going to happen on monday, i said don't fade the mood, whatever it is we're up dow 600, that's what i was talking about. we held an extraordinarily important level on friday. tomorrow, see what happens turn-around tuesday. >> let's see. >> don't bust a move. >> thanks for watching "power lunch. >> "closing bell" starts right now. >> so, if i say frost/evans, what happens i don't pay you? never mind welcome, everybody, this is "closing bell," i'm kelly efbs. >> iwe'll look at the dow. it rallied more than 580 points at the session high a few minutes ago. the major averages are higher for the first time in four days. remember what an ugly week it was last week. rear regaining some ground let's get straight to our

reporters following the money. seema modi and bob pisani. bob, let's start with you. >> we're at the highs of the day. we're not getting those big market on close sell orders, $2.5 billion we saw on friday. that tanked the market towards the close. let me show you the s&p 500. we were fine at the open, 40 points on the upside and slid going into the european close. it looked like the minute that stopped, europe stopped, the market lift. we have a nice v-shaped pattern to the trading today sitting at the highs for the day. you have two things. when they move, the whole market moves, and that's tech and financials you look at ibm on the floor when ibm starts moving like that, 2.5%, that doesn't happen that often, you overall get a market rally then we also have, of course, the financials when you get a goldman sachs here up $8, that's a dow component, that's about 60 points in the s&p 500. and you'll be assured a rally when you get two big tech stocks moving at the same time.

the other part that's helping is industrials, which have become proxies for the trade war dispute. boeing, we put that up day after day. there's another 45 points or so in the dow jones industrial average. turn to your right, you have best buy the retailers are having a great day. not as big a component as the big industrials, tech or financials but important overall. the one thing that's missing here is volume once again, we are not seeing dramatic volume. this is another example how not a lot of sellers today, sellers aren't that active, buyers are in and the market drifts to the upside we've had this a lot and people scratching their head, why aren't the buyers or sellers more enthusiastic. back to you. >> the nasdaq is surging toward its first positive close in four sessions but facebook has sat out today's rally as the data scandal continues. seema mode seema?

>> tech stocks bounced back from friday the nasdaq 300 up 3% it's being led by apple, amazon and microsoft. in fact, microsoft up more than 8% over the past three months. some analysts say in this time of uncertainty around data breaches and customer information bei inin ining misu might be best to stick to traditional operators in technology chip stocks are posting a strong gain following a report that china has offered to buy mao more semiconductors from the united states to help cut its surplus and avert a trade war. worth noting, facebook continues to trade lower after the ftc confirmed it is investigating its data practices, whether it violated a consent decree the tech company signed with the agency in 2011 facebook now in bear market territory. twitter trading higher after the social media giant announced it is joining facebook and google in banning cryptocurrent hicy

related ad bitcoin down nearly 7% >> back to you >> bitcoin seema, thank you very much seema up at the nasdaq are harsh trade wars beginning to thaw? business leaders sounding off. >> what i've seen over my lifetime is that countries that embrace openness, that embrace trade, that embrace diversity are the countries that do exceptional. and the countries that don't, don't. >> there needs to be a negotiated arrangement between the two countries. and i think it's important to note that most of the types of things being discussed from the u.s. side can be delayed in terms of their implementation

and hopefully will be. >> we're hopeful that china will work with us to basically address some of these practices so i see nothing but bullish ahead. >> joining us larry lindsey. what's your take on where we stand in this trade dispute today? is it better than the initial warning shots that were announced with sweeping tariffs on steel and aluminum on everyone was that originally the president's intention? >> i think the president's intention was to give china a push to show that he's serious in order to begin serious negotiations you know, candidly, the u.s. has not been serious since the berlin wall came down. we thought it a good idea for

china to develop economically. the conditions that exist today are different than the ones in 1991 and the unfair trade agreements that were done for geopolitical reasons back then are no longer applicable >> so, larry, when we talk about the ramifications from this and everyone's concerned about the economic impact, you know, how do you assess it especially when we know the first quarter numbers look bad because, i don't know, it's just that time of year again. >> right first quarters have been bad let's take a look at what they've done the way the 301 works is you figure out how much damage has been done, in this case intellectual property, $50 billion, $60 billion, and reduce sales of the offending company by that amount $50 billion in reduction sales well, you know, that is roughly 12% of china's sales to us let's put that number in

perspective. just 12% secondly, put the $60 billion in the context of the u.s. economy. it is 0.3 of 1% of gdp most of that is not going to fall on u.s. consumers the way the process is working -- sorry, go ahead >> i was going to say, larry, even if this does work out in a best case kind of conclusion for everyone, is it the right approach to get there, the sort of aggressive approach, particularly aggressive to begin with and then backing down a little bit versus a more conciliatory tone from start to finish would the same or better outcome have been achieved that way? >> we don't know we don't know how this will work we know we've been following conciliatory policies for three administration, both democrat and republican i don't think they worked, at least to our satisfaction. trump is trying something new. we won't know until it's tried

whether it's going to work or not. but i think the chinese response so far suggests they're more willing to negotiate than they have been in the past. >> last question on this as we look at the stock market reaction, the dow's up nearly 600 points today does this suggest the coast is clear and everybody should feel calmer and kind of, you know, fine about the direction it's all going or does it mean that the president feels like, you know, i'm in the right and maybe i'm going to keep up the tough talk >> well, i think the president is going to be the president, which means he'll talk tough when he thinks he needs to talk tough and easy when that's the approach it's very hard to predict, donald trump let's face it. i think that's why the market needs to take a deep breath. good days and bad days are going to come and go i think the reaction to the trade numbers was overdone last week i think the rally today is also

being overdone i think what's happening in monetary policy is going to be far, far more important to the market than these little hiccups we have in trade the amount of money involves in this deal with china is very, very small >> we'll come back to you to talk the monetary policy piece of it, too obviously, that's a huge one thanks for joining us. appreciate your time, as always. larry lindsey. >> my pleasure, kelly. >> we're at the highs of the day, 592 on the dow. and the "closing bell" is just getting started stay with us >> announcer: next up, a warning. was last week's spending bill too much if so, what's it going to mean for the markets and the state of the american economy plus, what the top-ranked analyst on facebook is saying about the stock. this is the "closing bell" on cnbc, with kelly evans and wilfred frost live from the new york stock exchange.

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welcome back to the "closing bell." let's check in on the market movers today as you can see, the dow is up a full 2.5%.

nasdaq up 2.7% tech financials leading the charge, having underperformed last week. individual movers, finish line soaring on news it's being brought by j.d. sports fashion for $558 million i didn't know it was called j.d. sports fashion i just thought it was j.d. sports there's the full name. stock is up some 30% today intel jumping on an upgrade at raymond james to market perform. they note strengthening underlying conditions for the move >> seema was saying those reports about china buying more of our chips could have something to do with it as well. maybe the market is in a better mood today dow is hanging onto a 600-point gain we were down big last week, of course even the tech stocks, some huge declines there the turn-around presumably due to better prospects for u.s./china trade relations our next guest suggests it's overspending and government debt we better focus on now. >> joining u david walker,

former u.s. controller general, now republican candidate in connecticut. thank you for joining us let's start on that spending point that kelly alluded to. the omnibus spending bill on friday and recent tax cuts from a republican government doesn't traditionally what you would expect in terms of fiscal constraint >> well, i hate to say it, but fiscal policy is spinning out of control again in washington, d.c. last week's omnibus bill were significant increases in defense expenses, the caps were blown, you know, basically it was a situation where of one side said, you give me my defense spending and i'll give you my discretionary spending we've seen the debt ceiling go up $1 trillion in the last year. we're facing $1 trillion annual deficit starting in '19. we can see on the horizon that the federal budget may end up spending $1 trillion on interest alone in the not too distant future what do you get for interest

nothing. >> you know, david, it's interesting because we had, of course, the big tea party movement under the obama years after that stimulus program. these hawks do answer to their constituents don't know whether to blame congress for not caring or whether it reflects that out in the country people aren't as hawkish about deficits and debt as they were even the last go-around. is that because they sense maybe this administration will get it right and they get the sense they'll pay for all of it, assist larry kudlow says >> let's talk about what the challenge is look, there's no question that the tax bill will result in my view, additional economic growth, additional job opportunities. it improved our competitive posture internationally with regard to business it has differing effects on individuals. we'll get some additional growth out of it. with that additional growth you'll get some revenues

let's understand this, the gap is too great our fiscal gap is too great to close it with growth alone over 70% of the budget is on autopilot, so-called mandatory spending, medicare, medicaid, et cetera we've made no meaningful progress on defusing that ticking time bomb. that's what we have to get to if we want to restore fiscal sanity. >> in terms of the trade discussion at the moment, where do you stand on that a bit of fight back to foreign competitors, is that something you're pleased to see? >> look, i think most people are for free yet fair trade. and there have been concerns with regard to the fairness of our trade with china for some time, as has been said, president trump is not a traditional president with regard to a number of factors, including negotiations so, he fired a shot across the bow. i'm pleased we're now in

negotiations i think that's probably one of the reasons why the markets are reacting a little more favorably now. only time will tell. understand this, we rely upon china to finance a lot of our debt, as we do japan at the same point in time, they need access to our markets, so we have a mutually beneficial need to try to be able to work something out that is good for both parties and there's no way we want to end up engaging in a trade war because everybody is a loser in that circumstance. >> you know, dave, to go back to your point about how so much of this is on autopilot, what do you do about that? it's clearly not politically popular to change that i don't know how and if it ever will be unless rates skyrocket and everyone has to panic over it what is the impetus for real reform >> the only way you'll get significant reform is if the president makes it a top

priority, goes directly to the american people with the facts and gets the people to understand the consequences of failing to act with regard to our country, with -- >> well, not this -- i was going to say, this president is -- sounds like he doesn't to want go that direction. they floated something maybe in congress to get at food stamps and so forth that was kind of dead on arrival. >> look, in 2012 i did a 10,000-mile, seven-state fiscal road trip. we demonstrated that the american people that are smarter than the politicians realize, they can handle the truth. they're willing to accept tough choices if they're part of a comprehensive plan to meet a certain goal and consistent with principles and values to bring us together rather than divide us apart this can be done but it requires presidential leadership it requires engagement with the american people and it requires

people putting pressure on the politicians to look at for their interest rather than the special interest we are mortgaging the future of our kids and grandkids at record rates. that is irresponsible. it is unethical. it is immoral and it must stop by the way, we've got several states doing the same thing, including my state in connecticut. >> i was going to say, maybe you'll get a chance in connecticut to show the way forward. connecticutians beg you to help them out dave, thanks for joining us. >> pleasure to be with both of you. dave walker. >> dave walker, gop candidate for governor of connecticut. the market whistling to the tune of 627 points higher for the dow. >> still coming up, one market strategist says last week's intense selloff was healthy for the markets and there could be much more upside a ahead she'll lay out which sides could be ready to breakout don't go anywhere.

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welcome back to the "closing bell." we hit session highs with the dow hitting 630 points here's the s&p 500, the sector map we like to look at tech is leading the way. tech hit hardest last week your financials are right behind it. >> they are mine >> they are yours. >> this is a remarkable rebound.

all 11 sectors were lower. all higher today and the two worst performers, tech and financials very much leading the rebound. part of it we could point on the fundamentals what the story is leading this, but part of it is quite simply rebound from low levels. >> absolutely. the best day in a couple years since august 2015 we could be looking at here. the rate sensitive sectors, which is strange, they're still higher but interest rates aren't doing a whole heck of a lot. >> this rebound impressive given europe was lower and closed down u.s. very much shrugging off the wider sentiment. we have 37 minutes to go before the close and we are nicely higher still ahead, despite today's broader rally, shares of facebook down again, extending last week's brutal selloff we'll speak with an analyst who says facebook remains his large cap internet pick. >> and he's the top facebook analyst. >> he is >> later, we'll ask main street investors what they think about the market's recent swings and at ty' dngwhhereoi with their money. stick around, the "closing bell" is back in two i'm not a bigwig.

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welcome back to the "closing bell." let's have a look at markets we've got just over half an hour to go. we are higher by 2.6% of the s&p

500. the nasdaq up best part of 3%. let's have a look at the dow leaders. it is led by tech and financial names. we have them coming for you. >> glad you knew that off the top of your head there. >> i did i think goldman sachs will be near the top there's microsoft. they're all there for us nice 7% for microsoft. >> and goldman, to your point, having a huge point impact on the dow here, at there's a lot of green out there let's get to our cnbc news update, flip it over to sue herera for that. >> hello, everyone here's what's happening at this hour russia calling global efforts to expel its diplomats, quote, anti-russian policy. it is responding to the decision by 18 countries to remove more than 100 russian intelligence officers those countries are acting in solidarity with england, where a former russian spy was murdered with a chemical agent. russia denies its involvement. nfl player michael bennett surrendering today in houston,

appearing in court to face assault charges. massive clean upunder way on a major highway near tampa paint and diesel fuel blanketing interstate 75 with a crash involving three trucks and a street sweeper no one was seriously hurt. thank goodness for that. two 20-foot whales have become the main attraction at seal beach in california lifeguards believe they're not necessarily stuck but it is low tide so, hopefully when the tide comes in, they'll go out we'll keep you posted. that's the news update kelly, wilf, back to you. >> where's seal beach? is that near you guys? >> yeah. seal beach is south of los angeles and it's a beautiful -- south of manhattan beach it's a beautiful, beautiful town people are going to -- it actually looks like they're in

between their two jetties, so it looks like they're in between the two jetties in the channel >> hopefully they can get out. >> they will hope springs eternal. >> thank you. stocks soaring to start the trading week up. dow up 626 points. i want to check back in with bob pisani as we continue to move. >> three to one to declining stocks we don't have the big market to close sell orders like we did on friday that's missing in a key part of the rally. i want to show you a few things going on everything is up but there's a slight tilt and it's really towards biggest cap stock, the s&p 100 and particularly toward the tech end you see the qqq on the bottom. that's been leading throughout the day. apple, amazon and microsoft. when they move three, four, 7%, collectively these three are almost 10% of the s&p 500.

three stocks are almost 10% of the s&p 500. when they move like this, the whole market moves then add number four google is number four. google did nothing throughout the day until about 2:00, 2:15 all of a sudden it moved about $20 out of nowhere when you have that kind of thing happen, the overall market starts to move along late in the day and drags other stuff with it here. let's talk about the banks yes, you heard about goldman it gets all the glory but we had a huge rally amongst the regional banks today do you see them, 4, 5, 6%. these were late day rallies. another factor helping things out. what moved us? what's happening it's the trade issues. we moved friday on it and moved today on lesser concerns trade secretary said he was cautiously optimistic. we have a steel deal with south korea. we had word overnight the chinese vice commerce minister might open up a timetable for certain industries to competition.

this is forward progress telling the street there may be a way toll negotiate and not have a trade war. you can see the market very much cares about that ba, to you. >> thanks, bob. joining us is steve guilfoyle, contributor at post nine with us, along with quency crosby, chief market strategist at prudential financial, and rick santelli joins us from the cme in chicago welcome, one and all sarge, let's start with the tech action because it's so dramatic today and last week. what does that say to you? >> i mean, there's a lot of exposure to china in the tech space. most of the stocks i own, i'm long a lot of the semis and the cloud. the semis all have 20% to 30% revenue exposure to china. they took they priced out of those stocks now we can price that back in. we're still stuck with thursday's loss. we have weakening macro across europe and until durable goods last week the united states as well there are still concerns here. we're going to be left with a

slightly higher price than we had on friday, but a lower price than last wednesday. >> the other big up is financials and banks does that make sense to you today, that rebound? >> yeah, it does one of the things that was interesting is the market was selling off for names that were very vulnerable to a trade tariff or war, retaliation the financials also got hit as the ten-year yield came in, as money came into the treasury market putting the yield down, the yield curve down having investors worry, is this just safe haven or is this signaling growth is actually starting to wane i think having the yield move up has been beneficial for the financials. >> dow up 652 points as we're talking here rick, sarge brought up a good point about how you -- and wilf was talking about the weakness in the european banks. this question about kind of what's happening over there, what does today feel like to you? is it an all clear is it a, hey, last week's moves were overdone and interest rates

haven't gone anywhere? what do you think? >> you know, i think that personally the tariff information is a huge fade it's going to get worked out it's not a half empty scenario don't think there's a trade war and i think the more smoke there is giving investors an opportunity to pick up stocks or markets on the reversals, the better off they are. this is going to clear up. i think a more serious issue to worry about in europe is their central bank and i think a more serious issue to worry about right now in the states is this notion of first quarter gdp looking like it could be under 2%. now, granted, you need to look at gdp over the four quarters, the first quarter is usually the lean quarter for a variety of reasons we won't go into it's still the die die nynamic big end. we have supply this week that keeps drawing attention to record amounts of bills. for the last several years,

record amount of coupons today's two-year note was nothing to write home about. we did move the paper. it was a very average type auction. i think the final comment i would make with respect to interest rates, this is going to be day 22 that ten-year notes, i don't mean in a row, i mean sessions 22 sessions closing in the 2.80s with some growth issues, even if they're transient, i think that's a good dynamic. i don't think the inflalgs front and the wage front is going to alter that so i continue to think interest rates will be well behaved europe will continue to be nervous. the euro being strong may not be a function of manipulation but it won't help on the macro picture of the broader exported economy. >> you're nodding there to some of those comments in terms of europe's data. europe closed lower. some of that data has softened it a little bit. is this a concern for markets globally >> it is if one of the pillars of the market isn't just the fed with the regime change, it's

centralized global economy that is doing well. we had weaker numbers from japan, from europe, and from china. this year we have a series of data coming out. if you take away the global economy doing better, you don't have that strength underwinning the market if the u.s. does not pick up in this quarter, the one we're in and we don't see that moving higher, you'll question whether or not the fed is not just normalizing but tightening that's a concern for the market. >> it reminds me we had -- we reset so maybe we can set ourselves up for better economic data how does the market look to you overall? >> i think you always have to play the environment provider. even if you see the cracks in the pavement right now the environment is giving you defense stocks. we know they're going to spend a lot. i worked with these guys i know they're not going to

leave one penny unspent. if they have it, they'll spend it and ask for more next year. you want to be long your raytheons, northrup grummans boeing, yes, but they have headline risk as far as china. >> that's a way to hone in on the market >> yes defense spending is up globally, not just the u.s we can see the defense spending around the world and many say they're coming into the u.s. to buy defense equipment. that's a good sign and helping the industrials. >> thank you very much we'll get an update. some breaking news on the tariff story. kayla tausche joins us from washington >> reporter: after last thursday's announcement, the office of the u.s. trade representative essentially has until the end of next week to release a list of the products that will see those new tariffs on the chinese exports i just learned we could see that document as soon as tomorrow

it's unclear exactly why this would be released so soon after the announcement with the ongoing talks between china and the u.s. you also have this 30-day comment period for stakeholders to weigh in. perhaps the ustr wants more stakeholders to see what is actually on that list and to be able to weigh in, but i have learned we could see that document as soon as tomorrow, which will certainly be a new development in this trade conversation >> on that point, what's the most important thing when this is released to you >> it's going to be important to look at exactly within each of these product categories, you have 1300 product lines that ustr evaluated some criticism is these are industries that are so high-tech they're not robust avenues for exports as it is what exactly is the damage going

to be to the chinese economy, potentially to the u.s. economy and where exactly did ustr try to focus these tariffs to inflict what they call maximum harm on the chinese for these past trade transgressions? >> lots of voices in the white house. some more settled than others on the economic topic do you get the feeling the newest members are settled and having around impact or still the players that have been there for the last few months? >> it seems to be -- you have the same voices that have been informing the president on the decision he made on thursday he had the commerce secretary on cnbc for paperwork for larry kudlow to join economic counsel is still in process. that is going to provide a moderating voice in this conversation compared to some of the other voices who have been influencing the president on this we'll see how that changes the conversation certainly, you have the top

trade official, robert lighthizer, the commerce secretary and peter navarro, three notable trade hawks and add steve mnuchin, who is leading these talks with china, that the administration confirmed today are ongoing. we'll see if those bear any fruit. >> kayla, thank you very much for that kayla tausche updating us from washington. meantime, crude oil is up 5% over the past week let's get to jackie watching what's moving at the commodities desk. >> oil pulled back a little today but it stayed over $65 a barrel analysts think it could hit 70 pretty soon. here's why first, opec's cuts were extended through this year and the saudi energy minister said last week, they might need to go another year second, venezuela. production has been dropping quickly and the political turmoil there continues. third, iran. the nuclear deal recertification coming up in may if sanctions are reimposed on

iran, that would be a big supply cut to the market if those barrels came off fourth, seasonality. every year oil rises as we go into the fourth of july. you have summer driving demand finally, global demand it's believed to be robust and strengthening. if oil goes up, guys, the energy stocks usually do, too now, these names have rebounded a little bit but not fully look at exxon, chevron, hess, conoco, bp, they're all higher with the broader market. but look at blue chip exxon, for example, still down 10% year to date, definitely leaving room for recovery as investors decide and ponder whether these higher prices are here to stay. >> jackie, thank you for that. of course, the other commodity last week was gold up 3% holding onto its gains from last week despite equities rebounding indeed, they have rebounded significantly. almost 3% for the nasdaq it's up 2.9% the dow is up 640 points. and still to come, td

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♪ a quick stat for you you're looking at the third biggest point gain in history. the dow up about 660 in percentage terms, still a significant one. we're talking about the biggest one-day market gains since august 2015. >> i don't want to ruin your statistic but we lost 11 on -- 1100 points on friday. >> facebook stock continues to its decline. off the lows of the session. trying to turn back positive it was down as much as 6% after the federal trade commission announced this morning it will investigate the company's possible misuse of personal data from as many as 50 million people mark joins us, lead internet and tech analyst at rbc.

this stock is down 13% over the past week and now reports facebook could face huge fines from the ftc what are you most concerned with right now? >> i think near term the question is, what kind of impact will this kind of negative consistent publicity have on mau -- or the daily versus the monthly growth these can have an impact i like to look back at netflix and all the negative publicity over a price increase that caused a company to miss estimates two quarters in a row. then proved itself to the subscribers and customers and the stock did well i think the setup is similar here for face book there's no doubt this publicity can have a negative impact for users who are kerpd about their privacy being violated and they could turn it off.

>> it won't ultimately impact their earnings or you don't think it will come >> i guess it's both of those. it's hard to see what regulation would be imposed against facebook that would disadvantage facebook versus other advertising platforms. over the research we've done, every single six months we've run this, we found the perceived roi on facebook is the same, other than google. google and amazon only put ads when people ask for them in kind of a search manner facebook could face challenges but so would snapchat, so would twitter and any other ad platform it's hard to see what the legislation would be to put it at a competitive disadvantage. it may reduce the interest in overall internet advertisement but i think that would be short-term. >> how bullish on their ability to make the most of whatsapp

going forward? this is not people making public posts but private messages in light of the recent scandal does it mean it's harder to monetize and more difficult, perhaps, moving forward for them to make anything out of that $22 billion they paid for it >> yeah, possibly. i continue to view this as one of the most intriguing option values across all of technology. here's a company that owns aid user base, owns a tool used by 1.4 billion people globally. not in the u.s. but globally that is completely unmonetized that's rare to see something like that. that stays unmonetized for a substantial period of time there are also comps so there are proxies in asia of other companies. that are very similar models that are able to monetize to the tune of $1, $, 2, $3 per user

per year whatsapp is a question of time i it's not priced in that's the reason facebook is the number one stock pick. >> remind us of the price target >> $250. that's a substantial upside from here look, you have to step back. the sentiment on facebook right now couldn't be more negative. we've seen this, it's been a while on facebook, since sentiment with this negative i would say six months after the ipo. if core fundamentals are largely unchanged from a long-term perspective, this is where you make the most money, like today, on the upside. >> mark, thank you for joining us i know what you're going to say. did you see the dow? >> i was going to say it's basically flat, facebook, down 10%. >> we were up 692 on the blue chips a second ago we're up 685 right now again, we have to keep last week in context, but this is a sharp snap back. >> what was your statistic >> third biggest point gain in

history. >> might be closing in in a second. >> i don't know what the number is. >> we're up over 3% for the nasdaq up next, we're talking trends with td ameritrade's head of trading, where he's seeing retail investors put their money to work. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists?

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these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back eight minutes to go. we were nearly up 700 points, briefly. let's discuss the rebound. td ameritrade director of trading joins us, victor jones not to be negative, but are volumes still low and what does that say about the real conviction behind this rebound >> well, you're absolutely right. i think last week we started to see some lower volumes across the market and across the exchanges. i also think that also puts a little emphasis on what you're seeing today if we didn't see as much volume in a negative sentiment

environment but seeing positive volume on the upside, there's a little more conviction in the market i want to take a look at three areas in particular today. autos, semiconductors as well as financials because it really ties into a lot of the news that we got over the weekend with regards to china and the trade situation with the u.s >> victor, what do you make of what's happening in tech, especially as we said a moment ago, facebook went positive. of course, it's had separate problems but the whole sector got creamed last week. today we're seeing big rebounds. >> yeah, it certainly did. i think if you take a look at semiconductors in particular today, you're seeing a very interesting -- i don't want to call it rotation, but the names that really led us higher over the last couple of weeks are not necessarily the ones that people are gravitating towards today. micron, while positive today, is not the leader you look at nvidia, you look at lam research, the ones that have lagged behind micron as a lot of

the catalyst for that move here recently was on dram and average selling prices 70% of their revenues come from dram today that catalyst is on china and whether or not they will start to buy more u.s. semiconductor goods versus south korea, versus taiwan that's leading the market higher there's also a valuation play there as well, as the market is looking at some of those stocks that haven't necessarily participated in the semiconductor strength. >> what about the banks? we talked on friday how bank of america shed 5% but today seeing some rebounds there. is it interest rates is it did everything get oversold last week is it economic what do you think is going on with that overall renaissance we're seeing >> yeah, when we took a look at the market action on friday, kelly, it was somewhat interesting. oublg, you didn't see the move in interest rates that would necessity the selling in financials but it was a risk-off day all together sometimes it's hard to wrap that market narrative around that

selling. today you're seeing rates. the ten-year still within that 2.8 to 2.9% and seeing recovering in financials jpmorgan and bank of america continue to be strong here and our clients are gravitating towards some of those names using that as a opportunity. until you see a break of that 2.8% level, it's hard to make a case financials should be significantly lower. >> thanks very much for that >> sure. >> final thought, what was it, victor >> well, my final thought is, it's the second cheapest sector in the s&p 500 as it normally is historically, just above te telecoms it's already the second cheapest among all 11 sector in the s&p 500. >> thank you let's look at the nasdaq tech rebounding significantly. seema is there for us. >> picking up momentum into the

close with nasdaq 100 higher by over 3%. the nasdaq itself above 7200 what's interesting about this key market rally is that this extends beyond technology. sure, dominated by apple, amazon, netflix, intel, these large cap names but even if you look beyond those f.a.n.g. names you'll see marriott, costco, dollar tree, even biotech is having a strong day. in fact, the ibb, the biotech indexing has seen its strongest day since january 26th this rally is broad based and helping the nasdaq propel higher of course, dominated by those tech names that really saw the brunt of the selloff last week, outperforming in today's trade lastly, semiconductor stocks, lam research, intel, all higher on the day on this report that china may, in fact, look to buy u.s. semiconductor chips in an effort to bring down its trade surplus. something to keep an eye on. the semiconductor index, up 4%

>> seema, thank you very much for that. we have just about three minutes to go until the close. quite a miraculous rebound we were down 1100 points on the dow on just thursday and friday's session we've recovered well over half of it today. we're up 690, near the highs of the day. as seema told you, the nasdaq is up even more the s&p just behind the dow in percentage terms they're all up a healthy 2.5% or 3% let's have a look at the s&p intraday chart we're closing near the highs of the day. the last half an hour or so is where the highs were made. we had a little selling in the morning but nothing to speak of. the low of the day for the s&p was still up 13 points we've been in the green all day long sectors for you, it's clear tech that underperformed all last week were the best sectors tech's up 4% fnls up 3.3% every sector is higher, even the

laggard, telco, is up 1% let's have a look at some of the disappointments today. the dollar is sliding. gold is holding onto its gains of last week if gold is rising that's a bearish aspect gold gained 3% last week oil, which was important support for the market last week of course, energy was relatively speaking the best performer is slipping despite having gained significantly last week. we have some movers for you coming up in a moment. and one other slight downnote before bob we can sing back is the dax intraday let me show you europe trade because we saw europe close, particularly selling off some risk -- >> we have a problem the problem is - >> very positive today >> they sold it dramatically going into europe. i got a lot of questions and i don't have a good answer the minute europe stopped, the minute europe ended, the volume lightened up here. there was obviously something on -- some people were talking about the weaker dollar. i think the key point is, what's

different than friday and what's different is we have a different tone on frad mnuchin basically signaled it's all negotiable that's created confidence in the market now we see the big moves up. market on close sell orders we saw on friday, the avalanche, gone, nothing there today at all. we don't see the very heavy volume we saw at the close on friday >> in general, volume was low. it wasn't super high last week either. >> no, but we went into the close, there was a rush of orders right at the very end of the day. that market on close, $2.4 billion, market on close that's kind of what spooked the market at 230. >> last week you were saying we had no real market leadership from any of the big sectors to keep us higher today we do have it. do you have to see it all week to be a meaningful rebound >> when you get tech and financials tufsh turning around like this, that's 40% of the market that's a huge boost for the

overall confidence in the market but, remember, today we have four to one advancing in decline stocks >> only one sector, gm in the dow is closer. closing around 700 points higher, up 2.5%, 3% for the major indices. chicago innovation, award winners, ringing the bell. that's it. kelly for the second hour. thank you, wilf. welcome to the "closing bell." i'm kelly evans. monster day on wall street to kick off the week here dow going up with more than 670-point gain we were up nearly 700 points at the highs of the session in the final hour that's 2.85% higher for the dow. as you can see, third biggest point gain in history. and it's actually the biggest percentage gain since august of 2015 remember what a difficult slog that was for a time. now i'm thinking of august 2011.

time flies biggest percentage gain on a couple years the s&p 500 up 70 points today to 2658. look at the nasdaq the nasdaq finished higher by 3.25% to close back above 7,000 after giving that level up last week the russell 2000 the laggard, but you can hardly call it that, up 2.25% itself, to 1543 the vix fell four points, down under 21 the transports were up big with about a 200 hoif point gain as well big rebound in the tech land we have full team coverage of this rally joining me on the panel, cnbc senior markets commentator michael santoli and stephanie link and rob cox checks in from reuters breaking views welcome. microsoft was the big winner on the dow with 7% gain or so

ge was the laggard mike, what do you make of the rebound today? >> first of all, this market is just spring-loaded in both directions you have this chase that got under way in the middle of the day, as bob said before, when it seemed like the floor of this market, seemed like it was going to hold. the market responded in a dramatic way to a really very oversold condition sentiment was lousy going into the weekend. i don't pin it on a lot of headlines. in is traders saying the risk/reward is in our favor to take on more risk right here i think the market trieded to quarantine facebook off the rest of the nasdaq. even facebook turned green toward the end the rubber band was stretched and let go we'll see if we have more than a bounce we're still not back to thursday morning's highs for the s&p. it was a rapid recovery of extreme losses over two days. >> that's for sure wilf was saying we're down 1100 points in a couple of sessions i asked art cashin, were there buy orders on the sell

he pointed to the trading range saying we bounced off key levels and now people's sentiment about the market has flipped on a dime. >> it's been a wild couple of days this is the definition of volatility we didn't have any of this last year we have it in spades this year i don't know why we were down that much on friday. only to be up this much today. i get the concern. >> do you think it's trade, or, like mike, do you think that's overplayed >> i think the reasons are a lot. there was some lazy longs, complacency, so it dent take much for people to say, i'm going to take profits last week. there are real concerns about tariffs and trade, and facebook and being a bellwether for the f.a.n.g. and tech. you can see why it happened. it's just that to the extreme levels it did. it didn't seem rational to me. just like today, i don't know if i believe today. but i will say this, and i've said it for a while. i know you guys will get tired of hearing it from me, but fundamentals matter.

the economy is pretty good earnings are going to be really good in two weeks. we have jp and citi and they're both going to be good. unfortunately, right now, we're kind of in this macro vacuum of, you know, big picture and so that's why you're seeing - >> are you picking anything up over the last week on these declines yesterday still feels like it's overdone but where are the opportunities? >> it's hard not to take advantage of the things that fall and fall hard that said, i really think the way energy reacted last week relatively was quite interesting in that it outperformed. it's been the first time in a long time that's happened. trust me, i know unfortunately. i bought a little bit. i bought a little chevron. some qualities quality energy i did buy some value -- what was perceived as value tech like microsoft and cisco. i am on the margin trimming a little google because i think maybe the f.a.n.g.s are rest i think the earnings are great but maybe they'll rest. >> google today underperformed

relative to the others rob cox, what about you. it's kind of easy to crap these headlines about tariffs pushing us last week and all clear today and look at this monster rally do you think that's what's going on is it about the fed? what are you focused on? >> i thought there were five key risks we got a little bad news about each of them last week i mean, rates, they're clearly going up, and maybe going up a little faster than people thought, so that gets to the broader economy question you have the question of trade there was quite a bit last week that got people worried about a potential trade war. you had questions about a constitutional crisis. you had lots of interesting stuff coming out on the mueller probe. the whole tech lash, the question about the technology business, primarily facebook then you had, i don't know, john bolton going to the white house, you started working with nuclear apocalypse if you put these five bits in and they all had some incremental movement last week, people were like, i'm out of

here, you now good the trade stuff seems a little less. okay, its really just posturing, potentially. and then as mike said, you've quarantined potentially facebook and a little google. that's sort of over here you saw tech stocks doing pretty well, chip makers. and then nothing necessarily on the other fronts so maybe you have a sigh of relief and don't freak out about the world on this monday. >> yeah, but we'll check back in tomorrow and see if that's changed. let's get to our reporters who are standing by to cover these markets. seema modi is at the nasdaq, bob pisani on the floor of the nyse. >> we close at the highs but it got hairy in the middle of the day. i want to show you the s&p 500 we gapped up 40 points at the top and slowly declined as we went into the european close look at that v-shape today 11:30 volume picked up and then it stopped once europe closed, the market quietly lifted i don't know if we can blame europele selling

they have issues with short-term funding issues floating around but the market turned around on the european close in terms of sector, when you have financials and tech lead, it's hard not to go up those two together are 41% of the s&p 500. in particular, this was a super cap. the s&p 100 outperformed everything else. you got all the big names that were moving. on top of that, you had nice moves up on the consumer discretionary, industrials also the third and fourth biggest sectors. banks at a big day goldman sachs up about $10 jpmorgan up $4, $5 overall you throw that in, 100 points in the dow just those two stocks. we also had a midday nice rally in the regional names like comerica, suntrust all with a nice move up then you had smaller names not as big in terms of market capitalization but retail had a very good day. it's been a long time since you get 3% or 4% moves in companies like best buy or target or ralph

lauren look at that that's a very, very broad rally for that sector. even consumer staples, which has had a horrible year. we had 52-week lows in some consumer staple names. they were even up 2% or 3% overall. what was different from friday i think the important thing is the tone on trade was different. mnuchin signaled something could be negotiated overall. this seems to be the tone on tariffs in general the other thing that's important is we didn't get any avalanche of market on close sell orders we saw on friday that's the big change we saw here overall, volume, i would say it's moderately on the heavy side today another difference from friday back to you guys >> it's picking up bob, thank you how about seema watching some big movers not just facebook, many others with some big moves on this monday, seema. >> a dramatic move for the nasdaq with technology really providing leadership the nasdaq 100 gaining over 3% as those trade tensions abate for now. we should point out, john lynch, chief investment strategist at

lpl says it's clear this trade battle is not over with the administration expecting to announce additional actions to protect u.s. intellectual property, including restrictions on cross-border investments and immigration which all have broader implications for the technology sector. that's why we see such strong reactions in these specific stocks when those trade worries become front and center. this rally went beyond the f.a.n.g. stocks. semiconductor players outperforming this report that china is trying to buy more chips from the united states to help bring down its trade surplus. that could potentially be a boon for names like intel, analog devices, texas instruments, which all saw strong gains the rebound went even beyond tech marriott, dollar tree, costco added to the nasdaq's gains, as did biotech with gilead, amgen while the nasdaq's move was led by large cap but the rally was broad based. facebook seeing a nice intraday

receipts versal. seeing a gain, in fact, for the day -- excuse me, up by half a percent in extended trade. >> thank you very much stocks did initially surge this morning after those reports that the u.s. and china are holding quiet talks to ease the two country's growing trade rift now caterpillar, which has been hit hard by the tariff drama, has reacted positively to news of these talks is it the beginning of relief for companies like cat, steph? what do you think? caterpill caterpillar, boeing routinely get hit the hardest. >> they were the best industrial stocks last year and cat two years ago. clearly, there's more interest in these names i own cat. i don't own boeing, unfortunately. cat is down 15% since it reported their fourth quarter earnings and it was a beat and a raise. the expectations were so high that it sold off on the news

on top of that, you got the trade/tariff concerns. the way i look at my industrial book, who has pricing power? who could offset the higher cost from tariffs or maybe general inflation, commodity inflation who has the best leavers to raise price? these guys should have the best because the business is so strong. >> what's happening in the farm sector it's not a clear play like deere, for example, but if it looks like they're going to target ag and soybean and some ag states because they're big trump states, does that make caterpillar more at risk do they have that pricing power? >> they have more diver diversification than a deere and machinery was up 30%, construction in north america was up 20-plus percent that's a good indication that demand is pretty good. they release these monthly sales so you sense the trend but it's really been like this for a while. that's what gives them the pricing power.

they have the diversification plus the overall commodity environment is getting better as well as the construction i think they should weather the storm. i think they should be clear about guidance they just gave earnings guidance people were confused you have a new ceo he's focused on profitability. and i think you're going to get a new cfo who will focus on how to use that balance sheet. i like it. it's pulled back i think it's an opportunity. >> and the shares were up 3.5% today. how about facebook, let's drill on that as we mentioned that was trying to fight positive the trouble continues for the company. the federal trade commission confirmed it's probing the social network on concerns of its privacy practices following reports that cambridge analytica improperly accessed information from millions of facebook users. today u.s. auto parts retailer pep boys said it's suspending all advertising on the platform, quote, until the facts are out and corrective actions have been taken. this comes after facebook took

out full-page ads in newspapers, and a letter signed by krooel mark zuckerberg in which he said, i promise to do better i saw a tweet where they said, at least they're generating revenue for newspaper companies. >> politicians read newspapers i think they might be aware of that it was a way to say, look, with he take this seriously we're going way outside our ordinary course of communication to make this point i think what's interesting is not -- it's very hard to handicap exactly how this facebook investigation or implications go. there's no sign, really, we're talking about one advertiser here, because you can't point to some mass movement of advertising away all that stuff set aside, i think this whole period creates an opportunity to reassess the background thesis for f.a.n.g., for these mega cap tech stocks why did we get hyped them? because we thought they were these natural, dominant business franchises that were in these winner take most markets

they almost couldn't help growing effortlessly all those things now work against them, according to public opinion, or at least against facebook and alphabet. >> stephanie mentioned a moment ago, maybe it's time to think about a different trade than just f.a.n.g. >> that's the question here. do you basically compress those valuations a little bit? nasdaq 100 trades 20% premium to the overall market if that comes back to the average, you have headwind for that part of the growth markets. markets today are saying it doesn't want to say game over. it's looking for other ways to play - >> the fact we have one company to point to, pep boys, i know there's big articles in "the journal" and elsewhere, but that's what it comes down to, right? >> you saw it even before this mess you saw it with unileaver. there is desire to see the do you -- duopoly between facebook

and google your question is, what's the alternative? that might work and you might have advertisers like pep boys or whoever it might be say, okay, where do you go? this is sort of one of the problems is it a trade or investor, you might think if facebook is on the outs, and they're most certainly going to be regulated in some way they're not regulated today. well, then who could possibly jump in there? that's hard to see >> also just thinking about -- people have said amazon, snapchat, maybe twitter, but then chrissy teigen, apparently she's off snapchat now, michael, too. what's an advertiser to do >> i've never been on. >> is it over now? >> i have no idea. but it feels like if they're going to lose share, would it have to be amazon's making more realistic that's going to -- >> i don't know it's necessarily even about losing share. if the advertising intensity of the facebook platform goes

down -- look, facebook was already going to be showing you fewer ads. and if, in fact, the idea that advertisers can't perfectly target as well as they otherwise could, it's just one less tool >> it's too early to be making these leaps. >> it's way too early. this is one i haven't sold this is one i would look to buy. out of the f.a.n.g., people used to say google was the cheapest now this one is 18 times forward. >> it's cheaper than google now? >> yeah, yeah, absolutely. and it's lagged huge it lagged before this whole thing anyway, year-to-date fine, i get we have questions about the long-term earnings we don't really know what's going to happen in the fallout to rob and mike's point, where are you going to go? where are you going to get that reach? i just think that nas book hfaca lot of leavers to grow, not just facebook, whatsapp, they're not going away trading at 18 times forward. so, my kind of strategy is let

the dust settle, let it come in, let it get out of the headlines. then i think you go in because i think there's certainly value for the long run. >> bigger picture, you could see a situation where they don't go and make that strategic acquisition they otherwise would have made. longer term if they feel more constrained, play defense more than offense, who knows. but that doesn't come -- >> maybe they use that cash and return share -- you know, return that to shareholders in some way, right maybe we could - >> it could be microsoft all over again start paying a dividend and -- >> is there not also a concern -- >> last word. >> is there not also a concern about the management of the company? you look at the response, you look at the letter, you look at the way zuckerberg came out. you know, he sort of even deflecting saying, i would gladly speak to congress but it might get my experts to come in. >> the right person. >> that doesn't sound very credible in a leadership role. so, that may be the other

related. stephanie, you might be right, 18 times earnings, nowhere else to go and then you think to yourself, i kind of like the way larry and ruth and those guys are running google, not sure how i'd feel about how sheryl and the kid are running facebook >> sheryl and the kid, sounds like a picture book. quickly on microsoft, i did bring it up, morgan stanley analyst today basically doubled -- not doubled his price target but has it doubling from here, microsoft. trading at $1 trillion market cap. steph, this company is up 7.5% today. what are your thoughts >> iown it and i actually was adding to it a couple weeks ago just because i thought they had done such a good job in terms of their earnings and guidance and growth they're so good at managing investing but also showing the growth cloud, we talked about this. they do such a great job a couple weeks ago at a conference talking about how cloud was really still in the early

stages i can't believe i'm sayingthat they're saying it's in such early stages clearly it's them and amazon in that space salesforce, you can throw that in there oracle, that was a dicey quarter last week. >> alphabet, trying. >> so -- but it's just think the microsoft story, it kind of paused after they reported so, i can see why it's up. i hope that this analyst is right. >> keith at morgan stanley raising the call >> it's $722 billion at today's close. >> it's on its way there thank you very much, rob and stephanie. a lot more ahead on the "closing bell. >> announcer: bonus, tis the season when wall street gives out big bucks to employees see how well they did compared to you. also ahead, finding value. how to do it in the midst of this new wave of volatility. the "closing bell" with kelly ocexs live from the new york

stk change is back in two minutes.

welcome back just had a huge day in the stock market dow closed higher nearly 670

points that was a 2.8% gain one of the best gains in 2 1/2 years in terms of percentages. the s&p up 2.7% today. the nasdaq uch by 3.25%. the nasdaq was up to 722 joining us david cassidy from matrix advisers and cole smead cole, values are a tricky one. we talk, do we have too much momentum and what are the names where you can kind of just bank on it and is f.a.n.g. still that, is tech still that where do you think is the right place to be? >> from a broad market context, kelly, this is not a good approach this is not a good setup for investors. that doesn't look attractive it's a bad setup for markets and

bad setup for stocks we like traditional media. we like going into certain places like retailing, like target, in the last six months part of this is a anti-f.a.n.g. theme. company you handicap it? you can't. you can see what's expensive, what's cheap and the question is, are people going to trust price or hope and excitement a lot more >> david, you know, we came into this week before this rally today, more than a fifth of the s&p 500 was down at least 20% from its high. if you look at the s&p 500, excluding technology, it was at about 15 times forward earninging it seems as if the corrective period has rebuilt value but where might you have found opportunity, if at all >> we think it has the market overall is fairly priced because the selloff has taken everything down, you have a lot of really good companies at 10, 11, 12 times earnings with favorable earnings outlooks. that's where we spend most of our time looking we like financials a lot,

jpmorgan, goldman sachs are very well positioned. we think there's good opportunity in health care abbvie has a great lookout and great yield. merck and gilead also in that area we think you can find some opportunity in technology but we're less enamored with the hot technology and more interested in companies like cisco or qualcomm, which we think are very good prices and good outlook. qualcomm, we think better things will happen in the next year a great price with a great yield. >> david, i was going to ask if you would go as far as cole and the anti-f.a.n.g. trade there. what do you think? this has been the best performing part of the market. >> we wouldn't do an anti-f.a.n.g. trade but we don't think you have to put money in f.a.n.g. we think facebook has questions with their business model. they'll get through it but there's noise there so we like other technology better. within f.a.n.g. we like google

stock has pulled back within the last week or two it's a good entry point. we wouldn't put all our eggs in google but it's a good place to be. >> cole, you mentioned this earlier, but even a name like discovery here is interesting to you? >> yeah. you got the greatest media investor in the case of jon meloan, who has spoken publicly last winter talking about what kind of value he saw in discovery. they were buying scripts his executives did that as well. we got people ten blocks from our office in town that can tell you why traditional media is dead and netflix would make that same case. the only problem is the spread between what we can buy discovery at and what everybody wants to do with those things. one thing i'll add, what's going on in passive investing. i'm not trying to go after what's going after what dave said, but it's nothing short of what blood-letting was a couple hundred years ago. people are doing it. it's completely acceptable

the only problem is i can't argue it's helping the patient's life buying the market at these prices is not helping the underlying investor. >> but it's not just a today trade. the whole concept is, you just diversify and you don't have to worry about it. >> supposedly. supposedly unless it's more acute, kelly. if it's more acute, there's going to be some woes and pains and the question is, who's going to win that and who's going to wake up mortally wounded or not? will it be - >> fair point. by the way, point about media, mike, today cbs was up nearly 5% i don't know if it's the stormy effect they had the highest ratings for "60 minutes" last night in a decade. >> they did. the basketball game also had high ratings leading into it honestly, it's relatively cheap. you're starting to question, up, if facebook will take it all here's an issue, we'll talk about this a lot, when they reshift the sectors. facebook and netflix goes in

with traditional media all of a sudden traditional media is going to look like a po portfolio manager will overweight those. >> good point. all i know is go loyola. >> thanks for joining us. >> thanks. how about lowe's, one of the best performers after the ceo announced his retirement we'll get the "fast money" trade on this. first, bonus bonanza on wall street details of how much extra cash nks ene mef the pockets o baerwh wco back. ess, and now i'm thinking... i'd like to retire early. oh, that's great sarah. let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours.

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welcome back huge day on wall street. the dow adding 669 points on the bell that only put us above 24,000 and only undid half of the selloff from thursday and friday the nasdaq was up more than 3% nasdaq's back above 7,720 today. eric >> the big stock market in 2017 led to, no surprise here, big bonuses on wall street the new york state comptroller's office released numbers today showing the average 2017 bonus for new york city financial industry employees was $184,000. that's a 17% jump from $158,000 last year. it's also the second highest number on record, only 2006 was higher when the industry paid

out an average of $191,000 in bonuses before the markets and the economy crashed a couple years later. this year's bonus pool was over $31 billion. but the bonus pools in 2006 and 2007 were higher because the industry had many more people back then. the 177,000 employees on wall street right now, that's a slight reduction from last year. and still down more than 10,000 people from the levels a decade ago. state comptroller said, quote, when wall street does well, the city and state benefit from higher tax revenues. no surprise. one thing to note, these numbers are just an estimate based on tax withholdings they only include cash payments. it doesn't include stock options and other deferred comp. that means the number is much higher the state's report says some of the increase might be a one-time thing due to tax changes that change encouraged firms to move up payments into december

instead of january or february back to you. >> we're still down 10,000 employees from the peak. that is interesting, eric. thank you. and the bonuses may be higher, but luxury real estate in the new york area has taken a fall robert frank is here to explain why that's happening >> yeah, you'd think $31 billion would be a boon for real estate but not really new york is really a tale of three markets right now. you got the low end, or entry level, $1 to $2 million. that's strong. the top of the market, above $20 million, also doing well but the middle, that's between $5 and $20 million, is very weak apartments sitting on the market now for over a year. discounts on luxury homes just hit the highest level in more than six years this used to be the high end, the $5 to $20 million now it's the middle, the working wealthy, or worried wealthy, since they're most sensitive to the downsizing on wall street you mentioned, volatile stock market and the tax law changes that really hurt the high-earning new

yorkers. now, in the first quarter around 280 sales over $4 million. that's down 17% from last year those homes, get this, sat on the market for almost a year and a half that is a new record and it's likely to get worse before it gets better because of a huge supply. there are 4600 luxury apartments that have come on the market this year, after more than 3,000 last year. and the problem is that so many builders build for the very high end. there's now an oversupply and not enough buyers. back to you. >> and maybe that's connectsed to what we just heard about wall street, it shrunk. even those dollar figures aren't inflation adjusted they're still lower than a decade ago. >> there are fewer people with the wherewithal. there used to be a thing in february when the bonus checks hit the accounts, it was known to be this day like a one-day rush with the high-end real estate brokers they started showing these apartments i think that game has been over

for a little while going back into the '90s, i think it was eight years after the '87 crash before employment came back up to pre-'87 levels i doubt we get back up to precrisis levels. >> it makes you wonder about those apartments he mentioned. we talk about the real estate in greenwich and elsewhere taking a hit. it could be more of a long-term shift they're not ready for. stocks did bounce back after last week's big selloff. we'll hear from a couple of retail investors on whether they're buying back into the market. plus, lowe's underperforming archrival home depot "fast money" traders tell us if the timererent of lowe's ceo is enough to turn things around let's begin.

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nasdaq. rewrite tomorrow.

welcome back a 668-point surge in the dow today, third highest point gain in history you can see major percentage gains. the s&p up 2.7%. the nasdaq up 3.25%. here's your rapid recap. >> wall street pointing to a sharply higher open following last week's selloff. >> ambassador lighthizer and secretary mnuchin at the

president's direction and personal direction is talking -- they are talking with the chinese, as we've been doing since day one. >> there needs to be a negotiated arrangement between the two countries. >> countries that embrace openness, that embrace trade, that embrace diversity, are the countries that do exceptional. >> the dow surging 480 points right now, 2%. >> facebook ceo mark zuckerberg apologizing. a full-page ad for the data scandal in newspapers all over the country. >> the ftc confirms it does have an open, nonpublic investigation into facebook's privacy practices. >> monster day on wall street to kick off the week here dow going up with more than 670-point gain we were up nearly 700 points at the highs of the session in the final hour >> it was a big day for the market and for retail, by the way

how about lowe's, it was up 6.5% after the company announced ceo will retire as soon as the company finds a successor. it comes two months after activist d.e. shaw built a stake saying it is underperforming home depot are investors excited or will it continue to lag? joining us are "fast money" traders. it's not often you see such a big pop on a ceo retirement. is this a verdict on his leadership. >> i mean, for example, i'm on this show "fast money" at 5:00, 20 minutes from now, and if i were to get bounced tomorrow and viewership were to go up 15%, do you think i'd be happy about that no that's probably what would happen if i'm the ceo, i'm saying to myself, really with that, lowe's trades at a discount to home depot i think it should trade at a discount i think there's further room to the upside in lowe's if you're asking me to play the

game, would i rather i'd rather home depot. >> i don't know you have a seat at 5:00 p.m. no one told you that. >> excellent point. >> lowe's has traded at a discount to home depot for two or three turns for many years. the reason is the efficiency of the company. i think the activist involvement is very good for operational issues i think that could help the rerating i think there are structural issues between the companies, which is home depot has stores in more densely populated, wealthier areas, better gross margins. i think what they're doing with pro is extraordinary either way, both of these companies have tremendous tailwinds from the economy the housing sec ttor, per capit, not a lot of home depots going in, where as target, walmart and all these other staple retailers are way overstoried. >> guy, getting away from any ideas of playing would you rather at this point, this market, does this bounce persuade you today, broadly speaking, that we have a floor

and we can look more to the upside >> that sounds like mike are you fighting a cold or something? you sound like you're on death's door is there a problem >> you sound subdued. >> you're buying yourself time. >> i'm not buying myself any time if you watched the "fast money" on friday, which i'm certain you did not, the think we said at the top of the show is, i don't know what's going to happen on monday, but whatever it is, do not fade the move. if it opened lower, don't try to buy it looking for a turn. if it opened higher, don't try to sell it looking for the reversal that's exactly what happened today. we stopped spot on a technical level. i heard you talking about it today, michael, so don't even go there, and so this bounce is justified. this bounce is not to be trifled with in a short term. >> i think mike hit a nerve -- >> yeah, he's a met fan. i'm not a staller. >> i think mike is jaded because these kind of moves have become so commonplace we're talking about one of the biggest point gains we've had. biggest percentage gain in a couple years and people are

like, wow, okay, dow is up 670, impress me now that's how it feels. >> that's how it felt on friday, quite frankly. i don't think the market was behaving like we had the reciprocal move to the downside. i get the sense people understand there are a lot of technical factors at work in this market, even though, i would go out of my way to say there are four or five things fundamentally different than where we were two to three months ago that's something that, back to what guy said, i don't think you need to chase this market tomorrow morning in fact, i think a lot of people think this was an emphatic bounce but one without a lot of volume and not necessarily one you should see a lot of follow-through >> what's with the yellow ties, by the way >> do you want us -- look at this look at that the '80s are back these are a couple of '80s guys right here >> we'll let you go. guy, tell me what you're watching - >> what was that >> what are you watching now is it markets? is it interest rates >> i'm watching the steady cam i'm tell you exactly what i'm watching is the fed going to thread this needle mike and i go back on the fed.

he's a fan, i'm not. i'm speaking for him they're up against it and my sense is it's not going to be as elegant as the market might want. >> we have record issuances this week from the u.s. treasury. we're going to do $300 billion in notes and bills and that's something that i think interest rates could be almost a self-fulfilling type of a move higher for rates just on that >> also, by the way, the vix is hovering on the button around 21 does that have to come all the way back down for us to clear through this period and return to rally mode for real, guy? >> if you're looking for true rally mode, you want to see a vix with a 15 handle we're either side of 20, which is somewhat concerning. >> can you stand out of the way? there's a vix chart. >> sorry >> my two cents on that, is that it was down enough today for it to be okay yes, you want it to work its way lower if the market stablgizes. >> we fell nearly four points as we picked up this monster rally.

thank you. we'll let you go and get ready for that other show. guy adami and tim seymour. much more coming up in ten minutes' time on "fast money" beginning at 5:00 p.m. a whole lot more on the markets still to come. today's biggest dow winners, microsoft with a 7.5% gain and cisco a laggard up nearly 4% we had long deployments in iraq. i'm really grateful that usaa was able to take care of my family while i was overseas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too.

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huge gains for major averages dow back up 24,000, nasdaq over 7k we're retracing last week's big selloff. some tech names were mostly volatile on that after being down double digits last week, for example, you have a microsoft up 7.35% today retail investors will react. up next after a weak market drop in today's rally, we'll speak with some individual investors to see how they're responding to these market gyrations for more on today's rally, one top strategist will kema the case why today is the best chance to buy. that's coming up on "fast money" at 5:00.

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it's been a turbulent few days, today to the up side we wanted to ask main street how they are handling the moves. welcome back to both of you. jackie, let's begin with you, are you finding opportunity? how is the portfolio look? what moves are you making? >> you know, it's looking pretty good you know, with the moves coming and going so fast, it's really heart to do anything i'm starting to use limit orders there are a couple stocks that i have my eye on i'd like to pick up a few more shares, united technologies is one, berkshire hathaway is another one. it's hard to make any kind of changes without putting in the limit orders for the traders that i want. >> jackie, both of those stocks about 3.5%, are you looking for then to decline further before you get involved

>> absolutely. both of those stocks are near an all-time high. they would have to pull back more last week we had two days they were down. it would have to go down i would say probably another 5% on each of those stocks, but with all of the volatility, we never know what's going to happen during the day. >> julie, what about you how is your portfolio looking? and what moves are you making? >> in the short-term basis it doesn't really make a difference what it looks like bakely the portfolio is looking pretty good. one of the stocks i was looking at last week was home depot. it's one of my largest holdings, but i would like to buy just a bit more of that, and it still needs to go down about another $10, to the low 160s before you get interested in that

i did pick up more from tiffany, after their earnings call, which isn't the stock down a bit with the sell-off >> what about, julie, of course we were just talking about how lowe's had the ceo leave today would you be interested in lowe's here at some point? >> possibly, but i doubt that -- i would not want will i want to hold both of those i really like home dao depot it's done very much. so more than likely, unless lowe is an extremely good buy, i probably would just hit with home depot. >> what about some of the tech names that have you had a rougher years? >> facebook i felt in love with it during the first ipo. i only held it for about a year. i made a bit of money, but obviously i would have made more had i held on to it.

with the issues they're currently dealing i felt like the whole privacies was a bit concern to me as a user and an investor i think there's more to tum. it's just kind of scary what's going on with the platform and other social media sites as well i love the tech sector, facebook not my favorite right now or any other sorb media. >> that's the tricky thing, jack jackie, it's not even a question of what to buy but it's more when to buy and when to sell it? >> i would have made more if i had held on to it a bit longer because with an ipo you have so also to go on, you can't do a lot of research, so i considered it a risky play to begin with, there was not a lot of data. so, unless they've got a long track record, say, like an

apple, google, amazon, thing like that, i'm quicker to more towards one of those names, because they have a very, very good track record. i continue to be able to do good research and look at the data and the performance. >> all right guys, thanks for joining us. julie westerner, talking about their performance amid all these ups and downs. straight ahead, steven spielberg takes on o othnef e year's highest flying stocks, right after this kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

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oscar award-winning dreckor steve spielberg had an interview last week. >> once you commit to a television format, you're a tv movie. you certainly -- a good show may deserve as emmy, but not an oscar. >> so it shouldn't be nominated. >> i believe they're given token qualifications for a couple theaters in less than a week should qualify for the academy aware nomination. >> saying similar movies, michael should only get an emmy.

>> i understand why he's uncomfortable that it's basically created just as to stream they do this kind of quickie release in theaters just for awards eligibility. >> how will they differentiate will the oscars announce they're -- >> there's specific rules about this they have to show in new york or los angeles county for, you know, have an actual theatrical release, but it doesn't say it necessarily has to run for a while or only be on there before streaming. >> netflix doesn't look fazed. >> it's fine i think netflix overvalues awards, because they don't have ratings. they have to say we're in the big leagues doing the -- >> they just put out the ratings, even if their own version. blue apron closed below $2 a share. this is one of the worst i can remember. >> yeah, you don't see them like this very often. it was never up really off of

its first day. it's been straight down. the business model had tremendous questions going in it's still burning cash, so i think there's a lot of doubt as to whether there's a lot of a future here. starting to sell in stores i don't if that's good or bad. >> thank you army corps of engineer san tolli, for joining us. that's does it for us. foist foi "fast money" starts right hue. traders on tim seymour i brooen kell you steve grasso and guy adami. fob foib under investigation, is the worst still to come for the social media giant plus bitcoin until pressure and twitter jumps on the bandwagon. but the bipo