Transcripts For CNBC Power Lunch 20240712

Power lunch starts right now. Welcome to power lunch. Hi, everyone. In today for kelly evans. It has been a long road back, but the s p 500 right now is near those record highs from february. About 1. 5 away. But as the nasdaq lags the browder market, check out some of the cloud names under pressure. Cloudflare, dropbox, zoom, and docusign. And you can see these moves playing out the industrial sector slee sector is leading the way as is energy. Tyler. President trump signing a number of executive orders over the weekend to expand relief efforts amid the coronavirus pandemic. As congress failed to get a deal done. Steve liesman looks as what the impact of these executive orders could be. The president s orders over the weekend getting mixed reviews today from economists. In just the past hour, jp more conpublished a report saying, quote, the executive orders could reduce the urgency for congress and the white house could get a more comprehensive deal done. If this is all we get for a fiscal policy for the rest of the year, it would represent a significant down side risk to our growth outlook. He sees only a modest hit to spending. Good news for employment he writes, the trimming of the benefits will be good for employment. For example, the incentive to get people back twork, though a marginal drag on consumption. The Economic Impact is simple. Its less than what was being paid before the 600. That was expected. Expected to go down. And more than nothing. The jp more gone chase estimated that the without the benefit the spend would decline more than it did during the 2009 great recession. With the amount in the executive order, it will fall somewhat less, but still mean a hit to consumer spending. Among the major questions surrounding the executive orders are, are they legal and can the states implement them because theyre kind of complex . The angss the answers to those will have a direct impact on it. The one thing that would require a direction action would be a stipend or payment of that 1,200 that took place under the original c. A. R. E. S. Act. Is that still hanging out there, steve . Its not part of the executive orders, youre right. Any new money requires congressional approval. The president is shift around money. Theres this payroll tax deferral thats kind of that would go to people who are working now. So that would sort of be like its like a zero interest tloon businesse loan to businesses. Its not new money. Apparently still only congress can create new month. And that doesnt kick in until september 1, as i understand it. And then what that would mean, well talk more about it at another time, steve. What would that would mean for the ultimate funding of Social Security and medicare remains to be seen. Thanks. President trump of course taking action as republicans and democrats still cant get a deal done. And our next guest says the decisive moves like this by the president put him back on path for reelection in november. Lets bring in stephanie miller, managing director at fiscal note markets. Stephanie, i see one of your notes says trump as the cooler head has prevailed. Thats not a headline i would often expect to see with reference to the president. But, in this case, maybe he deserves it. Yeah, i think that most people dont really want to Pay Attention to washington, not just wall street but kind of everybody. They kind of want washington to take care of you when you need help and then leave you alone the rest of the time and so right now most people are actually polling saying they want to see more stimulus or aid or something to individuals. So we watch congress and to the extent youre paying attention, you saw congress wasnt doing thing, they couldnt come to an agreement. So the president did what he does best, which is to get a deal. I think that is exactly the kind of character trait that a lot of people supported in 2016 when they voted for him. And so to give him this opportunity to come in and sort of save the day with a deal i think is is a really lucky opportunity for the president. He does tend to, on many occasions, like him or loath him, he does tend to be cut through the bull crap, as he has done here. Does this, as steve cited referencing a report i think it was from jp morgan, does this take the pressure off particularly the republicans to do any kind of deal until, say, after labor day . Theyll wait to see how this plays out . Why would they move now . Yeah, i agree. Yeah. I think republicans so this is not in the best interest, necessarily, of republicans on capitol hill, republicans in congress. It is certainly now in their interest to just wait and see, i would say, for a few weeks. To your and steves conversation from earlier, the 1,200 stimulus checks were not included in this. There are other things that both sides agree on such as extending the payroll protection program, that ppp program for small businesses, not included in this because those require new dollars so it requires congress. So i do think that there will be some negotiation, i just think that theyre going to act. Its not going to be after labor day, i agree with that. So, people are picking knits in the particulars of executive order, as theyll want to do. But as an act of political strategy, it seems to me to be genius, because is he in one fail swoop, one stroke he has put the democrats in a box where if they oppose this they, in effect, are opposing help for the electorate, right . I totally agree. If you sue because you think what hes done is illegal, which there is a lot of good argument to say that what hes doing is pushing the boundaries. A lot of good reason if you disagree with this approach and you want to maintain the status quo and process that you would sue. But then youre out there saying you are trying to stop Unemployment Insurance thats been expanded for people who need it desperately. So i totally agree. And the other thing really leading into this, i think a lot of reports and understanding of the election to this point has been the biden has held a huge lead. But when you dig into the numbers, people are pretty split in terms of enthusiasm. About 30 of people polled say that they are super enthusiastic to vote for trump. About 30 are saying theyre super enthusiastic to vote against him. So that really leaves everybody else who is not as enthusiastic as sort of gettable. So i really think leading into this moment the electorate was split and now its trumps, leaning a little bit more towards him probably than democrats. Ill give you a very interesting straw poll to ponder that i read in, of all places, the New York Times today. It said that of all the television networks, all the networks, abc, cbs, nabc, the Number One Network this summer has been, wait for it, fox news. More people are watching fox news in prime time than abc, cbs, or nbc. That tells you where the eyeballs are, folks. Stephanie miller, thanks. Thank you. Thank you. So despite that turmoil in washington, the s p 500 is inching closer to its record highs set back in february. Its just one person away from those levels. What should investors do now we have angel oak Capital Advisers and matt brodie is vp and Portfolio Manager at brockland trust. Thanks so much for being with us today. Lets start with, is the conversation shifting from the all powerful nasdaq to now the s p as it inches closer to those records . Is there more for the nasdaq to go and tech to go or or has it had its run . Yeah, i do think that thats a great question and i think investors should consider a potential rotation. If you look at valuations, you know, many sectors are quite stretched and i think looking at value can provide some much more upside. There are certain sectors that we like more than others, but i think finding strong Balance Sheets with very low multiples could play huge dividends going forward. Matt, do you agree or are you perhaps moving more in value names . Yeah, i would agree that the tech, you know, rallies a little bit stretched compared to rest of the market for sure. It would be hard for me to when i look at the pe values and what the Technology Space has done relative to other sectors you wouldnt say now is the time to rotate away from that and look for names that can play some offense with an economic recovery. But also if we have any hiccups here for the next couple of months could play some defense too. I think tech has done i great job of playing defense throughout this period, but its probably not quite as offensive as it normally is based on the valuations at this point. What are some specific value sectors or names that you like these days i think the sector that really stands out is banks, if you look at really the valuation there, its really dislocated from the rest of the market. Really in the middle of a perfect storm for banks if you look at the yield curve. A couple of them nonreserve the banks hold on their Balance Sheets. Also if you look at potential revenue generation, a name like jp more ghan hasgan which has ag business in terms of volatility will limit some of your downside. But if we do have a recovery and get through some of the issues we have at the moment, you could have significant upside as much of that capital will be returned. Matt, it does appear that there are a lot of things happening all at once. It has been quite a year. What are your biggest concerns on the investment front . We reached that milestone over the weekend with covid cases here in the u. S. , we have the election coming up, how exactly we will all go to strot is stvo very much in question. And then china and u. S. Tensions. Whats top of mind for you i think my top of mind is helping clients navigate through what does seem like a bit of a wall of worry. It is really an uncomfortable time and people are focusing on that election. And theyre very strongly convicted one way or the other. I hate to see people make decisions, you know, with their portfolio based on an election outcome, because no matter the outcome, there can be success in the markets and there can be failure in the markets. Its not a onesided coin, if you will. So i think helping people through what is a scary time, and honestly id like to see, you know, congress get back together and get us a stimulus bill and a recovery bill that gets us through the election or through the end of the year as the previous guest was saying, that the current one gets to us labor day. Thats too short of a time frame. I do think we want something thats a three to fivemonth period that gives us a little bit of clarity through what will be an interesting time in the fall. And, matt, i do want to touch on that stimulus gibill in the moment. But what are some of the stocks you like these days . So i share with jp morgan and the banks very much. Thats our top rated bank. But i would say raytheon is a Great Company to own with a nice 3 yield, stocks off its highs. Kind of been thrown in with the Aerospace Industry overall. But they have such a great defense business and people worry about defense business. But it will stay strong in the future. And also aep. Weve welcome back in the unemployment numbers and the stocks off its high, its come down off 20 a few weeks ago. Theres valuation there. Theyre going to get market share, its a defensive way to play tech because it is in the tech space, but it certainly could participate in an economic recovery through the payroll. And then really quickly, last question here, a lot of people have questioned after the executive order and the memoranda this week from President Trump if we will ever see another coronavirus stimulus bill if it will be need and thats baked into the market. If we dont see another stimulus bill, what happens for the markets . Are investors on shaky ground or does the fed step in what happens then . Think you definitely have a fed backstop here. Theyve shown a strong commitment to providing support and liquidity to the markets. I think the markets should be relatively a new front. A lack of a stimulus bill, i think, the ultimate outcome would be that you would potentially see a larger divide between Economic Activities and asset prices as the u. S. Consumer may be left behind in that situation. And, matt, we want to give you the last word here. Yeah, i mean, i am hopeful that, you know, executive orders are a blunt tool, Monetary Policy is more blunt. Id like to see Congress Step up to the table and come up with something that gets us a little further along. In the absence of that, getting something done is always better than nothing, i think, in this case. And, you know, weve got a few weeks to sort out maybe if we can get the next leg and get us through the end of the year. We certainly will see. Thank you both for being with us today. Tyler. All right. Coming up, as the s p nears record highs, its just a percent or so away from it, a group of wealthy investors are cashing out. We will talk to tiger 21s michael seinfeld about what that could mean for the market. Plus, twitter reportedly joining microsoft now in the bidding for the chinese social media app tiktok, as President Trump says the app will be b banned starting next month. Will a deal get done well be right back. What happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back to power lunch. Tiktok is talking to suitors looking to buy at least its u. S. Operations, and now microsoft is being joined by twitter seasonaliisnt that an interesting development. And a race to beat the Trump Administration when the chineseowned app will will be banned in the u. S. And here to untangle some of the issues, thanks for being with us. Quote, everyone and their mother is calling, everyone and their mother, how many people is this shaping up to be a bidding war . I dont know if its a bidding war as much as a scramble. You know, i think its not about who can pay the most, its who can really do this deal and what does it look like . This is not going to be simple. In addition to splitting off from bite dance, the Parent Company that operates a tiktoklike service in china and then tiktok and the rest of the world, you play have bidders that may only be interested in part of what tiktok has to offer in the rest world. Its a complicated situation. And then nobody knows exactly what the Trump Administration wants in a deal who are can do it. And so i think thats really interesting that it will be complicated and not many people can pull it off. And so lets talk names, if you have it. I mean, can twitter pull this off . And if not twitter, then who microsoft. Sure who might so i mean, microsoft and twitter are two interesting and logical names in the sense of the other names that come to mind, google, facebook probably couldnt do it for antitrust reasons. I think we can probably rule them out, although its 2020, i dont rule anything out. But, you know, microsoft and twitter have the chops, the potential interest, and potentially not the same antitrust concerns as the other names. Microsoft a bit more of a Global Player understands china better in that sense, might make more sense. Twitter, though, in a closer field. I mean, twitter and tiktok would seem to go well together, although twitter bought vine and it didnt go very well. Also twitter doesnt have does twitter have the finances to support that type of deal or would it certainly need some assistance you know, it might well need help. Certainly there are a lot of investors, including investors in tiktok, i should mention, that would probably like to be part of this deal. Certainly want to see some deal being done. So i think theres money out there, but theres a lot of challenges both where that money comes from is going to come under scrutiny, what say those investors have verse the lead tech company. This is shaping up to be a complicated deal that needs to get done in a very short order. So its interesting that microsoft has seemed rather shielded from the antitrust scrutiny in washington. Is now a good time for microsoft to potentially be looking at tiktok it seems that it would then open itself up to that sort of scrutiny if this deal were to go through. I mean, certainly that would be something if i were on microsofts board i would be weighing like to do we really want to do this . We just saw all of our rivals testifying before congress. We werent part of this. Microsofts continues to be very strong, if not the behemoth it was when it found itself under antitrust scrutiny. I wouldnt want to do anything that was going to lend itself to that. But maybe they get assurances that doing this deal wont put you under fresh scrutiny they are coming to the governments aid to some extent. I dont think the government really wants to see tiktoks users and tiktok the service go away, they would just like chinas hands off of it. I think. Who knows, again. And think the 100 million u. S. Users certainly hope that it doesnt go away either. Before we let you some of whom are voters. Some whom are voters and some of whom are too young to vote. Before we let you go, though, i do want to ask, whatever happened to the worldwide web theory theres the internet and the u. S. And the rest of the world and theres the internet china. As we start to see these sort of fractions take place, are we going to see more of a splintered internet . What happened to the worldwide web concept . I think thats a huge fear right now throughout the tech sector, and tiktok is the tip of the iceberg. We chat was mentioned also, much bigger issue. Weve seen china wall itself off for years now, but i think we are seeing the rest of the world say well, i would like the internet to look this way. Certainly the thing that made the internet work for all these years is by and large everyone saying we want one global network. I do think theres a very high risk that that starts to get cracked if not break off entirely as moves like the u. S. Has made in recent days. Thats an interesting and some might call scary concept. Thanks so much for being with us today. We appreciate it. Thanks for having me. And still ahead, the renaissance ipo et if p is f is whopping 40 this year. Thats after this. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Weits totally not theg a way tsame 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. Welcome back to power lunch. Im seema mody. Its a busy few days for some of the newest stocks on wall street. Recent ipos casper and small direct club reporting earnings this week. Lyft which went public in early 19 rounded out the group wednesday after the bell. To discuss how thooe they stack, boris. Boris, why are investors gravitating towards investing in these Companies Many of which so far this season have had a hard time articulating their path to profitability . Youre right. A lot of them really dont have unique business models. But lemonade is an exception. And i consider Insurance Business to be the dentistry of finance. Everybody hates it but you have to have it. The lemonade proposal, proposition, is interesting because they try to take the pain from two points of view. From pricing and claim settlement. Their big claim to fame is that they can settle claims can be settled in five minutes or less. If anybody thats dealt with an Insurance Company knows thats a tremendous value proposition. And theyve been growing very fast. Now, their performance as far as underwriting goes remains to be seen. Theyre about 10 below the net loss ratio that the industry giants are doing. But i think the market is going to forgive all of that because its going to look at net customer acquisition. If they continue to grow, if they continue to get mind share, they will see eventually get enough scale to be a profitable underwriting concern. Thats a very interesting longterm speculative trade. To me, of all the ipos out there, lemonade is the most unique player right now. Craig, you can buy in nao one of these newly listed companies or bite etf had is up 40 already this year. Whats the better option i think at this point in time its probably better to probably buy one of the individual ipos and the ipo etf itself. It you look at the First Charity brought in, you can see that the etf has recently violated the uptrend support line off the march lows. Starting to see on a relative strength basis that this ipo etf index is starting to wane versus the s p 500. Think its time to take profits in that ipo etf. Look at the second chart i brought in which was a small club direct, sdc is the ticker this is a chart thats been consolidating sideways making an ascending triangle. Close above 10 would be bullish. Id be brieg thuying that break because it would be among the more attractive looking names. Lemonade, not enough history there for a person who likes to look at charts. Triangle, i have to bring out my geometry book. Thank you. For more, head to our website or follow us on twitter at trading nation. All right, seema, thank you. Still ahead on power lunch, the investigate towards are soip are sitting on a ton of cash during this economic uncertainty. Plus, the pga championship has a 23yearold winner. Collin morikawa taking home that coveted trophy after having it almost slip from his griesp literally. And are residents being taxed by states where they no longer work . We return right after this. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Im frank holland. Heres your cnbc update that the hour. A potentially huge blow to the College Football season. The Detroit Free Press is reporting the big 10 has voted to cancel all conference sports this fall because of the pandemic. Sports reporter dan patrick says the pac12 has also canceled football for this year. Formal announcements by both conferences are expected by tomorrow. In paris, face coverings have been expanded to include busy outdoor areas. The restrictions are a response to a rise in covid infections. Over the past week, france reported just under 11,000 new cases. Thats just a fraction of floridas new infections, even though france has three times as many people. And theres a new reward being offered for information related to the death of a key figure in the docuseries tiger king. The family of don lewis is offering 100,000 on lewiss disappearance in the series, he accuses carol baskin of killing her husband and then feeding him to her tigers. He makes a video about it. Fascinating documentary, tyler, i dont know if youve seen it. I have not seen that. I did watch a little bit of tiger king, however, but whatever. It was curious, let me say that. Frank holland, thank you. Thank you. We are at the highs of the session, folks. The dow up 315 points. That is right around where the high was earlier today. Lets look at the s p up about a fifth of a percent. Its trailing a little bit to the dow and trailing in a major way is the nasdaq, off about a. 5 or 49 points. Dipping now just below 11,000 again. All right, tyler, thank you. And the oil market is closing for the day. Lets go to peenergy desk. Wti is up. The move comes alongside positive data out of china including industrial output nearing pre pandemic levels that could hem demand across the continent but they are saying they see Oil Rebounding as more countries open. But slow progress on stimulus talks are still capping some of oils gains earlier in the day. Tyler, back over to you. All right, kate, thank you is he much. The s p 500 sitting. 5 below a record high. The latest poll shows its members holding cash the Cash Holdings of those members who have it has gone from 12 to 19 in the latest quarter. Michael is the founder of tiger 21. Michael, welcome. Good to have you with us. How many members does tiger 21 have and what is their geographic and net worth distribution tell me who im talking about here. Yeah. So, these are we just passed 800 members recently, alltime high. Weve been growing through the pandemic. We operate in four countries, the u. S. , canada, england, and switzerland. And more on the way. And the average the total members assets are about 80 billion. All of our members, on average, are about 1 in 10,000 by accomplishment if you look at their financial achievements. And so they would run is there i dont mean it bog down on this, but im reminded of the famous woody allen line, i never want to be a member of a club that would have me asa member. So, is there a low point you have to have 100 million to get in or what is it our members generally have created wealth in the 10 million to 1 billion range. But, tyler, for you youre youre welcome anytime. [ laughter ] most of our members built businesses over 30 years and and these are people who started these are first Generation Wealth creators. Our distinction, the part of the market that we own is first Generation Wealth creators, entrepreneurs, partners in businesses, ceos who come together in a monthly meeting. We have 60 different groups around the globe that meet now virtually. They used to meet in person. Weve continued unabated and continued growing through the pandemic because of this confidential setting of peer to peer learning that we provide. So, lets get to the real payoff here. And that is the fact that the Cash Holdings of these members have risen really by 50 from 12 to 19 in the most recent quarter. What have they sold and why are they making this move . Obviously, defensive reasons would explain it i assume . Sure. So this is an extraordinary change. Weve been tracking this number for more than a decade until this month, it never was above 13 and never below 11 . This is like a four or five or six sigma event. Nothing ever close to it. When you add to that Gold Holdings another 2 or 3 , mostly because our members have about 70 of their assets in public equity, private equity, and real estate, real estates the largest private equity next, public equity at about 21 or 22 , thats where its come from. Although, in trying to build resources prudently, obviously they started with the public equities because those are the most lick kidquid. Over time, as real estate funds pay off or they have more liquidity, they will not reinvest if they want to keep cash balances high. The answer is on the one hand, yes, it is very defensive. Members are deeply concerned about the gap between wall street and main street. People are hurting out on main street, the markets dont quite show that. And so they want to be prepared. But also as entrepreneurs, they want to pounce on an opportunity when it happens. And in markets like this, particularly on the private side but certainly in the public side, you can find amazing opportunities if you can move quickly, have the fortitude, and the knowledge. And thats what really characterizes our members across the board. Michael, id love to know, as you just said, your members are trying to prepare and for people at home who may not have 10 million or who may not have earned 10 million but they also want to be prepared and act defensively, do you feel like people at home might glean some lessons from this as well . Sure. First of all, it doesnt matter how many zeros you have on your balance sheet, you want to be conservatively positioned. And no matter how much you have, you have to look at your living expenses. In the case of wealthy americans on average, they live on about 2 of their assets so if you have 12 in cash, thats about six years. If youre in a different situation, you have to look at it. But the most important factor is you dont want to be put in a position to have to liquidate your best assets just at the wrong time. So by building cash reserves, you can avoid being forced to liquidate your best positions and, moreover, with cash you can bias sets at a discount wherever they are. You might be an expert in the Public Markets or in the private markets. But having cash is the asymmetry of protection on the downside, but waiting for opportunities on the upside. Michael, we have to leave it there. Thank you, and thank you for your very gracious offer of membership. I cant tell you how tickled i am. Thanks. You know, tyler, i was wondering where my invitation was, but maybe that will be the next time i come on. Its in the mail. Okay. All right. Thank you. But you know about those mailin ballots and stuff. Thats an issue im not even getting into. Thanks, tyler. Thanks, michael. Coming up in power movers, a deal thats anything but trash. A deal that might not develop. And a profit prediction that surprised the street. Plus, can it opy jumping af its report. And Cannabis Companies facing one tailwind after another but will the investors be seeing green . Well be back. Its massive capacity and ultralow lag time is already available in parts of select cities around the country. Which means businesses both large and small can innovate like never before. I want to correct something i said in the previous interview. My friend, dear friend of mine, points out it was not woody allen who said did he not want to be a member of any club who would have him as a member, it was groucho marks. Thanks for keeping me honest. Lets go on to power movers. Starting with kodak, the contract is now on hold, s. E. C. Looking into whether they broke the law about notifying news outlets about the deal before they told investors. Also looking at stock grants in the days leading up to that deal. And nicola motors has a new customers. It has a deal to make 2,500 electric garbage trucks for public services. Production expected to begin in 2023. And we end with footlocker. The company expecting to post a surpri surprise Second Quarter profit. The ceo credits the pentup demand created by the shutdown as well as the government stimulus money it has testified. Detailing 18 million in cost related to the recent social unrest. All right, tyler, thank you. Its been a tough time for publicly traded marijuana stocks, ands that even before the coronavirus crisis. Canopy growth has held up better. Thats down only 45 in the past year. A mere 45 . And adidi roy has more. Hi. Weve seen a lot of changes this year. Hi there. Canopy growth shares are soaring after its earnings beat before the bell this morning. Up about 8 or 9 . Till ray shares are also up and the earnings are out after the bell. But despite todays boost, both stocks are way down since last year, as though rich valuations have come down. You mentioned canopy shares have declined more than 45 yearoveryear. Tilray stock is down more than 80 since last year. Both companies have been dealing with oversupply issues and have undergone layoffs because the Canadian Retail market has been slow to roll out since legalization has been further hindered by the pandemic. And canopy has lost market share according to headset data as cheaper competitors have come in with prices rivalry the illegal market. Now investors are looking for financial discipline from the companies. Canopy says its top line beat today was driven in part by higher medical sales in canada and germany. Thats the good news. But, canadian recreational sales were down due to covid related store closures. One key miss, adjusted gross margin was 7 , well below the 30 the streak was looking for. On tilray earnings, analysts will be looking closely at those Gross Margins and operating expenses. Back to you. Thank you very much. A 23yearold golfer wins 2 million and the pga championship. But its what happened after the tournament that everybodys talking about, the wanna maker trophy was involved. Pga Champ Collin Morikawa will join us next on power lunch. 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. [ applause ] oh, boy. Give it back to him, seth. [ laughter ] he is the talk of the golf world, ladies and gentlemen. 23yearold collin morikawa. He won yesterdays pga championship and nearly 2 million. Perfectly timed eagle on the 16th hole, broke collin out of a tie with seven other players. He was so excited that when he received the wanna maker trophy that the lid fell off. He is the youngest pga champi championship win ers since before world war ii behind rory mcilroy and jack nicklaus. Collin joins us now off his historic win congratulations. It was a thrilling finish. Not only were there seven guys tied at what was it ten under, some of the guys and the guys at nine and eight were among the very best players in the world and you beat them. How does it feel its unbelievable we were having too big of a party, id say we all talk about getting socially distant now and, you know, i just knew to separate myself. Someone was going to play really good golf. I had to chip in on 14 obviously, the tee shot on 16. Converting that into an eagle. But the past, you know, not even 24 hours now have been pretty surreal. I love being in this position. Who doesnt love winning, right . And youre what, a year removed from cal berkeley, is that right . Thats correct. Yep. I got my degree, finished up in the Hospital Business last spring and, yeah, now were here congratulations the shot that will be remembered for years with this win was your t to tee shot on 16 what gave you the courage to pull out driver there and go for it yeah, you know, before the tournament, i never even thought about it we got lucky with the wind the tee is up. It just fit the perfect distance you know, obviously the drive ended up how i wanted it but it was literally how we planned it out one hop short of the green right on to the green, roll up next to the pin. And it kind of brute back memories that i worked on. It was similar to hole 14. So, you know, i was able to kind of go back in and look back at the good memories. I drew upon it for this hole on 16 it really goes to the point that golf is a mental game if can you go back to a memory where you played a similar hole before and did well, it can help your game well was that a seven or eight foot putt to get the eagle . Yeah. The putt was the biggest thing you can have a shot. You can have fun at it but if i didnt make that putt, you know, one shot lead with two to play is different than a two shot lead with two to play so you know, making that putt is crucial. Its not over. But we put ourselves in a very, very good position to close this thing out if we hit some quality shots coming down the stretch. Collin, im not sure if you saw this news release. But espns pga championship coverage is cables most watched in ten years and that apparently young viewers is what helped drive that increase, saying that viewership among adults is up 76 from 2019. I know youre probably a very humble person. Do you think youre part of the reason why or do you think golf is tracting is attracting a younger viewer i wish i was a huge reason why. I think everybody would like to see bulked up bryson or someone else, you know, brooks how he was playing and tiger whatever it was but, yeah, you know, i think with everything going on, all the quarantine and covid19, you know, golf has been a real good outlet for a lot of people to either pick the sport up again or to keep playing what they love to do it gets us outside it gets us away from people. Something youre able to do safely so on our end, i think weve been very fortunate to be really one of the first sports back pga tour, pga of america has done an amazing job coming back. Thats why younger viewers, you know, they like seeing a young person play well but its tracted them a little more its cool to see them. Very cool stat for sure. Zblpt. So the obvious question, collin, it is harder to play with fans or harder to play without fans and if there were fans there while you were lining up that eight foot putt orphans there while you were on the 16th tee, how would it have been different . I wouldnt say its harder or easier its been an adjustment though weve been playing without fans for two months and its definitely been an adjustment. Ive been in two playoffs already and not having fans, you dont ghaet full sense of adrenaline you dont get that just laser focus that the fans and crowds will put on you. I think thats what veteran players do the best. They know how to channel the fans into great energy and really separate themselves from other players that have never been down, you know, down that road it kind of puts them at an advantage. In are fans on 16, who knows how that would have went the tee shot, if i hit that tee shot that, would have the place would have went crazy. If i made that putt, the place would have went crazy. Then that two shot lead, is you know, still very tight lead. With crowds coming down 17 obviously a shorter part three, not an easy hole but we miss them we miss the fans very, very dearly well, collin, congratulations. A very popular win as i hope you appreciate good luck with your unfolding career above all, stay healthy. Collin morikawa, thank you thank you good interview. So New Hampshire state motto is live free or die but massachusetts seems to have a little problem witthe eeh fr part well discuss coming up next welcome back the dow is up 348 point. The work from home trend is causing tensions between neighboring states massachusetts and New Hampshire. Robert frank has more now on the border war over taxes. Robert good to see you New Hampshire firing the first of what is likely to be a series of shots between states over how to tax remote workers. Now New Hampshires governor telling cnbc this morning that his attorney general is reviewing a massachusetts rule that would continue to tax out of state workers even if they have been working from home during covid19. When it comes to the new yorks and massachusettses and californians trying to pick the pockets of people of New Hampshire, were going to stand up for them every time now more than two dozen states will say they will continue to collect income taxes from former commuters now working from if home new york collects a fifth of the income taxes or 700 million a month from commuters tax experts say that as remote work becomes a lot more common, its going to be up to the federal courts to decide whether states can tax people who dont live there and now dont work there. Guys robert, such an interesting point and story. I wonder even after covid19 has perhaps subsided, do you think this will change the way corporations decide to stay . Absolutely. St if 80 of the workforce is remote, then why why locate that office in a state or city that has high taxes and is going to double tax you . I think a lot of companies in new york and new york city are going to think about relocating to lower tax states. Robert, thank you tyler, back to you. All right the dow is going out at 350 points higher. A good day for the markets overall. There you see it at 345. Thank you for watching power lunch. Well see you tomorrow closing bell starts right now. It certainly does good afternoon welcome to closing bell. Im along sara eisen session highs h lets have a look at what is driving the action a surge in cyclical value names, airlines, retail, travel stocks and banks. Up today tech is taking a bit of a bre l breather slowing of new covid19 cases is helping to boost the sentiment a little bit and china tensions are continuing to simmer as beijing sanctions 11 u. S. Officials and tiktok continues as a lightning rod. The s p 500 up about