going on in this economy. Nasdaq 100 embraces that david, lets go to a part of the investing world that is about as opposite as you can get from netflix and facebook and so for forts and that is gold gold has been on a run money is doing into it is it a smart place to put 5 of your portfolio if youre going to be in that area, forget about the metal and look for those companies that can have a Business Model that can leverage the higher price of gold visavis a fixed coast that makes more sense then speck speculating on the price are you suggesting buying individual names are you sugi insuggesting buyinf that invest in the minors . If you dont have the time to put into it, you go into an etf. Thanks. A new federal relief bill means recession is about to get real for the half of americans without a College Degree for those americans who cant work at home Monetary Policy is pushed stocks near all time highs. Federal aid has cushioned the blow of the vegs for the unemployed but the relief has run out for low and moderate income Americans Congress cant agree on a new packa package. Executive orders issued by President Trump felt short providing meaningful support to the economy. The lack of funding for Small Businesses, state and local governments and Necessary Health measures will minimize chances of a sustained economic rebound. You look at employment for americans with bachelors degree or higher, unemployment is just 6. 7 its about 15 for those with less than a High School Degree since the 600 per week federal pandemic Unemployment Compensation expired, actual Unemployment Insurance has fallen by 15 billion per week. Fed officials have expressed concern. The economy will suffer without more fiscal aid. Evictions, bankruptcys higher unploim at a more muted background could be the result tyler. If you look at stock market its continued this v shape rebound all the way through this Unemployment Benefits cliff even as expectations of a passing and a package are falling like you saw on the goldman note. I wonder if they are not telling us the fed is doing enough even though the fed says we need more on the fiscal side, i wonder if the markets is no. If fed has done enough the fed may have done enough for the stock market, kelly, i dont know that anybody at the fed or any place else thinks the fiscal side has done enough for the rest of the population the fed has provided a lot of li liquidity but it doesnt pay your rent if you dont have a big portfolio. I totally get that. That liquidity, the whole point is it makes its way into the real economy it starts in markets for sure. The whole point is it growth is it works its way. In an vierm with a lot of access capacity you have right now. Higher stock prices should lead to more investment in that sense a higher stock market in an vieenvironment of w investment doesnt help ordinary americans in that regard overtime, yes, it will eventually but right now you have this end of benefits. Thank you, sir. Ty still ahead, General Motors jumping this day as Deutsche Bank says its electric vehicle could send shares soaring. August demand lags and they gear up for historically sluggish september. Former continue nenal ceo tells us how bad he thinks it would get. More power hundred mp aftlunch s quick break. Hey you, yeah you. I opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. I just discovered sofi, and im an investor with a diversified portfolio. Who am i . i refinanced my Student Loans with sofi because of their low interest rates. Thanks sofi for helping us get our money right. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Demand did not rebound in august as the airlines expected. Thats at the height of vacation season when people get back to work and back to school, such as school will be in september, things could get even worse phil joins us with more details. September is not usually a busy month its not awful American Airlines out with a trim of its schedule preparing for the fact fewer people are expected to fly next month trimming it by 11 compared to august the september schedule will be down 59 compared to the same month last year. International travel down 77 compared to september of last year for American Airlines, this is all about being as prudent as possible with the schedule, understanding that at this point they will have further trim the schedule in october. Already its clear when you talk to executives they are planning on eliminating service to some smaller cities come october 1st unless theres another cares act which would man date that services not eliminated to certain cities at the end of the day this is about getting people back on board and the snap back in recovery is not there. When you look at the passenger levels now its down anywhere between 67 and 73 yesterday, best day since march 17th down still 67 compared to the same time last year. Take a look at the Airline Stocks were talking about delta, southwest, united. The airline job guarantees the money they were allocated back in march runs out on september 30th unless theres another 25 billion allocated, as part of a stimulus package, if and when its ever passed, then youll see the layoffs kick in on october 1st. Youre looking at potentially up to 75,000, if not more, employees at the airlines who will be let go which is a dounauntsing procs stay right there gordon, what options, what good options do the Airlines Face they are just facing reality, kelly and adjusting as quick as we can were looking at all the variable costs and they have been scrambling because of fixed cost basis are so high reduce this every month and i think september will be no change big problem is, things change on them where countries wont allow them to come in or change or quarantine or quarantine their crew members the international is a very difficult market for them and as fill mentioned doe messiah eed t has taken a hit although its down 60 something percent. Its not a great time. Significant, theres awful delays at the passport office. The expediting offices are closed it seems Congress Want to help these sectors. I dont think theres a lot of optimism it will happen the fact of the matter is, i dont think its going to change any time soon. If theres any good news in this entire situation, there are relatively fewer people. There are fewer people who are flying internationally right now. A lot of that is because of restrictions you cant fly over to most countries in europe and a number of other countries have restrictions on americans flying into them. Gordon, im asking because im curious and i dont know when airlines cut schedules, lets say they will not fly to greenville, or reno or wichita how much pressure can individual senators or Congress People put on them to force them to maintain service in those cities whats the game behind the game . They really kbts because they are fighting survival. This isnt for fun theyre not doing it for any reason than negative cash flow its about preserving cash burn every day is tremendous. They only have so many reserves and what the government might lend them. They have to do what they have to do. I think their employees unit and they are being let go. Its just conserving cash. Final question. Playing off of what gordon had to say this is why many believe the cares act extension will go through. They are saying give them another 25 billion to ensure the jobs are in place. That would ensure that no service is cut to some of those smaller markets. They are viable in terms ill let gordon answer as well are these guys going to go bankrupt tomorrow . No if they dont have the government aid they will getgo 75,000 people. The question becomes do you want to keep the 75,000 employed then you give them the 25 billion if youre in washington otherwise, you let them cut. They will continue to bring down their cash burn. Gordon, what do you think . They may subsidize the employment again they really have to have a viability marketplace. Got a lot of fixed costs airplanes have to be paid for whether you fly them or not. Its tremendous. If we extend it, if they goents get government aid for their balance sheet, their cash, theyre not beginning to be there. Thank you both. We appreciate it coming up, two big earnings this week. Home depot and lowes, both stocks have benefitted from the coronavirus shutdown people are at home and wondering what should i do the stocks at all time highs could this be their best quarter ever plus, apple at an all time high with its market cap near inches from 2 trillion doubling in less than a year. Should you chase the rally in apple. The traders will weigh in. Much more power lunch coming rit ghupan, did you know geico is now offering an extra 15 credit on car and motorcycle policies . Thats great thats 15 on top of what geico could already save you. So what are you waiting for . John stamos to knit you a scarf . All finished, jean. Enjoy thank you. I give. The stitch work is impeccable. Its just a double fleck pattern with a reverse garter stitch. No big deal. Is your hair this soft . Softer. Geico. Save an extra 15 when you switch by october 7th. Geico. Its totally not the same without you. Were finally back and cant wait until you are too. Universal orlando resort. Buy now and get two days free at the parks. Restrictions apply. Apple racing to a 2 trillion dollar valuation after a 60 run this year and hitting a record high today is the stock too hot to handle. Lets bring in a trading nation team and mark teper of strategic well partners. The largest u. S. Mention fund in the country disclosing it did sell apple you have a position in the stock. What are you doing with it right now . Apple is a must own you have to have it in your portfolio because its nearly 7 of the s p 500 if you dont own it, you run the risk of underperforming the benchmark. The question is how to manage this risk. For us and our clients we have been trimming the position as it continues to go up are we leaving some money on the table . It depends hon you loon how yout it apple is Great Company the issue is all of the returns over the course of the last 18 months have come from multiple expansion. 18 months ago we were at about an 11 on the forward pe. Now were at 30. 30 times look, the pandemic has boosted ipad and mac sales 5g roll out around the corner. Theres a lot of positive catalyst here. I think its important to trim your position so its not a ridiculous overweight. Will apple take us there . This is third leg of its break out above its previous all time highs theres a bold flag after its post earnings run. Thats over the last week and a half has created a new fresh break out. What im looking at in the near term if youre trading this is about 478 and 499 are you two upside targets if youre trading this, you look at a close below 452 and you have to start managing your risk you dont want to be chased out if this thing start falling. Bill and mark, thanks for joining us today more more trading nation follow us on twitter. Thank you. Ahead on power lunch, working and schooling at home has sparked a renovation boom across the country. Well look at two Home Improvement stocks hitting two all time highs well explain how. Despite a rough year, Deutsche Bank sees an e electric run ahead for gm all this and more when power lunch returns. Welcome barck post mamaster general has agreeo testify a week from today before a house panel. This as Congressional Democrats pressure the postal board of governors to reverse changes lawmakers think are designed to sabotage mail service. President trump tweeted democrats quote dont have a clue, end quote. He says the goal is to make the Postal Service great again while also cutting costs President Trump has arrived in minneapolis for a Campaign Event in that state. He said he might visit nearby iowa to see damage from the big wind storm but on the flight an official told reporters the logistics could not be worked out. In the czech republic, a zoo is letting visitors see this new guy. A pip pohippos are generally ma available after a few months old. Maybe they know we need a Little Something to make us smile, ty, right. Id like to sort of sit there in a pond like that baby hippo on some of these hot days. Im feel like a hippo. Kind of lay there. Thaieyve got a good life. Keep my head above water. Just barely thanks. Lets tell you about the markets right now. As the dow takes a breather today. All 53 points but the s p 500 is right at its closing high. I think its maybe 33. 86 maybe be closing high. Its within a nip of getting that record. Nasdaq up about 1 or 119 points and the russell 2000 up a half a percent. Eric has the news from the cnbc commodity desk thats right. Oil is rising for the day with wti up more than 2 and brent up over 1 . Wti has gained 6 so far this month. Its still down 30 in 2020. Hopes for demand recovery are helping prices today along with strong compliance on production cuts from opec and its allies. The group reached 95 compliance in july. Thats according to reuters. The group notes the Oil Market Remains Fragile and there could be risk if the coronavirus situation worsens. Back to you. Thank you very much. Many americans stuck at