chnology is putting a little pressure there so that's something worth watching as we head into the final hour of trade. >> and keeping an eye on shares of twitter and amazon after the elon musk tweet this hour just to see if there would be impact to amazon when he calls for breaking it up >> see if there's any smack talk on twitter >> see you later closing bell starts now. >> stocks falling for the first time this week s&p 500 headed for the first down day in five nasdaq 00 retreating from an intraday record high we saw earlier. the final hour of trade. the cdc says it is very concerned the public isn't taking its advice as the number of u.s. coronavirus cases begins to rise. new jobs data. continues to be sobering with millions more americans unemployed and hiring remaining slow 1.8 million americans filing for

unemployment claims last week, but we are seeing sectors most sensitive to economic reopening. sharply hire american airlines rilgt now, trade iing up some 45% wilfred. >> it's actually pared some of those gains. about 43%. ahead on today's show, tim ryan has a six step plan outlining his company's pledge to support black lives and it goes well beyond cash donations. he'll join us with his message plus, a key question for millions of newly unemployed americans. what happens when federal stimulus programs run out? let's focus though on the big stories we're watching today first of all mike is tracking the market action phil lebeau is watching a huge surge for airlines before the pullback and courtney reagan covering a battle between landlords and retailers, but mike, let's start with you and the broader markets. >> hard to make too much of this

headline softness after such a sprint that the market has had take a look at the two year chart the s&p has had. we did see today mostly, the nasdaq 100, clicking a new record high then giving way to profit taking so the big cap techs that are down. rest of the market is holding its own and bank stocks up some 4% 31.30 is the level that was b e basically hit yesterday. markets stopped on a kim in the afternoon, pulled back a bit today's morning high around 31.29. maybe there's rell raevance to s levels or the machines deciding that's where a bit of this burst can cu it had a r similar kind of flatten bing out of the rally then gave way to this period over the summer months, so not to say things have to match up patternwise, but wouldn't be that shocking if we did something like that now as different as the circumstances on the ground are. sentiment, it's a bit of a

contentious matter here whether people are still bearish or getting more bullish just as national oesuation of active investment managers tactical investment managers, so they really try to seize on all the different market moves this is their equity exposure. it's come up about 91 on this scale here pretty high on the chart t getting a level where it's the upper end of the range however, main street mom and pop investors not really buying it still more bears than bulls in this poll. it has improved. it's more or less 50-50, but at this point, still not fully b buyibu buying into it and whether they are trying to position to caps to upside or still cautious >> i guess the other thing that stands out today is the move in bond yields particularly longerr and the ten-year above the .8 handle and quite a nice steepening of the curve, which

is one of the reasons the banks are rallying so much in light of a falling rest of the market >> and certainly encouraging macro signal following the ecb move ten-year treasuries released that's been pretty much a high so that measure is a good macro signal the to see how much stocks ran because bond yields have been stagnant even as the market on the equity side gives out. >> see you soon. >> airline stocks soaring as carriers add hundreds of flights to their schedules american air in particular phil with the details. phil >> when you look at what's happening with the airline stocks, it's all in large part because the investor is looking at the schedules for june and july and they're saying look, if they're adding flights, they must be anticipating more people will go back in the air and that's why you see the toks moving higher. overall, delta, united,

american, southwest, their schedules in june compared to may with are up 27% and then when you look at july, american out with its july schedule this morning, saying it will only be down 60% compared to the same month a year ago most of the increase is going be because of domestic flights. here's doug parker talking about the additional flights >> we're starting to add flight bac back not all. domestic is going to be 55% of what it was, down only 45% so travelers are coming back t that's good news >> and that's lit a fire under all the airline stocks today but one thing to keep if mind, passenger levels the people who the tsa are screening, they're still down about 80% so it remains to be seen whether or not we see the cust omers to fill these flight.

sxwl up 40%. we also talked about with the civil unrest in america, of course you have the story about the moment that he shared with the flight attendant last week that quickly spread viral on social media what did he say about it >> well he retold the story and essentially, this was a story of him going on a southwest flight because the american flight was booked on the way to panama city and there you see him with the floigt attendanlt and she approached him and they discussed black and white relations in america because of the book he was reading. white fragility and the conversation had an impression on him when he talked about today >> there are just barriers that exist that are not as evidence to those of us who benefit as they are to those who are, who don't benefit. and you can talk about it, preeappreciate them. so look, i think as ceos, we need to start first, look within our own companies.

and make sure we're doing everything which i think we want to do. i know we all want to do that. that will make a huge difference we employ millions of people but then to collectively, i think business, needs to work together to help you know make change in the country. >> doug parker with candid comments not only about american needing to do more, but corporate america as well when it comes to relations between black employees, white employees and ta conversation that can be painful, but needs to take place. >> phil, i couldn't adwrgree mo. very powerful comments we'll discuss it later with the pwc chairman i want to pivot back to the share prices, up some 40%. up 103% from its lows so it's doubled, but the thing i guess that stands out is it takes his year to date performance to till down about 40%

which then puts it more in line with some of the other airlines and i guess it shows that american had been the one beaten up most aggressively none is less, amazing that just saying a couple more flights coming back online in the next month allows quite such a big rally. gl the reason that american was beat up more than the other airline stocks when they were all down at their lows, three, four weeks ago, maybe a little longer is because of the debt levels people looked and said wow, if there's an airline that's going to struggle to make it, it's american because of those debt levels and nobody's saying they're out of the woods yet because they still have that debt, but the fact they are adding these flights along with other airlines adding flights is giving some investors that perhaps the road might be back faster than anticipated. >> zoom video, which could be traded a little bit, down 7% today. now to the impact of the coronavirus pandemic, simon property turning up the on gap

suing the company over missed rent payments. >> so gap to be far a from the only retailer behind on the rent payments, but it is simon property's biggest tenant and they want to get paid so they're suing gap inc for $66 million in missed rent. gap in krrkc said it hadn't madt payments and it is just starting to reopen some of those stores in a statement to cnbc, they say we remain committed to working directly with our landlord or agreeable solutions and fair rent terms just as our hundreds of industry and government partners have sat with us in good faith to shape the post ko landscape. ious are everywhere.

victoria's secret, foot locker, their working on negotiating some retailers take one to two months for merchandise, they're not paying them for about six months some shopping center owners have collected as little as quarter, others close o 70% all trickling down to commercial real estate. the retail delean quincy rate is spiking 6.5 percentage points from april to more than 10% in the month of may according to trip commercial real estate data wilf, back to you. >> courtney, last week, the pushman and wakefield ceo told us only 30% of his retail tenants right now are paying rent, which just adds to what you've reported there. i'm wondering if the courts are likely to side with the shopping center owners or with the stores

because for gap and so many of o the other -- tailers, they don't have any cash flow coming in what are they supposed to do >> exactly they don't have any cash flow coming in, but i don't know if the shopping centers have a lot of leverage either in what are they going to do kick them out. probably aren't a lot of people lining up to fill those spaces so i think it's going to keep the lawyers busy and it's probably going to be to be bought contract by contract. i think all the parties are going to have to come to the table and be honest with their financial situation, market by market i think it's probably not going to be a one size fits all solution for the retail across the fleet. or for what many of these shopping centers are willing to accept i know you mentioned the one real estate property that had collected about 30%. cbl. some time ago, said they only collected about a quarter, but others have collected up to about 70% of rent. so it's going the vary wildly. many retailers say we're in the process of figuring this out

a lot of retail shopping centers say abatements aren't on the table for some of these large guys we expect to get paid but i think this fight is going to drag out a bit >> we've got just under 50 minutes left of the session. now down 0.8%. over 1% on the nasdaq. coming up, tim ryan will join us with the detailed plan his company has to address racial injustice and it's about much more than just monetary donations. you're watching closing bell on cnbc

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totally against them and now i'm starting to really investigate and think about whether this would be helpful and let me tell you the reason why. if you are left to self-police yourself forever and you fail continuously, then you may earn the roll, you may earn the, you may invite supervision and so what i think we have to do is

make sure that companies are on the call that if they don't make an improvement of this area, representation, like the communities and the customers that they have like the world, if they don't have representation, that they will be subject to forced injection of a process to get more representation >> powerful message yesterday from urs ula burns, the first black female ceo of a fortune 500 company at xerox about how corporate america needs to step up and put those targets in place to fight racial injustice. pwc establishing a diversity and inclusion officer. sharing with employees annually and giving all employs one week of paid time off each year to volunteer with non-profit

organizations and a two-year fellow hip program for employees to help advance public policy on this issue joining us now for more is the u.s. chair, tim ryan what really stood out here was that this wasn't just another sort of thoughts and prayers statement of support and donation to the cause. that you're really putting in place some measures to tackle this issue head on talk about how this came together >> yes it's a pleasure to be here on such an important topic. the reality is seeing people hurt quite a bit over the last week, i heard from over 5,000 employees directly. the e-mails, texts or conversations, everyone and people are angry they're upset. they're exhausted. and they want action they want a heck of a lot more than just saying we condemn. george floyd or many others and they want to

say -- as we read those e-mails and as i read them, it was clear that our people wanted a say in how we shape our future and instead of being defensive, we're going to listen to our folks and that's why we formed this counsel, which is going to advise us on what anchoctions t take it's a major step because they'll tell us the way going forward and as you mentioned in your opening comments, sharing our annual plan transparently, the good and bad for improving with our people, that's how we'll get the sustainable action and that's really what this is about. it's not just having a good speech or word or statement. but moving beyond action that would drive the outcomes she was just talking about >> and tim, what we've seen in the u.s. tragically has firsthand experience of the worst outcomes we've sadly witnessed again in the last couple of weeks. >> what is so disappointing is

we are in a moment right now in 2020 with george floyd and many others, but unfortunately we know these killings happened over and over again. in 2018, we lost our associate who was watching tv in his apartment was shot by a dallas police officer in 2016, we had shootings in dallas in 2017, we had charlottesville. as a business community and as our elected officials, we have to work together to get a sustainable solution i'm proud of how our country is rallying now, but we need a sustainable solution which is a real foundation between american employees who are going to give 30 individuals the opportunity to spend two years working with non-profits, working public policymakers to shape a sustainable solution and we're going to invite business ceo action and diversity and inclusion but also give their

people the opportunity for fellowship and get an answer for the long-term. >> tim, i looked at your management team on your website and it is certainly diverse and you have a number of black representatives there. what about your workforce overall in i believe you employ over 275,000 people. how diverse is it? >> yeah, so in the last where we had 55,000 people, as you point out, we have one of the most diverse issue of teams, the mos in our history and country, our board is also diverse. just had a record recruiting year and tomorrow i'm expected to tell you we have 213 partners and 50% will be women. i want to be clear we have a long way to go which is why 5,000 people reached out to me in the last eight days so i'm proud of the progress and outcomes

it's clear to me we have a long way to go as does every company out there. >> you consult with thousands of companies across the country i wonder how you feel they're doing and in fact, whether or not the coronavirus makes those racial inequalities even worse >> yeah, so thank you. we have the privilege of working with hundreds of companies across the u.s. and we speak with hundreds of them on a weekly basis it is clear that coronavirus has been very challenging for them but what's remarkable to us is how well work is still being performed. office work, multiknowledgeable. essential workers are still getting their work done. one of the key messages from ceos is that work will never look the way it did 14 weeks ago and it's not going to look the way it does today. we're seeing many companies reimagined what the future work

looks like and that gives us a massive opportunity to improve diversity in the workplace so we can create better environments, dealing with children, so as we look to see work here imagined with the companies we're working with are making it imaginable. >> we start wd a sound bite from ursula burns talking agent quotas and targets i wonder, tim, if this is something we could eventually build into an audit? a diversity audit and how that would work because you know as she said, self-policing these kind of issues for corporate america has not gotten us that far. >> what's clear is accountability measurements play a huge role. in the step we've taken, that' going to make the plan available the our people and we'll present it to them to discuss. we believe that transparency will be a major catalyst to action one of the reasons we want to

show that today, we think it's a really good practice for many organizations, which will then drive more action. i believe most companies report accurate data, but an audit will be another way once you get that transparency in the data out there, which is how we're going to build trust in society. >> tim ryan, thank you for joining us >> thank you very much >> keep us posted as we roll out those numbers. we've got under 40 minutes left to go before the closing bell. take a look at stocks. weav we're hovering around session lows the first down day in the last five dow's down 115 down about 174 a few moments ago. s&p 500 down about three quarters of a percent. financials going strong. nasdaq down 1% still ahead, online betting markets giving jobz the edge in the 2020 election. we'll look ahead to november

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35 minutes left of trade ch here's a check on the markets. dow's down about 115 tech getting hit today nasdaq down a percent. let's check in on some video market movers. zoom soaring in its nasdaq debut today, mark iing the first tech ipo since the coronavirus pandemic the company pricing at $21 per share yesterday after raising the range between 19 and 20. it's trading up 66% to almost $35 a share. shares of jm smucker falling the company says it expects to see a sales decline over the next year thanks to weakness in its away from home business. still, they did report a beat o the top and bottom lines the ceo will be on mad money tonight. 6:00 p.m >> and i mentioned earlier how

maybe people were selling zoom video because of the airlines rising but maybe it was a zoom for zoom trade which clearly is taking place today >> always confusing. >> i know. well there's going to be, it bet there are some people who have those two companies confused still ahead, the nasdaq 100 hitting an all time high today with names like apple, microsoft and alphabet now firmly in the green for the year, but they've slipped since hitting that high. coming up, we'll focus on the outlook for apple in particular and other tech names with tech expert tony as we head to break, a check in on bonds. ten-year about 0.8%. that's helping the banks, which remain the best performing sector back in a couple

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exactly 30 minutes left of the session. two sectors holding ton to gree. financials and industrials because of the airlines. predominantly utilities, health care, all down comfortably more than 1%. we've softened throughout the session. we were down about 140 points or so on the dow moments ago. down 100 now 0.7% on the s&p 500. as i said just under 30 minutes left here's what's driving the action the cdc says it's very concerned the public isn't taking its

advice as the number of u.s. coronavirus cases begins to rise again. new job loss data continues to be sobering with millions more americans unemployed but we are seeing sectors most sensitive to economic reopening higher at american airlines, up 45% at the high. now 41.5%. >> time now to get a cnbc news update with sue. hi, sue. >> hello, everyone here's what's happening at this hour three minneapolis police officers are facing up to 40 years in prison after being charged with aiding and abetting in the murder of george floyd. bail has been set at $1 million apiece defense attorneys are seeking reduced bail the attorney for lane says it was that officer's fourth day on the job. in michigan, governor wh whitmere and mike duggan joining a protest against the death of george floyd whitmere calling for a united effort for rer form. >> i think right now in our

nation, it's critical that we come together. not just black and brown communities, but everyone who sees the historic inequities that are playing out in a tipping point in this country. it is on all of us to be a part of healing, of solving problems and that's why i wanted to be here >> senator grassley has put on hold some of the trump nominations until the white house explains the termination of the termination nart grassley says the lack of explanation is not good for the presidency or government accountability you are up to date i'll see you next hour back to you. >> all right, see you then thank you. we've got just about half an hour left of trading 27 minutes left. here's where we stand. we're off session lows we've started to recover a little bit only down 60 points and we tarted the show at the top of the hour, down about 170 s&p 500 down half a percent.

also an improvement just in the last few moments and off the lows as well we look at where the strength is continues to be in banks and industrials today. financials and industrials are confident. after the break, nearly 2 million more americans filing jobless claims make iing this committee more crucial what happens to those workers and the overall economy when the government's additional benefits end in we're going to discuss with peter orszag, next. first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance.

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welcome back the united states reporting more than 14,000 new covid-19 cases raising concerns that the protests of the death of george floyd and reopening of certain

counties are helping spread the illness. arizona, utah, oregon and texas seeing their daily average cases week over week surge between 50 and 110%, however, daily average cases for west virginia and illinois are trending down more than 30% overall, they are coming off of much lower number, especially in the rest of the country and nobody's sounding the alarm quite yet in terms of the protests and spread, but we are watch iing those numbers to see where we are in this pandemic. >> as tom lee pointed out by the middle of this month, it's going to be a good test given the delays it takes to manifest in this virus if the protests don't lead to quite a notable pick up, that might be a small positive that can be drawn from it all. we have to wait and see. >> though remember those pool parties in the ozarks all over social media, that was over two weeks ago. haven't seen a huge spike in cases there yet, so we'll see. >> we'll see

fingers crossed. s&p 500 is down 0.6% 25 minutes left a host of government stimulus programs are set to expire and receive loans on june 30th available through to july 31st the mortgage relief ticking clock. plus, the treasury department and irs announced yesterday that everyone with eligible information on file. what happens when these programs start to dry up? joining us now, peter orszag, laza lazard's ceo of financial advisory, served under president obama. very good afternoon. thanks for joining us. >> good to be with you >> it's a big debate going on in terms of how quickly people who are currently furloughed will come back the work how much people will suffer when some of those benefits we just mentioned are removed. where do you stand on that

>> i think this is a looming problem. the economy is going to remain weak for a long period of time three quarters of the impact from the cares act, three quarter of the economic effect from the cares act ends as of september so there's a big hold that would need to be fixed or filled in order to avoid waves of bankruptcy and a lot of unnecessary economic pain. but i think there's also an important question here, which is the cares act basically was preserving the past. it was trying to keep people attached to their current jobs as much possible help out people who are unemployed and so on, there's a question about how much as we continue to provide some additional government assistance, how much we want to be preseving the past versus investing in the future because it would be a shame all we did is try to do kind of a deep freeze on the way things were as opposed to making some investments for a brighter future

>> what do you have in mind and what kind of trillions of dollars are we looking at? >> well, look, interest rates are low, so yes, there's a significant cost involved here, but there are a whole variety of things that we could be using this moment to do to leapfrog and invest in a brighter future. everything from the military if you read the new book the kill chain, there are a whole series of different types of systems that our military should and kocould use. so hardening our infrastructure. you go down the list and there are lots of things that we could be doing now when interest rates are low and where we need some jump-starts to economic activity that would be hugely beneficial and we should be debating how much of that we should be doing versus just trying to kind of keep in place exactly what we had before

>> the problem is peter, in a way, the market has come back. we've seen this incredible rise and so the stimulus debate is kind of quiet right now and we've gone back to partisan bickering and they can't even agree on whether to extend the $600 bump that unemployment benefits get so where are we, actually, on any of this? >> i think people are ignoring what will happen if we don't provide some additional support. in other words, we've got an unemployment rate that may well hit 20% tomorrow even with massive government intervention you take that government assistance out of the equation an xwroul see a significant air pocket that doesn't mean everything's exactly the way it should be, so you mentioned the unemployment benefits congressional budget office came out today with an analysis suggesting that five out of six people receiving the additional benefit receive more income with the benefit than at their job. that probably needs to be

adjusted but we absolutely need to be extending assistance of some form even if we modify it somewhat and redesign it a bit >> peter, i totally get the argument that interest rates are low and we should seize that opportunity to spend on long-term investment programs and infrastructure and like. where do you u stand on the argument as to whether much, much higher debt levels will come back to bite one day in i mean, are you suggesting that if we do those programs, we should issue debt that's super long in its maturity or is that not even necessary? >> well i think right now, the higher debt levels are not our biggest concern or problem, but this is also why it makes a lot, if we're going to be running up the debt and trying to both benefit the economy now but also generate longer term economic effects, it's much better to be spending the money on things that have those long-term

benefits as opposed to just cash payments that are, that also raise the debt but don't have that long-term economic return that's one of the other reasons for trying to think of this as a combination of short-term assistance, but also investment for the future the more we do that, the less we should worry about, even if you are worried, the less we should worry about the debt effect because there's an economic asset associated with that >> we were just showing the results of a poll that cnbc has with change.org about this idea of the return to work bonus. in other words, using the extra relief money to incentivisenty e people to return to work 70% of republicans we found would prefer to get that kind of bonus than the bonus remaining on unemployment, 90% of democrats would rather get the unemployment money

which makes more sense here for the economy we're looking at >> well we need to be doing a bit of both and this is why the design of that initial unemployment benefit is off a bit. you don't want to be providing much higher benefits while unemployed than your earnings while on the job so the first step before we even get to those harder questions, the first step is let's extend the expanded unemployment benefits but adjust the design so that five out of six people are receiving unemployment benefit for their earnings that doesn't make that much sense. but the pirs most important thing is to extend something because i don't care what kind of provisions you put in place, t there are going to be a lot of unemployed people at the end of july it's going to be a lot of hardship for those families and a negative for the economy because again, it will create that air pocket that we were talk iing about earlier.

>> that poll was change research, not change.org thank you. we appreciate the insight. >> thanks for having me. >> up next, the lights come back on in las vegas. and ebay pops on an upbeat outlook. dow's down 74 points and we've got 17 minutes left of trade ♪

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but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. 13 minutes left in the trading day. joining us now for our last chance trade is stephanie link welcome back what are you choosing today? >> hi. so stanley black and decker, one of my favorites at this moment right now. a play on two important themes it's a stay at home stock. also a reopen stock. it's a stay at home stock because 70% of total revenues come from tools and storage and

we know they'll benefit from the diy trend. 35% of their business is home depot and lowe's so that's a theme i like the it's also a reopen stock because they sell products to really beaten down industries, energy, manufacturing and auto so i think as the economy recovers, these end markets will recover for them they have excellent product innovation digital is everywhere. i think that's going to lead the market share gains when we come back and i think they'll be able to see a normalized organic plus they have comparisons coming up. they had a restructuring announcement in april. they expect to see a billion in cost saves so that should help as well. trades up 16 types earnings. next year's are going to thrgro2 to 30% >> up about 3% today we've got 11 and a half minutes and we're now in the closing bell market zone commercial free coverage of all

the action heading into the close. we're down 0.6% on the s&p 17 points on the dow we've bounced quite nicely in the last 20 minutes. which was down 187 on the dow and let's kick it off with the broader markets. financial, industrials, materials, utilities and real estate at the bottom and mike, we saw a nice bounce sort of this morning in the futures markets when we got the ecb news then it's going to be quite choppy throughout the rest of the day, but i guess all in perspective we're up a couple of percent for the week >> up 38% and over the past 58 trading days hard to get too excited. everyone gets excited about this rotation and everyone seems to embrace the idea ta we're going to rotate from the big familiar growth stocks. well this is kind of what could happen to the headline index if

that dynamic really starts to take hold. you have the nasdaq 100 tag almost to the penny then pull back by almost 1%. seems like the rally yesterday was a little bit of a grab, a chase, and maybe in the short-term and yet right now, the avrnl stock is basically flattish in the market so that rotational action can be constructive without it helping the big cap indexes. >> and we are seeing a bit of that continue today. financials, industrials and now materials popping green. stephanie, is that an investment theme that you've been par it pating in? >> yeah. i've been saying if you want to have f a bit of a barbell since march, i think you definitely want to have some technology, health care, some quality growth, secular growth, but you wanted to have some cyclical ideas because they were beaten down hard. they're still down hard. some down 20, 30, 40%. so that's where you're going to get the pop if you believe

you're going to see the economy rebound. i think this is all about ly quid ty, guys. we've talked about i the ecb on board again and adding to their program now. global, fiscal and monetary policies are 27% u.s. is now at 44% of gdp. this is how long and potential, a huge potential tail wind for risk on stocks but you have the reopenings happening and it looks like it's successful so far. we'll keep an eye on that and the economics data is not good, but it's getting incrementally better and that's important. plus you're hearing companies like ebay and general moe tors saying things are absolutely opening up in may versus april so therefore you've seen the worst behind us and all these policy moves can help stocks going forward, so yeah, i think that does help the value trade at this point. >> well speaking of reopening, las vegas taking a major step in the path forward from the pandemic today casinos opening their doors on the strip with extra precautions in place

contessa brewer has been monitoring that story for us >> hi there. yeah, considering all that las vegas has been through in the last few months, strong demand surprised a lot of people. the doors opened to enthusiastic crowds, temperatures checked and screened the dealers are decked out in their ppe. and analysts think it's a lot of pent up demand investors though seem bullish. take a look at shares this week of mgm up 25% look at wynn and eldorado. moody's is sour on these stocks though forecasting a 70% drop in industry earnings compared to 2019 because of those capacity caps and because of hits to discretionary income through high unemployment. wilf >> i have a question, contessa, on the safety precautions. >> yes >> can they sterilize slot machines in between uses and

cards? how do they deal with those high touch activities >> they're doing a lot of increased sanitizing of the slot machines and remember, they're shutting off certain machines so they can create social distance between the slot machines while they are accommodating players there. the cards get turned over more frequently and the chips get sanitized more often as well >> the slot machines won't be the problem because you're doing that on your own it would be the crowding around the tables or bars that would presumably lead to the most contact. >> and those are limited yeah they're not let iting in crowds like they used to so people are going to have more elbow room. >> sounds almost ideal, but almost i guess the operative word thank you very much for that let's get to a few analyst calls on the banks deutsche bank downgrading to hold saying while the stock has been the best performing bank among peer, a lot of good news is priced ain and deutsche bank

upgrading wells fargo to buy saying it believes most risks for the stock have been priced in meanwhile, barren suggests it might be time to look at value opportunities and highlighted three deep plays citigroup, morgan tstanley and goldman sachs topping that list for them i think the interesting thing is that' ooempb though morgan stanley and goldman sachs are down 5 and 7% respectively year to date of the big cap banks on a price to book multiple, they're still pretty cheap because of course the investment banks are cheaper on that multiple compared to some of the commercial banks so it fits that deep value play in the way that barren books says, but you can understand the deutsche bank call if you're just looking at relative percentage performance year to date that selling goldman and buying wells fargo would maybe sense. still down 44% year to date.

>> i think the segment was made for me and you >> mike and sara, you can go home >> first and foremost, i own morgan stanley i prefer it over goldman sachs they're kind of trading at the same valuations but you have to make a bet on whether you think this e*trade deal is a big one for morgan stanley, which i do and if you like goldman sachs, you have to think they're getting into consumer businesses so i would rather have e*trade. more wealth management and that's why i like morgan wells, you know this is, i have totally understand this callment i mean wells is down 44% year to date and as you mentioned, goldman down about 5, so the valuations are not that crazy. i mean wells is at .76 times book and goldman at .9 so it's not huge, but i do like the story of wells because of you

have the new ceo, the turn around that the ceo can reduce a 68% official efficiency ratio. peaking even 65. he wants to get it down to probably 60. that's huge ultimately it's not going to come overnight but i think that you also have a catalyst with the asset cap getting removed at some point so there's a lot to think especially with the stock down so much and capital levels still strong >> you guys have reached your max on banks i'm going to move on to ebay shares now sharply higher after the company raised guidance. diedra with a details. >> hey, sara ebay paring earlier gains, but still up more than 5% as we head into the close the company upped its q2 and full year earnings and revenue growth and that all important gmv gross merchandise volume met

rirk rick, which was expected to decline for a second straight year previously. now today's surge brings ebay's gains to about 35% and that pon par with amazon and closer to some other e commerce plays like sho shop shop shopify, etsy and wayfair. it should be surging as it surges a spark in online shopping, but this is a bit of catch up here for ebay back to you. >> thank you mike, encouraging for broader industry, consume r spending or an e ebay story? >> it's largely i think an ebay story and obviously e commerce it was sort of an ongoing turn around at e bay. also, it's a cheap stock so it's unlike the other e commerce plays where you have to hold your nose. it's been dead money for so long and was considered to be nonoperating for so long that it

still has a low valuation when you think it was good or bad for an e commerce company seems to be benefitting from this repricing higher because it had the potential to do that it was obviously you know, the value name in e commerce >> mike, we've just got a little over two minutes left of trading. we're seeing a pretty nice recovery here. the dow now only down 15 points, could go positive. what's driving the rebound >> it's unclear if there's anything in particular it's been these kind of waves of rotation going through the ma markets going in and out of the big cap groups but the volume split has been positive all day the average stock in the market has been outperforming so you have positive breadth. about 3-1 there. then take a look at the equal weighted s&p 500 against the market cap week to date. sill outperforming, so it tells you there's rotation from the

megacaps and everything else volatility index this morning, finally it started to give way it's unchanged now did trade below 25 there's starting to be an unclinching action as the market has made a new high, but here we go not sure if at this point the overall indexes maybe are going to start to hit a little bit of a soft ceiling because they've come so far in a hurry >> just under one minute the dow only fractionally negative, down what, 14 points, having been down at the low 187 points s&p down 0.4%. nasdaq down 0.75%. financials, industrials, materials, the three positive sector banks in particular leading the way. the bank index up about 3.8% utilities, real estate, both down close to 2% today we've got a weak dollar down about half a percent today the euro particular lly strong today even though the ecb

announced a bigger expansion of its ambulance sheet. gold rallying again. again, expansion of balance sheet plays into that. the dow has just turned positive as the bell goes it is up by two basis points or five points. s&p 500 now down only a third of one percent and nasdaq down 0.7% the russell pushing to go positive at the close but till fractionally negative by one basis point. the doe at close up 13 pints or 0 0.05%. >> not a lot, but quite a comeback that has marked just in the last hour of trade we were down almost 200 about an our ago. welcome back take a look at how we finished up the day on wall street. the dow actually closing higher. just barely. 12 points. boeing leading a charge and a nice recovery there in the final hour of trade, dow is up more

than 3% now r for the week s&p 500 did break its four-day win streak and close lower but there were some pockets of strength that we noted like the banks and the airlines the three biggest gainers on the s&p today, american air, united and delta. the nasdaq closing down about .7%. big tech cap trade did take a step back. that weighed on the nasdaq almost all day long. the russell 2000 closed pretty much unchanged investors are awaiting a trio of big earning from gap, broad com and slack. we'll bring you results as soon as they are out. plus, shipments are expected to fall a record 12% this fall, plus how that will impact the tech giant's stock joining us to talk about the market today, stephanie link and mohamed el-erian joins the conversation from allianz. a pretty nice recovery and the

dow has gone for four days in a row of gains and importantly, when the s&p took a tep back, it held on to recent gains, which has confounded a lot of people looking at the economic data and some of the risks that are out there. >> for the most part, it did it basically retained most of the upside i don't know if you want to make too much of the gyrations during the day. just seems as if everyone is asking the question of has the reopening momentum been fully e reflected in these laggard groups thask leading the way are people getting over excited about the theme and what does it mean for the big stocks that drive the index and got us here. yields get going higher again. dollar down again, so it seeped as if there was this appetite for risk was still there credit seems fine. just a matter of whether the indexes maybe stretched and of course we have a big jobs number tomorrow i don't know what the market wants to trade off of with regard to that number, but

today's jobless claims data inside and on the headline wasn't actually that encouraging relative to some recent ones >> i wondered what you made of the ecb announcement this morning. clearly increasing the bond by more than consensus. ga gauge how big that program is relative to the u.s. and whether you knefeel things are fully prd in it was interesting to see a rally on the news and that faded quickly for both european and u.s. stocks. >> so what didn't fade is the narrowing of spreads under peripherals. italy, spain and that reflects what the market believes with, which is that the ecb is all in. and the ecb by almost doubling its focus program is telling you i don't care what the german constitutional court believes, i am going to continue doing what i'm doing, but importantly, and that's where the impact op the equity markets are r more muted,

consumer said we're not going to high yield unlike what the fed did. and it's that refusal to go into high yield, which i think is the right call, that told equities be careful, you're not going to get the support of the ecb further down in the capital. >> why is that the right call? look what the fed has done when it comes to the credit market and the appetite for risk that people are take iing now in the u.s. corporate bond market, the amount of issuance that we have seen and the ability for big corporation no matter how they're rated, to raise money right now during a the tough time >> you said the key phrase there. no matter how they're rated. when i see a central bank taking on default risk and believe it or not, the fed already has names in its portfolio because it bought the index. j.c. penny, hertz, niemann

marcus they're all in bruf sankruptcy procedures so the minute you take on default risk by central bank, you start to sacrifice benefits for the longer term benefits we as a country, one of our secrets is we have a market based system and that market based system relies on price signal on markets being able to mobilize resources and allocate them in an efficient manner. the more you distort a capital structure, the more you distort pricing, the more you lose what's special about us so we end up in extreme zombie markets. that's why i'm hesitant to say the move into high yield was a good one >> we've seen a reaction in the euro today the u.s. dollar index down half a percent. down 2.5% almost over the quarter the last couple of months s. is th is that a big positive tr stocks or more of a market correlations

risk on risk off type thing in the moment >> well, i do think it's positive let's watch what how the dollar does react that's one of the key things that i am watching because it will help multinational companies and the earnings copper has been outperforming xwo gold and the yield curve is steepening those signal risk on and better growth and they're saying you want to own more cyclicals and less defensives. it's very, very important. in addition, i'm watching the economic data and listening to what companies have to say but the trends are interesting and i think people are still skeptical. zpl optiozbl options trade are betting on a surge in volatility around the 2020 election as joe biden pulls ahead of trump, as

president trump as the likely winner of f the presidential race in the betting markets yet despite the slight pullback, stocks keep drifting higher. mike, you've been looking at this and it's clear there's a bit of election risk tarting to be priced in, but it's not dragging down stocks as of yet >> not yet it seems as if on a day-to-day basis, it's a lit early for the market to be tacking in one direction. a loft the betting markets, oddsmaking outfits are showing it to be somewhat closer so the henling of f volatility risk around the election is kind of hedging the sus spence or idea there could be a close election or some surprise it's not clear in any election year that the market ever particularly knows what it truly wants long-term out of an election it's just about most elections in america, about 48% of or 49% of people end up disappointed and you therefore have the potential for some kind of reaction after the fact, but it seems as if right now, the

market has other bigger issues to contend with before it w worries about exactly who's going to be the president january 20th of next year. >> is it possible to make an investment thesis based around how these polls are going and how the options market is trading around who might be president? >> the bigger issues and that's what's dominating. if reopenings remain healthy because the market has embraced the notion on a healthy reopening accelerating and we are going to get lot of data over the next two weeks you know we've had a massive national experiment accelerated with the protests. we now have very clear contrast between where you had konz tr e concentration of people and where you didn't so we'll have data to asasess whether or not e

can have a healthy reopening don't estimate that this is a win, win mind set for the marketplace. you still win if you don't because the fed will come in so i think that's really important that these are the go big issues i think the election is a third. >> you said many weeks ago don't fight the fed and clearly, that was correct, the markets have rallied, but given the amount we have rallied, do we need the see ongoing strong reopening data? is there an element of that now fully priced in? >> i think a lot is priced in for sure just given the moves, but again if you look at the stocks that have f lagged, the sectors that have lagged, cyclicals, economically sensitive names, some are still down 20, 30, 40% on the year and so if you b kobt to get support in terms of the economy doing better incrementally i mean 1.9 million issued claims

is terrible but better than the nine million from a couple of month ago so we're going to watch that look at the isms, pmis mortgage applications. they're up seven weeks in a row so i think you have to pay attention to the data and then more importantly, you have listen to what some of these companies are saying and i think what they're saying is yeah, may did improve from april can we keep the momentum going and that's going to depend on whether the going back to work and the reopening trade continues to show okay evidence. better evidence. >> yeah. except tomorrow is jobs report is set to be a doozy let's get another check on how the airlines finished the day because it was a wild session. they were the three biggest winners in the s&p 500 american air finished higher by 41 and a quarter percent on the day after seeing demand for domestic flights steph, where are you on this group? it's been quite a comeback >> oh, gosh.

this is one cyclical group that i don't really plan to be honest with you i never like their balance sheets this is the extreme of cyclicality. then you look at something like an american airlines and they have 35% short interest. so i mean i think that you can trade these names certainly. that's not my game but i do own boeing and that's the one that i am actually more encouraged about especially now that the 737 max production has restarted we have to still get certification but i think that's your next catalyst as well that bond deal was really the game changer though for me because they wouldn't have to come into the market and thinking people were nervous they were going to have to do something extreme so they didn't so i'm sticking with boeing. i have plenty of other cyclicals to be buying this is not a group i would do >> you got exposure there with boeing your bottom line feels like you're saying stick

with the market because the fed is all in. is that your advice to investors? >> first, i'm so happy that i'm not managing other people's money because i wouldn't know what to do i would be so torn on the one hand, concerns about fundamentals i think that we are getting ahead of the reopenings and the airlines, an exam ol of that but on the other hand, respecting the fed's support so i'm really glad i don't have to make that decision. for my own position, i have liked what i call the higher eququality names, the one that o well big tech was an example. i just don't want to bet on moral hazard that's my own preference i respect people who say not just follow the fed, which i'll do all day long, but lead the fed because what the market has been doing it's been leading the fed in terms of how much support they're going to get from that central bank

>> thank you both very much for joining us great to see you stephanie will be staying with us to break down some earnings results. still ahead, gap and broadcome expected to report earnings coming up. this moment. this moment right now... this is our commencement. no, we'll not get a diploma or a degree of any kind. but we are entering a new chapter in our lives. our confidence is shaken; our hearts cracked. the kind of a crack that comes from the loss of a job; from life plans falling apart. we didn't ask for it... but we are rising to meet it.

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the fraflt was for 188 that's 50% year over year growth there. the loss per share was smaller than expected. expected to be six cents, came in at two cents and the gliuide look reasonable for the future quarters, q2 at 206 million revenue. the forecast was for 200 and for the full year, forecasting 855 to 870 where as expectation was 860 million in terms of revenue, so maybe that full year guide given the run rate in the first quarter perhaps could have been a bit bigger and that might be what it's reacting to. in terms of customers, we're seeing now 122,000 paid customers at the end of the last quarter. it was 110,000 and 963 spending more than $100,000 annually at the end of the prior quarter it was 893 but either way, as you can see,

the stock's down about 13% and slack's ceo will discuss those results tomorrow morning and diedra is able to join us with more color on perhaps why the stock the trading lower after hours. >> i think that full year guidance is a part of it but i think what's been really key to investors is its momentum, it's adding paid users. remember this is a stock up 40% in the last month alone. 70% year the date so expectations were extremely high and the company said that it added 12,000 net new paid customers. remember towards the end of march, the ceo in a tweet storm said they had added 9,000 paid customers with a month left in the quarter. at least some analysts were expecting a bigger number here hoping the pace would keep up perhaps 13,000 new paid customers or more, so 12,000 new

paid customers is a a little bit less than expected and the key surrounding these work from home plays, we saw this earlier in the week with zoom, is whether it can keep up this momentum whether these work from home gains are sustainablesustainabl. in the case of zoom, it satisfied investors, at least not a big drawback in the share price but with slack down nearly 12%, perhaps there's a little disappointment these numbers weren't better on the pay customers and full year guidance >> thanks for that steph, where do you stand on this as d points out, it's had a phenomenal run year to date. >> yeah, it's up 123% from the lows of march so it's really very high expectations and i think diedra's spot on in terms of f new customers and the additions there. 9,000 people got all excited about and you know it was up from the 7,000 that the company had released like a month beforehand, so we all thought the numbers would be extraordinary. but let's just keep this in

perspective. they grew 22,000 new customers they'll do 17,000 in the first half of this year it looks like so i think it's about expectations but the growth is till there this is classic work from home beneficiary. let the dust settle. not my kind of name, but if you want growth, they got it and a duopoly in the business. >> butter field saying the long-term impact of working from home will have what he calls a generational magnitude impact on our lives. looking forward to that interview tomorrow so despite today's pause, we've seen a rapid rally back from the march lows for more, let's get to ross. the u.s. versus the rest of the world. this is a week where we also saw stimulus flowing from germany and the ecb stepping up in a bigger way than expected why do you want to be in the u.s. versus other markets around

the world? >> well, i think it really comes down to what do you want to bet on and absolutely europe's had a great week i think a lot of investors had an announcement today and it's not that they're not tactical opportunities in europe but we're still in a period to state the obvious where there's a lot of economic uncertainty. we're dealing with a very uneven recovery and in that environment, looking at the next six to nine months, one of the scenes we want to lever to isty. profitability. low leverage, earnings con sis ensy e you see more exposure in the u.s. market than any other place in the world >> russ, again, we saw a significant announcement by central bank today increasing a balance sheet. does gold become attractive given all of those huge monetary stimulus plans that have happen nd the last couple of months >> i think it does and it depend

depends on what you want i know investors think about gold as an inflation hedge i think the evidence on that is mixed. when we think about gold in the portfolio, we think of it as a risk mitt gantt. in order, something you own that's going to be negatively correlated with stocks that's going to help manage the volatility and portfolio having said that, the problem with gold is it doesn't always work in periods like 2013 during the temper tantrum, it worked against you. when it works is when rates are low, particularly real inflation adjusted rates that's the world we're in today where central banks are keeping nominal rates at zero. historically, that's been a good environment for gold >> are you concerned at all that the valuation on the u.s. market is now the highest it's been in years with so many major economic and earnings risks ahead of us? >> it's consideration and i think like everybody else, that we have been surprised by the magnitude, the speed of this

rally. it's hard to remember how dire things looked a few months ago having said that, i think that the valuations look more reasonable when you think about looking at long-term earnings, obviously, any number you plug in for 2020, '21, is going the mixed stock expenses if you look at long-term cash flows, particularly when you adjust for a low discount rate, in other words, zero policy rates where we have today, a month and a half period of time, we do think this equities will be reasonably valued in this environment and that they're probably going to be higher six to 12 months from now. >> russ, as weather be've beedi there's been a big rotation into value. one has banks in the u.s. but you're more caution on those caution on those names, is that right? >> we are. we're underwaits financials but a lot of it has to do with banks that sounded the u.s a lot of our underweight is in

places like australia, canada, europe there are banks in the u.s. we like so i wouldn't abandon the sector, but yes. if you think about it, we have expectations for recovery. but we don't think it's going to be a v shaped recovery we think we're in a low rate environment for a long period of time and we're also in an environment where the yield curve is relatively flat and that's historically, a tough virnlt for the banks particularly banks in europe where not only is the yield curve flat, good parts of it are underwater >> russ. thanks so much for joining us. much appreciate it >> thank you we've got two retailers out with earnings. gap and rh courtney >> so let's start with the gap for the first quarter, the gap is reporting a loss of $2.51 it's not clear if this is comparable with analyst's estimates.

revenues did fall shy. the street was looking for 2.3 billion. no comparable numbers but they're getting numbers, down 50% net sales. old navy down 42%. banana republic, down 40% and a athh athhelt down online sales up 40% in april and 100% in may. gross margin of just 12.7% gap shares are under pressure after they've had a run here and we know that simon property group is suing them for $66 million in owed rent let's move on to rh. the furniture seller, which had a strong quarter putting up consensus of a doll r lar. the street was looking for 81 cents. revenues up 483 million, also stronger than expegt cexpected they talk about a strong rebound

in the second quarter. about 75% of galleries, 68% of outlets and 50% of restaurants rh does expect that the business trends will continue to improve and said the improved week over week starting in march throughout the quarter shares of rh are just higher by 2% but also had quite a run of about 75% over the course of just the last b month. back to you. >> courtney, thank you mike, we get a snapshot here of winners and losers in retail on gap, i mean if you're hook g i looking for r good news, online sales were up but down for gap and banana republic, a nonessential store that faced big challenges even before the pandemic >> yeah, you almost can't really use what they've reported as a guide to what this facompany is worth, frankly and those percentage gains in e commerce sales are not absolute numbers we don't really know to xa degree it's off set in dollar terms what they've lost in

physical stores, so this is one of those stocks that was just caught up in this mad chase for for reopening plays. it closed don friday below $9 a share. they're just kind of getting whipped around based on sort of the latest zeal for how aggressive you want to be in pricing in a more full reopening. >> we've got broadcom numbers out as well. josh lipton has them for us. josh >> so wilf, broadcom's reporting q2 $5.14 revenue, 5.74 billion. last year at 5.69 billion. outlook, they provide quarterly guidance here. q3, they're looking for revenue of 5.75 billion. plus or minus 150 billion. in terms of their segments, semiconductor solutions, 4.03 billion. that's wireless communications storage and industrial

other big segment is infrastructure software. 1.7 billion. that's in line with what analysts were looking for. mostly enterprise. that stock had rallied up hard about 100% since its march low gl steph, where do you stand on this one >> i own it, actually. i still think it's a really good value. at 14 times with a 4.25% yield what i want to hear and see is just the free cash flow because they're levered at three times or at least at the end of last quarter, that's where they're at so i want to see what the free cash flow is i think expectation is fairly realistic because they have a good piece of the business in data terror, networking and infrastructure the wireless obviously is struggling and they had supply chain issues, too, but i like a lot of their business mix and let's see what they have to say about cash on the call >> steph, thanks so much for that and thanks for joining us as

always >> thank you coming up, mike looks at how apple shares tend to perform in the months leading up to the lease of a new iphone. and we will ask a top rated analyst on wall street about why he's seeing huge growth potential for the apple watch and you can always watch or e bcpp to us live on the go on thcn awe'll be right back. ves f, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will - you can rely on the people and the network of at&t... to help keep your business connected. ♪ ♪

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ever something's gone mogotten into the office.m, i hear you. feels like there's no barriers between departments now. servicenow. the smarter way to workflow. welcome back apple expected the launch its newest iphone in september as it does every year. over to mike who's been look in at apple's performance in these months leading up to an iphone launch >> yeah, this is a fun composite chart from ned davis research shows apple stock relative to the s&p 500 in the months surrounding a launch so the zero is the date of lawn. this is more than a dozen years worth of apple relative performance kind of bundled into one chart. what it shows you in the three

months we are now three months before the expected launch in september. in the three months before, it has on average outperformed the s&p by about ten points after which it kind of goes back before resuming. it's not obviously like this every year but it just shows you the general direction of the win when a launch is coming into play and so obviously i think it's monday literally, june 8th, that would be three months ahead. interesting for the atmospherics >> thank you for that. let's stick with apple among the megacap tech companies outperforming, it's up about 10%. new data says shipments could fall by 11.9% in 2020 but our guest says the real growth opportunity from apple could be from its watch joining us now, tony great the see you as always.

before we get to the positive view on the watch, the statistic was globally in light of the pandemic how much on an issue is that for apple? >> look, i don't think, i think that's relatively realistic. all technology spending is correlated with gdp and you know we expect global bgt could be town 5 or 10% this year. that's worse than financial crisis during the financial crisis, we saw smart phones back then pcs would be a good analogy, fall 15 or 20% and so having a double digit decline in smart phones is not unrealistic. from the beginning of the year until right now, we've lowered our iphone estimate by about 13%. it's 13% lower than it was at the start of the year for physical 20. i think that's largely baked in

the numbers. investors realize that and as mike was pointingout with the chart before, they tend to be anticipatory particularly in advance of new product cycles. >> why the watch, tony why are you so excited about the watch in particular? doesn't make up a huge chunk of apple's business and hasn't really been at least that we know of, a high growth area. so why now >> yeah, look, the watch, you're right. it's only about 4% of f apple's revenues and so you know, really hasn't been a significant contributor. and i think our belief is that you know the watch actually could be something significant if it was repurposed and recast as a focused health monitoring device right now, the watch is an expensive appendage to the iphone it's not that e is cy to use particularly for people who aren't tech savvy, particularly perhaps for older people who aren't as tech sa vi and whose

eyesight isn't as good you're seeing all these health mettics now being built boot watch and forthcoming in other wearables, so right now, the watch can do detection, it can measure your heart rate and ecg but there's technologies to look at blood pressure. blood oxygen saturation level. i think with the pandemic, people are becoming much more sensitive to their own health. and key metrics that might inform them in this case, whether they might have coronavirus, but might inform them about a medical condition and particularly with tell medicine becoming more important or a larger part of medicine going forward, we think there's an opportunity for apple to really take this technology and build a simple, less expensive purpose focused which would be almost like a doctor on your

wrist. a health monitoring device and we think the addressable market would be hundreds of millions of units as opposed to 25 million that apple might sell today. >> tony, i wanted to ask you what you think about the balance sheet and cash balance clearly, there's a search for yield at the moment likely to be there for the next five years sor o. should they pivot more towards a regular, bigger dividend >> you know, apple is returning more than 100% of its cash flow generation right now and it's paying you know, depending on where the stock level is, a dividend that's a little under 2% and a little under the s&p. but it is returning more than 100% of its free cash flow and that's coming in the form of share buybacks and it's buying back between 5 to 7% of its

shares per year. there's a debate among investors about which would they prefer. would they prefer a dividend or would they prefer a share repurchases and apple is weighted more towards share repurchases and we believe that you know if you buy back 5 to 7% of your shares per year, that boosts your eps by 5 to 7% per year and we think through a combination of services growth and buybacks, apple is grow double digits and along with a yield that's 1.5 or 2% r, we think that's attractive. clearly, there are yield focused investors that would prefer more of the cash comes in the form of a dividend rather than yield, but the important thing is that cash is coming back just happens to be in the buyback >> so tony, wrap it up for us. where are you on the stock right now? believe your target is a lot lower than the price that we are right now and what do you think will be the key driver into next

earnings or product release? >> yeah, so look, the market's run up a lot we don't change our target a lot. we last said it was above the per vailing price of apple stock so we are modestly positive on the name on one hand, the stock has had a tremendous run on the other hand, the business model is proving to be resilient, r particularly in a time of stress we think earnings will be flat so on balance, we're constructive on apple. there's a cyclicality to how the stock trades and we do have the big product cycle coming in either september, october, with 5g and because iphones were not great last year and because they were not great this year because of economic weakness, we think there's a potential to be very strong iphone sales in '21 and or '22 and the market largely anticipates that and will continue to.

so we think the stock will continue to farewell ovir well e next several months. >> then you need to raise your price target then from 285 >> again, we don't do it every week, so all in due course >> tony, thank you for joining us >> thanks for having me. >> good to dauk to you coming u up, we'll squ the founder and ceo of walker and company which was acquired by proctor and gamble, about what companies and leaders can do beyond cash donations to address inequality in america and here's a look at the biggest movers most lower slack down 16% rh is the only winner. restoration hardware closing bell will be right back.

welcome back time for a news update with sue. >> hello, everyone a study that fueled concerns about hydroxychloroquine has been retracted by the journal that push lisched it he says he's not sure the data is accurate. some trials of the drug as a covid-19 were canceled after the study claimed patients used it and had a higher mortality rate and increased heart problems just a short time ago, a georgia judge ruled there's probably cause for the case against three white men in the case of ahmaud ar bury bernie madoff will not be released early a federal judge denied the question due to terminal kidney disease and the nba will resume

its season on july 22nd with 22 teams in orlando, florida. the nhl playoffs alreawill be bo seven series under the league's return to play format. you're up to date. back to you. >> sue, thank you. up next, fortune put him on their list of 50 of the world's greatest leaders he's been "usa today's" person of the yearment we'll speak to tristin walker, the ceo of walker and company, which was bought by p and g and is making big trids to help people of color in the workplace and tonight at 7:00 p.m., chinese students are cutting off a vital revenue stream what will it mean for colleges this fall and beyond plus, wall street's disconnect and the nba set to return. what will the rest of the season actually look like it's all tonight at 7:00 p.m. with scott wapnerment we'll be right back on closing bell woman: my reputation was trashed online.

i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. americans across the country continue to protest the death of

george floyd, demanding change from government and from corporations corporations answering that call in different ways, proctor and gamble bable announced this week it's launching a fund with $5 million to help efforts that fight for justice and making more equitable they acquired walker and company in 2018. a health and beauty company focused specifically on people of color founded by tristin walker the ceo. he's also on the board of foot locker and has been named to 50 greatest leaders and joins us now. the it's great to see you m thank you for joining us as you see, do you see all these companies step up with statements, linked in posts, in many examples, what are your thoughts does that really move the needle on this issue? >> i think it does one thing i'm looking for in addition to donating is frequents.

are they acknowledging the trauma we're hurting and angry x but it's important to recognize here's a community that's experienced 400 plus years of physical and emotional trauma and that story needs to continue to be told so it can be fixed. secondly, are they really mod ling the way is their statement in line with thevaluesthat they purport to their employees and consumers? and then third and this is what i tell my team, are they active. it's not enough to just do the donation what's your follow up look like? this pandemic has persisted and likely will persist and it's important we step out and lead with our own action. >> what are you observations when we think about the investment community both equity, venture capital and bigger public investment vehicles what from your own experience in your own company in growing it were the biggest challenges you faced that you'd like to see

rectified for companies going forward? >> yeah, i think that they should be a recognition of the power that folks of color have in the world the cultural influence the purchasing and buying power and these investors, these boards, are doing -- to recognize that impact. and because you know, if we can kind of economically help liberate this community, that helps this path forward in a really significant way i was one of the fortunate ones, but my story can still and it should should and we're all dduo bound to make that stick >> you come from silicon valley from the likes of andreas horowitz how big is that opportunity gap and how hard is that for a black business owner to raise money right now? from venture capital out west? >> yeah, it's been tough and it continues to be. you know i think providing access now to economic

empowerment for this audience is the greatest economic opportunity of my lifetime and when i think about black consumers, we're the most cull can churly influenced demographic on the planet. our purchasing power, up to a trillion doll alreadies in purchasing power you have an audience of folks who are not only hungry and to you know start really wonderful and great companies, but are consumer set that is willing to support companies that really respond well with their values to this audience and that's why i think when you think b about walker and company, we've been able to be so successful because the authenticity bleeds through everything we do it's just in business. right? this is not donation it's not charitable. it's good business >> as you mentioned, tristin, your company, walker and company, targeted in particular to people of color are there sort of sectors out there where there's an opportunity to do that, both to provide better services, but as you're saying, to seize upon the

purchasing power that exists >> look, let's think about it in this way you know folks of color are the majority of the world. folks of color will be the majority of this country in 20 years. when i say it's the kind of single greatest economic opportunity of my lifetime, for profit or not for profit, the numbers speak for themselves diversity yields kind of better professes when your ranks and with all the other things that i said as it relates to purchasing power, every single industry is going to be impacted by this when i think about the partners that we have in the proctor and gamble bab gamble, a company that serves 5 billion people around the world every single day, a majority of which look like me, i think these guys are stepping up trying to do the right things because they see a future that deserves to exist. if every industry is not looking at this, they are not going to succeed and i mean that with as much conviction in my being as i can muster >> what do you mean

specifically what sort of actions do you want to see being taken at these organizations? we've heard so many ideas this week i'm curious where you think that change actually begins >> i think this is simple. you know with diversity, with employee base, there's a diversity of your consumer base. at walker and company, we're majority women of color and positions of leadership at my company reflecting diversity base of consumers we serve that's something all of us do. you do that at the corporate level, the board level representation and advertising critical you know we want to make sure that our voices are respected. and lastly, i think you know you've got to fund us. right? proctor and gamble was able to find a company like ours because we got chance. again, my story can scale and it should and you'll have the forward looking companie proctor and gamble that really

understand that but those are really simple things that companying can do and they all know it. but the ones willing the act are the ones that are going to benefit from this over the long-term. >> we'll see if anything comes from this moment on that front thank you. >> thank you >> good luck to you. >> still tristan walker. >> still ahead, your earnings rundown, gap, slack and broadcom all reporting moments ago. we'll break down those stock moves next and later, investing in your future the one big shift that can change the way you prepare for retirement closing bell back in a few minutes.

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>> let's check on this afternoon's earnings movers. gap, slack and broadcom all trading lower. slack in particular sliding some 15, 16%, of course it's been a strong performer so far year to date up next, a big win for private equity u.s. allowing p-e investing in 401(k) retirement plans. we'll discuss how that mhtig impact your money and your decisions when "closing bell" comes right back this moment.

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welcome back americans saving for retirement will now be able to invest in private equity funds as the labor department improved the inclusion of the asset class and defined contribution plans such as 401(k)s the agency saying the investment options for consumers and let them access an asset class that can provide better earnings in stocks and bonds joining us to discuss, sharon epperson and mike santoli joining the conversation, as well sharon, talk us through exactly why this has come about and how much interest there likely is to be in this >> well, let's first talk about what is going to happen. this is not an opportunity for 401(k) investors to invest in private equity as a stand alone investment option. this is an opportunity for private equity investments to be included in target date and target risk and balance funds within a defined contribution plan or 401(k), and what consumers need to know and investors need to know is that

this is something that will be chosen for you by your plan sponsor. this is not something that you necessarily choose yourself. it will be in one of your funds and this is investing very differently than you would investing in mutual fund than invest in the public company you're not going to have enough transparency and riskier investments in terms of whether or not the winnings will be there, and the track record that you may expect is going to be there, and it's something that consumers need to look at very carefully and investors, particularly those who are already using target date funds just because it's a default option in the plan and you need to really pay attention now because there could be investments there that you could not understand and you have to be right for your financial goals. you have to be careful >> mike, sharon just outlined some of the risks that investors might face going into private equity in their 401(k)s. the potential reward, private equity has historically had

pretty nice returns. what do you make of it >> they've had nice returns as they report them over nine cycles and it was a bigger asset class than it was before and conspicuous that you didn't have access to it in deferred contribution plans and i would point out, vanguard has partnered up to get into this business as well for its clients is so many companies are private and it's staying private and there's corporate value that's outside the private market, and i do think initially this is the industry trying to find another distribution outletas opposed to the public kind of making a lot of noise because they want access to this asset class >> in fact, you know -- >> mike and sharon, thank you both -- >> sure. >> go ahead, final word, sharon. >> no, i was just going to say the people who are probably going to access this or would want to in terms of more sophisticated investors, and people with higher net worth o a lot of money in their 401(k),

this is not necessarily for them because again, it's in the target date fund or a balance fund which may not be the fund of choice for someone who is a more seasoned investor >> got it. good point sharon epperson, thank you very much >> sure. secretary of state mike pompeo just tweeting moments ago i applaud nasdaq's actions to require all listed firms comply with the same auditing and inspection rules especially as it regards to chinese companies. nasdaq's action should serve as a model for other exchanges in the united states and around the world, this in addition to a statement that just came in from the secretary of state which says in part that american investors should not be subjected to hidden and undue risks associated with chinese companies that do not abide by the same rules as u.s. firms so clearly, nothing new here, just commending nasdaq for taking strengther action here against chinese companies, it's

part of the broader narrative right now. u.s. versus china and clearly the stocks, the chinese stocks are on the state department's radar. >> one pressure point the administration has tried to hit and essentially is trying to change this loophole that some chinese companies seem to enjoy. >> we are out of time here the dow just finished and the nasdaq just lower. thanks for watching "closing bell." "fast money" starts right now. >> thanks, guys. i'm melissa lee and this is "fast money. guy adami, tim seymour, karen finerman and dan nathan. >> taking flight, airplane flights soar and when passengers are really ready to return to the skies and we are all over the after-hours moves and gap and slack and both companies just reporting results and we'll break down the latest highlights with the quarters, but we start tonight with this. ♪ ♪ >> yep viva las vegas after 7