Year auction that has taken the wind out of the big Growth Stocks. 59 minutes left to go. Now just about 20 points away from a record on the s p 500 wilfred, we crossed over that level that would have been a closing high we lost a the lot of steam i know. We didnt quite make it and sold off near the close but doesnt look likely to happen today as things stand lots to come on todays show well hear from two key market voices as the s p 500 nears and pulls back and then hovers below that all time high dan niles and mohammed larian will join us well discuss the growing china fallout with Carly Fiorina lets start with the key stories were watching mike santoli is looking at the recent recovery in bond yields and joining us to talk about apple as they hit the new high is tony from Sanford Bernstein its really not that unusual for the market to hesitate for a while when it reapproaches an all time high. Although, it seems almost a little too cute the way its done the past few days really floating with that all time high level and faltering later in the day theyre up about 50 its not the case you often get a perfect double top so i dont think its at risk of saying this is going to be some kind of we got even type trade were suing clues there is instabili instability plus this yield move they were carrying things earlier. Take a look at the relationship between yields and the relative action in cyclicals versus Growth Stocks. On top this is the ten year treasury yield they do not include todays action which would have boosted a little bit more. Isnt this exactly the same shape on a one year basis as the industrials divided by the nasdaq 100 Growth Stocks it would look the same by the way if this was small caps versus Growth Stocks so when yields are going higher, its positive yield curve shape. You have better expectations for longer term inflation. Nominal growth things like that all fit together of course, bond proxies and Growth Stocks benefit from rock bottom yields and high liquidity. This is the action were talking about. The issue for the s p 500 for the aggregate benchmark is these stocks are much bigger in the benchmark than the cyclicals are. The so, therefore, kind of running uphill when yields are going higher if were going to see the cyclical rotation. There is a way out of it it doesnt mean that the s p 500 reached the extent for a while but this is the underlying dynamic were contending with. Mike, and on top of that the cyclicals arent higher today. Not today theyre not, no the one one ththat stands ous the banks. The ten year is up to 0. 72 as we speak. Yields are rising. This yield curve is steepening mike, i dont know whether that is giving us a glimpse of another factor thats out there. We failed to get an extension of the government stimulus bill which is so important for the banks. I think thats exactly right. Its a play on the consumer data sheet what is really going on inside the smashgmarkets is its a goo based cyclical move that has the beginning of an outperformance its not purely value. The banks are outright cheap on most metrics theyre not geared to the same dynamics as other things p seemingly, at least sentiment wise, much more tied to the fate of a fiscal package to come. Mike santoli, thank you very much apple hitting new all time highs. Top of the dow today downgraded the stock to market perform just two weeks ago with a 400 price target. Tony, i know you also moved lower on tesla both stocks have been surging on the back of their announced stock splits do you think thats a coincidence or is that really whats begun, do you think the driver of the shares no, i think if we look at the both stocks over the last, you know, since the beginning of the year, theres been very fundamental performance. And, you know, recently weve had some sail wind, you know, following the stock split announcement but that sort of the cherry on top of the cake. I think to their credit, both are executing well apple is being increasingly viewed tlaen is a Hardware Company and worries it wouldnt farewell during this pandemic. It its going to grow earnings about 10 this year. And it has a big potentially big iphone cycle coming up so theres the companys executed well. I think its demonstrating that the Services Value proposition means its a Different Company than perhaps some people believe. And there is anticipation that, you know, next year could be another good year. So all those things have contributed to run up on the stock. And again, i would view the stock split for both apple and tesla as sort of the cherry on top of the cake at this point. But a cherry that really adds much flavor to the cake or is it totally so totally so totally superficial, there was a lot of positive fundamentals people could point to that justified the big jump in the share price. What is the jump in apple share price. Yeah. Look i think teslas following tends to be more individual investors. I think in appless case where it is such an enormous capitalization stock, its critical to almost every investors benchmark you know, they would discount a stock split in terms of not really adding fundamental value to the shares. They really were rewarding apple on a really Strong Quarter and so i think the Investor Base and who the stock appeals to is a little bit different for tesla on balance than it is for apple. We have breaking news on apple. Greet have you with us julia has the news it appears that epic games fortnight is gone from the apple will app store the ceo of epic complained and taken issue with the feed th th apple charges having game revenue. A 30 of game revenue. We reached out to epic for comment. We have not heard back yet well be following up on that. That is notable that popular game is no longer in the app store. Absolutely. Julia, thank you ep sick not alone, tony we heard complaints before from spot fi. We know the european regulators are looking into this issue i think at the end of the day its not a substantial risk. Let me elaborate first, the App Store Just context is about 10 of the profits of apple so it is really significant. You say, look, if this is under scrutiny, isnt it a significant risk i think if we play this forward and we think what might regulators do if they ultimately concluded that apple is acting in an anticompetitive way, i he dont think they would set a price. They wont say you can collect 30 , you must collect 10 . This is not a regulated issue. You have to allow for other app stores and venues are apps can be sold. That can transpire if we play this regulatory, you know, playbook forward but if we really think about that, im not so sure that other app stores would have a lot of traction every app store is that is vetted by apple. There are no bugs associated with that. You know, theyre all adhere to a set of moral standards and technical standards. I think many consumers take a great deal of comfort in the app store. So i think practically, sara, yeah, there will be scrutiny and there could be an adverse ruling what would the ruling likely be and if it was adverse and if other app stores were ultimately, you know, allowed or mandated to exist for apple to accept, im not sure that consumers would ultimately go there. They value the marketplace that apple creates for apps through the app store. Tony, just to round thing offs, two part question. Firstly, china retaliation how concerned are you about that apple would be the pinpoint of tech retaliation and secondly, youre so much more upbeat in your tone on china retaliation, its very difficult to know no one really knows what happened you know, what china is thinking theres been no official state response no official, no unofficial state like sponsor message being sent. And we may have to wait past the election to see whether this is an issue if there are any companies that are potentially likely to be targeted, i think apple and tesla are High Profile Companies that could face adverse consequences on your second question about our feeling on apple, look, the stock has done extremely well. We havent been able to sort of keep our price target up with how much both the market is going up and apple is going up i think our view is near term the risk reward remains favorable on apple estimates are too low. The stock usually does well in advance of product announcements and were expecting one in october. And we think the stock will continue to do well. Thereafter, i think the risk reward is much more balanced the you have an elevated valuation in apple and per your previous for the previous discussion on cnbc, you know, there is some risk as we look into 2021 that nontech stocks and stocks that havent done as well this year will have superior Earnings Growth and play catchup or maybe outperform tony, thank you for joining us thanks for having me. After the break, the u. S. Economy showing signs of life today as jobless claims came in below 1 million for the First Time Since mid march well discuss the state of the economy with bank of America President of retail that, is coming up next i keep working my way back to you, babe with a happiness that died i let it get away servicenow. The smarter way to workflow. Lets bring in steve boland, pred of retail serve 3z 3 million mass market consumers. Its also part of the overall executive Management Team at bank of america. Very good afternoon to you thank you for joining us, steve. Good to be here, wilf lets kick off with the consumer the area you have such data on everyone saw the uptick in april and may. Has it continued since then or is it plateauing a little bit . No, were seeing it continue as we continue to see states reopening and people getting back to spending on essentials where weve really seen consistent growth is in the debt card spend that is probably the trough was down 40 and now first week of july was down closer to 10 thats really essential. Credit card spend, thats where people are using for the bigger spend like vacations and larger expenditure thats havent quite come back there. I guess lone growth overall hasnt necessarily been that strong but in your part of the business, with consumers, mortgages are taking off the first half of the year was huge for the industry. We saw it across segments. The you think in the retail mass market segment, we saw really Significant Growth and continue to see Significant Interest from our mass market consumers were at really low Interest Rates. High levels of affordability from in a perspective. And supply is still relatively tight. What percentage of your customers have had to apply for mortgage forebaerns . And what percentage have come out of it if theyve gone into it on the forebearance side. We saw a lot of people that moved in very quickly requesting forebearance but whats an interesting trend as weve seen and engaged with clients and checked in with them and said how you are doing we see about 85 in like the credit card space the first leading indicator saying were not going to need additional forebearance were doing fine we dont need to extend. Were seeing positive signs of a return to health of the clients as we start to kind of get through this period. One theme, steve, weve seen with some of the other Bank Executives that have come on is that their digital apps if they already prepared for that and put money into the apps have seen a large amount of adoption. Is that transformational for your industry, in particular for large legacy banks like your own to prevent perhaps zrupgdisruptn that might have happened over the years ahead . If you think about the last decade, weve made huge investments in igital. When you see how that is paying off across all asset classes, its really significant. So just a couple of quick stats for you. Even basic deposit accounts were opening up 44 oufr accounts digitally and online so youre really seeing a big shift by the consumer to adopt digitally and also how they tra transact so we have 13 million checks being deposited by taking a picture. That represents, you know, 30 , 37 of what were doing from a deposit perspective and then our participation on the Zelle Network has been huge as well. Over 11 million clients who transferred 117 million either sent or receive transfers for 32 billion. Think about that that was up almost 0over 80 yer year if it is tranceacting, applying for loans, investing, weve seen clients adopting our digital capability and the investments paid off for us to be there for our clients. Youre also vice chair of diversity and inclusion at bank of america are you content with the firms record statistics on diversity i never use the word content because i always want to continue getting better. Im proud of our representation at all levels of our organization but we wont be content until representation at all levels are consistent with the representation of those participate in but you know in june, we made a commitment on top of Everything Else that we do. A billion dollars to help address issues around racial inequity and social issues and were focusing those in areas that get the fundamental reasons for inequity, health, help nl care, access to affordable financing, jobs and reskilling and Small Business. So that will be philanthropic and business invest mement is gn to really help us participate in making a difference in addressing issues. So not just representation in our company but how do we work with our clients to help more Small Business clients owned by people of color, help continue growing affordable financing and so we have that both on the homeownership side as well as on the affordable rental finance side steve, thank you so much for joining us good to be here after the break, today is black womens equal pay day. Meaning a black woman have to work for all of last year and up until now to earn the same as a white man did in 2019. Were going to talk to the former bet ceo about how to close the gap in Corporate America. Weve got 37 mut lineseft of trade. Dow is down about 80 points. 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. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Welcome back 35 minutes left of trade today is black womens equal pay day. How black women have to work into the new year to earn the same pay that white men earned the previous year. Currently, the average woman earns 82 cents for every dollar earned by white men. But black women, its 62 cents for every dollar earned by white men. It starts with leadership. In the board room. We found black men account to be 3 , just 3 of Board Directors atop 200 s p 500 companies thats according to spencer stewart. They make up about 7 of the workforce. The so our greatly underrepresented at the top of Corporate America. Over the past five years, representation there has only improved 1 . Black women, only 16 black women directors out of 345 total board seats. Coke, chevron and United Health care are notable standouts because each of those companies has two female Board Members each Many Companies in the dow from walgreens to travelers to mc mcdonalds and apple have zero things could be changing since the george floyd protest and the increasingly loud pledges for more equality. Were told by executive search farms that boards are very interested in adding black and black men and women to their boards so things should improve in the coming months. And boards are key directors can hold management accountable to hiring and on pay during this moment they also, by the way, have the ability to put black women in the ceo spot currently there are none in the s p 500. For more, lets bring in debra lee. Former chairman of ceo of bet network. She is on the boards of at t, burbury and as of yesterday, Procter Gamble thank you for having me why are we not seeing progress on this front for black women . Its good to see you st what do you chalk it up to . I think that we dont see more black women because companies are not committing committed to doing it, to putting black women on their boards we brought on more black women and men. But its hard to do. And its i hope that george floyd incident as you mentioned will be a turning point. And more companies will commit to this what youre seeing is companies writing checks social organizations and thats great. And Companies Making psas and making snis statements about how committed they are to black lives matter but people are saying, okay, if youre committed, what does your board look like . What does your executive Team Look Like . Do you have black men and women on those two entities . I think a lot of companies are feeling more pressure. I get so many young black people interested in serving on boards. I also get calls from companies about whether i know people or not. So i think the boards the Companies Just have to be more committed and make it happen im actually starting a Company Called the monarchs collective to help companiesfind the boar members that they need and as you said, its really important. The boards hold Companies Accountable for what the executive team looks like, the social impact of the company and who they do business with. Are they doing business with diverse owners so theres a lot that you can do as a board