>> boss said he liked nike better than lulu josh >> invitation homes. i violate you to join me ceo was on earlier today jim? >> goldman sachs opportunity strikes. >> great weekend, everybody. see you on monday. kelly, it's all yours. thank you, scott welcome, everybody stocks are sliding across the board. down 2%. 2.2 on the dow, down 577 about 100 points off the lows. similar decline to the s&p and the nasdaq composite concerns about the spike in coronavirus cases across the country will take a swing out of things cases rising in 30 states. seven-day average is at a record high texas is rolling back some of the state's reopening. florida is closing all its bars. let's dig deeper into stocks most impacted at this hour we turn to bob >> and stocks are struggling

because the pace of the reopening story is faltering the v-shaped recovery is in question that's why we are having a tough time when this kind of thing happes,d you see the down in leisure stocks s&p just off the lows as well as the dow. travel and leisure, your usual suspects avis, united carnival looking washed out. it already had damage. wynn resorts down 4% an earnings debacle for nike foot locker, steve madden, wolverine who make hush puppies and merrell. they are all down right now. it is important to point out what happened with nike. aoe tphor earnings miss was enormous loss from 51 cents from nike they were expecting a gain of 7

cents. the bottom line, everyone was wrong. 100% of the analysts were wrong. when the companies don't give guidance they can't figure out what's going on. this will be a problem in the third skpb fourth quarter. wells fargo, capital one, the market is not distinguishing everything is down 3%, 4%, 5%, 6% you got a lot of volume in addition to all the issues today. back to you. >> what a day for it that's bob pisani. me go terrell spoke with dr. fauci earlier today. this as the whose holds its first task force briefing. tell us what dr. fauci had to say and what the latest is on the covid front >> headlines already to tell you about from the white house coronavirus task force briefing.

striking definitely a more optimistic tone about the progress the country has made than i heard from dr. fauci in our interview, which we taeud earlier today for the summer series conference which is airing right now if folks want to watch that. now, pence saying at the beginning that all 50 states and territories in the united states are opening, quote, safely and responsibly right now. he noted that the u.s., after those 45 days to slow the spread, he said we slowed the spread, flattened the curve, saved lives. nonetheless, he did acknowledge the rising number of cases in states across the south and the west he said he spoke with the governors of florida, texas, and arizona in the last 12 hours and that he and dr. birx will visit texas and arizona next week. and he is visiting florida later next week to get a status check on the ground. he said they're going to talk about the efforts they will be taking in specifically 16 states

in the u.s. where both cases are rising and the percent of positive tests are rising as well, showing there may be community spread in those places meanwhile, kelly, i did tape earlier with dr. fauci who is very concerned about what he called a serious turnaround in some areas of the country. we're always talking about testing, tracing, isolating cases. i asked him specifically how contact tracing in the u.s. is going. here's what he said. >> it's not going well i have to tell you it's not going well. billions of dollars that were given to the cdc to district to the states for the purpose, for the purpose of identification, isolation, contact tracing and that meant do whatever you need to do to get it done. you need to build a hotel to put people in there, do it just do what needs to be done. we have to make sure that happens. because i don't really seeing that happening to a great degree right now. so we better get on it and make it happen.

>> mr. so, kelly, pretty frustrated dr. fauci you're seeing right there >> me g, what do we know about hospitalization rates and death rates, not just the cases but the severity and how close we are in terms of getting overwhelmed? >> yeah. it's different in different areas. you are starting to see the hospitalizations start to rise both nationally and concerningly in areas with this biggest spread of course we have been hearing about houston reaching its capacity normal icus going into surge capacity you are seeing hospital capacity going down in these areas. and it's another thing we talked about. even though younger people are making up a bigger bulk of those getting diagnosed it doesn't mean they are immune from being hospitalized or they won't go on to spread it at higher risk of hospitalization or death so we are all in this together

and we all need to be careful >> yeah meg terrell there. we are tracking the rise of covid cases across the country hospitalizations in florida have more than doubled since the state reopened may 4th across the gulf, texas is dealing with a 79% average in its seven-day average of cases that led governor abbott to sign an executive order reclosing bars in the state, except for delivery and takeout it limits restaurant capacity to 50%. closing rafting and tubing businesses and mandates outdoor gatherings of 100 people be approved by local officials. for more on how hospitals are dealing with the surge in cases, i'm joined by dr. david calendar, president and ceo of memorial her man, one of the biggest in houston it's great to have you here. welcome. >> thank you it's great to be with you. >> so is your icu capacity regular capacity full right now and have you had to turn to that surge capacity >> we're not using surge capacity we actually still think we have

comment to meet the demand for covid as well as noncovid patients we're always busy in the summertime and what we are seeing now is a typical summer for us. so while hospital capacity is really hard to describe, it is managed. we are able to do that really well right now >> i noticed the heads of the hospitals have been very much trying to calm everybody down, saying we have plenty of capacity we are going to be fine. why aren't you more concerned? striking distance from what we saw in this part of the country. as our case count spread, almost every hospital leader was on here trying to tell people you need to be wearing a mask. we can't deal with this surge like this. why do you feel so calm about this >> well, again, we're used to dealing with complex patients and functioning at high demand

levels so this is nothing that's new for us and we know we can adjust as we move forward to meet for the need of a greater number of covid patients what we prefer is to do exactly what we believe dr. fauci was suggesting, which is to focus more broadly on the impact of this disease across the population, certainly on the economy, and try to get the public to behave differently, to wear masks, to wash their hands, to maintain appropriate social distancing if we do that, we know we can severely limit the spread of this disease >> how severe are the covid patients in your hospital and how successful are your treatments in dealing with them? >> we have certainly learned a lot since we first encountered this disease back in the middle of march here in houston we are seeing a slightly lower rate in terms of the number of typically hospital bed patients who convert to a need for icu

hospitalization. we are also using ventilators less frequently. we have more drugs at our disposal that we know help limit the severity and duration of the illness. so overall i believe we are faring better than we did a couple months ago. >> can we go through the numbers? how many icu beds are being used what is surge capacity is that on premises? how many beds? how quickly can it be brought up and running? >> the latter question first just about any bed in our hospitals can serve to deliver intensive care services. this is the idea of what we call acutity adaptable beds across our system we have 4,000 beds that we can bring into play right now only 30% are being utilized for covid so we have plenty of capacity for covid patients, as well as patients who need hospitalization for other

illnesses. one of the things we noted previously is that when we devoted most of our beds to covid care, the entire region's health suffered. we do not want that to happen again. >> and it's a financial problem as well for the whole health care system when elective surgeries are postponed. that will be an issue for another time what happens if texas cases and hospitalizations keep surging? we don't know if that will happen a lot the numbers in texas and florida continue to hit records. what kind of planning do you have to make sure that if this jump continues to go for another week or two the hospital system is going to be okay? >> yeah, we think we will be we're working closely with elected officials around greater houston. the state level, governor's office more specifically, to think about what additional resources might we need to truly the condition continues to be deteriorate. so, again, we have ongoing

efforts to identify additional surge capacity that could extend outside our hospitals and have great collaboration across our region in case that happens. >> interesting and is there anything you think that the public needs to be doing differently for a continued spike or do you feel comfort be will with the way the state has handled shutdowns, reopenings and so forth? >> well, what we need to focus on is dr. fauci's message. people need to wear masks. they are effective we stopped the transmission of covid-19 in our hospitals by wearing masks, maintaining appropriate social distancing, washing our hands, and keeping sick employees at home >> all right dr. david calendar from memorial her man health system in houston, thank you for joining us today >> thank you very much >> we appreciate it. let's turn to the markets now which are selling off as cases intensify and raising concerns about the broader economic recovery the dow is down 529 today. are we headed for another major

down ts turn president of icon advisers and tracy, chief executive officer at at vent it is striking how cool how calm the head of a major hospital sounds about this outbreak in his area what does that tell you how we may provide with markets in the economy as case numbers rise >> at icon, we are bullish stocks are still priced below their intrinsic value. interesting how confident he did sound and stressed how much they have learned about this disease since it first appeared. >> do you think we're going to avoid broader shutdowns? >> i don't know. it's such a fluid situation. but we are basing our bullishness on the expected economic recovery six to nine months out from now. and we think the market is just

leading that in its normal fashion. >> i'm not sure if nike is a stock that you would particularly invest in or not. but the earnings missed yesterday, does it have you reevaluating what your earnings estimates are for the companies that you do own in any kind of measurable way >> nike has been very good for us this year we see this as a one-time dip. and when you look into the forecasted earnings for next year and the year after, you see an expected recovery so i have not sold it with this event. i'm just riding through it >> nike shares down about 6% today. tracy, let me turn to you. i know you also specialized in a lot of the debt market so what would you say about the health of corporate america right now? are these companies that you think are going to be hamstrung for years by the amount of debt they have had to raise to get through this, or are they going to be able to pay it down, come through in a couple of years and be fine? >> thanks for having me, kelly

i appreciate being on the show i will first say we are focused on companies that we can clearly see a liquidity bridge over covid. we look at companies that have 12 to 24 months liquidity. it is very, very important to us this is a stock -- not a stock market but a market for stocks you have to really focus on each individual situation and make its determination based upon that liquidity bridge is super important. understanding that these companies have great franchises. remember, when you buy stocks it's a long-term call on cash flow temporary disruption right now people need to understand and appreciate that. who can make it to the other side of this covid bridge. >> would you give any examples of companies in better position, tracy? if more shutdowns, are you concerned about that >> of course we're concerned about the shutdowns. but 78% of the 20 states in this

country contribute to 78% of the gdp of this country, right of those 20 states, only 5% of those have 5% positivity rates so you have to understand that and five states where the positivity rates are above 5%. so you have to put this in perspective. of course that can change. but we are certainly very concerned about that and are watching it very closely understanding the liquidity bridge is crystal clear. royal caribbean have 24 months liquidity. and cash on the balance sheet. or booking.com 28 months of liquidity on the balance sheet. these are the types of things you need to focus on you might want to focus on companies that went into a covid or a noncovid word it could be a spluk or cloud fare so i would have a balanced

portfolio or securities into that spectrum. you know, kelly, we focus on convertible securities >> yeah. >> they mature in three to five years. if the stock goes up, enjoy the majority of the upside if the stock goes down, it matures in three to five years so that's really, really important. i would note the convertible market this year is up 6%. and growth is up 15%, s&p 500 compared to high yield which is down 4%. and s&p which is down about 4% so to me if you want to invest in equity market, convertibles are a great way to go. you can get a lot of the upside and stop on the down side on credit worthy companies. now, might also add that the convertible market has grown with 200% this year. so we have a lot of new issues to choose from, a lot of opportunities to choose from so we are very happy to look at

that as well so i think it's important that if you want to be in the equity markets and you want to reduce volatility, convertibles is a very interesting way to do and one of the best performing asset classes this year. >> all right traysy, gre tracy, good to have you. we appreciate it as well talking through these markets today. >> coming up, it's been a wild ride for oil this year starting $60 a barrel. dropping to negative 40. now back up. a legend on the oil world with his take on where we are going from here. stay with us 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. twhile the future of work professional or consultant remains a question mark, one thing is certain re-opening will be a journey. that's why salesforce created work.com to help at every step of the process, with tools like manual contact tracing to help prevent one from becoming three and three from becoming more. while displaying key information in one place on a customer relationship platform you trust. because here's one more thing we're sure of. relationships are the heart of business. so let's tackle this together. 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 to the exchange oil is down about 3% this week as fears linger a spike in coronavirus cases could stall the demand recovery as some reopenings are being put on hold already. i'm joined by harold hapl executive director and chairman of continental resources good to have you here, sir what is your overall sense of this economy are you concerned about the spike in covid cases >> it is concerning for all of us you know, you have to be careful. and we are here in oklahoma trying to do the best we can with the situation that we have.

and everybody is wearing masks and being very careful social distancing is really important. we're glad to see that the fatality rates are still going down here. although the cases seem to be coming up somewhat with all the activity that's going on >> sure. does oil at $40 a barrel, which we briefly hit this week, does that price level make sense to you? is that too high >> it's not too high you know, we are seeing demand come back. obviously, you know, gasoline usage has been pretty good a lot of people are driving a heck of a lot more since they can't fly. we are missing all the jet fuel sales and that 8 million barrels is hard to replace out there anyway, i think overall we're pleased that the market has

found solid footing and the pace of demand coming back is very steady you know, we're not back to where we were. but we are certainly better than we were a few weeks ago when demand was 80% of what it had been we are 10% up from that now. >> that is absolutely encouraging. speaking of the price of oil, you are here on a very important day in that regard, a historic one really you are launching the american gulf coast select, a new benchmark for u.s. crude oil prices tell me about it it won't trade for another month or two it will trade not on the cme, interesting point as well. what is wrong with wti >> you know, first of all, you know, you mentioned you. and really american gulf coast select came out with a task

force that is broad across the entire industry. we call it the entire industry community has brought this about. it takes a i crisis to bring something like this before and certainly we had a crisis that occurred with the lack of demand and all that. from a land tklocked market situation. most of the major markets around the world, almost all of them are for woeater borne barrels most of the oil produced today never goes through cushing, oklahoma so you could move to water borne barrel at the gulf coast and that's what this is all about.

and it will be but we have gone through the very first stages of creating this and with both argu s&p lattes, the price reporting agencies taking this pup. this is a great thing that has occurred for american production here in the u.s. so it's a great day for this industry and i couldn't be happier today with how this has begun. it is in the beginning stages. i want to make sure everybody knows that and it takes the entire industry to create a market like this but we have locked this well under way. we are very pleased where we are at today. >> and perhaps it will be part of our commodity checks here in the future what would the price be today? generally lower or higher than wti?

>> you know, it is going to be probably superior. because it's on the water. it's ready to go you know, we're exporting a lot of oil 3.3 million barrels week over week last week and i believe that was the number and so, you know, with drilling over the past 10 years has been tremendous put us number one producer in the world. and certainly this is a market that will be very competitive in the future you know, it's not there to replace cushing wti at all it is a very competitive market situation out there. but it put us more on a level playing field with the rest of the world, global markets. so we feel very good about where we're at and certainly want to thank both

plattes and argus for following this and putting the markers out there and announced that today it's a great day for this industry >> we're pleased you are here to talk to us about it. harold, it's been a pleasure thanks so much >> thank you harold hamm of continental resources. facebook shares sharply lower as verizon and union kwun leave. the exchange" is back in a couple

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the dow is the worst performer nasdaq is down 1.5%. you can see the sector board behind me. no green to be found this is a broad selloff. by far the worst sectors are down at the other corner with financials we have been speaking a lot about the problems with the banks today, the fed's decision to restrict some capital return. the financials are down nearly 4% communication ervices, energy, industrials, materials, those are also some of your worst performers so pretty broad basket individual stocks include shares of gap taking off after their partnering with kanye west this collection will be called yeazy gap. it will debut next year. gap getting a welcomed respite up 23% shares of office depot going the other way. they are sharply lower a 1 for 10 reverse stock split effective at the close of trading june 30th.

shareholders approved it at the annual meeting in may. odp is down 8% to just over $2 a share. finally take a look at boeing. pairing some of its earlier losses the key faa test flight of the 737 max will happen next week. several new reports out there today matching this end of june timeline sources saying the financial decision could come today. boeing shares down 2.5%. leslie picker has our cnbc news update. >> here's what's happening at this hour. a stabbing incident today at a glasgow hotel is not being treated as terrorism the suspect was shot dead by police the hotel has been housing asylum seekers during the coronavirus pandemic in mexico city, heavily armed gunmen attacked and

wounded the city's police chief, two of his security people also killed along with a woman who happened to be driving by. european union is reportedly moving closer to banning u.s. citizens when borders are opened july 1st according to a drop list being considered by officials. nike ceo john don ho is warning that layoffs are coming. they are expected in two waves, the first in july and one in the fall and that's our update for this hour back over to you, kelly. thank you very much. banks are sinking today with the fed imposing limits on dividends and buybacks both on pace to end the week down 10% we will look at what's next for the sector stay with us

welcome back to the exchange shares of facebook sharply lower by 7% today as verizon and unilever join the growing list of advertisers boycotting the tech giant julia? kelly, that's right. unilever is one of the largest advertiser in the world. boycotting facebook and twitter, building on a protest organized by the naacp demanding facebook crackdown on hate speech and racism saying in a statement that through the end of the year it will not run brand advertising in the news feeds of facebook, instagram and twitter in the u.s. saying, quote, continuing to advertise in these platforms at this time would not add value to people and society and we are confident this approach will lead to more productive

progress now, to put this in context, unilever spent $3.2 million in the past month on facebook and instagram ads according to an analytics firm called pathmat pathmatics we have developed policies and platform capabilities designed to protect and serve the public conversation and as always are committed to amplifying voices from under represented communities and marginalized they told advertisers in an email we obtained that boycotting is not the way to accomplish change at the social media giant. kelly. >> interesting julia, stay right there. if the list of companies continues to grow, what would it mean for facebook's bottom line?

brent fill at jeffries it's good to have you. does the boycott change things for you? >> thanks, kelly it does not. it is clearly not great news but we think more advertisers are joining facebook than leaving. there are 8 million on the facebook platform. what facebook has done is let small businesses get online easier and today, there are 800 million global small businesses. 160 million use facebook only 5 million or 6 million pay. there was a tremendous opportunity. it is off the charts relative to other means. nothing against unilever i'm not influenced to buy a dove bar of soap by looking at an ad from unilever. i need soap. everyone needs soap.

when patagonia or others pull out, they are amazing brands that do great things for the world. and i think clearly if you see a stampede of more, we will be concerned. but, again, more are joining than leaving >> we had a lot of advertisers leave or threaten to boycott the platform back then facebook shares choppy for a while. did they all eventually return and do you think some might possibly leave for good? >> so facebook was $130 stock during that time and i think ultimately what we continue to say is that there's more good on the platform than bad. it's a neutral platform, open platform that's what zuckerberg intends it to be so we think obviously everyone is going to have their view. but i think this goes back to you get a couple big vendors that pull off, it is not great

but if you have to put it in context of where we're at. there are only a few great digital platforms that continue to benefit we have continued to see these headline risks and headwinds ultimately we think you have to look at thebigger picture. roi is incredible. more people are going there. we think this will pause through. >> julia, they said they are leaving the platforms through the end of the year? >> through the end of the year they said they might change their mind the real question is because unilever is such a big advertiser, whether other companies, such as procter & gamble, feel they want to join in verizon also meaningful. i want to let you know moments ago we got word responding to this move from unilever saying they invest billions of dollars to keep the community safe and work with experts to update their policies knowing they open

themselves up to an odd kwreuau. and how much hate speech they do take down. what i have been hearing from my sources in the advertising world, what they want is they want facebook to take down content that's racist, even if there is no imminent harm from it or threats there of harm even if it doesn't seem like the harm is imminent. it seems like what they want is facebook should go one step further in terms of what they think is inappropriate on the platform which will require a decision by mark zuckerberg to change where he is drawing the line. >> brent, would that be a bigger threat to facebook stock or if they do more content moderation, hiring more people what julia is describing would be a much bigger change in strategy >> i think they had been policing content and using a.i. to do this so they don't necessarily have to hire people in silicon valley

to police content. they are doing that. i think there's so many other revenue initiatives that we see, again, we talk about facebook shots. what they are doing for small businesses that have been hurt through covid to shut the physical storefront. they are going virtual and can do it through facebook we think it is a tremendous catalyst so i think, again, we have seen these issues from time to time i think directionally they are had he going in the right direction with advertisers and i think they are all going to come back i don't think they will boycott the platform for good. many said it is a one-month boycott. so, yes, short-term the entire industry has seen a headwind that originally out in minneapolis -- they are putting their projects on hold in the short-term we think it will come back in the third and fourth kwaerbgqua.

>> it was $130 during cambridge analytic analytical the bank stocks getting hit hard after restrictions on dividends. we will dig more next. >> home builders are selling off. mortgage forbearance numbers erasing half the improvement we have seen since d-y.mima ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey ♪ yeah ever something's gone mogotten into the office.m, i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it? i do.

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the fall they don't have that 12-month forward looking certainty on capital levels and capital return plans they get each year at the stress test, hence share prices are lower dividend is what is grabbing the headlines. banks cannot pay out more than trailing four quarters of earnings they cannot have over 100% here's where we stand on that measure. most banks look fine for now a few don't. they are widely expected to cut their dividend citizens and huntington are above 75%. but all banks could have issues soon if they have multiple quarters of low or no earnings like in q1 as they are he place good quarters from last year. on the capital side, it looks like goldman sachs is stress capital sits below their

required one they have to rectify that. it should be very achievable work morgan stanley has been the most positively surprising, required level falling significantly because of the etrade acquisition. the bottom line, things are fine for now. 2% share price declines before the big broad markets sell off another big round of tests in the fall and the fed looks like it is prepared to be tough on the banks at that round if the economy doesn't improve between now and then pretty hefty share price declines >> another interesting validation that you pointed out earlier this week. the disparity of goldman sachs if this is validation of the direction morgan is going, what options does it leave for a goldman or wells fargo if they were trying to even think about that right now >> interestingly goldman sachs was year to date performers but

down today morgan stanley, we should point out, on absolute basis, still has one of the highest stress capital buffers required it's just that it improved the most relative to last year and more so than expected. and part of that is that the etrade acquisition diversifies their earnings base better than it previously had been, meaning they now have to hold slightly less capital it is a weird one. they still have one of the highest capital levels that they have to hold in order to prove that they're safe. it has reduced from a high level. we are getting a huge amount of stock differentiation now. wells fargo versus morgan stanley. the most stark one we get more specifics out of individual companies >> maybe it is a stock picker's market this year thanks so much see you in a little bit.

as the surge in coronavirus cases renews doubts about the recovery and black knight reporting the number of homeowners in for barrens rose after three consecutive weeks of declines. joining me is andy walden. good to see you back we have thought or hoped the story was going to be over what's going on. >> that's exactly right. it sends a clear message that we're not out of the woods yet in terms of the coronavirus in terms of the mortgage and housing market after three weeks of continuing improvement in the for barrens trends in the market, we clearly bucked the trend this week >> it says here this erases half of the improvements since seen the peak of may. we can assume the hardest hit parts of the country, is that prompting more layoffs people thought they might be back in their jobs in places in the northeast but they aren't reopening the way they hoped can you get any sense of that?

>> there are a number of different drivers. one is potentially more benign we just passed the 15th of the month. we have seen in the prior month, when you see the late fees charged on mortgages, it proms homeowners to go out and initiate the claims. so perhaps that. another thing we have seen this month, a large number of plans set to expire here in the month of june, perhaps homeowners took them out as an insurance policy. starting to see some of those economic numbers, covid case rate rises and they are sticking with the plans a little bit longer than they otherwise would have been. >> we just had the mortgage rate dip below 3% you have up in buyers coming in. overall, does this you think negatively impact program the spread on mortgages or trickle back through any number of ways? >> surprisingly, when you look at originations and lending spreads, the primary versus secondary, you have seen that

fall a little bit, helping to drive down the mortgage interest rates, to kind of put upward pressure on the home buying demand it will be interesting to watch that the next couple of weeks to see if it shifts a little bit. >> and finally, as you said, this also could be a little bit of a monthly effect. we have people seeing the late fees and thought maybe now is the time to enter for barrens. this program will be around through the end of the year. we could be facing a number of months in which a trend we thought was a one-time trend could be somewhat recurring, right? >> that's right. you have monthly cyclical trends we will keep an eye to see what impact that has as well. >> that's a great point. andy, good to see you again, sort of. thank you. we appreciate it

andy walden with black knight. stocks on pace all 11 sectors in the red. we have a trader how to navigate the vol taillight and a few metouyig aerhis. stay with us while the future of work remains a question mark, one thing is certain re-opening will be a journey. that's why salesforce created work.com to help at every step of the process, with tools like manual contact tracing to help prevent one from becoming three and three from becoming more. while displaying key information in one place on a customer relationship platform you trust. because here's one more thing we're sure of. relationships are the heart of business. so let's tackle this together.

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>> this is not a choice between the health of the american people and a strong economy. there are profound health implications to the lockdowns through which we just passed i heard a statistic not long ago that at a task force briefing that in one jurisdiction -- >> that's vice president mike pence speaking at the coronavirus task force briefing. we will bring you more headlines as we get them banks are getting crushed and covid cases are on the rise. are investors in for more pain the founder and ceo of kkm

financial. jeff, good to have you here. it is a selloff today. what is the market telling you >> we have been trying to measure local and state government reopening, businesses reopening. be mindful the volatility is not even 35. we're looking to rebalance sectors and specific numbers >> what gives you confidence this isn't the beginning of deeper slide for the markets. >> great question. in this time of emotion, kelly, it is so important for tiffin vestors to rely upon the technicals we look at the technicals in the s&p 500. we see it's still above trading average as well as the 50-day moving average that strength has been revealed. it is quite constructive for the marketplace. if we consolidate, it allows

markets to move higher that is providing a lot of confidence right now >> with that said, you think this broadly speaking is a buying opportunity >> i think it is a buying opportunity. two weeks ago we were talking about the retail sector. buying gap two weeks ago i want to look at some of the software names these are names like amgen, horizon therapeutics a sense of urgency as well as technology is going to persist we sold you this week for the first time in a year and a half. we have checked and harvested gains in utilities and walked away from the consistent prudent approach of owning utilities. >> i would have been more interested if you said you were selling big tech >> no. our models are telling us it's time to put on more data

staying above the averages, showing relative strength. we are walking into the higher beta names by the end of the day, we are selling utilities for a reason, kelly. >> do you know anyone who wouldn't want to own facebook, amazon, google. >> no. it continues to dominate we see them being a player looking at force, looking at oracle names you wouldn't think of typically. these are names that will profit in the wake of covid-19. people are finding more and more software solutions adobe is another great name. the sub sector will continue to thrive not just in q2, q3. this is a theme moving forward in 2021, 2022. global institutional investors finding their ways to the

technology and the software. >> jeff, a pleasure as always. thank you. >> you're the best, kelly. >> kkm financial that does it for the exchange today. next hour, the airlines are getting hit hard today executives are heading to the white house to meet with the vice president about their future we will look at the long-term compact on the airlines. i will join tyler mathisen on "power lunch" right after this ♪ ♪ yeah ♪ ♪ y-yeah ♪

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(music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. good afternoon, everyone, and welcome back to cnbc i'm tyler phragt smath sin and s "power lunch". reopening in america has led to a record surge i