being an example, a great report last night it gives you that cyclical push without the head winds that some of these other areas like industrials are faced with macro concerns so that gives you some flavor for what we're thinking about tech >> thank you we appreciate it tyler, good to see you for a few short minutes. pick you back up tomorrow. >> it was our best 14-minute show ever. >> see you tomorrow. >> welcome to the closing bell this afternoon hey, morgan, who's in for sara the dow is lagging today largely due to boeing. let's look at what's krooifing the action u.s. consumer confidence rebounding in june but the recent surge in covid cases is raising questions about how long the rebound might last on that front, dr. fauci warned today the latest outbreak is going to be quote, very

disturbing and said it could top 100,000 cases per day. and we are preparing to close the books on what has been a rough first half of the year it's included a painful, record breaking sell off followed by a fast, record setting climb back up stocks set therefore for their best quarter in decades. 59 minutes left of the session morgan, we are up a full percent on the s&p 500 >> yeah, we're watching that last day of the quarter, last day of the first day my goodness. coming up, as we wrap up the first half of the year, we're going to focus on why not work from home. twilio stock's up in 2020 we'll speak with the ceo about the demand for his company's cloud services during the pandemic mike is tracking the market action kayla has the highlights from fed chair powell and secretary

mnuchin's testimony on capitol hill and joining us to look ahead to the second half of the year is lori but mike, let's start off with you and a look at the market >> this is a good illustration of the old say a iing don't sho a tulle tape kind of a slow preholiday week we have pretty low volumes and yet there's this upward drift in share prices driven by those liquidity beneficiariebeneficia. we basically regained the levels we had last thursday friday was a pretty weak today recouped that. and the market is trying to rectify what would otherwise be this kind of declining, lower highs, short-term pattern, but really openly what matters is market seems to have held this area for now around 3,000 and really not a lot of downside momentum given the liquidity backed, that leveraged investors don't seem overcommitted to stocks nobody has where nobody has to sell on pullbacks. still working on the highs from

early june not quite there yet. really, this is a reflection of things making new highs that are not just stocks. today, gold, new high. inflation protected treasury, new high intermediate term treasuries, ne essentially, a lot of stuff is working. the risk parody etf, af a billion dollar exchange traded fund that includes gold, xh commodities, treasury inflation protected security, regular treasuries and stocks in varying proportions and using leverage to try to mitigate the volatility of those things or target volatility. that's pretty much at a new high here this is a traditional stock bond mix. vanguard balance fund. that's outperformed stocks, too. so you see the smooth ride we've gotten based on what the fed has done like microsoft chrks almost act as bond like investments on days like today, guys.

>> yeah. fif looks like you got a haircut i'm digging it you u touched on it with microsoft. the s&p, it's up 19%, but the nasdaq composite is up 30% quarter to date and it's really been driven by these megacap tech names like microsoft and i think one of the key questions is going to be how sustainable is that moving forward given how much weight they've had both in the s&p and nasdaq >> right so the big five stocks of the market right now, all nasdaq stocks about almost a quarter of the s&p and they're about half of the nasdaq so clearly, that is where the bulk of the movement happens in these indexes. there has been a big rush of inflows into nasdaq specific fund funds. that often means it's due for a pause. i think you've seen a little bit of maybe some overheating and complacency in those names, but

the driving the big caps, they don't seem to be removing those forces anytime soon, to microsoft has a 1% yield. there's a scarcity of long time cash flows that's what keeps those stocks working. >> mike, thanks so much for that we just talked about, we're now less than 1% higher on the s&p and the dow is just fractionally negative jay powell and steven mnuchin just wrapping up testimony about the government's coronavirus response kayla has been watching and has the highlights for us. >> today's hearing had a cleenlgal and collaborative and decidedly middle inning feel as both congress and top two economic officials acknowledge there's more work to do to stem the economic fallout from the coronavirus which is presenting new challenges both fed chair powell and treasury secretary mnuchin said the stimulus programs have

largely worked and where they haven't, like ppp, with leftover money and the main street lending program which is seeing stamped interest from borrowers, they're open to making changes and refining the programs. one of the changes that came up over and over again was the need to help specifically overleveraged businesses and businesses where it might take quite a bit of time for consumers to change. like hotels, retail and commercial real estate and the fed chair specifically said there needs to be a solution for companies who just simply can't take on more debt. >> more debt may not be the answer here. debt doesn't solve every problem. you've got people who can't currently service debt so that's a serious problem here that needs to get fixed and we're racking our brains to see how it could be somethinging we could do by lending but that's really what we can do. is create more debt. >> so of course those conversations will take shape at the end of july, but both powell

and mnuchin said they are working with experts in their own agencies and members of congress to try to craft programs that meet the needs of the moment back to you. >> did we get any guide from the opposite side of the two as it were as to what the other side could be improving on? did we get my comments from the fed chair about specifically whether unemployment benefits for example have a huge impact if they're extended or not >> we did not get a lot of meat on the bone on that specific topic, wilf, but as the hearing was going on, there was some news made by mitch mcconnell, the top republican in the senate, who said that basic protections for unemployment insurance should be extended to give americans added relief. now exactly what that means and cwhat the nuance of how that wil play out in the next stimulus package is unclear that has been the focus of many late night conversations on capitol hill and in the trump administration about whether

that program as it stands, should continue as is or whether it should berefined. back to work bonuses or some other type of holiday to get workers back on to the payrolls and not collecting unploim insurance, but it does seem like it's a double edged sword at this point >> thank you very much for that. someone needs to get fed chair a slightly bigger mask that nose being too big and pointing out is a problem i know only too well. >> i will say, he pulled it down a couple of times to speak because perhaps he felt like he wasn't being understood or hurt, then he would pull it back up. >> it comes up a a lot >> it's becoming a meme, so i just wanted to clarify it. >> on this final day of the first half of the year, the major averages on pace for their best quarterly gains in decades. let's bring in lori, head of

u.s. equity strategy, rbc capital markets. great to see you thanks for joining us. clearly, we've had a massive bounceback following a big sell off. are you a a little surprised we've held on to this bounce back in light of the spikes in coronavirus cases across the country? >> you know, i would say that the recent action of the tape has been a little surprising we have seen consistently since february, the market has responded to news flow on the virus, vaccine treatment, stimulus, and we've been getting pretty bad news here in the last week and a half, so the resilience is a little surprising, but what i would tell you on a day like today, we're getting excite d about th market seems to be doing well, but look at the nasdaq versus the russell 2000 the nasdaq has become an expression of defensiveness. a way to play the market without really playing the market in a big risk on way. the russell is really your

cyclical risk on tool and lagging on the day so that tells me there's not a lot of conviction and as mike pointed out, sort of held that 3,000 level lately as we look to the back half of the year, we have to realize we're in phase three so to speak. we had the drawdown. it was very average with what you typically see in a recession. we had the initial rebound on par with what we typically see come out of a recession within the first six months of a recession ending now we're on to the new normal and what i see have extended valuations, in some case, worse than what they were when the market peaked in february. i see an uncertain outlook i think the market is vulnerable to bad news. the news flow is starting to turn and as i talk to investor, i don't see a will the of conviction in this rally, which tells me the institutional community at least is not ready to step in and by buy dips

>> to your point about nasdaq versus russell, i guess i could push back and ajouf got breadth hire energy higher, banks higher. almost as if this is a day where everything broadly is working. >> the financials and energy stocks are up, but they're not really leading the market today. and you know, i do look at the small caps as that real cyclical expression what we've seen is that the small caps have really been benefitting when investors really get some confidence back in the economic data we saw that trade really take off in mid may, for example, when economic data started surprising to the upside so yes, the financials are moving a little bit. i think the news flow on the stress test has confusing at best, but bottom line, i think you look at the small caps that has bellwether and it's echoing what i'm hearing in the institutional conversations i'm having the people who have lost their

jobs and think they're coming back quickly may not be entirely right. i'm hearing a lot of concerns about a second wave of corporate layoffs and you know, i really as i talk to investor, they're worried about the 20 election and looking for a big correction around that. so i just don't see a lot of conviction in the institutional committee and i think you're seeing that a lack of follow through on the small caps exhibiting that. >> yeah. and of course the small caps in the second quarter had become basically a proxy for the reopening trade overall. you could make the same case for copper and crude, some hospitality names as well. the fact you sound so cautious going into the second half of the year right now, what's an investor to do do you nak takai some money out of the market here and park anytime cash look at other asset classes? >> if you talk to the high network retail community institutional managers don't

carry a lot of cash. they shift into secular growth, nasdaq and tech stocks that position is pretty high what we've told people is to expect a lot of twists and turns so we want to keep a balance by your favorite cyclical areas. for us, our favorite cyclical exposure is through industrials. on the growth side, we prefer health care over tech, we're neutral tech, but we think health care gives you a much better valuation opportunity and we think utilities on the defensive side have made a nice case for themselves in cent months they didn't outperform in the initial drawdown tech stole their thunder youf got a safe place with dividends and attractive valuations i would pick the best. we're really stressing this idea of balance >> how do you explain the outperformance of the u.s. versus the rest of the world in this past quarter? i mean it applies, apart from the dax, it applies even when

you hook look a at the s&p to the nasdaq >> if you think about the trade off on the march lows, there's no conviction. we saw stocks outperforms and when growth yoet performs in the u.s., we see the u.s. beat the rest of the world. what we have noticed since mid may, i wouldn't quite use the word breakdown, but it started the falter a little bit. depending on what time period you look at, you're seeing strength and rest of world relative to u.s. one of the things we've talked about is investors seem to care about valuvaluations we think that's starting to have an impact on markets global investors have been very nervous all year about our election so we think that the fact that there's some concern about a changing of the guard in washington may also be contributing to some early rotation out of the u.s. and then frankly, if you just look

at the virus counts, europe has flat ped the curve new york has flattened the cu e curve. dr. fauci's counts are rising. what i've seen in the performance, as some of the work we do, suggests that u.s. leadership trade is starting to come under pressure for good reason >> thanks for joining us >> up next, shares of twilio are up more than 120% on the year as the cloud communications company benefits from the work at home trend. we'll speak with the ceo about his expectations for the second half and how his company is working to help track the coronavirus. you're watching closing bell on cnbc

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welcome back shares of twilio have more than

double d this year. to move operations to the cloud or engage with customers remotely joining us now is the ceo, jeff lawson thanks for being with us today >> thank you for having me >> given the fact that a theme we've been seeing, whether it's your company or some of the others that have been on the tech side, the cloud side of benefitting from this work from home shift, this dinlgtization of really everything now, an acceleration in adoption of the technology maybe from what would have been a year's long process to a month's long process, where are you see iing the fastest adoptin and how sustainable sit as we go into the second half of the year >> yeah, every company is really having to adapt quickly to the changing environments and what we're seeing is the world is mounting a 21st century pandemic response so what does that mean it means using the power of the internet of software. to rapidly recon figure for the changing realities ahead of us.

so what we've seen is examples of retail, where you see you know, curb side pick up and contactless delivery you see health care with tele medicine, education with distance learning. banking with contactless account opening. you see all those use cases that are arise iing and having to be built incredibly quickly in order for businesses to respond to the changing environment and what twilio offers is digital engagement the ability to do so using digital technologies software agility the able ility to build those solutions quickly, on the fly, as the needs are changing. as well as cloud scale the ability to build something and know it's going to work when you turn it on also in terms of customers, but also worldwide, because this is a worldwide pandemic >> yeah. i'm curious about the coronavirus efforts on behalf of the company as well. you just mentioned tele health and the work you're doing in this industry, but also the fact you're partnering with new york city for contact tracing

obviously a key component of the reopening of economies right now and certainly it focuses especially as we hear from reports that a a number of states and a number of municipalities are maybe falling r short in terms of those tracing efforts. what a does it look like in terms of your partnership in new york and how efficient, how effective, are those methods >> you know, contact tracing is a great example where the world really had to innovate most of us, if you're not an epidemiologist, were unfamiliar with the term contact tracing several months ago but we've had to, as a society, deploy an at scale quickly we have a product called flex, which is designed to be integrated and extended by developers working in every kind of organization. so our flex contact center product has been used by organizations to enable work from home contact centers and things like that, but one of the unexpected areas was how flex could be used for organizations and governments to rapidly stand up contact tracing new york city is a great

example, where contact tracing is when you find out somebody has covid, finding out who they have been in contact with. contactingthose people and putting those people on a self-quarantine schedule and on a watch list to see if they end up having symptoms and if they then need to be contact traced that takes people. it takes experts as well as a lot of labor, in order to contact allthose people to successfully trace if you look at what new york city has been doing. they stood this up around june 1st and so far, the efforts put into it have been successful soing what we're gioing to see s more focus put on contact tracing at city level and increasingly at state level, to enable states to more safely reopen because they know they have the response in place for when outbreaks inevitably will tart to happen the key thing is to be able to nip those in the bud as opposed to letting them go on and therefore, having to shut down again. so we are very excited to be

partner ing with the city of new york as well as other municipalities and states, their abilities using tools to check on constituents as they're going through the cycle of potentially having been in contact with someone with covid so it's one of these use cases that again, i never would have expected at the beginning of this careeyear, but that shows e power of the platform that we now need as society. so much innovation, whether it's in companies, cities, state, federal governments, mounting responses in a modern way. >> clearly, there's been a large theme of digital adoption over the last couple of months. are there any identifiable themes, maybe via sector, perhaps, of companies that were massively behind the curve on digital adoption and have been forced to speed that up all of a sudden >> we've talked about tele medicine, distance learning. i was on the phone last week

with the cio of a major retailer and the cio said that they saw e commerce adoption experience five years of growth in the course of q2 basically so you think about the number of new customers, new shipments and scaling up every part of that business to meet the surge in demand. they have a five-year acceleration of customer adoption of their e commerce capable tilities is substantial so in order to build their way to be able to service those customers successfully, to create a successful outcome, a great eck appearance, be able to keep the products flowing, to keep up with customer service requests like where's my order, all of those things require investments in platforms like twit o twilio enabled them to scale up, to meet the surge in demand. because a lot of organizations, as you mentioned, had digital transformation plans and these plans were on the shelf. they were slated to take five years. the usual process of innovation is you have ideas, you test

them, there's components, there's the nay sayers it goes through the corporate process of getting implemented over the course of time, but during covid, what you've seen is this great digital acceleration because the cost of change is basically zero there's no alternative to not doing it to not doing these things. you have to innovate an you have to serve your customers. there's no choice. so a lot of the fiction, a lot of the reasons why one might not engage in the digital transformation efforts, just melted away. because serving customers and keep iing our employees engaged and employed and growing to serve during this time has been the number one focus of every executive team at every company. and digital is how you do it so we've been very pleased to be able to serve our customers during this, their time of need, to serve their customers >> yeah. i mean you make a key point. investors are paying attention the stock up more than 145% just

for the quarter well getting attention from some of your competitors, too. message bird says it plans to go public in the next 12 months as well how would you assess this emerging, competitive landscape in cha wha does ultimately and quickly differentiate twilio >> really no difference in the competitive landscape for us it would make sense because of the needs of the world, to undergo dinlg tral transformation as the leader in this market, we're proud to serve everything from the biggest enterprises of the world down to developers who are building out their ideas and as we think about services customers across voice, messaging, chat, video, as well as the platform, which provides things like hippa compliance to take on health care workloads as well as major banks, we think we are well positioned to be able to help our customers through these difficult times and emerge with their digital acceleration so that our customer s are

leading their respective industries >> thank you for joining us today. >> thank you for having me we have 33 minutes left to go before the bell the dow is currently in the green. pushing back towards session highs. it's aup 91 points the s&p is up more than 1% the nasdaq is up 1.5%. russell 2000 and small caps are up 1.3% to close out not only the day, but the month of june in the green and the quarter in the green as well. coming up, wall street gets even more bullish on et srsy plus, the quote, disinfecting play, that could be poised for a clean break higher we'll get the word on the street on those calls next. liberty mutual customizes your car insurance,

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time to get word on the street key bank raising its price target on etsy to $115 a share

to $90 the firm says etsy remains one of the lead ners mask availability this comes goldman sachs says a mask mandate could save the economy from a 5% hit. etsy's ceo joined us yesterday and talked about the mask market on his platform. >> in april, etsy sold $133 million worth of face masks. that's 12 million. enough for every resident of the state of ohio. >> meantime, luke capital upgrades crocs to buy from $22 siting brand momentum. strong e commerce trends and positive comps for the shoe retailer he also believes the global report portfolio could help smooth out quarterly declines. up 4%. >> i would probably pay some

money to see you in a pair of crocs. davidson initiating clorox -- >> there's not quite crocs on my feet, but any way. >> yeah, i'm wearing sneakers myself right now but danny davidson initiating clorox with a buy rating calling it a quote, disinfecting play as global cleaning habits could change for the long-term they project 17% growth for the second quarter i don't know about you guys, but i'm still having a hard time finding these products on shore shelves in my local area, so there does seem to be demand afoot. continued demand afoot >> there's definitely some out there, but not for me. has your consumption of it not peaked a couple of months ago? >> no, i can't get enough clorox wipes right now. how about you, mike? >> i think you could make the case as the analyst is, that it

probably is going to be become of an engrained thing to be doing more disinfecting on a regular basis. even when this threat goes away, think of it as post 9/11 model clorox has done so well. the valuation is 30 times, it hasn't been this expensive in 20 years plus and you know, cleaning and those types of products are only about a third of the business. about a third of the profits for clorox so it's not as if it's an ultrapure leverage play and i think the only thing it has going for it is the street basically agrees it's too expensive because you have only about a quarter of a a angthe nlists recommending it so clearly, it's just a momentum play and a you know, stay at home play and one of the rare consumer names that really is kind of in a sweet spot with this >> regardless of whether you think the virus is going to spike meaningly and come back

again is understanding of how it spreads has changed. it's not that it spread on surfaces and that was the real obsession originally with wiping everything down with everything you brought back in your home. i guess that peak need for it has passed >> tell it to a parent of young kids you're just going to do it even if you don't have to >> well, fair enough but -- >> especially if you are going out. >> the stock either way is yet to peak it seems onwards and upaward, up 24% coming up, uber failing in its bid to acquire rival grubhub this year, but now, it may be looking for a new mate we'll have the details ahead and here's check in on bonds mixed action for treasuries. ten-year currently yielding around 0.65% two-year just falling in yield s&p 500 gaining momentum by the way as we approach the close, which is 26 minutes away

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welcome back session highs. up 140 points. over half a percent now on the dow as you can see a nice little ramp up in the final half an hour or so of this final hour of trade. we've got 24 minutes left. the last 30 minutes has been very strong. up half a percent. 1.3% on the s&p 500, 1.3% on the nasdaq time for a cnbc news update with sue. >> hello, everybody.

here's what's happening. arizona reporting nearly 4700 new cases of the coronavirus since yesterday. and florida confirming nearly 6100 new infections in the last day. both are record numbers and during june, confirmed cases roughly tripled in florida and arizona. and dr. anthony fauci warning a senate hearing that the new outbreaks could get quote, very bad, with more cases doubling to 100,000 per day. new york, new jersey and connecticut are now requiring quarantines for travelers from eight more states to help slow spread of the cyrus. they include california, georgia and nevada the list for the tristate area now covers 16 states you can go to cnbc.com for more on that story. and china has enacted its national security law for hong kong, giving it sweep iing powering to charge people with crimes of succession and sedition that are punishable by

life in prison the u.s., eu and japan have condemned that back to you. >> we've got about 23 minutes before the bell. here is where we stand with the major averages not only for this last day of the of june, but of the second quarter. the dow moving back toward session highs. up half a percent. s&p is up one and a quarter percent. and the nasdaq is outperforming up 1.5% and small caps are up 1.4% now still ahead, believe it or not, earnings season right around the corner with big banks kicking things off and just two weeks time we'll preview what to expect from financial, next and take a look at shares of tesla. the stock is the best performer in the nasdaq 100 this quarter. hit a market cap of get this, $200 billion, for the first time earlier today.

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s&p financials down 25 a% in the first half of the year wells fargo has underperformed overall. down over 50%. the bank announced plans to cut its dividend we'll hear just how much wells fargo plans cut when it releases earnings two weeks from now along with the rest of the banks. joining us now, senior analyst at wolf research steve, good afternoon to you thanks for joining us. >> thank you appreciate you xwi guys ve me

on >> want to talk about the stress test results most banks reiterated their dividends for now. do you expect those that did reiterate their dividends, that those dividends are safe for a full 12 to 24 months >> i would say for the most part, yes, but the key thing and this is really the piece of uncertainty that's looming over all of the banks the regional banks in particular in addition to a name like wells fargo, is the fact that the fed actually changed the rules of the game so it used to be a function of how much excess capital you had. that would be the primary dictator of whether you could support your dividendor not. and the fed changed it up this time around. they called an audible and decided you know what, in addition to that, we're going to limit your dividend based on your earnings profile and specifically, how much earnings you can generate on a trailing 12-month basis so once we saw that, we knew

that wells fargo potentially capital one, their dividends were at a risk and right now, that dividend cap only exists through the third quarter. if it's extended beyond that, then you're going start to see other banks trip that wire as well sochlt that uncertainty, lack of clarity around how the rules are going to evolve has been the near term on the bank stocks for the month >> there's been a lot of focus on wells fargo given they announced they'd be cutting their dividend they also announced that q2 provisions would be higher than they were in q1. did that come as a a surprise and why do you think it was only then it was announced? will it be a theme for all of the banks or a stock specific issue? >> yeah, it's interesting in that they've only highlighted the credit issue in this release. i think in part, they were looking at where expectations were and right now, the street's

modeling provision wells fargo was arguably the most aggressive in terms of their reserving relative to jpmorgan or citigroup so now you're seeing a catch up trade where wells has the to catch up with the rest of the group and that w something they wanted to insure wasflected in numbers. in terms of the expectations more broadly, 2q is probably going to be the high water mark in terms of provisioning and from there, things should start to look a little better. so right now, the top of mind concern for investors has been credit i think you'll start to see some value investors begin to leg into the some of the more credit intensive banks but the one big overhang that's likely to persist is the interest rate outlook so i think that's going to be the next shoe to drop that investors are going to have to grapple with as those pressures seem to be ongoing

>> as we head into another earningings seasearn i earngs season, we know this ppp program was stood up quickly and the banks mooued quickly we know there was a lot of snags and issues and errors, especially for the biggest banks and thus a lot of scrutiny how big of an issue, a risk, and i think tail wind versus head wind is this program going to be for the banks when they report those numbers? >> yeah, so it's really going to be 2q and 3q where you're going to start to see those numbers reflected. i always want to look at what revenues or earnings are occurring. so in materials of the ppp program, that's not something that i'm comfortable underwri underwriting longer term t a temporary benefit. but at the same time, it's, it is something where there were a couple of snags and the reality is that's the nature of a

program like this. the banks to their credit, did a pretty good job of getting it up andning rather quickly you're going to have responders that say we're going to go after the banks, after the deep pockets. i think ultimately, there's no dip there. i don't see it as a big overhang or legal risk that could potentially impact the banks in any meaningful way i'm sure we'll see a lot of headlines on it. you know that being said, i think in terms of the earnings or capital impact, it's going to be demand. >> and steve, all things considered, for the rest of 2020, what would be your top pick of the big six banks? >> yeah, so there's really two i know you probably want me to highlight one. i would say that really both gold man and morgman and morgan unique stories we're concerned about interest rate risk, about credit, just

xwifen the uncertain path of covid and for goldman, morgan stanley, they're much better insulated from those risks trading around tangible book actually goldman, a little bit below. you're talking not just like ten or 15% outside, but potentially in a more normal environment, 35% or greater upside for these stocks so there's just massive potential risk reward or at least upside surprise for these names and those are really the two we're looking on here. >> thanks so much for joining us >> thanks for having me on, guys >> up next, fedex gives up earnings and boeing loses ground after yesterday's jump those stories and more when we take you inside the market zone, ft're up 1.3% with 13 mite nus le

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with us as well. let's kick things off with the broader markets up by 1.6% on the s&p. 225 on the dow nasdaq's up 1.9% a lot of buying into the close as you can see the chart on the s&p this final hour of trade has been ferociously strong. 11 sectors nicely higher, led by energy the last a day of june and the quarter. stocks rebounding hard off the lows set back in march the dow on track for its best quarterly performance since 1987, s&p since 1988 and nasdaq since 2001 mike, before we go into the quarter or the half, very, very strong final hour of trade and for the week, we're up over 3% now with all major indices >> in the last little while as we got a look at supply and demand looked like it was to buy. what that suggested is that whatever quarter and mechanical

sale of equities needed to get done probably got through late last week. the late week as we saw thursday and friday into friday especially so i think that's right in the moment what's been going on. some of these late day levations have not necessarily told you about what happens the next day, but obviously the market's been resilient. it had a three-week pullback about 7 or 8%. seems to have been enough for right now. now the bulls are kind of racking up yards in the middle of the field i would say it is this range, but it definitely is a positive picture in terms of the market's inable inability to generate any selling momentum for a while now. >> yeah, how does this set us up for the second half? >> you know, i agree with mike here i think it was an interesting month from the perspective that the headlines were really quite weak in some of the data started to ebb but the shorts really couldn't power the market lower they tried in the middle of the month, but when you look at the internals, june was decent

internally small caps were better than large caps i think that's underappreciated here this is a market that's seen participation expand over the last number of weeks and last number of months that's something we've been craving over the last couple of years, so i understand the headlines feel like they're worse today than a month ago, but the fact that not much market damage was done is notab notable. then you look at small caps in particular one of the most notable thing s sss is the degree to which we've seen outflows. from a contrarian perspective is actually really interesting here if you told me the headlines were going to be as bad as they were over the last month and small caps would outperform large caps in june, i'd say that was a good thing >> shares of uber are higher today. after news that the company has reportedly made an offer to buy post mates in a deal valued at 2$2.6 billion

they're weighing on whether to accept uber's buyout over or just go public on its own. uber's offer to buy comes a few weeks after its attempt to buy food delivery competitor, grubhub, fell through. mike, i mean, how much of a reflection is it of the consolidation that's long been discussed a as necessary for these delivery companies to become economical and potentially long-term profitable and the fact you are seeing valuations that have come off a bit in recent months >> seems the only way out. the market by bidding up uber shares here essentially saying if uber is in this business and it is, and has ree mained committed to this business, betancesbe better be a consolidator of it even if not rationalize things on the pricing side, then just generate scale it's a bet to some degree on delivery becoming in a very long-term durable way, a bigger piece of the dining pie.

in other words, it's behavior changes that may be have been accelerated by the shutdown period so all that stuff fits together. you're talking about at the valuations being discussed, something like 5% of uber's market value being bet on this company if it happens in this way. so not tremendously crucial in terms of make or break, but probably something the market sees as constructive even though nobody knows if in fact you can rationalize this business in a way that creates promising long-term returns. >> five minutes left we're continuing to make gains dow's up over 300. boeing, one of the biggest losers today after norwegian air canceled nearly 100 aircraft orders phil has to story. >> that put pressure on boeing yesterday. norwegian had an order 97 a aircra aircraft they are scrapping that order. this is not a huge surprise.

many people were expecting norwegian to ultimately do this. so again, that order includes 92 max planes that have been canceled meanwhile, the 737 max is in day two of certification flights out in the seattle area. they did two of them yesterday they continue today. they completed two of those certification flights yesterday. they're doing another today and then it should all wrap up tomorrow no indication of how these flights have gone. we'll be hearing about that over the next several weeks and finally, shares of airbus. the company announcing today that it is cutting 15,000 jobs most will be in europe the ceo during a conference call this afternoon said there are no plans to change the reduced production schedule and one last note just for you just announced by delta. bringing back complimentary beer and wine on flights over 500 miles if you are in first or business class i know that's something you're quite interested in. >> because i fly over 500 miles or because i'm an alcoholic? >> no, because i think you enj i

a good beverage. >> nothing wrong with that you're flying over 500 miles >> there we go all right. thank you, phil, for bringing me that wilf specific news. i actually had a question though on the boeing 737 max cancellation did norwegian have it easier to cancel than normal because of the issues with the 737 max such that perhaps they get all their deposit backs or whatever the exact finances were? >> there's a legal fight involved with this, too, in terms of they also believe there's some issues with some of the engines on some of the aircra aircraft, so it's not a clean, hey, we're canceling this and that's the end of this but this was expected within the industry that norwegian would be making this type of a ko consolation. >> thank you very much shame i won't be traveling over 500 miles anytime soon quickly, mike, in terms of what we've seen in the airline stocks over the course of this quarter,

ferocious rally, but it doesn't look like much of a rally. >> it was a really peak enthusiasm at the early part of the month. obviously a big giveback there we're still monitoring cash burn and the defensive metrics that you have to watch here although some of these airlines increase in capacity, not a bad thing >> yeah, when we're talking about news like this from boeing, you should watch names like spirit air systems, which is down 9% fedex is set to report earnings and frank has a preview. >> a decline of more than 68% year over year largely due to the margin pressure as they surge to become 66% of all dlifrryes in the first five months compared to 58% in 2019 a big thing to watch is the margin for the ground division

that hanels the majority bernstein estimates that could fall to under 5% this quarter. we're also watching for commentary from ceo, fred smith, who has used earnings calls to make colorful comments about rival amazon and the state of commerce and war analogies back to you. >> yeah, yeah. he never ispoints. thank you. mike, you have more on market internals. >> they've strength bed throughout the afternoon you see morgan, excuse me, new york stock exchange has been to the upside that was more like 50/50 in the morning. take a look at banks against semiconductors both up more than 2% pretty tough to get negative both groups are working very often they are more like opposites and the volatility index, also, finally giving way. it has been high you see it around that 30 level. we were below 30 over two weeks

ago, almost three weeks ago. >> 20 seconds left in the session. we were up briefly 300 points. now 233. it's been a great final hour of trade. just a tiny step back from what was a strong final hour. over 1% for the dow. 1.7% for the s&p nasdaq up close to 2%. it takes us for the month of june, up 2% on the s&p 500 so june really just reflecting today's gains more than anything, but for the quarter as a whole, up 20% on the s&p 500 a ferocious bounceback from a soft first quarter welcome to the closing bell. just to get a look at where we've settled for the day, major averages closing near highs of

the session. the month of june higher and a the quarter, the quarter up more than a 17.5% the best quarter for the dow since 1987 since the fourth quarter of 1987, i should say similar story for the s&p, which finished at 3100, almost down the nose, up 1.5%. also higher eer for june and ao 20% higher for the second quarter. also a multidecade record in terms of the gains we saw for the last three months. similar situation for the nasdaq as well. finishing up more than 1.9% higher on the month. higher on the quarter. small caps and transports also finishing this last day of june well into the green. investors are now turning their focus to the second half of the year and right now in the next couple

of moments, fedex earnings which are due out in a moment, and will give us another read on the state of the economy we'll bring you those results when they were released. in the meantime, the head of tech research is still with us and unlg profit. but first, mike, the fact we did finish out this session at the highs, what does that tell you >> obviously, this market has continued to kind of burn up the caution of investors as fuel along the way up and i do think it's been a little stubborn that traditional investors have not really been committed to this rally. we did get this pullback it certainly put a lot of people back on their heels again thinking it might be a deeper correction for now, it hasn't been the case, but i do think if it has quarter end happened, we had a little bit of a mechanical kind of buy there at the end of the day, that was in the other direction from what people might have expected.

everyone was bracing for a little profit taking at the end of the quarter that didn't happen that's just the tactical stuff you have real interest rates, massively supported central banks and somewhat cautious positioning by investors that's why it's hard to construct really big momentum on the downside at least right now >> chris, you mentioned the flows that you're observing in particular as it's related to the small caps, but if you look at the bigger caps of various different sectors, what have you seen as we ended that quarter and what does it suggest as we suggest about people's bullishness and bearishness? >> i think what's remarkable and to mike's point, if you look at the etf flows, it's about $100 billion going to bonds hit about 20 billion going to equities not saying there's no excesses out there. if you're looking for excesses, equity might not be the place

you should be looking. the flow has been to the short maturity for the proxies for cash as we start a new half here in the second half of the year, i think the big debate kind of raging between investors right now what is the signal of 65 basis point ten-year yields, 15 point two-year yields. is that an ominous message but u when you look at some other indicators out there, copper is strong industrials and transports getting better aussie dollar firming. lumber's really strong here. so as much as the bond market is worrisome for some, the macro indicators are pretty healthy. >> yeah. and i love that you just mentioned the baltic dry index doesn't get talked about often but one to watch eugene, i'm just curious how you're thinking about this second half of the year because a at some point, earnings and fundmen a taamentals are going e to set in and matter

at least in terms of this rally we saw in second quarter, so much of what drove it were headlines around coronavirus cases, at least until the last couple of weeks, subsiding breakthroughs in terms of treatments and potential vaccines then of course green chutes in terms of economic recovery and some of these hardest hit sectors bouncing back off of the lows when does the sentiment or story begin to shift more towards the actual numbers and data we're getting? >> morgan, i absolutely agree with you i'm shocked that we're having a best quarter in 22 years based on i think i'm not alone in feeling that way, but however, there's been a lot of quantitative easing put into the market and the market has chosen to postpone that i think we're going to get a turn when investors begin to pay attention to earnings and you're going to have a revision starting over the next two weeks and into next month. what you're going to see is similar to what you see in nike

where 100% of the them had it wrong. they were okay in china, but okay in digital, but across the board as you u might expect with covid-19 raging, their earnings were absolutely down and yet, nike's had a very good year all things considered and on earnings, the stock went down 5 a% i think investors have been ultimately very optimistic about quantitative easing and not paying attention to earnings i think the macro factors look positive, but you have states reopenings stalling and at the end of the day, earnings are going to matter. even if the economy is opening, if consumers don't show up, it's going to affect earnings and for the second part of the year, i think you're going to see more of that and i think you'll begin to see the market moderate more than it has during the second quarter. >> fedex up 7% after hours earnings just crossing the

table. eugene, want to come back to one of the things you mentioned there. there clearly have been some headlines about reopenings having to be paused or reversed. if that continues and becomes a broader trend, how much steam could that take out of the equity market? >> well, it should take a lot out. if you think about we're coming into july fourth, right, and two weeks ago, the beaches in florida and texas, they were expecting crowds and even though socially distanced, those bars and restaurants have been going. now they're closed last year on the fourth of july, i was in kabul i thought about going to georgia. probably not going to do that. going to sit on my deck with a couple of friends and eat those. so instead of 4 or $5,000 being spent, i'm probably going to spend 3 or $400. i think that's going to be across the country that all translates into how

much money companies are making. while i think it's important to get the economy reopen, a lot more commentary about getting it reopened right because as long as investors are feeling safe and as long as consumers aren't feeling safe, they're not going to go into businesses thai going to hunker down. everybody wants to be out. i sernlly certainly do one other thing talking about airlines with europe opening up, right, and not allowing the u.s. to come in, i think that has impacted the european economy. even though i understand why i think all these factors we've kind of glossed over are really going to pay the piper over the next six to 12 months and i think you'll start seeing it towards the latter half of july. >> let's find out why fedex is moving up. >> moving 8% high er after their earnings result where they had a beat on revenue and eps. the company now providing any guidance for fiscal year 2021. the company said its calls for

increased by 125 million due to covid-19 providing ppe to workers and other employees. another key part is that the company is reducing cap x spending it will be 4.9 billion 1 billion lower than it expected to spend trading 8% higher. however, no guidance for fiscal 2021 back to you. >> frank, thank you. for more on those results, we turn now to donald broughton great the see you today. why is the stock up 7% right now? >> well, bottom line is that they're going to be able to handle increased revenue and volume without increasing cap x wbecause they've invested heaviy in technology and their systems so they're allowed to do that now. that's a very positive you have a look here, average daily volume growth rate in ground was 25.2% that's a big number.

>> what's the balance between dmoesic and international many terms of this beat >> well, i suspect that the vast preponderance is domestic in the beat haven't had really a chance to dig through the numbers yet. but when you see that kind of a volume increase, which is all domestic got to be the driving factor here. this is an asset intensive company and the faster you turn the asset, the better the financials are >> yeah. donald, i mean it's perhaps not surprising to see this is a company that is not putting out guidance they didn't put out guidance last quarter either and actually even before the pandemic, the company was facing not only some very company specific things like the tnt integration, but also trade war, teariffs and hea winds on that, too, that had caused issues to the outlooks they put out in years previous how much more attention or i guess weight does that put on the economic outlook that we

usually get from this company in the conference call? >> it puts a much larger emphasis on it, but for good reason you know, we're going to celebrate the fourth of july this weekend this coming weekend and back when our nation was being founded, you know, the native americans relied on smoke signals. today, we rely upon fedex. they move packages in and out of every economy globally they move for all types of industries so they have a front line read on exactly the pulse exactly what's happen ng the economy and i think their reluctance to give guidance is understandable none of us know what's going to happen tomorrow or next week these are uncertain times. we appear to be in a period of real recovery and i suspect them to talk about that, but the path to recovery, even p it's around a fairly positive growth traj t trajecto trajectory, is also marks don't move like this they move like this. even if it's around a positive slope line

>> what do the technicals look like for fedex and transports more broadly >> what's important to remember is this is not a stock that peaked this year as has ups and many transports many deep sick cyclicals peaked fourth quarter '17 so the question we ugt to ask is a two-year bear market in cyclicality actually coming to an end and i would argue it is when you look at fedex, ups, transports, truckers, logistics, they've been improving into this i think when you get result like that and the stock behaves as it is, it's some confirmation that industrials and transports with getting better >> all right agree there. donald and chris, thanks for joining us today and eugene as well we have some news on facebook and for that, we'll turn to julia for the details. julia. >> target is pausing advertising

on facebook with instagram and facebook for the month of july they're saying quote, we'll use that time to reevaluate our plans for the remainder of the year just want to point out facebook shares are just fractionally lower. though the stock did rebound nearly 3% today. just to put that in context, facebook, sorry, target was not one of the biggest advertisers on fbi last year, spending an estimates $46 million in the u.s., though this could of course have greater implications should more brands such as walmart, be pressured to follow as well. and some of the other big advertisers there. back to you. >> thanks so much. up next, china crackdown, we'll have the state department's undersecretary for economic growth about the white house's sho mo gbasuly chains from chind bring more manufacturing to the u.s back in 90 seconds some companies still have hr stuck between employees and their data.

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welcome back the second quarter wrapping up u on wall street here's a a look at the biggest dow winners in the second quarter. apple up 43% dow, home depot, microsoft, goldman sachs, all the biggest gainers for the quarter. in the second half wilf >> the united states condemning hong kong's new security law urging beijing to reverse course the u.s. halting high-tech and

defense exports to hong kong over security concerns mike pompeo saying in part quote, united states is forced to take this action to protect u.s. national security given beijing now treats hong kong as one country, one system, so midwest wmust we joining us now is department of state undersecretary >> good to see you thanks for having me back. >> i wanted to kick off on the topic of huawei specifically then maybe broaden out on to the trade relations with china because pompeo said recent ly te tide is turning against them i guess perhaps as a tiny silver lining or bronze lining in the changing tone towards china, which is that other nation rs now tarting to see the u.s. view a little clearer as it relates to huawei. >> by the way, you're right. you know, it boils down to one question and that is who do you u trust? these are the decisions that ceos of the telco companies are

making for all the trusted venders. dwovt governments like japan, australia, czech republic, poland, sweden, estonia, denmark, and just a few weeks ago, the three big ones in canada announced that they're going with ericson and nokia the ceo of telefonica said they're proud to be a 5g clean path company, which means they won't use any trusted venders. then you also see the largest ones in major countries going with a nokia or ericson solution as opposed to a huawei. ntt in japan and the list goes on and i think what's happening is that the

citizens of the world are waking up to china's strategy of concealment, cooperation and coercion and that's affecting huawei's business because everybody knows 5g is so critical in terms of carrying people's most private information you know, intellectual property. >> i guess, keith, outside of huawei, this sort of three widely accepted global auctions. is it disappointing there's not a u.s. option? >> well, you know, for a guy who has been a global ceo in silicon valley for the last 30 years, it's really the first major paradigm shift that silicon valley's missed. so i'd be kidding you if i didn't say it was a disappointment however u, we're working with so many different silicon valley companies and companies around the world. on that next generation.

so i think over the next few years, you're going to see some amazing developments in this area and it's critical. 5g, by orders of magnitude, increased the speeds and reliability for autonomous vehicles and iot those type of things >> yeah. i'm curious, i mean china passed its national security law regarding hong kong overnight. the u.s. is revoking that special trade status for the island including just today, i think barring arms e ports, which i guess based on dollar amounts is more symbolic than anything, but how does that process play out we are talking about something like the race in 5g where the perspective decoupling of tech and the two countries, what does that mean? >> by the way, i think it boils down to again, the word trust. i mean, they broke the agreement. with the u.k and when you couple that with

the pandemic and it's a three pronged strategy of concealment, cooperation and coercion the pan is a as a result of a concealment of the virus citizens all over the world are waking up and seeing that their supply chains for things like pharmaceuticals, are entangled and desperately dependent on china for that and then also what we see is china's so-called face mask dediplomacy is a tool of seduction and coercion to get leverage from their medical supplies for things they want. so i think hong kong is one more proof point on that. you see the skirmishes at the indian border and it's really g given the political will to government leaders and corporate ceos to stand up to that china bully because they are a bully and i think you saw when the

u.k. said, we're going to reconsider letting huawei to their networks china responded very strong. from beijing, they threatened the hsbc, the british back the u.k. ambassador from china said you know, we're going to pull our investment in these infrastructure projects and you saw what our response was. secretary pompeo said, we stand by our allieallies, particularly against bullies, and for the u.k., whatever you need, we're there. and i think you know, the thing about a bully, we've all had experiences with that. is bullies back down when they're confronted and they really, really back down if they're confronted and have their friends standing by their side that's what the united states is doing. >> yeah. we'll leave it there, but we

appreciate you joining us. please come back >> thank you very much up next, mike looks at the recent surge in consumer confidence and whether this could be a tail wind for the market and economy and as you can always watch or listen to us live or on the go on the cnbc app. we'll bah back after this break. - [announcer] if you've tried college but never finished,

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welcome back the biggest winners in the s&p 500. halliburton, apache in particular gap also had finish from the other retailers. paypal had fallen in q1. >> i think it's probably worth knowing especially when you're talking about these energy stock, still down year to date

despite these major rallies in the second quarter over to mike looking at consumer confidence >> consumers confidence this morning came in better than expected just under the 100 m k mark these are the components of the measures it's the present situation, that's what consumers are asked, how does the present situation look in the latter part of an expansion, you see the present situation always seemed good people don't think it can last because the expectations are well below that. what you're seeing here is of course present situation plunge in a vertical fashion then it has rebounded a little bit but u interesting here is that the expectations never really got that low and they have now come back just about to february lev levels what has happened similarly, at the early parts of previous recessions, these dark shaded areas are recessions, is you get this bounce. essentially, people are asked is it going to be better in a few

months than it is now. and so more people are say iing it's going to be better. this relationship is what you want to see in a course it's a long-term chart going more than 50 years so this relationship seems to be well tested. it is worth noting that we didn't see the same kind of really long erosion here the it was a shock not a slow slide generally supportive of the idea that consumers feel like things should be improving in coming months, guys >> mike, we hope it stays that way. thank you. now coming up next, first uber tried to buy grubhub and now, post mates we'll discuss whether uber will be able to deliver a deal to investors this time around or whether it's just rumors. let's have a hook at the biggest losers in the s&p 500. gimme one minute... and i'll tell you some important things to know about medicare. first, it doesn't pay for everything.

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back to jewulia

>> facebook announcing it's banning 220 facebook groups and 95 instagram accounts tied to a far right extremist network saying they violated its policies against organized violence they alleged the network used facebook to plan the murder of a federal agent. facebook says 400 additional groups associated with the movement should be taken down, too. now this movement has grown to an estimates tens of thousands of followers largely attributed to the use of facebook's groups. now facebook does note it is not banning the use of the term boogaloo itself. >> thank you delivering a deal? ride share giant uber is intalks to buy post mates in an offer reportedly valued at about $2.6 billion. it comes as post mates considers

going public and just weeks after the attempted deal to buy grubhub fell apart joining us now for more is jennifer thanks for being with us >> thank you >> been a lot of debate back and forth. in terms of this whether it sort of, out of a sense of desperation, uber looking to make a deal in drive consolidation in the food delivery market right now, versus whether it's actually a deal, a combination that would maybe sense. how do you see it? >> a couple of things. one, the industry needs to consolidate. what's happening because of that is it's basically the prices are inflated and the valuations of these food delivery companies are inflated and part of that is because of the pandemic. they have seen food sales go up and delivery go up a as people are inside sale's doubled in may and just the deal itself for grub hub and just the take away that's also driving up value

it's not clear that you know, uber should be doing this immediately. >> yeah. and post mates is not profitable also the smallest player among the delivery companies here in the u.s. so i think what's a little unclear, at least to me, is what uber gets out of this deal is it about the technology or more market share in places like l.a. or something else >> that's not quite clear, right, because the number fourth player in the marketplace. post mates is dominant in los angeles, where you know, that would be helpful for uber eats, but it's not really dominant anywhere else and then also, the regulatory issue could be an overhang, too. particularly in california since uber is basically you know, fighting right now the california legislators for a law that basically says that gig workers should be full time employees. >> jennifer, one angle, you

could suggest it's the one they're focusing on post mates because it's the only one small enough that might not cause a regulatory hurdle and i guess the seeming desperation to do a deal highlights the lack of economics in the industry as a whole. >> yeah, i think that's true i think everybody is fighting. it is a brutal, brutal environment right now. grub hub, that's why they wanted to partner up and which they have, with just eats so we'll see if that deal goes through. that's why also door dash is deciding it wants to go public and they want to take advantage of these inflated valuations they're out reportedly raising money right now. so you know, it's not clear what uber can gain from this and it does sort of look like that they're just trying to grasp at a something. particularly since this is you know, a very, it's a lynch pin of uber's business strategy. >> is there any more deal making

or m and a to be had, if this potential deal gets struck, what else is still out there? in terms of other potential deals, is there other potential companies to keep an eye on? what are they? >> this is kind of the issue is that there's going to be a regulatory problem probably with most of them and they're going to be very expensive and i think uber's trying to be disciplined. at least whatthat's what they s in the past. the it's going to be interesting to see how theodis play out. it's going to be interesting to see if take away shareholders approve the deal with grub hub so if that falls apart, who knows what could happen in the space. >> thanks so much for joining us >> thank you >> speaking of delivery, before covid-19 made headline, roughly 60 million people in the u.s. shopped for their groceries online each month, but last month, that number nearly tripled to 43 million as customers tried to avoid going to the supermarket

there's a new documentary about food supply. one expert says online grocery is here to stay. >> the covid crisis has fund u mentally altered the way households shop for groceries and we're buying by touching those tomatoes to see if they're ripe or not. if we're buying our avenocados make guacamole they still need to work on in order to really replace what's going to be here for long time that's the traditional grocery store. >> inside look at how covid-19 disrupted the u.s. supply chain. tune in tonight. 10:00 p.m. eastern time. and pacific on cnbc. coming up, we will ask a las vegas hospitality worker about a new lawsuit against kwacasino operators and why he says employers are failing to protect themmeantime, take a look a at

some of the semiconductor stocks, which have been big winners. qualcomm, amat, have all rallied big. up double digit percentages, but expand that out since the start of the year, you can see some of those gains in context actually worse, flat, i should say, or worse. closing bell will be right back. when the world gets complicated,

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welcome back just get ago quick check on shares of gap. finished the day fractionally lore take a look at the quarter to

date gains up 79%, but year to date, we've seen this across quite a number of industries and sectors as whole. down 29% so far. in the first half of the year. overall. wilf >> time for a cnbc news update with sue herera. hi, sue. >> hello, everyone here's what's happening. the former atlanta police officer who was accused of fatally shooting rashard brooks has been granted bond. he will be released ahead of his murder trial if he posts a $500,000 bond. democratic presidential candidate, joe biden, slamming president trump for quote, surrendering to the coronavirus. biden also had harsh criticisms for trump's are response to intelligence briefings that russia had offered bounty for the killings of american soldiers >> so the idea that somehow he

didn't know or isn't being briefed is a dereliction of duty if that's the case and if he was briefed and there was nothing done, that's a dir election of duty >> and massachusetts is telling travelers from most states to self-quarantine. only seven northeasten states are exempt you can go to cnbc.com on the latest on quarantine requirements across the country and there are a lot of them. back to you. >> there certainly are, sue. thank you. up next, workers in las vegas suing casino over coronavirus safety concerns. we'll speak to an employee at the mgm grand about his experience ahead stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50

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the paycheck protection program ends tonight with more than $130 billion left unused.

so what's next kate has that story. >> 4.8 million loans accounted for some a a $519 billion in total loan value, but while we await a list of recipients, some research shows that minority owned businesses were not served as well as other businesses. the center for responsible le lending found that minority businesses were likely underserved. a new wave of more targeted funding could better serve this cohort >> we see the unemployment rates for black and latino and asian owned communities. asian communities. we know what's happening an we know that haven't been able to fully participate so we know more is needed >> other ideas, letting businesses apply for a second ppp loan, targeting truly small businesses with under 25 employees, given there's so much funding left and today, secretary mnuchin, said the

remaining funding could be used to target hard hit industries like retail or hospitality that will need more funding moving forward. back over to you >> thank you for bring iing us e late ets on that after the break, las vegas casino workers are finally sued over coronavirus safety concerns we'll speak with one employee whcoraedo ntct the virus himself. that's coming up next. apps are used everywhere...

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plus get $200 off a new samsung galaxy s20 ultra. welcome back las vegas hospitality workers filed a lawsuit this week argue aing certain casinos in nevada, harrah's and the signature condominium at the mgm grand failed to protect their employees from covid-19. one such employee is a bellman at the mgm grand where he was also tasked with working as a valet. he tested positive for can covid this month but found it difficult to report to management with his case but first, before i ask about your experience, i just want to read the statement that mgm has

giveren to cnbc as well. pretty lengthy statement saying quote, nothing is more important to us than the safety of everyone nd of our properties. we have spent months working with health experts to create a comprehensive health and safety plan we have offered free test iing o employees before they come to work and require it if they exhibit symptoms or have been exposed to someone who has tested positive and we have made available tests in other circumstances circumstances that do not dictate that a test is required. we work closely with the health department officials in their efforts to contact trace the nation is in the midst of a public health crisis and we are relying on all of our employees to follow cdc guidance both at work and home. now u we know the response from mgm, but i want to hear about your experience. you've worked for the company for ten years. you went back to work as las vegas reopened for business.

what has it been like and given the fact that you did unfortunately contract the virus, where do you believe you got it >> yes, when i was returning to work, none of our, the 14 employees, the group went together, we weren't tested for covid. neither were we suggested to take one the whole three months we were locked down, i did the whole protocols. wipe the hands sanitize them. the whole time went back to work after my third shift, i tested positive we were extremely short staffed. not enough time to do the proper procedures a lot of guests weren't wearing masks. i would say 5% were, rest of th 95% weren't. there was little social distancing i'm not avalet, i'm a bellman, but i do assist the valets and a

at that point, you're helping out and so short staffed and busy that we were. >> do you feel like, when casinos reopened on june 4th and masks weren't mandatory and now the nevada governor has made it mandatory as of june 26th, do you feel like moves like that are actually going to help in the face of precautions moving forward also are you seeing changes in terms of what mgm is doing after a few weeks and getting a gauge of how customers are coming in and the interactions are going >> i work now. we always have our masks on. the unfortunate part is there's not enough time. the governor says that now we have to wear mask for any business it's a little bit late it should have started from the beginning. it's kind of like putting a band-aid on the situation at this point. >> do you blame that for the state and the rules more than

you blame mgm if indeed mgm was at least following the guidelines from the state at the time by not enforcing masks at an earlier date? >> guidelines, i don't think some guidelines were followed. i tested positive and i'm the one that contacted all my coworkers to let them know that i had tested positive. i suggested for them to get tested nobody from the company actually told them to go and get tested they did test, some did tests out of my concern. one of the persons, i suggested that the company send them mandatory now. but as of now lately they have been mandatory i think last week they did a mandatory testing at the mgm grand. >> are you back to work yet? >> no. actually i tested four times already. tested monday and tested

positive again still >> one line in the mgm statement said they're relying on all employees to follow cdc guidance both at work and home. what's your reaction to that line do you feel like they're trying to shift the blame on you? >> it feels like it. i mean, we always follow our guidelines sanitizing and everything. i did it for three months and i didn't get sick. i went back to work three days and then i'm sick. it was impossible to follow every single step for how short staffed and busy we've been in las vegas. >> las vegas is certainly one of those first major markets to reopen in terms of gaming and casinos. we're going to be getting some more opening i'm thinking of atlantic city here on the east coast later this week. what is your message not only to those companies but also to the workers as they navigate these

situations >> i want to say to companies, everybody, not just the company i work for, we're not just numbers, we're not just somebody that's replaceable we all have families here in nevada there were 1289 deaths for covid every single one of those has a family i haven't seen my daughter in almost a month i just want to tell all the companies and employees out there to hold your companies accountable, to make sure there's the proper steps and they give you information on who to contact when you test positive >> we're wishing you a full recovery from the coronavirus and appreciate your time today thank you for joining us. >> thank you have a good day. up next, pressing for potential tax hikes. the rich are making a big push

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the deadline for 2019 federal income tax return is just two weeks away. there have been some big changes this tax season from delaying the deadline to giving some taxpayers interest on their refunds. hey, sharon. >> hey, will late monday the irs and treasury announced there will be no further delay on the 2019 tax filing season. as you recall on march 21st, the irs and treasury extended the tax filing deadline from the regular april 15th deadline by three more months.

yesterday the agency said that the filing due date of july 15th would not be postponed again taxpayers who won't be read by that date can file for an automatic extension giving them until october 15th to submit their return that's not an extension to pay your taxes the irs commissioner testifying today said there are a variety of payment options available by the irs to help people you can find out about them on the irs website. there is good news for people who are still due a tax refund if you file by july 15th, you will likely earn interest on that money based on the fact that that was supposed to come on april 15th. from that period from april 15th until the date that you get that refund, you could be receiving up to 5% interest on that money. that payment will come separately from your refund check. back to you. >> wow, 5% interest. that's quite a number in this

day and age. wealthy families meantime are already starting to prepare for a possible increase in taxes. robert frank is here with that story. robert. >> they're not waiting there are three main actions the wealthy are taking right now to prepare for any potential tax increase the first is they're giving away money to family members. under the current estate and gift tax individuals can give up to $11.58 million over their lifetime without paying tax. many expect that exemption could decline. so families are giving the maximum now in case it goes up they're also front loading their income if you have a private company, they're negotiating contracts to take more income this year and more expenses next year so they pay today's tax rate rather than risk an increase in 2021 finally they are taking capital gains by selling stock, property or assets if it makes economic

sense. the rate would go from 20 to 39%. it's been a tough year but if you've had a long-term gain, now is the time to take it >> the idea to get round paying taxes is just to give the money away instead pivoting back to the markets, what a crazy rebound 20% or so for the s&p 500 for the second quarter apart from the dax, it's the best performing market globally for the second quarter, the dax up 24%. >> it's without a doubt been a global snapback. i think the strength of that initial three-month move did win some benefit of the doubt for those who think this is a durable advance and it's essentially acting the way other bull markets did at the

beginning. sti we haven't quite proven we can get above even last week's highs. >> morgan, thanks for joining us today. s&p closed up 1.5% today "fast money" starts right now. i'm melissa lee. guy adami, dan nathan and steve grasso break out your rally caps. stocks are heading back to all-time high bs by the end of this year. fedex stock surging in after hours. the company's call is just kicking off. we're bringing you the headlines. later dan is taking the mound to pitch his next big idea why he says this stock is ready to fly. we start off with a big rally on wall street, stocks surging to end the quarter what a