Transcripts For CNBC Closing Bell 20240712

Drop coming up on todays show, were taking a look at how a number of Different Industries are getting back to work in america. Well talk hotels and travel with the ceo of best western plus, walter rob, the former coceo of whole foods will weigh in on grocery trends and well talk about the state of the consumer lets kick things off with a Broader Market a choppy day to kick off the trading week pretty positive. Right near the session highs as we stand on track for a record close for the nasdaq composite actually kind of a quiet levitation out there the average stock not doing much of anything. Volumes are low. But v but the Growth Stocks are powering higher. You see a one year of the s p 500. Its about a couple weeks ago that the enthusiasm for that reopening really seemed to crest for a little while since then, the old Growth Stocks, if you look at the top of the dow right now, its nike, apple, walmart, visa, microsoft. These are the days when the observation that Great Companies remain great is enough to get the stock prices up. Its a little bit curious. We basically are going side ways for three weeks but no net damage to any of this attention on the increasing covid19 case counts and things like that. At least not yet take a look at this relationship this is dated from the low on march 23rd when the rebound rally began. Its the entertainment and leisure etf against the nasdaq 100. Of course, that is dominated by the mega cap Growth Stocks what you see here is you see this huge burst from mid may to early june in that reopening this is really the core of the reopening trade. Restaurants, hotels and things like that. And then it backs off from here and the qqq steadily overtakes it so this is a market that is kind of had this interplay between the sort of familiar bond like big Growth Stocks and, of course, that reopening trade and right now theyre not really working against each other theyre both going at least over the longer term in the right direction. But for now, it is falling back on the cushion of the big familiar Growth Stocks guys i guess if we snapshoted the u. S. Versus the rest of the world today, we have a clear indication of who has faang and mi microsoft and who doesnt. You got a lot of traction about how you dont think were necessarily in a bubble. That said, the conclusion of the article did suggest that we could have some gut checks along the way from here. It wasnt necessarily a bullish article. Just saying that the implosion that a bubble might suggest is not necessarily immeninent. The nuance between a market that is already priced in a good deal of recovery it is richly valued or aggressively valued is not the same as some kind of a mania, a speculative bubble that is only rising because of some kind of collective optimism that got out of control really, you have an absence of general optimism right now in terms of money flowing into stocks, funds, all the other hallmarks you look for if you were talking about a bubble. So i think you have to distinguish between a market that may be is priced for modest returns Going Forward and one that is kind of a house of cards that would be, you know, in the bubble category. Mike, thank you very much well see you again later. Apple hosting the annual Developers Conference today revealing a slew of updated software during the event including the reveal of ios 14, ip ipad ios 14 and digital car keys a major transition for apples mac computers. The mac had three major transitions in the history the move to power pc, the transition to mac os 10 and the move to intel. And now its time for a huge leap forward for the mac because today is the day were you announcing the ma drchlt c s transitioning to our own app apple silicon. Joining us is the director of research at webb bush securities and lauren good. Very good afternoon you to both. Lauren, ill start with you on that particular news item coming from the conference in terms of changing which chips theyre using. Were we expecting this were we expecting it specifically to apples own chips . Hi. Thanks for having me on. This is reported for a while now. I dont think came as a surprise to anybody whos been following apple for a while. And we see this generally as a move that apple is making to have more control over the full stack of its technology. Of course, apple has already been designing their own products for iphone and apple watch for years at this point. It has some experience in designing chips that are supposedly, you know, based on this low consumption, low power consumption, highly efficient model. And now theyre bringing them to the mac. Its going to be a slow process, i think. But, no, i wouldnt say this comes as any major surprise today. We see that in intel stock which is up 1 not really suffering as a result it was already out there apple stock is doing very well today. Hitting a new high is that about the environment right now . Are you oalso seeing gains for nasdaq stocks or something specifically coming out here on apple . That is partially it. Theyve been a safety blanket stock in a category 5 storm. I think it comes down to the Services Business that have gotten through this. We think its a 500, 600 billion in terms of valuation. But now this is all the drum roll to the iphone 12, 5g, a super cycle that takes us to a 2 trillion market cap i believe there is specific drivers here in apple while youre seeing the bulls continue to sort of ignite this name into what i believe is going to be a very strong fall into 2021 as well you need to see the 5g super cycle as you call it to get to that point yeah. To some extent, some of the concerns over the last few months, serbly the supply chain was 5g. Especially in the u. S. Now all of our checks show that is right on schedule i think theyre going to launch the announcement in september. But 5g comes just to the numbers. 350 million right now. 950 million iphones have not upgraded their phones in 3 1 2 years. A passive pentup demand. Thats why i think in my opinion the 5g component takes it to a 400 plus stock. Lauren, is regulation a head wind here to dans bullish thesis that he laid out on the products and services cycle given the well publicized fight with hay over the app store, the fact that European Commission slooking into the app store and antitrust concerns investors shouldnt be worried about it, should they . Thats a great question one of the things that apple didnt really talk about at all today, despite the fact that wwdc is an event about apps and app makers, it didnt talk about the App Store Policies and the Fee Structure that apple currently has in place for developers is something that is certainly been the hot top nick recent days as you said with hay and the way that it was, you know, the app was not approved because of iaps and how the European Commission is now looking into apple for apple pay and the way they handle the app store. I would say at this point the i mean this case has been building against apple for a while now. Some of the companies that are in on this complaint first filed the complaints over a year ago last spring. So its not something that should be ignored at this point. I do think its in the very early stages and it certainly nothing that apple felt compelled to address today at wwdc if that tells you anything your price target at 375 is clearly not that far ahead of where the share price rallied to how concerned are you that in the current level to april sl trading at is significant sort of safe haven trade aspects given what the market has been through this year . And if things start improving and people start spending again, including on apple products, theyll be a rotation out of the safety that apple provided yeah. Its a he great point. I think thats been some of the things investors are seeing over the last month or two in terms of the stock but bart of the bold case for 25, you know, i think potentially higher when you look at next few years, its really the pent up demand on the upgrade cycle. You combine that with what the services have shown here and china, youll cases are starting to see a nice spike back for apple that is something cook will show going into the month of june i think you put all that together right here, there is definitely risk. And in terms of the regulatory but right now i think theyre starting into a goldilocks scenario going into the next year especially after they navigated this covid19 storm. Certainly investors agree with you today the stock up 2. 6 at the high thank you both for joining us. With the dow up 173, were getting breaking news from washington on work visas yeah, sara, thats right. The president is going to sign an executive order the white house says as soon as today regarding a whole category of visas for Foreign Workers coming into the United States theyre going to press pause on a lot of the visas for Foreign Workers coming into the United States because of the high Unemployment Rate in the United States they say they want to see an America First economic recovery that starts with americans sopt to do that, theyre going to pause until december 31st a whole variety of visas including h 1 b, h 4, h 2 visas, excluding people in Food Industries and also paused until the end of the year, j visas and l visas. The so a lot of different categories of workers and families will be impacted by this including by the way nannies that Senior Administration official says that is a job category on this list that is going to be paused between now and the end of the year theyre also envisioning here a change in the way the h 1 b program works. The theyre going to prioritize the highest paid workers instead of a lottery, dole those out to the highest paid workers in order of salary the most in demand workers have the highest salaries therefore, those people will be once that program is restarted eligible for those h 1 b visas so what theyre saying here is about 525,000 people will be impacted by this decision to pause the visas. Thats how many people would be impacted, would be expected to take advantage of the visa programs between now and the end of the year. I asked a Senior Administration official if they would brief the Business Community on this the official said no those folks are learning about this along with everybody else of course, there have been some reports about this earlier we mentioned it and some of the vet categories on friday but now the add manition sayimin saying he is going to sign the executive order today. Back to you. Thats a lot of people affected here. If theyre estimate ing 500,000 people is this seen as a political move what theyre saying is the administration wants the economic recovery as it begins and people begin to be rehired they want that to be preserved for americans. They dont want Foreign Workers coming in and taking the jobs. They Want Companies to be hiring americans. And because of the sky high unemployment that weve seen right now, they say at the white house that they want all of those people to start to be hired first before you see Foreign Workers coming in and taking jobs. So nannies, Software Engineers would presumably be impacted by these type of visas. I presume that renewals of those types of visas are separate you wouldnt be marched out of the country just because you had one of those types of visas. Im not speaking for myself. Fortunately you didnt read out many i visa type there im lucky. But my point being is i flu presume youre safe youre stuck with me. I presume this is only fresh jobs from people who havent currently moved into the u. S. As opposed to extensions of existing visas of the types you read out thats right. And i got to also emphasize here that all we have on this so far is a call, Conference Call with a Senior Administration official and reporters which just wrapped up a couple minutes ago. We havent seen anything in writing yet from the administration on this reporters on the call asked if the president has already signed this executive order, if it is something hes going to do today. We didnt get ab answer to that. The were in the preliminary stages of reporting this out so well bring you more detail as we get all of that in writing from the white house and the text of the executive order when they make that public. That will give us a lot more clarity on who is affected they do tell us that 525,000 people in total expected to be impacted by this until the end of the year and then presumably the visa process will kick in again this is being billed as a temporary pause now. Thank you after the break, the u. S. Just saw the worst daily coronavirus case totals since early may. Hot spots develop across the southwest and midwest. Were going to talk to one of new yorks doctors, dr. Craig spence better his advice for the states facing the most serious outbreaks. Hes been through it youre watching closing bell. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. Welcome back 42 minutes left in the session heres a quick check of the markets. Off the session highs. Certainly well off the lows. 200 or so on the dow we were up 89 as we stand. Briefly we were up about 150 points the nasdaq composite at this level still just about on track for a record all time closing high 10,020 is the level which would achieve that lets have a look at individual market movers. Shares of gap getting a boost on the back of a double upgrade at wells fargo. They cited the real estate portfolio valued at just under 2 billion wells fargo said the rest of wall street is not giving gap any credit for athleta and square shares jumping after barclays raised the price target to a street high. The firm says the resill generalcy of squares merchant base may be stronger than investors think saying that Third Party Data showed improvement in sales square is up 6. 9 today. Paypal is up sharply as well yeah, along with all of tech. We watch for record close on the nasdaq new york entering phase two of reopening today. Week over week, cases continue to fall in new york. Now down 12 but other areas of the country are seeing spikes. In idaho, new cases are up 133 week over week and doubling overall since reopening back on may 1st. Oklahoma also seeing a big pop week over week of 111 overall cases have increased nearly 250 since loosening restrictions on april 24th joining us no you is dr. Craig spencer, director of Global Health and emergency medicine at Colombia University Medical Center dr. Spencer, good to have you here again phase two reopening for new york means people can sit outside and eat. They can go to barbershops what are you expecting in the e. R. Are you bracing for a surge on the back of reopening . Weve been brace ford quite some time. Our data, really, our patient volume has gone down significantly in the past few wee weeks. Were nowhere near where we were in march and april were starting to seat regular patients come back which is really nice. And its actually, you know, not so common that were seeing covid19 patients now in the Emergency Department were seeing a lot more of the chest pains. I worked overnight last night. We had a lot of our bread and butter work. So were coming back to some type of normal in our Emergency Department which is great. But as you pointed out, had things are different across the country. Thats what worries me when i left work this morning, i got on the train and i notice there were dozens of people on the subway all of them were Wearing Masks i this i that people here remember how bad it was really just, you know, a month, two months ago we dont want to go through that again and were hoping that everyone around the country learns lessons that we unfortunately had to learn the hard way we certainly do, dr. Spencer. Also, are we better prepared if there were a second spike and within that question, has your hospital got ahold of the steroid yet and what is your take on it so just to be clear, were still in the first spike throughout the country here in new york city, weve gone up and come down quite significantly. We are prepared. We have the experience of taking care of coronavirus pashstients we learned the hard way. In ermz it terms of treatments,o have that. That is one of the most common medication thats we prescribe for a whole host of things n terms of treatment for covid19, you know this was another example of science by press release. Were still waiting for the data on dexamethozone to see fif it supports the strong numbers. Again, we need to see the actual data before i think we all get really onboard and feel 100 confident that this is going to be one of those miracle drugs that weve been looking for. Are you exchanging information with your fellow e. R. Doctors in texas or florida or other places seeing increased hospitalizations yeah. Were a small community. Even though there are thousands of us, we move all around the country. So i have friends everywhere in the United States. And really for months weve been on text chains with dozens of doctors all throughout the country, people in houston, people in seattle. And i think that they were learning from us initially and now theyre learning a lot from us coming to ask the questions, what do you do with this patient . What are you seeing with this data its been a really wonderful collaborative way for us to keep in touch in addition to sending Research Papers and all of the other things that we doctors need to keep up on just sending a message to groups saying im seeing this is this something you saw . Its been really helpful overall, i feel like youre being quite constructive, quite optimistic are you hopeful that the worst very much is behind us for the entire country because as youre saying, you can share what you have learned here in new york Going Forward. Absolutely not. Right now the United States makes up 20 of new cases of coronavirus all over the world, despite being in the population. We had a 15 increase in the number of cases here in the u. S. And were seeing testing and daily positive rates that are more akin to what we were seeing at the end of april as opposed to just a few weeks ago. Im really concerned a lot of the big numbers were in big city like in detroit, chicago, new york city those epidemics have abated. What were seeing is multiple hot spots all throughout the country in florida, texas, and in arizona really concerning increases in hospitalizations, increasing in test positive rate meaning there is still a lot of Community Spread were not picking up on. Im quite concerned that we had this peak, that we started to trend down and now were going right back up again. Again, we thought that summer was going to be relativelier spread people would be outside. Most of the viruses decrease in the summer were going up which sets the stage for a really bad fall and winter if we dont get this under control soon just want to get your reaction, dr. Spencer, to something that the president said over the weekend. Speaking in his rally in tuls yashgs he wtulsa, he is talking about the rising numbers of cases that means were testing more which is good for the United States and then, you know, said he told his people to slow testing down, please i was curious what your reaction was to seeing that headline as a doctor who worked on the front lines and saw how hard it was to deal with this disease because of lack of testing my reaction was pure disgust. We were calling for increased testing for such a long time you remember early march the president was at the cdc and promised everyone could get a beautiful test they wanted one if they wanted one we still dont have enough tests. And were still not doing enough testing. That is absolutely for certain what bothers me even more is that directly after that we were told it was just a joke. That clearly that is not what the president meant. And then today the president again made the same assertion that more testing is problematic than a doubleedged sword. We need more testing for every person that has covid19 and not tested and doesnt have the diagnosis. There are more likely to be in their community. Theyre more likely to spread this disease and there is a reason why the United States failed compared to other countries in terms of our ability to manage this crisis and this is largely because our testing at the beginning was a debacle. We didnt increase it fast enough we still dont have enough and clearly unfortunately it sounds like this administration doesnt really, really understand the importance of having a robust testing system in place to control this virus dr. Spencer, thank you. Thank you double thank you. Dr. Spencer, thanks. We have got 34 minutes left of the session. Slipping a little bit as we approach the close but still positive for all four of the major indices led by the nasdaq which is just below what would be record all time close level after the break, peloton jumping today. New street high target on the stock. Well discuss the rise of in home fitness and what reopening means for that trend later on closing bell. Yeah yyeah yeah hey, hey shares of peloton popping adding to big gains on the year. They raise the price target on the stock to a street high 62 per share. Its a 52 at the moment were taking a look at the rise of in home fitness amid the pandemic and what the reopening of gyms could mean for that trend. Diana . Industry sales are soaring for streaming workouts, home equipment, even backyard tiny yoga studios and while some of this and sounds are beginning to some of the studios are beginning to open, the change may be permanent. Beach body is a leader in home fitness for 21 years but has seen unprecedented growth in just the last few months people sweat it out at home. From 11 million streamed workouts in january to more than 20 million in may, the Subscriber Base jumped by 600,000. On demand workout spending overall jumped 125 since the pandemic hit while spending was down 72 at traditional gyms according to analysts. And spending on Home Fitness Equipment is soaring i climb health and fitness which owns nordic track and pro form reported seeing four times the normal sales in april. Peloton reported sales up 66 annually for its quarter ending in it april, and it may not end when the gyms reopen the beauty of having competitors is this niche of i dont know if you can get a good workout at home. Now people, millions of people have experienced it and they see just how good the home workouts have become. Most boutique Fitness Companies took the brand online as well. Barrys boot camp, core power yoga and that will likely continue well beyond their reopening. Back to you. I mean there is certainly now a plethora of supply when it comes to different apps or web sites for classes. Peloton seized on that moment. I just wonder whether the gains is more akin to growing penetration in a smaller Addressable Market versus the whole market of fitness people now being addressable to them. Theyre pretty high price points still. Its going to be a big hurdle Going Forward. They are high price point when it comes to the actual equipment, whether it is the treadmill or the bike. But really its the streaming content that theyre seeing the biggest growth in right now. And thats not nearly as expensive. Thats what they expect to continue to sell well beyond when gyms start to reopen. Thats what some of the other Fitness Companies are also banking on is getting that streaming subscription and having people continue to reup even when they do go back to the gym. Diana olick, thank you. Im just happy to get a walk in every day. Time to get a cnbc update. Hi, sara. And here is your cnbc update at this hour. Lets start in atlanta the public viewing of Rayshard Brooks body has begun rhode island is taking providence plantations out of the name at least on some documents governor aproferriproving the me moments ago. It is part of broader efforts to reduce systemic racism it would require a constitutional amendment and she says a referendum starting that process, well that, should be on the ballot this november and finally, joel shoemaker died he is known for st. Elmos fire which brought the brat pack to the silver screen, he directed lost boys and the movie version of phantom of the opera. He was 80 years old. And that is our cnbc update for this hour. Sara, back to you. Thank you see you next hour. Still ahead, from pantry loading to an ecommerce surge there are been a number of opportunities for the grocery industry were going to talk to the former ceo of whole foods about winners and losers amid the challenges take a look at bonds some muted moves in the treasury market were seeing the ten year currently yielding around. 7 . Yields mostly higher which goes along with the higher stocks out of bonds into stocks better mood. Really a Technology Story though the nasdaq still tracking for a record close will well keep an eye on it closing bell will be right back you cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. 24 minutes left of trade here is where we stand the dow up is 94 points. Certainly well off the lows of the session. Big cap names like nike, microsoft, apple all leading the charge today s p 500 up. 4 nasdaq tracking for a record close. The level to watch there is 10,020 were above there right now. If we close around these levels, it will be a new record. The russell 2000 up. 6 . Crude oil closed above 40. First time since early march after the break, change at the exchange were going to speak with the vice chairman of the New York Stock Exchange about a new proposal that it says is the next step in the evolution of the directlisting offering well talk about that coming up. At leaf blowers. 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 free today. This moment right now. This is our commencement. No, well not get a diploma or a degree of any kind. But we are entering a new chapter in our lives. Our confidence is shaken; our hearts cracked. The kind of a crack that comes from the loss of a job; from life plans falling apart. We didnt ask for it. But we are rising to meet it. And how far weve come isnt even close to how far we can go. We just have to remember how patient we were. How strong we can be. how strong you can be. and remember this; theres a crack in everything for a reason. How else can the light get in . Tomorrow starts today. Welcome back the New York Stock Exchange is aamending the sec file to let them execute direct listings with a Capital Raise joining us is the Vice President chairman john, good to see you. Good to see the Stock Exchange board behind you as well great to be back on home field. What is the latest amendment that youre making to this process which is kind of on going for a while now. Why did the sec kind of keep rejecting the precise details of what you submitted today was a meaningful step forward in providing a new opportunity for companies to come to market as you know, for over three years we were working on the direct listing and following spotify and successful transactions, there is a Strong Demand from the marketplace. Market participants to see if we can take the direct listing and add a Capital Raising component to it. At the tail end of last year, we filed with the sec and working with a lot of the stake holders to really fine tune what a direct listing with the Capital Raise would look like. We submitted that to the sec today. And were excited to were excited for the advance. Whats the difference, john buying into a direct listing versus a normal ipo . Really good question. A traditional ipo, a company goes out and markets the shares to investors and prices those the night before but what you see behind me in the floor of the New York Stock Exchange is really the opening of trading secondary trading for the company. In a direct listing, those shares when the Company Sells them are priced off the opening trade on the New York Stock Exchange so for an investor, can you argue this could be a more efficient way of pricing an ipo for a company its more efficient. And its another option for companies considering the Capital Markets. So this precedes as youre hoping it will, john, will investment banks have a reason to worry i dont think so. They played role in ipo and in direct listings. And they continue to play a role in the transactions. How is the ipo pipeline, john weve seen some new names. Actually coming to market. We know youre working on albertsons. How different is it right now versus where we would normally be if we werent in a pandemic and recession and crisis in. There is a strong pipeline of companies coming to market there is the old adage that investors like Quality Companies allow them to come public in any pashgt plac marketplace. Were continuing to see a robust pipeline through the election. And it had started off as just being special Purpose Acquisition Companies followed by Health Care Companies but were really seeing more sectors look to tap into the equity markets in the second half of this year. John, give us an update of the state of play there on the floor of the exchange. P im certainly missing being there. But you back up to full speed now other than the cnbc presence, of course . Well, weve been very focused on bringing the Building Back online we shifted to purely electronic trading back in march. And we have been working cloetscloetsely with federal, state, and local officials and put in place a thoughtful plan for reopening. So we had phase one just after memorial day phase two kicked off last week we brought more personnel into the building and continue to monitor events and look forward to bringing people back and being back at 100 john, thanks for joining us the our very best from the closing bell team to everyone at the exchange. After the break, Virgin Galactic takes off and brained new note on tesla rival nikola hits the tape those stories and more when we take you inside the market zone. You can watch or listen to us live on the go on the cnbc app closing bell back in a couple minutes. Where will you go first . 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[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. 14 minutes left in the trading day. Were now in the closing bell market zone, commercial free action going into the close. Our Senior Market commentator mike santoli here to break down the crucial moments and we have Jonathan Golub on the phone as well jonathan, i believe youve been cautious and skeptical of this rally. Expected a bounce off the lows but not quite to this extent now that weve surged so much so fast, what do you do well, first of all, the most important question is if its going to retest the lows and are the valuations which are really high, are they justified and i think that were going to at the very least hold on to the gau gains that weve had if you look at the bankruptcy filings and other stress in the system, the actions by the government have been far more successful than anything that i can imagine. I do think, though, with market trading at a 22 multiple which is kind of where it was towards the peak of the internet bubble that upside is not going to be anywhere near what its been but i dont see it retracing when do we need to start to see the economy kick back into 2019s levels for that view to hold, jonathan so ill tell you what we think is going to happen its probably going to take a couple years before we get the gdp back to where we were and from a corporate profit perspective, we think its going to take until the end of 2022. There is a number of things that we think are going to make it really difficult to get back and peak operation one is that its going to be hard for us to fly, number two, cities like new york where people need to get on a train, its going to be very hard to do that tons of surveys now, companies are asking employees do you want to come back and a lot of people in the cities that need to commute in are saying im cool staying at home. And finally, we have Something Like 20 or 30 million americans lost their jobs. In the next year well get more than half of those back. But then its going to get harder to put every last one of the people back in a job and that means that, yes, the bounce off the bottom is going to look brilliant. Its going to be hard to get back to the peak levels we snaw in 2019. Mike, we heard this a number of times that is the cautious case for expecting the v to go up how do you refute it what is the bull case that they keep stocks o fleet here from the highs continuing to hold them and move up i wouldnt say that its refuting that case to offer the bull argument. It basically is saying equities can hold Something Like these valuations or somewhat elevated valuations given Everything Else thats going on. Given the concentration within the index in these very large Growth Stocks. And the fact that you have, you know, Investment Grade Corporate Bond yields 259 aat 2 . And the market is often willing to just look to the rebound and kind of look across the valley even if the absolute level of activity is not going to be back where it was we heard very similar things in 2009 and 10 its true. The economy did not operate anything like kind of full strength for a few years there but it was trgoing in the right direction and absent any accidents along the way, it usually can find a way forward were up. 5 on the s p 500 ten minutes left shares of virgin galactig getting a boost after a new agreement with nasa. We have that story thats right. Its up about 14, almost 15 after the Space Tourism announced a deal with Johnson Space center to develop a new orbital recruitment and Training Program. So basically what this means, they will be the middleman to identify train private astronaut and confirm all the resources. This is a process that is likely to include rides to the edge of space using the companys own suborbital spacecraft its not developing an orbital vehicle of its own rather, it is going to be working with government and other companies though it has not actually announced which ones yet much that said, given spacexs successful launch to the iss last month for nasa and boeing working towards oint service to the iss 2, dont be surprised if those are the names that are poised for a partnership as this Training Program rolls out guys morgan, thank you very much for that jonathan, when you see stories like this futuristic stories as it were, does it entice you into those types of stocks or you are concerned about the valuations no. Listen, there is always going to be new and exciting technologies there obviously tend to be more speculative in nature. But, i mean, i think that where youre going to ened up seeing your upside is probably stuff which is far closer to earth which is consumers with a ton of money in their pockets and the opportunity to spend so i like tech longer term i think some of the stories are exciting but in the near term, i dont think that is necessarily the place id be putting my incremental dollar tes rival nikola getting initiated at neutral at j. P. Morgan the firm says nikola is poised to disrupt the transportation industry, they think theyre valued it is up 100 . It went public early june. Its up 5. 25 . How do you value a company like this there are some estimates out there in terms of the companys making the case that it can get toward 10 billion in revenue based on, you know, some early orders and the total size of the market that it is addressing but even this j. P. Morgan note which is favorable towards the story is saying maybe a billion and a half or 2 billion in cash flow in 2027 this is a Company Valued at 25 billion. So market is saying is putting a pin in any company that is playing this, you know, sure to be growing field im not even sure you want to call it a tesla competitor i think its an adjacent company that is attacking the same general market of post internal combustion vehicles. Its been given a lot of credit that it has yet to show. American airlines planning to seek more than 3 billion in new financing. Phil lebeau has that story thats the reason why shares of american have been under pressure all day long. Down around 7 we move into the final bell. What youre seeing here is an airline that is trying to come up with as much cash as possible to get it through not just the next nine or 12 months but really as far into the next 18 or 24 months as possible theyre going to be offering debt convertible notes as part of a 3. 5 billion offering heres where american stands in terms of liquidity 11 billion is the projection for the end of june. The daily cash burn, 40 million a day. Total debt, 34 billion at the end of the First Quarter though some are saying right now its probably up closer to 38 billion. To take a look at shares of american, delta, southwest and united, american really feeling the biggest push lower today but this is a case where all of the airlines will continue to raise cash, maybe not every single airline, some like southwest are in good shape right now. Were going to see more of these types of debt raises and Capital Raises coming over the next several weeks or months. Phil, thank you very much for that jonathan, as for the various year to date underperforming sectors, where do airlines rank for you as part of as attractive viventme investments. I dont have a specific view on airlines. Ill tell you the story were hearing is so important. The ability for Capital Markets to fund these businesses that have really been beaten up is unbelievable if i were a company that has the opportunity raising, again, extending that window out 12, 18, 24 months is the smartest thing they can do and part of the reason why many of the companies bounced as hard as they have if the market believes that they can get through this crisis, okay, then to the other side then theyre much, much better positioned and thats what youre seeing. So are you saying that stocks like these and i know youre not putting out a view on the airlines, but as long as Even Companies that are in eye of the storm like cruises or airlines, can raise money in the credit market, as long as the fed is there then the stocks can go up. Is that what youre saying yeah. I think thats exactly what is happening, sara. If you look at bankruptcies right now, you would think in a crisis like the one weve had and shut down the economy for three months that bankruptcy was be going through the roof. That is not happening at all i mean, you know, youre seeing a normal pace. But you know, the government has done a brilliant job of putting money in the hands of Small Business and opening credit markets for larger businesses. And these firms that are having a really hard time now are doing exactly what they should be doing which is to raise the capital whether it is equity or debt and when its available to them so that if, you know, if this window were to close and i dont think it will, but if it did, that they would have their financing locked down through the whole remainder of the crisis if you can withstand the down side in the worst crisis ever for these companies and you come out and able to make it through, then do you deserve to get a higher stock price and thats what youre seeing in the names. It is justified. It doesnt mean that theyre not going to be a bit wounded and theyre not going to have to hit the earnings and come out with a boat load of debt on the other side but they will survive it in a way that without the Government Intervention they wouldnt have. Right as long as demand comes back at some point we have breaking news here on the movie industry julia has the details for us another studio bringing its movie that was intended for theaters direct to consumer via come cbs announcing an exclusive digital release for the upcoming sponge bob movie which is called the sponge bob movie sponge on the run this this was originally slated for release may 22nd and then postponed. The company just said this fill from many pair amount pictures will debut with the premium video on demand window followed then by exclusive streaming on cbs all access in early 2021 as partst of the rebranding of tht Subscription Service this follows disney and universal tailing their films direct to consumers. Business any with disney plus Subscription Service and universal taking videos with the video on demand model. So definitely the challenges putting pressure on theaters which, of course, have been closed for months. You see the theater stocks with amc trading down about 3. 5 . Guys, back to you. Julia, thank you. Have to wonder, mike, if this is the Business Model changing before our eyes really speeding along that prosepr process. Yeah. I guess the question is are they going to have to resize the cost side and lower expectations for the total, you know, potential release revenue is going to be for these guys thats what we dont know yet. All right we want to get your take on the market internals its been an even mix it pulled ahead by the advancing volumes. A little ahead of declining right now. I mentioned the equal weighted s p 500 is flat on the day the big caps are pushing the overall stats higher take a look in the market here better than a 101 pace. When you get above 100 new highs in a day that, is a sign of a healthy market and then the volatility index, giving up the pop it had on friday, its still here in the low 30s. Its not really getting back to those more confident normal levels but so far the stock market is able to rise even with that bid in their for volatility. Guys we have under one minute left before we get to the markets themselves oil up by 2 gold nearly 1 dollar is down by 0. 6 closer to the highs of the session. Rallying towards the highs of the session. The dow is up 162 points which puts it at its high of the session. Quite some way of the lows after the opening. The nasdaq composite up 1. 1 is set for a record all time closing high pretty remarkable that we have another one on our hands here. Tech unsurprising there for the best performing sector on the s p 500 followed by utilities and consumer discretion aries. Health care bottom of the pile we close at the session highs. Theyre slightly lower as well a gain of 2 overall at the close. S p 500 up 0. 65 the 20th, 20th record close for the nasdaq of 2020 welcome back, everyone, to closing bell. Im sara eisen here with wilfred frost and mike santoli take a look at how we finished a lot better than where we were when we started. The dow up 151 points. Nike the biggest gainer. Ahead of earnings on thursday. Microsoft, apple, walmart, all up there in the winning category as well. As for the s p 500, up abo about. 6 . Big tech, Technology Leading the way. Utilities, Consumer Discretionary, materials, energy and Communication Services and industrials also closed up on the day. As for the nasdaq, a record closing high 10,056 all we needed to get to is past 2020 we did surpass that record thanks to the strength in Technology Names its been a constant theme the nasdaq for the year is up about 12 . The russell 2000 index finished up 1 . They did the best of all of the four big averages. Small cap playing a little catchup from their declines lately coming up, were going to as the former whole foods ceo walter rob about the state of the consume eastern the outlook for food prices as coronavirus continues to impact production weve seen a big rise there in food enflags joining us first though to talk about the market though, Credit Suisse Jonathan Golub still with us by phone along with angela moranza. First though, mike, to you on what we saw as an odd mix with the winners. Defense and utility but Consumer Discretionary which is sort of cyclical as well wrap it up for us. What did the action tell you it almost felt like summer 2018 time day. Very low volumes most stocks not doing much of anything big cap growth though. Working very well. In this sort of low growth high liquidity backdrop that is driving things also very telling that market just looking for an excuse to get a bid. There was a comment from the president earlier that he might support extra stimulus payments. And that seemed to get the market firmed up then we had the comments that were a little skeptical or at least a little worrisome from the Texas Governor thats that pop down you saw a little while ago and then just recovered right away that is telling. All thats gone on today is recoup fridays losses on the power of the faang and software and biotech stocks were flat for three weeks everything that happened today, operated below last weeks highs. So you cant draw a grand conclusion certainly a firm and resilient take for the day. Where are people positioned at the moment . Do we have any precedent for what weve been discussing in recent weeks thwhich is a different positioning depending on what type of investor people are. Yeah. You know, the options indicators are saying that these tactical traders are very, very bullish and very aggressive. Of course, we hear anecdotally about small time traders who are new to the game or bidding up very risky type stocks thats on one side of things but in terms of, you know, traditional investors on the retail side or beyond invested in cautious right now. A lot of Cash Holdings and then hedge funds even have not really raised their exposures in a big way there is a pushpull underneath. There is a difference in time horizons or signals that people are looking for and in conviction levels. So i dont know if there is a specific precedent but when youre coming out of a major market shock, you do often see these different players operate in a different speed and does that sound sort of sensible to you . Is that what youre seeing at ubs as well . I mean, its interesting to see where the markets are today. Were coming off comments from the fed on friday that were pretty brutal about the u. S. Economic outlook but you also had fed oeflz ffics reconfirming that theyll do whatever it takes that its about lives and livelihoods and really trying to guide the economy to precovid levels. And basically saying that theyve been not even thinking about thinking about raising rates. So these are all positive things for investors coming into markets today. And then secondly, i think people are getting a little excited about economic reopening. And so, you know, i do feel that its a bit of a terminator rally, you know, taking reference from our friend Arnold Schwarzenegger as the assassin that just could not be stopped to see the s p 500 at a level, you know, where it looks like were closing on the quarter at the highest level for the past 20 years and, yet, a mere three months ago we were looking at huge economic down turn, you know, reminiscent of the Great Depression corporate earnings are generally down and risk is up and were seeing more Coronavirus Infections kicking up. So, you know, we feel things are a little overbought. This isnt a necessarily sense of where markets are. What is the counter argument to that . Its a bullish argument a more constructive argument that justifies where these equity markets are closing nasdaq could close at a record high. There is a point that sarah is making earlier about the airlines raising capital the reason that stocks go down so much during a recession is because of the risk of bankruptcy if you go bankrupt, you dont get the opportunity to earn your future earnings. The government has basically taken out that down side so that really is what set things in motion it was really the governments engagement in credit markets that allowed them to do that and i do agree with the comments that were made a moment ago. The reopening process, especially when you compare the bounce off of the bottom, its going to look really brilliant the second question is when do we get back to the peak . All of these are going to show nice bounces i think theyll help fuel the case for market upside we saw that today. The chicago fed had numbers that came out that werestronger its interesting to watch the price action, mike, in terms of the groups that did well today obviously, big cap tech. Retailers did well the airlines did not i mean were seeing a breakdown a little bit in terms of the stay at home versus the away from home and reopening stocks they were all tied up together for a while. What you are seeing now . The Consumer Discretionary move is 1. 5 gain in amazon. That explains what were seeing in terms of that sector breakdown. I do think that its a sign of a market that if in general its not going to buckle, if in general it seems supported, it will find a way to rotate around the headlines on a given day and i know that sounds like its giving the market too much credit for being, like, sneaky and wiley and sorting things out. But it is the way that it operates when you have a market that people dont feel overinvested in and they feel they can give it a little bit of room but to your point, the core travel stocks, the ones that really need people in a hurry, they have not fared as well in the last couple of weeks meantime, Apple Holding the worldwide developer conference today. We have the highlights so far. Hey, josh. This is always a Software Show there was big hardware news today as well. Specifically when it comes to the mac. Apple saying that its going to move away from intel processors which, remember, it used for years to its own chips heres tim cook. Our vision for the mac has always been about embracing breakthrough innovation and having the courage to make bold changes. Every time we have done this the machas come out stronger and more capable i have never been more confident about the future of the mac than i am today cook said the transition will take about two years they like this news. They say this gives apple more control over the mac as a product. Should improve performance, they say, and reduce cost what does it mean for intel investors . I caught up with bernsteen stein stacy. He said some macs will still use intel chips. Does he offer broader tstrategi positions. They could be problematic, stacey they could open the door wider for intel rivals like arm. Thanks very much for that and it doesnt make sense to you that a stock like apple is pushing all time highs again that doesnt surprise me. I think specifically, you know, as a long term investors and working with clients, we look towards secular trends you know, if i look at aging, youre going to have more 60yearolds in developed countries than you will sub25yearolds. And so, you know, with that many plus 60yearolded, it means i need more health care. How does that fit into the apples of the world . It means that technology is all the more important and so health tech becomes a theme and Investment Opportunity that we think is very oportune whether you look at ai and tell he medicine or fully integrated kind of future Health Care System that is pressed and that is customized and takes costs down and ups efficiencies. And thats basically what technology is doing. Were seeing health tech, fintech and even cybersecurity afrpg la, well leave it there. Thank you. Jonathan golub, thank you both for joining us up next, well ask former whole foods coceo walter robb about how food splupy chains could be affected by a second coronavirus wave for as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. While the future of work remains a question mark, one thing is certain reopening will be a journey. Thats why salesforce created work. Com to help at every step of the process, with tools like manual Contact Tracing to help prevent one from becoming three and three from becoming more. While displaying Key Information in one place on a Customer Relationship platform you trust. Because heres one more thing were sure of. Relationships are the heart of business. So lets tackle this together. New york city beginning phase two of reopening today with nonessential retailers not allowing in Person Service nordstrom, macys and sax Opening Doors as much much as the u. S. Is gradually reopening. For more on what we can expect from the reopening is walter robb, now principal at stonewall. Nice to see you, walter. Is this it is that the High Water Mark in terms of sales and business for groceries and essential retailers as the country reopens . Well, i think the reopening is the metaphor still applies. Were building the bridge as we drive over it. It varies by geography and format, Small Business, Large Business but i think we have seen the peak at grocery at 30 and most groceries are at 15 to 20 as the restaurants start to recover a little bit within the grocery, walter, have we seen the peak of online delivery versus people going to stores if we rook at the numbers between 3 and 10 of that is digital growth so the penetration and so its hard to say. I dont think were going to stop any time soon the question is, when the sales surge slows down as restaurants pick up steam, does the percentage drop back i think probably so. Whats going on with prices, walter weve seen some historic increases and not just for me, we know about the slaughter house supply issues. But across dairy, even fresh vegetables the why is that happening . How long does it last . Were seeing inflactition inh 4 to 5 range in some cases its higher. You also got costs up in terms of providing a safe workplace. And you have costs up in terms of paying front line workers more that is good things. The question is inflation, is you know, inflation and food prices, the question becomes where does it go and how long does it stay what im hearing is the second half of the year it looks more competitive as unemployment really lands. The length and strength of the unemployment numbers, the, you know, the duration of that so i think then thats when well see what the competitive marketplace does who is going to pass it on who wont pass it on walter, walmart and target, their stocks have been on a terror recently. Most people consider that they have successfully pivoted to fight back against amazon in recent years how many winners in that space overall can we have . Is it a case of just a couple maybe one or two more or can many others also fight back . Such a great question i think there is a lot of great regional grocers out there that dont make your show while theyre doing a super job in other parts of the country i think there can be multiple winners in this. Really the focus is your ability to serve the customer. I think that the cutoff is do you develop the Digital Tools necessary to serve the customer where they want to be sirveed a serve . That will be harder for the independents i think there can be multiple winners in this category who is anyone winning Online Grocery right now youve watched the news ive been stunned by the valuations and the financings whether it is door dash or uber eats and the grub hub deal ive been stunned by the valuations particularly given the Business Models but clearly the customers said they want it so i think door dash got the majority of the share. But certainly amazon and walmart know how to do it as well. I think it just becomes part of the landscape now. The question is going to be over the next number of years how does that play out economically . How does it play out in terms of penetration percentage those are questions we dont yet know. Walter, if we now pause having a look at how the amazon acquisition of whole foods has gone, do you feel like the brand of whole foods has been damaged a little bit because clearly it was originally preveyumprepremi . Well, you know, thats a company i love so much so i will just say that i think that the blend of the two companies is greater i mean, the merging of the physical and digital i dont think whole foods brand stands out as much of as it did when it stood on its own the overall combination is stronger for the market overall. And walter, i just want to ask you about the albertsons ipo which is coming. Theyre going to try that one again. Is kroger a cautionary tale here we had the great samestore sales. Double digits sales are continuing and the market wont give them the benefit of the doubt when it comes to online delivery and the forward looking story here first of all, why . And second of all, does it have any implications for albertsons . Its an interesting question. They talk about how it takes three or four years to develop the economics on individual customer online versus in store. We are seeing a surge in retail food sales at some point the restaurants come back. I was talking to bruce taylor today. And he is at 80 of food service. You start to see that coming back which well pull back from the grocery. Do you have the price inflation. Yet, you have the competitive market you have the tension between those two. Who is going to price down who is going to try to hold price and who is going to try to pass on price . So i think, you know, what you take away from this is that were kind of this first half of the year has been kind of adapt to the covid19 and the new reality of retail, bring customers in, limited hours, getting your supply chain more resilient, et cetera the second half of the year is going to really be a competitive battle some folks are going to say i want to try i want to try to go earn i want to earn market share and some people are going to say i got to do i have to promote more and discount more some people say i have to pass on prices because my costs are up i think well see this market taking a firmer shape. Walter robb, thank you. Thank you. Facebook fallout. Well discuss whether the company should continue its current appetizing policies or whether a risk losing appetizers as it has done recently with the likes of patagonia motorcycle riders love the open road. And geico loves helping riders get to where theyre going, so to help even more, geico is giving new and current customers a fifteen percent credit on their motorcycle policies with the geico giveback. And because were committed for the long haul, the credit lasts your full policy term. The geico giveback. Helping riders focus on the road ahead. Yeah yyeah yeah hey, hey i geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Welcome back lets have a look at how we finished the day on wall street. The dow up by 153 points just off the session high. The s p 500 up 0. 6 . Nasdaq leading the charge as it often does and a charge to another record all time closing high lets go back to mike santoli. Taking a look at the recent surge in corporate debt. This is a story in three ax this is a chart from Oxford Economics showing the carpet debt to gdp paetsch yoe in developed economies is poised to exceed 90 basically it has already done so this 90 threshold is considere to be some kind of critical point where perhaps its going to retard growth down the road its not proven. There is Investment Grade bond yields here you go. Just over 2 a huge spike up there. Can you see the cost of every dollar of debt is lower than its ever been in terms of companys cash cost. If luke at how they metabolized this, it shows the proo is to sales ratio, the valuation of well capitalized lower Debt Companies right here with much higher interest coverage and these are the valuation of the more undebted companies. So the stock market is already a signed credit and blame based on corporate debt burdens it doesnt seem likeit would b a surprise of the market for now, the cost is not crippling. The amount is certainly getting to be seemingly burdensome france, china, canada are the countries within that study that showed the highest vulnerability. Guys i wonder how long it can continue, mike is it as long as the Federal Reserve is in the market really, its its really about the cash cost of the over time heavily indebted companies, you see what happened with american. Theyre having to borrow tremendously to stay afloat. Theyre going to burn through a lot of cash. Its not going for investments or future growth thats an issue a lot of companies have to deal w system wide, as long as the cash costs are manageable, you know, the wolf stay as way from the door mike, the other point that this brings us back to something thats been evident over the last decade anyway is the debts of bond markets in the u. S that means that the special measures by Central Banks actually have a much bigger effect thats right. The uk is in between the european continent of europe is the worst of this relying on the banks to finance companies and that mechanism is not nearly as efficient following bouts of qe as deep and developed Corporate Bond markets were seeing that more than ever once again. The real risk, now, as we saw in the stress thats we saw a couple months ago is the risk that companies are not going to be rolling over the debt it really isnt the outright out of pocket cost it is in the the fed does allow with the bond market help to allow the debts to be rolled over in a timely way all right mike, big theme. Thank you. We have breaking news right now in soft bank the sale of a large chunk of the tmobile stake now official according to a filing. Soft bank will sell approximately 200 million shares of tmobile which will be valued at just over 20 billion as of todays closing price. Again, anticipated but there you can see softbank or tmobile under a little pressure here in extended hours down 1. 4 . Up next, well ask the ceo of best western how coronavirus impacted the Hotel Industry and how his company is trying gtoet people traveling again well be right back. [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. And its mission is to make sleep. Feel. Cool. So, no more night sweats. No more nocturnal baking, or polar ice cap airconditioner mode. Because the tempurpedic breeze delivers superior cooling from cover to core. Helping you sleep cool, all night long. During the tempurpedic summer of sleep, save 500 on all tempurbreeze mattresses. And experience your coolest sleep this summer, on our best breeze savings of the year. Its time to check in at least according to barclays latest note on the u. S. Hotel and lodging industry the firm saying although covid19 remains a challenge, improved near term demand in several areas should allow companies to emerge post crisis. It expects the industry to enter a new multiyear growth cycle beginning in early 2021. Our next guest already seeing some of the optimistic signs as more States Reopen across the u. S. Joining us now, david cohn good afternoon to you, david. Good afternoon. So whereabouts are you most optimistic with this reopening it is the leisure side or business side . The leisure side. The demand is ebb entirely the leshure segment. People are looking for mini vacation with their families so were seeing pretty strong growth in leisure. Which countries are you seeing the biggest bounce in terms of reopening well, believe it or not, United States. And its because we have so much domestic business that we can drive to within our own country. If you think about the Global Market and many of the countries rely on International Travel and all the travel restrictions and quarantine requirements, there is just no business there. So its much easier to drive domestic business. Just give an example so arguably south korea has the best job in managing the pandemic but if we look at the city of seoul, it relies so much on the international rivals its really in horrible shape in terms of Hotel Business but United States on the other hand, has very strong domestic business so, david, what you are doing to make sure that the rooms are clean and safe and to what extent are your patrons demanding to know those details . Are they in fact just quite happy to take your word for it and understand that youve done the necessary cleaning no, i think the safety and wellbeing of our guests is first and foremost on everyones mind at this time. Especially with a pandemic theyre very concerned about the cleanliness of hotels and applause the effort of the American Hotel lodging association for starting the safe stay program. And our Hotel Company actually went above and beyond that and i think its really important that we take it seriously. So when people arrive at our hotels, we want them to see that there are lots of additional things they can pick up that we take it seriously such as social distancing and decalls on the floor and removing furniture and clutter in the hotel room and chafrmging the House Keeping Service Requirements so on and so forth what sort of pricing are you getting . Have you had to offer extra Discount Deals and promotions to get people enticed to become reservations again like weve seen at the airlines for sure. Partly the discounting is driven by excess inventory. You have the Big Convention boxes that are sitting empty they have lots of rooms. Theyre going to try to attract business and that drives the price down secondly, a lot of people are fighting for survival. So consumers are seeing really good, very, very good rates at this time. Its a great time to travel. David, what is the cash position and how you have found access to financing over the last couple of months . Were in fairly good shape. We pride ourselves in having the work at this time. We continue to be in very good shape. What about your employees, david . Have you had any trouble getting them to come back to work or to stay at work throughout the pandemic initially, we have to make the painful decision to follow our employees and we were gradually bringing some people back theyre just overvoid to be able to return to work. And, david, going back to the global footprint, which countries are you most concerned about . You mean you mentioned south korea. Anywhere else . Yeah. There are some countries in europe such as Great Britain but, believe it or not, theyre still very restricted in terms of how tells open. Most of the hotels are still not open theyre going to slowly gradually start to reopen in july and southeast asia, its terrible most governments are not allowing the hotels to reopen. So thats a terrible, terrible situation. So in different places you sigh very, very heavy restrictions imposed by the government. But im relieved thats a whole were gradually seeing the reopen and business returning to some normalcy. I mean, you sound super optimistic and positive, upbeat on the United States have you seen any evidence, david, just in last, i dont know, week or so of people cancelling bookings in texas and florida which is very popular destination for travel because of the uptick in cases weve seen there well, thankfully i havent. Really since april, around april 12th when we hit our low, ive seen a gradual improvement every single week. Were starting to see very solid recovery over the normal weekend and the last two weekends weve seen over 50 of weekends. So that is very, very encouraging to see david, thank you so much for joining us thanks for having me. After the break, the state of Consumer Spending. Well ask Tristan Walker on the board of foot locker and shake shack when the retail sales rebound is sustainable as they spike in several states. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back time for a cnbc update hi, wilf. Here is your update at this hour louisiana governor john edwards is putting his States Reopening on hold for four weeks he says that the state will remain in phase two due to surges in new cases and hospital admissions he said the state would be doing a lot better if more people were wearing their mask and practicing social distancing and staying on the south, Texas Governor greg abbott says that coronavirus is spreading at a unacceptable rate. Texas is continuing the reopening as new confirmed cases set a record for the tenth day in a row abbott says that closing businesses again will be a last resort and, wilf, this one is for you i hope youre listening. In england, two miles from stone hedge, they discovered another mile while circle of shaft that is 3500 years old. The New Discovery could provide clues about stonehenge and why it was built very cool. I have a feeling that was in there just for you. They with go. Ill send it back to you, sara feel free to comment. I mean, im not educated enough to know what they may have discovered. I dont think anybody knows what it is. So, you know more to come. Well learn more. In future news updates to come in due course yes yeah. Losing out on a the lot of tourists up next, hes on the board of foot locker and shake shack and sold his company to png. Well talk to Tristan Walker, ceo of Walker Company about what hes seeing as more businesses reopen across the country. Closing bell back in just a few minutes. Right now is a time for action. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Up next, facebook coming under fire the likes of northface and patagonia boycotting ads on the platform over hate speech and misinformation well discuss with t c mi uonclosing bell. Derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. I geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Shake shack announcing a new member of the board of directors Tristan Walker hes been named by fortune as one of the worlds 50 great et leaders in 2019. Hes the founder and ceo of Walker Company, a beauty and wellness brand acquired in 2018. He also serves on the board of foot locker and that resume gives him a unique view into the state of consumer now as america does get back to work. Tristan joins us now thank you. And, yes, you have quite a perspective here between the restaurant sector, shoe retail and, of course, p g, the biggest Consumer Products staples giant. So what are you seeing in terms of Consumer Behavior and how its rebounding . Its an exciting time our company is really seeing record growth in terms of Walker Company as it relates to the dibl digital channel. We were well prepared for this growth our history is digital native and opportunities like buy online, pick up in stores and very real tupt that were seeing and i imagine many other retailers are seeing its convenient, efficient, and most importantly, consumer centric. I expect that covid19 created this new normal digital penetration, not only to raise awareness but sale proof and even with the shelter in place requirements, Consumer Staples from brands you trust and diverse fiction still matter you know, for folks who actually had the means to do so before covid19, you know, folks still want to wash their bodies, comb their hair, clean their clothes. And our attention to economics are improving in a big way and now even more measurable with this increased digital platform i want to ask you about joining the shake shack board. Congratulations on that. Thank you. Whether did the conversations start . Was it an easy decision for you to join or did you push back and ask them for certain kind of guarantees about the direction they were heading. We started the conversations in late 2019 im excited about the brand and a number of reasons why. You know, i have tried very diligently to partner and align myself for companies that focus on three things i believe matter first, the importance of the demographics in this country something we talked about in the past second, brands as a force for good in this world and, three, the importance of technology and i think the companies of the future are going to be the ones that embrace all three and shake shack is certainly one of those companies as is foot locker, Walker Company, et cetera there is great alignment in terms of our views and view of the future and fast forward six months later i have a wonderful fortune that participate as a board member theyre all brands you did Say Something interesting about brands theyll be valued in this kind of environment which is interesting because it would mark a little bit of a departure from what we would normally see during a recession. The last recession after the financial crisis, Companies Like p and g got hurt because people were buying generics they didnt want to pay premium prices for brands s that different right now . Yeah. Well, i think people want value. People want value from brands they trust proctor and gam sbl Procter Gamble is a product that people trusted for 180 years. Walker company has a suite of brands that people trusted for seven. We have the opportunity and flexibility to deliver them what they trust quickly and efficiently whether it is digital or in stores as well and, you know this is very different world than we were in ten years ago. Folks want to align themselves with brands that share their values that, serve their needs and i am so excited to be able to align with kind of these companies that do just that. What are you thinking right now, tristan in, terms of shape and strength of the consumer and n. Lig the Coronavirus Crisis in do you think they will bounce back quickly and strongly to the same degree as the stock market has id like to hope so but i think its not without ensuring that, you know, we are focused and prioritizing the safety of our consumers. Folks want to get out and kind of interact with the brands they care b but they want to be safe. And its our job its our duty to ensure that they are safe. So it will take as long as it needs with our biggest priority is being safety. I would like to think it changed. But we have to this virus will take its own course we need to be adaptive, agile and really respect that in a very big way to serve our consumers in a safe way but in a hopeful way. Any insight into how much of the buying power that weve seen post pandemic and as we reopen that you talk about has to do with the he noenormous policy sr we got whether it is stimulus checks or ppp loans, keeping people working, the mortgage relief a lot of the programs are coming to their end so i wonder if you see that as a big head wind here for Consumer Spending i think so not only for Consumer Spending but the jobs, right you know, certainly folks are getting the stimulus they need to be able to pay for rent pay for food pay for some of the Consumer Staples. This goes back to what i said earlier around this idea of Consumer Staples really leading here and diverse fiction really mattering for folks. So, yes, we have seen, you know, with our kind of record growth some of that benefit, right . And i up next, boycotting facebook oms, pulling adds fr the platform. Thats after the break term view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. Yeah yyeah yeah hey, hey online Talent Solutions company upwork is showing support for the stock made for profit movement. As part of the movement they join others in pulling advertising from all facebook platforms. Upwork ceo hayden brown joins us now. Very good afternoon, thanks for joining us. Absolutely. Thanks for having me. Let us know why you decided to stop advertising on facebook and its platforms. We feel at this time it is really important for us to come out clearly as an Antiracist Organization and make sure our voice is heard for faigs and others who need to do more in order to stop misinformation, hate speech and racism on their own platforms so as an advertiser on facebook we want to make it clear they need to do more as this Advocacy Group pu together sensible recommend thats facebook can follow to make it a space it should be where we want to advertise again. Are you suggesting that facebook is racist no, not at all. What were suggesting is theres a lot of contents on the facebook platform that contains misinformation and hate speech and as a advertiser we do not want to have our ads shown next to that type of content. Facebook has a number of things they can doto make the platfor more transparent to advertisers in terms of when is advertising content shown next to that content to make sure that doesnt happen and moderation and resources for when users are being targeted base the onnide ent on their identity theres a number of things the group put together as proposals that facebook could follow or they could suggest alternatives they think are more impactful to address these core challenges. Hayden, have you put those ad dollars to a competitors platform instead because you like their policies better if so, im curious which one id imagine a number of the big advertisers havent followed suit because its hard to find a platform with the size, scale and reach and engagement numbers of facebook. Absolutely facebook obviously has tremendous reach we are looking at other plot forms to put that money to work but the important thing here is it is time for companies to take a stand how to be more antirace iflt in this society in a world were seeing a tragic outcome of systemic racism in the United States and how its playing out. This is about us being really clear, using our money to say facebook theres things you can be doing better and differently and asking them to look at what those change could be. Whether specific ones outlined in this campaign or others that they think are more potent and powerful in combatting this information and racism on the platform from really spreading and being content that we as advertisers, again, really dont want to be supporting or showing up next to in anyway how much was it an issue for you, the way that facebook specifically has been handling Donald Trumps facebook posts which twitter has handled differently by putting labels and warnings about its accuracy as yay to call it to attention, is that the sort of issue that bothers you . You know, right now were really focused on issues around racism and hate speech and i think theres a lot of usergenerated content that facebook can do a lot more to moderate and make sure, again, theres transparency and visibility around what kind of content is prop gated by the facebook algorithms and what case is facebook profiting for advertisers showing up next to that content this is not a referendum on twitter versus facebook approach to trumps comments, per se, this is looking more globally at a systemic issue in the society how facebook can play a proactive, powerful role in making the world better and helping to ensure us and others are not profiting from that type of content being shown next to our ads. We dont want to be associated with that. I think face can do a lot to mitigate those issues and help users not be victims of targets misinformation hate speech those are real lly important issues. Hayden, was this a big shift for you, how much did you spend last year on facebook platforms . So last year we spent a total of 96 million on sales and marketing in totality across a range of platforms, we dont disclose facebook specifically, but we felt, when i saw the list of recommendations put together for this campaign by the naacp, color of change, you know, the organizations that really have an incredible track record of understanding these issues and really putting forward seasonsible solutions. When i read through the recommendations it seems like a nobrainer these are sensible requests that facebook could follow through on it would help us and the facebook platform be a much more powerful part of making our society antiracist and addressing some of the systemic challenges were seeing today. Hayden brown, thanks for joining us. Thank you as we wrap up the day we saw another positive session here, guys, on wall street, another recordhigh close for the nasdaq, mike and the s p now, what is it down 3. 5 for 2020. Does that make sense well, you can see how it got here by the way, the first bit of explanation is where the nasdaq is sitting, the big six, now just about onequarter of the value of the s p 500 those Six Companies have not really seen much to detract from the advantages they had coming into the year in a very liquid environment with abundant credit, the rest of the market is holding together. To that extent it makes sense. The valuation of the market got to a level that looks pretty stretched based on the earnings in front of us so you have to take a leap of faith that rebound is going to come sooner than later. It wasnt just tech today, it was at one point in the day but the time hour of trade pretty encouraging. Yeah, its certainly not just tech tech purges above its wa tech punches above weight. Banks down bonds up including amazon, believe it or not, it has a lot of sway over that discretionary consumer study. Were out of time s p 500 closed 0. 65 fast money starts now. Fast money starts right now. Trader lineup tonight on fast the nasdaq knocking a new record high apple and microsoft soared alltime high. And a payment pop. What sent shares to square and you will hear from analyst who says its go to be the king. We start off with what could become a boycott facebook under fire as a growing number of advertisers pull out