Transcripts For CNBC Closing Bell 20240712

59 minutes left of trade nasdaq 100,. 2 from a record closing high set in february hard to believe. Seriously is hard to believe. Were up 0. 4 . Coming up on todays show, despite growing dissent, tech stocks once again nearing all time highs well discuss the outlook for the sector amid new challenges with investor dan niles. Plus, powerful words from one of the biggest icons in sports, nba lenld, Kareem Abduljabbar will join us with his compelling message for all americans about the need for what he calls a rush to justice. Lets focus in on the big stories we are watching in this final hour of trade. Mike tracking the Market Action as always. Julia boorstin following the cory russ of dissent inside facebook and courtney covering the civil unrest mike, start us off with the Broader Market and this continued strength we are seeing yes, continued, persistent strength its a day when its gone a little bit away from the nasdaq leaders that were were so familiar with. That trend has remained in place. Did want to look at the nasdaq 100. It is fool hardy to call any kind of a top in a High Conviction way nasdaq 100. Been the leadership area of the strongest sub sector of this market for years its over five years has increased more than half again as much as the s p has however, take a look at this very, very steep looking v here. Its almost complete just more elongated on this side of it. Maybe understandable that its coming off the boil a little bit and buyers are going to other areas now and the markets able to stay afloat eve within that happening. Wanted to point out this v from that low in late 2018. What happened after it new high pullback. In other words, you kind of struggled for a while to make further upside after you had the huge snapback. Not saying thats the script from here, but its understand that you would look at the really step assent weve had and say maybe its time to look elsewhere. Then want to welcome at the s p now. We cant talk too much about the fact the s p is down 5 . More than 5 through may actually 10 off it highs in a normal year. Under different circumstances, wed say boy, why is the market struggling so much where as now why is the market down but look at history. What it says when youre at various return levels through may, were right here. So basically, if youre down more than 5 through may, historically since 1950 according to lpl financials who i asked for this, youre only up for the rest of the year less than 2 on average so the rule is, the worst youve done through may tends to be the more worst of the returns through the year no idea if this applies but it is worth considering where we are in a year to date basis. Field position wise in determines just exactly how much is left in the tech. Now down 35 up 40 after that. So maybe the pacing of this particular year is extremely different but did want the throw that out there, guys and when people ask you, mike, why, why does the market persistently higher here in the face of double digit unemployment, double digit gdp growth, civil unrest, whats your answer . Its a combination of multiple things. One is weve talked about the composition of the indexes thats had a lot to do with the more resilient parts of the economy driving the intex dexes, but also tremendous fiscal and monetary support low cost of capital. The math makes it work so you can justify paying more for equities the stock market likes Nothing Better than a mass kitchen sink environment where theres the freedom to say we dont have to wait for things to get good, just less bad. You really have had a remarkable recovery off those deaths, but those are i think the forces that have driven it and by the way, with all that, the reluctance of investors to believe it and the very question youre asking, the fact that that is on the tip of everybodys tongue is kind of the reason that it keeps driving higher because it just feeds on that caution people feel underinvested every day. It doesnt go down that bar chart is fascinating. I guess its suggesting theres no typical mean reversion or correction in the second half of the year if the first half has been particularly strong or particularly weak and maybe suggests that the fundamentals matter if the fundamentals in the economy are good for the first five months, probably good in the second seven months and then equity markets will correlate with that. Well there is persistence in returns for the market so if youve had a good start to the year, tends to be indicating something decent traditionally, from may to october, those months are the weakest of the year so if you havent had a little bit of build up of gains by may, maybe you havent had the opportunity to do it and of course this is on average over the course of some 70 years, so obviously individual years can have very different cadence to them. Thanks so much. See you again later. Facebook holding an employee town hall meeting amid dissent inside the company on posts from President Trump. Julia. Thats right. Mark zuckerberg defending himself in a meeting for facebook employees that started just over an hour ago. The New York Times reporting that zuckerberg said in this meeting that the decision not to flag President Trumps post quote when the looting starts, the shooting starts is what he called a tough decision but quote, pretty thorough zuckerberg reportedly saying the companys free speech policies quote show that the right action where we are now is to leave this up. Now if zuckerbergs decision to leave up trumps post prompted a walkout of hundreds of employees yesterday. Sources say that employees are working on specific demands for facebook management. This comes after last night. An engineer posting on linkedin saying he submitted his resignation writing i cannot stand by facebooks continued refusal on messages radicalizing the American Public and sandburg spoke with leaders, they were quote disappointed and by zuckerbergs explanations and today, facebooks inta gram looks a little different and is full of black careescreens as p using that platform look to call attention to the deaths of george floyd and other black americans. It will be interesting to see what else comes out of this meeting that zuckerberg is holding with employees sounds like the q a session is getting heated weve seen various employee protests against Tech Companies over the last couple of years. Has this been the most pronounce ed as it relates to facebook i was also interested, we discussed this yesterday, facebooks own statement out said we encourage employees to speak up if they disagree with management i just wonder this now sets a precedent Going Forward of quite regular clashes between rank and file employees and management. Well this is the most dramatic example weve seen of facebook employee backlash to management in many ways, it seems more dramatic than the kind of criticism facebook management faced in the Cambridge Analytica scandal. Were really see iing facebook employees take to other platforms to voice their concern and frustrations and were seeing it on linkedin. On twitter and over the weekend, we heard that, heard from sources that a lot of employees were frustrated they were telling their management about this, but then it really escalated and they started tweeting more publicly i would just pointout that facebook does have a culture of really engaging with their employees. They have these weekly meetings. Zuckerberg does these weekly meetings with his employees as a matter of course so it is very common for them to have these engagements. Less common for the frustration of employees to become such a public thing julia, thank you. Protests spreading across the country now for a seventh straight night in response to the death of george floyd with some turning destructive it comes as many businesses were just starting to emerge from the coronavirus lockdown courtney has a look at how some retailers are responding so the coronavirus shutdown really marked the most unprecedented time in retail in this countrys history and all of this civil unrest is now just further compounding and complicating retails pain when youre thinking about reopening and some areas of the country, retail is open for business and others, its not some areas are hot spot frs civil unrest and then others arent local store managers in some cases are making decisions and then informing retail headquarters later for safety purposes so whats going on in retail is perhaps more local than ever before, which makes it very difficult to measure in aggregate. Even for some of these retailers themselves minneapolis mall of america and the highend south coast plaza mall in california are among those that planned to reopen monday but the protests and violence with keeping both still closed North Park Mall and the galleria in dallas both closed after reopening post the pandemic and those locations remain closed. Now macys had put plywood up over the windows at the Herald Square store location in new york city as the civil unrest began to simmer. Still, last night, some of those gathering outside did manage to penetrate through that plywood im told though that damage was minimal inside there were Police Inside and then security personnel have been inside during the score closure so they were really able to contain it and get the folks back outside, but till, some of these images are iconic, hard to look at and really sort of symbolic as whats going on in our country as we struggle to reopen and just with the citizens themselves. Yeah, that was quite something to see Herald Square like that. Cou courtney, thank you. Fresh data shedding light on the consumer as more states move towards reopening following coronavirus related closures for instance, visa is seeing its u. S. Payments volume fall less than expect d for may. Only dropping 5 compared to an 18 fall in april. Some of the biggest travel agencies may be on the verge of a bounce back. Reporting that u. S. Downloads of travel apps have returned to preban pandemic levels combined sessions of the apps have jumped 5 in the last ten days. Apples mobility data showing an uptick of people getting out of the house. Am ls data shows an increase in requests for walking and driving directions still, those requests for transit directions remain as less than half of their previous levels and then theres Deutsche Bank using mobile phone locatio data to track store traffic. This chart shows dicks sporting goods, nordstrom, simon malls and five below indicating a significant increase in travel with nordstrom still struggling to recover just a sign that the activity, economic activity, is picking up and art cashin earlier said Something Interesting as it relates to h rally, which has caught a lot o f people off guard. That was this there was this big fear that once the shutdowns ended, people were is still going to be too square e scaredu and book travel and go to restaurants and go to retail and the High Frequency data is showing a different story. That theres pent up demand and a willingness to go out. Nowhere near back the levels an still dealing with unemployment and a lot of economic losses, but you can see the trend is going higher and perhaps thats what the stock market is teeing off of absolutely. And tallies as well with the data and commentary we got from various bank ceos last week when they were presenting at conferences. The added point i would say is this doesnt require a vaccine to be successful, for example, to continue. Maybe it doesnt as you say get back to previous peaks anytime soon, but it certainly shouldnt need to fall again to the lows we just saw and should continue to improve because most people now have the expectation that even if theres a pick up in cases and deaths again later this year, that were not going to go back to the level of economic shutdown or indeed any economic shutdown unless its wild card worst Case Scenario second spike data and thats i guess encourage iing as well asu say, weve seen a pick up, it should couldnt and shouldnt get much worse unless we see a much, much worse second wave than perhaps people expect and obviously the risk of that, go ahead no, no, finish the thought. I was just going to say i think the risk of that the obviously the second wave, which you know appears to be b a risk that market dubt seem to be pricing in or at least worried about for the moment and of course the protests. And what kind of prolonged action and activity thats going to have when it comes to store, restaurants reopening and whether it will start to seep into this High Frequency data. Absolutely. Another serious consideration. Hopefully a short lived one. 45 minutes left of the session up about a third of 1 coming up, well speak with the president of bet about his companys steps and parent vie c brcbs to raise awareness about racism and supporting their communities. Youre watching closing bell on cnbc ever since weve gone mobile on the now platform, somethings gotten into the office. I hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Heres what you saw if you turned on bet at 5 00 p. M. Yesterday. Wow, bet along with viacom, cbss other networks, ran that 8 46 video in a tribute to george floyd. The length of the clip is the same amount of time that a Police Officer had his knee pressed on floyds neck in a widely viewed video. Just one of many statements made by companies over the ls few days on rising racial tensions in the u. S joining us for more now is scott mills, president of b. E. T. Network. Thanl thanks for joining us. Thank you for having me unbelievably powerful, that clip y not even a clip, you lent 8 4 seconds to that. Whats been the reaction to the clip the reaction has been exextraordinary nairly strong and positive and what were seeing across the spectrum is that individuals and companies are really valuing the way that b. E. T. And the entire viacom cbs ecosystem is leaning in to this National Crisis that we find ourselves in what do you hope ultimately comes out of it, scott you and so many others are raising awareness in a visceral way and companies are responding and speaking to their employees about it, but what kind of meaningful reaction can come out of snit. I think thats the key. What we focused at b. E. T. Is what are the outcomes required here and the important thing is to understand what the underlying problem is here. A lot of people are focused on the fact that the, the unrest is tied specifically to the spate of recent murders weve had and thats absolutely true but the broader context of the unrest is that people are fundamentally saying we require a change in this country this disparate treatment of the black American Community the effect of lethal racism on this community, it has to change and whats going to catalyze that change. And so we believe that the Current Events are creating a moment where the country is uniquely focused because the reality as we know is that theres been a number of lethal racist incidents across the years, across the decades, this is not new, but what we see at this moment is that the country is uniquely focused. Not just the country, but the world when you see the global protests happening so we think a couple of very important things can happen. First and foremost, that theres going to be true leadership that will step to the floor and say that we will take on the issues that understopin this create policies and practices that will ensure that africanamericans are treat ed with the same protections and same dignities as every other community in this country. And we believe that the role that we can play at b. E. T. By mobilizing our community by galvanizing our Corporate Partners and organizations with who we work to focus on this issue will allow us to play a role and help drive those out. Scott, clearly, including that eight minute clip yesterday and i know things have continued today. Have you been overall encouraged or disappointed when you look across the rest of Corporate America with their level of response in particul response particularly in the media space. I think im ultimately encouraged by the way Corporate America is responding to this. I think i say that because weve reached out to a number of our partners to say here are all the things were oing. Were doing a new special tonight called justice now where were bringing in leaders from the activists from political communities, cory booker, tameka mallory, john legend, ti, derek johnson, speak specifically to the issues that are driving the situation today and to propose solutions for our community and for the country at large when we share with our Corporate Partners that were doing that, they say how can we participate and support . Were doing a town hall later this week where were going to give voice to all the members of our community who wish to express their fear, rage, frustration, their hopes for how this situation will resolve. And we have a tremendous support there. We also announced today were holding our first ever president ial forum where we invited President Trump and joe biden to participate in b. E. T. President ial forum where they share with the africanAmerican Community exactly what theyre committed to do to improve the condition and address the issues that are plaguing the africanAmerican Community well i hope that actually takes place, and i imagine one question that might come up is an idea that we heard about this week on cnbc from your companys founder, robert johnson, suggesting reparations be paid to descendants of slaves of this country, a 14 trillion endeavor to end this injustice in the system is that something you guys see as something political palatable in this environment . I have a tremendous respect for bob johnson. One of the highlights of my professional career was working for bob. He has extraordinary business and hes focused on a very important issue. The country owes an extraordinary debt to the africanAmerican Community for the deprivations inflected upon it at b. E. T. , were very focused on how we can work with our suite of Corporate Partners and civic organizations to drive the change and assist leaders across the country in implementing the policies, procedures and practices that can actually put an end to lethal racism and thats where our focus is. Sounds like youre not going there on the reparation, scott, we appreciate your time. Thank you. Thank you very much scott mills coming up, stitch fix has a message for some of its California Based stylists. Relocate or lose your job. Well explain whats behand that move next and as we head to break, a quick check on bonds for you. Yields making a bit of a move higher today the tenyear yield currently hovering around. 68 goes a long with the rally in stocks weve seen out of bonds into stocks. Though yields not as low as what amazon managed to raise. 10 million in the debt market yesterday. Some among the lowest weve ever seen for Corporate America closing bell will be right back. Wells fargo dropping hundreds of independent auto dealerships as customers according to a new report. The bank says it will no longer accept auto loan applications from most of those businesses. Hugh joins us now with the story. What can you tell us independent dealership, you have to think of those versus the franchise dealerships. Loi like a honda, a ford deal eershp and independent dealerships tend to focus on used cars. So what wells fargo is saying and the line from wells fargo is that theyre doing this because they see the credit deteriorate potentially. Theyre worried about the way this is going to come back to them instead of spending billions and billions of dollars to shore up their reserves of credit losses. I think its so interesting theyve taken this step and certainly there will be considerations about how the credit risks in this sub sector, but krouf got a quote in your article from what the ceo was talking about last friday when he presented it. The bernstein conference, which related to the flexibility wells fargo has with the Asset Capital it faces and it cant continue to be loaning and therefore generating assets to all areas it therefore faces more stringent controls than other banks it has to cut back in some areas. This is one its chosen to do so i think youre right. I think theyre underplaying the cap the fed has on them. Especially with a lot of corporate clients rushing to come in and take out those huge billion dollar lines theyre stuck in a position where they have to pick and choose among which customers to keep and which to cut loose and it appears at the moment theyve decided to cut loose their independent car dealerships, which would have an impact on the amount of credit available to people as they attempt to buy used cars. Whats your take as to whether this is sort of wells fargo uniquely being conservative or whether we should be more worry ied about credit lotszs coming down the pike in all sorts of industry, incloud iing autos . Theres been a report that particularly in the subprime auto loan space that people have 40,000 loans on 30,000 cars. The costs of cars have been rising so progressively that these are really expensive things to have i do think you know going back to the specifics and to answer your question, it is wells fargo centric because of the asset cap and you know the ceo has said that basically, its been hard for them and its forced them to do things they prefer not to go in eco rcovid. All right, thank you for joining us very interesting story on wells fargo. You can read all ant it on cnbc. Com online retailer stitch fix has a message for some of its California Base stylists relocate or lose your job. Kate rooney has the details on whats behind this move. Kate hey, sara, so stitch fix is cutting 1400 jobs in california but with a caveat, California Based stylists can keep their jobs if they move to a less expen save city. The ceo saying theyre investing in other styling hubs colluding dallas, pittsburgh and theyve said the rise iing costd complexity of operating ng the state add to the debate over the states appeal for business and of course you have a debate over tech workers we had twitter, square and facebook all recently announcing they could, that theyre employees could work from home guys thanks so much for that time for a cnbc news update with sue herera hi, sue. Hello, everybody. Heres whats happening. This developing in just the last few minutes. The state of minnesota is filing a human rights complaint against the Minneapolis Police department over the death of george floyd this as an attorney representing floyds family said he expects the other three officers involved will be charged before floyds funeral, which is a week from today canadian Prime Minister Justin Trudeau pausing for more than 20 sekconds when asked abot President Trump and the u. S. Protests before finally ai lly quote, we all windchill in who as what is going on in the United States, end quote, although he acknowledged theres racism in his country as well. Dr. Anthony fauci said hes concerned that social disruption, violence and lack of masks during large protests could lead to a resurgence of the coronavirus. And amazon is offering back up family care to its more than 650,000 u. S. Employees each worker will be given up to ten days of emergency back up child or adult care between now and october. I will send it back to you see you again in an hour look forward to it. Thank you very much. Still ahead here, Kareem Abduljabbar penning powerful words in a Los Angeles Times oped writie ining racism in am is like dust in the air. It seems invisible until youre choking on it. Hell join us with his message for ru ta sho justice in america coming up later in the show. Dont go anywhere. [announcer] if youve tried college but never finished, snhu lets you transfer up to 90 credits toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Shares of tiffanys are off about 9 they were halted after dropping about 11. 5 . This is on the heels of headl e headlines from womens wear daily that lvmh perhaps has reservations about pursuing fully the deal to actually acquire tiffany. This is according to sources close to the matter. They say the reservations happen at the board level with regard to whether or not a deal should be consummated given the fact that the covid19 pandemic has such a huge Economic Impact and also whats happening with the civil unrest in the United States according to those sources, no decision has been made, however, it is having a big impact on the stock. But 5. 5 million shares of tiffany have traded on an average day. Over the last ten day, only about 10 million shares so a big uptick in volume there back to you. By the way the only thing add we have reached out to both parties for comment and lweal lt you know if we hear back from them dont expect a comment. Though i would say womens wear daily does have come credibility on this. They warned in march that the victorias secret deal was in jeopardy and that was before that deal ultimately got broken up so well see what happens after these board concerns at lvmh after the break, despite growing dissent at facebook, tech stocks are approaching all time highs well ask dan niles how investors should be thinking about the sector during these tough times. 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. Dont get mad get e trade and start trading our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Civil unrest putting social media in the spotlight dan, thanks for, good to see u you. Thanks for joining us. I think you own facebook its trading near an all time high are now not troubled by the way its handled some of the recent criticism the president ial tweets and posts on facebook and the fact that its own employs are staging a virtual walkout because of their dissatisfaction because of it . Yeah i think thats makes this country great im an immigrant and a if you lock at facebook, everybody should be able to expres their opinion, but i think Mark Zuckerberg much like tim cook has done a really good job handling this administration his view is look, everybody should be allowed to express their opinions and you should be able to judge for yourself what these people say and i think thats a good policy from a business standpoint, also, youre not getting boss wise with the Current Administration and so i think thats a big positive relative to a twitter that seems to have take ben on itself to sort of wage war with the Current Administration and you know morally, maybe thats what they feel they should be doing but if youre an investor many tnot st not sure necessarily great for you. I still like facebook. Were short twitter. Were that Regulatory Risk but you know i think theres less in some ways with facebook because of the standstill on this realistically, dan though, the fact youre short twitter, i get theyre taking a different policy stance tat moment, but if you think Regulatory Risk is a possibility that could affect twitter, surely that would come by a Government Action likely even legislation in due course if not immediately, that would affect both companies the aim well, you have to remember something. This is going to take it very, very long time if if you think back to cambridge analytic, remember how much air time you u spent on that facebook stocks at an all time record so these things do matter. Much like the riots. The stock market is north, but when martin louther king got sho or rodney king you have to take a longer term view on this things are going to take a long time to play out youre worried about that Political Risk piece of it you can hedge out part of that by saying okay, this companys better positioned than this other one and try to take some of that risk out of the equation im much more focused on facebook shops i love the advertising hes doing relative to twitter and e those other factors when i look at this and its part of a bigger portfolio dan, what about tech valuations overall the fact weve seen this extraordinary comeback for the market and for the nasdaq in particular how do they look to you and where else do you see opportunities there . Yeah, no its a great question, sara youve had a 37 rally for the s p 500. And a lot of stocks are near all time record highs and so the valuati valuation, the market is at an all time record high 1. 6 times market cap to sale so as i put out in a tweet a day or two oago, were looking at every long position and trying to analyze that and say okay, weve had this great rally on optimists. Now companies are going to have to report in the june quarter. Our short basket, were ratcheting that up as we go for our names one by one and say okay, these are the companies that have risks to a lower reopening than we thought. We saw disney after having made some good money off this recent bounce because theyre opening the parks on a slower ked than we thought theres other names where theyve got high exposure to china where were adding more shorts related to that because you know, we fully expect the conflict with china to escalate as we gettowards the november elections. Thats how how try to hedge up the risk for valuation i was around in 20 00. They got insane there in specific areas they could always get higher so you have to try to hedge some of that out you bought viacom yeah, we still own viacom and heres a good example of sarahs question on valuation. You look at disneys pe ratio, its around 60 times viacom, its around five to six times. So for me, thats a much better risk to be taking at these level, which is why we still own it and we dont think theres as much risk to the numbers there so thats you know, an example of saras question around valuation. Stocks have rallied, but at these level, the numbers have downside viacoms number rs okay and more comfort bable owning it. Quick final question. Your view on apple as we stand always seem to get an apple question i think apples going to have a great quarter because the se2 is doing very well because were at that 400 price point, my problem with apple iphones to some degree. But remember a person buying an iphone today is not going to be buying one in the Fourth Quarter so with apples valuation in mid 20 times, id rather own a whole bunch of other names that are more reasonable to me. Thanks so much. My pleasure, wilfred. After the break, green schuettes for the ipo market details on that story and much more when we take you inside the market zone. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. 12 minutes left. We are now in the closing bell market zone. Commercial free coverage going into the close joining us today, mike here to break down these crucial moments of the tad traiding day and today weve got allied chief investment strategist, lindsey bell here as well. With the dow up about 160 points, wee start with the prodder market allaire with his thoughts today. This notion that it doesnt matter what happens to fundamentals, it doesnt matter what happens the corporate earnings it doesnt matter what happens to Economic Growth because the fed will buy what i want to buy. Thats the mind set of the market right now lindsey, is it all about the fed . It is pretsy safety safe to say investors are relying on the fed. With that being said, mohammed makes a good point theres just a lot of uncertainty out there. Were making progress on reopening. On vaccines and treatments but were not certain about a second wave we have that 600 bonus in unemployment expiring in july. What does extra stimulus come in the form of at the end of summer so i think theres still enough uncertainty in the markets there are 40 Million People unemployed 15 Million People not paying their credit cards that it is a little bit questionable that markets are trading at these levels so easily mike, whether its the fed specifically or just central bank and government stimulus more broadly, its had a big impact and interesting today that the high er the session cam pretty close to the european close and just wanted to point out the fact that germany closed up 3. 8 today on talk of optimism around more stimulus coming out of germany. That helped risk sentiment earlier this morning here in the u. S. , too. For sure and the emerging market, etfs up 2 today its as if the world is kind of looked at its sort of risk allocation and said we may not own enough risk if were going to have a stimulus aided recovery here. Doesnt mean everyones right but the dollar going down, the rest of the World Markets having a little bit of catch up move and then continuing to support here the credit markets i keep coming back to, incredibly strong again today. You have corporate spreads tightening up. Oil prices going up. Helping that situation as well so you know, a lot of things are working in favor of this idea of incremental progress in the equity markets even if in fact its all about whats to come and we dont yet know if in fact this economic comeback is going to be fast enough to satisfy current valuations but i think its easy enough to see ha kind of levers are being pulled to get us here. Im glad you brought up the credit market, mike. Did you see an amazon deal yesterday . I mean they priced i think zero to 15 basis points pretty much as safe as cash. I think they were able to raise 10 billion. Today was another very busy day. Seems like a microcosm for whats happening in the market that theyre willing to take the risk despite the challenges. And not even seeing risk when b it comes to amazon so you have a combination of enormous Companies Like amazon that really dont need the money but theyre happy to take it at almost no cost and obviously put it to om use that they think is valuable on the other side, you have very much Balance Sheet constrained distress Type Companies get itig a lifeline from these markets. Maybe they have to pay up more but its creating a buffer between you know, survival to the next phase here. So thats, those two things are helping out and theyre sort of creating this perception of a cushion underneath the markets how far it takes us again, its hard to know, but the thirst for credit is definitely not yet been saving. I still wonder, weve had this debate before as it relateded to netflix i wonder if its a sign of a market top, a company that stops at an all time record high and they raise money by the debt markets as opposed to the equit markets. Any way, i get the corporate finance, i just think its worth noting s p 500 up civil unrest protests across the country are posing a new challenge for restaurants just as theyre beginning to reopen and kate has those details for us well restaurant transaction data was beginning to improve as of last week total transactions still declined by 18 at major chains as of may 24th full Service Transactions fell by 49 and Quick Service by 17 . Some 320,000 restaurant units in the u. S. Are now allowed to offer some level of on premise dining but as things open up, some are facing new challenges in the wake of protests limiting some operations are curfewing in place. Companies like mcdonalds have had to limit some hours. Mcdonalds u. S. President as well as starbucks ceo have both spoken out on Racial Injustice thank you warner music is set to price its highly anticipated ipo after the bell leslie picker, back on closing bell welcome back, leslie hey, sara thank you so much. Warner music group is the label for artists like bruno mars, ed sheerhan and cardib. The company will likely price toward the higher end of the range which will allow the family to get a is 1. 8 billion payout warner music wont receive any proceeds from the sale warner music and several other deals are helping reopen the ipo market which was slammed shut due to the volatility that accompanied the pandemic i know theres been back and forth in the Music Industry and streaming industry in the last couple of years, but huge credit goes to him for seizing this asset in 2011 when the Music Industry was still kind of on its knees in trying to figure out how to be profit nbl the age of streaming and online music consumption as opposed to cds. And theyve really been able to do so especially growing that streaming part of the business thats the biggest revenue driver and growth part of their business its allowed them to really weather the storm in this anyone of covid where things that require more of a physical presence, which represents a decent chunk of their revenue stream, theyve kind of come under pressure with people not going into stores to purchase physical cds and so forth. People arent going to concerts anymore. But hes been able to grow streaming, which is higher margin and of course, it has more durability in times like this, which is enabled him toolg public rig to go public good to have you back see you soon lindsey bell test of the ipo market or not so much because this is an example of a company as leslie points out thats been able to weather the covid storm particularly well i do think this is an important milestone for the ipo market as we get past the pre ko rid crisis so i think this is a very good sign its showing that the markets are operating efficiently. Its another president obaositit week weeks reopened again so this makes Investor Sentiment feel good. So this is a positive overall. Auto stocks outperforming after the latest reading on auto sales. Phil has the details hi, phil were talking about the may sales. Remember these are sale frs the manufacturing plant to auto dealers. This is not you and i going out to a dealership and the numbers for may better than people were expecting. Most of these plans were shut down for the first half of the month. The smaller than expected decline from the automakers that did report sales up 50 compared to april rental fleet sales theyre not buying new vehicles. They plunged in may. The estimate is for sales between about 118 rand 12 million vehicles the pace of sales. Tuohey toyota, one of the automakers that did report sales, a decline of 25. 1 and hundryundai down 12. 9 . Many were expegting a greater decline than that. Well get the official number in terms of the pace of sales probably within the next couple of hours guys back to you interesting to see the stocks up yes definitely go ahead. For the automakers, they keep moving higher in the last couple of days. Thanks so much. Lindsey, i was just going to pivot to where you stand on this sort of sub sector here. And whether or not theyve bounced sufficiently yet given the outlook and how cyclical theyre likely to perform. What i find interesting is the difference between the auto sector and housing market. The housing market, these bigger purchases, it seems like consumers are feeling more comfortable and confident about putting their money towards those bigger splurges than Something Like a car that maybe theyre able to use for a lot longer all right just under two minutes to go of trading. Mike, what are you see ng the market internals relatively strong the headlines and big caps are underperforming the average stocks been better than 31 overall volume, not high thats not unusual in this kind of an upward grind of the market also want to look at new 52week highs and lows s in nasdaq, strong lopsided nur number this is actually been one of those stubborn indicators that has not perked up as much you might expect but it is having a better day today even though the nasdaq is underperforming then the volatility index is finally looking like it might print a new low for this post crash period here. Below 27 i keep talking about how its been reluctant to make a new low even though the market was making new highs this is a positive still not crashing two months after the low in 2018, we were well back to normal level, but this was a bigger, deeper shock than that one was. Thank you very much 45 minutes left. S p 500 up 0. 8 . The dois ws up, session high about a percent or so. Previous high of the day came around 10 00, 11 00 a. M. Or so we are rallying pretty aggressive in the last 20 minutes or so. Take us to fresh session highs nasdaq lags a bit. Its up half of 1 all 11 sectors now in the green. Energy, material, industrials top of the pile. A. M. At the bottom, Consumer Staples and Communication Services but there in the green, we have a softer doll already today, but it has improved throughout the session. Oil up 4 . Gold down 1 the dow up just over 1 . A strong finish with the do rising more than 260 points into the close. Welcome back, everyone if you are just joining us, im sara with wilfred and mike take a look at how we finished up the day on wall street. Near the highs of f the session. Saw that little tick up into the close there. No real clear catalyst there continues to be a lot of skepticism around this rally given some of the challenges we face economically and financially. But but theres the stock market closing up, s p. 8 , third day in a row of gains. Nasdaq up. 6 . Tech had been lagging earlier in the day, joined the party and everybody closed higher. Energy, materials and industrials at the top of the pack the russell 2000 also had a pretty strong day closing up less than 1 investors are now awaiting earnings from zoom video which has been one of the hottest stocks on wall street. Well have instant analysis once those results are out the First Time Since covid19 that we will hear how the Company Actually did plus, well ask nba hall of famer and political activist, Kareem Abduljabbar, about how the nation can fix the crisis of Racial Injustice and what big business can do. Join iing us to talk about the market today though, allied chief investment strategist, lindsey bell still with us first to you, mike, another strong gain. If you look at what took us there, you dont usually see energy and materials on top and a lot of the economically sensitive sectors like industrials and financials played big part as well. Thats been the story for the most part with certain extepgs sepgss, the story for a week r or two theres been a broadening out clearly the market felt those secular type stocks were not going to be the thing to take us past it because basically, the trade and laggard groups where you could find some performance and some exposure to the theme of an economic reopening so if youre the type to look at the market and say whats the message its sending and should we be encouraged or discouraged . Encouraged really no headline driven moves, but its mostly just investors feeling they have to gain further exposure to a better economy. That being said, youreing pockets of froth pop up. Youre seeing this sense that prps the markets kind of pulling more people in before it has to have a pullback but right now, it seems like its tough to bet against this idea that a the market seems well supported around these levels. Professor, are you eancourage or worried about pockets of froth to steal a couple of terms from mike just there no, im very earn couraged. As i said two months ago, the tremendous liquidity that was provided by the Federal Reserve far greater than the financial crisis 2008 and 09 and we know its not ooeven all there yet its going fuel a rally and its going to fuel a rally in 2021 and i think the market is saying wow, you know all these dollars, youre not going to get any fixed income Interest Rates. Im going to go into stocks. B i think this rally has further to go. It has all the doubt uers there, but its the liquidity that the fed provided that i think is the prime, determinant professor siegel, when you think of markets as opposed to economies, does the fed easterly quidty predominantly still just stay in the u. S. Clearly, u. S. Markets have significantly outperformed year to date and particularly on the rebound. Does that make sense to you when you consider the size of the fed easterly quidty, which does significantly bigger than some other International Central banks . Well theres been a couple of things first of all, we know that tech has done the best and the biggest Tech Companies are in the United States. So thats certainly one of the reasons for the outperformance and i think that the fed and the federal government, not just the Federal Reserve, but the paycheck protection program, the tax cuts Brian Moynihan was on your show cnbc last week saying it was remarkable small savers 20 higher checking accounts than last year. This liquidity cant be spent, things are just beginning to open up, but it sort of reminds me as a historian looking back at just after world war ii, where we had tremendous increase also in Government Debt and the fed and liquidity and that set a post war boom that surprised everybody and i think this liquidity is just waiting there just like it did back you know in the early 50s to break down the market and i think thats why the market is up so much right now. Lindsey, you know it comes against the backdrop of these images playing out across the United States of social unrest and in some cases, violence and looting with the president you know threatening military force of state and lo local governments cant xwit under control. How do investors reg terror tiss and how could that have an impact on businesses just starting to reopen what were seeing is alarming from a protest and rioting perspective and you know, you look back though, you look at rodney king. You look at mlk even when he was assassinated and that was, those riots and protests last for quite a while and what you saw as the markets didnt really react. That is because the market is actually forward looking and because they dont last that long, they dont have a major Economic Impact, so the markets able to look through that. But from a reopening standpoint, it does raise more question marks, also more question marks about what a second wave of coronavirus could look like, so i think you have to take into consideration. Professor siegel, whats your assessment of the likely direction of the u. S. Dollar and off the back of that, commodities from here. Well i you know weve seen the dollar sink and by the way, thats a positive for stocks remember 40 of s p earnings are gained abroad so a falling dollar is positive for u. S. Stocks i think all the liquidity that was provided by the fed is one of the things that is pushing down the toll r lar. Another source of stimulus is depreciation of the dollar so if the dollar continues to go do down, thats good for u. S. Stocks also all that liquidity to me, i think thats going to be feeding into commodities again, im not predicting you know, rampant inflation, hyper inflation, but i think 2021 and 22, for the first time in decades, were going to get inflation, three, four u, maybe 5 a year and a lot of commodities are going to benefit from that. So mike, as we await results from zoom video here, what would you say about the basket youre watching of the stay at home stocks versus the reopening stocks and is that a e defining future in this market as it has been for the past few weeks . It has been mostly lately, its been about the call options on reopening. So to speak. Have been the ones that have been in favor so if you look on up days, the leading stocks in the s p have been the cruise lines, airlines, hotel stocks and some of the beaten down retailers. But part of the reason for that is theyre down so much. Even down more than 30, 40 after having rallied from here partly, its the laggard, cyclical value story its not come at the outright expense of some of those stocks, in some cases, secular growth. The theme of the strong eating the weak after this period or the secular trends accelerating from here at the expense of the secularly challenged, i think thats still propping up that idea of that socalled stay at home play. Aside from of course the pantry loading staples names, which was a kind of a fleeting phenomenon we hope. Lindsey, if some of the underperforming sectors year to date, which stand out as looking attractive well i do think the financials look interesting. Theyve been a tough group in general over the last ten years and i think theyve gotten so beaten up and the expectation that this crisis is going to be, this recession is going to be just like 2009, that you could find some interesting value in there, too, and not just the banks either im talking about the Insurance Companies as well. Professor siegel, if you are worried about say a second wave of infections, disrupting economic activity, now or in the fall, or some of the other risks, the fact that the economy cant just snap back, how do you hedge yourself in a market like this well, ive heard that some mayors have said that even if theres a second wave, they cant afford a lockdown again. The way we had it over the last two months and were going to hope for therapeutics and a vaccine is premature probably by september and october, but therapeutics that will lessen the death rate, absolutely the mortality rate is already going down just from what weve learned on how to treat Covid Patients i think unless the wave is very severe, that were going to stay open in the fall and i think thats one of the reasons why these value stocks are rallying, but i also will agree on the financials because i actually do think were going to get some lift in Interest Rates through next couple of years, which is going to be a big tail wind for the financials i think Going Forward. But i dont know whether we have a stomach for another lockdown unless its a disaster and i dont think thats going to happen when are we going to get higher Interest Rates . The fed is going to stay low. I think the longterm bonds are going to begin to creep up first as people begin to say hey, prices are beginning to rise on these things do i really want to stick with a half a percent, which is a record low again, treasuries are the great hedge asset. People love them because when the stock market is down 1000 points, treasuries are up but a lot of people are going to say you know what, i can get three times the dividend yield in these value stocks i dont have to go to treasuries and just like the 1950s, slowly but surely, treasuries were off favor. Yields went up and you know moderate inflation is actually good for the stock market and thats what i see in 2021 jeremy siegel, lindsey bell, thank you both for joining us. Thank you meantime, zoom videos earnings are out hi, d. Hey, wilf big beats on the top and bottom. This is one of the hottest stocks of the year already tripled its value this year up further in the afterhours, it was as much as 6. 5 . Earnings per share of 20 cents versus nine cents expected, so double analysts forecast. 28 million versus 308 million, which is what the street was expegting. Customers with more than ten employees, thats up more than 350 from the same quarter last fiscal year. Highest paying customers up approximately 90 year over year so zoom is delivering on these big expectations in terms of the outlook, strong beat, strong outlook on revenue and eps for the full year. Guy, well continue to dig into this and bring you more, but it looks like a Strong Performance and meeting those High Expectations back to you. It does thank you so much for that mike, whether were looking at this quarters revenue or the guide for q2, if you annualize it, its somewhere between 30 to 40 times sales its pretty extraordinary when youre forced to think about it. Not trying to take away from a very impressive set of numbers this quarter absolutely. Thats why the stock has not roared ahead aftthese comprehenv beat on every metric and pretty good guidance so i think that natural ly, the market has gotte to a place and assumed Phenomenal Growth here and its getting those numbers. I think theres going to be a question not just with regard to zoom but with some other stocks that really were massive and immediate beneficiaries of the stay at home period, which is what percentage of their likely Addressable Market have they already now taken in because of this accelerated adoption, whether that be peloton or zoom or Something Like that we wont know that for a while we have to make educated guesses about the trajectory from here, but certainly good results and theyre focusing in on some of those commercial customers that are going to be, they would hope Revenue Sources down the road with larger employee bases dont miss first on cnbc interview with zooms cfo friday 8 00 a. M. On squawk box. Its practically become a verb its amazing up next on the show, a pair of analyst discuss whether this red hot stk rk c kocmaetaneep rallying when we return in 90 seconds. Im kent coloma, its my job to make sure all the packages that go out today get delivered. There are people who can only get food from amazon. When you come into work, thats what drives you. My little one, i would say hes definitely proud of me. Every time he sees the blue prime trucks, he says, daddy, theres your people i know every single one of us is here busting as hard as we can go every day to make sure these packages get delivered. Thats where i as we can go feel normal. S an hour, having an annuity tells me my retirement is protected. Protected Lifetime Income from an annuity can help your Retirement Plan ride out turbulent times. Learn more at protectedincome. Org. 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. Shares of zoom jumping about a percent as we stand after hours after reporting a q2 top and bottom line beat moments ago. Up more than 350 increase in customers with more than ten employees. Joining us to break down those numbers, managing director at needham and company. Whats your take on this beat in how impressed are you . Very. I think the numbers are incredible to put it in perspective, theyve reported one quarter of their fiscal 21 year and they doubled their annual guidance effectively. Went from guiding for 900 million for the fiscal year to 1. 8 million. Simply an incredible First Quarter beat and Second Quarter annual revision. Never are have seen something of that magnitude of my 20 years covering technology. There were security concerns around zoom and zoom bombing and where the servers were going there were competition concerns around zoom. Facebook, everyone else wanting to get this this game. How is zoom overcoming some of those concerns and how have investors climbed that wall of worry . Sure. I think their response to the security concerns has been incredibly effective it will probably go down as a case study in how to for Crisis Management you may recall they actually paused all their rnd for 90 days for new features just o focus on security they very quick ly fixed all of the known security issues. Theyve upgraded the encryption they used. Theyre committed to rolling out true end to end encryption which would put them ahead of their competitors including the likes of microsoft and cisco, so i think theyve turned security from a major liability at one point there to i think what will be a strength impet tiffly and speaking of the competitor fr t front, there are competitors gunning for them there have been for a long time and i think there will be a lot of growth in the market that will probably be a bit of a rising tide for all of them. But i expect zoom as well as microsoft with their teams and cisco to do very well but i think zoom is going to fair quite welcome pl competitively. I think their security is going to be a positive for them Going Forward. Richie joins us as well Senior Vice President at da davidson how sticky do you think this enormous spike in customers theyve seen, how sticky do you think that will be once the Coronavirus Crisis subsides . Yeah, and thank you so much for having me. My take is i think the stickine is ss is going to remain because once people get used to a major process change like using Video Conference iing and, thats east set up and work, over you know the standard kind of ways theyre doing things, its very, very hard to switch. Its not this switching costs are hard, hard to get people to adopt solutions that dont meet up to how well zoom works and how intuitive and easy it is i would argue that once the coronavirus effects hopefully subside, we might see more momentum at zooms back as the limitation it is of more Legacy Solutions like cisco webex begin to show and Companies Say they need a better solution now that theyre out of triage mode and that switches people over at an accelerated rate thanks so much for joining us gl thank you push to the edge thats what nba hall of famer, Kareem Abduljabbar says protestors are feeling now well ask him how this nation can finally fix raalci injustice. Some ideas we might have for Corporate Leaders later on cl d closing bell s no barriers between departments now. Servicenow. The smarter way to workflow. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Lets send it out to diedra. Breaking news on lyft. Thats right. The company just providing a Business Update moments ago in a sec filing essentially, it continues to see green chutes when it comes to ride sharing bookings. In may, rides increased 26 from april the previous month, but they are still down 70 year over year. Growth they say have been stronger in cities with easing restrictions and this really k echoes what we heard from both companies, lyft and uber, in early may when they r reported their First Quarters lyft also improvising expected losses they say if recent trends continue, they expect to see a 10 improvement. Less losses than estimates they say they have 3. 3 billion in cash and equivalents. The shares havent moved a lot on this. Theyve been bouncing in and out of positive territory. Thapnks for that near the session highs, at the session highs, up over 1 on the dow. 267 points about 0. 8 on the s p. Nasdaq up 0. 6 a strong rally in the final half an hour or so took us to those session highs. All 11 sectors higher. Energy, materials, industrials led the charge staples at the bottom but positive territory regardless. Over now to mike whos looking at optimism for economic recovery being priced into the market yeah, were going to show those on the charts. Both in the stock and bond market did want to take a look first of all. Thats the valuation so essentially, the market itself has decided the next two years are going to show enough Earnings Growth perhaps to substantiate a forward p. E. Around 24. Its not a common way of looking at forward valuation, but if you still think earnings are going to come back similar to 2019 levels in 2021, still probably not fast enough necessarily at the current level of forecast to stay that the market is all that absolutely ak tracktive. If you look at relative dividend yields but one thing i had the point out if you look at the treasury yield curve from five to 30 years versus some cyclical stocks, thats been something thats telling you the market is maneuvering toward better Economic Growth. That yield curve, the further out on the curve is suggesting that in fact the bond market sniffs out less deflationary pressure and better Economic Growth thats a cyclicals over defensive etf. The question is has the stock market already priced in a loft the implicit signal there from the stock and bond market. And mike, i guess you know to what extent are low er rates, ar they going to stay this low, fall lower by the point youre talking about there with the 2021 or 22 multiples and does it justify higher than historical exactly those are the debates and also the make up of f that s p 500 and some of the very expensive stocks are the secular Growth Stocks but some are trading on the no earnings or depressed earnings so thats also inflating that multiple. But really 2021 seems to be the year when a lot of that has to get sorted out for now thanks very much. Still to come, well ask Kareem Abduljabbar whether sports franche neisowrs are doing enough to address Racial Injustice in this country. Were back next. News alert on auto sales auto data has crunched the numbers. The pace f sales for may, 12. 17 vehicles better than most expected. Think thought it would be choser to close tore 11. 7 or 8 million but again, the decline in sales seems to have slowed down a bit. 12. 17 million vehicles was the pace of sales in may compare that with 8. 6 million in april. Guy, back to you thank you very much when we come back, Kareem Abduljabbar, long time lend of the nba will be with us to talk b about how Corporate America and governments can take this opportunity and create some change against raciainste. lbeig back on closing bell need better sleep . Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Time for a cnbc news update with sue hello, everyone heres whats happening. In paris, thousands rally to support u. S. Protestors of George Floyds death and to denounce the death of a black man in French Police custody riot police fired tear gas in an effort to disperse the crowd the unauthorized protest has been banned due to coronavirus restrictions preventing gatherings of more than ten people in the u. S. , peaceful protests are back on this afternoon in new york, minneapolis and washington, d. C. Even as dozens of cities and countries, counties rather, have ordered curfews in an effort to stop another night of violence Los Angeles Police say that they have arrested more than 2700 people since the protests began with more than 1,000 arrests on monday and a Washington Advocacy Group has filed a lawsuit against President Trump saying his executive order on social Media Companies violates the First Amendment by limiting freedom of speech. Another very busy news day i will send it back to you, sara sue, thank you. Kareem abduljabbar is one of the most celebrated basketball players of all time hes also been a political activist throughout his career following in the footsteps of mohammed ali who refused to fight in the vietnam war this weekend, the basketball legend had a powerful oped in the Los Angeles Times. He writes racism in america is like the dust in the air it seems invisible even if youre choking on it until you let the sun in then you see its everywhere as long as we keep shining that light, we have a chance of cleaning it where ever it lands, but we have to stay vigilant because its always still in the air. Joining us now is kareem abd abduljabb abduljabbar thank you so much for joining us happy to be here with you on cnbc, we have been cov covering a number of companies that are putting out statements and pledging change in the name of social justice. How would you say they can act to that we could see meaningful action whats your message to big business now i think we need to promote some type of legal situation where we have the means to remove bad cops. Bad cops are the source of all of this. People who dont respect other peoples rights. So you know, thats an important issue. And i think that issue gets to the core point we can put this behind us. We all need to be respected fwi people who enforce the law and that hasnt happened if we can, whatever we can do to make that happen on a regular basis, it will serve us. Kareem, as sara was alluding to, weve seen a lot of people speak up in the last week or so and i read your oped and you also make clear its a very small percentage, tiny percentage, of the police that are the problem. What would you like to see to see more people in that sub sector of policemen to speak up themselves i think its, its to show they are the problem certain people among their, the ranks of the police, are racist. All of us would serve this issue if we could all make friends with someone who doesnt look like us u. Thats the key issue here. Too much of peoples humanity and their right to be a part of the American Dream thats not recognized all time its very unfortunate. I wanted to ask you about some of the response in the sports world in your world, but particularly about the nfl Roger Goodell came out with a statement of goodness. Does the nfl have any credibility on this issue with the way they handled Colin Kaepernick i think they have to really prove to all of us they mean what they say because Colin Kaepernick was demonstrating on this very issue. Black americans at the hands of the police and he was ostracized he was lost his job. And he was blackballed and he wasnt able to earn a living and he was saying something people didnt want to hear not that it wasnt true. People didnt want to hear it. We have to listen to people who are suffering. People who get murdered like the way tamir rice got murdered. The way george floyd got murdered James Powell James Powell was a young man who died in 1964 in new york city. Killed by a Police Officer i was 17 years old at that time. This isnt a new issue its been happening and happening and happening. Tamir rice, a 12yearold boy prayi i playing in a park who was executed by a Police Officer who thought he was a problem he didnt try to find out. Just got out of his car and executed him this has to stop we cant do this kareem, closer to home for you u in your own sport, the knicks Franchise Owner mr. Dolan said as companies in the business of sport and entertainment, we are not any more qualified than anyone else to offer our opinion on social matters. James dolan, that said that. What do you make of that is this now a moment in time where its not about qualification to offer advice in these areas, its just about embracing the message, whatever your own backgrounds were . Well, i would really feel a lot better if people got into supporting the removal of some very bad circumstances that end up with black americans getting killed thats what we have to deal with you dont have to be qualified just have to want to right something thats been wrong for a long time. I guess in that, what is the role of the nba owners specifically the Billionaire Team owners . What more could and should they be doing well in the communities where their teams are, they can try to get educational and financial opportunities for minority people in the cities where they have charts. Minority people and black americans are often the last hired and the first fired. We can change that we can work on this problem and eliminate it were a business network. You alluded to it there. How much of the problem that youve witnessed throughout all of the work you do in this area is based on financial inequality and when you look at the moment at the response by Central Banks and governments to the Coronavirus Crisis and you see the stock market back positive territory here to date, but huge sways of unemployment across the nation, does that worry you . It does because the companies that got support from the fall government were able to fend off disaster, but dont want to pay their employees a living wage. If they pay them a living wage, a lot of these problems would not exist. Red lining by Insurance Companies is a problem just the fact that a lot of Real Estate Brokers collude with people who have racist agendas this is a big problem in our country. Money is made on this. We have to get to the root of all these things and do something meaningful to effect change how do you think that the pandemic has exacerbated this issue from a health and economic standpoint well i think the way that the pandemic has affected us, its shown how the inequality in health care and Economic Opportunities has affected the way that the epidemic has attacked our country its attacked along the lens of race and economic deprivation. Its very clear. Look at the statistics, whos been affected. Minorities, black americans have been affect bid this coronavirus. Its been devastating for those. Kareem, looking for some positives and optimism, i wonder how much youre looking forward to the return of f live sport. Not just as an ongoing avenue to promote issues, but clearly, 2020 for all sorts of reasons has been a challenging year. I wonder what your view on was whether live sport comeing back could be something that could help everybody turn the corner im sure that live sport will definitely get a lot of people out of that state. Where they have something to follow weve got work to do before that it has nothing to do with sports i just want to come back to that got to improve conditions for everybody thats affected by all of these situations and we can do that now that were talking to each other. Well thats just what i wanted to ask you, final ly, which is youve been found sounding this alarm your entire career going back to the 60s. Do you see this time being different in terms of what change can come from this . Just the horror of watch thag video thats almost nine minutes long of george floyd being murdered, if you watch that and try to understand that this is a common place practice in our country, Police Killing black americans on the slightest whim. Weve got to do something about it and change that weve got to value everybodys life and if that happens, we will make progress. Well end it there. Thank you very much. For joining us great talking with you. You, too thank you you, too. Stay safe and for more on what kareem is doing now surrounding the sky hope foundation, check out the website. Up next, one d. C. Based pizza chain is offering employees paid time off for activism well speak to the ceo right after this break closing bell will be right back. Its only human to find inspiration in nature. And also find answers. Our search to transform. Farm waste into renewable natural gas led chevron to partner with california bioenergy. Working to provide an alternative source of power. For a cleaner way forward. And right now, is a time for action. So, for a second time were giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus breaking news on twitter julia has the details. Thats right. Twitter announcing a new executive, sorry, announcing a new chair of o the board of directors, patrick pushette is quoing to be the new chairman of the board. The executive chairman is stepping down as of june 1st will remain on the board as a nonemployee director patrick she said says that this is the right time to evolve the governance structure along with best practices so really interesting to note. His background is he is a partner at Canadian Firm and he was also cfo of google between july 2018 and 2015 so an interesting decision here to have an independent board member come in just putting that in contrast with of course facebook, which drew so much criticism for having Mark Zuckerberg hold that role as well back to you. Thanks for that still ahead, shares of zoom moving higher after rertpoing results. Well dig into those numbers straight ahead you doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Paid time off for activism thats what restaurant brand and pizza is a tweet showing supporr the africanAmerican Community following the killing of george floyd, the restaurant announced it will permanently offer paid time off for activism and pizza ceo michael astoria joins us now for more on this michael, very good afternoon to you. So tell us exactly what youre offering your employees. I think youre doing this no matter what it is they want to be protesting about or actively supporting yeah. This is about systemic racism, this is about black lives mattering, this is about us using our platform and resources to allow our people to be seen and heard. The pizza has always been about that so all employees will receive an additional three days on top of the existing pto with additional incentives and opportunities to earn more yes, youre right, with respect to the notion of activism being a broad idea, we leave it to our employees discretion what is most important to them how many employees do you have, and of those, michael, how many have taken you up on this offer . Yeah, so we rolled this policy out sunday, so weve been moving at light speed to make sure we could accommodate as many requests. The numbers are on the lower side we approximately 700, 750 employees, and expect the number of those taking advantage of the opportunity will be roughly 40 , 50 in the very short term and hopefully as many as 100 in the long term, since this is a stake in the ground for us this is a longterm commitment this is not just about today this is definitely in honor of george floyd, breonna taylor, Ahmaud Arbery but this is just the start of our continued effort in this movement to make sure that were using our platform to do good, to make a stand and encouraging other restaurant owners, because the Restaurant Industry is the second largest private employer in america and Food Service Industry employs 10 of americas workforce. So its very important for us, especially those employing persons of color to take a stand and show that we care and are willing to take action. I guess, though, coming at a particularly difficult time for your broader industry, michael, straight off and during the Coronavirus Crisis how much of a challenge has that been for you, and will this provide an extra challenge, i guess, despite the moment of pretty low demand . Yeah, as you know the Restaurant Industry has been hit incredibly hard. We actually increased the wages of our entire hourly workforce and made sure that regardless of hours that you work, youre going to be paid through the pandemic weve kept over 90 of our workforce employed weve partnered with lyft to provide transportation to and from the pizza shops, expanded sick pay coverage and used our pizza to feed hospital heroes. Weve given away over 50,000 free pies. So really its looking for ways to provide a north star, give people a reason to show up and make it really easy not to come to work. And if you are coming to work, giving you an extra reason to show up and go all in and make an effort. Its challenging for a lot of our employees to get out of bed every single day and be motivated given all of the issues that are happening to the country, to the black communities, and were just trying to do our best to encourage, to support, to show appreciation to everybody that we can. Michael, thanks for joining us still to come, the first two commercially launched nasa astronauts joining cnbc from the International Space station earlier today. Thr mmts otheicoenn e future of space tourism. Much more when we return hey lily from at t here. Im back and while most stores are open, im working from home and here to help. Heres a tip get halfoff the amazing iphone 11 on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Yeah, everything is runningis 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. Lets get another check on shares of zoom, marching higher here after hours, up more than 3 after just reporting a blowout quarter. Despite the fact that zooms share price has been on a roll, the company beat expectations, reporting profits of 27 million for the quarter. At this time last year, those profits were about 2 million. Sales growth of 169 so there you go, wilfred, they proved financially what we all knew, which is everybody has been zooming a lot the last few months. As you said, its a verb now as you just displayed. Some people are correcting me that its a noun, but it can be both. Well, if you say youre zoom, then its definitely a verb. Im being told to move on because earlier today Morgan Brennan spoke with three astronauts aboard the International Space station, two of which just arrived this weekend on the Spacex Dragon crew vehicle heres what astronaut doug hurley said when asked if future tourists will be able to handle the physical and mental aspects of space travel. We experienced it for the first time just like hopefully a lot of other people will get to do Going Forward as we privatize the industries i think its just very much based on the individual and, you know, with the proper instruction and training, those folks will at least understand what theyre going to go through. The astronauts also weighed in on the perspective they have gained by being in space as a number of societal issues play out here on the ground there are no boundaries or borders really observable from space for the most part. You see that its a single planet with a shared atmosphere. Its our shared place in this universe, and so i think that perspective as we go through things like the pandemic or we see the challenges across our nation or across the world and recognize that we all face them together i guess the amazing thing is that the boundaries are being removed because of extraordinary innovations of these private companies that make space potentially approachable for tourists Going Forward but i just thought the fascinating part of that discussion earlier today was how openminded they were about tourists following in their footsteps, having not gone through all the unbelievable training and so on and so forth that they would have been through. I thought the unbelievable part of it was just having that conversation and doing a live interview from the International Space station. It blows my mind after watching the launch on saturday nice respite from the emotional weekend. Mike santoli, some final thoughts here as the market closed higher yet again. Were now less than 10 off the highs for the s p. Yeah. What should we look forward to tomorrow . It continues to be a tenacious rally. The market just sort of consumes almost all news as just a reason to grind, at least thats whats been going on so far we do get some more economic numbers that are going to be a little more relevant ism services to get a look at the hardesthit parts of this economy so there are things well have to use as landmarks to this reopening process. Well see if that changes this trend at all. Interview tomorrow, dont miss cnbc is going to talk to mark clouse 10 00 a. M. Eastern time, squawk on the street so well hear how another corporate leader is dealing with some of the challenges not just from the pandemic but obviously the social unrest as well. You dont want to miss that were out of time on closing bell. You dont want to miss fast money which starts right now. So it does fast money starts right now. Im melissa lee. Guy adami, tim seem more, Karen Finerman and dan nathan mike wilson says the new number one word for the market. Plus is luxurys biggest deal in danger we will tell you what sent shares of tiffany tumbling today. Were all over the big move in zoom. Can this ultimate workfromhome play sustain its redhot run we start off with facebook front and center today the Company Holds an allhands on meeting to address the pack lash oveho