good afternoon, every one. welcome back i'm tyler mathison and this is power lunch. rally to kick off the week the dow at session highs

487. in part because of a big move in the dow in boeing as it gets ready to test that 737 max for recertification. the s&p and nasdaq is higher but by lesser percentage gains there's 10 million global cases of coronavirus half a million deaths. the daily case count here in the u.s. hitting a record high over the weekend. we'll have more on that. facebook, a big laggard today. down 10% in the past week as big advertisers, it's up today as big advertisers pull millions of dollars from the social media platform power hundred lunch starts righw thanks the the dow and s&p jumping back into positive territory for june and on track for the third month in a row of gains now. let's head to dom for more on these markets.

>> we need a few more hundred points to get back what we did lose on trading. dow industrials 25,505 is right know hovering near the highs of the day the s&p 500 a relative laggard that's what's driving the dow today. check out what's happening large caps versus small cap stocks we talked about the extreme outperformance this year of large cap stocks remember, they were tracking pretty closely earlier on and as we hit the covid lows, you can see the gap widening out widening out here. small caps out performing today. we'll see if they can continue to play catch up and then one other place to watch what's happening with the dow? tyler mentioned boeing, the biggest driver, over 100 point offense the gain because of boeing alone let's throw in apple

those three stocks make up 40% of the dow gain today. back over the you. >> thank you very much weighing very heavily on sentiment. >> reporting record number of covid cases is driving it to the highest we have seen more than 40,000 cases were reported yesterday that's dune if 44,000 on saturday in the united states. there's actually more infection going on in terms of the hot spots around the country, florida now claiming the top three spots in

terms of fastest g esest case w. tampa, orlando and jacksonville. san antonio, texas and phoenix rounding out the top five. meanwhile, gilead making news today. announcing the price of its drug remdisivir one for u.s. private insurance and another for governments around the world the private insurance price is about 30% more we talked with gilead ceo about how they reached these prices this morning >> whether you're covered by a private insurer, a government insurer and whether you're uninsured with covid-19, there will not be an issue with access.

it's been a key tenant of the trump administration now we have the drug priced 30% higher than other developed countries. >> all right thank you very much. stocks have rebounded from friday's big sell off as you can see on the screen there. a lot of green today citigroup has struck a more bearish tone in its recent quarterly survey 70% of asset managers expect a 20% correction that's more likely than a 20% move hire in stocks. are they right let's talk to scott. kevin, let me start with you it feels as though the market is very, very headline driven today headlines on boeing helping the dow a lot. headlines on apple helping a lot. last week it was concerns about

virus spread that all adds up to me and the coming weeks it's going to be about earnings that all adds up to a market that is probably range bound between now and the year end we didn't mention the election >> i agree with you, tyler we believe that the market is going to stay in this range of 2800 to 3100 with the reopening of the economy, we expected covid cases to go up we also expected hospitalizations to go up. the big thing is whether or not we see death rates go up as long as the death rate is lower, i believe we take one uncertainty off the table. the second is the election marks like certainty that's why we believe it's going to be range bound for the foreseeable future, at least for the next four months. >> scott, do you see market that

can move higher between now and the election day or one that is likely to be sort of caught in a zone >> we're a little bit more optimistic than kevin is our midpoint of our target range for this year is 3250 in the s&p and 3500 out at year end 2021. we have been talking to clients about we have big down days, big down weeks we want to step in there's a lot of people sitting on plenty of cash whether it's retail investors or professionals. there's money to be invested here it's all going to come down to consumer confidence or consumers, do they have jobs and are they confident enough to go out and spend money on discretionary things rather than sitting at home fearing going out because they don't want to catch the virus. >> how would you have answered that citigroup survey question which is more likely from here, a 20% increase in stock values or a 20% sell off?

what would you say, scott? >> for me, remember, tyler, we're about 7% off the recent high i would have called it a 20% correction you have to remember, we jump 47% off the panic march 23rd low. you hardly have any pull backs in there four or five to seven percenters that's highly unusual you couldn't cough you have a quarter or a third of that if you do the math from here, 20% is north of 3600 that's a bit much for us if i had to make the choice, i think all end correction from the recent high 20%, i'd vote for that every time. >> kevin, you and scott may disagree, at least a little bit on where the market is and whether it's range bound or maybe not so much as scott says. where you do agree is on the kinds of stocks you think will out perform. name a couple of the categories, sectors that you think are

poised to do better than the general market >> sure. we like technology we also like consumer discretionary and we like health care from the technology side, it's software and services. from the health care side it's medical devices and consumer discretionary we feel it's important because we believe 70% of gdp comes from consumption and it's important, we believe, once the market, the economy gets reopened the consumer is going to be a big player in that just for the record, even though i believe that we're going to be range bound until the election and get that uncertainty off, at the end of the year we believe we'll test the all high. around that 3386 level >> on that note, we will leave it thank you very much. we appreciate your time.

kelly. sentiment among top ceos is at the lowest since the global financial crisis more than a decade ago that's according to the business round table. let's bring in kayla for those details. >> corporate confidence didn't just fall in the latest business round table survey it was cut in half from march. the last time a survey of the top multinational executives was releas released according to the 136 chief executives surveyed they found the plans over the next six months for highering capital investment dropped dramatically from the most readings sales will rise from now between the end of the year. economic growth in the country is expected the to slow. executives suggest a negative 3.8% from growth domestic product in 2020. that affirms a significant economic contraction is under way. there's shared view that it won't rebound this year.

asked when their companies would recover to pre-covid levels, most ceos said they expect that to happen by the end of 2021 but nearly a third of respondents do not expect recovery from their companies until after 2021 this was the worst ceo confidence reading since the first quarter of 2009 during the last financial crisis. it's notable this is still above that level so it hasn't hit that record low but when compared to the performance of stock market, which has been relatively resilient, some of the commentary we could get in earnings call in a few week, this will be an important i understand -- indicator of out look >> ty. coronavirus cases rising across the united states a little lower than they were on saturday states like california, texas, florida are slowing down the reopening process in their statss we have those details and facebook under increasing fire as companies such as star buck,

clorox are some of the latest to pull millions in advertising revenue from the platform. we'll tell you what it means for the social media giant's bottom line when we pk icup after this break on power lunch

welcome back california closing bars in 7

counties including los angeles as the state deals with a new record increase of new cases mostly among young people. we have the details. >> over the weekend california added more than 10,000 new covid cases. the steep rise is causing state and local leaders to take some action on reopening the state. now it has more than 211,000 covid cases. that's more than an 85% increase in new cases in the last 14 days total icu levels are up more than 30% over that time span that's prompted california governor to order bars to close in z7 counties, including los angeles county he's recommending bars close in eight counties, including santa clara county, that's home to silicon valley the counties with the highest positive cases are in southern california those counties have moved more

quickly in reopening as a result, we're beginning to see some roll backs in reopening. besides the order on the bars, the governor has urged imperial county to reinstate shelter in place and in san francisco, the mayor has temporarily paused the city's next phase of reopening that included hair and nail salons and museums those reopenings were scheduled for today. back to you guys >> what is behind the spike, as far as people can identify and can it be pinned directly to the reopening or could it be for, for example, protests that took place over the last month and there was not much social distancing there and people infected one another what >> that's a great question a lot of people -- there's so many different factors you mentioned the protest. there's more people being tested that factors into it people are saying the reopening and the behavior of people are all contributing factors

for instance, i grew up in southern california. i have a lot of frepdss and family in orange county. my friends and family are telling me down there a lot of people aren't great at wearing masks. my best friend said she was heckled at the library for wearing a mask by an elderly couple you're seeing that as far as behavior we're seeing the second phase in behavi behavior, at least that factors into it in central california, you're seeing little hot spots of farm workers getting infected we're not seeing it to the scale of the meat packing industry but that's something we're watching. back to you guys >> all right thank you very much. kelly. california is just one of the states in new cases. he's director of public health

it's great to have you back. what would you say the biggest change since the last time we spoke. >> the biggest changes we have seen continue jump in the numbers. much worse than when we spoke a few weeks ago. >> what do you attribute to that to is it community spread the one that once it starts it's difficult to stop? >> absolutely. it's a slippery slope. once it start it's difficult to stop and spreading like wildfire here in arizona. unfortunately, that's why we see such a huge jump not only in the record number of new cases every day as well as strain on our hospital system with our beds being taken up by covid-19 at a time which is summer that we don't have as much folks in the hospital, we really look for in our hospital system like the height of cold and flu season sf >> tell us about that capacity what are you facing?

are you going to have enough beds and are any further closures in that area or that state, you think, going to be likely >> well, i definitely that it's unpredictable in terms of where we go from here because the numbers are continuing to rise and the beds are beginning to disappear. we don't know if we'll have enough beds. we're activating surge capacity. we're trying to expand all of my colleagues among all the health hospital systems are noticing the trend in the wrong direction. having to take care of folks the problem is that people think we should do have enough health care capacity for covid. that's not the issue we still have the chronic diseases that people have. we have people with dyne diabetes, people getting heart attacks, strokes, people with cancer all sorts of reasons to go into the hospital if the beds are taken up with covid-19, there won't be room for us to take care of you with your chronic disease people may not die from the coronavirus but you'll die from

other things >> doctor, i'm curious, i'm going to ask you one of my favorite compounds questions and the first one is simple. have we bents the curve but the second question is more nuanced. there's a lot of reasons given for why cases seem to be rising in states like arizona what do you put your finger on is it people not paying attention to social distancing people not wearing masks is that the most important thing you can do it may have been demonstrations where people shared space a little too closely what do you think? the reason for it is all the reasons you mentioned. it's people not socially distancing, not wears face coverings. any setting whether it's in bars, night clubs or being close

in the protests. the protest is a bit better being outdoors but being in doors is is worst be close ventlation systems with not wearing masks and not physically distancing all those combined together have put us where we are now. we need to take action i'm afraid just wearing mask alone won't do it. we're really going to have to re-evaluate the different phases of reopening we'll have to look at what venues make sense to stay open i think we have to look at other states like texas, closing down bars, florida stopping alcohol sales and bars because they identified the governor of texas noted is that bars are where folks congregate we really have to reevaluate what's open and what's closed in order to save lives. >> you make a very interesting case there we have to wrap it it's not just the idea of wearing masks. that alone won't do it you say we have to look more thoroughly at all of the things we're doing or not doing that may be contributing to this.

we'll have you back again soon and hopefully by then we'll have a bit better news. thank you, once again. >> i hope so thank you. we have news alert on the theater chain amc. julia has it >> amc is delaying the opening of its theaters by about two weeks to adjust for the delayed release of the big blockbusters that were expected to be released in july now they won't be released until august you see amc shares trading up about 1% today tyler. >> thank you very much still ahead, rally on wall street there you see the nasdaq up about 1% this comes after friday's sell off. tech stocks lagging the broader rally this day industrials and materials are leading the way. look at this a wild ride for tesla since

going public ten years ago has it been that long? yes. shares up 4,000% we'll tell you what's been fueling the stock when wrern tethise tu to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. but a resilient business you cacan be ready for it.re. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or the city government going digital to keep critical services running.

you are creating the future-- on the fly. and we are helping you do it. vmware. realize what's possible. snhu let's you transfer up to 90 credits - [announcer] if you've tried college but never finished, toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu. woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. thats where i feel normal.s an hour, having an annuity tells me my retirement is protected.

protected lifetime income from an annuity can help your retirement plan ride out turbulent times. learn more at protectedincome.org. welcome back, everybody. tesla marking ten years as a publicly traded company. the stock is up. 4,000% 4 to 5,000 percent, but who's counting, folks? that's the increase from the ipo ric price. it's been a road with lots of twists and turns and especially so for the ceo here is a closer look at some of the company's biggest

milestones >> we had an incredible positive outcome from the smartest investors in the world. we have an amazing product to show you tonight >> he said he's thinking about taking tesla private 420 being the price he would do it add >> i mean it's legal, right. >> bringing out the model y.

>> you think you can work this out with the fcc over the next two weeks? >> welcome to the cybertruck unveil >> oh, my god. today surpassed $1,000 per share for the first time >> there you go. a colorful company with a colorful entrepreneur atop it. for more on tesla, let's go to seema for trading nation >> that was a fun package. tesla up more than 130% so far this year. let's bring in the trading nation team. do you think tesla can maintain its leadership in the face of rising competition i'm reading about 12 new

electric vehicle models coming to market this year? >> certainly i do think they can and tesla is just had this wonderful history of proving every single person wrong. it's very tough to bet against this company, this stock or elon we have been in the same camp we have been in for the long time it's not a fundamental play. it's play based your belief and him as a visionary, as an entrepreneur and this movement it pays to buy this company and this stock when it's beaten up and everything thinks it will go out of business and he comes and pull a rabbit out of the hat and the stock is off the race. >> market cap of $184 billion versus gm which is at 36 billion and ford at 24 billion can it continue? >> it's not the tactical idea it was in march and april when it corrected but still screens positively in our trend work for that reason we stick with it here is a stock that's trying to

breakthrough its february peak i think from a trading basis, like to see the stock price hold above its 50-day moving average at around $900 support of this break out will occur sooner rather than later. more broadly speaking, we continue to expect these higher growth companies to receive a premium in this low rate and low commodity world. you have top down portfolio tailwinds the boot stick with it. >> all right there you go ten years in thank you. for more trading nation head to our website or follow us on twitter at trading nation. kelly. at least 15 companies are drops facebook from their friends list it's starting to have a ripple effect for other companies what it means for facebook we're looking at stocks that are benefitting as americans stay at home this one was quadrupled from a

low it hit in april. this ceo joins us, coming up

ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. the number one brand to support silky hair, glowing skin, and healthy nails. beauty comes naturally, only from nature's bounty.

welcome back, everybody. here is your cnbc news update. a former policeman accused of being the golden state killer has plead guilty to murder joseph james diangelo said he would plead guilty to 13 murders and acknowledged dozens of rapes as part of a deal to avoid the delt penalty the hearing was held in a ballroom to have social distancing the mayor says the move would enable funding for youth and community programs and be part of 8 billion dollar in cuts

due to the pandemic. india is banning 59 apps with linking to china citing security concerns. banned apps include tik tok and we chat. you are up to date that's the news update this hour kelly, back to you >> that's a pretty big move. thanks very much let's check on the markets the the dow just off the highs of the day but it was up 500 points a moment ago still hanging onto a 465 gain. we'll see how boeing's test flight continues to go it's been up about 9 to 10% today. the s&p 500 up about 1% today. the nasdaq up a little less than that the sectors leading the way are industrial, materials and energy a little bit of a rotation playing out in the markets today. the oil market closing up for the day. let's go to frank holland

>> it's a boost as an up tick in virus cases remains a concern. finishing in the green for only the second day in the past five. wti, that's the u.s. standard. more than 3% higher. again, second positive finish in the past five. this comes as chesapeake energy filed for bankruptcy spurred by lower oil prices some big oil names, both of those trading higher today turning to natural gas that surging more than 10% today. largely on expectations. the summer heat could raise demand in the near term. back over to you thank you very much. the list of companies unfriending facebook ad network is growing by the day. in the last few minutes ford and best buy saying they will pull advertising. joining those companies that you see there. companies like clorox, coke, starbucks, verizon they are pulling ads and other social media as well

with all of these companies provide the critical mass needed to force change, specific lip at facebook joining us is mike jackson mike, always great to see you. i wonder here how, if you can, unpack how much of this pull back from facebook is driven by concerns about facebook and how much of it might have happened any way as companies cut back on advertising? in other words, are they using this as cover to get out of spending what they are spending in advertising on facebook >> great to see you as well, tyler. it's interesting because after the death of george floyd, as you know, a lot of companies came out and made some very, very heartfelt statements acknowledging the social and economic issues that we have to deal with in this country. acknowledging was one thing.

i think you're finding socially conscious companies led this with the anti-defamation lead and naacp. i truly believe a lot of these companies are looking at the statements that they made, the commitments they made to shareholders, employees and their communities and taking action to force facebook to change >> if you were advising, mike, a company on its advertising spend, would you advise them to boycott facebook based on what you know of facebook's procedures, practices and what appears on its website in. >> you know facebook is a very effective and really efficient digital advertising medium the effectiveness of the platform is not in question. they also have policies and practices around enforcement of hate speech, but it's selective enforcement that is making these

advertisers very, very uncomfortable. in the short term, i would advise clients not to advertise on facebook, follow the lead of a lot of the brands that you mentioned earlier and literally force facebook to come to the table and finally after four or five years of just very reckless behavior come to table and make meaningful changes >> woe're joined by joanna ster from the wall street journal i'm glad you could join us mike just used the word reckless i was going to begin my conversation with you by saying let's play a little word association. let's do that. when i say the word facebook, you say. >> irresponsible a good word >> sure. that's your word >> seems like a good word. >> why do you say that >> that seems like a good word can i revise this is like mad libs.

this is a tough game of mad libs you put me into it i would say irresponsible because it makes a lot of promises and then seems to forget about them. they say they will do something and they don't always do it or just give lip service to it. i think we're seeing a little bit more than that right now i think the next couple of days and weeks will be very important for facebook here to prove out, make some promises but put a lot of money and power around the promise, around the regulation of speech and around moderation and around policies that they are really going to say these are the policies and we're going to stick to them >> irresponsible is sort of akin to arrogant. do you think the leadership team has from time to time been arrogant >> i would say that of any big

tech company but i would say facebook, mark zuckerberg and his leadership team take a stand. they say this is what we're doing. they bow when they need to because of pr pressure, because of market pressure i think we'll see that here. how far are they going to go how much is mark zuckerberg and his team going to waiver you're putting up a big amount of money for facebook. maybe that's what finally needed to happen. >> mike, is this the humbling of mark zuckerberg? >> i don't think so. i think mark will continue to be mark it may be the start of the humbling of facebook though. they've got employees all over the world. they've got employees that are very supportive of what's happening across america those employees have raised their concerns internally. often times they are bound by

ndas from speaking publicly. it may be the humbling of facebook internally. >> is this likely to play, if facebook responds and is perceived to be censoring content, does this pull them into a political debate, which is the last place they want to be >> they're already in that political debate based on their behavior and or lack of enforcement of some of the policies that they talk about all the time i think that debate will be there. i do think, and begun, i don't have the actual solution for mark but i do think there's ways for them to gain the confidence of the advertisers, gain the confidence of people that love the platform and do a much better job enforcing the policies and practices >> we're glad you could join us

there. mike jackson, always great to see you. kelly. thanks so much stocks are staging a comeback today. the dow up more than 500 points earlier and boeing the leading the way on hopes the 737 max will finally get back in the air. there's the dow at 30. only one name is in the red today. imagine where we would be if every company could make a deal with the kardashians gap soared on a deal with kanye west we'll tell you which company is altting big pop today thanks to de with his wife stay with us to make up.

miles to the job site. the campsite. and anything else we set our sights on. miles that take us back to the places we want to go. and to the people who count on us. so, let's roll up our sleeves. because we've got miles to make up.

apps except work.rywhere... why is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com we have breaking news out of

new jersey >> new jersey is basically pausing this latest part of its reopening. the governor just saying in a tweet and also in a formal announcement that they will not start to loosen restrictions on indoor dining this week as planned. they are suspended indoor dining and the governor cited the fact that other states that have reopened indoor dining have seen a spike in coronavirus cases earlier today governor cuomo of new york indicated he is going to be watching those virus numbers very carefully citing the risk of indoor dining. he did not put a pause on that he's basically going to evaluate it but governor murphy of new jersey is saying that indoor dining will not start and put an indefinite hold on that as new jersey sees a steady move in cases but not a spike. kelly, back to you >> maybe until the first frost it's going to get interesting if this lasts for several more months makes a lot of sense to me

i don't know about in your neck of the woods but in ours they have turned every weekend into a street fair and festival trying to make the most of it every one has tables outside you hope that the restaurants can adapt that way this obviously is another financial blow >> it's another financial blow interestingly enough, the governor of new york saying that he is going to require the malls to put in different filters that can block the coronavirus. he suggested that restaurants and other businesses try and do the same that is another cost whether the restaurants choose to do that and whether that would change in new jersey case, the move to open indoor dining remains to be seen it's a blow to the restaurants but the case studies in other states are indicating that indoor dining provides a risk. >> thanks very much for that news we appreciate it let's get to today's power movers we begin with intercept pharmaceuticals. the stock is plunging 30% after

the fda rejected its treatment for liver disease. coty is surging higher they own 51% of sister kylie jenner company landcadia holdings it will acquire the online gaming operations of the golden nugget from owner tilman fritita. the deal is expected to close in the third quarter. the new company will trade under gnog under the nasdaq. we'll ask tilman about that and much more on wednesday tyler. tuesday is wednesday okay we'll figure it out. the bond market is open. rick is there. tracking the action at the cme hi, rick >> hi, tyler getting a little curve

steepening 44.3% was pending homesales. bl blew the old record away it still seems to be on the soft side march 1st of lgd the investment grade etf if you look at the month to date of hyg, a completely different story. it's going out at the lows of month and it's at the lowest level since mid-may. finally, the dollar index. boy, nice bounce last tuesday off unchanged on year. it continues to hold well considering some of the questions still regarding the economy. kelly, back to you thank you, rick. coming up, we're looking at some stocks benefitting as americans are stuck at home. auto zone, advanced auto parts, o' riley up 30%. people are working on their cars those gains are nothing compared to our mystery chart

3%. stock is up00 we'll talk to its ceo and reveal it, coming up.

millions of americans having lots of new found time on their hands have deled of into hobbies and for some that means working on their cars. for the auto parts retailers, that has been a welcomed boost to business during the pandemic. dominick has more on that story. >> as much much as it could be a hobby to some people, it may be a necessity for some as well even though auto mechanics are considered an essential business and much of america, it's still didn't prevent americans from going out and taking care of

their cars and that means spending money on those purchases. so first of all, take a look at the consumer discretionary sector overall this particular etf that tracks it, the spider etf versus the s&p 500, you can see a slightly outperformed especially since the covid-19 lows. now take a look at the auto parts retailers. advanced auto parts, autozone on a year to date basis, still negative but check out what is happening specifically in just the last three months or so these particular names, autozone up 30% and o'reilly automotive up 33% for a lot of investors and traders out there, it may come down to this notion, kelly, that as people spend more time at home because of necessity, are they taking care of their cars more? kelly, you and i both know that i have spent money at the auto parts store doing stuff like taking care of my car. it might be something worth

thinking about if hypothetically we go back towards another resurgence of the covid-19 virus. >> this is just the dom waiting in line chart. but was that -- were you taking care of the car because you wanted to or had to? >> the stuff i would say is this, i took advantage of the essential workers that were auto mechanics. but i did do the cosmetic work on my car and that's why i went to the auto parts. >> you waxed it? >> i actually did some paint and plastic restoration, sun damage from the dash and everything plastic in the car. >> we have a couple in our driveway if you want to come take a look. >> i have great rates. i'll get you a good one. >> dominick, thank you let's take a look at our mystery chart before we reveal it. you'll be sleeping well if you own this one it's up nearly 300% since early april and it will be revealed coming up. you can always watch us or thcnheo o us live on t gon e bc app ♪

♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey

welcome back it is time to reveal today's mystery chart. the stock that had been benefitting with more americans at home, purple innovation is up nearly 300% from the march low if you didn't heard of it, they design comfort products such as mattresses, pillows and weighted blankets out of the six wall street analysts that cover the stock, they rate it a buy it's great to have the ceo of purple with us congratulations. >> thank you, kelly. >> we spoke with an analyst at bank of america a couple weeks ago who said that the idea of buying mattress companies is a good way to not only get exposure to the stay at home trend but the idea that people are moving to the suburbs in greater numbers now, investing in their homes what can you tell us about the kind of business you've been doing the past few months? >> yeah, it's been remarkable. we've had spectacular growth since we launched five years

ago. which really happened over the last few months, it's been a shift from off line to online. on a units basis, it's -- we've been selling everything that we like and would have sold whether covid-19 happened or not what happens is just enormous shift from what historically been a brick-and-mortar category, we sell the premium mattresses and that's been typically 85% off line people going into stores and feeling it's a very feel base product, of course we have seen almost all of that demand over the last few months shift online and we've been effective at capturing that and it's just distorted our revenue up rather dramatically as well as much better margins >> so you used to have 85% of your business offline. all that has gone online and it has better margins i'm curious about the return aspect of the mattresses obviously with casper it's been a focus. how many people not just buy the

product but ultimately rend end up returning it. what is your term like >> we've been historically 60% online and 40% off line. that shifted almost entirely on line returns are a big part of the business in brick-and-mortar, typically you hear numbers in the 8% to 10% rate we've actually been able to get our returns downs to similar levels a lot is just based on how we've been able to bring our product to market. we're in over 1800 doors there's been a lot of ability for consumers to feel how different and premium our mattress is. we manufacture a very different technology the grid you see behind me is the basis of our comfort but we have been able to get our return rates down rather substantially which is quite different i hear than many others who are online players.

>> yeah. you also sell seat cushions, increase in that with people working home in their uncomfortable chairs how do people hear about your product? do you rely on advertising platforms like facebook? >> yeah. so we -- i mean we have a balanced marketing approach right now. what is amazing is -- and we launched many years ago, w. some viral videos more on the youtube side of things that really helped bring our brand and what is so unique about our product to life, started with a goldilocks ad with dropping a raw eggs on the mattress that no matter how hard you hit them, they just did not break. something unique about our surface. so, you know, word of mouth has been amazing for us. even with all of the advertising we do, it's roughly 30% of our revenue right now, word of mouth continues to be the number one way that people hear about our product and brand. and it yareally speaks to the quality and satisfaction of our customers. >> as everything is going

online, that word of mouth still works. joe, it's great to you have here congratulations again. we'll be watching the stock closely. >> thank you very much >> makes me want to go try one out. i have to take a look at those thanks everybody for watching power lunch. glad you could join us on a monday "closing bell" starts right now. >> kelly and tyler, thank you very much. welcome to "closing bell." i'm sara eisen we're watching the stock market. it is starting on a high note. s&p 500 is up 1% let's look at what is driving the action right now in the trade. there are worrying trends across the country. new data showing home buyers continue to get back i