Movers today small caps again today as they were all week. Transportation stocks Like Airlines as they have been all week bank stocks, industrial stock, energy stocks. All the market leaders this week as well as today whats lower today the peleton, zoom. Slack is down big today. Thats down about 13 . Big cap cyclical stocks. It was all about the reopening story. Stock of the week, boeing, thats not a typo. Up 43 jpmorgan a lot of bank stocks up double digits caterpillar is up double digits overall. Perfect for the reopening story. Remember the three buckets. The big problem we have got, stocks are pricey. We need to see earnings estimates start going up thats what were not seeing so far. Thats wa hat we hope to see in the next month or two. Now to the bond market where the tenyear is surging back to gas. Rick is tracking the action this afternoon. Rick its amazing. 92 basis points. Were up ten basis points on today. Were up close to 30 on the week as you see on the intraday chart. If you go to march, right around midmarch. You can see the last time were at this 170 mark. Finally, tens minus twos wonder why banks financials have been doing well, the yield curve is the steepest since february of 2018 at 707 basis points because twos were only up five melissa lee, back do you rick, thank you millions of jobs added in the month of may mostly coming from the hospitality and leisure sector lets bring in steve on the shocking jobs report steve. We broke records on the way down and breaking them on the way back up just much sooner than economists expected 2. 5 million jobs added which way was better than the eight million decline that was expected by the consensus. The Unemployment Rate declining to 13. 3 expected to be around 19 . It may be higher by as much as three points i dont think wall street will fixate on that thats a good thing. It meeans low wage workers can back into the work force looks like they were among first to come back we did not lose for people from the labor force. Thats a good sign for the future lets put it all in context. Nationally, we got back 11 of the 22 million jobs that were lost in march and april. Lets look by sector now Food Services and drinking establishments back 1. 3 million. Thats 23 of the losses le leisure and hospitality up im shaking my head at this construction number. 44 of the losses recouped retail and manufacturing recouping a big part of the losses what about the two views Goldman Sachs says todays report marks the beginning of the labor Market Recovery in our view and we expect it to fall further in june. Even though we look for the economy to recoup 60 of the jobs loss, the Unemployment Rate will still be around 8 to 10 and moreover we caution that risk to labor market are tilted to the down side another consequential story for the markets and economy. What does this mean for the future of additional economic assistance is it used as proof we dont need more . Or proof that perhaps we need more im wondering if theres anything about the data we should be skeptical of i dont want to be the rain cloud on a sunny day but should we believe all these numbers are in are they goosed in any way by ppp loans which are designed to incentivize payrolls to keep sallies intact absolutely. You should be skeptical of all of this data you should be skeptical of the estimates and data were looking at we never engaged in this kind of thing before, quoting bob dylan right there. We dont know what to look at, which data is forecasting it you had an affect of the ppp programs also you had an effect of the reopenings how do you get to 2. 5 million jobs and not lose 8 million. Must have been the firing stopped and in places that we werent looking at, i dont know if it was phoenix or tulsa or houston, they were hiring people back and calling them back its the only way it can happen. Yet, it was goosed by ppp but the idea of all this is a hand off. First you have the government help and then the economy comes back so it can stand on its own and you get rid of that government assistance. Thank you stocks are rallying across the board on the back of this big surprise in the jobs report. Are we getting ahead of ourselves . Here to discuss are former chief economist at pimco and ron great to have you both paul, ill start with you. Is the v pretty much a done deal yes, i do this was not your grandfathers recession or your fathers recession. This was a mandated recession because of the pandemic and the moment effectively that you can reopen the economy, you should see some pretty gargantuan numbers. Ive always thought it would be v off the bottom from the standpoint of rate of change the issue is when we get back to where we were, this is totally rational to me its like youre pushing a ball underneath the water and then you take your hand off and it will pop right back up now the big issue is how high does it go lets dig into that for a moment we want like 105 , 110 in the next few years do you think thats possible in. As the Rolling Stones say you dont get what you want but you do get what you need i think were getting a needed reopening of the economy and policy now will shift from triage, which is really what march and april was about to nurturing the recovery i think wall street is reacting rationally today a lot of the big populous states havent close to reopening. Should that continue to help the market beat expectations or do you think all of that is already priced in . When the densely populated states as they ropeopen has to a help when you have stocks, commodities and Interest Rates going up all at the same time, it would be foolish to argue with what that message is at the moment if the economy war to open more quickly than anticipated, including the highly densely populated area, its all to the good you think as were talking about a v shape rebound, talking about fed intervention would be ancient history. Were talking about how much more is Congress Going to do senator warner laid out a number of different programs that he thinks is necessary. Were talking about the fed starting the main Street Lending program that could be a 6 trillion program i think were very much getting a v off the bottom i think what the fed has done is say were at zero and were at zero until we get back to a very meaningful recapture of the lost ground and also inflation finally is above 2 . I think the fed will be incredibly nurturing working with treasury on the main street facility and all the action now is in congress were in a fiscal policy dominant world and i think state and locals will need to get done whether or not it can get done in the weeks ahead, i dont know the big issue in the weeks ahead is that the supplemental 600 bucks a week program ends at the end of july. Its a cliff i dont think that cliffs are really good idea at all. Theres going to have to be some type of political promise on extending the supplement three to six months or reduce it or extend it. Ron, in terms of stimulus, is there anything that could be done to fix the high and is the market priced for a scenario in which the Unemployment Rate remains stubbornly high, 8 , 10 range . It doesnt seem to be the Unemployment Rate would have been three Percentage Points higher than reported this morning. As steve said, we got 10 of the work force back that we lost as far as the monthly unemployment data go. Theres still, when you look at the job less claims through the month of may, thats 42 Million People who filed for claims. Were hardly out of the woods. I dont think the market is priced in for a set back i do think, some of these various programs that have allowallo ed Small Businesses to hold on to their employees will be necessary because were not at 100 capacity. Some of these Small Businesses will have 7 instead of 28 people in the restaurant or when you look at theme parks and move theaters, amc, it was reported earlier this week there were doubts it could be a growing concern. I dont think the market has price priced in any sort of setback. Theres a lot to get through its a very rapid bounce off the bottom when you look at the employment population ratio, that is still ten Percentage Points off where we were a few months ago impressive yes, market response, impressive the message is positive but theres still some way to go and i dont think the market is priced for anything but perfection Going Forward all right well leave it there gentlemen, thank you coming up, the reopening trade in full gear check out the Airline Stocks surging double digits and shares of American Airlines have doubled this week. Well have much more on those moves. Jobs are coming back as the u. S. Is dealing with zifcivil unrest across the country were talk with marc morial about the fall out and the path forward. First up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Get e trade and get more than just trading hellbut you already itknew that. And ive got some tips to help you get through these challenging times. First, practice physical distancing. Im sorry, i did not see you there. Ive been doing it my whole life. Or there. Plus, there are lots of things you can do at home. Like, stay active with some sick dance moves. Be daring. And whip up a new dish. I love the combination of gummy bears and meat. You can do video calls for all of your important meetings. What . Sorry. Or just have some fun. Ok, not that much fun. Now, this does not come naturally to me. But, try to be kind to each other. This is a tough time for everyone. So thats it. Stay home. Stay healthy. And remember, were all in this together. What . But totally separate. You know what i mean. Yaaaaay Retail Stocks are rallying with the rest of the market. The etf that tracks a group is up more than 70 for march lows. Check out home depot and lululemon at highs theres more room to run in the Retail Sector even after the rebound we have seen thanks for having me on during the pandemic we have seen the stocks do well because people are at home if that was the case, the thesis for investing the stocks during the pandemic, what happens after wards. Doesnt socme of that premium g away or no its great question its what im getting from my clients now. Were seeing the number of these covid19 begin to abate. I think were coming out of this, i think it will be permanent changes to the way consumers behave we will be spending more time in our homes Going Forward. Lululemon is performing extraordinarily well i think now would be dressing more casually Going Forward. Thats an added benefit to what was smart to begin with. Way back when and aisle sure youll know exactly when flp was an argument that the athleisure trend may be over and theres only so many pair of work out pants one could have in their closet should we be concerned about that theres only so many 100 work out pants im going to have in my closet if i am sitting home all day. Not too worried about that. Getting more and more people to recognize the true value in the quality of that brand. Who is losing share to any of these names that ben fiefitting from this work from home trend its no secret, a lot of these whether retailers, other retailers which had sold more formal wear. I was looking at your website before this segment and talking about Brooks Brothers filing for bankruptcy as funny as that sound or odd, i think they are seeing share to lulu lemon now they have a fast growing mens business i think they are taking market share from under armour. You hear from men and kelly, i know you hear this around the office about men wearing lululemon pants to the office because they look like real pants. For womens side they have leggings wouldnt you want a pair like pants but feel like yoga could that be in the opening here makes sense to me if theres a trend to drive out, lu lululemon will figure out. Ive bp waeen waiting years, years. Still waiting the stock says you dont have to worry about it. Doing just fine. Coming up, the dow is up 27,000 today its on track for its best week in two months. Industry and industrials are leading the way with all 11 sectors in the yegreen. Were going to have more in all ter hese big market moves right afthis stay with us on power lunch. Machin. Welcome back the airlines are taking off again today after a massive rebound for the group this week. Check out these moves. American is up 81 united up 56 . Jet blue up 40 . Same for delta and southwest. Thats the etf that represents a lot of these airlines you have a pretty clear down trend reversal off of those february highs you made a very nice looking base and at this point in time the stock looks like its poised to go back and retest. It should be around 25. Still nice upside from here. The relative strength is improving really providing confirmation here. I think the bottom line is as w get more confirmation there can be a vaccine and more evidence thats coming, these airlines are going to further take off from my perspective. Jets can keep flying. What about you and the fundamental basis for this is it possible that everybodys hopes about this reopening are over done . Kelly, when it comes to the airline industry, i would caution investors are being too bullish on this. We believe airlines have a flawed business model. There are three issues one, airlines run a lot of debt. They have too much debt on their balance sheet. Two, cashflow volatility is incredibly high and three, they have high embedded infrastructure costs we would advise investors to look at other industrials. For example, in the Aerospace Industry you could look at General Dynamics or Raytheon Technologies both of these companies are consistently growing, consistently profitable and they dont have a lot of debt on their balance sheet. Those we believe you can own for three or four years. You would bet on the rebound. Those are some other plays in the sector thanks so much fp follow along on twitter at trading nation stocks soars today as the markets celebrate two and a half million jobs added in month of may. Thats after 20 million jobs were lost in april and unemployment is still 13. 3 . Were still seeing protests in street every night what should this american recovery look like dont go anywhere. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. You dont get to act just cause dad died. , are you gonna get a job . I wanna become a tattoo artist. Scott did this. Is that a cocker spaniel . Thats my daughter. Oh. Your work is mad inconsistent. You got obama wrong. Welcome back, everybody. Here is your cnbc news update at this hour. Joe biden sharply criticizing President Trump for suggesting george floyd is looking down from heaven and touting the latest unemployment number the democratic president ial candidate says putting any words in floyds mouth is quote, despicab despicable rebuking the mayors demand for firing four police officers. Its been ruled a homicide he reportedly told police, i cant breathe. Another 25 crew members have tested positive for the coronavirus aboard two american seafood factory crawlers the ncaa is suspending Oklahoma StateCollege Basketball program for one year due to violations uncovered during an fbi investigation. The violations involve bribery charges against a former assistant coach. The team will remain on probation for three years. Youre up to date. Thats the news update back to you. We have the dow up 1,000 points. More than 3 here. The nasdaq almost notched an intraday record high take a look at the small caps. The russell 2000 is a symbol of the reopening trade and its up 5 at this moment. Kelly. The oil market is closing for the day. World benchmark, Brent Crude Oil 42. 20 thats surprisingly positive jobs data injecting more optimism into the Energy Markets as traders look toward a stronger than expected trajectory for the economic recovery add more fuel, comments from russia industry. Ermier today the bakers hues rig count showed a continued drop to historic lows. U. S. Oil rigs fell by 16 energy the best performing sector today thanks very much stocks are surging overall thanks to the surprising job growth in the month of may the comeback rally continuing in spite of a week of protests over rational inequality. A number of cities are still under curfew to clamp down on looting and violence. I dont think the statistics have depletely captured the impact that the economic coma that the country was placed into respond to covid i dont think the numbers are completely been factored into the statistic by the department of labor number two, its important for people to keep in mind that two trillion in stimulus was pumped into this economy. That points to the fact for in order for the recovery to continue, theres going to need to be continued stimulus states and cities are bleeding states and cities tax revenue is down the bill pending in the senate is the only way to e vert, wa would end up being hundreds of thousands, maybe millions of layoffs at the state and local governmental level i wouldnt read too much into these numbers. They beat predictions and expectations, but its sitting on top of a necessary governmental injection of cash into the American Economy to try to stabilize things so we can turn the c