okay brip, thank you. interesting note, brian johnson with barclays. >> it's a momentum play once again. it was for years, then it wasn't, now it is again clearly. >> it's a favorite of traders. that's for sure, bill. >> for sure. thanks for melissa thanks for watching "power lunch. "closing bell" starts right now. >> thank you, bill and melissa welcome, everyone, to "closing bell." i'm sara eisen with wilfred frost as always. s&p 500 drifting along the flat line now but nasdaq is surging again. it's up almost a full percent, back near record highs, 59% of trading. let's look what's driving the action 3 million cases in the united states with concentrated surges threatening reopening across the country. that has reopening trade weakening. airline stocks are sinking as united airlines warns thousands of provide he's to prepare for

headlines. fang with all the headlines in the greens, apple, amazon, netflix up 1.5%. tech remains hot, hot, hot. >> still to come, definitely coming on today's show, coronavirus cases climb and states continue to rethink their opening plans. we'll speak with fed chair james bullard, what it means for the economy. shares of taylor morrison posted record sales we'll speak to the ceo about what's driving the strength in the housing mark up a third of the percent. let's start focusing on the big stories. mike santoli tracking the markets, meg tirrell with the rising case count and courtney watching flags in the retail sector mike, let's kick things off with you. >> market idling right here, holding above the flat line for the moment it seems like stealth pullback

consolidation we've had last few weeks, s&p 500, talking about a summer trading range this is what we had last summer. it looked like that on a narrow basis. scares in both directions. we're not there in terms of prolonged sideways action. this is something we could keep in mind. i did mention yesterday, similarity, strong payrolls rally follow upside, tuesday wednesday down small that thursday was the big 5 or 6% down day, that air pocket we got in the s&p 500 now that we mentioned it, it probably won't happen but so far actually matching what's gone on today, this week right now we're not having big bets on the reopening which is a big difference it is all tech something interesting, 50-day moving average it's about cross above a flat 200 day, called a golden cross it's no magic signal but is often the scene is a

confirmation of upturn look at this low, 2015 low, going up, crossing above the flattish 200 day most of that rebound rally was kind of in the books by then but did kind of give way to choppier trend from there do want to point out not always perfect. back in 2015 you had this and this and you had a dip in between. so it's not necessarily an all clear but something some traders are watching here, guys. >> interesting comparison to a month or so ago. those were much higher at the start of june than they are now. we've got some breaking news to pivot to on airbus. fill leb oeau have it for us. >> we have orders for airbus frankly, there are no orders for the second straight month airbus booked zero new airline orders half of this year, they have not been able to book any airplane orders not a surprise with what we've seen with global airline business

all of it under pressure airlines parking more planes than ordering them their backlog stands at 7,584 planes we'll get the boeing numbers in terms of june orders and deliveries that will come out next tuesday. guys, back to you. >> are we expecting any orders there, phil? >> wouldn't be surprised they haven't had a positive month yet this year, sara. i wouldn't be surprised if we see a negative number again from boeing remember, at the end of the month, june 29th off 30th you had norwegian air come out scrap the maxes we ordered i think people are conditioning themselves not to expect much on those boeing numbers >> fiphil lebeau. thank you. confirmed u.s. coronavirus cases topping 3 million with another daily spike. meg terrell has the lairrell ha. >> you are continuing to see record numbers

texas more than 10,000 new daily cases yesterday. if you look at the metro areas that are the fastest growing, the hot spots in the country, now two of them are in south carolina charleston is the fastest growing area of the country right now with the case doubling pace of nine days followed by mcallen, texas, jacksonville, florida, myrtle beach and orlando, florida some of those are areas that the administration is focusing on to surge in testing like that area of texas as well as jacksonville, florida, and baton rouge, louisiana a coronavirus task briefing dr. deborah birx pointed to trends in florida and arizona while case numbers are rising in counties there, what they are seeing in terms of trends in er visits for covid-like systems are starting to decline in those states here you see arizona, florida also showing a decline they are saying they are hopeful this might mean we are headed toward a plateau in those areas.

also interesting to point out, apple maps tracks mobility data in terms of people seeking directions for driving, walking and transit. you can see here our nato rattner on cnbc.com put together this chart a slight downtick of people seeking driving directions in early july in the states with the most case growth, texas, california, arizona, florida they are seeing down ticks people may be starting to heed warnings. >> s&p up half a percent let's turn to retail and a number of red flags from an industry already hit hard by the pandemic courtney reagan has that story. >> many names on watch lists into chapter 11. still likely more to come. by my count we have 10 major retailers or brands that filed

since the pandemic kicked off. brooks brother filing for bankruptcy, 202 years old. it has seep two pandemics, numerous recessions. the retailer had been exploring options for about a year before ultimately being pushed into that filing by the strain that the covid closures put on sales. last year brooks brothers was just shy of a billion dollars in revenues about 20% of that came online. there's 500 global stores, about 250 in the u.s. and 4,000 employees. unlike others, it wasn't suffocating from debt, private equity, it's privately owned by ceo claudio delvecchio it's liking for a buyer. it's from whp global, a brand management firm. it's the first as far as i can determine or remember that we've seen this type of company do that dip financing gordon brothers also provided a loan both whp global and gordon brothers bought pieces or assets

of bankrupt retailers in the past, wonder if there's interest here the owner of ann taylor, lot of, jane bryant, close to file as well it has 3,000 stores this one would be a really big blow to malls and real estate not entirely surprised if it happens. it really has been under strain since it bought ann, inc. >> keeping an eye. levi, the earnings traded higher first half an hour or so after the earnings hit why are we so much lower today. >> you know, wilf, we've got those earnings when you look at sales not entirely surprising and they announced those layoffs, the cost cuts it will save the company a decent amount of money of course you always worry about the folks at the receiving end of that. perhaps the shareholders felt a

little better about knowing cost savings and consideration. the ceo said we haven't had to reclose stores because of the outbreaks and resurgence however, we have a plan. we're checking in with certain stores, about 40 of them, every monday, wednesday, friday. perhaps your shareholders feel better there is a go forward plan and they are doing what they can to manage this very tough situation. last i would just point out think about the items levi sells less fashion if you didn't sell them during the pandemic, you may be able to hang onto that inventory, resell it in another way at another time so less sort of fashion and inventory risk for this name, perhaps. >> court, thanks for that. levi down about 9% as we stand. after the break, national economic council director telling every piece of data shows v shaped recovery. we'll ask excuse fed james bullard if he agrees you're watching "closing bell" at cnbc.

usaa is made for what's next we're helping members catch up by spreading any missed usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa.com for when it matters most 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. iredefined the wordng th'school' this year.

it's why, at xfinity, we're committed to helping kids keep learning through the summer. and help college students studying at home stay connected through our university program. we're providing affordable internet access to low income families through our internet essentials program. and this summer, xfinity is creating a virtual summer camp for kids at home- all on xfinity x1. we're committed to helping all families stay connected. learn more at xfinity.com/education.

welcome back national economic council director larry kudlow on "squawk box" said v-shaped delivery. loretta mester said she believes it will be a long road ahead for recovery the next guest has warned the risks of a financial crisis do remain fed chair james bullard, welcome back to the show. >> great to be on. thanks for having me. >> let's start there with how this resurgence of coronavirus cases and rollbacks and reopening and the economic hit that might have and how it affects your current outlook in thinking about recovery right now. >> i'm still pretty optimistic

in my base case about the recovery i understand that cases -- confidence cases are up, estimated cases up only slidely. so the model so far doesn't want to put a lot of estimated cases out there. but what i like about the third quarter here, a lot of adjustment in the private sector, a lot of businesses thinking about how they can get their product out the door in a situation with the disease still out there. i think it can be done it can be managed. i would also say about the projections for the disease that i think masks will become ubiquitous throughout the economy and the projections are that if we get masks pretty much everywhere, fatalities will go way down below 200 a day if it gets to that situation, i think we'll have the disease under control.

what i like about that scenario is it does not rely on a vaccine coming or therapeutic coming we can use simple, easy technology we have today get a good situation, get most of the production back to normal >> so you're sounding a little bit more optimistic than some of the other members of the federal reserve. are you saying that a v-shaped recovery is possible >> i think we're tracking very well right now unemployment peaked at 4.7% some would say because of misreporting it was much higher than that. now it's down to 11.1% so i think i would say to my fellow economist in the forecasting community, you should take that on board how volatile this number is. 360 basis points down in just two months seems to me like by the end of

the year you can get down to certainly single digits and probably into maybe below 8%, maybe even 7% by the end of the year you've got a lot of people that are saying -- among the unemployed, huge fraction of them are saying they are on temporary layoff so if you just take that at face value, they are going to get recalled back. so this shock is nothing like previous shocks in the post-war era, and i think our friends in the forecasting community are trying to play out a repeat of 2007 to 2009 in the aftermath of that that was a very different shock, a very different situation so i think we can get most these people recalled here in the next 90 days. this will be a period of transition where businesses are trying to adjust they are trying to cope. but the lesson of the second quarter is that it's possible to cope, it's possible to do simple things that keep the disease

under control and allow to you run your business. >> president bullard, i wonder whether you think bankruptcy could derail that relatively more constructive tone that sarah riley suggested you seem to have. you gave an interview to the "financial times" at the start of this month. their title was fed's bullard says financial crisis remains. is that a representation of your general view >> i think it's fair i say that's my base case, what i just told you, but there is downside risk to that case it's not my base case, but this can go badly we're in the middle of a crisis. things can take twists and turns. the disease itself can morph on us i don't think that's going to happen i think we're in good shape but you never know that's why we have to be very careful. it is a time of high risk for the u.s. economy

you could get into a financial crisis you could even get into a depression so again, not my base case if that happens, you'll get even worse -- you'll be worse on both dimensions you'll have a worse economy and worse health outcomes, both. that's why we have to be very careful in this situation to try to get back to work here. >> we're facing some key deadlines when it comes to fiscal support what happens when those ppp loans and funds runs out what happens when that bonus unemployment check expires at the end of july? what happens to the economy then >> yeah, a lot of people are talking about this but you know a bill is obviously brewing in congress. many key players signaled there will be a bill you've got politicians facing an election in the fall with a

green light to spend more. how likely is it they are going to pass. the question is what's going to be in there and exactly how will that be structured that's the optimal way to structure it it makes sense the details would be at the wire, that's the optimal way to negotiate it makes sense they would want to get as much information as they can before they make a commitment on what the fiscal policy will be for that second half of the year i would say we'll get a bill and there will be plenty of resources there. >> if things doget a lot worse for whatever reason, president bullard, should negative rates be on the table and should fed purchase of equities possibly be on the table >> yeah. i don't think either one of those is very like ly many members have said they

don't think negative rates are a good option for the u.s. they haven't worked all that well in japan or europe. so our structure of short-term funding markets is different so i think that's kind of way down the list of things we could do to be effective i think we've got an effective policy today we've got lots of implicit former guidance in place we think we're going to keep rates low, markets do, i think that's exactly right we're going to try to get through this so i'm not seeing that as a possibility. >> let's talk about what you are buying going into directly buying corporate bonds for apple and mcdonald's and coca-cola, how far will this go >> yeah. we're in there with 13-3

program. those programs are for emergency situations they require approval, secretary treasury there was concern in the march, april time frame that the corporate debt market would freeze up. so we did get in as a backstop i would say in that market the actual amounts we're buying are tiny the program will eventually expire here. i think we did the right thing we wanted to be sure that market was functioning, that it didn't freeze up. if you get a market fleesing up, traders won't trade at any price and that's when you get into financial crisis we've avoided that situation over the first 90 days of the crisis, so i think that was

successful probably just let that go for now. yeah, we don't want to let everyone be in the game of trying to guess the corporate -- which corporate debt is the right corporate debt. >> what about the stock market we're looking at near session highs right now. maybe the market likes your enthusiasm and optimism base case for the economy in terms of the forecast the market really has shown itself to be numb to bad news around coronavirus cases surging, hospitalizations rising, even some economic news. yes, coming in better than expected but still paints a picture of double digit unemployment and pretty steep challenges why do you think that is why do you think the market is taking off so much and why tech in particular? it was up 45% in five days what does that signal to you >> i don't know if all these valuations are exactly right,

but the general tone has been that you have a powerful tech sector which really led the u.s. economy. of all things to happen, this is putting a tail wind behind that process, so those companies are looking even better in an era where mobile technology has proven to be a god send. i think one of the lessons of the second quarter was just finished from the u.s. is work from home is extremely powerful and it makes sense we've been trending toward mobile technology for a long time here we moved into it in a wholesale way. lo and behold, you can get a lot of work done and a lot of product produced, a lot of gdp produced through that process. so that's very encouraging, i think. that's something that wouldn't have been 15 years ago in the way we're using it today

that part, i think, makes sense. i think also the markets read on this situation, which is that the bottom will be april, which i agree with, and that the initial shock is big and confusing but was not as big as what was initially forecast. you might recall the imperial college study saying 2.2 million fatalities in the u.s. to project for 2020 current projections are less than a tenth of that yes, it's bad. yes, we've had to adjust but it's not as bad as what would have been on the radar screen during that march/april period so it makes sense that markets would rebound a lot from the pricing of that period >> james bullard, thank you very much for joining us. >> thanks so much for having me. have a great day >> you, too. president of the st. louis federal reserve.

coming up, shares of tesla competitor nikola surging after a bullish note from jpmorgan word on the street on that call and others when "closing bell" comes back, session highs, 35 minutes left of trade and we're positive across the averages this selenite grey is so pretty isn't it? wow. jim could you pop the hood for us? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires? oh yes. can you change the color inside the car? oh sure. how about blue? that's more cyan but. jump in the back seat, jim. act like my kids. how much longer? -exactly how they sound. it's got massaging seats too, right? oh yeahhhhh. -oh yeahhhhh. visit the mercedes-benz summer event or shop online at participating dealers. get 0% apr financing up to 36 months on select new and certified pre-owned models.

33 minutes left of trading back to "closing bell. word on the street, bank of america upgrading caterpillar to neutral. in a recent survey the firm finding construction dealers are seeing demand starting to pick back up and some expecting to purchase more equipment over the next six months. caterpillar is up a percent. meanwhile jpmorgan upgrading nikola to overweight maintaining $45 target saying the stock is looking attractive forlong-ter investors given potential

catalyst shares surging up 30%. they have given back, will frfrd the recent gains off the march lows. >> puts it above jpmorgan price target, 10% from where it was trading yesterday. kind of a sneaky attempt to say bullish even though it wasn't higher from where it was trading and jumped above that. next, deutsche bank says apple's recent rally puts the firm in a conundrum. while concerned about new highs, buy rate, boosted price target to $400 a share to $380 a share. the firm saying apple should continue to offer upside to investors plus deutsche bank sees prospects of v-shaped recovered in apple sales, phasing out a bit, driving the nasdaq to record highs as it is again today. still ahead, brooks brothers

joining the growing list of retailers filing for bankruptcy in light of the pandemic we'll ask former macy's ceo terry lundgren if he thinks the sector is enforceable with so many sectors we mange. a check on bonds, holding steady, 10-year yield trading 0.655. we'll be right back.

welcome back, dow is up 152 points time to get cnbc news update

with sue herera. hi, sue. >> hello, sara, hello, rve body. here is what's happening this hour another state reporting record coronavirus cases, tennessee with 2500 new infections bringing its total to just short of 56,000. disney releasing some new details on safety precautions ahead of disney world's reopening on saturday. all guests must make reservations to enter the park and they will have their temperature taken and everyone age 2 or older will have to wear a mask here is a possible look at the new normal a baseball team in japan has enlisted 20 robots -- there they are -- to cheer on the players they will be dancing to the fight song of the defending champion fukuoka softbank hawks in a stadium that still doesn't allow fans the robots must have helped because they won the game 4-3. and they are kind of cute. that's the news update this hour i guess that's the new normal.

i'm not sure, sara, what the new normal is but that's a glance into the future. >> i don't know. maybe the temporary normal. >> right sue, thank you. >> you got it. >> sue herera. after the break, laura martin says facebook ad boycott could go on well past july she's going to join us to discuss the results of facebook's critical civil rights audit and what it means for the stock and its profitability. 27 minutes left of trade, solidly higher with s&p pushing high by 7/8 percent. tech still in the lead we'll be right back. [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught.

[cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. in a highly-connected lexus vehicle at the golden opportunity sales event. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer.

welcome back facebook is not going to fight scrim nalgs on its platform

according to independent odd i released today by facebook this comes as civil rights groups including naacp and the color of change called their meeting with mark zuckerberg yesterday disappointing. separately facebook announcing this hour it removed a number of networks that violated policies against foreign interference and inauthentic behavior, linked to roger stone, brazil and ecuador. needham with a hold rating on the giant. laura, good afternoon to you thanks for joining us. i guess the first question is the reaction to the in audit how surprised are you by what we learned and how significant for the stock? >> i think in terms of the surprise, i think there's been a lot of bad press about how facebook is reactive and piecemeal and not lead in social media areas or socially civil rights areas, so some of the

report findings they had active discrimination last year on their platform against muslims and jews and have not taken it down i think recently advertisers have gotten involved, there's hate speech. they don't want it next to white supremacist or hate speech, which brought it into the money room, which is the seat i occupy. >> when you say they typically have piecemeal approach, reactive approach as opposed to leading by example, will that change now given that companies are pulling off the platform or it will die down quickly and they will be able to go back to their age old approach which, let's face it, hasn't hurt their share price. >> maybe i think what's happening is brand trust is being undermined. we saw they made promises to ftc and ultimately got fined $5 billion because the ftc did not believe they had kept up their

promises if that happens here with advertisers as well, they promise something and advertisers come back, those money drivers would tend to be less understanding if facebook doesn't meet its commitment. right now it's not making commitments to them at all i think this is a brand trust problem. >> so why does the stock keep going up it's up today despite scathing news and bad headlines it's up despite big name advertisers pulling out. it's trading near record highs what ultimately cracks the business case for this stock. >> so we have to see it in the p&l. when mark zuckerberg and sheryl sandberg do nothing, that's great for wall street. it says they aren't going to spin more money trying to moderate content they are not going to limit the types of content they post, which might be popular and get some advertising from super fans and they are going to do

nothing" the facebook model is awesome monetary model they see out of 7 million advertisers brands are not important, maybe 10% of total advertising. my opinion is slightly different than that assessment, which is why we have a whole. all set at auction, up to a million businesses going bankrupt because doors have closed during covid lockdowns and now 1,000 brand advertisers globally boycotting facebook both of those are down drafts that affect every auction price and cost per thousand that facebook sells i think it will show up in the p&l. when it does, wall street will reassess. >> your price target is? >> we have a hold. we don't do price targets for holds. >> thanks for joining us. >> my pleasure. >> up next twitter makes a move higher one firm lays out top picks among g bibanks. those stories and more when we

take you inside the market zone. you say that customers make their own rules. let's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g, everybody's talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item, corner offices for everyone. just have to make more corners in this building. chad?

your wireless your rules. only with xfinity mobile. now that's simple easy awesome.

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.

about 17 minutes left, dow down 157 started the hour flattish, s&p 500, up .6 of 1% joining us for last chance trade, ceo josh brown is back. josh, good to see you. what are you picking >> you know what's not flat on the day, chinese equities have absolutely been on fire the last week or so i talked boult this on the blog over the last week, a five-year break out for chinese stocks depending which version of the chinese stock market you're tracking, that could be really big or medium-sized. pretty much every chinese equity is working right now i think there were make announcements in china good for this talking about equity exposure up to $100 billion for themselves, which in turn leaves people wanting to be ahead of those buys but bigger picture, i think there's a sense the chinese

economy has weathered coronavirus better than the u.s. economy and i think some institutional flows are headed into those stocks. they also have a lot of technology so relative to other foreign markets, if you think that tech and software, china is one of the places for equity exposure and play that theme. the names i want to show you, k web is probably familiar to viewers of this program. i talk about it a lot. that's my proxy for chinese internet giants, an absolutely monstrous move i would wait for low volume pullback these are the best names it's worth keeping an eye on fxi. it tracks an index meant to approximate blue chip chinese stocks on the london exchange. this pays double the dividend over 3% yield than the other chinese large cap fund, which is

mchi i should have charts for all three of these up on screen. mchi is, i think, a good way to get exposure to the mainland chinese stocks that foreign investors are able to access i think everyone should research names, look for low volume pullbacks and try to get exposure to china. >> thanks for that one shanghai up 6% year-to-date compared to s&p down we're in commercial-free coverage of action going into the close. cnbc markets mike santoli breaking down crucial loans of the trading day along with josh brown who you just saw with us as well. let's keep things off, stocks climbing as we approach the close, not right alt session highs, dow down 150, up 200 at the session highs but up over half of 1% nasdaq leading skharnlg up over 1% and set for another record

close. docusign mike santoli, what a roller coaster ride in the last 24 hours. you've been tweeting about it. does that take away or add to the gains we're seeing and the fact we're going to have another record close for nasdaq? >> it's roughly in line with nasdaq leadership. a roller coaster, it's a pretty boring roller coaster if you're going up half a percent, down half a percent i don't think that's a bad thing. we have drifts up and down, these little flurries of action. basically microsoft and apple are worth 75% of dow's gain. microsoft, apple and amazon on a net basis. you can't say all three stocks my point is that the market has not been able to really get a lot of downside at the moment. even as most stocks, self-correction four weeks in the average stock, equal weighted s&p is struggling

the big stocks where the market cap is is holding up why is that? i think professional investors not overexposed to stocks they don't have to sell on pullbacks. have you a hedged up market. that's really a formula for holding the range while those growth stocks more or less do the work. >> josh, today we're a down day. the reasons would be numerous. we could point to more bankruptcies, fewer restaurant reservations being booked in hot spot states. we could point to higher case numbers and higher hospitalizations what we get on these down days is a remarkable resilience sometimes into the close this turnaround and strength in stocks what are you pinning that is to? >> i think that's a function of which stocks have all the market cap and which don't. sometimes the market is very complex. this time it's not i think the story has been the same day after day the tech sector technology as a sector is up 18% on the year

the s&p is essentially flat. there are no other sectors of the s&p that have a double digit gain none not even health care, not even consumer staples where you would think that would be happening. this is a very unique situation. even look today, sara, what worked today it's very bizarre in addition, home builders and gold miners are the best industry group. no story you can tell. it's random. no story in which -- all right fine i guess we'll accept that but not a story that economic growth being great for home builders, it's very sloppy but tech is straightforward, not complicated. it's a greater and greater part of where businesses and people are spending money it seems to be pretty unaffected or if anything, it benefits from the scenario we find ourselves in today we have 3 million cases of coronavirus.

that's not going away. 60,000 new infections nationwide not the kind of record we want months into this crisis but here it is. why wouldn't they be reaching for alphabet and apple makes perfect sense to me. >> apple, microsoft, nvidia, chip names higher. how about tesla, goldman sachs raising to $1300 a share from $950 on the back of better than expected second quarter deliveries meanwhile reuters reporting tesla is having a moment in south korea. the electric carmaker seeing its best month in that market with more than 2,000 deliveries in june and 4,000 more on order according to sources reuters noting model 3 is number two imported car beating out bmw and audi another reason, maybe, mike for people to be bullish on tesla. it's interesting the pullback is so small relative to the size of gains we've seen. >> another excuse to be bullish.

i would put it as excuse rather than reason. at some point we have to step back and say we're talking about quarter trillion dollar market cap and numbers in four digits in terms of sales in south korea we're talking. the scale of the company as a financial entity is so raced ahead of what, in fact, the business is doing right now. now, we can project ahead. you can tell me about a million units and massive margins on carswe well over and above all that aside, i do think the story is in place just because the momentum is in the stock i think that really is the direction it works the stock got momentum and bulls in charge and we have to knit the rationale from that. >> what's your advice for anyone getting into this name currently wooed by this momentum to the upside >> i don't have any position in tesla and i've never had a

strong opinion about whether or not somebody should be buying or selling. i've always looked at this as a dirt story depending on whether or not you're an investor or trader but i don't think that's been the right take. both investors and traders have done well here now for the last couple of years almost consecutive months there really hasn't been a tough period for tesla short-term or long-term in a while my advice is to understand at a certain point starting valuations will matter i know that seems ridiculous when you look at a stock that tripled. starting valuations didn't matter it was expensive before the triple they really will the best example i point people back toward is nifty fifty stocks in the 1960s. everyone was right about how promising the future was for mcdonald's, procter & gamble, coca-cola, xerox everyone was right those were

going to be the growth companies but the share prices you had to wait 10 to 13 years to get back to where you were in the mid-60s sick by the time you got to the '70s, you were negative in those names. that is something that could happen, not only tesla but pulling ahead enthusiasm at a certain point it will matter i don't know when. >> initiating coverage of the sector today ahead of next week. the firm says it favors capital markets over traditional banks citing uncertainty around credit risk, dovish fed and negative implications for interest rates as reasons to stay traditional on banks names goldman sachs and morgan stanley rates jpmorgan and state street as buys remaining neutral on bank of america and wells fargo. we've been talking in recent weeks. we go to snapshot of the bank

index and you see how much we've pulled back since the highs a moment or so ago down some 20% when, of course, the rest of the market has plateaued or risen to that point, the commercial banks versus brokers over that period since the start of june, wells fargo is down 26%, morgan stanley down 2, 3% so perhaps pricing in already what could be expected for q2 earnings i guess the key is whether we've priced that in and whether stock differentiation can continue as we approach the earnings mike, the other point i've been bringing up is just on any day when the banks have shown some gains relative to the rest of the market by the close they tended to be below the rest of the market so people have been very eager to take profits in the banks over the last couple of weeks as we approach earnings kicking off next tuesday. >> it fits just right in the same kind of chain of assets

with what's going on in treasuries and the idea of zero rates forever. just this general disinflationary theme and inability of the value story to really take hold that doesn't mean it lasts forever. obviously cheap enough periodically and have massive moves to the upside, too stretched relative to the rest of the market. we saw that a couple months ago. might happen again what i feel about this call, it's kind of more or less moving to where the market is capital markets names over retail oriented and regional bank. >> let's move onto twitter shares rallying on the potential for new subscription platform. julia boorstin has the details julia. >> sara, that's right. twitter shares surging on a rumor the company is looking to build a subscription service this rumor sparked by job listing that mentioned development of subscription platform sources close to the situation

tells me a subscription service is one of many revenue generating options twitter has been considering but no announcement in that area imminent ceo jack dorsey kicks around subscription tier and twitter management talked about a push to create new revenue streams. that follows pressure from activist investors elliot management but it does not seem like anything imminent here. probably a bunch of different hires in different areas, sara. >> what a crazy move for the stock, though, just on that prospect julia, thank you julia boorstin josh, i think you've owned this stock. are you still in it? >> no, i got out of it a while ago. i did not make money with twitter. i think i sold it a couple points higher. i sat in it since the ipo up until probably four months ago or something like that it was a huge missed opportunity because you could have thrown darts at other technology stocks and probably had a double or

more over that same period of time in almost every other tech name so twitter was not successful for me as an investment. i also would not -- i would fade any enthusiasm around a subscription product i don't know if you know this, but this was actually attempted. the guys from bespoke investment built a tool you know, paul and justin, they have been on your show, sara. >> yesterday. >> yeah. what creators ended up finding, i gave it a shot, you run out of stuff to say you have people paying you a subscription and it's like am i worth it as an individual creator i'm saying maybe there's a market for content companies that haven't, for whatever reason, figured out how to do subscriptions on their own. twitter. medium gives away to do this already. for me, who would i even pay to follow their tweets? maybe ramp capital if he went behind a pay wall but i can't think of a lot of people

i'm not even on twitter at all anyway i just i don't know that i would be buying the stock on news of a prescription product i don't think that will save it. >> the question could have been if they had done what apple news tried and not totally successful before apple did it, you pay one flat news subscription and you don't have to clec into log details for various news organizations when they post it. but i think the moment you suggest is past for that mike, quickly on this news, 7%. >> sounds good. >> walmart yesterday had a nice jump by mentioning the word subscription. >> no doubt. the market loves a subscription model that works to me what it says about twitter is there's a high sensitivity to any idea that twitter might become better financially managed. right? so everyone loves how entrenched the product is if there's a hint they might be monday advertising central role

to content for people for money maybe that's worth an upside also in a market it doesn't take a lot to get people a little excited about a buzzy name like this. >> up % on t7% on the day. we've got two minutes to the end of trading sberms, a little higher. >> market firmed up throughout the hour and internally as well. started out being basically 50/50 day up and down, advancing volume handily outpacing volume. pretty much the reverse of what happened yesterday when we saw the market go south starting 2:30 eastern time. take a look at this one. year-to-date copper against s&p 500. copper getting a lot of attention, upside momentum, copper versus gold performing well people thinking pretty good signal, global economic recovery whatever you want to say interesting copper outperformed s&p going roughly in line with it for a while

it would support a case for risk assets if you believe there's a decent message to listen to from copper take a look at volatility index, has backed off key point, high 20s is rich in terms of premium one, it's been 4 1/2 months above 24 or so that's a lot of money being paid for put options. therefore the market has a lot of downside protection seemingly built into it. there's still anxiety and stress in the system based on what comes perhaps between here and the election it's moving in the right direction backing off by more than a point. >> just under one minute left of the session. mike was saying final hour of trade, dow down by 165, high of the session was 219, not too far up s&p up 0.4, nasdaq set for a record close up 1.4% within s&p 500 tech is best performing sector followed by consumer discretionary

bottom of the pile is materials. gold continues to move high, nicely above 1800, up half a percent. dollar is lower by half of 1%. as the bell goes we are not too far from session highs, 180 points on the dow, 0.7, s&p 0.8% another record close for nasdaq composite up 1 1/2%. [ closing bell ] >> boy, so strong. that tech trade had a pretty strong close for stocks overall. welcome back to "closing bell" if you're just joining us. take a look at how we finished up the day on wall street. dow surging into the close up 177 points the high of the day came after the open up more than 200 points as you see we climb throughout the final hour of trade and ended on a high note the biggest contributor to that was apple. apple and microsoft by far biggest winners in points contributors for the gain.

up .8 of 1%. for the week up 2% so far tracking a second positive week in a row for the s&p 500 apple and microsoft biggest impact there as well the nasdaq composite in a record close up almost 3% so far for the week the tech trade remained strong semiconductors with a good day, so did fang stocks nasdaq 28th all-time high of 2020 -- excuse me, 25th record close of 2020. 28th intraday record high. still, you get the picture russell 2000 small caps up .8 of 1% small caps played into the rally as well. coming up we're going to ask former macy's ceo lundgren whether so many retailers filing for bankruptcy and pain in the sector joining us to talk about the market ceo josh brown still with us along with joe louis head of

corporate hedging at jeffries. first last hour spoke to st. louis fed president bullard said it could go down overall optimistic, relatively optimistic here is what he said about the outlook. >> i'm still pretty optimistic in my base case about the recovery -- i understand that cases -- confirmed cases are up, estimated cases up only slightly, so the model so far doesn't want to put a lot of estimate -- a lot more estimated cases out there. but what i like about the third quarter here is there will be a lot of adjustment in the private sector, a lot of businesses thinking how they can get their products out the door in a situation when the disease is still out there. i think it can be done it can be managed. >> st. louis fed president jim

bullard, mike, i thought characterizing how the market, how investors are thinking about this, which is better than expected and continuing improvement. he even cited masks, if more people wear masks, things should continue reopening what do you think about that view from the fed? >> well, continue reopening and the corporate sector adapts. those things put together is basically what the market has been conveying for a while now also, if you just project ahead several months, obviously crucially important what we see day to day in terms of the case load, in terms of hospitalizations all the rest of it, it's very, very important for policy and life in every other way. for the market, it's a way processing things in terms of what the discounted value of the future is today. it's a little bit less important so if you can kind of look ahead and feel as if a lot will be sorted out or no worse than today, maybe you can justify where you are. meantime, this is not take market where every kid gets a

trophy growth stocks are dominating market keeping itself in the game by gravitating that direction. that's been the story for a while right now. arguably people are pointing to the fact maybe as meg was saying an hour ago you saw case counts curling lower in hard hit surge areas. maybe that's an excuse for what's going on this afternoon. >> josh, if we did see a national mask mandate, almost a preventive measure as being a reactive in hot spots, do you think the market would rally on that news? >> that's a really great question i'm not 100% sure if i feel that way because i still think there are a lot of people who look at the masks assets ineffective or more like a statement than like an actual preventive, which, of course, i disagree with. i don't walk into a public establishment without a mask these days it's really hard to categorize investors class as they all believe one thing in terms of

the politics around masks, the actual usefulness of them. i don't think i have a great answer to that but i do think that's an important question because i think we're getting to the limit of our tolerance of this resurgence before we start seeing the white house get active again i think there have to be people in the administration and the campai campaign's ear to i sa, okay, time to start addressing this. we already did the thing where we pretend it doesn't exist. if they do start talking more about coronavirus, to me that's the question how will the market take that? will the market take that as a sign washington is afraid or will they be encouraged and say, okay, from a federal level we're going to reengage in this fight. i'm not sure i have the answer to that, wilf, but i agree with you it's the right question. >> the other thing we keep hearing from investors, they are looking at the mortality rate in this country as cases have exploded, we have not really seen a surge in the mortality rate it continues to trend lower over a weekly period.

yesterday a tick up but that was after a long holiday weekend that's a key determinate not just because the market cares about it but could influence behavior and whether people will go and participate in the economy, whether they feel comfortable sending their kids to school, the hot button debate at the moment. it seems like mortality rate, not case spiking rate, something allowing tock to make new highs. would you agree? >> you know why that's such an important point you made, sara i think there's a parallel to that in the stock market so yes, i think one of the most tragic thing that happened at the early stages of the pandemic was sending nursing home patients back into their nursing homes. it wasn't done out of malice, we really didn't know what was going on that had a huge impact, we know this forensically, had a huge impact on the death rate i think now it's very different. they are reporting this resurgence but it's a lot of

young people in certain areas like a median age of 33 years old being infected, which means a lot of people in their 20s, which means not as much death, not as much ventilators. the parallel to the stock market, look what's working this year you know what the best performing style of investing is in 2020? not just growth stocks, ipos we know that because there's an index etf that holds onto newly public companies it's up 42% this year. there is no other factor that even comes close to the gains, the ticker's ipo and you know what's in there. lyft, uber, moderna, it's data dog, crowd strike, all the stocks we talk about on the show up 9, 10% every day. so you're seeing that play out with investors risk appetites, not just risk appetite to be out on the beach and at nightclubs

but the types of stocks that are working. it's indicative of there being young people who aren't as afraid as the older people are and you see that in the way they are trading and you see that the way they are living their lives at night and on the weekend. i don't think that's going to change right now regardless of what the headlines say. >> doesn't beat buy tesla and forget about it strategy but i totally get your point joe, i want to come to you about the broad factors moving the u.s. dollar so far this year is it very closely tied overall to risk sentiment and what the s&p 500 is doing in a negative correlated way or are we moving back to the dollar trading based on fundamentals again? >> what we are talking to our clients about is basically planning for all outcomes. the story that's dominated the market, obviously, is the virus and how countries individually are reacting to the virus. then you have the overplay of

what type of monetary policy or fiscal support each country is giving so overall i think at the start when we thought the virus elsewhere, it was largely a dollar story now we've come back and see it's more idiosyncratic country by country, see that through what's happening in brazil, a rally and selloff. you find that it's going to be very local, what's the story on the ground, how are you addressing the virus, what type of fiscal and monetary policy are you implementing and your ability to get it out. so i think for now it's going to be, you know, obviously dollars quality, going forward country by country and situation by situation. so we're working with clients that plan for both outcomes. some countries strong dollar and some countries a weak dollar. >> well, since we have you,

another big discussion point today, the trump administration has reportedly considered undermining hong kong's dollar peg possibly by limiting the ability of hong kong banks to buy u.s. dollars in retaliation to china for security law. heavy pushback from some members of the administration. hbc named as one potential target falling on the day. joe, can you explain what this would do to global markets if such an approach was taken seriously by the administration? >> as we think about something like that first and foremost what happened to companies that operated in hong kong. for a long time companies have used hong kong as a conduit into asian markets. if you look at it, a ton of --

most banks have an office or location in hong kong. the ramifications, one, it's going to create more volatility. what we're hearing on the trading desk is probably similar to what you mentioned. no one think it's a high probability event but obviously now it's on the table so it is a consideration. overall the big thing to consider is how are u.s. companies that have subsidiaries, how will this affect them. the other thing, its ability to push back is relatively strong the last thing you want right now is a currency war. it's been considered, but when you ask around for traders, general feedback, doesn't feel like it's a high likely event but obviously create volatility if something might happen.

>> not to mention impact of hong kong citizens who didn't support chinese side of the security law in the first place josh, pivoting away are from that issue, i want to ask about earnings season which picks up with the pace. are you excited about that >> i think the banks have shrunk in importance in two ways. obviously as a personal of the market cap of the s&p 500 we know that's true but also in terms of sentiment, i don't think investors right now view the banks as a systemic as a pressure point in the coronavirus pandemic they seem to have gotten early stages right they took a lot of charges up front and increased in order to take charges early in the process. i don't think there will be huge shoes to drop there. i think this notion that the government is back stopping a

lot of the most risky loans they have been making this year by design probably takes that pressure off, too. however, you've got shrinking the margin, very little in the way of classical bank operations being very profitable. i don't think there are huge expectations here around that. it's probably not a huge issue for the market even if companies manage to disappoint already lowered forecast. >> banks kickoff tuesday of next year thank you both for joining us. brooks brothers, the latest well-known retailer to file for brpts. up next we'll ask macy's ceo terry lundgr aens more retailers close their doors. back in 90 seconds hey there people eligible for medicare.

gimme one minute... and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza is your part b medical expenses. this much - about 80% - medicare will pay for. what's left is on you. that's where an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company comes in. this type of plan helps pay some of what medicare doesn't. these are the only plans to carry the aarp endorsement for meeting their high standards of quality and service. so call unitedhealthcare insurance company today and ask for your free decision guide. with this type of plan, you'll have the freedom to choose any doctor who accepts medicare patients. and when you travel, your plan will go with you - anywhere in the country. whew! call unitedhealthcare today and ask for your free decision guide.

welcome back, mike santoli, market cap mike >> this obviously has been a real constant discussion point, the fact there are five stocks, largest five stocks in the index, all tech stocks, nasdaq account for s&p market value this chart interesting from allgaier management. 20% is attributable to stocks so is 20% of free cash flow attributable to those five stocks the market is essentially gravitating to where the greatest share of earnings power is it was also the same in 2010,

more or less synchronous with market cap versus free cash flow generation by five top ones at the time then you go back to 2000 if you're talking about this being a rerun of that bubble, that's what it looked like 14% of the market value at the very top five of the index responsible for 2% of the free cash flow. there you have massive misevaluation of large stocks. this is perhaps reassuring for those that think the market is laying too many bets on a small number of companies, guys. >> a red hot housing market, shares of home builder taylor morrison soaring after record june sales number. coming up we'll ask company ceo whether uran flight is driving some of that growth. listen to us live on the go on the cnbc app we'll be right back after this short break. save hundreds on your wireless bill

without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the data you need, starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile.

stocks closed higher, strong finish for wall street dow ending up 177 points no major directional driver.

you had technology as the star of the session nasdaq closing at a new record high apple and microsoft driving the dow up 177 points. s&p 500 also closing higher and up 1% as a whole consumer, tech and financials ledthe charge. home builder taylor morrison reporting record sales we'll talk to that ceo coming up about the home sector in the u.s. let's talk about retail it is the end of an era for some of the most iconic retailers a story that continues brooks brothers filing for bankruptcy as it searches for a buyer. so far the retailer planning to close stores founded in 1818 brooks procedures latest to fall to the pandemic with more expected to come down the pipeline, how investable is the sector let's bring in our guest terry

lundgren, former ceo of macy's, longtime retailer. good to have you here, terry what's the prognosis in the industry how do you make an investment in retail right now >> i think as has always been the case, sara, you've got to pick your shots in the industry and certainly more pronounced today. start with essential retailers those guys have been open for the whole portion of the pandemic while they have been open, they have not only been stealing market share but investing in the future for their business. you've got to go with guys like target and walmart i think are doing fantastic, innovative things and reinvestinginto their future i'd start there. >> where does that leave -- >> you just mentioned brooks brothers. >> go ahead, terry. >> i mentioned to you before, sara, there's going to be a lot of shakeout. a combination of bankruptcies.

those are hanging by a thread and not able to invest in their business there's weakness and opportunities up for the strong ones that come through here. i think that's another place you invest picking winners out of this post coronavirus fog. you'll find winners and losers but a different marketplace, smaller, fewer stores and frankly less competitors that will be good for the winners. >> you know how important back to school season is, you know how important holiday season is, you live this. how do you operate a major retailer like macy's in this environment where there's no visibility what it looks like. >> it's obviously complicated, because what back to school was, it was an occasion it was an occasion to buy. buy apparel, buy accessories, buy footwear obviously that occasion doesn't look very promising. having said that, over the last several years, the whole back to

school business has turned into back to athletic wear and back to athleisure. not as damaging as it was years ago but still an overall negative for the industry. >> terry, aside from the walmarts and targets, you are saying there will be winners in individual brand names or retailer names fairly beaten up at the moment. have department stores declined enough for people to consider buying stocks in some of those. >> wilf, i hope so i hope so. it's been hard to readdict for sure because they have been beaten so badly. they think they are going to open and then all of a sudden they close again it's been challenging for the sector i said to you before in a previous conversation that those who are highly leveraged, those

who have a weak balance sheet, those guys are in trouble. they will never get through this, at least not in the same form coming in that's where the weakness is i think opportunities for the stronger, the ones with the stronger balance sheet to come through and take advantage of those weaknesses andtake marke share when this is over. >> amazon up 66% so far this year walmart is up 5% so far this year walmart now according to recode i guess going to launch a similar sounding prime subscription service what do you think about the rivalry between these two e-commerce players >> i love it i absolutely love it >> why >> amazon has done well. incredibly innovative, super smart with the way they attacked the business of course, the covid-19 virus, sara, just played right into

their hands, of course, most customers were quarantined and couldn't go in physical stores i think the fact walmart was able to stay hope, they have done a fantastic job they are doing new innovative things i love using parking nights at times when they aren't busy turning it into a drive-in theater. i love the invasion walmart is doing. they have nothing but upside on online business. amazon is already the powerhouse there but walmart is going up. they have got an upside potential here as does target. both were very underdeveloped a few years ago with online penetration. they are now catching up aggressively and i think investing heavily the right way into making their companies much more digitally friendly to consumers. so i like the rivalry very much. i think it makes them both better i think walmart at 23 pe versus amazon 147 pe, i think i like the investment opportunities out of walmart and target for the

next several years as an upside opportunity. >> do companies like your old company macy's deserve more government assistance? >> i think, you know, it's been challenging, wilf. the fact of the matter is this is nothing about what they did it was all about this virus. and the fact retailers were able to stay open and some were not delta difficult hand i understand of course independent the reasons why. having said that, walmart, target, amazon, shells apparel, shoes, were able to sell those products during the pandemic where all the clothes stores, nordstrom's or macy's were not able to do that in physical stores, a large percentage of their business the answer is they have been delta difficult hand and i think they do, indeed, need total back on their feet and need

government assistance to do so they are an important part of the fabric of retail they are an important part of consumption in america this is what drives gdp and i think it's important the government be there to assist them in this time of need. >> that's sort of where i wanted to go, the jobs picture. we could get to 7% by the end of the year, an optimistic take given we're in double digits right now. can that happen while retail is struggling so much as, what, single biggest job creator in this country >> 32 million at least in january, 32 million jobs in the retail sector, 52 million, don't forget 20 million that supply retailers or help ties retailers or have another role directly dependent on retail sales and performance. so 52 million, 1 in 4 jobs in

america are retail or retail related. i think without a strong retail business, those are challenging numbers to get to. i think a long, slow recovery so i'm concerned about that we need retail back on their feet and that's a major part of gdp as well, consumption you want people employed you want people to be employed, to feel good about what they are doing and how they are contributing as opposed to the government having additional long-term bill for unemployment that's not in their current plans and budget >> terry lundgren, always appreciate your thoughts thank you for joining us >> nice to be with you. time for cnbc news update. >> former ceo of macy's. >> with sue herera hi, sue. >> hi, everybody here is what's happening this hour california reporting 11,700 new cases of coronavirus topping the

previous daily record by about 4 1/2 thousand the governor you see there, governor newsom says about 2,000 are from a backlog l.a.'s top health official said the recent surge is endangering reopenings this fall that's according to report in "new york times. barbara ferrara says she does remain hopeful it will be open but says all school districts must have a plan for remote classes. nba bubble is expanding. players from orlando magic were the first to arrive today. a few teams showing up each day to minimize overlap. screamage games are set to begin in two weeks everybody is getting tested. that's the news update this hour sara, i'll send it back to you. >> sue herera. sue, thank you just to recap the day on wall street, strong finish to what

was ultimately an up day, dow closed up 177 points, technology was the standout performer microsoft and apple led the dow. the nasdaq had a record close. we continue to see new highs for similar names like sales force and service now, paypal, apple, microsoft, all the fang names did well as well banks had a good day so did consumer diseasary after the break, ceo of taylor morrison one of the nation's largest how many builders reported record sales for june what's driving that strength, that's next. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses. learn more at protectedincome.org .

woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. wrbz tough times for retail bed bath & beyond earnings just out. courtney reagan. >> hi, sara. for of the first quarter reporting a loss of $1.96 compared to analyst expectations of $1.22 a share revenue light, 1.31 billion compared to $1.39 billion

expected so in total sales were down about 49% for the quarter. the company does say digital sales up 82% remember, stores were closed for post of the quarter. digital sales made up two-thirds of total sales margins down 8 percentage points, inventory up 7%. the company does point out it has $1.2 billion in cash and equivalents. no guidance given. they say they are close about 300 stores over the next two years. it looks like they currently with a fleet of about 1500 shares of bed, bath, and beyond are down more than 2 1/2% at this point we will speak tomorrow exclusively with the ceo mark triton it's his first interview as ceo of bed bath & beyond a lot of questions as he leads the transition of retailer during a difficult time. before i let you go, costco reported june sales, comp sales up 11 1/2%, inclusive of foreign

exchange in gas compared to 4.2% from analysts. sara, back to you. >> quickly, was bed bath & beyond an essential retailer it was not allowed to open >> that was kind of a tricky question, sara it owns harmon and harmon face values which sell essential products so in the beginning it was sort of uncertain which stores could stay open and which couldn't so for a while they were able to keep some stores open and ultimately ended up having to close them a little split in the beginning because of the other brands. >> got it. courtney reagan, thank you some breaking news on amazon kate rogers with the story kate. >> hey, sara, that's right amazon letting sellers know it is going to be removing washington redskins merchandise from the website after the nfl called on the team to change its name in a statement and note to

amazon sellers, the company basically said it's going to pull a variety of products that feature the team including juniorseys, t-shirts and sellers have 48 hours to review and remove products flagged by amazon in a statement with the announcement from washington team and nfl we're removing the product from logo and stores this was in a notice shared by ed rosenberg who runs a sellers group for amazon fail or properly delete all restricted product listings from your inventory may result in deactivation that would be seller deactivation, sara, back over to you. >> i'll pick it up there thanks so much for that. taylor morrison shares soaring, up almost 17% today. this comes as one of the nation's largest home builders announced june was its best sales month ever with 94% increase in net sales year over year helping those sales is the company's virtual tour

technology remotely during pandemic ceo joins us thanks for joining us. congrats on that incredible number what do you think drove it primarily? >> thanks for having me here today. there's so many things going on right now. obviously when we think about march when it all happened, everyone had to adjust after we sent everyone home and really began communicating with our customers in a virtual way, the technology has been enhanced each and every week and we've seen just this tremendous result week over week sense early april. then as we reported today, june up 94% year over year. what's really happening is we're communicating with the customers the way they want to be. they get to decide do they want to do this entire sales process

virtually, do they want to come in for an appointment, do they want a hybrid. it's flexibility it's giving home buyers. >> i assume this extraordinary number is much more down to low mortgage rates and lack of broad amount of supply as the virtual nature of the app you offer which perhaps enabled it but on the driving factor. >> absolutely. like i said, so many thing going on you think about interest rates at historic lows, you think where we were prior to the pandemic we had so many tail winds working with us, when you think about the demographics and boomers needing to buy inventory were tight in february and march and only tighter since then i think the other couple of dynamics really working in our favor is there's a bias.

i believe when i look at the research our teams have been doing over the last 12, 14 weeks, people are quoting they want new, fresh, a place where wellness features really will make sense for them. the number one reason we're seeing from both buyers, shoppers, folks coming through the internet or in our doors is they need better technology. that might be because one or both parents may be at home, because their kids are staying home from school they need more rooms they need office space, bigger rooms. then most recently we're really seeing a pick up on folks i'll say want more rural or suburban locations. initially there was a lot of talk about that but it's really coming through our buyers today. >> key question i guess, cheryl, is whether that momentum can continue, especially in exposure states that are seeing rising

case numbers and rollbacks of reopenings what have you seen since the numbers? >> yeah. really good question, sara we have seen -- if you think about the states that have gotten the most air time with the rise in cases, that would be arizona, texas, florida, california that's where we're seeing some of our strongest sales interestingly enough, we might be seeing a reduction in foot traffic but a tremendous increase in web traffic in really every way we measure it it doesn't matter if it's making these virtual appointments we interested technology in april. over 8,000 appointments done in the last three months. so the interesting thing they are finding a way to communicate with us. it's about time.

as an industry, i call this the covid silver lining that it's really allowed our industry to catch up and make sure we're communicating with customers i think the last thing to your point, sara, is through all of this and through the tracking that we're able to do on the web, there's a tremendous correlation to future sales, especially our newest technology we introduced last week, which is online reservations, where people can come online and put a 24-hour home in inventory house. >> sheryl, thank you for joining us with some color around those numbers. keep us posted. >> thank you so much have a great day >> united airlines warning 36,000 workers of potential job cuts despite taking massive taxpayer funded loans because of the coronavirus. coming up we're going to get reaction from afl-cio president richard trumka who represents

pilot and flight attendant unions plus talk about president trump's threat to cut funding if schools do not reopen in this country. we're back in two minutes. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

nepryaeva president trump threatening to cut funding for schools that don't on.pe we'll ski with richard trumka alf cia. liberty mutual customizes your car insurance,

so you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

snhu let's you transfer up to 90 credits - [announcer] if you've tried college but never finished, toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu. blasio announcing schools in the strict may not fully reopen in

the fall instead limiting attendance to two or three days a week this is after president trump threatened in a tweet to cut off funding for schools. cdc guidelines for opening schools are too tough and too expensive. joining us richard trumka, president of afl-cio which also represents american federation of teachers. thanks for joining us. this has become the political issue of the day as far as coronavirus. what is the teachers position as far as reopening. >> look, teachers want to go back to school the question isn't whether they want to go back or not they want to go back and do it safe how do we do it safely teachers are fiercely protective of their students and their communities and they are not going to let their students or communities get hurt because of a half baked plan. they want to make sure it's happening. look, each community faces challenges related to covid-19 to ensure reopening plans

address those challenges you have to have broader work and community. that's necessary it's going to take investment, sara we need investment in infrastructure to physically distance, to stagger classes, to provide personal equipment, to test, trace, isolate, to make sure we have proper ventilation, make sure we do proper cleaning. all those take money the president should be figuring out how to help us pay for those and pass the h.e.r.o.e.s. act which will help communities open those schools rather than attacking schools and teachers. >> all those things obviously would be great and are necessary. however, the economy is reopening. they take time, too. for the economy to fully reopen, we need kids to go back to school why isn't it good enough teachers wear mask and socially distance like the rest of the workers that go back to work. >> if you listen to what i said, first of all, we do have to

physically distance. that takes money you do have to stagger classes you have to have personal protective equipment you have to test, trace, is latlat -- isolate. if you get them back to school and they get sick or the teachers get sick we haven't done anything. you're absolutely right. economies can't open unless schools open and schools can't stay open unless we do it safely that's why it's important for the president to help us pack the h.e.r.o.e.s. act so we can help local governments open schools as quickly as possible and as safely as possible. >> i wanted to pivot you, if i could, richard, to the news we've heard from united airlines, they plan to furrow around 36,000 workers, about a third of their frontline employees. this comes after they received government help, which was always flagged after being allowed the end of september what do you make of that >> well, first of all it would be devastating for them to start that trend and lay off 36,000

workers. not just 36,000 workers but to every community they are in. that's why we need to pass the h.e.r.o.e.s. act it will help companies keep people on the payroll. it will help local governments open schools it will do the things necessary for us to get the economy back open in a safe way so that we can keep it open rather than have a bunch of false starts when we do this thing politically like we saw in texas and a couple of other places >> richard trumka, thanks for joining us. >> thanks for having me. up next the coronavirus drastically changing how people are traveling and hotels have taken major notice we'll go behind key travel shift and which stocks could benefit when we return dear fellow business leaders and technologists, i feel the weight you carry, as i carry it myself.

but as i reflect and see all the amazing things you've been doing... one thing is clear, technology has never been so important. you're turning living rooms into conference rooms, backyards into school yards, and bringing doctors into homes virtually and securely. you are transforming business models and virtualizing workforces overnight. because so much of that relies on financing, we have committed two billion dollars to relieve the pressure on your business. and to help us all emerge from this, we've opened our supercomputers and patented technologies to scientists around the world, accelerating the search for a vaccine. this isn't easy. but as you adapt and move forward, we're here with the people, financing, and technology, ready to help.

save without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the data you need, starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile.

the coronavirus has changed what travelers are looking for and the moment industry is taking notice. >> a new survey found that 72% of respondents are opting for a road trip this summer because it feels safer than flying. their top concern when traveling, health and safety and avoiding crowds. it speaks to why extended stay hotels have outperformed during the pandemic rooms tend to be larger, offer a kitchen, less interaction with

the staff. data shows may occupancy for extended stay hotels rose to 51% compared to a 33% average for all u.s. hotels. that's helped brands like hilton's homewood sweets, extended stay america and others if this trend lasts, it could change the type of hotels developers build it also is pushing hotels to offer more in-room dining and fitness options for those who are really trying to social distance when they travel. >> makes sense up next, a bubble food goes viral. teams taking part in the nba's 2020 season have started arriving at the isolated bubble in orlando the food there being served is making major waves on social media. [indistinct radio chatter]

(vo) audi e-tron. the next frontier of electric.

nba players are staying in what they're calling the bubble at disney world orlando as the league takes its first steps to resume its season. players aren't supposed to leave the facility and they are having their meals delivered to them. based on the photos of those meals, they don't seem to be what the multimillion dollar athletes are familiar with a photo posted by troy daniels included watermelon chunks, staci's pita chips and a salad another featured pasta, watermelon and grilled chicken many athletes meals specifically tailored to their training we took a look at what some have said about their strict diets. tom brady avoids white su gar, caffeine and dairy as well as drinks up to 300 ounces of water

each day tennis player serena williams said her fridge is really vegan and includes gatorade, vegetable and wheat grass. lebron james said he only ate meat, fish, veggies and fruit for 67 straight days doesn't look like there's any wheat grass in any of those pictures a lot of people say it's more like airplane meals. >> the interesting thing is that i guess judging by those pictures that we've seen on twitter is all the players are basically going to be given pretty much the same foods rather than differentiating. it could be an equalizer we saw in the premier league there was a little bit of leveling off that happened in equalization some people have done analysis of wothose who started very wel and faded and perhaps put it

down to they were fitter at the restart than other teams i wonder if these factors could have a bit of influence on the outcome. >> my initial take-away was it's just not enough food the average height of an nba player is 6'7" they're well over 200 pounds on average. those look like not a whole lot right there to fuel somebody's training. >> watermelon is not even really food. >> after they initial quarantine they do get to go to restaurants and have their own meals i think it becomes a lot freer in terms of what they can eat. this is the initial two-week period. let's move on. let's look at the market and what we're going to look for tomorrow pretty strong session. technology led the day you see banks and some of the consumer stocks, what are you watching >> we have initial jobless claims tomorrow that has been a focus of attention, continuing

claims all that stuff is going to fit into this ongoing reassessed story of exactly what the economy is telling us in terms of reopening i think the market action today while i wouldn't want to make too much of it because we did a round trip from yesterday afternoon. we kind of bumped up against this upper end of the trading range. it hasn't resolved anything but it's been tough for this market to generate downside momentum for a while now. i can guarantee you nothing in particular happened that made apple and microsoft both gain more than $30 billion in value today, but they both did. >> it's a sign of the times. also keep an eye on china. what a rally china has had both this week and this month as well they're up 8% this week, 14% so far in july, kind of extraordinary moves there. europe has been softer but unquestionably asia is leading the charge. >> for sure.

as much as people want to say it's kind of a manufactured rally, it still also could represent some kind of a signal for just global risk appetites and maybe even growth to follow. >> we are out of time here on "closing bell. thanks for watching. "fast money" is next "fast money" starts right now. i'm melissa adami, tim seymour, finerman why the bullion breakout is just getting started. plus, trouble in the charts. one top technician says beware of this sector later pack your bags, we are taking a road trip we'll tell you what is happening with shares of avis. twitter stocks surging today on a big rumor about the company's future