traded down unexpectedly in the earnings and added to it this week. >> josh brown, what is your final trade? >> jpmorgan, sticking with it even on the pullback. >> interesting week for the banks v. a good weekend. nice being with all of you stocks are lower pretty much across the board and continuing to follow that story with kelly evans now. thank you, scott hi, everybody. here's what's ahead. the president is expected to lay out his plan to go after china the white house is holding a news conference at 2:00 p.m. markets waiting to see if a pullout out of the trade deal. plus, senator ted cruz is joining the president and others amping up the fight against twitter. will jack dorsey regret policing political speech irks the boss wants to know what you're doing this weekend because of covid-19. we'll get into that on rapid fire which is back today. first, dom chu is here with

the numbers. >> our bosses know what we are doing right now. socially distant and we have seen a little bit of positive momentum emerge in the parts of the market the dow industrials off and not near the worst levels of the day and seeing how that plays out. s&p 500 hanging above that 3,000 mark the nasdaq in the green right now. s&p 500, russell 2000, that gap is big and watching to see if it narrows. small caps still a lagging trade. take a look at the consumer. have and have notes. nordstrom down 11% after a disappointing earnings report. that consumer picture a little bit bleaker with today's personal income and spending numbers. lululemon, an upside standout, an analyst call touting the benefits to the business model and the consumer in focus. back over to you. >> dom, see you soon

thank you, sir. stocks falling on the last trading day of may but the nasdaq up nearly 6.. energy only sector lower and just barely for the month and the dow on track for the best weekly gain in seven just as the markets find the footing investors have to deal with china joining me is nancy tangler and brian rehling from wells fargo good to have you both here nancy, is china becoming a front burner issue for you is it changing your thoughts about investments? >> it's definitely on investors' minds as we kind of come out of earnings season and that headline risk is gone or that headline catalyst. so it depends on the company, right? i think that we're certainly watching it. it will move the market. i don't know if you've had the chance to read the white house report on china. it's pretty specific it's pretty pointed. i expect things to get worse

before they get better and we have kept our hedge in place because we think the summer is choppy. >> brian, do you have any expectations about this 2:00 p.m. announcement? what would you be telling the investors about how to think through the risk now >> from a fixed income perspective, not overly concerned with the 2:00 p.m. announcement we have seen this rhetoric before from the president. yes, market moving in the short term but really kind of focused on the long term the eventual economic recovery here and what i expect to be a very low rate environment for the foreseeable future drives the recommendation. >> how would you kind of bring the thoughts together, brian, if we have a recovery, why do rates stay so -- i mean it's becoming normal now. >> yeah. well, there's a couple reasons one, the fed's mandate of full employment even in a recovery is going to take a long time before we see the levels that we saw pre-coronavirus.

and two, there is a tremendous amount of liquidity in the market, continue to be so perhaps more in the future this is, of course, going to raise all asset prices i think including fixed income and that's to keep rates low and i don't see any real risk of inflation here over the near to intermediate term. >> nancy, the food inflation is what we saw in the consumer sentiment survey this morning. boosted inflation expectations and not likely to move the price level up overall i'm curious of anything that jay powell said this morning that caught your attention or the fed is in the marketplace and will be for sometime. >> yeah. so unfortunately, kelly, i was on a call at this time and i didn't get to read the headlines effectively but seemed to me he was basically saying we are going to continue to be available, we are going to stay in our lane, although i think you could argue they emerged out of their lane. >> or the lane widened

considerably. >> even better way to characterize it. money growth supply up 23% year to date. that's why i think many of the pullbacks have been shallow because there's a lot of money on the sidelines with nowhere to go so i think the fed has already done their job and now in the mode of reassuring and bringing calm to the markets. >> you have some specific picks i should mention here. a couple of them have been among the best performers. i'm curious if you feel comfortable hanging on to home depot and target and chipotle. is that the problem that everybody knows they're the clear winner >> certainly can be and so consequently we have been trimming back on walmart as a winner and putting the proceeds into target. home depot is in the sweet spot. we think housing will continue to surprise to the upside. it's got supply on its side, low interest rates and demographics.

and then some of the covid expectationsthat people will want to move to the suburbs. we will sell some home depot yesterday because it was such an outsized position. chipotle we'll wait for pullbacks but i love the story and the food and then target i just think is a great place to be from a consumer discretionary standpoint as people spend on the higher margin products and goods. >> yeah. you have a couple tech names, especially cyber security, cloud, splunk. you say for obvious reasons all of those building off some key themes right now brian, one of the questions on people's minds is not so much will interest rates go up or not. everyone seems confident they won't but will the yield curve steepen? >> well, obviously, the yield curve kind of nailed it again last summer when it was inverted

well before covid amazingly enough we have seen it, of course, go back into kind of positive slope here we do expect a little bit of yield curve steepening but nothing dramatic i think it would be very -- a very good sign to see dramatic-year-old curve steepening but it is not in the cards. >> it's weird that it inverted and then got the pandemic. were we headed for an economic event anyway did we need a huge fed response? this was just the way we got it. it's metaphysical. >> yes it was strange eerie, as a matter of fact. >> yeah. eerie. all right. i will leave it at that. brian and nancy, great to talk to you both this afternoon >> thank you. in the meantime, we mentioned china. let's get to kayla tausche with

the latest to expect with the president holding a news conference at 2:00 p.m they haven't said it's about china but that's the wide expectation. >> reporter: well, president trump yesterday said that there would be a press conference today about china and when just moments ago that 2:00 p.m. rose garden appearance added to the calendar the expectation that is this is a place for the president to escalate geopolitical tensions with china. a few months after signing that much heralded phase one trade deal a lot has happened in the intervening months and just this week the president's top economic advisers and foreign affairs advisers presented him a menu of options, possible policy actions to take with regard to china. in addition to signing a bill that was passed by both the house and the senate imposing sanctions for china's treatment of muslim minorities, other things under consideration is sanctions and asset freezes and visa revocations for top chinese officials in response to the

hong kong nationalsecurity law and a special status assessment and then a possible revocation of visas for chinese students and researchers here in the u.s. that are found to have ties to the people's liberation army in china. it remains unclear what exactly the president has decided and will announce this afternoon but certainly anything on that list would represent a pretty dramatic shift in relations between the u.s. and china compared to where we were just a few months ago the white house has so far been mum on exactly what is in the works. here's nec director larry kudlow asked earlier today by a reporter what the white house was planning to announce and whether there would be a press conference today. >> i believe so. i'm not going to front-run it. but i believe the president will have a lot of comments on china. china's been a very bad actor as you know we have talked a lot about that. >> reporter: one point that every single source i spoke with agrees on is that there's a

considerable ramping up of rhetoric against china going goo into the election even if the economic actions are shelved until after that fact. kelly? >> thank you very much talking more about this now, joined by niklas lardy at the peterson institute, also a long-time china watcher. la what is your expectation of possible announcements or moves of the u.s. in response here >> i think the main possibility is a revocation of hong kong's trading status in the united states that's certainly one of the major areas where you could react in response to the security law that china's going to introduce in hong kong. >> what would the affect of that be do you think? >> i think it would be tiny to nonexistn't. we buy almost nothing from hong kong made in hong kong most of what hong kong exports to us comes from china and vietnam, southeast asian countries and those goods are

subject to the tariff that is apply to goods originating in those countries so chinese goods through hong kong they're already subject to the high tariff this is apply if they're shipped directly from china. hong kong could ship to the united states, last year about 4 4$75 million and putting tariffs on that wouldn't have much affect on the hong kong economy. >> i guess the bigger question is about hong kong as a global financial center i'm not sure it's an interest many americans need to be bothered about maybe financial firms and tens of thousands of americans that live in hong kong. is it more about trying to undermine hong kong as a source of prosperity for the chinese as it becomes more a part of china? >> well, that may be part of the president's thinking or secretary pompeo's thinking but i think it's mistaken. china does not rely very much anymore about funds raised in

hong kong. hong kong was extremely important 20, 10 years ago but today not so much. they have a domestic stock market that's huge where their companies can raise money. some of them prefer to go to hong kong but even if hong kong's rose as a financial center eroded it would not have a significant effect on the chinese economy and the demise of hong kong as a financial center has been forecast over and over again starting in 1997. and it's remained a very vibrant financial center it has -- it is a complex ecosystem that's supports that they not only have the legal firms but the accounting firms, the credit rating agencies all operating in hong kong so this infrastructure if you will, this ecosystem, will not go away overnight even if the secretary of state decollars that hong kong is no longer an autonomous

area. >> fair enough i'm curious what you think of the other moves potentially under evaluation here including revoking chinese student visas, sanctions, a thing that keeps coming up time and again philosophically, do you think they're tools to be used and if so which tool would be most effective or maybe you don't think it merits a u.s. response? >> i think it does merit a u.s. response i think we are vitally concerned about the future of hong kong and should be doing everything possible to maintain the status that china promised at the time of the handover in 1997. i think the main way we can do that is to cooperate with our allies and present a united front against china. it's a basically what we call name and shame china frequently responds to a coordinated international

criticism. they rarely if ever respond to unilateral pressure from the united states. and what we have seen in europe, the europeans aren't really willing to do anything about the developments in hong kong. they may say it's unfortunate but not thinking of imposing any sanctions and i don't think the administration made any effort to reach out to potential allies in europe, particularly with the uk or countries in asia that are much closer to this. so i think we have missed an opportunity. we responded immediately without coordination and it is important to keep in mind this law hasn't even been drafted yet. we don't know what's for sure in it it won't be passed by the chinese legislative authority for another couple of months so maybe we should wait to see what was in the law and try to mobilize some international criticism if it was warranted

which undoubtedly it would be. >> interesting although the protesters aren't waiting but good backdrop to think about this afternoon niklas, thank you so much. with the peterson institute for international economics. as we hit the heart of home buying season, we'll look at the epic shortage we are seeing and the impact on prices. not all big box stores are created equal. target and walmart blew past expectations for the quarter and costco came up short. twitter's battle with the president and white house is intensifying by the hour we have the very latest after this

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voice solutions like remote call forwarding and readable voicemail. and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs. call today. comcast business. welcome back if you're in the market to buy a home and searches are coming up empty the pandemic has led to an epic supply shortage for a closer look at how we got here and what it means for prices and the market in the future, let's check in with diana olick live in washington this afternoon >> reporter: we were in a pretty severe housing shortage before all this happened and then when the economy shut down not only did sellers pull their listings but those about to list in the usually busiest spring market put that off supply basically fell off a cliff in april and now new listings are still down 20%

annually and total listings down 22%. that according to realtor.com and the builders were clearly unprepared for this quick recovery in demand a single family housing start and permits plunged in march and april and with labor and supply issues it's hard to ramp up fast before covid the market short about 350,000 homes per year in light of household formation this is going to make the market increasingly expensive especially at the entry level where demand is the strongest. kelly? >> why the shortage? is that still a legacy of the housing bubble and crash >> reporter: it was a legacy of the subprime mortgage crisis you had nearly 9 million homes in foreclosure and 5 million purchased by investors that turned them into single family rentals. people thought they would sell them off they did not that's 5 million homes that used

to be for sale now as rentals. >> maybe give them a rent to buy option diana, thank you very much housing is a rare source of strength new home sales rose 1% this week defying expectations of a drop home purchase apps up despite the pandemic but there are critical pressure points to watch. let's bring in tim miopolis the president of blend, a start-up digitizing commercial banking. i'm curious what you make of the surprising strength in the housing market right now >> well, it's good to be back with you thank you. this is a pretty remarkable story. obviously going from march to april we saw this dramatic increase in unemployment spike unlike anything we have seen since the great depression the number of people asking to stop making payments on their mortgage loans in forbearance

climbed to 8%. and then as diana was noting that the number of participants in the market, the number of listings in the market fallen back significantly but there's some really good signs of a rapid recovery here. obviously low rates kept refinance activity very high at roughly two times what it was last year. and purchase activity is really starting to rebound. we see more sellers putting the properties on the market more buyers coming out to buy and certainly the data i'm looking at including data at blend shows that purchase apps really fell off at a quite significantly march to april, maybe down 30% but by earlier this month they were back up where they were in march and now they're another 20%, 25% higher than that so looks like people are coming back to the market. >> i can tell you people in the suburbs of new york city, whether it's new york, connecticut, new jersey, they are getting inundated with people who are looking for homes to purchase and who want to do so quickly

curious about another aspect of the mortgage market that's been a big headline and a big source of concern, mortgage forbearance to help people in the pandemic and big demand immediately which threw the market into disarray and i think still trying to figure that out, but it's really slowed down lately it slowed down substantially i suppose we have to take that as a good sign but i wonder after this program is up what happens if people run into trouble later in the year, next year and so forth? would they try to bring it back or just kind of a one-time thing and we hope that's the worst of it >> well, it is somewhat encouraging to see the number of new requests coming in and slowing down and hopefully people feel more stable about the employment issue but lenders that we work with at blend are preparing for a potential wave of potential delinquencies and ready to modify loans if they need to. really trying to streamline that process. use some of the lessons of the last crisis to get people back

to rates and terms that they can actually afford to pay so i think we'll see a wave of that loan modification activity coming at us. >> it was interesting now diana said the wave of foreclosures after the last crisis, had investors in the market. now a lot of those homes are rental properties, people looking for homes to more chas do you think we could avoid another round of that this time around, avoid foreclosures, losing more of the housing supply to rentals and so forth >> i think we learned lessons in the last crisis and there's trial and error at the governor romneying of the last crisis to figure out what would work policymakers determined that so i'm not saying there won't be foreclosures that is a risk but the mechanisms to avoid that are well established now and implemented swiftly. >> interesting that's a place to watch. thank you so much.

>> thank you coming up, traditional sports leagues may be shut down but e-sports are in full swing and great news for the jobs market and the explosive growth in hiring there. there are two sectors that are closing the gap with tech and could be the best time to get in. watch or listen to us live on the go on the cnbc app. where will you go first? will it be familiar streets? or perhaps unknown roads? wherever you may go, lexus will welcome you back with exceptional offers. find a lexus for every road at lexus.com. no payments for up to 90 days on all 2020 lexus models. experience amazing at your lexus dealer.

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remember, this is a very strong week the best week in seven for the dow overall. energy is only sector down on the month. the financials have been strong this week. the industrials weaker could tell you something about the markets nervousness of the china situation. let's get a sense kind of the outperformers and underperformers. home depot up today. that's leading the way flip side raytheon technologies and boeing down more than 3.5% american express down 3% today. remember the long lines on costco, must have hurt more than helped we'll explain. plus investors are hot for coffee stocks. and a big win for electronic arts and why your boss may be grilling you about the weekend plans. it is all ahead in rapid fire. "the exchange" is back after this at mercedes-benz, nothing less than world-class

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welcome back let's get to sue herera for a news update. sue? >> thank you very much amid nationwide protests over the death of george floyd, in police custody, minnesota authorities announced just minutes ago that the officer seen with his neon floyd's neck chauvin is arrested. also a short time ago, new york governor cuomo says new york city is on track to start the first phase of reopening on june 8th. tyson is temporarily shutting down the pork plant in storm lake, iowa, after more than 500 employees who have been diagnosed with the coronavirus and protests continue to pop up at hong kong shopping centers a day after china moved to

impose a national security law that would increase control over the region lots of moving parts at this hour, kelly. we are back in an hour of course depending on the president's news conference. back to you. >> we expect that around 2:00 p.m. thank you, sue. let's get you the other stories on the radar today rapid fire is back in a social distanced way. here to break down the headlines are dom chu, courtney reagan and eric chemi whom i'll chat with from across the room love the background, courtney. >> thank you. >> let's start with costco dom, i'm coming to you tale of two months march shoppers were flocking to the store. sales were up 10%. april stay at home orders hit fewer people visiting the stores sales down 5%. the stock down today they just did not -- gasoline sales down number of visits fell. when you have the peers like target and walmart just hitting

it out of the park what happened to costco? >> i'm not the expert. i'm an every day expert on costco i'll defer to courtney for the nitty-gritty details but i'm there usually every week, buy everything from tires and rims to milk and other goods there. the reason why you have the costco story so interesting this time around is that because when people did spend at costco they did so on perhaps lower margin items, grocery and food items as opposed to other things like discretionary items, not the clothing or the goods there. that's a big deal for costco and i would point this out a lot of times i will say this, i have not been to costco once since the economic shutdown went into effect. i did go before the shutdown happened to stockpile but since then i haven't been so maybe that's one of the reasons why, as well. >> courtney, same for me we like to go but the time it

takes right now, the hassle, the lines are crazy. dollar general same store sales in the quarter up 22%. target up 11%. walmart up 10% costco 4.8% and first time they missed the expectation in what over a decade? decades plus i think. >> yeah. exactly, kelly it was very interesting because we saw some of perhaps the earliest indications of the stockpiling behavior and the increased traffic from costco and maybe it was regionality and so that was different, where the stores were located and when the stockpiling happened earlier faster and among the first ones to have the long lines and to sort of be telling us monthly about what they were seeing and just absolutely sort of out of the park numbers for traffic and for sales but to your point, to dom's point, as the shelter in place orders wept into effect in much of the country shoppers

really pulled back traffic fell 4% worldwide and when they were there the transaction size fairly large up 9% they went in with a strong intent to buy and the conversion is strong and what we have heard and what i find fascinating, kelly, the point about gasoline down 20% year over year selling that, too, but looking at bj's wholesale, maybe that's a better comparison their comps even ex-gasoline up 27%. with gasoline up 20% >> wow. >> so there's some differences there that are a little hard to account for. again, store location could actually be playing a bigger part than we're able to sneak out of these numbers. >> eric, we need nutella. >> tell producer paul and kate to get them that they usually deliver and the thing of dom, looking at the numbers, why did costco do so badly i haven't been to costco but a

target you get in and out and the long lines of costco, you see the photos and think let me get in the long line, too. i think it suggests a different business model remember, they also have that membership fee so as long as they keep getting the fees that's a huge proportion of the profit they'll get back to costco in the summer when it makes more sense to do that. >> very true got to get the nutella among many other things. we have football news. the nfl renewing the exclusive video rights with electronic arts and easing the distribution rule of live games on sunday and impacts mostly fox and cbs shares of ea down fractionally today. up 12% for the year. and the media giants struggled eric, bottom line, this means they can now show -- is it like all the big games at once in the market >> it's making a little bit

easier and fan friendly. so take an example, say you live in dallas and on one weekend fox has the doubleheader, cbs has the singleheader and seeing three games and if the dallas game itself, the local game in the market comes up against the doubleheader they try not to have the other channel with the game against your local team so the idea originally for the nfl was that tv was based on the local market living in pittsburgh, we want you to see that steelers game without competition and trying to get to the point of fans to see a lot of other games, betting on multiple games. fans of different teams and making it easier than if your local team is on they'll say, okay, cbs or fox, you can show your other game across at the same time. that the actual local market team is playing. >> dom, seems to maybe that underpinning the move is the idea that we need people to be watching when they come back, however they can.

>> this is a -- arguable if the iron is hot or lukewarm right now but what you want as the nfl is viewers to come back. may be a while perhaps even before fans go in the stands what you want right now is to just watch your sport and for that to me this is an incremental development. what i would like to see personally is to have everybody be able to see the market, the games they want in whatever market they're in and we're a far cry from that. >> red zone. >> you can but just for the scoring ones if direct ticket and as a san francisco 49ers fan in the new york area i watch that on a more relative easier basis i guess that would be a bigger development to me here but the ea sports thing is interesting because everyone seems to be playing a version of madden nfl. >> jobs boom coming from that later. courtney is big on red zone but we'll save this. talk about the ipo

pete's coffee owned by panera and others and making it europe'slargest public offerin this year and soekd largest globally a week after bankers started to market for the deal. what does this tell you? >> there are certain companies just is a market for even if you just look at the fundamentals of the company, 80% of the coffee at home consumption. wholly cow am i drinking more coffee maybe it's easier right there around the corner. right? this is a consumer staples company and look at the market we had really wild days earlier on and seems to be a much tamer atmosphere in the market right now and it does look like investors are looking for opportunities here and they might have found this sweet spot sort of both in a fundamental term and where the market is right now in terms of acceptance

for something like this. >> i think that's a good reminder this isn't, dom, a business that is all, hey, you are going to stand in line at a coffee shop it is mostly the stuff that you are making at home. >> i can tell you this we bought to courtney's home a lot more coffee these days my wife is pregnant and drinking decaf and i'm drinking more coffee and i'm a peet's fan and the brand resonates with the very specific part of the market like starbucks does and perhaps with this demand out there it does indicate a good, strong consumer products brand you are still able to command some kind of a premium, for investors and consumers. >> finally on this, eric, it is not just peet's coffee warner music talking about the ipo. it feels quick but the -- look, the market is almost back to all-time highs january, february, you might have done an

ipo and then looked back and same way to talk to traders about do you think there's time to drop down in the next few months maybe the guy that is want an ipo we have to get it right now. this is good enough. do it before we drop 20%. >> true. it does have that feel finally, before we go today, as employees are beginning to return to the offices their bosses have some questions for them and want to know what they're doing over the weekend this was in "wall street journal. legal experts say they have to be clear not to violate privacy because -- so here's the thing we are taking so many precautions around the office but now everyone is -- no longer is idle banter what did you do this weekend but a feel like how close do i want to get to you >> this is about as close as i feel to being a professional athlete with a clause in my contract saying i can't go skydiving or motorcycling or anything else on the weekends but to this point i mean, i kind

of understand. if there's a time for employers to have latitude with regard to invading a privacy it would be now. right? contact tracing, everything else i guess i wouldn't really -- it still bothers me people knowing what i do and not surprise me if my employer wanted to know more about maybe who i have been in contact with, the things i'm doing. >> your wife is pregnant we know you are -- i don't think there's a lot to learn about the habits of dom chu but some other employees might feel -- you might have a wild side life i don't know about you. >> do not. >> courtney, you might be going to a bar, maybe you don't want to share -- but like, it does raise a lot of questions if it's an ethical thing to do right now. >> it totally does i started thinking when i was learning about this topic and trying to figure out how i felt about it, say i wept to a family wedding over the weekend where it was a gathering of some people, not wild party but i

don't know where they came from. is that something that i'm going to need to share with my boss and colleagues in order to inform them of my whereabouts? this is a super tricky one i do not envy hr departments right now across the large corporations because i don't know what the right choice is. >> eric, what do you think >> think about the companies that give you a work-issued phone and know where they go and if they can telephones around other phones and density there and moving around and we don't have to ask you. we can just quietly look at the phone data over the weekend and it is our phone, work device, our product so maybe we don't have to ask anything and get the information. >> maybe we should be more concerned if they're not asking because they already know. thank you. appreciate it very much. that does it for rapid fire today. want to draw your attention to ox dental we troem yum.

petroleum shares set to resume in 1:45. ahead, the president and twitter head to head over content and now he is threatening to pull the plug on a crucial safety net details next. investors taking note. twitter shares down for the third day. the dow up nearly 6% this week e mobile on the now platform, something's gotten into the office. i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it? i do. huh... forgot my glasses. serivcenow. the smarter way to workflow.

welcome back the war of words between the white house and twitter heating up after twitter flagged yet another tweet by the president and the white house not pulling any punches after that twitter shares have been down throughout this back and forth, down another 3.5% today. let's check in with julia boorstin for the latest. >> reporter: president trump tweeting this morning revoke 230, he is referring the part of the communication act that protects platforms of held liable for the content that is shared on their platforms.

then this comes after last night that president tweeted about the riots in minneapolis including saying when looting starts the shooting starts. twitter putting a warning label on the tweets and writing this tweet violated the rules of glorifying violence. however, twitter determined that it may be in the public's interest for the tweet to be accessible and placing a public interest notice on the tweet from the white house twitter handle this standoff between trump and twitter started tuesday when the social platform applied a fact checking notice on two of the president's tweets about voter fraud. yesterday the president's executive order advocated for a crackdown on facebook and twitter by limiting section 230 and increasing the oversight of the ftc and the fcc. facebook also says that repealing or limiting section 230 will actually restrict more speech online rather than less by encouraging platforms to

censor anything that offends anything back over to you. >> it would go well beyond social media we think of pinterest as a social media company but anybody when's hosting content online falls under this, don't they >> reporter: yes absolutely but i think what's interesting is yesterday we saw pinterest and snap shares end higher and pinterest and snap aren't places for sharing opinions on political issues, public discourse, pinterest is usually and there were some issues of vaccination and most part pinterest is recipes, home decor. snap is private messages so it doesn't have those issues so this affects facebook and twitter and then also youtube much more so than it would affect a pinterest and a snap. >> yeah. still could be wide ranging depending on the plan. julia, thank you coming up, shares of electronic arts and take two are surging as competitions are

taking place and while most live sports are sidelines sparking a surge in revenues and hiring the numbers next. here's a look at the names leading the dow for the week and it is the financials up. raytheon which is correcting to the downside today up still more than 7% on the week. we're back in two. okay, give it a try. between wisdom and curiosity, there's a bridge. between ideas and inspiration, trauma and treatment.

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. welcome back we have some breaking news on the fed. let's get to steve >> some new data that you should get used to. the fed announcing the trades that it's made in the etf space. it was this past month or in this month that the federal reserve, the first time began buying exchange traded funds in

order to purchase corporate bonds. the top sponsors were black rock at 755 million this is for purchases made for may 12th through the 18th. the lgd was the number one fund. these are all corporate bond funds. this data is a bit older maybe some of your market exerts will tells of where you want the fed trade. >> i will speak to one of them in a few minutes meantime the pandemic may have

sidelined traditional sports but there's one sport equipped for no contact and social distancing before the outbreak. that is esports. josh lip ton joins us now with more on the hiring boom this is creating. the audience will reach 495 million. that's a jump of 12% according to news and the industries continues hiring too job postings are 30% higher than the same period last year. ea and twitch and activision stg

>> we have been able to make that shift pretty seamlessly from a focus on live events to more broadcast and strains >> he said there are potential head winds he says those really do want to reach that younger demographic back to you. >> i'm just glad there's one place expanding and hiring thanks so much still ahead, the s&p 500 is on face for its second straight monthly gain and it's not the only index picking up steam. we'll look at some of the laggards trying to play catch up the president is holding a news conference at top of the hour. he is expecting to speak about

china. you see the preparations well under way. we'll have much more on the exchange

welcome back the mashlg is lower. there's a stealth rally under way. the small caps and the transports are closing the massive gap not only with the s&p 500 but with the nasdaq and fang stocks. john, it's great to have you here people are getting concerned about getting into the market at all right now because they think we're going to go through a june swoon and these other things

why would you not recommend getting into stocks but these markets that tend to be more sensitive to pull backs. >> right now, we've had a nice rally off the low about 42%. the small caps which had lagged quite a bit as well as the mid caps those stocks are being helped by a lot of these fed programs that steve just mentioned the debt that the fed is buying and if you listen to chairman powell, today, he said that even though they are buying a lot, most of the buying they are doing hasn't even begun yet. they still have a lot of fire power left we're seeing these big, drastic moves. not to mention the central banks around the world who are also increasing their money supply, china, japan, obviously, the eu. all those things are positive and a lot of that money is flowing to the big cap fang

names but it also trickled down. you're trickling down to small caps, mid caps and they are catching up. off the low in march, the small caps have actually matched what the larger caps have done and those indexes are also very heavily weighted towards financials it's going to be a big russell rebalance in june. there's a lot of stocks that are heavy into the financials. a lot of things. something that nobody is really talking about is this six trillion tlars that the fed and the government are pumping in, that money, there's a big on that money the banks will get servicing fees for that money. whether you call it zero to 1%, that's big amount of money in $6 trillion >> interesting obviously, it's going to be what the they are trying to do is go to the smaller regional banks

that have a big weight in the russell. that's positive. i think things are going in the right direction. trump could change all this in five minutes in his news conference with china and hong kong people are in it for the long term i think the pain trade is still higher this is the most hated rally things are looking better. the fact that there's 68% of the people who are unemployed are making more unemployed the credit card data that jamie dimon talked about we're seeing big up ticks in that as well as google mobility tracker. all those things are very positive going forward not to mention heat wave that's coming next week that will force everybody to get out, do some planting i went to a home depot this weekend. i was online for almost a half hour waiting to get shrubs and bushes people are nesting a little bit. they want to go out.

they'll go to those places where they feel the most safe. >> got you >> the places that have the best ppe. >> we got to hop we got to hop. you got eight seconds till the p pres you are still long that's the main take away. thank you, sir good to see you. >> that does it for the exchange i'll join melissa on power lunch starting now we'll see you in just a moment i'm melissa li tensions with china heating up amid the coronavirus out break all the major averages are on pace to end the green for the sec straight month the president also targeting twitter. threatening more regulation as the social media giant screens another one of his tweets. that stock is under pressure again today. right now we're waiting a news