today. we appreciate it >> thank you for this opportunity. that does it for the exchange. i'll join tyler mathison for power lunch which begins now thank you very much. we'll see you on power lunch in a moment from the kitchen once again. welcome. glad you could join us volatile session for stocks after yesterday's big rally. fed chair powell and secretary mnuchin reiterate they are prepared for more pain mixed bag for retailers that came out with their earnings online sales helping to ease some of the discomfort but stocks are lower kohl's down 8% we'll have the ceo of kohl's on air with us in a few minutes time as america reopen, we'll hear

from the billionaire buyer about his 240 restaurants that are back in business open once again. he'll join us later. first, over to you as we mentioned, fed chair jerome powell testifying on the cares act today. let's bring in steve for more. steve. >> thanks very much, kelly the treasury secretary and the fed chairman defending the programs that are out there. the critical questions being how soon will this money be delivered. is it going to the right people and is it enough of it out there? poul w powell was asked about the question and here is his response regarding maybe more needs to be done >> this is the biggest response by congress ever and the biggest from us and this is the biggest shot we have seen in living memory and the question looms in

the air of is it enough. >> he seems to suggest that more may need to be done. congress wanted to know where is the money they appropriated and the fed is yet to launch several programs here is graphic that may help you understand where this money is or isn't. you can see the balance sheet which is $6.7 trillion you have to look in the lower right hand corner for how much the fed is then under the cares act. this could end up being trillions and trillions of dollars eventually with the fed chairman saying the main street lending program and the municipal program may launch at the end of this month. if consumers are afraid to eat out, relaxation may do little to bring back customers and thus jobs it's vital not result in worst health outcomes and higher unemployment that's a consistent theme from

the fed which seems much more cautious and concerned about the risk of reopening too soon i'll have a chance to ask these questions this afternoon on closing bell at 3:30 >> perfect looking forward. he's talking about the time for fiscal and monetary policy to act boldly the unemployment to end the year a lot of concern as you well said that he expressed there we look forward to speaking more with him later let's get to bob for more. bob. >> once again we're moving forward a little bit in to positive territory with the help of megacap names i know this is consistent theme. it's the one thing you see regularly. the big five names they are all tech names. i don't care what sector they are in apple, google, amazon, facebook all powering forward today when you have those big five market cap, it moves the markets. a little disappointing no follow

through on the rally today in the laggard sectors. i'm talking on banks and energy. mentioned this in the last hour but not much energy. getting back about 30% of the gains they had yesterday also not doing much today. i want to remind everybody about companies continuing to pull guidance we had home depot do it. we had walmart do it 320 loss versus 1.67 expected. that was pretty tough. ceo will be coming up on this. one thing that was very consistent is the higher cost impacting them walmart and home depot both said the same thing that higher wages and benefits and increased cleaning costs really increase the overall cost they had and was a factor in their earnings

target had higher cost of squeezing profitability. that's a pretty consistent theme. this is a monthly survey of the big fund managers. coronavirus is the number one risk to the stock market rally but number two there, permanently high unemployment. that has never shown up. that's an indication that people are concerned about the fact that the roll out may not go as well add expected and people may be unemployed for longer periods. that's very significant that you never saw that before on that. back to you. >> all right thank very much. stocks taking a bit of a break today after yesterday oos big rally. the s&p 500 is up nearly 35% from its low back on march 23rd. one of our next guest says investors should brace for a whiplash from a market correction looming ahead for more let's bring in jeff, chief investment strategist over

at wealth adviser. lets me begin with you, jeff are you skeptical this rise is sustainable or maintainable even if it doesn't go higher. what do you think? >> tyler, i think it's a little more nuanced than that we were out rarageously in 2019. we were always buying on the dips we remain positive and think over the next 12 to 15 months because the stimulus is being employed in the economy. because we are bending the curve and doing some right things, we really do look positive and see by end of year next year i think we need to be very respectful and kind of curve and put a governor on that urge to buy on the dips immediately. there isn't visibility as to how

this second wave may play out. how the stimulus will be effectively employed i think there's in the next two to six months, the focus should be on risk management as opposed to that greedy, go for it, this is a real opportunity and afterall, the market is only down less than 9%. this is turned into a normal correction territory it's not the buy of a lifetime we should dhilchill a little bid be comfortable holding ground, upgrading where you can. that's how we look at it >> let me turn to you. you say you are a bit under weight equities in your portfolios up with of the things that makes you suspicion is so much of the market momentum seems to come from five megacap stocks you also say that to the extent that you are interested in equities, you are interested in overseas equities, particularly, emerging market equities

tell me about why you're under weight, why you're concerned about the big caps in the u.s. and why you like emerging markets. >> thanks. our under weight is a slight under weight we think markets have the potential of grinding higher from here. it's about the make up of the market right now our view is the fang five are probably enjoying their last dance as the leadership of this market environment that we have been in for a long time. the regime change is coming soon the concentrated names are the bigger risk. yesterday was a great example och hof how you could see a market doing well regime change is general ly a

longer process that's really been driven by our focus from a fundamental relative value perspective or our relative value model is telling us, emerging markets are really cheap on a longer term basis. when you look at the 2000s or the 1980s, emerging markets had a really good run up in those environments and those markets can last for a multi year cycle. it's not a full over weight. once we start to see a much improved earnings picture coming out of emerging markets which we think in this new environment of governments providing stimulus across the world will create the consensus and it's going to take off.

>> you heard the comments on why it's a tiptoe in kind of approach but you still like a -- as between u.s. and non-u.s. stocks, you like the u.s why? >> i think it goes back to the idea of being focused on risk management at this time. eng they are wonderful u.s. base stocked that have very strong balance sheets they have good dividend support in here and catalyst to drive some droet here going forward. it's early to have large position and early markets where fundamentals are a little more stressed, more commodity based and just some more difficult issues to deal with.

you can be well positioned for this recovery out into 2021. >> we appreciate your time kelly. let's get to the bond market where we have seen a volatile session. rick is tracking the action for us >> the volatility, the long end did all the lifting. whether it's the mnuchin-powell hearing that was unusual because nobody was in the same room. we had a lot looking at the insti int intraday of ten. we started to creep up but the whole day has been a down day. ten minus two will rime well

with that past chart it went from 56 to 53. it flattened a bit at the behest of the trade on ten-year and 30-year for the rest of the curve. if you look at the euro versus the dollar, it reflects some highs before our new york time zone it was a 500 billion euro package france and germany are trying to push to the marketplace. it's a quasi coronavirus bomb but not really we'll have to keep close eyes on how that goes and whether it comes to market. tyler, back to you thank you very much. coming up, a choppy trading session today but tech and consumer discretionary names are the best performers right now and the tech sector is the only one in the green for the year. it's up 5% a top analyst will tell us the names that have more room to run in that part of the market kohl's sink after reportings earnings the online sales not enough to outweigh store closures and extra cost.

the ceo will be here right after this break on "power lunch." for business as usual. or is it? what if business as usual means putting people first... and understanding their needs? if that's your business. 365 days of every year, then business as usual is precisely what these times require. which is why your lexus dealer will do what we've always done. put you first. find out how we can service your individual needs at lexus.com/peoplefirst.

welcome back we got some new numbers from the cbo about gdp this year. let's get to steve who that those numbers. >> thanks. cbo out with its forecast saying

gdp will decline 38 pr% in the second quarter a bit lower in the third quarter. forecasting at gdp decline for the full year of 5.6%. 26 million fewer americans will be employed in the second quarter of 2020 and the pandemic spending, all the bills together, cbo estimate will increase deficit by $2.3 trillion back to you. >> thanks very much. stooefr with the la coronavirus has hit kohl's pretty hard. down nearly 8% down a little less than 7% after reporting losses across the board and with holding the same key store metrics. kohl's will suspend its dividend we have a very special guest >> thank you very much i want to welcome michelle to the program. obviously, it was a tough quarter. you've got nearly 1200 stores

and they were closed for half of the quarter. of course, it's no surprise you saw a tough sales number down 43.5% even with the surge in digital it's not enough to make up the difference you have about half of your stores reopen. i think every one wants to know how are shoppers feeling how are they reacting? is it back to normal or even close? >> yes, it's great to see you. first let me add a little context. this quarter was extraordinarily difficult as you mentioned with half of our stores or all of our stores being closed for half the quarter. that put tremendous pressure on our business as this unfolded, we set out to put forth two key priority, protecting the safety of our people and our customers and ensuring that financial viability of the company on the latster, we have 2 billin dollar of cash on the blan

balance sheet and added liquidity of another 500 million. that being said, things over time will normalize as our stores come back up online because clearly our digital business, which is roughly about 25% of our business is not enough to offset we have at 50% as of yesterday i'd say the early indications are promising. we opened our first 50 stores the first week of may and they did about 50% of the volume that we would expect. that was with very little marketing. pretty much opening the doors. we have seen progressive improvement as we now had them open a little over two weeks >> you noticed on the conference call, that you continued to see that acceleration online does that suggest to you that some of that behavior is permanent. maybe shoppers that hadn't previously used your website as much are going to do that instead of going to the stores how does that shift your cost

structure if the cost of shipping was ten times higher than normal during this time >> our objectsive is to have healthy and thriving across the board. we hope to have most stores open by mid to late june and have our digital business continue to grow move to digital and we view that as a good thing. as you mentioned, we saw our business accelerate. our digital sales for the month of april were 60%. we have seen that even further in may our really see them as complimentary, not an either or. we know our best shoppers shop us across multiple ways. i think a good example of that is now our curb side pick up offering which has continued to accelerate and will keep that in our stores

>> some cases free standing, you don't have to go through the mall to access your stores which may, in some cases, be a plus, but you're still a department store. we have seen a lot of bankruptcies in that space even in the last couple of weeks, neiman marcus, jcpenney, are you actively marketing to pick up those customers? >> we are. in the short term we have seen stores that do close, we have taken the opportunity through local marketing efforts to really get after that business that's benefitted us over time we have many chamexamples of tht i think over the longer term we are positioned well. our stores are an asset. they are off mall. 95% of our stores are off mall that makes it convenient they are spacious.

we have layered on tovp thp of the latest and greatest safety measures to make sure our customers and associates feel safe we offer great value through how we show up in the market as well as our loyalty program that's been growing. we have more than 30 million members in our loyalty program more than 65 million customers shop kohl's. that was an all time record. i think our brand portfolio, we had fantastic and beloved national brands, iconic brands like levi's, nike complemented with these brands. we're in the early days but we're seeing customers really excited to be back in our stores some are waiting at the door when they got word we were opening up again i think all the indications for us are very strong

>> before we let you go, you did mention your cash toposition, is more than when it was around 700 million dollar 37 you went to the debt market with a 600 million offering what are you going to do with that $2 billion are you going to keep it on the balance sheet? >> it's ensuring we can navigate this highly, unusual, unprecedented time we're encouraged by opening up our stores but there's a lot to unfold first and foremost we want to make sure we have the cash we need to navigate through anything that might come our way. overtime, we pride ourselves in having healthy balance sheet we have been an investment grade company for more than two decades and we will go back to our capital priorities which is to invest in the business, to reenstate the dividend and over time pay down our debt as we have in past times

>> michelle, thank you so much for being here with us to give us the update as kohl's stores start to reopen. back to you. all right. thank you very much. courtney reagan, thank you very much coming up, housing starts an building permits plunged in april but the home builder stocks are still up 20% in the past month we'll tell you the stocks that traders are still buying and later, the billionaire of tillman fertitta will join us to discuss the roping of some of his restaurants and how he is bringing people back to tables much more after this ♪ ♪ ♪ ♪

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let's goet over to sue >> here is what we know at this hour new jersey is reopening more of its economy. governor phil murphy says elective surgeries can be scheduled to be performed starting next week beginning tomorrow, auto and motorcycle dealers can resume in-person sales. members of the world health organization have unanimously passed a resolution calling for an independent valuation of that organization's response to the pandemic the united states has sharply criticized the agency and its relationship with china. it's unclear when that evaluation will be conducted you can go to cnbc.com on the white house threats to reduce or halt its funding of the world health organization. for the first time, the belmont stakes will be first leg of horse racing triple crown the race will be held on june

20th with no fans. the distance will be shortened from one and a half miles to 1 1/8 1/8. shorts slowly coming back. >> fascinating i wonder why they are shortening the distance thank you very much. >> i don't know. i'll let you know when i find out. >> maybe the horses are out of shape. >> they've been quarantining >> they've been quarantining in their stalls they just stand around probably haven't been training thanks very much building permits and housing sinking for the month of april amid the coronavirus diana is here with that story. >> reporter: the numbers weren't pretty but some weren't as bad as expected. break it out in single family was down 25% while multifamily

was down 40% building permits paint a brighter picture permits were down nearly 21% for the month but estimates were for a 27% drop large builders have noted higher demand in just the last three or four weeks builders sentiment popped up more than expected in may with all categories of sales and traffic higher single family permits were only down 7% annually in the south where home building is busiest several analysts called april the bottom for housing sdarts but there's still concern as to whether the permits will turn into starts. the construction industry has lost over a million jobs in the last two months. tyler. >> all right thank you very much. now to seema trading nation. >> let's stick with housing because housing stocks are higher the home construction etf and

the home builder etf up around 2 to 3% today. let's bring in the trading nation team. we have bill and daniel shay of simpler trading. why the disconnect between the housing data and the performance of these housing stocks. >> looking at the data, we knew the data was going to be bad nobody wants people coming into their home, showing their homes with potential coronavirus that's a known factor. looking forward, it's a completely different situation because right now, you have millions of americans that are unemployed but at the same time you have millions of americans that are working in industries where they still have a paycheck and now they want a home with a allower interest rate. for that reason, during the summer months we will see home builders trade higher as well as key relative strength stocks like kb homes and toll brothers because they'll have people buying homes with the low interest rates

>> bill, you're tracking the stocks what are some of the key levels to watch >> first, i want to say there's not much to love here. i think ultimately the economic data will drag out you'll see lending restrictions tighten up a bit i think this is an area, you're on this rally, you look at the sector etf, it's 60% off the march low. it's an opportunity to reduce your exposure and it's running into the 220 retracement there are some stocks in this sector that could benefit more, i'd rather be in space like home depot and home improvement companies. home depot has a new high. i'd rather be there. if you're focusing on the sector, $34 will be some support. if it can build a floor, that's where you want to look to be a buyer, not up here >> got it. bill and danielle, we appreciate your time today. head to our website or follow us

on twitter back to you. thanks very much still ahead, the path forward for business we'll sit down with tillman. what he's seeing from his locations that have reopened and how he's preparing to get the rest back open you can watch or listen to us on the go or cnbc app our special breaking news coverage continues after this. when the world gets complicated,

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strong public schools make a better california for all of us. the oil market is closing for the day as the june futures contract gets ready to roll over, let's go to dom at the commodity desk >> that's a big deal right now we're seeing u.s. benchmark west texas

intermediate prices for june delivery world benchmark brent crude futures down half a percent. particular focus on that wti price with the june contracts expi expiring today is the last day for trade ng the june contract the memories of last month still very fresh when immense selling pressure pushed prices into n negative territory july, by the way, already the most actively traded wti contract it's tuesday, which means weekly private sector oil inventory data from the american petroleum due out later. expectations still for bala bui and supply back over to you >> we look forward to that restaurant sales are plummeted during the shutdown but a few

restaurant stocks have soared during this time kate rogers is looking at what that means as states continue to reopen >> things are starting to turn around for restaurants that come papers to a 26% drop the week earlier transactions are still down but this is the fourth consecutive week we have seen of improvements the group says 19 states are open for some form of on premise dining open states in the aggregate performed better than closed states by 7 percentage points. all of the best performing restaurant names have rebust delivery and carry out infrastructures. pizza players like dominos and papa johns are up 25% year to date championsh wing stop is the best performer of all, up over 40% year to

date while things are starting to open back up, consumers may be slowly returning to on premise options. thank you very much. as states continue to reopen, how are businesses faring around the country. 240 locations have reopened as well as the golden nugget casino in lake charles, louisiana good to have yo with us. i'm going to offer you some of my wife's delicious banana bread. we have that here on the menu. next time when you come by >> hey, tyler. >> earlier this year you had to layoff off about 40, 45,000 of

your employees how many of the employees have you brought back >> we've brought back right now about 15,000 it's interesting in looking at the data that y'all showed on tv, when you go to full service restaurants which, like i operate, we're still operating with the 240 that are open at close to negative 60%. it's great to be open. it's great to bring some employees back to work but we're far from profitable. right now we're just churning dollars and hoping it gets better it seems to be tweaking up a little bit every week, so far, but we have a long way to go before we can bring all employees back and become a profitable business. >> you're operating at a loss margin of 60% because i assume in the open low kaigss you are

social distance and doing lots of crowd control tell me what it's like in those locations in places like texas, tennessee, some of the states that have opened more aggressively >> right 15 to 20% are scare of going out in public yet. opening at 25% and now we're going to 50% in texas this friday, i don't think it's going to have a huge impact on business my operators are telling me we're really not turning away the business at this point it's just the business isn't there. >> yeah. for those reasons that you just cited which is fear. fear of job loss, fear of going out and some people who have lost their jobs are not going to a sit down restaurant.

you met yesterday at the white house with the president, secretary mnuchin, one of the toi topics on table was the ppp program that was intended for smaller businesses you made the case that, as i read, perhaps in some future format, a ppp-like program, ought to be available to larger companies, larger chains like yours. how was that received by secretary mnuchin and the president? >> i think they understand it totally and what happened was is the white house and mnuchin were so smart at what they did. they said we have to have a vehicle to get the money to the people so let's use the sba and get those banks to certify it and it's a nothing but a mechanism to get money to emploemplo employees instead of the unemployment line. what happened was the narrative

of big companies taking it from little companies but there's enough money there for everybody and there's so many companies that got it. first off only 9% of the restaurant vs gotten it. it's construction company, law firms. it's everybody out there the public companies caught all the grief because they had to have public filings. i don't have to file anything publicly i'm a private company. i still, at the same time, wanted the little company ps to get it first because i knew i had enough liquidity to go for a while. then it gets to the fact is why are my employees -- i would love to bring them all back on may 1st and put them all to work instead of only that portion because you work for landry's and tillman, you don't get to come back to work. i'm not getting the money. people at the corporate office aren't getting the money it's for landry's employees.

my people deserve to be treated just as good add everybody else. >> i hear your point there as i understand it, the initial ppp was targeted to those small businesses because they did not have the kind of access to credit that you, as a large chain, operator of many chains would have, and you took, rec d reportedly, a $300 million line of credit which was available to you. may not go the full distance but you had some access to credit that those smaller businesses wouldn't i take your point that your workers are just as valuable to you and to the economy as anybody else's >> that's a good point the 300 million i borrowed keeps me going further my payroll is $150 million a month, which is a billion five a

year the point is that now we're going to evaluate every company and who can get credit i had a restauranteur who my office who has four restaurants and he has a multi-millionaire as his partner that's not the face of his business everybody took it an just because you have a high profile owner or you're a public company, our employees shouldn't be treated any differently it's all for the employees and that's all that matters. what's the difference if the government money is coming from the ppp or something like it or if it's coming from the texas unemployment or any state ee's unemployment government money is government money but let us put them back to work. they don't want to sit at home put them back to work. >> i have a related question the governor of new york has been pushing this america first, i think he calls it his americans first law, which he says would refuse subsidies for

any corporation that layoffs off employees and doesn't hire back the same number of employees it had pre-pandemic does that make sense to you as a strategy and what are businesses like yours thinking about taking any government funds and the strings attached to them is it unreasonable for cuomo and others to expect the people should hire back 100% of their pre-coronavirus work force to get this relief money or keep it without repaying it. >> first off, i'm fan of mr. cuomo and i think he's done great job, but now he's in an area that he doesn't belong in he knows nothing about running businesses and if you can't hire everybody back our business is not coming back for years to get back to where it is. at least through '20 and '21 and most likely '22, all the expert

economists say to say you can't get any money unless you hire everybody back what are they going to do? how are they going to promote up how will they better their live s lives? you will penalize is company because they don't have the business anymore, it makes no sense. kelly, ask me the second part of that question again. >> i was just elaborating on it. the other -- there's so much we want to talk to you about. sports and different businesses and this and that. one of the other things people say when they hear you talking and sort of going on about business is, isn't tillman the kind of guy who lives off a lot of credit. he's highly leveraged. we would be worse off than others talk about the business choices you made and whether you regret the different choices, if you think that sets you apart from anybody out there in these similar situations >> not really.

i chose to do business and own this company myself. there's two ways to do it. you have equity partners or take on more debt i preferred to borrow debt and not have partners. my company has been very successful and been able to do whatever it wants to do and pandemic comes along that hurts my company but yet we always made good business decisions it's one way of growing a business at the same time, could i go sell equity? yes. i might go public again and take on partners. the name of the game is to make your company survive and that's what we're doing now everybody has different ways of growing their business that's the way i grew mine >> tilman, i know a lot of people are, including the

president, are very interested -- my son would say ask him about the nba. i want to know when they are coming back. will you finish the regular season will you go straight to the playoffs and when? the president wants to know, our viewers want know. >> you sounded like donald trump asking me that question lake yesterday. >> oh, my heavens. >> tell your son this, we feel very comfortable as long as the experts continue to say things are getting better in america the players want to play and as long as this doesn't continue to grow and it continues to go the other way, the virus, i see the nba playing. everybody wants to play. america wants to see the nba play and i look forward to us playing games later this summer and playing some regular season ga games and having an nba champion

like the houston rockets >> we wish you luck on that one. thank you so much. we would love to have you back you can have some banana bread we'll check in with you. we want to hear how it's going as you reopen around the country. thank you. new york city facing a huge drop in property tax revenue as residents move out and workers stay home. we'll look at the potential impact after this. i am totally blind. and non-24 can throw my days and nights out of sync, keeping me from the things i love to do. talk to your doctor, and call 844-214-2424.

as people consider moving out of big cities and companies let employees work from home for longer, property tax revenues to say nothing of sales revenues

for new york city are poised now for a huge fall and robert frank is taking a look at the hit to city finances. robert >> hey, tyler. well new york city facing a $3 billion deficit right now projected to grow to 9 billion by next year and could get worse even because of a big drop from offices and retail space now property taxes are the largest source of revenue for new york city. accounting for almost half of all tax revenue, which is twice as much as the income tax. even though the bulk of manhattan's real estate is residential, it's really the commercial space because it has higher tax rates it's more than doubled since 2001 which means new york city is more dependent than ever on the very sector that will be b hardest hit in the down turn you got the big banks and tech companies, they are shrinking their footprints then you've got to growing number of restaurants and stores

that have f said they're going to e close for good. the big hit in the day of reckoning will be june u 20th, which is when property taxes are due in new york city >> yeah. so what do you think the implications are going to be, robert >> well right now, we don't know what new york city is going to look like at the end of this number one, you've lost 400,000 workers. that tells you we won't need as much office space. then you've got companies that are going to permanently work from home or hybrid where some work from home part of the week then you've got all this supply coming on the market from hudden yards and other parts and the retail and restaurants that are shutting down. so even though the landlords say, all the big ones say look, we'll be fine, people will want to meet and be together more than ever after this it's hard to see the structure of new york city office space remain iing the same and that's big issue especially because it's become so dependent on these revenues from offices and commercial space

>> no, i hadn't realized just to what extent. thanks very much coming up, our week long crisis oc ynu wh e chesitthte stksou need to know about. we'll get into that next on "power lunch." hope isn't quarantined. first words aren't delayed. caring isn't postponed. courage isn't on hold. and love hasn't stopped. u.s. bank thanks you for keeping all of our spirits strong. we've donated millions to those in need and are always here for our customers and employees.

welcome back look at shares of spotify which have just jumped act 10% to fresh session highs after announcing a deal with the joe rogen experience or podcast. one of the most popular podcasts in the world i think t going to be starting at the end of the year the partnership will debut september 1st but still be available on other platforms then exclusive to spotty later on you can see how the public thinks this is a big deal. movie ining on to our tech i playbook, that's the industry we're looking at today it's the only one in the green for 20 to 20 up 5%. some name rs getting a big boost from the stay at home trade. whether it's people needed

software to work from home, shop, exercise, go on dates or loaf on the couch, what are some of the best napes to buy right now? here to discuss is jason, an analyst at oppenheimer so jason, tech is tricky because it's done so well. where would you recommend investors be what's the tech playbook look like for the rest of the year? >> it is tricky. the market got some of these napes right early. you divide them into four buckets. you have the shift e commerce bucket you have the small businesses quickly. you have the more lack of home entertainment bucket then the closure of gyms. we can kind of go into that, but right now, probably the best buys now are match a dating standpoint roku, amazon and far fetch if i had to pick four >> okay, so talk about valuation

and how much you think these stocks can move to the upside again because i wonder if we're starting to come out of the stay at home environment, if people are so opt missick and have priced in so much, talk about why you think they're still good places to put your money right now. >> sure, so amazon k if you l, k it's about 18 times. they should grow cash flow next year who knows. 30%. 40% off of the depressed investment levels this year. so i don't think anybody would call that expensive for what you get. i think most people own it so if you don't, we think it's still a good buy here. you know, match is very interesting from a dating standpoint you would have thought people would have canceleded their subscriptions to online dating you couldn't go out. what this prove d is is ha the platform acted as a social connecter, social entertainment.

and there's more coming. they're launching video for tinder and the company will be fully spun off. we think the business is actually transforming right now. >> wow >> then go ahead >> i was going to follow up with your pick on far fetch which is not a stock we talk a lot about here i think it's an e commerce platform for fashion if you had to pick four and it's amazon and then far fetch makes the cut. >> one is we look at where the is to b stocks are off the 52-week high. on that list, far fetch, roku are still down 24% off its highs. roku, 34 we kind of look at that. who hasn't come back it's a platform for luxury a very large percentage of luxury is purchased from people who are traveling and clearly like that, that is slowing and so the way to ultimately unlock

those dollar, that would be e commerce platform. in addition, we're seeing massive shakeout on the retail side we've r repoeported on the br y bankruptcies happening in retail on the other side of this, we see a services company much like amazon where they perform services for other people's merchandise. so we think of them as really a secular winner off of this sfwl got to ask you you go you have a hold on spotify right now. codo you change that to a buy if they get joe rogen exclusively >> everybody thought they would kind of suffer from a lack of commuting e ining and actually,d very good results and showed the stock was more resilient and did fine in a stay at home environment. our thesis is just working on profitability. it's really hard to make money in streaming music in music because most of the money goes back to the labels which is why they're building up this podcast. that being said, it will take a

while to generate advertising but that is a better business than music streaming >> thanks very much. great crisis playbook. tyler. >> all right, thank you very much the s&p 500 is just turned a little bit negative. we should point out as the dow slumps a bit thanks for watch, everybody. our breaking news coverage continues into the final hour of trading right now with the closing bell see you tomorrow >> thank you and welcome, everyone stocks taking a breather after yesterday's massive rally. the s&p back to levels we haven't seen since early march though we are looking at near session lows here for the dow, down nearly 230 points big tech back in the driver's seat with all the faang names in the green, the nasdaq within 5% of all time highs. walmart and home