welcome back, every one. i'm tyler mathison this is power lunch. all three of the major averages are higher a t this hour the dow is off the highs but still up more than 200 points. the nasdaq hitting record high as it gains about 1% that is as 4.8 million jobs were added in june. way above expectations and that brought the unemployment rate down to 11%. no one beats expectations quite like elon musk and tesla that company delivering nearly 20,000 more cars than predicted in the second quarter and that

stock is surging to an all time high we'll have more on tesla's big move in a bit. right now, power lunch begins. yes, it does the nasdaq at a record high today. the s&p is about 7% below its all time high. let's get to dominic for more. >> the markets like that camera, were higher. they are coming down now but still in positive territory. at the highs of the day is dow is up roughly 469 points they are up 277 right now. pretty much 1% gains across the board. the s&p 500 hovering right around 3150 and the nasdaq, we'll put a star next to it here because it's created a new record intraday high two places in technology that are really moving. check out these etfs first trust dough jow joan inte.

every single one of these tech oriented etfs has hit a record high some of it is covid related but watch those moves. both of these showing pretty strong gains opinion surging in today's trade. good time for some companies tyler, to be in the ipo market back over to you >> thank you very much let's talk about today's big job numbers with steve >> it was a stronger than suspected report but widespread pain in the jobs market and the economy and a tough road back. the estimate was 2.9 million

nearly a couple million more than what we expected. the high on that was 14.7. average hourly earnings down as lower paid workers came back into the work force. it was the initial jobless claims kind of defining this idea of people going back to work with claims still high at 1.4 million. let's do the covid-19 score card 22 million jobs loss total that's from the february number. oxford economics writes the healing process will be a multiyear development with downside risks from the renewed infections where were the jobs? 2.1 million jobs gained back retail back strong

we saw doctors offices open and manufacturing with some of the audiotape toes started up their plants again the data continue to show it's important to note minorities have been hit hardest by the covid-19 job losses. the african-american unemployment rate is come down but it's still 5.3 percentage points higher than the white unemployment rate and that's highest level or highest gap we have seen since may 2015 tyler. >> thank you very much we'll talk about that gap between african-americans and the rest of the work force kelly. stocks are cheering the jobs report today dow is up 250 points despite the concerning surge in covid case, the s&p is on track for its best week in a month.

kevin is president and chief investment officer the durability of this market surprise you >> yeah. i've been overly cautious for kwiets so quite some time. i didn't think selling was a good idea if you owned quality equity and fixed income instruments. i don't see much difference in prior forecast i think the market is a bit over its skis stay at home, shelter in place, big tech, all of that. some of these employment numbers will get choppier given the flair ups we have seen in 30 states and the tamping down of reopening may affect employment

levels got a huge backdrop of liquid y liquidity. >> would you stick with the new normal basket? the stay at home stocks. the big winners or would you look for the deep value plays elsewhere in the sectors hardest hit by the pandemic? >> one thing we see resonating is the theme of innovation companies will need to innovate and adapt to new societal norms and shopping behaviors that are likely to come out of the covid-19 pandemic. those areas include technology but not big cap. more so cyber security, artificial ntelligence we we still like bio tech to not only treat but to cure fatal diseases such as covid-19 and riding out the ecommerce trend

>> what do you think of everybody piling into these same kinds of themes. absolutely, you want want to be where the real growth is is everybody hiding out with the same names >> it's a good question. i do agree with ron. i think the markets have rallied too high too fast at this point in time. you can look at the pe of the s&p 500 right now versus ten year average you have to be a lot more selective to find growth opportunities looking ahead. if you look just beyond the large cap names that have led this rally into some of the more smaller cap bio tech names or even other companies that sitz within the ecommerce eco system i don't think the amazons of the world such as the credit card companies, payment processors and warehouse and distribution centers can provide growth and opportunity for investors.

>> people want to look for growth where ever they can find it >> on the one hand certainly acknowledge that i know i've been saying it for three or four weeks, i am concerned by the level of speculation in the market. it's tough to use this as a timing tool. just from a historical perspective, what we used to call back in the '80, the cat and dogs on wall street, the low stock, penny stocks, ipos ripping, all of these different vehicles that are retail trade other yentsed, just from a his kol tar perspective, it makes me nervous. kind of hard to time getting in and out. in the second quarter there was $170 billion worth of issueance of new equity. that changes the supply and demand balance since buy backs are on the wane. hard to time got to be careful and selective.

sticking with discipline and grave at a timing toward kault >> thank you thanks let's get back to the better than expected jobs report for the month of june and what it signals about the pace of the recovery former mayor of new orleans and president and ceo of the national urban league. great as always to see you >> good to see you thank you. >> it's wonderful that we added nearly 5 million jobs, which is 40% more than that expectations were these numbers, if there's a nit to pick, it's these numbers were plucked from the middle of the month before we started to see major rise in case count and some of the slowdowns and backing off of reopenings around the country. >> you make an excellent point

these numbers do not accurately reflect the pain the american people are feeling let's put these numbers in more of a historical context. at 11%, that unemployment rate is higher than the highest unemployment rate during the great recession of ten years ago. that 11% does not count the six million americans who are working part-time who want to work full-time or the four million american who is had their pay slashed. the number does not even -- if we look at the context of four million jobs, what does that mean with last month and this month, we're still just one third of the way back to where the economy was in february. the hoopla is not well placed. the economy is still suffering

we'll see gdp growth declines of significant level in both the second quarter and the third quarter and now we have spikes in 30 states which will slow down the recovery. what does this mean? additional stimulus by the federal reserve and mainly the congress is absolutely essential. as enhanced unemployment benefits run out and cities and states that are prepariing budgets for next fiscal year face significant layoffs if you look at the four million in isolation but if you look in connection with the other things i've shared, this economy is in difficult shape. >> if there are major budget cut backs in, for example, new york state, california, other states

around the country and layoffs in the municipal work forces that could bring another wave of major unemployment i assume you would favor the passage of the heroes act. >> the heroes act should pass for two reasons. number one, municipal employees and state employees have been essential employees, front line workers. they are people in education, health care, people in law enforcement, people in public safety, firefighters, police officers many of the most important public safety and public employees we have. we don't want to see layoffs imagine the impact it will have not only on their families but also on the ability of the economy to come back when it is safe for the economy to begin return i think it has to be looked at

multiple caveats with respect to what we're facing. it's tough the look a health care worker in the eye to say they will assist businesses having liquidsty challenges. the federal reserve help financial sfrss firms and clean up their balance sheets. then what are you going to say we don't think we should do anything for you there's a moral issue here there's an equivalency issue here with the nation in the shape that it's in to do the right thing. i'm going to make an observation that may have a question embedded in it the united states has learned or been con fronted by many of the

fa sells of inequality over the past six to eight weeks. there's another facet and that is that unemployment for black americans remains four or more percentage points higher than for whiets americans we learned about inequality in health care and about residential living and housing and we learned a lot about inequalities in criminal justice. do you think we're learning lessons that we will really apply and make changes on the economic front, on the housing front, on the criminal front >> as a nation we must make changes. the numbers that you outline are the definition of structural

racism and inequality. the fact that there's been no instance in the past 50 years where the black unemployment rate has equalled the white unemployment rate. no instance in the last 50 years plus and i'm using that context because that's the emergence of the availability of really good numbers. the health conditions of or life kpa expectancy of that equated that to whites. that's the definition. do we tolerate that as normal in do we make excuses about it as a nation or do we confront the fact that fixing it and repairing it is not only good for african-americans, it's good for the nation at large. it improves the economy. it creates gdp and productivity.

that's what i think investors and business people have to understand tackling this issue is not only a social good, it's an economic good it's so critical that we do it because in the last several weeks these inequalities have laid bare. let's con front this let's deal with it can great nation with an economy, with the intellectual capital that we had, can it position itself. can it tackle these issues i want to believe yes but it's going to take tremendous good will more than a conversation it's going to require action

>> thank you the conversation continues good to see you. we'll see you next month thanks very much >> happy fourth. >> you too coming up, while america tries to get back to business, coronavirus cases are spiking. hitting a record high of 51,000 and in some states testing is falling behind we have a special report will a summer of uncertainty lead to fall at home for kids? there's much more power lunch right after this when the world gets complicated, a lot goes through your mind. how long will this last? am i prepared for this? are we prepared for this? with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations, with access to tax-smart investment strategies designed to help you keep more of what you've earned so you'll know you're doing what you can for your family and your future. that's the clarity you get with fidelity wealth management. for your family and your future.

♪ ♪ now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at shopsmall.com.

welcome back we have a news alert for you from the cbo on its ten-year economic outlook >> the non-partisan congressional office just out with its outlook suggesting the unemployment rate will peak at more than 14%. it will come back down and end the year at 10.5%. next year the unemployment rate would end the year at 7.6% 2022 could be at 6.9%. importantly, the cbo does find that the unemployment rate will remain elevated above pr pre-pandemic levels throughout the ten-year window. as for gdp, the cbo projecting that gdp will end this year at

negative 5.9% but rebound in 2021 to 4.8% real gdp over the course of the next seven years would hover around 2.1 to 2.2% below what they expected during the pre-pandemic time period this just shows you how long the impact of the virus could stay with us. >> thank you u.s. coronavirus cases just hi hit a record high. testing in stiemome states is getting pushed to its limts. >> these are record numbers of new coronavirus cases that we're seeing states reporting more than 50,000 across the whole country and florida, this morning reporting a record more than 10,000 new cases in that state you can see this is list of hot spots. the top three places seeing the fastest case doubling times, jacksonville, orlando and tampa. that's putting strain on the

testing systems. around the country we're seeing a strain on these. this is video from sunday in florida at a testing site. what we're hearing from the biggest testing providers quest and lab corp. is the demand for testing is pushing the turn around times for returning the test ever longer quest saying three the five days for those that are not prioritized like people not in the hospital or health care workers with symptoms. lab corp. saying the time doubling to to to four days. we have increased capacity we're now over 600,000 tests per day. that's double what it was in beginning to middle of may that is not enough you can see here that almost no

states even meet the lower mitigation target level which they say would require more than a million tests a day. almost twice what we're doing now for suppression just a few sfa states like montana, alaska and hawaii, they say we need four million daily tests. still a long way to go >> yeah. the numbers are very, very sobering still ahead, tesla surging to a fresh record high as the electric car makers delivers for the second quarter the stock is up nearly 200% this year can anything stop this ride. tesla not the only auto stock kicking into high gear avis budget up 20% after an upgrade from morgan stanley as the used car market is on fire we'll explain the connection and the details, next. feeling stressed?

try new nature's bounty stress comfort. three unique gummies for your unique needs. find peace. boost mood. sleep well. stress comfort comes naturally, only from nature's bounty comes naturally, you're first. first to respond.

first to put others' lives before your own. and in an emergency, you need a network that puts you first. that connects you to technology to each other and to other agencies. built with and for first responders. firstnet. the only officially authorized wireless network for first responders. because putting you first is our job. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

welcome back to power lunch. summer vacation is looking different this year with americans opting to drive for the fourth of july weekend rental car searches are up let's discuss with your trading nation team today. great to see you both. how would you play it? >> here is how i play it i look at this upgrade on avis and make a couple of o

observations the stock is up off of the lows. i see this i look at the track record of the upgrades i'd rather be fading this upgrade than buying it at this point in time. it's uch about 65% off the lows. you have another 5% to go to get the major over head resistance level. i'm buy a break out above that and buy o' rerilly before avis >> nancy, how about you? >> first, i love your jacket >> yours too >> craig and i did not rehearse this i picked o'reilly out of the stock for fundamental reasons. margins are greater than 50% they grew sales in the march

quarter year over year by about 2% the free cash flow yield is 5% i think the avis play is done. if you make some money from here, it will be a riskier trade from this level. we think it should be given a second look. >> what about carmax >> it's a great company. it's a great space in the car segment. i don't have an opinion on it. we have never owned it i'm sorry. >> same question to you craig. this is the high flier name. what do yo u thiu think about cx in. >> i think the best risk-reward opportunity is with o' reilly. it looks like thup grade is late

to the party >> thank you enjoy the fourth we appreciate it today head to the website or follow along on twitter ahead, facebook under pressure again today will the company eventually fold under the weight of an ad boycott? tesla blows away estimates with its delivery numbers can anything stop the world's most valuable car maker and some parts of the country are a little more than a month away from a new school year will children go back to the classroom? what will they find when they get there? all that coming up on power lunch. plap

you can't predict the future. but a resilient business can be ready for it. 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.

. welcome back here is your cnbc news update.

federal prosecutors say a key associate of accused sex trafficker jeffrey epstein should be detained she was hiding on a farm in new hampshire that she purchased for cash using a shell company to hide her identity. she faces up to 35 years in prison for her alleged crimes. >> maxwell was amoung epstein's closest associates and helped him exploit girls who were as young as 14 years old. in some case, maxwell, participated in the abuse herself. former presidential candidate herman cain has been hospitaled he attempted trump's rally in tulsa on june 20th and traveled to arizona but we do not know

how he contracted the virus. you're up to date. back to you. thank you very much. let's check on the markets right now. highs after the jobs report this morning had the dow up more than 400 points we're still hanging onto some decent gains of more than 200 for the blue chips better than 1% now the s&p and nasdaq gaining over 1%. the russells are lagging check out the big names that are driving the move they won't surprise you. amazon, microsoft. nvidia hitting a fresh record high today tyler. thanks, kel. a big issue many parents face right now and over the coming weeks especially working parents is whether schools will open in the fall and if so, under what circumstances. ylan is taking a look at what might happen to the covid class of 19. >> it's clear that classrooms will look pretty different this fall think about socially distant

desks and teachers wearing masks and lots of sanitizer everywhere all of that comes with a cost. the average school district with 3700 students is projected to spend $1.8 million on just the public health measures alone multiply that by 17,000 school districts across the country and the price tag could be as high as $30 billion to keep our classrooms safe. that's not the only cost the school systems are facing. they are looking at investing in technology in order to help kids learn online they need extra academic support because some students might have fallen behind and there's the budget cuts that are in jurisdictions now being strapped for cash education officials says that means that the total costs for reopening schools this fall could reach $245 billion many parents are divided whether

to send kids back. only 32% say it's safe for kids to go back to school 47% say it's not about a fifth of parents say they are not sure. they don't know what to do i don't think i'm speaking just for myself when i say parents want some clear guidance and not really getting it from education officials, elected officials or the public health officials. back over to you >> all right thau thank you very mump. some stats like new jersey, connecticut, massachusetts already announcing plans to reopen public school for in-person classes this fall. just a short time ago, new york's mayor said they are moving ahead with plans to reopen schools in september. our next guest is out with a recent op-ed pushing for more schools to be open she argues we can't get the economy going if we don't reopen schools. she says that keeping kids out of classroom will do them considerable harm.

you make an interesting and i think persuasive case there will are risks to health, to educational development and personal and social development from not opening the schools we heard that 47% say it's not safe >> i think parents looking for guidance i'm glad to see the momentum is shifting and a lot of the state officials are saying we are going to do our best to get everybody back in the classroom but for months they have been saying stay in your homes no matter what and children are at risk too your family could be at risk if you send your children out i think parents have taken that message to hareart and now every one is scared stiff to send their kids back to school. the messaging will have to change over the summer and people will have to be clear about what the specific risks are and that children are frankly at the lowest level of

risk >> you believe that parents basically are being over -- over worrying the situation is that too big a leap >> i think that's true they are taking the message from public health firofficials and school officials and politicians that have said we need to just stay home as mump as possible. i understand their concerns but i think we live in a society where we try to minimize all risks for children and that is influencing this we just live in a world where we're trying to minimize that risk and this is a very scary virus and parents want to minimize the risk but a lot of parents have to make some very hard decisions about the fall i

terms of their own economic output >> you have young children i have a teenager who is starting high school in the fall how do you social distance in kindergarten how do you create a safe space among the primary grades like that where there's a lot of interplay between children how do you keep your hands to yourself they can't do it under normal circumstances. how do you force a 5-year-old to wear mask all day? >> it's impossible the cdc put out these recommendations. i read them and said has anyone ever met a 5-year-old. these were ludicrous they wanted kids to not only keep their hands to themselves, stay apart, put on masks, never touch the same toy that somebody else touched wash their hands for 20 seconds after they use a tissue. i don't know any kindergarten teacher who will be able to manage this kind of insanity

t there will be risks. some kids will get it. we have to be realistic about this we can't look at the -- my concern is you look at the guidelines and some districts will throw up their hands and say we can never manage this so we better stay online until there's a vk seen. >> as you move into the higher grades, what about a hybrid approach where some days the kids are doing distant learning and some days they are in the classroom to foster the kind of social distancing that we think we know mitigates the spread >> maybe you can handle that at the high school level to some degree a lot of kids have not been checking into the zoom meetings that happen this spring and will parents be able to stay home even if they don't have to monitor every bit of work, they'll have to make sure the kid is getting online and listening to the classes instead

of just goofing off at home. that's one concern online learning has not been proven to be effective parents are very upset with how little their kids have learned over the last few months there's going to be huge amount of slide you already see slide over the summer in terms of academic outcomes a it's the worst for kids who are at the bottom you'll see more of that as this goes on and on >> i hear your point and i agree with you i think there's a technology gap between better off families and those who are less in making sure that all kids have the technology to hook in.

there's a big gap between rich and poor it's not right >> it's also a big gap in terms of parental monitoring even if you have the technology, a lot of upper class parents can be at home they can stay home with their kids they can help them with whatever glitches are in the zoom meeting or printing out things or helping monitor the kids work. parents that are in the service industry, what are you doing to do leave the kid at home and say figure it out for ourself. >> totally agree with you on that there's a lot more process involved in distance and computer learning than there is in a regular classroom let me tell you, lots of process doesn't work with 14-year-old boys one of whom is standing right over there now thanks very much we appreciate it have a good weekend. kelly. the list of companies joining the facebook boycott keeps growing. will the company fold to the

pressure we'll explore that an electric car company riding today after reporting record delivery numbers it ain't tesla we'll tell you this name after the break. when the world gets complicated, a lot goes through your mind. how long will this last? am i prepared for this? are we prepared for this? with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations, with access to tax-smart investment strategies designed to help you keep more of what you've earned

so you'll know you're doing what you can for your family and your future. that's the clarity you get with fidelity wealth management.

welcome back we start with spotify that's been one of the hottest stocks around more than doubled. today it's rising up more than 5% spotify is considering adding streaming video features in other words to compete with youtube. spotify almost $273 a share now. tesla isn't the only electric car company reporting big

delivery numbers nio shares are up 18% today. we'll end on mu skin which is soaring after raising revenue guidance people are getting more comfortable with buying products, including skin care, online nuskin is up 25% today ty to the bond market we go rick santelli. >> the treasury market closed a little early today about 45 minutes ago if you look at ten-year note yields we settle with 66 basis points up two on the week. we came off our best levels around 70 basis points due to better than expected jobs data if we consider the federal reserve has a lot of fire power. one of the areas it's concentrating on is investment grade in high yield corporate securities look at an lgd one week chart. it's about 135 it's had a good week

when you open it up to 18 years when it all started in '02, today looks to be an all time new high close for the investment grade etf it's diverge frd from the high yield. they are all doing well. we like to say happy birthday america, 244 years old tyler, back to you have wonderful fourth of july weekend mark zuckerberg and elon musk two of the best known ceos in america right now musk is celebrating a huge success and soaring stock and mark zuckerberg is facing a major backlash both of their stories coming up on power lunch

as consumers are trying to figure out what's gonna happen next in the market, "can i get rich quick?," companies are saying we don't know how we are going to be doing in the next couple of months. we're withdrawing our financial guidance. so, there seems to be a massive disconnect between what's going on in corporate america and what investors are believing is going on in corporate america. the message to you: don't trade because you think you're gonna get rich quick. because you think...

facebook, the company, has been under a lot of pressure from advertisers, but facebook,. it's 4% away from its all-time high it set last week. julia boorstin following the facebook saga for us julia. >> this week facebook southeastern executives are busy calling the brands boycotting them facebook trying to tell them about the steps they've taken in the past week to crack down on hate speech. the organizers for the stop hate for profit boycott said more than 500 companies including target and unilever committed to pause something social media advertising. mark zuckerberg takes these matters seriously and don't benefit from hate but said we're not going to change our policies or approach on anything because of a threat to a small percent

to our revenue or any percent tonight our revenue. facebook has a track record of responding to advertiser pressure it responded to procter & gamble's demands it remove violent and offensive content in 2017 and to target's demands that it remove the sale of illegal drugs and broad demands for independent verification of advertising views on the platform while facebook shares are down about 1% today, pretty much flat over the past five days, laura martin with a hold rating on the stock lowered her estimates for earnings and estimates for facebook and says the ad boycott could last until november. >> do you think zuckerberg gets it is the financial pressure getting through to him when he says we're to the going to change our policies, no how, no way for any percentage of our revenue? >> look, i think he wants to get credit for the fact they've taken huge strides over the past

several years since they had issues over civil rights there's an issue where they were starting based on racial characteristics and had to stop doing that and agree to a civil rights audit and announcesed changes in the past week he wants credit for the fact that they were addressing these issues and doesn't want to look like he's folding to pressure. that's part of the issue here. we have to remember that facebook has 8 million advertisers, no single advertiser, not even these 500 are going to have as meaningful an impact as if say all the small businesses in the world wanted to boycott. >> julia boorstin, thanks very much have great weekend >> you too >> kelly >> shares of tesla continue their tear over $1200 a share now. that's a new record high of course up now more than 8% today. about 25% this week. ceo elon musk is trolling the short sellers on twitter tweeted who wears short shorts with a couple of laughing crying

emojis there you can see it up next we're going to talk to an analyst whose price target is below 1,000. looks out of touch now does he think the stock has run too far too fast we'll dig into that. watch or listen live on the go on the cnbc app. we're back in a couple first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance.

get e*trade and get more than just trading if you've had the coronavirus, you've got a lot of fight in you. and you're in a special position to help us fight back. the plasma in your blood can literally save lives. but we need to act fast. please donate plasma now. please donate. donate. donate. donate now. you fought for your life. now let's take the fight to covid-19.

go to the fight is in us dot org to find out how to donate. shares of tesla hitting a record high as the company beats delivery targets for the quarter and the stock up nearly 500% from its 52-week low phil lebeau joins us with a closer look at the numbers hi, phil. >> tyler, this was a blowout quarter for deliveries no matter how you look at it nobody was expecting them to come in this strong. might have been an outlier but the consensus they were going to deliver 72,000, a number of analysts thought it might be closer to 80 or 83,000 they ended up delivering 93,650,

the majority more than 8,000 being model 3 and ys they don't break it down in terms of country they were built in they have the factory in shanghai and plant in fremont. can they hit their guidance of delivering at least a half million vehicles this year in order to do that, they need to deliver 322,000 vehicles in the next six months. as you look at their market cap and i know we've talked about this over the last couple days, yes, it is the most valuable automaker with a market cap of $225 billion, but i find this more incredible, in the last year the market cap is up $182 billion. that's whacky stuff. $182 billion market cap improvement in one year. >> up by that much. >> yeah. >> we don't say it that often. stay there shares of tesla up 20% in the last four sessions it's been on such a tear it's left price targets in the dust

there's quite the spread the highest priced target is 1525, the lowest at 275. the average 750. it's been a fast and furious rise for the company's stock let's bring in colin rush, managing director and senior research analyst at oppenheimer. where are you on the stock >> i know four days ago our price target was -- and we're -- as we look at grappling with the stock, certainly things are shifting around with the amount available and inflationary pressures but underlying on tesla specifically it's trying to get the right production model. as we look out to 2024 our valuation numbers are based, we see as much as 40 or 50% upside to those production numbers if they execute on some of the plans they talk about and add a little more to some things they've put in the cue. >> to be clear, you've got i

believe $986 price target on the stock which looked bullish, now looks too low. if you're focused on the production numbers what do the recent quarters run rate tell you about what's feasible now? >> so there's two things one the facility at the end of the day, the financial model has a ton of operating margin in it from the manufacturing market. so that's going to be the number we look at as they report numbers later this month where are they and how fast are they driving down costs. certainly, you know, view into the china factory has been the design for the factories we get a better view on whether their overall cost structure -- i will say in addition to that -- i think there is a couple of iterations on their power train

and the battery technology that can come out and we think that's also going to -- with the gross margins over time. >> phil, let me turn to you, one of the things colin mentioned is the importance of china. how important is that for tesla's future especially at a time we're highlighting how well also doing. >> don't compare the two neo makes vehicles far different automaker and size in terms of where it's at right now. china is massively important not just for tesla, but for the entire auto industry biggest auto market in the world, electric vehicle market in the world and a government that is intent on pushing people to electric vehicles you combine all three you have the potential for huge growth there and that's why people are going to be so focussed on what's happening in china in terms of tesla deliveries. >> all right phil lebeau, colin rush, thank you on another big day for tesla. tyler, what are your weekend

plans? >> we're going to take a few days off head out to the beach on long island and i'll see you after a few days have a great weekend. >> you too happy early fourth, everybody. don't go anywhere, "closing bell" starts right now >> it does thank you. tyler, kelly welcome to "closing bell." i'm wilfred frost with morgan brennan in for sara eisen. a positive but volatile day on wall street. what's been driving the action, more jobs added and a better than expected picture of the labor market in the u.s. that sparked a big rally at the open as you can see just there but we lost steam as new data showed the virus surging in parts of the country questioning the economic recovery and whether it can continue at the current pace and focus is turning to future stimulus from washington will these key packages be extended past looming deadlines towards the end of this month.