that does it for "the exchange" today. i will see you over on "power lunch" with tyler matheson stocks today are rallying, shaking off fears that the china deal may be at risk. nasdaq 1.5% higher right now facebook, amazon, apple being netflix all fresh all-time highs today. we've got one top strategist who says sell the greed. plus the billionaire called for new jersey to step up its reopening plans for casinos. the governor responded but tillman says the governor is doing it all wrong he will join us to explain as "power lunch" starts right now

the nasdaq is tracking for its longest winning streak since december bob? >> good news, we're just off the highs for the day. the bad news is financials are again not participating in the rally and they need to to really move us forward. let's take a look at the sectors, as you heard from kelly, it largely tech, semiconductors, internet stocks, the whole technical sector is doing well, consumer discretionary tech oriented to an extent, industrials flatter, generally underperforming and banks not even in positive territory by and large we told but the new high on the mega caps. i don't know if you realize how they've rallied off of the march lows facebook is up nearly 78%, apple 75, amazon 70, microsoft and alphabet, even alphabet is lagging, 46% off of the lows, far outperforming the overall market software in general has become really important so if you look at right around here we see new highs in adobe

and electronic arts, auto desk, service now, which is the cloud computing company. that's down but a new high for that software has become very important in this kind of economy. state at home sti stay at home stuff, pool services, papa john's pizza, all new highs. that stay-at-home trades significant. you see how mixed the market is overall. very tough picture for the ban banks. >> that's for sure bob, thanks so much. let's flip over to the bond market where rick santelli is tracking the action. sound like rick bond yields, rick >> the bond yields aren't necessarily weak today you can see yields are climbing a bit but the one-week chart gives you the story.

we've drifted from just under 80 to the high 60s and we're coming back again it's range bound but it can't extend much beyond 90 basis points and if we consider that next week we're going to have an employment report, look for rates to slowly move higher into that report. mathematically many believe that report is going to look pretty good if we look at a two day of dollar index, we can see it's given up some recent gains ffs up it was up 1% over the year and maybe the point is that the fed and many of the swap lines are finding much less interest look for the dollar index to slowly give up some ground at least that's the way the charts look for now. tyler, back to you >> thank you very much stocks have shrugged off fears a

trade deal could be in jeopardy. our next guest said there's plenty of greed on wall street and you should sell it when you look and say there is plenty of greed on wall vestreet and you can sell it, what tells you that greed is abounding? >> it's one of these situations where if you take the pulse of the public, individual investor, whether you measure it by the record new account openings, zero-fee online trading, the new small option activity reaching a record high, the activity we've seen in recent weeks in bank city stocks, all that really does sort of talk to the froth and when you step back and look at the market for the last several weeks, what you see is basically a market in the s&p 500 that has carved out a range, alluding to what bob talked

about, the financials giving up the leadership you have a number of stocks, the stay-at-home plays, very active public favorite that we have become overextended and the options market is basically telling you there is this fear of missing out going on in those names that can take the rest of the indexes higher >> so i want to get to how exactly you propose that people should sell the greed. but i do want to zero in on what your year-end target for the s&p 500 is it goes to the idea that we are in some sort of trading range about 3200, 3230 on the up side and 29 and change on the down side right now we're at the 3100 level, 3147 or thereabouts where do you see the s&p ending the year >> we have a price target of 3,000. if you step back and look at the

evolution of major bull market, we do think there will be new all-time highs next year, and we also think there's a possibility that you have the start of a major bull market sort of what you saw at the beginning of 2009 or if you go back to really the beginning of the financial age, 1982, those markets rose somewhere in the neighborhood of 50% very quickly off the bottom, likely done since the lows in march, but then there was a pause where the fundamentals caught up with the stock price and the way we see it now, between the challenges of the economic reopening, you know, and again this public enthusiasm that we do think is perhaps a bit too far, we do think there is, you know, time and reason for the pause given the fact that the uncertainty of the economic reopening hangs over the market >> let's get to the question of how tactically or in my

portfolio i can go about selling the greed. is it going long, the vix, on the idea that strovolatility is going to intensify or are there other tactics i should follow to do this? >> with the vix around 30 where it is now, it could go either way. it's oscillated very much in a range and that's a bit more difficult to predict but if you're a holder of some of these names that have rallied, 50, 100, 150% off the march lows and these names that have this slow mo to them, you can sell call actions against your long share for some shares 10% higher, 20% higher looking out over a couple months, you can actually earn very, very robust premiums and still have the up side to those stocks. you know, with the notion that you'd be perfectly happy to have

to sell some of your stock over a month, month and a half period >> we thank you. kelly? >> the market is shaking off reopening fears as coronavirus cases continue to rise in places like texas, arizona and florida with a shift toward a younger demographic. meg? >> reporter: hey, kelly, we are seeing those hot spots in those states that you mention. the case doubling time, the metro area are seeing those fastest rises have remained constant in phoenix, tampa, san antonio and austin those red states are the ones seeing the fastest courts, the green areas seeing the fastest

slowdowns. states are anecdotally reporting a younger population making up the majority of those testing positive data from florida showediing th median age has declined from 65 in march to 35 as of the middle of june. there is hope be cited among governors that perhaps that will mean better outcomes in terms of hospitalizations and the death rate but we are seeing a number of hospitalizations go up among younger people in places like dallas dr. gottlieb pointing out as well dr. fauci issued a warning that we don't yet know if this will lead to better outcomes and he warned that younger people will then probably infect older people and overall he said this is an important point for our country. here's what he said. >> right now the next couple of

weeks are going to be critical in our ability to address those surgings that we're seeing in florida, in texas, in arizona and in other states. they're not the only ones that are having a difficulty. bottom lien, mr. chairman, it's a mixed bag, some good and some now we have a problem with >> this coming as houston is warning it's less than two weeks away from icu capacity potentially being exceeded >> i think one of the persistent hot questions has been how much of the rise in case counts, if any, traceable to the idea that we are testing more broadly, deeper, more people? how do you suss it out how do you separate the one from the other? >> the metric that public health experts use is the percent positive rate. so the number of people who are testing positive out of the number that are being tested so can you look at that state by

state and that's why the focus isn't so hotly on states like california, because their case numbers are going up quite quickly but their test positive rate has remained about steady so that's not as big of a concern as places like arizona where the test positive rate has skyrocketed and that means clear community spread >> thank you appreciate it. stocks are rallying with the is specific up 43% from the march lows consumer discretionaries, tech are leading. and we'll tell you the names aieing the biggest gns much more "power lunch" right after this at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge

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. welcome back, everybody. americans are snatching up houses new home sales jumping up 16% in may. olick has a look. >> reporter: the numbers today showed a big jump in the number of people buying homes that haven't even started to be built yet and a big drop in the number of homes for sale currently under construction

all this staying at home has more consumers, especially renters, headed to home builders sales of new home sales dropped and rebounded immediately. >> there's no question the second home has been a place of ref refuge people are rethinking whether they want to be in high rises with common amenities versus a home of their own with a back yard >> record low rates, urban flight has created a perfect storm for builders toll brothers said on the latest call, these earnings trends suggest the housing market may be more resilient than anticipated two months ago and the ceo of taylor morrison said the virtual technology they put in place for home touring has, quote, forever chainsnged e

way we do business they polled recent buyers to find out what's pushing them to the new home market? number one, better technology for remote working and home schooling. second, simply more space and more individual rooms. so the question is how quickly can the builders ramp up production the problem is they stopped buying land when the pandemic hit and laid off a lot of their labor so they're going to have to restart all of that very quickly to meet this very strong demand back to you guys >> diana, i'm curious about the juxtaposition about how hot the home building segment is and the lower existing sales last month. >> that's more of a result of the supply of existing homes than the demand for them, especially on the entry level where millennial levels want to get in you talk to an agent in any neighborhood and they're like

give me a listing, i will sell it in a hot minute >> thanks very much, diana olick. the next guest says this hot housing market will likely cool off by the end of the year mark, it go's good to see you why the caution in. >> i think the credit problems are coming the federal government has put forward a lot of different policies to forebear for mortgage holders that might be having a problem making mortgage payments because of the covid crisis those programs are going to come to an end later this year as we move into next and it's very likely we'll still have high unemployment the confluence of high unemployment and end of the forbearance means more defaults and foreclosures and foreclosure sales and that will put more weakness into the market there are some very solid

underpinnings. it's just going to cool off later this year. >> i've been watching prices but we're getting to a point at which affordability is major, major issue. i don't know how people are supposed to break into the market without much relaxed lending standards. we want to stay on the right side of that line so we don't go through the housing bubble experience all over again. is the scenario you're describing, would prices come down or are we talking about moderating gains does it depend on which part of the country? >> it's more moderating the gains. we might see some outright declines where foreclosure sales will are more significant. there's a severe lack of homes, both in the new and existing market the existing home sales were largely weak because those are closings the new home sales are contracts. the closings reflect what was

going on in march and april so it's backward looking. we'll get much stronger existing home sales as we move forward and be more consistent with the new home sales numbers real solution to the problem is ultima ultimately more construction, figure out ways to allow builders to put up more moments, technically affordable homes where the shortages are very severe this was a problem well before the crisis it's only exacerbated on the other side of the crisis >> do you see any major policies, we've talked about zoning policies, how they're starting to relax things in different neighborhoods across the country. would you expect to see a bigger ground swell and what would that look like? or is that still years and years away do you think? >> it not like the federal government can swoop in and say here's the silver bullet, we're going to solve the problem i would expect more attention to

be paid on the housing crisis on the other side of the election i wouldn't be surprised if there is money put forward to expand out like the housing trust fund. these are funds that go to cdfis and other community development organizations that know their communities and can help builders put up more homes, particularly the right kinds of homes. i suspect that's where the solution will come from. >> let me turn to the broader economy, if i might. how dependent is the economic performance in the second half of the year on a renewal or more greater form of fiscal stimulus coming out of the white house and capitol hill and if the economy and the households don't get that stimulus, what are the odds that we dip back into recession in say the fourth quarter >> it's critical, absolutely critical we have to give congress and the administration credit for being aggressive, coming up with several fiscal rescue packages

2.4 trillion, well over gdp. most of that will be spent and gone by the end of july. if we don't have another fiscal rescue package that starts helping by august, september, even assuming no second wave, i think the economy will have a lot of problems. the likely of a double dip is increasingly likely. i'd be pretty surprised, though, if the lawmakers don't get it together this is an election year the president is sounding like he wants to sign something if we don't get it, we got a problem. >> mark zandi, always good to see you. >> sure. >> peloton quickly becoming one of the hottest stocks on the street, shares up 200% from the march lows and they say it's got more room to run can you still catch a ride on the bike plus tilman fertitta will be here to talk about what he

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welcome back to "power lunch. peloton hitting another record after cowen raised its prices to a record high $70 a share. they say the home fitness trend is here to stay calling peloton a pioneer in this new phase. dock u sign, netflix, all charge head with reopenings todd, what's interesting is

after the company, peloton, went public last year, it hit an all-time low of $18 a share. it's now at 55 and change. do you think these gains are justified from a technical standpoint >> it's interesting. in the low that was put in, it was quiet for a while. it was right in the beginning like mid march, march 19th when this began yes, we like it, we hold it in our growth strategy. this company was a first mover, succeeded in the online physicalness and social communities, unlike the other o ones like go pro if you look at the charts we mentioned, following that breakout of 35, they're following a higher channel support. they don't face technical resistance until the 70s they hit it at a lower price bike i like to ride my road bike, o seema, but as a father of three

kids, i'm thinking about the peloton. >> what do you think about a stock that is selling more bikes due to this work-from-home phase but it's facing competition from a company like soul cycle and facing questions about its ability to scale >> it's not just competition from soul cycle, it's also facing competition from other bike companies, who are all forming their own studio offerings to help give a peloton-like experience. they a pioneer in this space but they're also opening up the space into a lot of competitors, mirror, tonal. this home craze is going to take off. if you think about it, most people who start a gym membership in january will abandon it in may. most who start a fitness app in january will abandon it in june. that is the churn that peloton will be faced with for the rest of its life as a stock, but it

has a massive -- obviously a huge potential there but it is going to face increased, you know, increased competition, not only from the stay at home but as gyms reopen. right now they have all of the wind is at their back. they're going to have more and more wind in their face as the reopening continues. >> huge potential. we'll see if it translates into profits. thanks for joining us today. follow us on twitter and go to our web site for more analysis at "trading nation." back to you. >> up next it's up tilman tuesday. >> i don't know what they want to do, maybe they just want to put us out of business but obviously the governor and whoever else issic maing t imakg decisions, they won't even give us a date when we might open in atlantic city.

>> maybe the governor is listening they have a date but does it mean he's happy? no more on "power lunch." stay with us and now the latest on "trading nation. >> in determining entry points with rising stocks, look to buy pullbacks at support levels, such as up trend lines, prior lows, retracement levels or moving averages. ♪

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i'm rahel solomon. in california, the pandemic is expected to caused 8.6 billion in losses for the states' farms and agriculture industry they say the state's agricultural sector has already booked $2 billion in losses this year to kentucky, short lines for the state's primary election large voting centers were set up to allow social distancing, but now there are concern that the large number of mail-in votes may delay the counting of

ballots. >> bill cosby has been granted an appeal to fight his sexual assault conviction between the pennsylvania supreme court he is serving a three to ten-year sentence. the court will look at whether certain testimony should have been allowed and whether he should have been put on trial to begin with because of a prior non-prosecution agreement. big news out of pennsylvania today. kelly, back to you >> thanks so much. let's check on markets right now. at near session highs as they've been for most of the afternoon dow up, the s&p up nicely, the nasdaq up 1.4% today and text is the lear leadership across all of the major averages, the tech sector leading the way and consumer discretionary, staples, that baskets that includes the home stocks, the nasdaq 100. there you have it and the

russell 2,000s are up about 1% the oil market is closing up let's go to dominic chu for more >> it's mostly red here for the energy market, especially for crude oil. check out for the u.s. benchmark, wti prices right now off by 3/4 of 1%, a couple of duelling forces at least at play, the softening of the trade rhetoric out of white house between u.s. and china helping to give price as little boost earlier and also weaker-than-expecting purchasing data upset some traders. we got that tug of war right now those prices still hovering some multi-month highs. we'll see if that sticks >> thanks so much. >> new covid-19 cases have been

spiking across america, surging 25% last week with arizona, florida and texas all setting records. this flood comes as businesses are reopening and trying to figure out how to stay open as more and more employees test positive for coronavirus here to talk us through the challenges and more is a business owner par excellence tilman fertitta. welcome back, tilman you are wearing a mask we haven't seen that before why? >> you know, it is so important right now to wear a mask our only chance of staying open is the mask. remember, texas, florida opened you on may the 1st and now we're having it major here you know, so many thousands of people are getting it every day now, and if we don't wear masks, we're going to have to shut down again. it is mandatory now to wear one

in texas what's the big deal? wear it till you set at the table, when you go to the bathroom or grocery sortore you don't have to wear it in your car or walking down the street but when you're around people, you've got to wear it. if we don't, we're going to be shut down again and have an economic problem besides a lot of unhealthy, very sick people out there. >> first, what do you say to those who reject the idea they must wear a mask in a public place because they say it is impinging on my freedom. it has taken on a political tone, number one and, number two, in the moment when you're in a restaurant, one of your places and someone is not wearing a mask, either at the bar or on their way to the rest room, that puts your staff in a very tough position to have to enforce that. what do you do >> it is it's a tough situation and

you're going to have that 1% or 2% it's kind of like dealing with a drunk. they're tough to deal with you've got to remember, i've been on the conservative side of this pandemic, but i'm seeing it now in texas i was not in ground zero like you guys are we weren't having cases here but i know a hundred people that have it now. and none of them had to be hospitalized the hospitals have a lot of people in them, but it is unhealthy people that had preconditions. but there's so many people that have it, that if we don't get ahold of this pandemic, just like if y'all don't wear the masks in new york, 45 days from now you're going to have another issue and we're going to have to shut down again. so it's just so important. it's hard. people i think right now because it is mandatory, they've got to respect it and they've got to respect other people and if my customer who doesn't want to respect other people, then i don't want them as a customer. that really gets back to your question so can i make them wear it right

then i don't have bouncers. no, i cannot make them wear it i can tell you this, they won't be allowed back. it's so important right now to respect other people's rights. >> that's very interesting and strongly stated. you know, i think it is interesting that obviously the disease came to washington state, california, new york, new jersey, connecticut in a strong way. i don't know anybody here in my circle who does not know someone who has not lost someone or multiple people to this disease. my family has lost two individuals. so it is, this is a business -- this virus means business. let's turn to new jersey and the opening of casinos there now slated for july 2nd, a week ago you were here as we showed, you called, you said we haven't even gotten a date. our esteemed governor in the great garden state must have

heard you, he gave you a date but he didn't give you much time to get ready for that date or to test fly the plane before july 4th weekend. >> i was kind of shocked at that i do appreciate the governor fi finally making a decision. i understand how hard it is being a governor i run a company with 60,000 employees and we have to make tough decisions. if you want the job, then make tough decisions. i'm kind of shocked that we going into the 4th of july weekend and they give us thursday before saturday, the 4th of july? we have to test our protocols. i've opened up four other casinos and we made adjustments after the first day or two you know, i know that i'm going to have my people on the phone today with the governor's office let us open up softly on wednesday, 250 people, 300 people just to kind of check our protocols before we get hammered on thursday and friday give me a chance to make some

adjustments. it will be better for all of us. i respect the protocols. i want to make it right for people give me an extra day or two, soft opening, governor, let me get it right that's all we want give us a few hundred people for a couple of days >> tilman, speaking of which, let's talk about online gaming golden n ee een nugget hn some huge numbers there. california said no to sports betting in general maybe that helps the las vegas casinos, as suggested. >> what they did in california has no effect. it's going to get approved next time and go to the next step it's been huge in new jersey, and our business was up 55%. the rest of the mark was up 40%. we've always had one of the top igaming companies for sports

betting and igaming. you're going to see it everywhere in the country because of the taxes and it protects you against it if there is another pandemic of any type or bad weather or anything that people can stay home and gamble and the state get tax dollars. we've done huge numbers. they'll approve either sports betting and most likely igaming and sometimes together, sometimes sports ahead of time to let people adjust, but the igaming market is so much more profitable and bigger than the sports gaming market because it's no different than a land-based casino. think about this for a second, kelly. you go into a casino and only about 3% to 4% of your space is your sports betting area yet the other 95% is table games and slot machines. so igaming is much bigger and that's why we're the most successful in new jersey because of the fact that we're so big into the slots and the table games and we have live dealer.

>> interesting, interesting. while we're talking about all of this gaming, tilman, you know, as you've said with what's happening down south with the spread of coronavirus, it definitely includes florida. does it look less likely to you this nba season is going to get off the ground >> i think it's going to get off the ground i don't know if it's going to stay on the ground we're going to do whatever you're going to follow the protocols and it's no different than one of our business if someone is sick, you send them home, everybody else watches themselves and if you're not willing to say three people tested today for the rockets, three tested for the lakers, those guys go home if we're not willing to recognize that's going to what happens, we're not going to complete the season, not in football, baseball, basketball or whatever.

the coronavirus is everywhere right now, and we either have to live with it and go through our community and, like i said earlier, i know a hundred people now that have it and i knew nobody that had it three weeks ago, four weeks ago, six weeks ago. two of my kids have already had it out of my four and are well now and back to their normal lives and never got that sick. but it's here to stay. that's why you got to wear your mask and you can either panic and not keep playing games or send people home that are sick and keep playing them and that's what we're going to see is going to happen. >> let me turn back to your restaurant business if i might with one of my famous compound questions. i can well imagine that you're finding that some of your workers are taking ill as well or have problems with child care and so forth is that a problem and a growing one for you in these areas where you're finding the hot spots, whether it's florida, texas and the like and second question is have you in those hot spot areas like

texas started to see some slide back in the willingness of people to come out >> let me just say this, okay. first off, we do have restaurants that get it, an employee gets it and some restaurants have shut down because they panic. so what are you going to do when you reopen a week from now and then the next day an employee gets it? you going to shut down again and you open up again a week later you shut down again? covid is here to stay. and you have to -- you have to make the adjustments are we seeing a little slack off in business? we definitely saw it at the end of last week and this weekend. now, the numbers are a little distorted because you had father's day in there so you did a big number, but this is going to be a clean week this week without a holiday, you don't have 4th of july or father's day to compare against last year,

but we are definitely seeing a little pullback. some people are uncomfortable going in public wearing a mask and other people are just kind of pulling back. but it's not just in texas and florida. remember, i'm in 40 states and i'm seeing a little pullback everywhere a little bit right now. but i just think if people will wear the mask, we can get through this it does not transmit if you're wearing the mask so much >> masks work, no question about it tilman, always great to see you. fascinating conversation as always tilman fertitta, thanks very much kel? >> microsoft is pulling the plug on their mixer and we'll reveal this mystery chart after this break when the world gets complicated,

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time now for the power movers, starting with spirit aerosystems. it got a letter from boeing further cutting the parts it would buy from spirit now saying it only needs 72 fuselages for the 737 max, down from 125 and way down from the initial projection of 200. next, mohawk industries, the carpet company deutsche bank cut the stock to sell the stock is up to more than $100, $186 to be exact maybe the strong housing numbers gave that a bit of a boost

inovio got a grant from the government to create a hand-held voice to help with covid-19. >> microsoft spent millions to incorporate mixer. it shutting mixer down we'll discuss that next on power lunch.

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welcome back in the fight over video game streaming, amazon scoring a knockout over microsoft. josh has the details josh >> that's right, kelly so it's official microsoft is shutting down mixer on july 22nd this is the company's live streaming service, kelly fans go to watch other people

play and comment on video games and where streamers can entertain fans for three years microsoft battled giants in this market like amazon's twitch, google's youtube and facebook'sgaming unit but mixer never did catch up for example, in april, people spent 37 million hours watching content on mixer i know that sounds like a lot. but that's compared with 1.5 billion on twitch. microsoft saying in a blog post, it became clear that the time media to grow our own live streaming community to scale is out of measure with the vision and experiences we wanted to deliver to gamers now. mixer did make some big moves poaching superstar gamers like ninja and shroud microsoft was ultimately just too late to this party and that taking on twitch was impossible given its size and scope so what happens next after july 22nd, traffic will be redirected to facebook gaming. terms of that deal have not been disclosed. he says that deeper microsoft

hitch facebook partnership in gaming could be foremidable combining the ar and cloud computing chops with facebook's vr and big user base guys, back to you. >> anecdotally, a lot of users are not thrilled about the prospect of having to go create a facebook profile or use the real profile to play the game. so twitch offers kind of the anonymity that mixer did but facebook gaming not so much. that's one of the issues the other thing i'm curious about is ninja reportedly got paid a lot of money. this is a pretty quick about-face do you no he if he gets to keep all that >> so, a source tells me it's really up to the superstars that, you know, the guys like twitch -- the guys like ninja really it's up to them and their choice they can re-sign with twitch they can stream on facebook. i don't know whether he keeps that money, kelly. i don't know the terms of the contract my guess is ninja has a smart agent. but we'll see.

>> yeah. probably enjoying their cut as well josh, we appreciate. thank you, sir josh lipton in the gaming space. >> the coronavirus has crushed many areas of the economy. it has helped boost many biotech stocks the etf tracking that group is hitting a record high and up more than 50% from the lows back in march have those stocks run too far too fast that one coming up don't forget, you can always watch us on the go on the cnbc app. 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.

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. the nasdaq hit another record high today. a big reason for the runup has been the surge in biotech, the etf also hitting a new record high today and it's up more than 50% from the march low. is there more room to run? what are the best bets in the space? we have a biotech analyst with us i was very surprised that one of your top picks is gilead, a

stock that other analysts are worried isn't going to go anywhere even if it does continue to rollout coronavirus treatments it's not going to make a lot of money off that talk a little bit about why you like it. >> great just taking a step back, i mean, there is more to gilead than the coronavirus drug you know, the base business for hiv remains very, very strong. i see a tale for that over the next ten years of very strong growth from the business on top of that, you know, gilyard's management team which got in place about 2019, they tigly, like, started to do deals. you have seen many deals hit the tape for gilead and oncology they're starting to build that pipeline that everyone is looking for. we lost sight with the inhaler products there is a possibility there could be potential revenues. for me the story on gilyard is hiv and that pipeline and my view is they'll continue to do both and executing well. >> had a what about astro

citizastrozeneca? you are setting that to the side >> my personally, i'm setting it to the side. it's hard to fully ignore it it's kind of like a cherry on top in my view but, you know, we're looking at these businesses and trying to figure out how the base business looks and how the pipeline which will continue to support that, i think this is nice to have i'm impressed and pleased by what the pharmaceutical industry has done here. but for either of the companies, it all goes back to the basics, what they're doing, how they're going to grow. covid-19 will be a piece of it its not all of it. >> why is it you think the whole sector right now is hitting all time highs i heard theories ranging from people are going to be less hostile about drug pricing in the future we're looking for salvation with covid-19 basically also the fact that there is ai lot of usage of the health care system at the same time, we're not getting a lot of those treatments that you normally have they're all having to be postponed. that includes cancer treatments and the other things

why do you think the ibb is performing as well as it is right now. >> for the past couple years, parts of biotech haven't performed. second airily, i mean, biotech and pharma are part of the solution, not the problem here but from a generallyist perspective, you want to take bets on defensive sectors and sectors that are part of the solution and certainly, you know, solving the problems that we have around covid-19 are likely going to be related to a drug or vaccine. so, you know, i think that is causing a rotation from certain other sectors and to the sector in particular. the regulatory environment is collaborative as it has ever been and m & a continues to be a factor in this space deals are getting done via zoom or whatever they're doing. it's still a space i feel very, very strongly about. felt that way in the beginning of the year and i continue to feel that way. >> quick final question.

it enkpom passes a low yshgs gdp as your other top pick >> two of my favorite topics we have overweight rating. there is a drug recently approved for sickle cell disease. the interesting thing is there is very little clinical development. they approved a pill that is very clean to take we estimate sales of $3 billion at peak. the controversy emains, well, is the launch going to work out? are they going to beat numbers i continue to think they will. so very positive on gbt. maia cardia, a different story cardiovascular company that recently have very positive phase three readout on a drug. the stock obviously revved on. that my thesis is there is more to myocardia from here they have other drugs that are in development right behind it,

targeting different parts of the cardiovascular environment and using genetics and precision medicine approach. i think they have a long way to go from the years out. >> that's like a graduate course in three or four minutes thank you very much. we appreciate it as always ty >> all right thank you very much. stocks are moving higher right now. we run out of time thanks for watching "power lunch. "closing bell" takes it away right now. >> the s&p 500 is up 1% as we stand. let's have a look at what is driving the action they gave comments on the travel and trade relations. we're seeing another day of momentum in the big tech stocks.