says that they could create a flight risk with companies leaving the city voters will vote on the bill later in november. back to you. >> thanks very much. and that does it for the exchange oig i'll see you on "power lunch" in a moment s if. i'm melissa lee and this is "power lunch." a commhoppy trading session. the nasdaq is the outperformer up about a quarter of a% right now. plus check out the cloud stocks hitting new highs this week as america stays, shops and works at hole. adobe, some of the movers. and also cinemark is getting ready to reopen theaters across the country in july. the ceo will explain why he thinks the silver screen is about to make a comeback "power lunch" starts right now >> melissa, thanks and the nasdaq is on track for a

five day winning streak. dom chu has more. >> and it has been the outperformer the nasdaq again up about one-third of 1%, so well off the lows of the session so far all those lows by the way, the dow industrials down roughly 271 points and we've gained back a lot of ground, but a lot of waiting and seeing with the s&p just about flat. let's take a look at some of the sector movements since the covid lows that we saw back in march over the last three months, the real standouts have been energy, up about 68%, consumer discretionary, retail names up 47%. and technology names up about 37%. are more sensitive names playing on a recovery or hopes of one driving those particular gains so something to watch. and then the stock of the day is spotify hitting a record high up 13% off the highs of the day after it inked an exclusive deal with kim kardashian west to host a new exclusive podcast

centering around kriccriminal justice reform and remember a lot of headlines, dwrenkt listin direct listing, not an ipo, april in 2018, that reference price 132 bucks a show for the ipo-ish. big move for spotify and take a look at the performance of the five biggest stocks they are doing the heavy lifting. so how worried could investors be about the top heavy market? michelle and lorain are joining us great to have you with us. we've been in the state where the five biggest companies have been the leadership for the past couple years, so why is it concerning at this point in time >> technology is the way of the future and we know that. and that is why we've seen such a run none technology. but we'd like to see a more broad based market recovery.non.

but we'd like to see a more broad based market recovery. and that is why i'd say to think about looking at some of the names or some of the areas that haven't had the same run up. so if people are bringing in cash at this point, to start looking at other areas not that we don't like tech, we love tech, but there are areas of the market that we also like. >> michelle, do you agree, is the time now to switch from the growth trade which has been bret defensive to the value area of the markets? >> i wouldn't say i recommend completely switching out of tech i think that it is important to keep to your long term strategic asset allocation but i would look and see maybe it is time to rebalance. i know a lot of our clients are overweight equities because of the recent rally and furthermore, if you do have some of the tech positions that have highly appreciated and have large capital gain, now is a great opportunity about maybe thinking about gifting those shares to your donor advise fund so not only can you give to

future charity, but you can mitigate the long term capital ga gains. >> would you say gift over rotate >> that is just a question how charitable you want to be, but i wouldn't say rotate. i think that it is really important that you stick to still having growth in the portfolio. but i think being overweight here might be concerning >> so so if you say harvest some of the profits and move into other areas, what other areas should you be in there are concerns about a second wave hitting the economy or that the reopening will be in fits and starts. and if that is the case, that will hit sectors that are the so-called value sectors like industrials. >> right but we also have a potential infrastructure package coming, maybe not before the election, but probably afterwards. and that would certainly help truck. anoth infrastructure. and another area we're looking at are financials. xlf is down significantly, 20% and if you look at the big

banks, they are down around 30%. so certainly some opportunities there in addition to industrials. >> and there was a big area though in the "wall street journal" today about people in forbearance and student loans, auto loans, other types of debt in which people are having difficulty either paying right now or they are in forbearance so it has yet to be seen as to when the period ends if they will be in fact able to pay. is there a question mark on the banks at all especially as we go into the stress test next week >> are right, but you heard the fed say just this last week that the banks are well capitalized. fed say just this last week that the banks are well capitalized a he ree rehe and he reiterated that in his testimony before congress. so i think we can believe that the banking system is in good shape. if we compare to 2008/2009, we have nothing like that when it comes to our financial system. so we still see that there are opportunities there going forward. >> michelle, what areas of the market do you like right now >> i mean, again, i think that

it is important to stick to your long term strategic asset allocations. i agree that i think some value names are undervalued. we have a small favoritism to emerging markets i think the demographics over time and as well as groviwing consumer base is attractive. >> so within the u.s., you won't tell me what sectors of the market you like? >> we invest across the markets. we don't particularly favor tech or anything like that. we believe in long term strategic asset allocation. >> all right we'll leave it there we appreciate it thank you. now let's get to a landmark decision from the supreme court on the fate of hundreds of thousands of dreamers in america. kayla tausche has that story >> reporter: the supreme court ruling that the trump administration did not make a compelling enough argument to end the deferred action for childhood arrivals program keeping in place for now

protections for some 700,000 undocumented img gramigrants whm to this country as children. the court invited the department of homeland security to make a new case and president trump incensed by the decision suggested he will. implying that the supreme court was guided by politics not the law tweeting now we have to start this process all over again. corporate america plans to continue fighting on the other side ibm is one of 143 companies to file a breach supporting daca and says that verdict gives daca recipients some temporary relief, but we urge congress to pass a bipartisan legislative solution that will provide the permanent sense of security the dreamers deserve in the original brief, the companies noted dreamers work at 72% of the largest u.s. companies. they say replacing them would cost an estimated $6.3 billion and taking them out of the u.s. economy all together would result in a $460 billion hit to gdp and a $90 billion hit to tax revenue. apple ceo tim cook tweeting in

praise of the decision on behalf of the nearly 500 dreamers that work at apple and just before we came on the air the business round table out with its own statement also urging a bipartisan solution between the administration and congress. back to you. coming up, stocks on track for their fourth week of gains out of the last five with the s&p just barely higher today energy the outperformer up by about a percent. and shares of sin that macinemal down will people actually go back to the movies the ceo will join us right after is . with fidelity wealth management, inealth management. g

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and tailored recommendations. hellbut you already itknew that.. and i've got some tips to help you get through these challenging times. first, practice physical distancing. i'm sorry, i did not see you there. i've been doing it my whole life. or there. plus, there are lots of things you can do at home. like, stay active with some sick dance moves. be daring. and whip up a new dish. i love the combination of gummy bears and meat. you can do video calls for all of your important meetings. what? sorry. or just have some fun. ok, not that much fun. now, this does not come naturally to me. but, try to be kind to each other. this is a tough time for everyone. so that's it. stay home. stay healthy. and remember, we're all in this together. what? but totally separate.

you know what i mean. yaaaaay! welcome back we have a news alert on facebook removing trump's re-election campaign adds. julia. >> facebook says that it has taken down trump re-election campaign ads that describe, quote, dangerous mobs of far left groups and feature a red inverted triangle which is similar to a nazi symbol that is banned on facebook because it breaches the rules on on hate. facebook saying we've removed these posts and ads for violating our policy against organized hate our policy prohibits using a banned hate group's symbol to identify political prisoners without the context that condemns or discusses the symbol we're reaching out to the trump campaign for comment this is after mark zuckerberg has said that the company is reevaluating how the company will flag posts that could incite violence and this is as

tech companies face growing scrutiny from the trump administration >> and it is interesting because facebook's stance earlier on some tweets was sort of lauded as being the more neutral one and maybe favorable in terms of the administration sponsor regulators going after facebook versus jack dorsey at twitter and here mark zuckerberg is sticking his toe into it you have to wonder what the political blowback will be here. >> i think that the thing here is that facebook is saying that this clearly violates their policies they are using a in a z zi snazi symbol and it is clearly in violation of the policy. before zuckerberg was saying that it was a gray area, it did not violate the policy, that he wanted the public to be able to see what the president was saying here are ads that actually clearly violate the policies so it seemed like for them that it was a pretty easy decision to

make >> it will be interesting to see what the administration's statement is thank you, julia cinemark announcing that it will reopen all its u.s. cinemas by july 17, but with social distancing and studios releasing more content directly to consumers, the chains are facing a lot of hurdles cinemark's stock is down 56% on the year it has climbed back the past month, up 3.5% today and joining us is ceo mark serati how confident are you about people showing back up to the theaters when they reopen? >> we're very confident. we have a lot of consumer research that has said that as wro long as we take extra health pr are actually anxious to come back >> and we've been speaking to

doctors as we learn more about coronavirus. and they say closed contained spaces for a long area of time, those are kind of the worst offenders. movie theaters would be emblematic of that it almost makes you wonder if they are safe to reopen. >> kelly, i think they are we've had a lot of experts that have helped us in this, we've increased the air flow, we're sanitizing all the theaters in the very beginning of the day, spraying every seat, we're going back in between every show, we're social distancing both in the lobby and in the seat. we have automatic technology so if you go and bought two seats in the theater, we would automatically block out seats around you as well so i think with all these precautions and all the health and safety precautions, we feeling pretty confident especially because we'll be starting out with significantly less amount of capacity. i think we feel confident in the safety of our guests and employees.

>> and even if capacity is reached to the -- let's say capacity is 50% and you give me the number, and you are able to fill every single seat at that 50% full capacity, how should we think about whether or not you can make money given the additional costs associated with doing business in this environment? >> typically in a pre-covid world, we would have anywhere between 20% and 30% capacity in any given week and only on the opening weekend or the opening night or the second night do the capacities go north of 50%. so we're very confident that by adding additional screens and additional seats, especially in the early days, that we can be profitable at these reduced capacity levels. >> and your higher margin sales i would imagine is concessions how do you forecast how people would be receptive to eating and drinking in this environment >> we're going to be careful with concessions we'll start with the core. we'll start with soft drinks and sodas and popcorn and packaged

candy. we'll hold off on many of our other enhanced foods like hand made pizzas and hamburgers and tacos and such so we'll take that slow and easy, let people be comfortable. all of our employees will be wearing masks and gloves we are hiring all these people back now we're literally hiring back nows of people and going through a very extensive training session with all of our employees. >> what is your financial position like? amc has been under a lot of scrutiny for whether they have enough cash to keep going. and how would you be affected if there are renewed orders by even towns to have people avoid movie theaters. >> kelly, we were fortunate to go into this in a very strong position we had a strong cash position of almost $500 million going in with a very low debt ratio as well so we've been able to manage our way through this and we can see a pathway clear even if theaters were to remain

closed for an extended period of time you know, going into the following year, we have a strong liquidity position so we're very confident because we went into this in a strong position that we're financially going to be able to see it through and come out on the other end a very profitable company. >> and one final thing and i appreciate you taking all these hits from us, but there is this shift to at-home viewing i know there have been lawsuits about this and whether media companies can release movies direct to consumers. but the tech giants are doing it, it feels like the future what happens if this is the way the world is going >> you know, the world of home viewing has always been there. i have a good fortune that i was in the entertainment industry going back to the days of dvds and even vms and there has always been direct to home. many times some of the sequels of the biggest movies went direct to dvd and then cable came and people still went to the movies

and now streaming has come and 2081 was the biggest box office year in the history of the business '19 was just slightly below that the world did $42 billion in '19 in the midst of all this streaming. so we know people want to get out of the home. and enjoy great blockbuster movies in a big cinematic environment. so this is not new and we think that -- and we know actually through our consumer research that they are anxious to come back and enjoy that communal experience. >> mark, thank you so much for joining us >> thank you >> best of luck. be sure to watch "mad money" tonight, jim cramer is sitting down with amc's ceo. and still ahead, this stock hitting a record high today and has been on a tear of late up nearly 300% from the march lows. we'll give you the name and the trid > trade. and airlines are all lower again today as the way americans travel is changing forever

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welcome back to "power lunch. as america shops, eats and works from home during the coronavirus pandemic, the way we travel when we do go out is changing as well phil lebeau has those details. >> big impacts on both the airline and the auto industry. we'll talk about the airlines in a little bit, but first of all let's talk about the auto industry and where you are really noticing the impact especially the people who say i have to drive or i'm going to start driving is with the used car market it is red hot right now. the average price according to cox automotive, just over $21,000, june sales are surging. 40 million used vehicles were sold last year

that is a record may eclipse that this year if things continue to percolate in the second half of the year. take a look at two companies, sonic automotive and car max sonic, used vehicle sales in june up 7% a big change from last couple of months car max will be reporting its q1 earnings tomorrow morning and we'll get an update in terms of what they are seeing and the new vehicle market is not as robust as the used, but it is recovering jd power says that sales last week for the week that ended on sunday, down 4% compared to previous expectations. and the weekly sales, they have come back a long ways from where they were the last week of march, they were down 56%. so you see a huge improvement in new vehicle sales. in terms of the airline industry and america working at home, it is weak corporate travel demand, that is the impact right now conventions and meetings cancelled. and as much as the airlines are trying, they are trying to limit covid-19 exposure, the question

remains do people feel that it is safe to fly we've been asking this question, and there is a slight improvement. it is up to 28%. not great, but it is an improvement. take a look at the major airlines, remember, their revenues are still down 75% to 85%. and their cash burn rates, they are improving, just $25 million to $40 million a day depending on the airline and i know people say you are burning through $25 million a day and that is an improvement yeah, a big improvement from where they were in april it was $100 million a day for some of these guys back in late march, early april >> and going back to the used car market, with the hertz bankruptcy, presumably there will be some fleet sales where they are selling off parts of their fleet for prices that are below or at kelly blue book value. does that continue to hurt sales of new cars? >> probably not a lot because when you take a look at the

234r50e9 sales for rental car companies, a, they don't have as much of the extra equipment that people are looking for and what really impacts the used car fmarket are the 3-year-old vehicles coming off a lease with relatively low mileage >> phil, thanks. now let's get to trading nation oig. >> there is one group that is taking off, the cloud names, a handful of stocks including adobe, shopify, docusign hitting new highs. the cloud etf up 20% this year so let's bring in the trading nation team to discuss john,t agree that you think that it is because of the work from home play or are there other structures in play here? >> there is clearly the work from home play and structural technology in general because they are light on capex, which

means that they generate a lot of free cash flow. and by and large most of these companies do not have a lot of debt on their balance sheet, they have more cash than debt. so these things we're in an environment where we're questioning company's liquidity, you don't have to worry about with a group like this they generate a lot of free cash and they have healthy balance sheets and they are in thematic investment plays such as work from home that has a long runway to go. >> matt, double digit gains for all these stocks this year what is your top pick? >> well, to be honest, i'd be a little cautious on all these names right now. they are getting quite overbought it is funny, last week we saw a big correction -- or pullback in the stock market that worked off the overbought condition it didn't work for many of these names and they are getting more overbought you look at the relative strength indexes, they are all over 70. zoom is above 80

and docusign is approaching 90 now. it doesn't mean that their stock should be bought every day and i'm not saying that people shouldn't continue to nibble at them here. i just think that they are getting ready if a political pullback so people should be less aggressive and look to buy if they see any 5% or 10% pull back with the rest of the market with still a lot of uncertainty out there. >> matt and john, thank you. for morenation, head t our website. and in the week of the social unrest, many corporations have released statements condemning racism and vowing to help fight for social justice. up next, what large companies will have a lasting impact

overbought and oversomtd indicator e esold indicators ar generally used differently look to buys on oscillator falls in to oversold territory and then moves pack above it look to sell it when it rise ares in to overbought territory and then drops below it. swab is t schwab is the better place for traders. look to sell it when it rise while the future of work remains a question mark, one thing is certain re-opening will be a journey.

that's why salesforce created work.com to help at every step of the process, with tools like manual contact tracing to help prevent one from becoming three and three from becoming more. while displaying key information in one place on a customer relationship cathing we're sure of. relationships are the heart of business. so let's tackle this together. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. and tailored recommendations. like real bad. we can't wait to get you back so we've added temp checks, face coverings,

social distancing and extra sanitizing to get the good times going again. we're finally back... and can't wait until you are too.

welcome back here is your cnbc news update at this hour. in california, health officials confirming more than 4,000 new cases since yesterday. it is a new one day high more than half of those new cases are in los angeles county. a federal judge has set a video teleconference tomorrow afternoon on the justice department's attempt to block next week's publication of national security adviser john bolton's book. and to take any profits. the book includes accusations president trump did favors for dictators to further his political goals. and dr. anthony fauci casting doubt on whether the nfl can play football this year. say it ain't so.

he says players would need to stay in a, quote, bubble the nfl says it is working on measures to ensure the safety of everyone at the games. i'm a football fan, so i'll be keeping a close eye on that one. you're up-to-date. >> sue, thank you. let's take a check on the markets. a fairly quiet day, but we have some b moves under the surface. s&p 500 down fractionally. the oil market is closing for the day. let's get to dom chu >> out size gains on a relative basis when it comes to the price action in crude oil. u.s. benchmark or wti prices, $38.84 north of 2% gains there world benchmark, $41.54. some of those gains being driven bio peck and iy opec and their monitor the compliance of the production cuts that they are trying to put in place for a longer term move in oil prices

we're also of course going to pay close attention to what is happening tomorrow with the baker hughes oil and gas racouns continuing to hover near record lows kelly, back over to you. calls for diversity and inclusion continue to grow with demands for corporate america to step in. netflix ceo reed hastings announcing that he will donate $120 million to historically black colleges >> we're stepping up with this $120 million gift, you know, we want to help draw attention to the hbcus, to them being part of the solution for america and for black children to aspire to. and so we're so proud. but really the credit is with dr. lomax. >> and facebook will be committing an additional $200 million to black owned businesses building on earlier investments. are actions like this enough and is it the beginning of a real

awakening from corporate america? here to discuss this and the markets is president of northern chicago. what are your reactions to these huge announcements that seem to be coming every day and the hundreds of millions of dollars? >> well, it is encouraging to see it and really when i think about the things that can be done, it really comes down to three things, inclusion, investment and influence so i think that those are the areas that we have to think about if we really want to drive economic equality across communities. >> so the second one, investment, this obviously represents all of these financial commitments, what about inclusion and influence? >> well, if i look at inclusion, 40% of the population is comprised of ethnic minorities but 23 you look at sea sweet jobs, that is only 13% so you have to start at the don't organizations to ensure that you have representation

that is connected to these communities. if i could touch on investment, because why want to get past while the philanthropy is good, i myself went to florida a&m university, but you have to combine what i say is the pocketbook and the presence. so we want to see those dollars going in, but the firms on campus recruiting, hiring for full-time jobs those things tie together. the last one, influence, is important. if you think about companies, tremendous influence we yield it all the time so whether it is through the philanthropy, whether it is through our civic engagement, really tackling issues like inequality that we see in the criminal justice system or the education system, because these tie directly to the bearing of economic equality across communities. >> that is a great point about having a presence on campus. simply awareness can help the college students you've set a 10% quota on doing

business with minority owned brokerage firms. have you found that to be succe successful >> it absolutely is. one issue we have is with companies oftentimes we'll have a charitable intent but we won't partner with companies so our commitment to say that we're going to invest with these minority owned firms, where they are doing trading business with us, but beyond that, we also work with firms who are investment managers. this is really important because we're investing in and with these firms, we're making a tangible contribution to the communities that they are a part of and then that economic vitality is flowing through those communities. i really think more companies have to make those kind of commitments. >> i want to ask you about the markets more are broadly the state of the economy has drawn so much concern. the fed chair said best thing we can do to help the equality is to have a strong economy we saw that with the numbers before the pandemic. could be years before we get back one way to i guess emulor rate

some of that gap is to get the minority community more involved but you can't do that when there is mass unemployment so it is a difficult issue >> it is, but one of the things that we can do, we can take action think about what happened with all the stimulus that we've seen encouraged by the government but if you look at the paycheck protection program, only 12% of the black and latino owned firms that applied for that stimulus was able to receive it, i think only 5% of the black owned firms. so again, we have to have more innovation and the mechanisms, even the firms that we use, to ensure that these communities can access that vital capital. >> does the rebound with in the stock market make sense to you with certain industries back to all-time highs even as we keep hearing about another million and a half people on jobless benefits >> if i think about what our position has been, when we saw the market at its lows, we actually still were overweight risk if you have seen the markets

improve over time late in may and then again here in june, we've actually reduced our risk exposure and that is because again we're at aum time hill-time highs in valuations and we're looking at the various risking that go along with reopening so i think that we're very balanced, slightly underweight our risk and that gives you a sense of what we're thinking about in the markets here. >> and real quickly, how did you get into this field? you've climbed right to the top. but was it by happen stance, did you know from when you were young this is something that you would be drawn to? just curious >> i started at a very young age with an interest in business and investments. but i will tell you, if it were not for promises like inroads or a fellowship for me when i was in business school, i would have never had the kind of access and so that is why i'm glad to see people investing in these organizations today. >> absolutely. thank you so much. we appreciate it

the dow right now is down just about 77 points it rebounded from down to 270 this morning into positive territory. much more on the markets coming up plus a new auto rivalry, ford versus nikola. we have that story next. 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.

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nikola motors is one of the most talked about stocks on the street and the hydrogen truck maker's stock has nearly doubled since going public even though the company hasn't sold a single vehicle yet. i spoke to their founder monday on fast. >> the generation that is investing now, they care more about the environmental impact of what you are doing than they do like, oh, you are six months or eight months from revenue they are like you are changing the world, you will reduce emissions, we'll invest into you. >> the stock got a bit of a boost this week. the first brokerage to cover the stock initiated it with a buy rating kelly, you spoke to that analyst. >> yes, he covers tesla and a bunch of the new energy companies. here is the interesting thing. on tesla, he has a sell.

it is basically the only sell he has, a $300 price target and likes some of the differences between nikola and tesla nikola's a little more outsourced, tesla they do everything first hand. >> considering where the valuation is right now, t differences though, it is important to know those differences because nikola is going after the commercial side of the business, the badger which is a consumer pickup truck, that will be a smaller part of the business and you are leasing the truck, but you are also bundling that with services as well as fuel. so the business model is very different as well as the fact that they are basically partnering on the manufacturing side of the business so they won't have that heavy infrastructure but there are skeptics about hydrogen, period >> yeah, fuel cell, different

estimates about when those vehicles will be ready but when you have the emissions targets coming down from governments especially in europe, they are really stringent. this is not about them choosing to make that capex, they have to meet the targets >> and the more fun side of the story is to compare the two ceos because both make bold audacious promises, they use twitter a lot. trevor milton is on twitter constantly and he likes to make big promises sound familiar >> he's seen the playbook. tesla is tesla's stock is the playbook for anybody. and coming up, the benefits of staying home and we'll check in with a company that is disrupting the doctor's office and video game stocks. millions have nothing else to do except play video games. can they hold the gains as

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welcome back the pandemic has accelerated several digital trends tele health probably the most important of them all. the boom has powered shares of tele doc up over 125%. and other companies in the space are expanding as they had daada to help people staying healthy at home. juleweulia boorstin is joining u with the ceo of heal >> and nick, thanks for joining us congrats on being named to the list

i want to hear about how heal is different. because you started off really being focused on doctor's visits to homes and added telemedicine later. how has your business changed in the wake of coronavirus? >> fundamentally we're a different company because we believe that the doctor's office is dead and we want to bring the doctor to you. and whether that is to your house in person or whether that is to your phone screen verge areally, that is our model the doctor should always come to you. so while we still do and we continue to do thousands of house calls every month, the telemedicine business has grown obviously with coronavirus so people can get the same great care from a qualified board certified doctor without aring to leave their house and without having to expose themselves to anyone's germs, just on their smartphone or any browser screen >> but i guess my question is, stranger into yournt to expose home so great that that it will

really minimize the potential for that in-person part of your business going forward >> no, i don't think that it will minimize the potential for the in-person part of the business last month in may, we did a record number of house calls in spite of covid because our doctors and we as a company are taking all of the precautions in testing and personal protect differen democrat equipment. we want the doctor and patient to be able to interact without having to be on the phone. so without having to be in person, so that the doctors are able to deliver care virtually and wochbone of the things that happened with covid, people are ignoring everything from pediatric vaccines to their diabetes for hypertension and everything in between. and our doctors are able to talk to patients over video to help manage their diabetes or send a pediatrician to their house to make sure kids stay on track

so having both modalities of care is what differentiates us in the market place. >> and you recently also launched a tele health service focused on mental health issues. what is the demand there and what is the potential? >> the demand has been overwhelming it has exceeded our best expectations because people are suffering from what i call, and i'm not a physician or a whic i clinician, but covidsyndrome and then there is the aftermath of the george floyd murder and the protests, african-american and minority families are feeling understandable anxiety, so they are reaches out for the service as well and we're proud to be able to help them. and the beauty of heal, often it is the heal primary care doctor that is referring you to the clinical psychologist or the psychologist referring back to the primary care doctor. so those two providers can work hand in hand for more integrated

care >> i think that you are referencing that you are offering free telemedicine services for a certain period of time beyond that, when are you doing to address the inequity in the health care space? >> the health care space? >> we're making quality, affordable and timely health care not related to where you live, right? i live in a -- west los angeles. there are tons of doctors offices. but if you go five miles east of here or eight miles east of here to east l.a. or downtown in the lower income areas, there aren't as many doctors offices. people don't have insurance. they end up at an urgent care clinic they are likely to put off the preventative health or pay a higher income because they don't have access to primary care. by delivering health care to all

of the markets, we're addressing that inequity. we also work with medicare programs and we also have very low affordable cash prices everyone can get the quality, timely health care that we need. that they need we fundamentally believe that health care is a human right while we are a for profit company, we want to make it as affordable, as easy to get for the lowest income person and the highest income person. everyone should get great health care, independent of their economic status. >> great the ceo and co-founder of heal, thank you for talking with us. kelly, back to you. >> thank you thank you very much. >> julia, we appreciate it we have a news alert from kate rogers >> mcdonald's announcing to day that its restaurants expect to hire 260,000 employees this summer as they begin to reopen dining rooms around the country. remember, mcdonald's is more than 90% franchise

that hiring will mostly be done by its franchisees the company also notes it has 50 new procedures in place to keep people safe as their dining rooms begin to open. this is not the only company we heard from making a big hiring announcement we heard from dominos and papa johns making hirings and dunkin' donuts, 25,000 workers a lot of hiring being done in the restaurant space >> that's good news. kate rogers, thank you the. quarantine is giving people a lot more free time to explore hobbies for a lot of people that's playing video games but will that last as we start reopening? we've got that story next. don't forget, you can always watch or listen to us live on the go on the cnbc app we'll be right back. that's why we're expanding your range of choices. many dealers now offer optional pick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service.

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the states are lifting social distancing restrictions we're still largely stuck at home and that means more time to play video games, of course. and a new report says the developers have seen daily active users increase by nearly

50%. all the activity played well for video game stocks. ea and taketwo hitting new highs this week. and even mobile gamers making a monster move higher, 50% how sustainable is the gaming trend? let's bring in the managing partner of luke ventures great to speak with you. >> you as well. >> what happens when we reopen completely will people still have the same amount of time to spend on video games? >> well, what we've seen is the time is really translated into record numbers for many of the publishers we've seen record engagement for activision and madden. what we think happens is after the economy starts to open up, it's only logical that people have less time to spend playing video games. the shutdown brought in a lot of new gamers and people that gave up gaming in the past into the fold i think they'll continue to play

games even for less time after the world opens back up. >> and you argue that some of the stocks should have a software as a service type of valuation, the likes of log me in or workday or slack why is that? and if we were to extrapolate and put that valuation on the stocks, how much higher could they go? >> that's right. if you look at the way that gaming's business has really evolved, they would send them $60 piece of software every two years. they would buy the new one and that was the end of the relationship until the next call of duty. and now what the world looks like is call of duty has seasons. every season new content is introduced into the game and gamers have the ability to buy battle passes which give them access to that additional content, new characters, new gaming experiences if you look at the multiples,

multiples are typically about two times higher than gaming multiples. so to put it simply, i think that over time this may take three to five years. i think the gaming industry overall should revalue to these more sass like multiples you can see this tail wind for the base multiples on gaming companies over the long term >> i'm curious, doug, what luces out. if people are going to -- even if they're new users stick with gaming after the economy reopens, where do you think that time comes from? is it time spent with your loved ones who is the loser in this >> i think it's a mixture. what we've been paying attention to is the attention to economy there is this battle going on for our attention and all the companies, netflix, facebook, instagram, youtube, they're all really competing for our leisure

time it is the same time in gaming falls into that same category. i think that the companies that are able to deliver the richest experiences to consumers, whether they are video based experienceors whether the gaming based experiences, i think those are the companies that win and i do think that gaming has an advantage because inparentally you're a character in the game instead of just a passive watcher like in a netflix series >> last question on epic which is rumored or reported to have a potential valuation of $17 billion at this point. does that make the gaming stocks look cheap or vice versa >> i think it makes the gaming stocks look cheap in the context of this overall sort of sass multiple revision. a big part of epic's business is actually a software business which is unreal ended. it is a game development platform so they are being valued not only as a gaming company but as a software company and i think that's just an indication of the trend of the future for the

industry as a whole. >> all right doug, thank you so much for joining us doug clinton of luke ventures. on that note i've been thinking about kroger. take a look at the chart one of the worst performers in the s&p 500. 19% comps, sales of 92%. i mean the stock was basically flat on the year going into this it's not like it was an outperformer they can't get any love. >> yeah. and, i mean, it's amazing. people are cooking more. right? you're cooking more. i'm cooking more doing things at home >> at least you know how to cook >> you're learning you're coming along, kelly you are coming along we'll let our viewers know i keep thinking about the movies and our interview with the ceo of cinemark, you have to wonder in the pandemic world, you know, what percentage of that 50% is actually going to go are they operating on 30% capacity is that going to make sense for them >> i thought the point about concessions was so good. i mean this is a big profit

driver for them. you can give people back in the seats but that -- i don't know what happens to that profit engine >> popcorn, margins north of 50%, 60%, 70%? soft drinks? >> yeah. >> we'll stream it home and you can tell me about it >> exactly >> see you later >> thanks for watching "power lunch. "closing bell" starts right now. >> thank you, kelly and melissa. welcome, everyone, to "closing bell." i'm sara eisen here with wilfred frost. will stocks struggling after recovering from early losses with the nasdaq and energy stocks outperforming let's look at what is driving the action one hour left of trade. the u.s. still seeing worrysome increases in the number of coronavirus cases. threatening the economic recovery despite that reopening plays like hotels and cruises are getting a jolt today that trade continues to stabilize along with big tech stocks and jobless claims disappoint another 1.5 million american