high quality inventory we think it's poised for a recovery. >> steve weiss autos keep rolling here. >> farmer jim, finally, what do you got for me >> cisco systems like charlie brown, a beloved underachiever that makes you feel good. >> everybody have a good weekend. thanks for watching. kelly picks it up now. thank you, scott hi, everyone today's jobs report defying all expectations to show job growth and fewer unemployed americans the president calling for more stimulusen colluding a payroll tax cut. is that necessary? do today's numbers show that the market had it right? and what happens if interest rates rise we'll explore that and the dow powerhouse as boeing rallying 62% in a month. apple hitting an all-time high see if they're still buys and beginning with the monster rally. dom chu is here with the numbers. >> monster doesn't begin to

describe it. a big green monster. kelly, near the session highs. we were up over 1,000 at one point and 3.5% gains for the dow. the s&p 500 nearly 3% gains. and the nasdaq composite 9836 was the intraday high. that's just two points, not percentage points, two points from a record high for the nasdaq and keeping that record watch on the screen for right now. just to put things in perspective, what does a v-shaped recovery look like? you saw it over the past few months, lost about 45% to the downside for the s&p 500 to the covid-19 lows and now up about 35% from here so we are now approaching some more rarified areas. another place to watch, 10-year treasury note for the interest rate side. we have been locked in a tight trading range and now a breakout here can this keep going for both

yields and stocks? we are approaching levels of traders thinking there's slowing momentum. >> we have doubled basically off the lows there thank you very much. the huge market rally is fueled by the jobs report showing the industry added jobs. the president today saying the rebound will keep getting stronger. >> saved millions of lives and now we're opening and we are opening with a bang and we have been talking about the "v. this is a rocket ship. this is far better than a "v." >> joining me now are michelle meyer andlindsay pietsa. michelle, the rocket ship is emblematic of the spacex launch the other day. does it tell us about the economy? >> i think we need to think about where we are in this cycle when we analyze the economic data right now were bouncing off the bottom and job's report was a

blowout, much stronger than anticipated. you know the consensus is looking for a decline and we clearly saw an increase here and i think in general what the data is showing is that there's a bounce and in the early stage of the recovery it is going to look v-shaped going from an economy that was closed to locked down to hibernating to one back open and the bigger question is and i think where there's still not necessarily an answer is what happens after you exhaust that big initial bounce what happens after you have that easy growth? think about the longer recovery and that's where you have to consider the scars that are left on the economy as a result of the unprecedented shock. >> lindsay, what is your estimate now for gdp in the second quarter and in the back half of the year >> i don't think this changes actually much longer term thesis for the economy. we knew that some jobs would come back. the bigger question is, how many jobs are going to remain lost? we know that there's been a tremendous amount of businesses that have closed permanently and

those able to bridge the gap of the last three months anxious to reopen face a new environment of different rules and restrictions to greatly limit the activity and by extension the need for additional rehires so this is simply the first wave and really reflects primarily the baseline bare minimum if you will needed in terms of reopening economy at the reduced capacity and remains to be seen if this is in fact an ongoing positive theme so we're still waiting for the brunt of the weakness to be felt in the second quarter with gdp likely down 30%, maybe more we could continue to see somewhat of a mild rebound in the third quarter. in a positive realm of 8% to 10% but by the end of the year it is likely to fall back into negative territory amid still restrained business activity as well as the consumer which is leekly to remain hesitant to go back into the marketplace in any capacity relative to what we saw prior to the pandemic because of

both lingering health and financial concerns. >> we want to see if we're down 30% in the sec quarter that we're up 40% because you have to do more just to get to where you started not 8% to 10% and then a negative quarter does that stack up against what you guys are expecting and what could be done? we mentioned the -- well, we'll talk later on about different stimulus to see here but what would you see to say we can get a real kind of rocket ship gdp in q3 or 4 >> sure. yeah so we are not as down beat on that we don't look for a double dip and think once the recovery starts it will continue ab septembsent some sort of a second shock. but i do think it touches on something important here when you think about the trajectory of the data, the slope of the 'em proouchlt now is going to look very steep and feel quite v-shaped rocket ship perhaps but as you get past that easy

growth, as you rehire the workers that are kind of rehired and the consumers spend the pent-up demand and then what's left in the economy? that's where, kelly, to your point, do you see a snap back in growth well in excess of what we have in the down the urn i'm not sure of that i think you get a bounce and then the economy struggles after that to realize all of the loss that we had in the economy we have to look at things like business investment, clearly confidence measures and very importantly we have to think about what kind of stimulus to see for the economy ongoing. >> lindsey, the fact it's an election year might help forecast because people say absolutely the president will want policies that help the odds of his re-election usually those are stimulative anyway now we have people calling for that because of everything going on so even if you take what the democrats calling for is help for state and local governments

and maybe see that and government payrolls last month were horrendous. i think we lost 500,000 jobs and an area of key future support. >> i think your're right stimulus could help to artificially boost growth and as i mentioned likely to again in the third quarter. but i think the big concern is the longer term trajectory of the u.s. economy and i think we forget going into 2020 we were already losing extreme momentum with growth slowing from 3% down to 2% and that was against the backdrop of massive government spending already and record low rates so we were already at a reduced level. going forward ads we open the economy we are at a further depleted level so for 2021 i think a sub-2% growth rate is a

realistic reality. >> how does the report today change your peak unemployment forecast if it does? >> we learned now what the peck is and it is what we had of 14% last month can the unemployment rate increase a bit on the -- after this it is possible with a big surge in the labor force participation but we can pretty soundly say that the recovery has started in the labor market and just the pace by which jobs come back and the unemployment rate normalizes from here but it does seem like that roughly 20 million jobs lost was the cumulative and the unemployment rate peaked at 14%. >> that would be great if it never hit 25%. thank you both good to speak with you today. >> thank you. do the numbers show that the market had it right that the big rally from the lows is warranted? joining me is art hogan of national security and paul christopher, the head of

strategy at wells fargo investment institute art, it is funny because we can adjudicate the past or try to figure out the future. in either case, how much more emphasis would you put on the market's performance given this rebound off the lows and the confirmation of the jobs report? >> that's a great question and i think the point about the future is exactly what the market is trying to calibrate. we have gone through this process over the last call it a month where that leadership that had been driving us from the beginning of the recovery march 23rd to a month ago clearly things that worked when we were stay-at-home economy and now that we have seen that rotation it kind of makes sense that the market got it right to see that transition from the stay-at-home basket to the things that work, the things that are more economically sensitive and a trend to continue to see in this market the transports this week have been a great signal of that. ex yesterday's airline dallas

o -- airline blast off and i think that rotation makes a great deal of sense and seeing more of that rotation. the problem is that those groups that are sensitive aren't a large enough to drive the moves that we have seen and may see leveling off because it's harder for the financials to move the index as much as technology and health care. >> in talking about that, paul, what point do you have to consider the level of interest rates under half a percent to nearly 1%, could 1.5% be next? >> yeah. we are not too concerned about that we think that you could see interest rates 1 and 1.25% on the 10-year but rates fell just so dramatically and you've seen such an amount of bond issuance. more in april and may than the first quarter and we don't think interest rates start to

constrain business. >> some cases, paul, they seem to be helping and got to be a driver behind the financials rebound, don't you think >> yeah. financials certainly they've been the odd person out but in terms of interest rates too high for the entire economy, no, we don't think so. >> art, you think that this rotation can keep going, the groups are smaller obviously than the big cap tech and maybe loses momentum what do you make of the odds of stimulus coming? the fed's main street program just getting started you know, how does liquidity and government support play into the forecast for the market? >> i think there's three legs of support for the economy and seeing monetary policy support well into 2021 that's a necessity to mitigate the damage following in the wake

of the pandemic. fiscal policy is probably harder to come by and going to arrive and more to do with fiscal policy and see another package end of june or start of july and it is necessary. the initial positive data that we are getting is just data less bad. when we think about the may day that was less bad than april and will continue to see the case and certainly need to see more and more of that as we work our way through the second half of this year. what's really important, the third leg of this is how quickly the health care infrastructure really responded to this pandemic with a dozen companies working on vaccine in the clinic right now and 70 companies working on therapeutic and that response is amazing so all those three things combined will continue to be part of the process here. >> finally, paul, since we have given more credence to the market's rebound now that the data is confirming it, what if the market starts to stumble again? how that everybody's in the consensus v-camp, what happens if the market maybe not retest

the lows but just stumble for any of various reasons, could be coronavirus case count is up or would that be a source of concern? >> not necessarily we think as we look ahead to the next 18 months we expect the market to be higher by the end of 2021 but there are uncertainties that no one can know about the track of the covid infection rate in the next several months as autumn approaches so there's probably going to be some opportunity here to see the market pull back we've been telling investors to hold cash to the side. dollar cost average. get in here incrementally and use the cash that way. >> art, paul, thank you both appreciate it today. >> thank you >> on a really big day for the markets. apple's hitting an all-time high up 29% this quarter bioing is soaring up 35% since april. can you buy the dow powerhouses?

new category emerging in the jobs market, contact tracers where the jobs are. surprise jump in payroll impacted the housing market almost instantly. take a look at the dow 30 heat map these are all 30 stocks in the dow jones industrial average up 927 right now and all but one of them are higher. we're back in two. ♪

dad, i'm scared. ♪ it's only human to care for those we love. and also help light their way. it's why last year chevron invested over $10 billion to bring affordable, reliable, ever cleaner energy to america. ♪

lack back to "the exchange." a pair of dow power houses among the leaders in the rally boeing shares leading the dow again and now up 124% sense the march lows and 70% in a month and apple shares up more than 50% since the march lows for more on what's driving the big rallies, bring in dan ives for apple and analyst kyvan rumor. d dan start with apple and a stock at all-time highs. >> it is the services business has been what's the rock of gentlem gabraltar. this is the drive of an iphone

12, 5g of this year and massive pent-up demand 350 million of 950 million iphones worldwide are in upgrade opportunity and why i think a year from now looking after $2 trillion market cap. >> wow. >> it speaks and we have talked about it with you and the team the bark is worse than the bite in terms of the services business that was the worry was that going to see the type of softness in light of the pandemic it comes down to iphones, what you see in terms of in china that's the demand and the supply side they're caught in the cross fire and then the worries overdone and then a drum roll into what i believe is the most massive product cycle from apple in at least the last five, six years and why i think this is a stock that's a 4 in front of it, 425 is bull case now. >> 375 remains the price tar

get. 330 today. is this apple specific today or all the big cap tech names, mentioning $2 trillion valuation, often thrown around with amazon, too having cleared the coronavirus hurdle do they keep marching higher >> i do believe. i think fang names go up about 20%, 25% this year and part of it they have been safety blankets in this category, but i think part of this the stronger are getting stronger and starting to now see on the other side of this dark valley you are going to have the leverage and the growth that's going to i think push these stocks higher, why in my opinion we are in the fourth, fifth inning of the tech rally playing out. >> real quickly, people say higher interest rates are a threat to the fang names trading inversely. what happens if we have rates pumplg throu punch through the 1% >> i think it's in the near term a lack of secular growth

opportunities. that's why fang names, look at cloud signer security, they continue to move higher going into the second half and apple, that's the 5g play going in 2021. >> all right dan, thank you very much now boeing this obviously is rallying in conjunction with airlines axel rating the reopening plans american especially yesterday. how much more do we have to hear about reopening and passenger travel in order for boeing to keep climbing? >> i think we may have to hear a fair amount. i think it's up because, a, they did a huge debt offering so that liquidity isn't an issue and the airlines are coming back some investors are anticipating a vaccine for covid which would take covid off the table but i

think the problem is that, you know, the airlines are basically suffering. this is a long-term capital goods business the cycles usually four to five years on the downside and we are certainly in a downward project ri now one of the big issues now is how many maxes can they deliver next year there's some chance of certification delay because of covid. also the airlines are sort of pushing to defer a number of their deliveries the dispute with china over flight restrictions is an issue because china is 20% of their backlog. >> wow. >> we have had airline bankruptcies so they may not see enough of an uptick in max deliveries next year to allow them both to reduce their inventory and to sustain the supply production where it currently is. >> you have boeing rated market perform with a $150 price

target, $60 below where we are right now and if you're right in the longer run doesn't bode well for the broader market, kind of suggested that the v-shape rebound happened and now a leveling off if not a mean reversion. >> that's definitely possible i think. >> can you talk a little bit more about why when you think investors get the news flow on boeing that would disappoint their expectations, what seems to be priced into the stock right now? >> on the second quarter in the first quarter they talked about expecting to deliver the majority of the 450 maxes they have in 12 months after certification. we have gone through a couple of months here with deferrals, whether they still say that in the next quarter we'll see second issue is they'll have negative cash flow working capital is a big issue it's spiking it's spiked for rtx and will

spike at boeing for the same reason which is that they are having to accept the deliveries from the suppliers, pay the suppliers early to keep them afloat and on the other hand their customers are not wanting to take deliveries and are asking for extended payment terms. the other thing as you look out further, next year they'll have to basically pay down the deferred payroll tax holiday they're getting this year. there's a proposed r&d tax credit cut that's a big number, $2 billion for lockheed martin and they'll face the same issue out in 2022. i think they'll have to fund their pension plans. so we don't see them being able to resume a dividend until 2024. >> wow wow. it's a good reality check and thanks so much for your time today. >> thank you even as we're talking about

the powerhouse stocks of the dow the nasdaq just hit a new all-time intraday high again, the nasdaq trading above the prior high of 10838. we are currently at 9840 so today's 224-point rally pushed the nads dak into fresh all-time intraday high territory. could the return to pre-covid levels of employment come sooner than we think? we'll ask ed lazear. look at the financials up 12% as a group this week. 'rba itwwee ckn o. ah, they helph achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well...

i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement. yeah, everything is runningis smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. that go out today get delivered. there are people who can only get food from amazon. when you come into work, that's what drives you. my little one, i would say he's definitely proud of me. every time he sees the blue

prime trucks, he says, "daddy, there's your people!" i know every single one of us is here busting as hard as we can go every day to make sure these packages get delivered. welcome back to "the exchange." a huge day in the markets. let's run through everything the dow rallying more than 1,000 today for the first time since april.

nasdaq just hit a new all-time intraday high and dow up 967 it's a 3.67% gain. 3% gaen for the s&p over 3200 and the nasdaq up 220. look behind me across the sectors. everybody's green but especially so with energy industrials up 4.5%. financials up 4% as interest rates lifted the 10-year treasury yield on the flip side consumer staples which had been strong throughout the covid period up 1.5% and communication services trade up 2% today. let's take a look at the xly because it's also about to hit all-time highs 1% away from that level right now with a 3% gain today and it's led by the cruise line stocks today as the reopening trade continues. here's a look at the individual names. norwegian up 22% carnival up 22%.

it is over $22 a share and royal caribbean up 25% to over $71 a share. now a market flash on grubhub. deirdre? >> hey, kelly. take a look at shares of grubhub surging nearly 10% on a report from cnbc's alex sherman that the company received interest from two other potential acquirers, european food delivery companies delivery hero and e just take away.com and said that the talks with grubhub they continue with uber and could strike a deal the largest combined player here in the u.s. but they're european players so that could take away some of those anti-trust concerns that have been arising over speculation of a grubhub/uber

deal and shares up nearly 10% in the session. >> thanks. that would be an interesting one. grub another big mover among the many today. let's get to sue herera for a news update. >> hello, everyone hee's what's happening at this hour moments ago the city of minneapolis agreed to ban all chokeholds by police and require any officer who see the use of unauthorized force to intervene and report it. in buffalo, new york, a criminal probe has been launched into two officers seen shoving an elderly man to the ground during protests. he's been hospital idesed with a head injury. during president trump's news conference he suggested with apparent aprufl that reporters had chosen to relax their social distancing by sitting closer together. a white house press offense said nbc news it was his decision because it looks better and points out they have been tested iran violating all of the

restrictions in its 2018 international nuclear deal that's according to a united states report seen by the ap since the u.s. dropped out of that pact, iran has stepped up the nuclear efforts trying to pressure other countries into counter acting the affects of u.s. economic sanctions. you are up to date, kelly. back to you. >> thank you as the country starts to reopen for business there's one especially important role in that process the contact tracers. kate rogers with a closer look at where those jobs are. hi, kate. >> hi, kelly experts say that contract tracing will play an increasingly important role and tracing those that may have been exposed to coronavirus and those coming in contact with a focused approach to slow the disease's spread patterson, new jersey, population of 150,000 outside of new york city seeing the success of a program firsthand the city's one of the most densely populated in the country so they doubled the staff on their tracing team to fight the outbreak

>> this dense of population, obviously a single case can infect multiple other cases. multiple other people. and spread the disease >> as many as 150,000 tracers could be needed across the country as we move forward for the time being without a vaccine. johns hopkins has an online training course for those interested in becoming tracers, some 70,000 people passed so far and another important point you can do this job from home, that's a key for those looking to volunteer or get paid for their tracing work back over to you. >> up to $70,000 a year? >> some are volunteering positions, some of them do pay and ranges from $40,000 a year to $70,000 a year and this is a position we should note that won't be around for years to come but right now it's definitely in demand and contacts two months to a year and in demand for the time being

reopening and move forward without a vaccine. >> absolutely. interesting stuff. thank you so much. >> thank you. coming up, the president says he'll be asking for a payroll tax cut and would like more stimulus. is it time to take a step back we'll ask a senator. heading to break, look at the semiconductor stocks the etf hitting an all-time high stay with us

we are going to be asking for a payroll tax cut.

we'll be asking for additional stimulus money because it will be far bigger and better than we have seen in this country. >> that was the president earlier today to ask congress for more stimulus money and what kind is warranted next especially after today's blowout jobs number. for more i'm joined by senator mark warner of virginia, one of the democrats -- excuse me -- who recently unveiled the payroll security act senator, it is great to have you. welcome. >> thank you, kelly. >> let me start withwhat your reaction to the jobs report this morning is and what it tells us about whether efforts like yours are warranted. >> kelly, i was pleasantly surprised as i think the market was and most policymakers were we didn't expect this. i'm not going to take one jobs report and say the crisis is over by any means and i remind all of our viewers that we're

still at 3 points unemployment than the peak of the great recession and unfortunately unemployment numbers for the minority communities even edged higher in may. so i would argue there ought to be four things that we should be focused on i don't think there's any political support for a payroll tax cut. you got to have payrolls to have that tax cut democrat or republican let's go through the four things quickly i would suggest. one, the paycheck security act direct government assistance to those people who have lost their jobs, reconnects you with the employer there's a more conservative version. this is modeled after the european version we have economists saying this is a better mechanism and reconnecting furloughed workers with the employers to reconnect them to healthcare and then

using the employee e tension act you can dial it. >> before you move on i want to understand how that works because i was going to ask you about this when i see $90,000 if you laid somebody off, theat's an incentive to lay people off. why isn't that true? >> we are talking about people that have already been laid off so we're not gaming the system and while we would suggest 100% up to 90,000, senator holly has i think something like 60% up to 50,000 i'm not sure that's the exact number there would be some negotiation and could see from the german experience, the dutch and danish experience where the right point is and the fact that with this employee retention tax credit that's already in law we have the ability to have that kind of dial we have to presume that we have

already hit the trough of the layoffs so this is reconnecting those laid off workers to their former employers directly. again, lots of bipartisan support for this idea. i would point out both "the new york times" and "wall street journal" both editorialized for this approach. whether we can move the ship of state to that is still a fair debate but i would put that as a great next step. i would couple that with three other items. one, real focus in terms of dealing with particularly communities of color that have been disproportionately hit by the covid virus and will see minority businesses particularly third and fourth quarter really run against the wall and our efforts to date on getting funds into black-owned banks, cdfis well intentioned but i don't think hit the mark so i work on

a proposal for the number of other folks and i think trying to work with secretary mnuchin on this on how can we target dollars into communities that are not seeing any relief at all. third, this is where we need a major shift and nobody i talked to that doesn't acknowledge that some percent of jobs, remember, we still got 13% minimum unemployed, some percent of jobs are not coming back and this may be a time to have a fresh look at our whole approach to training and reskilling. i have had a proposal for sometime that would say, you know, let's go ahead and treat tax accounting and reporting-wise, investment in human capital the same as investment in research and development, could be as transformative as any single policy change and we've got to recognize that the jobs will not come back have to be replaced

and we have to reskill people. finally, knowing we have a short period of time, we have seen a million job losses in state and local government and if there's anything we should learn from the 2008 recovery state and local government laggards for years afterwards and it's just been crazy that we've given small business relief for revenue loss, airlines relief but we have said to state and local governments we won't allow you to use the dollars for revenue loss makes no sense on any economic or fairness basis. >> one more in here, all of what you have described, the jobs not coming back, finding better places to work, state and local government, that's going to add up how much do you think congress feels comfortable spending are rising interest rates making that less attractive >> the reason we have seen the numbers this great jobs report is because congress and again

with support of people like secretary mnuchin, we fired on all cylinders. $2.7 trillion of direct assistance $3 trillion to $4 trillion from the fed and any lessons to learn that governments tend to undershoot in the crisis i think congress while not perfect by any means and a half dozen problems in the c.a.r.e.s bill but directionally we were right and i'm not sure it's rocket shaped as the president has suggested. i'm very concerned, most economists have said you're going do see some recovery and then stagnate. whether stagnates at 8, 10 or 12 and i would much rather put additional fuel in the tank and i think those four areas outlined are areas of broad bipartisan consensus and do more targeting. >> understood. senator, it is great to see you. thank you for joining us from the kitchen today.

>> thank you, kelly. we're going to take a quick break. markets are surging on the back of a surprising jobs report. dow's up 919 can this pace continue former chair of the president's council of economic add viviser lazear jons us "the exchange" is back in a couple ♪ the covid-19 pandemic is creating food insecurity on a scale not seen in decades.

an estimated 54 million americans will struggle with hunger. ♪ with 200 food banks and 60,000 meal programs, feeding america is the largest hunger-relief organization in the country. join morgan stanley in supporting feeding america and your local community food bank. ♪

welcome back to "the exchange." as we have mentioned may's employment numbers a big surprise with the u.s. adding 2.5 million jobs versus expectations and that sent the unemployment rate down to 13.3% and still high just how quickly can we get back to full employment rick santelli has a special guest to discuss hi, rick. >> hi. thankyou, kelly. we like to welcome ed lazear ed, let's right into it.

a record month of job creation never had 2.5 million. last month was a record in the other direction where we lost close to 21 million. continuing claims yesterday dropped by 3.4 million and the work week was an all-time record 34.7 those are the highlights make sense of this report where many were just shocked when it hit the wires. >> you covered a number of great points the first one is that what these numbers show us is that we're retracing our footsteps. that's what happened during the 2007 through 2009 recession. this one's just happening a lot faster because it's a supply based recession rather than a demand based recession the sectors in which we lost jobs are also the sectors in which we gained jobs two thirds of the job creation this time was in leisure, hospitality and retail and were losing the jobs, that's good news, there's no structural

problems that we're seeing in the job market that's probably the best news in terms of going forward second, why did we all goof so much i think most of us thought that we were going do see a pretty big negative hit this time it was because we were looking at the new unemployment claims opposed to the continuing claims continuing claims this time seemed to have been much more accurate picture of what's going on f. you use those numbers these numbers are consistent with that. so there still could be reporting errors but fundamentally this is going in the right direction and the point you raised of hours is the average work week went up and went up in some sense too much what do i mean by too much 34.7 hours, typically at the peak of a business cycle we're at 34.4, 34.5 hours. so what that means is that there are fewer people right now who are working much higher, good

news baze news because it means they will be recalled and hopefully eventually soon. >> now, the other big issue, ed, is that you isn't me a note that foot traffic in ten of the states currently opened reached 80%. there's an underpinning of good news for real and maybe the bigger news is that some of the big states like the state you're in, the state that kelly's in, the states on the east coast, many of these haven't moved to the big phases yet how's that going to add to the notion of what we are looking at for jobs next month and the month after? >> great point what's going on is about ten states, they tend to be the smaller less populous states, have reopened considerably they're up to at least 80% in terms of foot traffic of where they were before we shut down in february but as you point out the big states, particularly in the northeast, new york, new jersey, massachusetts are still at 50% or below where they were

that sounds bad but if you want to look at it in the positive way it means there's room to grow when new york, new jersey, massachusetts, washington, when they start to open up and california, of course, what we're going to see is pretty rapid growth so we should be in the steep part of the growth trajectory within the next couple of months and again that's good news. >> excellent ed, it is always a pleasure. thank you for your insights we look forward to the next job report and the surprises that holds. back to you. >> that was enjoyable. thank you. going to take a quick break here we have a news alert on google we want to get to deirdre bosa yes, we do >> hey, kelly. some progress into anti-trust investigations into google cnbc digital reporting that the state attorneys general

investigating the company for anti-trust violations, they're leaning towards pushing to a break-up of the ad it can no long business as part of the pending suit according to people familiar with the situation. the states and the department of justice are looking to file a suit against the internet giant and could happen according to sources within the next few months google has faced anti-trust penalties in europe in the form of billions of dollars of fines but should the ags pursuit this route that would mark a structural shift and could have a bigger potential impact on the business still a number of steps to go before we get there so google shares, alphabet shares, up about 1.6% in the session. >> largely shrugging it off but one to watch thank you very much. now we'll take a quick break. still ahead, while ceos are pledged millions of dollars for racial inequality and improve diversity at the companies the

hi hiring data shows there's more work to do s forward, 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.

notable gains in hiring minority candidates. for more on diversity i'm joined by rodney sampkin. he's also a venture partner at draper gore and holm it's good to have you. welcome. >> good to be here >> what do you think with the protests will do to help galvanize racial equality across

the tech world or is the issue just so big and complex. certainly this would seem to add urgency. we had alexis say he's stepping down from the board of reddit so he seat can be replaced by a black candidate. are those the moves you would like to see more of? >> absolutely. this is a solvable opportunity in response to the death of george floyd and breonna taylor and ahmuad arbery. tech companies are making these statements of solidarity i've been doing interviews on phone calls with technology companies and my colleagues are now starting to ask big tech, venture funds and start up communities what are you going to do at scale to create not just racial equality but equity

in the eco system that's driving the future of work and the fourth industrial revolution and beyond as my colleague said, it's something. something is better than nothing but it's not enough and it's not equity if tech companies large and small want to create racial equity, now is the time to do it and we're ready to help them make that happen >> i thought it was interesting you said the work from home trend could help a lot on this front perhaps by broadening where people with hire from and the places they are looking. is that right? >> it's correct. most of us have been sheltering in place and we're seeing this disruptive move towards work from home, learn fromhome, start from home and invest from home there's incredible opportunity to invest billions of dollars in the reskilling of americans remotely

right now we have 30 students from brooklyn, new york to beaumont, texas going through our momentum at morehouse python boot camp. we'll have 30 people ready to go into the work force even remotely my time is after with you is to talk about how to scale this to tens of thousands a year you can learn these skills, they don't all require a college degree you can learn the skills and be to work in 12 to 16 weeks. >> what about the venture capital world and some of those positions. how do can you think more people can get into those worlds? is it an issue of college p pedigree, networking who would you say is doing a really good job of overcoming that in. >> absolutely. you've got groups that i'm a prt of like black bc

we have our 100 black angels and allies funds that are doing work in that respective area but we really must have partnership from the lp community. the limited partners must ask their general partners to hire black and to write checks to black venture funds, to black founders and what we call the family of start up ecosystem communities. if you want to solve it, it's solve it 75% of venture backed companies for whatever reasons don't make it that means they fail when we bet on these companies, we know that 75% of them may not make it. imagine if we could shift 25 to 30% of that capital into black founders, funds and family of ecosystem building companies the data shows when you have

ethic minority, black and latin founders or product makers or decision makers in a firm, the economic output is 35% more. add gender into the equation and it's 15% on that as an investor looking for a return on their investment to get a 50% potential return on your investment just makes good investment sense it's not charity it's not help. it's an investment thesis that will return and return multi-generational wealth to the black community but also to the investors that i vest nvest in e communities as well. >> i know you're big on crypto does that hurt or help the communities? >> i think the future is block chain.

the future is crypt. there's an incredible opportunity to learn how to code on the block chain but also how to invest small amount of money. we're giving out a million dollars in crypto for people to register to our upcoming in august we're going to give them some bitcoin. >> interesting so much good stuff thanks so much >> thank you rodney sampson joining me. the surgeon bond yields is not great news for home buyers who might be out shopping this weekend. let's get the latest on how the mortgage market is reacting. >> reporter: better economic news in the jobs report, not good for mortgage rates. look at the 30-year fixed rising at the start of this week and spiking today. all according mortgage news daily. mortgage rates loosely follow

the yield on the treasure which which jumped to its highest level since march. low rates have helped a big demand that is unlikely to change much with the rate jump because there's so much pent up demand mortgage lenders have been struggling to meet that demand and have gone on a hiring spree. there's your good news big names like quicken and home sale mortgage and bet every.com all adding and continuing to add thousands of jobs. i spoke with jpmorgan chase and wells fargo and they said they are also hiring. this could be a new break out hire for rates but given the volatility in the economy, it's still possible for rates to turn lower yet again. >> most people would say they are still low. they might be up but they're not choking you off just yet >> reporter: absolutely. no question. they are giving buyers purchasing power still at this hour >> thanks so much.

a big move higher in interest rates. we'll talk more about it on power lunch with melissa lee ais i'll see you over there. see you soon "power lunch" begins with this massive rally. stocks are surging the dow up more than 1,000 points points the nasdaq hitting a record high after a shocking jobs report the u.s. added 2.5 million jobs in may it's energy and financials leading this big rally check out the dow leaders now. they are the best performers we have full coverage on this big reopening rally. bob is all over the market we have steve on the record breaking jobs report rick on the bond market as rates surge. bob, we started o eit off with . >> nine to one advancing the declining stocks nasdaq at new high in has been a picture perfect close to the week for bulls and roping story which is what's moving the market take