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 stan fran is considering a engine >> popcorn, margins north of new tax plan in an effort to 50%, 60%, 70%? help with covid-19 health care budget cuts. we have that story soft drinks? >> yeah. >> we'll stream it home and you >> hi there. can tell me about it in november san francisco voters >> exactly >> see you later will decide on the overpaid >> thanks for watching "power executive tax as it's been called lunch. the proposal would tax companies "closing bell" starts right now. >> thank you, kelly and melissa. that pay their highest earner at welcome, everyone, to "closing least 100 times more than the bell." i'm sara eisen here with wilfred median earner in san francisco frost. will stocks struggling after and earn more than $1.17 million recovering from early losses with the nasdaq and energy in gross receipts. stocks outperforming companies would pay at least .1% let's look at what is driving the action one hour left of trade. tax on the receipts. the u.s. still seeing worrysome it is a progressive tax, though. increases in the number of the tax is expected to bring in coronavirus cases. threatening the economic between 60 and $140 million to recovery despite that reopening plays like hotels and cruises are help with the city's health care getting a jolt today system which faces covid-19 that trade continues to stabilize along with big tech related cuts major banks, salesforce, gap, stocks and jobless claims disappoint another 1.5 million americans and cnbc comcast could face the

seeking benefits in a sign that economic pain of this pandemic is far from over tax according to an analysis but the chamber of commerce in 59 minutes left of trading in the day. the city says the tax could >> yeah, tiny leg lower. result in companies wanting to leave the city and, guys, it's down 0.4%. not just here in san francisco only two sectors, energy and but also in seattle. there's a proposal to tax big staples in the green still coming up, digital finance businesses to pay for covid-19 company sofi landing the number relief back to you. >> i mean, could -- it could eight spot on this year's disruptive 50 list encourage companies to leave the we'll spee with anthony noto worst case, of course, is something that is structured this way is it could encourage formerly of twitter, goldman sachs, and the nfl about his companies companies to company's efforts to take on the get rid of some of the lower big banks. we're looking forward to that paid workers one. first of all, let's focus on the big stories that we're watching to day mike santoli is tracking the market phil lebeau has more on delta some of those multiples of and steve liesman is focusing executives look pretty unattractive only asking for a 0.1% surcharge ton d on today's jobless market. >> the quieter days of the last for a brief period of time few months and so far into the sounds a little bit more last hour. did have a immediate drop in the sensible and unlikely to push morning. picked up. companies to leave or take struggled around the flat line the here is a one year of the s&p 500. now in general, this whole drastic action >> yeah.

setup, the strength and breadth that is true and persistence of that rally there has been like a swell keeps saying, that bought the benefit of the doubt for the given that you see city budgets bulls for a while. at least if you're looking out and state budgets hurting and several months but this right here last week, getting under pressure from the maybe it started off a payback irs and pandemic relief. period what is interesting is some of the levels we keep talking about that's why you see the were sort of topped out where we initiative in seattle, the state did in that failed rally in legislature here in california march. you know what? this goes back to about are considering a head tax, november mid november is the first time which has also been very controversial. it's hard to know exactly what in history we ever got to a that balance is, but there's no little over 3100 on the s&p 500. doubt there is a push on those you only were above this for a few months now yesterday, you know, sara asked about the earnings executive salaries which are so picture, the forecast, how they're setting up high when you see so many take a look at this chart of the americans filing for s&p 500 against the 12-month forward earnings forecast for the s&p 500. now in typical fashion, stocks unemployment in orange here, bottomed right >> cue the threats to leave before earnings day. california and go to texas earnings right around here stopped going down up next, the push for so this is may that is the market still rally equality a new study pointing to one key there. so it's curled up slowly you can quibble with exactly the method promoted to help hiring magnitude of the stock market for people of color and for rebound relative to this almost women. minimal upturn in forward

earnings revisions with exceptional offers you had stocks that are only on exceptional vehicles. get zero percent financing down at about that angle and make no payments for up to 90 days you have earnings down at this on all 2020 lexus models. angle. by the way, last year, earnings experience amazing at your lexus dealer. 2019 a little over 160 a share. that's up here the covid-19 pandemic so that shows you the gulf is creating food insecurity between what we did last year on a scale not seen in decades. and what might happen over the next 12 months it does remain the relationship an estimated 54 million americans that stocks will run ahead and will struggle with hunger. ♪ get more expensive on paper as earnings come back by the way, if this does with 200 food banks and 60,000 meal programs, accelerate higher, if you go out a couple quarters, it will tend feeding america is the largest hunger-relief organization to support the idea that the more cyclical and value areas in the country. can do better. i have to say, that very vaulted join morgan stanley in supporting feeding america rotation in that direction has and your local community food bank. been pretty fit fall ♪ it's not been an enduring trend. today you have software winning once again >> mike, pretty detailed drawing there. thank you. mike santoli as always, thank you. delta revealing details about the impact that the coronavirus had on employees we have that sad story >> this comes from delta's virtual annual meeting which was

held this morning. one investors asked the question, well, what is the impact of covid-19 and that's when the ceo ed bastian revealed the airline has had about 500 employees who have can i find an investment firm contracted the coronavirus with a truly long-term view there is not a definitive that's been through multiple market cycles number roughly 500 employees. for over 85 years? of those, 10 have passed away after getting covid-19 with capital group, i can. now delta did not get into details in terms of what types talk to your financial professional or consultant for investment risks and information. of jobs those employees had, when did they contract it? et cetera. all they're saying is those are the numbers at this point. remember, delta has made great efforts like all airlines to not only disinfect planes but promote cleanliness and a global cleanliness division jetblue had eight covid-19 talk to your financial professional or consultant you say that customers maklet's talk data.s. cases. only xfinity mobile lets you switch up jetblue announcing today it is your wireless data whenever. i accept! adding 30 routes to meet higher demand 5g - everybody's talking about it. how do i get it? take a look at the airline everyone gets 5g with our new data options stocks today a choppy day this is what we've seen from the at no extra cost. that's good. airlines for the last week next item - corner offices for everyone. up, down, not really moving a just have to make more corners in this building. chad? ton aside from staying in the range that they've been at for your wireless your rules. only with xfinity mobile.

the last week or so. now that's simple easy awesome. >> phil, we were wondering -- switch and save up to $400 a year on your wireless bill. plus get $200 off a new samsung galaxy s20 ultra. sorry. we were just wonld whaedering w percentage of the total employees and how it matched up with the broader population whether it is egregious when it came to the covid-19 cases >> delta has 93,000 employees. if you take 500 as a percentage of 93,000, it's roughly in lin that's we've seen as states have been doing testing we don't know how many employees have been tested at delta. it is making it available for all employees. but they have not told us what number of employees have actually tested. they're only saying 500 positive cases. >> got it. phil lebeau, thank you let's get to the economy now. the latest read on the state of companies that are looking the labor market in america. to increase their racial steve leiesman has details for diversity may want to look at us they still look ugly, steve. bans on asking job applicants >> yeah. you said it best at the top. about their salary history you said jobless claims a few states like new york already have legislation like

disappointed there were hopes for a steady this which bars companies from improvement in the still lousy asking about your previous number the we just didn't get it today. compensation according to new research from if you look at the data, boston university, people switching in jobs in states with 1.5 million americans filed new jobless claims for the week these wbans in place saw averag ending june 13th that's against a forecast of 1.3 million. you can see it barely changed pay increases of 5% more than states without the bans. from the prior week. you know, the market is okay the two groups that benefitted with the number being lousy as long as it's moving in the right most, african-americans and direction at a decent pace women, who saw increases in pay continuing claims also pretty much unchanged, $20.5 million. of 13% unemployment rates, percentage of all employees are eligible. th hi here's an actionable way for 14.1 merz. companies to change their practices to avoid the sort of th pay gaps that may not be 14.1% that is a record bank of the west right slack in explicit it's great to hear companies and the u.s. labor market will not ceos at the top say we need to disappear any time soon. start listening. we need to do a deeper dive just one other look at the pace of change. inside our organization. you can see if i go back to mid we stand with the black community. april, we've been declining the we want to end the inequality terrible numbers, six million, but it's another to put in five million, four million, it's practices like that where you been declining 15% per week. we only got 4% on that week. midnig might not have overt racism in

so, guys, it's really an the hiring process interesting question for the but a simple thing like asking market right here which is that your salary previously could the market's been okay with the lead to big pay discrepancies. numbers being lousy as long as they're moving in the right direction at a decent pace question now is does the market start to turn and start thinking >> when you negotiate, you want about not just that there is to talk a big game but not have change but that the pace of to back it up always change and how quickly things it helps on that front. are getting better >> that's the whole point. >> steve, to that particular it gives you an edge in your conclusion, should the market actually be questioning more negotiation for sure everyone should have an equal whether the change that we all opportunity to. >> absolutely agree. saw the last month on payroll >> still ahead, apple in the and all pleasantly surprised by middle of a battle with a key and the direction had changed already, should we be developer just days before its questioning that as well annual conference. could that reverse course again marco...! polo! marco...! polo! marco...! polo! marco...! next month >> you know, wilf, i like when polo! marco...! polo! sì? marco...! polo! scusa? marco...! things line up i like when this piece of data is good and that piece of data polo! ma io sono marco polo, ma playing "marco polo" with marco polo? is in the same area as good and that's good. so it's all telling the same surprising. ragazzini, io sono marco polo. storey and you're right in this particularly historic sì, sono qui what's not surprising? time, we've never measured a geico helping you save even more on car shutdown before. we never measured a reopening. and motorcycle insurance. ahhh... polo. marco...! polo! the data can be all over the

place. i was hoping that this jobless now get an extra 15% credit claims data would confirm the when you switch before october 7th. strong data that we got in the payroll report that you mentioned. the it does not do that. and i think what you're saying ♪ here is that market should be listening to what j. powell is saying which is embrace more of ♪ the uncertainty of the outlook. ♪ >> i love that you managed to quote bank of the west there i thought we call them bnp ever something's gone mogotten into the office.m, i hear you. paribo now >> i think that's what the reports say to us still. feels like there's no barriers between departments now. am i wrong about that? >> i didn't know that the brokerage operated under that brand name still do you think everyone appreciates it? anyway, this is a niche banking i do. point which i know we're out of huh... forgot my glasses. time on. steve, thank you >> lisa will love this discussion >> our producer. >> all right meantime, mcdonald's announcing serivcenow. the smarter way to workflow. some positive news on the jobs front. kate rogers with details >> hi, sara. they announced the restaurants for as little as $5, anticipate hiring 260,000 now anyone can own companies in the s&p 500, workers this summer as the dining rooms begin to reopen even if their shares cost more.

the company added that 50 at $5 a slice, you could own ten companies for $50 processes have been put in place to keep diners safe. earlier this week the company instead of paying thousands. said 1,000 u.s. dining rooms have reopened. all commission free online. mcdonald's though not the only schwab stock slices: an easy way to start investing restaurant that is hiring. we heard from papa johns, or to give the gift of stock ownership. dominos and subway today hiring tens of thousands of workers as schwab. consumer preferences shift own your tomorrow. during the pandemic. that being said, the restaurant industry at large is very schwab. thats where i feel normal.s an hour, negatively impacted in recent having an annuity tells me my retirement is protected. months in fact, the national restaurant protected lifetime income from an annuity can help your association projects eight million employees have been retirement plan ride out turbulent times. furloughed or laid off with $120 learn more at protectedincome.org. billion lost from march through may. back to you. >> thank you for that. after this break, identifying future covid-19 hot spots. we'll speak with the ceo of a company that is working to create an early warning system through the network of smart thermometers you're watching "closing bell" on cnbc. ♪ . apple finding itself in the middle of a fight with a key

developer in its app store josh with the details. >> we got some news from apple the company clearly digging in saying the e-mail app does not comply with apple guidelines ♪ david hanson, very well-known developer. apple is not threatening to remove his app from the store unless he uses apple's own ♪ payment service. hanson saying that's unfair. >> apple shows up and says unless you give us 30% we're going to bust your kneecaps and burn down your store come on, apple you don't need to do this. you're a $1.5 trillion company you don't need to shake down small makers >> it's not just hansson brad smith weighing in the time has come for a much more focused conversation about the nature of those stores

apple takes a 30% cut of in-app purchases. cuts to 15% after a year ever something's gone mogotten into the office.m, i hear you. >> thanks so much for that thanks, everyone, for watching feels like there's no barriers between departments now. "closing bell" today we are out of time servicenow. the smarter way to workflow. "fast money" picks up now. ♪ "fast money" starts right now. tesla gaining speed. plus, we're talking with the ceo of ripple. we' later deal drama in the mega mall merger that may have just

gone bust. we start off with the fast track on the data. 100 million reasons why the stock market may not be telling the true story about this economy. americans skipping payments ofmo welcome back 48 minutes left of the second. the here is a check in on the markets. across the screen now, the

session on the dow is down 271 points down 170 as we stand nonetheless, no green for any of the major indices. the dow is lag argard let's check in biogen taking a hit. this is a u.s. district court ruled against the company over a multiple sclerosis drug. meantime, shares of mylan moved higher on the news biogen down 7.5% dish will close the purchase of the boost mobile from t-mobile by july 1st. the sale of boost was the first part of the merger between t-mobile and sprint to gain approval it's up about 4.4% today is dish across the country, we are seeing covid-19 cases rising in certain areas as the u.s. continues the reopening plan scottsdale and phoenix, arizona,

austin and san antonio, texas, and tampa and rlando, florida, continue to have some of the fastest case doubling rates across metro areas n. this country. the seven day moving averages for all three states continue to creep up kinsa is a smart they are thomttho thermometer company. here is a chart out of florida, for instance that shows the spike in fevers rising in early june and today we're seeing that come to pass florida's growing covid-19 caseload joining us now to zis where the next hot spots could emerge as the founder and ceo joins us a lot to talk b thank you for joining us where do you see this spreading next >> i'm concerned about four states right now, i'm concerned about oklahoma, missouri, louisiana, and maine we've seen higher than expected trans mission levels the illness is spreading in a local area we've been seeing higher than expected transmission levels in

those four states. >> so tell us exactly how the analysis works and how you track it >> so we make these. these are smart thermometers they connect into an app that provides guidance to an individual on where and when and how to get care. and how to respond to your illness. and we now have about a million and a half of those across the country. so we get to see aggregated information on where and when symptoms, fever and other symptoms are starting to spread. because fever is an early indicator of covid-19 and many infectious illnesses, we get to see that before the health care system sees it we talk to people in the home before they ever enter the health care system we're also able to see how fast that is spreading in a particular geography or household. that is highly predictive of how fast an illness is going to spread in the broader community w that information of where and when it's starting, it gives us an advantage to see what covid-19 outbreaks are going to

occur. >> how affected do you think it is for companies as they're bringing back workers to have temperature checks, doctor's offices to have temperature checks obviously, as you're pointing out, it's great indication catch a few cases, isolate them. but on the other, it doesn't pick up presymptomatic it doesn't pick up asymptomatic. so, you know, there are questions about whether it's a false sense of comfort >> yeah. and there's two different kinds of temperature monitoring we're talking about. one is the lobby the high through put temperature screening in the lobby people are showing that is not very effective in and of itself, it's not effective by itself. it could be effective with over tools. it's hard to get a good temperature reading in the screening and because by the time someone gets in the lobby sh it's too late they already spread the illness. so what we're trying to do is create an early warning system not only for, you know, states and our health care system but also for employers where you can see illness spreading in your community of

employees and households and all aggregated, all anonymous. no one's information is -- no one's personal information is of concern. but you get to see there is an outbreak in your community and that kind of early warning system is something that we never had in this country. something the world's never had. so, you know, how do you stop an outbreak before it becomes an epidemic if you don't know where and when it's starting the answer is you don't. we need to be using 21st century technology like kinsa's to contain an outbreak when it's small before it spreads. that is the point of a system in network like ours. >> on that note, how optimistic are you that long term we will learn from this pandemic in particular be ready to catch the next one earlier on this show we always talk about trying to predict the next stock market down turn and how hard that is because it will be a different trigger next time around does that apply to this or can we learn from our mistakes and never have to experience the

type of scenario we have over last couple of months again? >> you know, i'm glad you asked that i hope this just goes away and that it prepares us for the next one right? the united states has been spared largely over the last 20 years from significant epidemics and pandemics. we were not affected by 2003 sars nor 2009 swine flu. you know, nor zika and now we're talking about covid-19 other countries were they were a little more prepared so my hope is that all goes away and gives us a reprieve so that next time we can stand the systems up and next time we're ready. that's my hope >> just want to bring in some breaking news that is related to the conversation it comes from california california is now mandating people must wear masks indoors the order comes from governor newsome. he says californians are just -- we're seeing too many examples of them not wearing masks and so now the order states that if you're inside, in line to enter

any indoor public space, if if you are obtaining services from the health care sector and settings including to but not limited to a hospital, pharmacy, laboratory, physician or dental office, you have to wear a mask. has your data shown anything about the effectiveness of masks and the pervasiveness of people using them >> we're still look ting at the data this is a natural experiment that a scientist would look at the locations where there are masks are we seeing as rapid increases in illness accounts? again, the place that's we're currently concerned about are oklahoma, missouri, louisiana, and maine. but i will get back to you with more research on that particular question the i will tell you that i believe that's going to be true. you're just going to see less transmission in those areas where large percentage of the population has masks it's intuitive and makes sense >> i know you were founded in 2012 and have always been folk

y -- focused on infectious diseases how early were you shouting warning signs in january or february that weren't being listened to by the governor? was some of this preventable or even you totally focus on this for many years would you have missed a large amount of what has happened? >> we saw an early march that there was spread of illness. there was a typical illness spreading in the country unusual levels of fever you would not expect from cold and flu season we saw it. we were trying to shout from the roof tops. you know, there was a study by colombia researchers that said -- >> but that was in early march >> we did not -- so to be clear, we started looking for covid-19 specifically as unusual illness clusters in early march. we were not even thinking about covid-19 in that -- the february time frame in terms of it coming to the united states because of

the case counts in the world we really started looking that are there unusual fever levels in early march we saw them. the first analysis we did, it lit up it was a black swan event. we saw the map light up with unusual levels of fever, again, you wouldn't expect from cold and flu season in many parts of the country. i remember getting on a phone call in march 14th with a former fda director, dean of a public health school and one of our very senior advisors from new york and i showed them the data. and they said this is concerning, however, i don't know if it's credible. because we didn't see cases compiling. will lo and behold, we saw the cases in new york and florida and texas start to accumulate. it is clear that we were picking up covid-19 spread that's when we started shouting from the roof tops and, you know, frankly, it can't just be a research project this early warning system that data needs to be used. it needs to be used.

>> thank you so much for joining us that was even only mid march how hard this has been to handle for even the best informed we've got a news alert on hertz. >> the now bankrupt hertz, the car rental giant, the shares have been halted since 12:47 p.m. eastern time. we have that news on the record. hertz will -- after suspending the plapd share sale to help finance it through some of the troubles times, it is now going to completely ditch the share sale we got earlier headlines from dow jones saying they were going to look for financing. but that news is now out the shares are halted at $1.91 per share in the noon hour they have not resumed trading yet. we'll let you know when it does happen that's the reason why. they have gone on the record saying there is no more share sale they'll likely seek bankruptcy financing in this era. over to you. still ahead, the kardashian

effect making the presence known once again today details on the new deal that sent spotify soaring to record highs. we'll speak to anthony noto from sofi about how digital banking is challenging the traditional wall street heavy weights. that's all coming up when the world gets complicated, 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.

♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey

we're launching a new series called "america at home. it is focusing on how life and consumer trends changed during the pandemic home improvement stocks have been one big beneficiary with names like rh, william and sonoma and home depot up double digits diana olick has a closer look at the remodelling trend and trade. diana? >> yeah, sarah the four out of five homeowners are considering changes to the homes and most plan to do it after the pandemic that according to a survey now as we cook at home more,

kitchen remodels top the wish list and outdoor spaces. home office has moved quickly to the top of the list for buyers >> home is now where the home office is. but not everyone has the space or the money for an addition and that is benefiting companies offering this alternative. the backyard tiny house. >> it's staggering our sales are -- they're really through the roof and a lot of people just needing that home office space has been very popular >> sales at colorado based studio shed doubled in april and equal group willed in may. people are using the most popular 240 square foot model for school rooms, home gyms and, of course, home offices. >> i started to really just kind of psychologicallywant an office not in the guest room but outside of the house even if it's ten feet away >> with a daughter doing school online now and possibly in the

fall, andrew and his fiancee looked into an addition. >> it just wasn't the financial responsibility we wanted to take on even before the covid-19 became so pronounced. >> now while home remodelling slowed in april, projects are starting up again no you and diy projects are bigger than ever. researchers at harvard's joint center for housing say exterior work like roofing, windows and siding have held up during the pandemic and there will be big pent up demand as lockdowns are lifted sara >> just a question on inventory. and just supply chain. were there any hick ups or delays getting these products that people were ordering online to their homes, to spruce it up? i ordered a piece of furniture, i'm still waiting for it that was two months ago. >> interesting building materials could be a problem. i was actually talking to my contractor yesterday because i'm thinking about doing a little something, putting up more doors

in my house. and he said that some of the suppliers in our area are only delivering some of the wood products to contractors not directly to homeowners because they simply don't have enough supply on hand the demand is that high. >> diana, great stuff. thank you very much. diana olick. have a look at what is driving the action parts of the u.s. increases in the number of new coronavirus cases threatening the economic recovery. despite that, some reopening like hotels and cruises are getting a jolt today trade stabilizing a long with big tech stocks. and jobless claims disappointing. another 1.5 million americans seeking benefits showing that the pandemic pain is far from over we've got 31 minutes left of the session. we are lower for all three major indices. time now to get a cnbc update with sue herrera. >> hello here's what's happening at this hour california now requiring masks to be worn in most indoor public

spaces as well as outdoor spaces when social distancing isn't possible new infections are surging in that state with a record 4,000 confirmed cases just since yesterday. three out of four americans say the country is going in the wrong direction. this according to a new poll from the associated press. it is a sharp intrees krooes fr increase from a month ago. 37% of americans approve of president trump's handling of the pandemic that is down 7% in a month in atlanta, devin brosnin, one of the two officers charged in the death of rayshard brooks has been released. he made bail his lawyer says he will not testify as a state witness contradicting what the district attorney said yesterday. however, he told msnbc he will cooperate with authorities you're up to date. that is the news update this hour sara, back to you. >> sue, thank you. just want to look at shares

of hertz right now resumed trading was halted we did get the official word from hertz that they are cancelling that $500 million in in the share offering that they were going to do this has been controversial since the beginning. a bankrupt company offering stock that was potentially worthless. of course, for a company in bankruptcy ultimately go to pay the bond holders. the sec reviewed it. the chairman joined us yesterday saying -- expressing a bit of dissatisfaction saying with it the they had complaint hertz pulled plans to do that in bankruptcy that secondary offering. the stock is lower by 8% >> it is the rest of the market is lower as well. just slightly. the dow is down 0.6%, s&p 500 down 0.3%, nasdaq a couple basis points, energy the best performing sector is up by 0.7%. still ahead, we'll have a word from home trend last be on the up

pandemic cost and benefits of the transition to remote employment. bonds are all over the place ten year, 0.7% we're back in a couple minutes ♪ [shouting] [clapping and shouting] [cymbals clanging] [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. ♪

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we have results on carnival. >> carnival posted a record 4.4 there are billion quarterly loss and it didn't provide any guidance on whether sailings

will resume in argue a spokesperson saying we don't know when we'll be able to sail at this point. and it comes after norwegian cruise lines suspended sailings through september. it sheds light on the lack of progress that cruise lines have been able to make in their discussions with the cdc in the meantime, the cruise lines are burning cash carnival says they're looking at ways to raise capital including the sale of sixth shift. the cruise lines are so tied to getting that green light from the cdc. sarah. >> thank you airline stocks, they have seen a significant rise off the march lows one analyst says there is still room to climb. he's going to join us to explain why next first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip,

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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 airlines seeing a dip. delta putting out a cautiously opt many hi optimistic summer forecast they do expect the domestic capacity in august to be down between 55% and 60% from the normal levels. jetblue, by the way, announcing they'll operate more than half of the usual summer capacity as well as add 30 new domestic routes between july and october despite today's dip, airline stocks have seen impressive rise from the bottom. our next guest says there could be more upside ahead joining us for more, dan mckenzie dan, good to have you join us. thanks for joining i've been looking through your recent initiations you have buys across the board >> yeah. thank you for having me. a couple thoughts here so i am cautious near term because until -- the industry is going to need a medical solution

you know, for the industry to call back profitability. as i look out six to 12 months and, you know, i made logical assumptions, you know, one of those, of course, is that we do get a vaccine approved by the government, you know, some time this fall. if i look out at fleet schedules, what i'm seeing is an industry that is resizing smaller to less aggregate demand and so that's -- it's really supply that capacity that drives pricing aswe get to a smaller industry we get to a more opt mall supply demand die am nallic, then the industry is really in a position to start generating profits, start generating free cash flow and, of course, that's what is going to drive the stock >> what about the balance sheet? are you not concerned that they issued new stocks? it's going to have a damaging effect are investors not going to be concerned about that >> so that is the criticism of the balance sheet today. the race is on to restore returns and it's exactly for that reason.

and so the airline industry has always historically been lefvere but it's not a degree of leverage that they experienced in it prior down turns, you know, prior to filing for chapter 11 or before going to severe financial distress. and so the real key is going to be how quickly and the debate is going to be how quickly the industry can repair the dalanba sheets f i that i a look at united, for example, forecast 3.5 million in free cash next year that is roughly $10 a share in free cash flow so you think about valuation, you know, you put some kind of multiple on that and, you know, if i -- let me just stop there. go head, redirect me >> well, you were going to a good part, daniel. final question for me is really whether you want to see cost cutting, not specifically layoffs, but whether you want to see more cost cutting announced than is currently forecast or

not? will you want to see reinvestment again >> yeah. that's really the unknown question is exactly how much cost industry is going to be able to cut in the fourth quarter? and, you know, once we can get some resolution around that, then we can get some better clarity around exactly, you know, the degree of profitability. you never like to see people loseer hand, you know, the industry does have to resize to less aggregate demand and that's going to be an important factor in the fourth quarter. and, you know, what the magnitude of that is, we don't know that's one thing we hope we can find out in the upcoming second quarter earnings calls >> daniel mckenzie, thank you for joining us >> thank you >> still ahead, spotify surging to a record high hohn the back of a new kardashian teamup and krog krog kroger gives clues into the minds of the american consumer.

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16 minutes left in the trading day. we're in "market zone. commercial free action going into the close we break down the crucial moments of the trading day today we have stephanie link with us as well. let's kick things off with the broader market lower but off the lows for sure. improving a little bit in the last 50 minutes or so. s&p 500 is down .2%. and the dow is down about .5%. yesterday investor and gmo co-founder warned of a bubble in the market >> even in the three or four weeks since i was writing about how low confidence i had compared to the other bubbles, my confidence is rising quite rapidly that this is in fact becoming the fourth real mccoy bubble of my investment career the great bubbles can go on a

long time. and they can inflict a lot of pain at least we know now we're in e chutzpah involved in having a bubble at a time of massive economic and financial uncertainty is substantial >> we discussed this yesterday as well. certainly got a lot of coverage. mike, clearly it was pretty convincing when you listen to the whole interview yesterday. on the flip side, talking to a number of people in the investment community on this, it's different for someone who can sit on the sideline, not just for a couple weeks potentially but for a couple of years. and know that their career is not over if they miss out on the next year or two of performance as markets -- as markets goes higher a lot of people though, maybe the earlier in their career or tightly benchmarked don't have that luxury. >> for sure. also, i don't know that it is utterly clear this is a bubble one attribute of a bubble is a new era thinking, this idea that

there really are no rules that used to apply to investments and the sky is the limit for asset values and the crowd is getting rich and they're going to keep getting rich i he don't think that's at all the mood of investors in the majority of financial assets it's almost as if it's a grudging ownership of equities right now, for example just based on what else is going on in the world and the financial markets. and, you know, again, when investment grade bond yields are 2.5% and the best companies in the world are trading at, you know, 30, 35 times forward earnings, that's not the same kind of bubble that i remember from 20 something years ago. >> good point. i know you're not in the bubble camp in the fundamental earnings but do you get nervous when we see a market that is 42% off the lows that's up for the year if you look at the nasdaq and not too far from being flat for the year for the s&p 500 in the face of a

big economic crisis? does it make you think and then you hear warnings from the likes of jeremy who had good calls in the past about bubbles. does it worry you? is. >> of course it worries me i do think that there are parts of the markets that are stretched for sure but i would also argue, let's put the liquidity argument on the back burner for the time being. that's why we did rally up 40% let's put that aside for a second let's focus on fundamentals. >> did johnson & johnson deserve to go to $110? did coca-cola deserve to go from $60 to $32 et cetera, et cetera, et cetera? why i bring up these kinds of names is they all have something very much in common. they have very -- they're high quality companies, strong balance sheets, dividends or dividend growth in their strategies and the dividends are well covered. very good free cash positions.

good market share. so i am focusing on fu fundamentals i don't think they should have fallen as much as they did and i'm glad they recovered. some are not back to where they were i think there is pockets of value in the market. we talk about this all the time, a barbell of the growth names, the little few defensive names but also some of the cyclicals i can list a mile long a lot of companies that are still offer a lot of value from here >> are those three ones you're buying here at these levels? coca-cola, j & j, what else did you say? united health? >> yeah. i like them. i like united health, union pacific, cisco i like a lot of names. and i like a lot, as i say, i like a lot of the quality technology names especially kind of in cloud and in ai and in security so, you know, i own microsoft and google and facebook and those names as well. those have recovered nicely. the others haven't yet

i'm astounded by the fact that coke is still wear wr here it i after what they've been doing to improve their business that's the one i'm more aggressive on as of late. >> half the business is from restaurants. that's holding it back moving on to the santa fee he doesn't think they'll have a coronavirus vaccine until next april at the earlier meg terrell with the details meg? >> hey the ceo paul hudson telling the french publication they may not have their vaccine ready until april, may, june of 2021 they have a high probability of s success. they already employed this technology in a flu vaccine in the united states. he told us while they're behind, they do think that they have a pretty high chance of it working. others partnered with oxford and

they think they can have the vaccines ready on october on an emergency use authorization time frame in the united states they plan to invest $600 million euros in building new vaccine development and research senters in france saying that they hope to contribute to responding to future pandemic risks. reminding us while this is disrupting the entire world this is likely not to be the last one we face. back to you. >> all right meg, thank you mike, obviously, the va beiccin time line is so important. it affects the societal outlook. where is the market in terms of expectations of when >> i don't know if it has a very specific sense of exactly when but there is definitely a backdrop of there is so much firepower in interlellectual and financial being thrown at this

so sooner rather than later. i think what is fascinating is, you know, we talked about vaccines as a category, they have not exactly been the kind of booming business for this industry so what you're seeing is pharmaceutical and biotech companies investing massively in this area. they may or may not be a great annuity business down the road and that might be an issue for them for man kind, it's a great thing. >> yeah. i guess they're betting that the good will and the society changes of impact that they can have would outweigh the profits which is a good thing. shares of kroger, want to hit. that under pressure today despite reporting a q-1 beat on top and bottom lines the grocery chain declining to give any forward guidance though citing uncertainty they did beat estimates for same-store sales they were up a record 19%. it was better than expected, guys it was -- the best we've seen out of kroger in a long time they're used to comping around 1% to 2% not in a pandemic period lately, digital sales rising

more than 90%. and the stock down 4.3%. why? well, digitsal is still not a huge portion of kroger's business they've been investing but there are long term questions about where kroger is going to fit in the competition among walmart and amazon the two top grocery competitors on the race to digital and e- commerce there's that then there is the question of how long they can keep the double digit sales going mike, on the call this morning, rodney mcmullan did say they're seeing double digits growth continuing in the quarter. they expect behavior to shift now that people are used to cooking at home and staying at home and making food at home but the street doesn't seem really convinced i will note the stock has outperformed if you look over the last 12 months, the second best consumer staple stock next to clorox. still up over 30%. analysts say it still looks cheap given the longer term questions about the story here >> it's definitely not a question of the valuation itself

being stretched based on what is now being forecast for the next few quarters it is still though, i think it shows you very low conviction in a long term story for the business because it just seems as if, you know this is basically as good as it's going to get in terms of the environment. there is probably just better ideas for people elsewhere >> to the point about having, you know, outperformed coming into this last thursday when he with had that big gut check, kroger is the only symptom that closed higher which speaks to the more defensive nature during this crazy roller coaster ride an within the staple space, is this a pick for you or do you have a bigger preference >> no. i mean, i never really owned kroger sorry. i'm not going to mention costco. but, no, i think the problem with kroger is even if the sales are really good, they still have to invest heavily, heavily as you mentioned, sara, digit

sal nowhere. that means you don't get a lot of operating leverage. en that is kind of as good as it's going to get to your point. 19% same-store sales but they did a 30 comp in march. and now they're doing like maybe double digit, low double digit it's the best you're going to see in this quarter. now where do you go? yeah, it's trading at a 25% discount to the s&p 500, but i think because of the heavy investment spends they have to do, it's going to hold the stock back i do like target a lot the stock is down 8% on the year when i was buying it was trading 15 times forward it's now 21 times forward. i still like what they're doing. i think they're miles ahead in terms of investment on digital, experience, and when that make shift comes back and people buy clothing and apparel and accessories this company is going to come back too >> we're improving by the way as we approach the close. s&p 500 briefly went positive. now fractionally in the red again. the dow is only down 0.3% with

5 1/2 minutes left in the session. spotify, the stock hits an intraday all time high julia has the details. >> well, the shares soaring nearly 13% after they announced a partnership with d.c. comics and warner brothers to produce and zrblt a new slate of scripted podcasts about the d.c. comics universe including, of course, super man, wonder woman and batman this comes after kim kardashian west signed an exclusive podcast deal with the streamer this was first reported by "the wall street journal. kardashian-west joining other podcasters at spotify including joe rogan and the ringer spotify shares are now 50% year to date. guys, back to you. >> on the podcast front, are they exclusive only or are they still have a library of podcasts which are not exclusive to them but clearly shifting the position and strategy on that front? >> for warner brothers and d.c.

comics, these will be the first narrative new original podcasts. they will be created for distribution exclusively through spotify. i think it's really interesting. we look at the subscriber base of something like disney plus. there is also a marvel app you see warner brothers placing a big bet on that partnership. >> julia, thank you. mike, to me, it is such a -- such good timing here for this kind of deal for kim kardashian to do a podcast about, you know, criminal justice reform where she is focused on and talked to president trump about where there is an intense focus now on racial injustice in this country. there is the female audience she brings, right, to podcasts how are investors looking at this they brought in big names. >> i think there is general approval of the idea that they're making itself a kind of a bundle of propriety content

and all of the content that they're going out and getting is very of the moment or it's got a great franchise and it's different. i still don't know if there is a lot of belief that they sorted out the long term profitability, the payback on a lot of this stuff. but the market certainly willing to allow them to figure that out as they go >> stephanie, do you have a view on spotify >> you know, i missed it totally and so upset about it. i think what they're doing is brilliant. the fourth quarter of 2018, the dmp said they were going to spend $400 million to $500 million on content they didn't have the content advantage wlach advantage. st what did they do? they've been adding content and quality con taenlt the rogan experience is the number two podcast out there that to me might be bigger than the news today this is wonderful momentum for the company. they're going to drive and they use. they're going to drive gross margins. the higher premium subscription

revenue. i'm sorry i missed this one. i can't believe i did. they're doing all the rig things for sure. >> this is a different strategy to the music strategy which is based on having the best algorithm to give you suggestions. the music wasn't exclusive to them it was just the best tech to enable you to listen to it the podcast strategy seems to be focusing on a different area either way, stock is up so it doesn't really matter. >> also, nobody's allowed to compare joe rogan to kim kardashian certainly if you look at the fwiter followers and the stain gram followers i get your point, stephanie. two minutes left in the trading day. mike, what are you seeing in the internals? >> it's mixed. to the negative side, i would say. it's been kind of dragging all day. you see 1.5% or there down side volume to upside volume. and it has been a little bit defensive. the familiar growth sectors have been holding things together for a couple days. here's software versus banks

the s&p 500 banks. take a look at the volatility index. remains elevated relative to where the market has gone. it's no the sending a nasty warning signal its down again into the low 30s. there is a bid for volatility. it seems as if it may stay this way as we have known catalysts coming up into the summer. it's not really telling a nasty storey but it is also not kind of ratifying the rally altogether >> mike, thank you we have 50 seconds left of the session. the nasdaq leads the charge. up 0.3%. s&p 500 is just positive as we stand. the dow is down only 40 points it was down 270 at the lows. you can see quite a nice rally in that final hour of trade taking two of the three major indices positive the dow down 10 basis points as we stand energy the best sector up 1.2%. consumer staples up .5%.

we have a dollar that is up a third of a percent or so the euro is soft so is the british pound. oil is higher by 3.4%. as the bell goes, a nice rally into the close s&p 500 is just positive dow is just negative nasdaq is up by .3%. >> just less than two points from the s&p 500 welcome back to "closing bell," everyone sara eisen with wilfred frost and mike santoli take a look at how we finished the day on wall street the dow ending lower by 39 points well off session lows. you can see that came just after the open we were positive at one point in the day though ending the day just barely negative call it flat same for the s&p 500 up less than two points. this is the fourth positive day in the last five and for the week so far, we're still up 2.3% for stocks

the nasdaq closing higher by .3% it outperformed pretty much all day long this is its ninth positive close in the last ten sessions so real resilience there in tech again, a major theme of the day. the russell 2000 index, also pretty much closing unchanged. also headed so far for the week up almost 3% an outperformer overall. we're going to ask anthony noto the ceo of sofi for his strategy on competing with the big banks. increasing the number of clients using its brokerage services also about that spike in retail trading activity we've been talking about. joining us to talk about the market though, first, we have our cnbc distributor stephanie link and shea buckner joins the conversation first, mike, to you. sort of the flat close that we got and what were some of the headlines and the sectors that took us there? >> yeah. it was not a day that was going to change anybody's mind if you were actually bullish or

bearish. there was enough in here to work both sides i think that idling for most of the day and holding together with some of the software and other growth sectors working, energy getting a little bounce it shows that you to me risk appetite indicators have wayned a little bit the market is holding o ton that pullback low monday morning. its no the clear it rebuilt a lot of the upside energy that it had. it is benign, side ways action at this point. i wouldn't say that it necessarily tilted its hand. i would say tomorrow is a expiration people are looking for maybe this 3100 level in the s&p 500 it will be a little graphtational pull in the very short term. >> shea, is this underrate in the equities at the moment >> we're overweight equities so we looked -- we took last week's pullback as an opportunity to add to the risk assets we're still constructive on the long term revenue growth, earnings power in our core holdings and a continuation of market

trends this week gives us continued opportunities. >> stephanie, what did you do today? were you making any moves? >> i was buying coke no i just want -- i bought a little bit of coke. i think the market took a breather today and this week and i think it's very healthy. you're up 40% from the low that's we talked about in the last segment the reality is you have liquidity and the reopening. and it's leading to two things better economic growth but also higher viruses and so you have this tug of war in the market that is going on right now. you have some days when we feel good about the growth and the recovery and the data points that we're seeing off of the very low base. the so that -- those kinds of days you see the cyclicals rally. then you see today which was like on a mixed side we were a little upset about the initial claims and the higher virus levels so you have more of a defensive feel to the market this is why you want to have a barbell. this is why you want to have combination of both of these sectors and groups

i will say this. i'm encouraged by the housing data here, the retail sales numbers, the manufacturing data as well. so we are in the definite position to see an accelerated growth in the third quarter versus the second quarter. next year it's even better than that >> we didn't get great data do day. also good point to the fact that europe closed quite comfortably low down best part 1%. >> it is a modest miss on the weekly unemployment claims they're still coming down off the highs. the i think there is a little slack given to the immediate weekly data at this point. we're not surprised to pull back more i do think that is why, you know, it takes when yields don't go up, when treasury yields have been stagnant as they were today, usually it means the kind of high liquidity, low growth parts of the market which are

those old growth sectors tend to be the ones that have to carry the load that's what happened >> shea, i know you usually focus on esg which is something we used to talk a lot about before this pandemic hit are you seeing the market differentiate among esg winners and losers in terms of that still being a priority for investors when the whole world has changed and the economic situation is just so different here >> absolutely. you look across the board, across the subsectors. you see that funds that had high exposure to positively rated stocks did fairly well there is some additional research done by morning star that actually looked at longer time periods so this is not something that is unique just the first quarter 2020 i think the investment indicate for high stocks continues to get stronger >> tesla today finished higher

after jeffries raised the price target a new high on the street tesla's gap with competitors is widening in it terms of product and battery technology as you can see, closing just above 1,000. up 1.2% today. stephanie, clearly this has been on a unbelievable run. this is not a classic multiple basis. >> you can't use pe. you have to use sales or pay there is a lot of other ways can you look at this on a valuation basis. but the main thing is look at the technology you either believe it is superior or you don't. you either believe that competition isn't going to be a threat or you don't. and so if you believe in the secular growth of this company and the technology and the leadership which is, you know, questionable in my opinion, but, you know, if you believe in all

those things, you're going to buy in people buy into it and they just ignore the valuation you look at the total addressable market, many, many years out. and you can make up a case for it i have a problem with evaluation but i do think that, you know, they're not giving any guidance. they're not giving delivery guidance clearly the auto market production around the world is going to be down 2550% in the second quarter can you argue autos are storting starting to rebound. this is another one i missed unfortunately. >> how about that analyst call, mike jeffries puts $1200 per share says there is logic to the exuberance i mean, where do they get that valuation? >> you're at a valuation already. $200 billion enterprise value for tesla. you have to make fairly aggressive assumptions, i think. and not just about volumes on the vehicles in production but what it means down the road and there is all these up side case

that's we've heard about and it involves essentially it being kind of a software company and there is going to be virtual upgrades and it isn't really about selling cars in a, you know, $18 million annual rate north american market or anything like that it's a much bigger picture that's where you have to get very aggressive right here that's where we are and that tends to be the carrot that you put in front of a horse to keep it walking >> is there an esg case for tesla even if it's not quite the typical multiple that you might go for historically? >> yeah. absolutely it's a controversial name. we think that tesla's long term progress is good but the valuation does not leave room for much error given some of the high end competition that's coming through.

the battery suppliers and lithium suppliers and those that feed into the value chain can give you better opportunities at much more attractive valuations. >> all right robin hd experienci robinhood experiencing a major tr trading outage today kate, you have the highlights. >> sara, trading on robinhood was unavailable to some clients this morning as they saw outages in march, this was resolved within the trading day the platform is now back online. the glitch dz come just ahead of a pretaped interview with robinhood's co-ceo at the tech coverage he noted an increase in robinhood deposit that's were exactly 1200 or $2400 indicating that people were using government stimulus checks for stock trading. another factor driving interest, shelter in place

>> people are on lockdown. there is limited things that they can do in some cases they've been limited from leaving their homes. and so people are looking for, looking towards invefrtisting a the stock market specifically as something that makes sense to do in this current climate. >> the ceo saying clients are buying companies hit by the pandemic which he says shows optimism by traders that industries like airlines will will "bounce back fast eastern more aggressively than expected." guys >> mike, what was your reaction to hearing how the ceo of robinhood characterized the frenzy >> kind of applaud -- from the beginning of robinhood, the transparency and what they were after and they've never shyed away from the idea that a lot of the clients are just getting into this game and maybe on some level it's a little bit of a fun

aspect of it or a curiosity aspect it's no the just a sober stock away a little money for the long term type of thing we've always had a subculture of the stock market where it is people who are just kind of playing to win in the short term learning as they go. learning the hard way. and, you know, trading is a zero sum game not all are going to come out of this experience in a great way i do think that at this point, you know, they're clearly serving a need and they've become the brand for a whole category of style of trading right now. that is a valuable thing >> perhaps i didn't make myself clear, the u.s. certainly does

maintain a policy option under various conditions of a complete decoupling from china. thank you. of course, referring to him yesterday in committee defending the trump trade deal sounding upbeat on it despite, you know, some the comments we've gotten from president trump lately stephanie, this risk is still out there. president trump threatening a decoupling is it reflected anywhere in the market >> well, i actually don't -- i think it's on the back burner. i don't think anybody really believes that trump is going to be really aggressive given what's going on in the world, given what's going on here in the states, and especially ahead of the election maybe when you get closer to the election he can kind of pivot a little bit and get more aggressive so i think he has to stick to his knitting about getting the country back on track, getting

the virus strategies with various different companies really to escalate and i think we're making good progress there. he has to focus domestically here and then he can go elsewhere down the road. >> shea, final question to you just want to pivot to your main -- or one of your main areas of expertise in in esg investing. esg is not a label it's in fact finance 101 what do you mean by that >> yeah. we need the management and not doing ourselves any favors by cutting off the litany of acronyms and terms to describe what is an extension so we use it, the integration of environment environmental, social, and governmentance factors as a mosaic that help you to develop a more comprehensive view of the risks and opportunities that face companies we invest in.

so i think the mindset and the line of questioning should shift from why would you integrate to why wouldn't you integrate esg >> shea buckner and stephanie link, thank you for joining us good to have you here. disrupting the financial industry up next, we will ask sofi ceo anthony dono whether is driving the huge growth in the market.

sofi started out as a student loan finance company but expanded into mortgages, wealth management and now stock etf and crypto trading joining us now is sofi ceo who also spent time at twitter, nfl, and goldman sachs, anthony nodo. good to see you. >> good to see you as well, sara let's get up on the stock trading aspect of your business. we've been talking about it every day. the surge in retail trader we just heard from robinhood's ceo at a conference earlier today. how would you characterize what's going on and what you're seeing in your business there? >> thank you for having me first, i just want to say congratulations to our company and all of our members being in the top 10 of the disruptor list is quite an honor and a direct result of all their hard work and the trust our members have in us. to answer your specific question

as it relates to broke ran, we've seen really significant growth since the beginning of the year we've seen over 150% growth since january 1 in the number of sofi invest members. and their ability to buy stocks without commissions, etfs as well as robo and cryptocurrency. fractional shares have been a big driver of first time trades with first time trades being done in fractional charge with 40% of them. in addition to that, we have seen significant growth in assets under management. the we've really endeavored to help novice investors find investing more accessible. if you're going to achieve our mission of helping individuals achieve financial independence, investing is an absolute imperative and giving access to people through fractional shares or diversified etfs is a critical element of bringing out that desire >> you have a feeling that they are long time investing or do you fear in any way that they're trading or were still gambling and sufficiently educated about the risk of that if that's the

case >> we have an absolute responsibility to make sure our products are servable in the best interests of our members and help them invest for the long term. i'm proud to say that less than 1% of the funded accounts are in the platform have more than three dradz intrades in a day. we'relooking to push and notif them we see active trading at a significant level in terms of number of trades to help educate them you can have a appointment with a certified financial planner on the application. you can sign up and instantly talk to someone about the right way to invest in the long term i'm really proud to be able to say that less than 1% of our funded invest accounts have more than three trades in a day and we're taking the responsibility seriously whether it's margin lending or options or investing in cryptocurrency to make sure these are the right products for our members for the long term. >> what happened with the loan business since the pandemic and shutdown started >> yeah.

i mean, these are truly unprecedented times. the first time our members are facing no income or senior income cuts significantly whether they're doctors or lawyers or dentists, beauticians, carpenters, small business owners. and it's no fault of their own and so we're doing everything we can to help educate them on the different programs whether it is ppp loans for small business, forebearance for those that have loans with us and refinancing existing mortgages or credit card debt into lower cost mortgages or lower cost term loenz loonz. loans. the plan is significant for those that want to fix the future, building rainy day funds which is one reason we're seeing increased investing in brokerage. but the demand for making sure the financial life is set for the future, given this risk that can exist now any time i would loss point out that for the first time people really have do have a digital solution. and all of our products are available on the mobile phone whether you want to borrow

money, pay bills, do direct deposit, upload a physical check or have us send a physical check for you. can you do it on your phone. that's an important trend that is accelerating. we're seeing that not only at sofi but also really strong demand at our partner galileo that we acquired we're seeing demand from a number of different companies that never thought about being digital now looking to do business with galileo as a payment platform. >> in terms of new avenues, sam sung, the partnership awe announced with samsung, was that designed to be a direct competitor to the apple card with your old employers goldman sachs and how is it going? >> no. not at all our mission is to help people achieve mnl independence and that's all people wlchlt hethera reach them directly. samsung has a desire to leverage the relationship they have with millions of americans that use their devices to integrate into

that device financial services and our brand and approach is something that is very much aligned with how they think about the member base. and the relationships. and so developing the product samsung money by sofi is an indirect way to help other people get their money right it's a great partner it has a lot of credibility. it will help us reach people we wouldn't otherwise reach >> you had a pretty good view into people's finances and the impact of the c.a.r.e.s. act, the stimulus relief bill we got from congress, whether it is the checks or the student loan piece of things. is it enough because what we're seeing is this pandemic is sort of outlasting some of the expiration of let leaf programs. so should congress do -- relief programs, so should congress do more >> absolutely. i think the government and the fed as well as the traesheasuryv done a phenomenal job to put programs in place to make sure we're helping people as much as we k we created a covid-19 resource center to outline the different programs and educate

people we have the products or not, we still have such demand for the ppp loans, we stood up within four days an ability for small business to come on the platform and access a marketplace of dozens of lenders for loans that we never acquired before so there is a great public and private partnership. i think it helped our country deal with these unpress derceded times as it's what is retired through this really tough situation that i don't expect to end any time soon. >> we talked about the pace of the newer product lines that you've been working on where do you think you'll be in five years time in terms of percentage earning breakdown will lending as a percentage be much smaller >> every day lending is becoming a small eastern smaller piece of our business the sofi is doing very well. it is unique and we're charging no fees. can you do direct deposits of your paycheck. can you pay friends, you can pay your bills you have an atm card we refund your atf fees.

in addition to that, debit card and something can you trans act with sam social securi samsung has chosen to be a partner. we'll be launching the credit card in the back half of this year and that is in addition to backing with hong kong and our brokerage business in hong kong. we're seeing strong trends there as well. every day the mix of our business continues to become less and less lending. the other thing i note is that we're seeing significant cross buying in the platform 60% of our mortgages are from existing members and 20% of those that sign up for sofi money apply for a loan on the platform so we're seeing great financial services productivity and the success of one product builds trust in one relationship. so we're really happy with this str strategy overall way tonight ask you something about twitter. with this week with the

department of justice said to be looking at section 230 and rolling it back, curbing that protection that it gives companies like twitter and facebook how much of an issue is this for a company like that? >> yeah. i don't try to count on specific issues that relates to twitter other than to say i have the most respect for their board, leadership team for jack i'm still an investor and still a hold a lot of the stock i earned while i was there and that's a really strong testament that i understand that they have the right mindset and mental mile to navigate through the uncertain times and continue to change and i continue to think it's not only an important company but platform that serves our world in a unique way. i have the confidence that they'll make the right decisions over the long term >> anthony, i want to end by asking who in ten years time you think will be your biggest rival? are you thinking more that you're taking on the paypals of the world or j.p. morgans of

this world >> i think we're helping members borrow better, save better, spend better, protect better and invest better. and so any company that tries to do those five things, we think we're developing a differentiated product and taking share from them we don't really focus on traditional terms of banking and checking and other things that are defined by companies we focus on the things our members do which is borrow, save, spend, invest and protect. and so whoever is doing that for members is who we're taking share from and we're really happy with the differentiated products we have and we'll continue to move away from the rest of the pack >> anthony nodo, thank you for joining us >> thank you >> good to have you. for the full list of cnbc dru dru disruptor 250, go to our website. don't miss another disruptor, the ceo of ripple joins "fast money. a lot of crypto talk to have there. we have a news alert on albertson's.

>> it's not kroger, sara i no he that one is near and deer to the cincinnati folks this is private equity owned, again, albertson's which many people in the western u.s. know as the parent company of albertson's and safeway grocery chains it made some sec filings looking to go public in its amended filings. it looks to price the shares between $18 haand $20 apiece we have names about who is running the book here. you have bank of america, goldman sachs, j.p. morgan and citigroup are acting as the lead joint book runsers an ipo coming up for a very large grocery store chain. in this environment, woo he will see how it goes. for right now that, is the news. i send things back to you. >> this is the time for a grosser to go public everybody is loading up. >> on consumer staples >> yeah. >> dom for us there. coming up next on "closing bell," mike santoli will have a look at whether invest sment a red flag for the market.

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s&p 500 closed just a little bit higher on the day. let's go back to mike santoli for a look at investor sentiment. >> you know, sara, it's a complicated question

it really depends on what gauges we're looking at this is the weekly american association of individual investors survey bears versus bulls surprising to see the level and persistence of caution in this survey right here. you have more than 50% bears in the latest week reported this morning. and about mid 20s bulls. twice as many people saying they're bearish on stocks for the next six months as those bullish. typically, as you can see, this is the upper end of the range for bears. the lower end of the range for bulls. on a contrarian basis, this should be supportive of stocks or very unusual to get agre aggressive down side take a look at tactical shorter term indicators like the ratio of puts to calls being traded. when this is low on the chart as it was last week, it means nobody is very worried about down side. they're speculate ago gresivein aggressively it bounced to some degree here

it's not as extreme. if you're tactical or professional or the type that is always in the market and just figuring out how aggressive to be, that is getting heated or stretched. and maybe it's a reason for caution about stocks individuals, especially older individuals, kind of influenced by the headlines out there are really very cautious right now and there is a lot of cash out there they remain kind of sitting on >> is it your view the upshot is market could go higher could we squeeze higher? >> the pain trade still seems to be more up than down but shakeouts like we had last week are exactly the way the market is going to correct for this sort of thing so when you have the short term players getting the little bit over their skis, the market might punch it back. i don't think that means that the overall market is super bearish or super bullish but, yes, longer term it seems as if there is still a disbelief

in this market maybe for good reason. i don't think it necessarily is the case that everyone bought into it. >> we hear it here on cnbc every day from the biggest investors mike, thanks escape from new york up next, find out which state's real estate market is soaring thanks to new yorkers fleeing during the coronavirus lockdown. you can't predict the future.

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♪ yeah ♪ hey, hey time to get an update from sue herrera. >> hello here's what's happening at this hour n atlanta, the police officer charged with felony murder in the death of rayshard brooks has turned himself in in. he faces 11 charges and if convicted on the murder count could be sentenced to death or life in prison without parole. major league baseball players are proposing a 70-game season and $1.73 billion in salaries that is ten games and about $275

million more than team owners want usa today reports the players offer is expected to be rejected quickly. and the university of florida is banning the school's gator band at its team sporting events university president saying there is horrific historic racist imagery you're up to date. wilf, back to you. the. >> sue, thank you so much for that real estate sales crashing in new york city because of the coronavirus lockdown that's been a huge catalyst for surging home sales in florida which is becoming a major hot spot for the virus robert frank has the details for us >> the number of sales contracts for manhattan plunging by 80% in may. they priced over $5 million,

even more down 90% they're shifting money to southern florida which saw a huge increase in may contracts for single family homes price oefrd a million dollars, up 45% in miami-dade county and up 26% in palm beach county. now manhattan brokers say they have not been able to show apartments or hold open houses and they're predicting a sales boom from all that pent up demand now condo listings were down 54% in may they had been creeping higher and sara and wilf, the big question for you is bhwhat's gog to happen with prices in manhattan? we'll only start to see that when we get some deals hopefully this summer. back to you. >> so when can brokers -- can they officially start showing new york apartments? >> starting monday

that's the big day they've been waiting for for three months many markets including florida and even upstate new york they've been able to show for a long time. so starting monday they can legally show apartments, hold open houses and many people have held off even listing apartments until you can show them. so hopefully we'll start to get some actual deals and see where prices are sometime july or august >> you know, we've seen with all the migration between the two states, today, just today, cuomo, the governor of new york, saying he is seriously looking at a two week quarantine on people coming to new york if florida. so it's sort of working in it reverse after a lot of the new yorkers fled to florida this time wonder if it that's going to have an impact they start to see the cases really rise. >> as you know, we've seen that flow from new york to florida even before covid-19 that is accelerated especially for families that weren't sure what's going to happen with schools in new york and the northeast now putting their kids

in school in florida and moving permanently for the fall the so what this has done is accelerated that trend that we already saw before >> yeah. with very different tax policies, of course. which is another big factor as well robert frank, thanks so much for that now permanent work from home policies is something that is leading many tech companies to consider leaving workers at home full time, not just during the crisis we'll discuss that with two experts coming up. 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

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companies are announcing that some or all workforces will

be able to work from home permanently. the pandemic made going into offices nearly impossible. will this be a benefit or drawback for the workforce joining us for more on this debate, the chief investment officer and tom seigel, founder of c3.ai which is on the disruptor top 50 list. lots of companies particularly tech companies shifting to work from home in a more meaningful whether a permanent way or not are you onboard with that? >> i think for many tech companies, particularly those who are doing kind of relatively trivial work, like selling ad words or figuring out how to post selfies on the internet, think think working from home will be entirely appropriate >> glen? you disagree why? >> i run a company actually a

residential real estate brokerage as my primary role with over 31,000 people that all work entirely remote for the last ten years so for us, we believe that actually working remote actually empowers the workforce if you use the right tools and technologies that's one of the reasons why i'm now the chief strategy officer. it's actually a platform that actually facilitates the serendipitous collisions you get in a physical office that actually allows for deep work and deep collaboration and so that's onest things that we discovered even ten years ago was that was the necessary component. i don't actually disagree fundamentally. but if you have the right tech stack and you sort of look at a different way, you can actually build deep relationships, real work done and scale large organizations very quickly even in more traditional industries >> so a bit of a agreement there to start what other types of businesses

maybe not the simple tech businesses that you are referring to do you think they'll return to work in full in the offices as they were six months ago >> i think some will at ours we will. we'll return to work in offices. we're in the process of doing that all around the world today. but understand we're building, you know, these ai systems that are at the heart of critical infrafruk st infrastructure aren't world. safety systems for oil and gas, predictive maintenance for utility systems around the world to prevent disasters like we saw at pg & e. systems for the u.s. military. production optimization for health care workers, making vent lateors, cpap machines, health care monitors. if the systems go down or these customers have problems and we can't immediately respond, people will die.

so when we get to -- so we need to be there and we need to be sure these systems stay live we think many types of, you know, the new operating systems, new medical procedures, drug discovery, these are not the types of things that can be done remotely they involve supporting the infrastructure that will be done from home. it's still going to be necessary for people to get together and coordinate >> for sure. and, glenn, you know, something i think that tom is getting to there is the idea of culture and whenever you want to come up with innovation and ideas and

forward thinking, you have to have an office culture, don't you? you have to have people exchanging the ideas it's just not the same doing that in zoom how do you deal with those questions working from home? >> first and foremost, i totally agree about zoom it's one thing that we don't actually use video conferencing as our collaboration technology. we use a more avatar virtual world for business type platform however, you know, as i mentioned, you know, a company i founded runs entirely remote but for the last four years in a row we've actually been listed as a glass door top 50 or top 100 company meaning that you can actually build great cultures and great collaborative cultures by using the right types of technology some work has to be done physically manufacturing is something you can't do remote. there is tons of knowledge work that is not factory based anymore that you can actually

collaborate in a meaningful way and you may be coordinating certain physical activities. but central offices and central teams and support infrastructure and employees doesn't normally need to be done in a physical setting. unless you're operating retail but a lot of the other functions literally can be done truly collaboratively from home and work effectively >> it's a decision a lot of businesses are trying to figure out at this moment tom and glenn, thank you for being here to discuss how you're approaching it >> thank you >> thank you very much up next, an overpaid executive tax. why companies in san francisco that pay ecuvetoxetis p dollar could be looking at higher taxes. the details when "closing bell" comes right back here's a tip: get half-off the amazing iphone 11 on at&t, america's fastest network for iphones.

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