that's fantastic katie, thank you so much we appreciate your time today. >> thank you take care. >> all right i'll take manhattan says katie kelly. >> i thought it was cash for a second. >> i couldn't tell if it was a painting or backdrop or wallpaper but cool wallpaper i've got more pen yes, sir than i can count. >> thanks for watching "power lunch," everybody. we'll see you tomorrow closi closing bell starts now. >> sara eisen behind me. stocks bouncing around, a three-day rally at risk. what is driving the action today. continued fears of coronavirus resurgence from beijing to florida dampening hopes for swift economic recovery. jay powell warning to pull too quickly. despite taking aim at big tech today, those stocks are leading

the market while classic reopening plays like cruise lines, airlines, they are moving low. net net we are flat as we stand on the s&p 500 sara. >> ahead on today's show, investing legend jeremy grantham, stunning rally we might be realizing emergence of a bubble. plus we'll speak exclusively with marilyn booker, former head of morgan stanley suing the firm for race and gender discrimination let's focus on the stories we're watching mike santoli with a look at broad market action. steve liesman highlights from fed chair jay powell and covering coronavirus resurgence in beijing mike,ic can us off with a look at the session flat on the average butthat doesn't tell the story. >> the average holding the gains in the last three days, wavering

around the flat line a lot but mostly due to the trillion dollar trio, amazon, apple, microsoft all outperforming. this is an old-fashioned early february day where the big megacap growth stocks holding index together as average stock slips a little bit this is the one-year chart we've had a little bit of an issue around this area on the way up people thought that would be the early march highs create frick it's hard to say if that's what's going on or kind of taking a pause past couple of days, we have seen mid-morning selloffs related to covid related headline but them the market pops up. hard to draw any grand conclusion i did want to take a look at the setup in the vix futures, volatility index futures this the curve this is basically the near-term prices of expected volatility or futures-based volatility pricing is higher than it is going out the next couple of months. it slopes down, election related

bump when it is this shape, it does tend to say the market is unsettled, traders positioning to near-term jump yness as opposed to things lasting down the road so to speak normally this woul slope upward it's something to keep in mind maybe it shows you that wall street is a little bit on guard for something else maybe the rhythms of the market have been thrown off a little by that selloff but worth watching right here as we try to figure out what the interplay is between stock market, bond prices and expectations for the reopening, guys. >> and for earnings, mike. just wondering where we stand in terms of expectations. feels like analysts are marking down numbers how far is that gap between what's happening on multiples and happening on earnings expectatio expectations. >> marking numbers we'll hear about in the next several weeks. what's interesting if you look at the 12-month forward forecast, that bottomed out and

starting to nudge higher twelve months from here, it includes the second quarter through the first quarter of next year. that's supposed to capture a big forceful rebound in the end of this year, early next year i think that's sort of a silver lining right now i think the bar is set extremely low and there's really not any explicit valuation support for where stocks are right now. it's about what's to come in the recovery next year. >> mike, thank you very much for that fed chair jay powell meanwhile testifying for a second day in a row on capitol hill. steve liesman has the rights from today's hearing hey, steve. >> hey, wilfred. we need to keep our foot on the gas as he urged congress to do the same and continue support for workers for small businesses and for state and local governments. >> it would be wise to continue

to support people out of work and signaller businesses that may not have vast resources for continued period of time not forever but a period of t e time the economy is beginning to recover and i think that support would be well placed at this time. >> clearly over two days fed chair jay powell not moved by better than expected data. really gave no hint of easing of fed policy in response three things, additional support -- the bottom of the range -- >> steve, we're losing your audio there. the third thing, balance sheet, not a big concern according to fed chair for stoking inflation. steve liesman turning to the fresh concerns happening over the coronavirus in china

china is racing to contain a new outbreak our eunice yun is live with the latest thank you so much for being with us tell us what has been going on in terms of rolling back the reopening there. >> well, nearly 400,000 people have been tested so far for the virus just in the past four days this is part of beijing's effort to try to clamp down on the virus. 137 people have been infected. what was worrying a lot of people here was the fact beijing authorities warngd, seems as though a small number, this cluster detected at a wholesale food market was found in the early stages, the officials said, and they expect the number of confirmed cases to continue to rise. this market is one of asia's largest. some cases linked to that particular cluster have been found in neighboring provinces

already. so beijing, which had relaxed some of its restrictions just over a week ago is now back on high alert neighborhoods have been locked down bus and ride sharing out of the city suspended, flights cut in half anyone hoping to leave beijing is now required to take a covid test first so authorities shut all the schools again and warned schools and students she should prepare for the possibility that classes won't resume until next february the biggest economic impact outside of the wholesale food market is on the salmon industry that's because even though the origin is still unknown, there have been plenty of rumors and reports in the state media linking this particular cluster to imported salmon so salmon has disappeared from the store shelves not only here in beijing but across the country ports have also been ramping up their testing of imported meat as well as

domestic meat. and overall that has really worried a lot of people here, guys, that there could be even a broader lockdown and that that would have a huge negative impact on the economy. >> eunice, clearly it's going to impact those people but now a semilockdown again what's it done to the sentiment across the rest of china, another major city unrelated to beijing? do you think it's scared people again and made people less likely to go out, go out and spend? >> people are worried across the country. in fact, several cities like shanghai have made announcements that they plan to quarantine any beijingers for 14 days so they are having concerns just because sentiment overall has been quite fragile people were feeling better things were reopening but now this has made people a little bit more nervous about going

out. >> eunice yoon, thank you for the update from beijing tonight. after the break legendary investor jeremy grantham gmo fund pared back exposure why he says crazy stuff is happening in the market. you're watching "closing bell" on cnbc. we'll be right back. 300 miles an hour, thats where i feel normal. having an annuity tells me my retirement is protected. protected lifetime income from an annuity can help your retirement plan ride out turbulent times. learn more at protectedincome.org. ♪ ♪ ♪

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let's hit some individual market movers shares of nikola jumping on back of initiation outperformed by cow cowen, the first endorsement from the street. unlike tesla focuses on partnership for vehicle production which should help bring to market. oracle falling after fourth quarter revenue declined disappointed analyst expectations earnings, however, did pop estimates 120 dollars per share. oracle down almost 5%.

wilfred. >> s&p 500 about flat from where we stand legendary investor and gmo co-founder jeremy grantham significantly cut the exposure at that fund from 55% in march to 25% pi the end of april i sat down earlier with grantham and began by asking him if he was surprised by the stock market's rapid rally from the lows in march. >> i have been completely amazed almost from the low, the speed, and now the extent and the lack of major interruptions along the way. it is a rally without precedent, the fastest in this time ever. the only one in the history books that takes place against the background of undeniable

economic problems. all of the other ones that took place at a time when the makt at lea -- the market at least believed things were wrong. they may have been on occasion but they believed at the time everything economic and financial was terrific this time everyone agrees that the economics have a made problem. >> so why do you think the market has rallied quite so aggressively then? >> i think perhaps being cooped up indoors making people feel frustrated looking for outlets that may have played some psychological role in the mass participation of individuals clearly the fed scattering money around has created a favorable environment, as it often does.

with this amount of money around and the economy depressed, it would be fairly traditional for some of the money to find its way into the market. that in itself is unexceptional. it's the ignoring of the downside problems that is perhaps exceptional. >> toufdo you feel, though, cenl bank does require people to totally readjust bhawhat would reasonable multiple for the next five years even if that multiple is still too high. does it warrant a higher multiple than the last five or ten years? >> i think the last five or ten years received pretty intense loving care from the fed i don't think it can do much better than that it used to be taken for granted

that the fed had used up a lot of its leeway and wouldn't in the future at a time like this have the same latitude it has five years ago or longer that attitude seems to be forgotten because the market rises rapidly, everybody is happy. they have been quite content to disregard that earlier argument that the fed was running out of elbow room. >> in your recent suggested thousands more bankruptcy like hertz you referred to. you're still confident in that and you think that's vastly underpriced? >> mispriced. >> mispriced yes, i think it is quite likely that this will have tentacles going out years in the future,

that whole industries won't recover. if you push any economist, they will tend to agree with that statement. if you wound a few major industries on a long-term basis, it's hard to imagine that the broad economy will easily get back into a fully healthy state. >> we mentioned the ferocious rally from march or april, and you said one of the factors might be that people were board at home with not much else to do i'm sure you've seen also the extraordinary data on account openings from e-trade to schwab, robin hood and engagement of retail investors do you applaud and welcome those types of people that have entered the market and made successful short-term trades as it were in the last couple of months >> i certainly applaud them if they cash out and put it in their piggy bank god please them.

they have done well. but typically when this happens, you know as well as i do how it ends it's usually the sign of a bubble when i last spoke to you, i regretted the fact that we were missing the signs of the late stage bubble i was all set for it, and for a second or two, two or three years ago, it looked like it might be getting there and then died off again this is really the real mccoy. this is crazy stuff. i'm talking about not the last three or four months but the last few weeks we've now reached a level where you buy bankrupt companies, issue stock in bankrupt companies that will probably be used to pay off the bond holders and you bid up favorite companies to ludicrous levels. this is really the real mccoy.

and in that kind of event like 1929 or 2000, you want to see as much crazy participation by screaming leaders of wil investors as you can possibly see. that should make any bear feel better so even in the three or four weeks since i was writing about how little confidence i had compared to the other bubbles shl, my confidence is rising that this is becoming real mccoy bubble of my investment group. the real bubbles can go on a long time and inflict a lot of pain at least we know now that we're in one the chutzpah involved in having a bubble at a time of massive economic and financial uncertainty is substantial. >> so jeremy, should people's equity exposure, particularly to

developed markets as we've discussed, should it be zero right now? >> i think a good number in the u.s. would be zero less than zero might not be a bad idea if you can stand that in the rest of the world, the prices are not ludicrous they are not cheap in the rest of the developed world but not ludicro ludicrous. in the emerging market they aren't cheap by any standard as well as being relatively cheaper than they have ever been compared to the u.s. they are absolutely priced fine so i would earn some emerging for sure and if you -- it wouldn't be unreasonable to earn some developed country equities

outside the u.s. the u.s. is simply now playing with fire you might make a lot of money in a really short time, but recognize you're skating on thin ice. it's a job for hedge fund real professionals and a lot of them will get there it certainly isn't a task for an individual. >> my question, jeremy, if i may is what would be your advice to those individuals, perhaps young people that have entered the stock market fray for the first time in the last couple of months if they want to graduate from being short-term trader as they might have been the last couple of years to long-term investment career. what's your advice to them >> sell u.s. 100%, buy emerging, and throw the key away for a few years and you'll have a story for your grandchildren about how you outperformed the investment professionals and everybody else

>> jeremy grantham there we have another chunk to come in the next hour of the show, in particular focusing on where he does see opportunities and where what he has got invested is being put to work which is well worth listening to clearly overall there, sara, a bearish outlook for developed market publicly listed equities. the only thing i would say, this is what we're discussing warren buffett versus robin hood trades, have the warren buffetts of the world lost. he has called them admittedly called them early and stomached a lot of short-term pain in the process. we're in the middle of that. he's sticking to his guns but increasing his confidence he feels we're close to the top of a bubble for a moment, even if he started positioning for it too early.

>> he had some great one-liners, wilfred. i wasn't sure which one was better, the real mccoy bubble, the greatest in his career or the market has a lot of chutzpah doing this at a time of great uncertainty when it comes to the global economy i was wondering throughout this whether he's missed out on 40% or so rally off the bottom and how long he's been positioned in this bearish way right now. >> based on the last shareholder letter that went out from gmo, it suggested during the process of march and april they went from 55% equities, roughly down to 25% equities. exactly which stock that was and what prices that was at, we don't know yeah, clearly they have missed out on at least some, probably a lot of the -- that's why i asked the question interesting the way he frame it. it wasn't a case of saying, oh,

these people are wrong who have bet on this latest rally, i'll be proved right. he accepted he has been wrong but justified why he's sticking to his guns suggesting it's a bubble that said clearly some things he does say are worth owning in the next hour we'll go through a chunk of that where he does see opportunity. >> he did reference bankruptcy companies. some breaking news from bob pisani from hertz. bob. >> it looks as if they are spending common sales, they said they were going to initiate $500 million sale that created quite an uproar considering they are in bankruptcy proceedings the head of the s.e.c. this morning in an interview that we conducted said he had issues

with a disclosure statement around them. not sure if s.e.c. can stop them from doing something but certainly require adequate disclosure it looks like hertz decided not to go ahead with that program apparently in response to what s.e.c. has to say. pardon me for turning my head on you. i'm looking at a statement after discussions with the staff sales under atm program were suspended. this is after s.e.c. notified them, pending further understanding of the nature and timing of the staff's review they are referring to s.e.c. staff. apparently our inquiries about this this morning prompted the stock could be halted for news pending and the company decided not to go ahead, at least for the moment, with those additional stock sales sara. >> was the s.e.c. not looking into this before we had asked about it this morning, bob >> you know, it's a little unclear. we asked chairman clayton

whether or not anything could be done about this, because it created such an uproar about what's theng investors from buyg into an obviously bankrupt company considering the common shares were most likely worthless. mr. clayton simply said they had issues with the disclosure around this. that didn't say they could prevent it it said we're concerned with exactly the nature of what they were disclosing to investors remember, sara, hertz made it very clear in the disclosure statement the common stock could well be worthless and yet they still went ahead with that perhaps that wasn't enough whatever happened, it seems very clear hertz got a little cold feet upon hearing about this and discussions with the staff and for whatever decided to go ahead and suspend additional stock. >> yes no more worthless stock being

sold here for hertz on secondary. thank you, bob pisani. we appreciate it by the way, just note the dow has taken a leg lower here we're down 145 pntois. we'll discuss it as well as new numbers on auto sales right after the break. stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. try nature's bounty sleep3, a unique tri-layer supplement

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welcome back want to mention hertz resumed trading again, up 12% or so, as it resumes trading on that news it won't now be issuing equity we'll keep an eye on that. clearly down massively, massively year-to-date, some 18th or 19th%. some news on auto sales. phil lebeau has details for us. >> retail auto sales, vehicles you and i go to a dealer we buy, not talking about when automakers sell them to the dealer this is a good idea how far they have come. j.d. powers tracks this.

on sunday retail new vehicle sales were down just 4% compared to the expectation they had precoronavirus what does this mean? it means the consumer has come back a long what's at the worst levels in late march, early april, the weekly sales were down 56% and they have steadily improved that's why when you look at a three-month chart of auto nation or group one or sonic automotive, doesn't matter name the dealership stock, moved substantially higher and this is a good indication why. you're talking about retail auto sales continuing to improve, down just 4% last week guys, back to you. >> yeah. a little bit of buy the rumor, sell the facts on those. >> those are the automakers. remember, those are the automakers. >> right okay you're talking about dealers >> yes. >> got it. phil lebeau, thank you

time for rahel solomon. >> here is the cnbc news update. atlanta waiting for the decision on whether charges will be brought against the two officers in the case of rayshard brooks the district attorney is set to make the announcement shortly. president trump asked chinese leader xi jinping to help win the election by increasing agriculture products, among allegations from former security adviser john bolton's book the justice department has gone to court to try to block its publication. arizona and texas recording record hospitalizations for covid-19 arizona, 80% of hospital beds in use. go to cnbc.com for new hot spots. governor cuomo giving state workers a paid day off friday for juneteenth cuomo wants to make the celebration of the end of slavery in the u.s. a permanent state holiday. sara, i'll send it back to you. >> send it over to you,

actually. >> thank you very much morgan stanley's former head of diversity suing saying no influence whatsoever in the power and control of white men she'll join us exclusively to discuss ahead. as we head to break, bonds, yields, and dipping a bit in today's volatile market. ten-ye ten-year yield around 0.3. where will you go first? wherever you make go, lexus will welcome you back with exceptional offers. get zero percent financing and make no payments for up to 90 days

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25 minutes left of trading research polls show joe biden leading president trump in a number of key battleground states we'll discuss what that biden victory could mean for your money next [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught. [cash register beeps]

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[knocking] room for seven. and much, much more. the first-ever glb. get 0% apr financing up to 36 months on most models, and 90-day first-payment deferral on any model. the race between president trump and joe biden is heating up biden beating trump in all six battleground states. biggest lead is in florida where he's ahead by seven points his biggest swing, pennsylvania,

last month trump held a 4 point lead what a biden win could mean. let's bring in tony, ceo of blackrock and leading portfolio manager of black rock's fund thank you for joining us are you at black rock positioning for a biden victory in november? >> it's good to be on. it's definitely something to think about. i always say markets can only focus on one thing at a time so far they have been rigidly focusing on covid-19 the election is coming without a doubt. your polling figures point out there could be a change in administration >> thinking about it or putting it at the top of the list of factors you're considering the economy has been heavily hit by coronavirus is that not a way bigger factor

in your decision making as to where you should have exposure >> they are both big factors what we're trying to look for with respect to election is free options. both protecting on the downside and capturing on the upside. on the downside, we're highly focused on corporate taxes biden has been very clear he plans to roll back half of the trump tax cut. that's a real possibility. with covid-19 there's been a lot of fiscal spending with the money we don't have. the need for rising taxes for individuals as well as corporations is high, and he's committed to it. so what we're doing is looking to skew our portfolio so we can avoid companies that may be negatively impacted by that tax cut rollback on the flip side some g oriented opportunities. the biden administration is going to be more favorable to good esg companies. >> okay.

so it would be great if you could give some examples of esg winners and maybe corporate tax losers. >> let me talk about it on an industry level rather than specific stocks. in terms of corporate taxes you have to look at where earnings are highly concentrated in the u.s. retail, for example, highly concentrated in the u.s. regional banks highly concentrated in the u.s. to a lesser extent the global investment, a more diverse stream of earnings throughout the globe. they will be positioned. utilities on an after taxi roe, as they go up they will get compensated at higher rates. those are examples of industries to watch out for on the tax problem. >> tony, of the biggest performing sectors or stocks so far in the u.s., which would you avoid most of all? >> yeah.

so i think we've really positioned on the equity difference tend fund i've positioned in a barbell fashion meaning one of two exposures one, some great companies out there winning pre-covid and covid-19 just accelerated that path we see a lot of companies in the tech sector and health care sector like that i think you can still find reasonable evaluations there on the flip side, you also want exposure to the epicenter of covid-19, cyclical value sectors like financials, like energy, like autos where as we come out of covid-19, as we get a medical breakthrough either in a vaccine or treatment, these are the sectors that have the most room to run up. i really think you want to pursue that barbell approach because we don't know how long this will go on for. the path to recovery will be in part -- driven in large part by the pace and path of the virus.

>> tony, thanks so much for joining us. >> thank you. coming up next, bullish signs for home builders and will this be the summer of beyond meat those stories and more inside the market zone next on "closing bell." (vo) since our beginning, our business has been people. and their financial well-being. it's evident in good times, with decisions focused on the long-term. and crucial when circumstances become difficult. that continued emphasis on people - our advisors, associates, clients and communities gives us purpose, strength and a way forward. today. and always.

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don't get mad get e*trade and start trading commission free today. we've got 15 minutes left in the trading bell, "closing bell" market zone. cnbc commentator santoli here to break down crucial moments of the day. we've got ceo josh brown with us as well. good afternoon, josh let's kick things off. stocks fading into the close with dow and s&p 500 on track to snap what has been a three-day winning streak mike, a little bit of a concerning intraday turnaround, the dow is down 174 points now but weak to date, including friday's games as well clearly offsetting that. >> modest moves on the whole

actually since last friday, but it definitely seems as if the market is a little dragy, erratic and reactive to headlines more than it was before most of the day today very big, kind of unbeatable growth stocks were holding up the indexes and a lot of other stuff was taking a breather it seems as if that one day, almost 6% drop last thursday was not necessarily a one and done and we pick ourselves up and move on from there it seems a little more choppy but, again, holding onto most of the three-day rally. not as if things are dire. it doesn't seem there's a lot of energy behind it just yet. >> the bolton heads, john bolton headlines coming out of the new book having an impact here certainly some big news headlines, not sure if it's taken steam out of the market. >> the timing coincided with the market taking a leg lower. unclear exactly how durable that effect will be we're still some distance from where we're trading the election

so to speak on a day-to-day basis. again, at a day when the overall take was not feeling robust, definitely seemed to sag when we got those headlines. >> the flip side is the market very quickly bought that pullback we experienced a week or so ago, thursday's pullback last week. is that encouraging? >> i think the action is encouraging in that we went from counter-trend to regular trends, large cap and work from home stocks doing well and a mixed bag for everything else. that's like the real trend the counter trend was furious and fast and moved up a lot. we had almost every stock rallying last week there was a moment, i think it was probably tuesday, where 45% of the names in the s&p 500 had an rsi, a 14-day rsi of 70 or better thais the textbook definition of an overbought market

that crashed in like one day we went back to zero it's a remarkable speed to have that kind of overbought condition get worked off what happens in the aftermath? peloton goes back up zoom goes back up. apple fresh all-time high. you have some other things working, biotech, home builders but back to that regular trend we're in every rediscover shopify again, why did i ever sell it you almost feel like it's a version of groundhog today on the bolt stock, i'll hit this quickly. if you sold because you think this is the thing like, oh, they got him now, i really think that's not a historically accurate remgs of what ends up happening with the politics. we'll get a couple days of bad headlines and then he'll say something that takes everyone away from that story if that's the reason for getting

bearish, i'm not sure that makes sense. >> let's look at housing stocks. home builder index getting a boost after strong data on starts and mortgage applications came out diana olick with the details diana. >> yes it was both construction and mortgage applications fueling the gains. total starts just over 4%. the single family permits, which are an indicator of future, so important to the market, they rose 12% that's what the market is looking for as the builders are seeing huge demand, demand in the mortgage data applications to buy a home surged to an 11-year high last week this the most current indicator of housing demand and the clearest v shaped recovery in housing we've seen so far. sara. >> diana olick diana, thank you this has been such a strong run for this group, josh is it too late to buy in >> most of the names -- take the itb, let's take the ten biggest names in the group, most of them

are not back above the february highs. interest rates have plummeted, so mortgage rates people are locking in are much lower. so if you look at evaluation, let's take lennar, for example, 11 times next year's earnings, not much of a dividend you're going to get cyclical growth that may outpace the growth you're getting in terms of gdp home builder should do well regardless of how much the economy recovers there are some secular things happening there. the most common age temperature in the united states is 29 years old. we're getting into another phase of, another peak of household formation. >> we are losing josh's connection there we'll try and fix that just to round it off on the housing names, should the low rates and what it does to mortgages be outweighing the unemployment rate? >> i wouldn't say outweighing, but basically the pool of

potential buyers, as it's relevant to the home builders has not shrunk that much such a supply demand aggregate number of homes we're talking about selling is not enormous. didn't have to sell a house to every third person in the country. i do think the mortgage rates matter i think it's also a favored group though i don't know how much is necessarily left in the stocks of the pure home builders or home improvement retailers seem to have tail winds. >> next for a check on what transport stocks are telling investors about the prospects for an economic recovery hey, frank. >> hey, there, increased 9% last week after spiking 94% last month. with trucks delivering what we buy in stores, not quite encouraging but some recovery year over year declines, lessening in the last month. still you have to see it's down

double digits. container shipping, consumer goods, similar story shipments from asia to west coast where most shipments go to still declining but again showing some signs of a turnaround heading into the third quarter. back to you. >> josh brown back with us transports, josh, clearly improving from a big pullback. improving enough >> i just think we're going to have to get a little bit creative in terms of what data we choose to pay attention to and what data we put an asterisk on for example, if you were to look at gasoline demand and then driving, you would see us two-thirds of the way back to where we were in january and february obviously the summer driving season will play a role. but if you choose to pay more attention to that, because that's a more accurate representation of how most people are going to go about having their summer, i think that makes more sense versus looking at something like, for example, airline bookings. i understand there's a rebound

there, too, but it could be 2023 or 2024 before we're back to year over year comp has looks decent of that's the way i would go about thinking about things like cargo shipments and other things that we associate with transportation so i would not just look at one data point and think that recaptures the entire reopening story. some data points we'll capture in later months. >> in this world when we're looking at alternative data sources because monthly numbers are too old you see different pictures depending what industry you're tracking. i was looking at open table charts of restaurant reservations for arizona and texas, which are starting to show a little bit of a trend down but obviously we're watching reaction in states like that where case numbers and hospital saig izations are going up. what in florida are you

watching >> all of those things the issue is, as you know, you're going from literally zero in some states for things like restaurant reservations to down year over year if you were to extrapolate that, hey, great, back to normal at this pace at the end of the year nobody knows the endpoint, if we're going back to down 30% that's why there will be stutter steps along the way of all these recovery curves. what i also find as a side note fascinating is that open table still matters at a time when why do you have to worry about being able to get a table. it's so engrained as a behavior you have to trust that everybody who wants to eat out is actually going to try in advance to book a table. >> always a critical way to look at it, mike. shares are popping today after launching value packs. aditi roy has the details. aditi. >> hi, sara. shares are up 2.5% of those frozen value packs are half the

price per pound of current fresh offerings of it's a play for market share and part of the company's strategy to nab price sensitive consumers of traditional meat it comes a month after grocers grappled with pandemic-related meat shortages that, of course, driving up meat products beyond's new classic cookout pack at walmart and target stores until mid august or until supplies last contains 10 frozen patties for $16. about 20% more expensive than fresh beef patties by the way, the stock has been on a tear, up more than 130% in the quarter. back to you guys. >> just in time for father's day, i guess aditi roy. aditi, thank you where are you, josh, these days on beyond meat personally the data for things like oatmeal looks a lot stronger as we've been covering on "closing bell" and nielson data but what say you?

>> okay. it seems as though the pandemic was a trial opportunity for consumers all over the country who probably were sick of eating the same three or four dishes they know how to cook. we've heard executives at fortune 500 food companies say something to that effect it wouldn't surprise me if that increase in trials leads to a more sustained population of potential buyers than what it originally was but if i told you that this stock over the last one year is flat, you'd be very surprised, because we've seen it go from 50 to 100 -- 50 to 200 back to 50 and now back at 155. if you're like a long-term investor in beyond meat and you've held it for the last year, you really have nothing to show for it for all the volatility you've been forced to endure i tend not to love stocks like that sharp ratios and risk adjusted returns, i don't think we want

to be in stocks that can triple, cut by two-thirds and triple again unless we're short traders. this is a trading name only. prove me i don't think, but so far that's what's going on here. >> but here to stay for the long-term as a product and grabbing market share regardless of what the valuation multiple will be. >> yeah. it's an obscene valuation unless you use something like market share, then starts to make more sense. if using discounted cash flow analysis you have to have a smirk on your face when you put a price target on the stock. that isn't realistic that doesn't seem to matter. it moves on positive headlines and goes higher. the same could be said on negative headlines i don't think the people who you see buying and selling this stock day to day are trying to compare it to the multiple on tyson's foods. that's not what happened here. >> allow does it trade, with

consumer staples as a result of covid-19 and stocking up at the grocery. the numbers according to nielson do look good for alt meat. >> no tout it got a little bit of a boost with people experimenting what to cook since i'm cooking at home every meal mostly the stock reflects enthusiasm for the overall category, overall long-term movement toward plant-based meats and the only pure play that's why relative to its own business it's got a crazy valuation. by the way, it's in the top 100 in robin hood accounts, too, in case you were wondering. >> what a surprise. two minutes left in the trading day. what are you seeing in the internals here >> been dragy, three to one in new york stock exchange, up to down volume. that's the case all day before this leg lower in the indexes. more defensive tone, high beta

etf low volatility, high beta more aggressive, cyclical underperforming low volatility hanging in there vix,dindex, not really bled lower but the s&p got there. mid-30s not quite telling you it's 100% comfortable with where the market is but definitely better than where it was a while ago. >> we have a little left on the session, down 136 126 points low 220. from the intraday much closer to the lows of the day than the highs, up 110 points s&p 500 down a third, nasdaq com pot holding onto a quarter percent of gains russell 2000 down 1.7. energy the worst performing sector down over 3%. if anythings, real estate down more than 1% themselves. tech, consumer discretionary and communication services, the only three sectors in the green and

only fractionally in the green as they sit now. dollar slightly higher, oil down 2%, gold is slightly higher and the ten-year 0.73% at the bell we are down 0.3 on s&p 500, 0.6% on the dow and up slightly .2 of 1% on the nasdaq. >> right around session lows there. welcome back, everyone if you're joining us on "closing bell" i'm sara eisen with wilfred frost and mike isley take a look how we finished the day on wall street we were up, we were down, we were up, we were down, took a little spill into the close. we finished lower than 170 points, .6%. the first down day s&p 500 lost a third of 1% kind of trending lower all day. hardest hit down there with energy stocks. technology was outperformer, that led to positive close for

the nasdaq it was higher all day long and it closed just barely higher for the nasdaq it makes it the eighth day, up for tech stops. russell 2000 small cups underperforming down 1 3/4% reverting to the trade on down days safe haven big cap tech stops outperform and small caps and value plays underperform coming up legendary investor jeremy grantham where he sees investing opportunities around the world plus we will ask a former morgan stanley executive why she's suing her former employer for racial discrimination and what wall street should do to create a more diverse workforce jeong us to talk about the market, management ceo josh brown, profit investment ceo eugene profit, first to you, mike santoli on the action, the little selloff in the close, what was it, 4% rise in two days

to start the week? >> that's right. ye yeah it seems as if no real harm done i do think arguably that sharp pull ba pullback we had last week isn't fully forgotten. extinguished most overheated elements of the run to the highs. it's not clear to me there's a whole lot of urgent buying interest at these levels market wide time to go sideways. today and yesterday the s&p made a run into the mid 3100s and that was slapped back. see if that matters on an ongoing basis. >> eugene, where do you stand at the moment are you closer to buy or selling? >> i made a joke with one of my favorite clients that if i wasn't i probably would have done cash a long time ago. that being said, the market has

certainly been veriafter transactive with a lot of retail investors coming in. there's been a disconnect i believe between market fundamental. you think over the next six months you'll see market revert back to historical funds for now i'm glad i'm invested in technology and health care as sara mentioned on down days, cyclicals perform less well. >> what do you do about amazon, google, the companies everyone says are fully valued, plenty of values out there yet on a day like today or any softness you see in the market, that is straight where investors go to hide >> yeah. i would say everyone owns these stocks even if you don't individually

own amazon and apple, you do you have a 401(k), you're actively contributing. i'm pretty sure unless you have a bizarre allocation if you own anything from index fund to allocation fund to large cap fund, whatever the case may be, your dollars are going into these stocks the question is how overweight do you want to be to these names. that answer continues to be involved in the affirmative. when you look at a stock like today, apropos of nothing an all-time high. amazon they said their long-term target could be as high as $5,000 a share, double where it's trading after the rally based on parts valuation. talking about media $500 billion by itself. when you've got companies this lar large. verticals so massive and eating

into other business, we don't have really great historical analogs to compare them to we have condplom rat e-- conglot era. we don't have much we can point out historically and say, okay, now we're done we do have inertia because of fund flows and people have made so much money, these are the last stocks they want to sell, not the first. as long as that continues on, it's hard to say on any given day this is the highest tick you'll ever see in facebook and google it's very hard. >> coronavirus infection and hospitalization spikes in texas and florida have weighed on sentiment today. meg has the details for us hi, meg. >> hi, numbers continue to rise in texas, florida, and arizona as well. all reporting their largest increase in new daily cases yesterday. hospitalizations are also ticking up as well if you look how these are rising

in terms of seven-day averages you see the blue line as the case is rising, the orange line are the net change in hospital sa -- hospitalizations, that includes deaths and discharges that's increasing quite a bit. governor green bay abbott holding a press conference saying testing in high-risk places could account for some of thisbut he also noted that som of the reports of positive katz were in people under the age of 30 and referenced some suggestion that could be related to people going to bars and restaurants and said there could be potential revocations of liquor licenses if people don't follow the rules for bars and restaurants. also some questions about wearing face masks in texas. the mayor of san antonio tweeting out today that he and eight other mayors in texas were asking the governor for the ability to enforce wearing a face covering saying they need the capability to respond as

localneeds require and concerned about potential overwhelming of the hospital system there the governor saying they have abundant hospitals now guys. >> meg, a question i don't even want to be asking. so clearly a lot of the doctors we talk to, including dr. scott gottlieb said patients should fare better than hospitalizations in new york because of time and experience and fighting the disease and techniques around ventilation and treatments like remdesivir when do we get mortality numbers? they obviously come with a lag, when will we see more at that time numbers in those states that really help us understand how we're doing in our fight against covid-19 >> that's a great question and a couple weeks lag to the hospitalizations data. experts, as you point out, do say that should improve. treatments improving, our understanding of how to treat the disease is improving so we

hope we won't see such bad numbers. also the reason mortality was high in new york, our icus did get overwhelmed, so the hope is we can keep that happening in other places. >> thanks so much for that eugene how important are individual data we're getting on spikes or second spikes or first spikes, whatever it is, compared to the underlying economic data, if you buy the idea secretary mnuchin said we're not going to have a full economic shutdown regardless again >> investors have been very optimistic you have fed put in place a lot of liquidity coming into the market if you're really looking at investing from a valuation standpoint, earnings have been being adjusted down for most of the year second quarter earnings will be down, third quarter earnings and fourth will be down.

any time you have adjusted valuation in stock market is higher so the way we manage money, the market is pretty overvalued based on what's going on that's not saying over the course of next year, as we get some kind of treatment protocol for the virus and the economy begins to continue to open up, and you don't have massive second wave, we're going to probably have some, that the market can't take higher i think head winds that investors basically decided that they like the optimistic case. we feel better about the fact that the sun is coming out we want to see the market higher from a fundamental evaluation standpoint, we think the market is getting -- there's a lot -- >> let's talk about hertz for a moment suspending its plan to offer $500 million in new stock. that news breaking in the last hour or so

bob pisani with the details. bob. >> sara, you might recall they were going to float $500 million despite the fact they were in bankruptcy proceedings in an interview, we talked to s.e.c. chair clayton, we asked what the s.e.c.'s role was in approving these kinds of stock offerings. >> in this particular situation, we have let the company know we have comments on their disclosure in most cases when you let a company know the s.e.c. has comments on their disclosure, they do not go forward until those comments are resolved. there are other processes here that companies have to follow, including if the shares are going to be listed, continuing listing requirements for those new shares and there are professionals involved >> so that's happening the company is holding off on the stock sale pending

discussion with the s.e.c. by the way, we don't know specifics of s.e.c. comments clayton didn't tell us that. the company did say the common stock offering may be worthless, didn't go any more than that maybe that wasn't enough for s.e.c. we'll try to get information on that the company in regular contact with s.e.c. since june 15th. hertz pending after this interview hertz stock halted prior to the pending, essentially unchanged. what a why would ride hertz is going on as low as $0.40, then as high as almost $6 june 8th there's that wild ride you see, about $2 today guys, back to you. >> all right bob pisani bob, thank you josh, was that you buying after news that the secondary stock sale is getting called off >> yeah, no, it's not me i think the s.e.c. is absolutely doing the right thing here sending a signal that just

because there are aberrations in the market, that doesn't mean a company has a right to come in and take advantage of it hertz even pointed out how unusual the situation is when it first talked about its intentions charitably you could say they have a fiduciary obligation to claim holders to try to get the best terms for financing as possible an equity sale was cheaper source of financing than debt or in possession, which is what hertz would normally be doing. charitably intentions are good on behalf of regulators. i want to shout out something that took a principled stand here very important i see more of this in the industry on the phone with the founder of public, which is kind of like the robin hood but for more long-term investors, young investors, who are learning how to really invest and not just trade. they closed off access to shares

of hertz for their users because their users, they have a lot of inexperienced people if your first experience in the stock market is buying shares in a bankrupt company because it's in the top ten hot list on an app, you might never invest again after that public did the right thing, nobody trading, not going to facilitate it. here is why. they were very public about that, no pun suspended i think there should be more about that sometimes things happen before regulators step in i don't think anybody should be doing this by the way, the stat, from verdad capital if you look at the annualized performance of publicly traded stocks with cc or worse rated debt, the lowest rated almost bankrupt companies annualized stock performances negative 34%. while it might be fun to day trade, this almost never works out well. >> quickly on the hertz topic, i

wonder what you made, what jeremy grantham said this was even possible they were doing an equity offering despite bankruptcy a clear sign of a market bubble. >> i don't know market wide bubble, it does say something about overheated speculative activity because so much of the market did come back from the dead in march. companies not in bankruptcy priced for extinction. it's a bad first experience if this is what you do bought shares of chapter 11 delisted perhaps down the road and not have any value but think how much better it will be when you start investing in going concerns that are not going to have a termination date hanging over the company's head. i don't know there's a way to necessarily say this reflects market wide mood, sentiment.

>> josh and eugene. >> only get better from hertz. >> my pleasure. >> up next, more of our rare and exclusive interview with legendary investor jeremy grantham tse l ask where he is investing ouidof those concerns he had for the border markets back in 90 seconds oh, we love our new home. neighborhood's great. amazing school district. the hoa has been very involved. these shrubs aren't board approved. you need to break down your cardboard. thank you. violation. violation. i see you've met cynthia.

at least geico makes bundling our home and car insurance easy. and it does help us save a bunch of money. two inches over regulation. thanks, cynthia. for bundling made easy, go to geico.com can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. welcome back jeremy grantham toll us earlier today he thinks the market is in a bubble but has an eye on key

investment themes around the world. grantham has long been a climate change advocate and drives a tesla. i asked him whether he likes tesla as a stock. >> i have never bought the stock of tesla there have been a couple of times i kicked myself for not owning them. no, i don't. highly unlikely anything approaching these prices that i would. they now -- its market value is now greater than the entire german automobile industry of vw, bmw and mercedes, quite remarkable. >> but do you think electric vehicles is a trend to stay. and kind of going back to oil prices, damaging for those oil companies? >> i think electric cars are, of

course, a done deal. everything hinged on the very high price of batteries. the battery prices have come down from $1,000 kilowatt in 2010 to about $120 would be the cutting edge today anything below $100 and the cost of making an electric car is cheaper than a gas-powered car they are already much cheaper to run, much cheaper to maintain, they have 15% of parts, fewer accidents, simply safer. of course, wonderful to drive, great acceleration but going forward from now on, the battery prices will not stop going down they will continue to drop i would think in five years they will be 50 or lower. just an astonishing change from

1,000. and they will be much cheaper to build. so they will take over the market exactly how fast will depend on government help, regulations, and so on. but they will take up the market pretty fast. it will more or less guarantee the demand for oil doesn't grow more than 1% a year and may not grow at all after a few years and will go into a long, probably quite slow decline out into the setting sun. >> you mentioned, jeremy, the opportunities that do arise during a crisis, including the current crisis what do you say the top theme you've identified as being a potential opportunity in the couple of years ahead in part because of this crisis >> let me once again reemphasize

the uncertainties involved one of them, of course, really does hinge around climate change are we going to come out of this crisis with a renewed belief that sensible legislation, regulation really helps, that the government really does have a role to play in being prepared and protecting the public good if that is the case, climate change activity might boom if on the other hand we fixate on things economic at any cost and regardless of any long-term downside, it may not i'm optimistic that climate change will play a bigger role and that it will pick up a lot

of psychological support going forward. if it does, that means a lot of industries connected to the greening of the economy can do very well indeed we put a lot of money into green venture capital. the opportunities there are very impressive, very exciting. the amount of science going on there seems incredible. >> what about other assets in the broader portfolio, if typical equities are lower, are you owning what sort of protective assets like government bonds and gold. >> i believe venture capital is far and away the most healthy part of the capitalist system. i think american capitalism in particular has gotten a little fat and happy, to monopolistic, too conservative, not interested enough in growth but i think venture capital we are still

every bit as dominant as we have ever been. we to a really great job it is not an accident that the fangs are all retively recent consequences of a terrific venture capital. they are just not that old. >> when you wave that out with your recent shareholder letter, jeremy, i wonder what you expect returns to be for publicly listed development market equities on average for the next year for the next decade. >> there has seldom been a bigger range of value. with the u.s. extremely expensive before covid started and vulnerable at the other end emerging

markets selling at pig discount, ten-year pe as it ever has yes, of course emerging may have some problems coming out of this but so will developed. you can be pretty confident that with china and india and brazils of the world that they will have a highergrowth rate than the developed world. i don't think the developed world will grow much more than a percent, the u.s. at 1.5%. but the era of 3% plus that i grew up in in the u.s., and almost that in europe, i believe is simply gone. >> jeremy grantham there sara, the loudest, clearest positive call that came out of that was for venture capital as opposed to the public markets.

but within public markets clearly in favor towards emerging rather than developed stepping back from that, the thing that stands out to me that he highlights is not just that the fed is all in. we all know that last year we were questioning whether there was much more that the fed could still do this year we seem to be embracing what they are doing as if it's much more transformational but either way very fascinating and bearish outlook on developed market public listed equities from jeremy grantham. >> he finds every chance, wilfred, in your conversation to talk about the great uncertainty that lies ahead for the markets and for the economy. just thinking back, some of his greatest hits, he's often bearish and made amazing calls before, '87, 2009, thinking of greatest hits, a lot of them have been calling on bubbles, so this bearish tilt for the overall market. >> and dot-com bubble as well.

i would add some of the themes, some of the themes, this has been a bit unfair on him, was similar to what he spoke to us about 18 months ago when he was on you can certainlycontinue to make that argument as you might to warren buffett who sold a lot of his stocks in march and april. they are calling the top too soon maybe more pain if they aren't exposed to more. over the long-term you can't argue with grantham's track record clearly he says he thinks we're in a bubble right now. >> still ahead great stuff, wilfred. still ahead, money market assets surging to record levels up next kemi santoli whether it will fuel more gains for stocks. what it could mean overall we'll be right back. blab

♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey

stocks closing lower first down session in the last four. let's go back to mike santoli looking at investors level cash levels and what it may mean for stocks. >> something that comes up among strategists that have a bullish stock market call pointing to $4.6 trillion sitting in money market funds making the architect this is all potential energy to be funneled back into

equities arguably and therefore represents a defensive posture by investors i want to poke a couple holes in that, not to undermine there is cash sitting there a fair portion of this increase recently is not just main street investors stashing money in money market funds because they fled the market, make in institutional funds. in part it's companies that have sold debt, they parked the money in institutional money funds before they they'd to use the cash that's some of it. didn't want to place it in perspective, above 2009 levels look compared to market cap of wilshire 5,000 total u.s. stock market, back in 2009 it was actually exceeded the value of stock market at the time at the market lows. it's pretty high based on history, comparable to 2000 at the beginning of admittedly a long advance in stocks

it does put it in context to someone who has never seen it before, cash, what it means for buying power for the index. >> also shows, mike, how many people have missed out on this ral rally. i think the question you asked, what does it mean next i wonder if people sitting out and being cautious here, missing out on the rally are putting the money now when valuations have only climbed so far. >> historically, sara, it does take a while for those folks to, perhaps, capitulate. "wall street journal" had an article this week saying based on fidelity's data, a very high percentage of their clients above age 65 sold out entirely from the stock market in february and march that shows those folks unlikely necessarily to get back into equities in an aggressive way. >> mike, thanks so much for that the market, by the way, a reminder closing down a half of

1%, 0.6 for 117 points coming up, paying lip service to diversity, a former morgan stanley is saying about her one-time employer. up next we'll ask her why she's suing the firm for racial discrimination and how she thinks wall street can fix its lack of diversity. ♪ ♪ ♪ ♪

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♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey pref in the wake of george floyd's death demanding change not only in police departments but corporate america as well. one time morgan stanley then moved to other rolls recently filed a lawsuit racial bias for retaliating against employees who sought to make the firm more inclusive. she was let go in december last year after spending 26 years at the bank morgan stanley notes that 1,500 other people were let go at the same time as part of a broader head count reduction they also released this

statement to us, quote, restrongly reject the allegations made in this claim and intend to vigorously defend ourselves in the appropriate forum. steadfast in the commitment to improve diversity of employees and made steady progress while recognizing we have further progress to make will continue to advance high-priority efforts to achieve a more diverse and inclusive firm, end quote. joining us now is marilyn booker and her lawyer good afternoon to you and thanks for joining us. >> thank you for having us. >> thank you for having us. >> marilyn, please outline the facts. why are you suing morgan stanley. >> first of all, i want to say i wanted to be on the cnbc but i didn't think it would be to talk about what we're talking about but i'm happy to be here this afternoon. it's not that i wanted to sue morgan stanley i've spent almost half of my life at morgan stanley and definitely the lion's share of my career at morgan stanley but

i was fired. i didn't have any options and that's why i'm here. i think the bigger part of the story is that i think it's important that i talk out and tell people what happened because my story is not unique to me. my story is the same story of so many black people, particularly so many black women on wall street in corporate america, i have to be the messenger i'm hopeful what i'm doing will encourage them and give them the strength and courage quite frankly to speak out and tell their truth. >> so why now? why the timing, marilyn, in particular of filing the lawsuit. >> i didn't ask to be fired, morgan stanley picked the timing, not me. >> right at the same time if you really experienced this inequality, this racial injustice at the firm for the 26 years prior, could you have done something about it sooner, perhaps >> i'm going to jump in here,

wilfred. this happens, it's very common fact pattern employees apparently know that if they raise their voice, they know the repercussions that are likely to come they manage the best that they can. that is exactly in the complaint as alleged what marilyn did to her best ability she tried to manage it, she did speak up the tipping point was the termination after she was speaking out and really encouraging them to engage in serious diversity investments of black employees. >> marilyn, it's sara. i read through the complaint in it you allege morgan stanley has deep seated racially unjust policies that have resulted in alarmingly low and

disproportionately member of black employees among their ranks. wonder what evidence you have of deeply seated racially unjust policies you accuse them of. >> what i want to talk about is the facts, sara. this is public information 2.2% of morgan stanley senior executives are black 5.8% of morgan stanley's employees are black. there was a story in 2006 that talked about less than 2% of financial advisers were black at the big banks. it is my belief, as we allege in the complaint, that morgan stanley is below that number i think that what people need to focus on is why are those numbers so low if firms like morgan stanley say they are so committed to diversity and so committed to making a difference, why have those numbers not changed and

why aren't there more people of color, particularly black people, in those firms and in this business. >> marilyn, those numbers you are absolutely right to point out they are too low i wonder reading all of the announcements over the last five years but particularly over the last few weeks is that the company acknowledges that and is acting to improve it, particularly over the last couple of weeks promoting a number of people to the management committee of color and to the operating committee of color nonetheless, jean, if i can put the question to you. in the press release you say morgan stanley had decades to get its house in order, diversity and inclusion, no more excuses. the statistic marilyn point out 2.2 senior executives not good enough being black or african-american it's sort of similar, though, to other wall street banks. so do the other wall street banks deserve to be sued as well >> marilyn's case is marilyn's

case the industry-wide excuse, it doesn't fly anymore. they can say that, that's what they have been saying over and over again we heard this in the #metoo movement for the same reason why women weren't on boards and have a seat at the table. it was an industry-wide problem on wall street and that's why women weren't there. it's not good enough because they are claiming they have done -- they have worked on diversity and have been doing it for years. as alleged in the complaint, marilyn saw the data in her role as the head of diversity, she knows what the numbers are, and the reality is that from the time they moved her to wealth management to 2019, her budget had been slashed by 71%. so james foreman is sitting there saying they have been working really hard on diversity but career over year they keep

slashing the diversity budget and then they finally pushed her out. now suddenly when it's politically correct to be saying these things, they put one black female on the operating committee and one black female on the board >> clearly the numbers speak for them selves, marilyn during your time you were there, did anyone say anything to you that was racially insensitive or gender insensitive that led you to this? >> i think that people have gotten a lot more savvy around these issues it's not about the overt racism that takes place and overt discriminatory things that take place, it's the things that are much more subtle you have to take those in context of what the end results are. so people know not to say certain things but it's what they do and the behavior that

has the impact and makes the difference we call them microinequities because that's what they are ings things on top of little things that end up in the larger result but ends up not having a lot of black people in senior positions and even in the organization for that matter. >> marilyn, just to round things off, i kind of want to go back to a similar question, just wanted to come back. sorry, getting interference, my apologies, marilyn, some people are talking to me in my ear. i'll start my question now that i can think straight i want to come back to the timing i guess your role as global head of diversity and inclusion, you actually left 11 years ago and took another role for around about a decade before leaving. so i ask you again whether or not the lawsuit could have been filed at a different time. >> want me to answer that? >> sure. >> first of all, when i was in

the diversity role, i do believe we made progress in that space as a matter of fact, i know we made progress. in the last 10 to 11 years, even though i was not in that role, i still was mentoring people i still provided advice to people and i did it informally i did the best i could to help people who were having challenges at morgan stanley it got to the point where i didn't think i could sit on the sidelines anymore. i didn't think i could just give that off the record advice, which is what prompted me to talk to senior management about doing something to make a difference to help particularly our young black financial advisers be successful in a system that was designed for their failure. and that's what led to me being terminated in my opinion and as our complaint alleges. >> so finally, marilyn, what exactly are you seeking here it is going to take a while to

fix these numbers. are you heartened at all by james gorman and so many ceos on wall street and beyond now committing to higher numbers of african-american recruits and senior ranks and board members that could eventually help address this issue >> saying that they are committing tothis and doing it are two very different things. again, they all said the same thing in the wake of #metoo, and it hasn't really materialized. so suggesting that a $25 million investment in this renewed interest in diversity is going to meaningfully change things, i'm dubious. it's going to take a lot of effort it's going to take more than $25 million. it's going to take more than just a commitment. they have to do it i think that's -- the timing of marilyn's complaint is about

saying it's time to just do it stop saying what you're going to do stop throwing some money that in their budget is not a meaningful amount and really make these numbers change to people can see they mvp it. >> sara, i'd also like to add, and i said this before, this is not rocket science it's pretty simple you hire black people. you promote them you put them in roles and give them responsibilities so they can be promoted and they are on serious career tracks, and then you pay them it's just not that difficult. >> marilyn and jeanne, we thank you both for joining us. >> thank you so much for having us. coming up, we're going to take a look at the market today. stocks, they lost ground for the first time in four sessions. the nasdaq bucked the trend and closed up for the eighth time in nine sessions. we'll be right back here on clinbe osg ll ♪ [shouting]

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welcome back time for cnbc update with rahel solomon. hi, rahel. >> hi, will. the atlanta police officer who fatally showed rayshard brooks has been charged with felony murder and assault the district attorney recommending he be held without bail. >> because of the severity of his act and following up that act with kicking mr. brooks, we're asking that he not be granted a bond. >> and in suburban st. louis a police detective charged with two counts of assault and armed criminal action for aldly

hitting a black suspect with a police suv and then kicking and punching that man. it happened north of ferguson where you might remember michael brown died at the hands of a white police officer in 2014, a catalyst for black lives matter movement. overseas foreign ministers of g7 nations urging china to reconsider imposing a national security law in hong kong. president trump also signed a bill calling for sanctions over china's treatment of uighur muslims. sara, i'll send it back to you. >> rahel, thank you. up next, stay-at-home learning, duolingo, scored himself a spot on cnbc's disrupter list we'll talk to the ceo when we come right back.

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many around the world to sharpen their language skills or learn an entirely new one. duolingo, the most downloaded education app in the world saw

its users double in march, earning a top spot on cnbc's disrupter 50 list for the third year in a row. joining us now is ceo luis von ahn, give us color if you could about what you saw over the past few months as america went into lock down. >> thanks for having me. we saw it not just in the u.s. we saw it in pretty much every country in the world, starting with china, as soon as our country goes into lock down, we would see our traffic nearly double and it's a lot of times it's because either kids have to stay at school and teachers, you know, get them to practice their language using duolingo or adults who are trying to use this time to improve their lives, so we're seeing pretty much every country, and you know, in some of the countries where the lock down has ended, actually, the traffic remains elevated, so people stick with the habit, which we're very happy with. >> how is the app monetized,

luis. >> good question, so the app is free but we do have ads at the end of the lesson, and if you want to turn off the ads, you can also pay a subscription, so it's very similar to spotify where, you know, you can either have the free version or with ads or the paid version without ads >> i actually wanted to finally ask you, luis, about yourself. we have been shining the spotlight on diversity and business and the lack thereof, and you are from guatemala, i'm wondering what your experience was in terms of raising money in a primarily white venture capital dominated world and whether you found that there was an opportunity gap there. >> i was born and raised in guatemala, and that's probably the reason i started duolingo is because in poor countries like guatemala, a lot of people want to learn english knowledge of english can double

people's income potential. that's why i started duolingo. i personally have been lucky that it that night been that hard for us to raise money i think, you know, in my particular case, i'm pretty white looking, so i think that has helped, i would say. so i have not personally experienced the problem, but it is -- i definitely see it when i'm around and in meetings with other companies that are investors, investing, it's mostly, you know, white men. >> yeah, well, thank you for joining us, luis, and congrats on making the list again. >> thank you thank you very much. >> good to see you >> luis von ahn, for the full list of cnbc disrupters, go to cnbc disrupters. tomorrow, the ceo of good rx on "squawk alley" and joined on closing bell by the ceo of

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kroger reports tomorrow, and you can expect a big number. america's largest grocer has seen sales explode as restaurants have been shut down. 1 pn $1.3 billion in sales expected inflation, consumers are paying higher food prices we know that does that help margins and will it continue. online sales, kroger has ramped

up click and collect delivery, but it is considered behind the ball next to amazon and walmart its two closest competitors. pro motions. should help kroger, too, but again, will that last, guys, that's the question. will the dictate the stocks direction tomorrow also tell us about consumer behavior in general. >> certainly will. that will be a key read tomorrow, but as for now, the key thing to watch is "fast money," which starts now. thanks, guys fast money does start right now. tonight's trader line up, dan nathan, and karen finerman, should technology permit why what's been the biggest risk, we'll tell you how the fed could go from friend to foe, plus a brand new season of fo fortnite is underway, and guy has got a fast pitch for us, will the