we're off the lows of the session stocks stocks under pressure as the supreme court delivers a huge set back for president trump and wall street starts to worry about what a biden win could mean for the markets coronavirus cases surging. hot spots to consider shutting

down again that reopening trade getting slammed. you can see that in the airlines there all taking a hit today later, check out this ride shares of avis budget, up 300% from the march lows. getting a boost in the red hot used car market. the ceo will join us power lunch starts right now thanks energy and financials are leading the declines today they are down way more than that stall worth technology sector. bob has more on this early morning reversal >> same story. teches still out performing energy, financial, other cyclicals. not a good start to earnings season big miss on earnings and very poor guidance. walgreens has not been a good stock. that's real problem. i think they may be basicing

market mentality banks same story huntington bank was $5 goes to 12 it's back to $8 again. it's an invertsed v. what's moving the market there's five things. is the reopening going well or not. let's call it bumpy. is stimulus coming maybe there's less good news on treatment advancing. that's good news elsewhere, valuation, lot of talks some of these stocks are over valued. some negatives here. the election, that's a wild card melissa mentioned this right around 10:00, when the announce m came the supreme court that the manhattan prosecutors could obtain president trump's fj records, not congress the market drifted lower right there at that time look at amazon

tech never goes down it goes down a bit and am zoazon bounces back look at caterpillar. vr the supreme court hands president trump a loss. >> reporter: sweeping ruling from the supreme court there were two baskets of subpoenas at issue one was a set of subpoenas from cy vance looking for president's financial records from his accounting firm and some banks the other basket was house democrats. committees on capitol hill looking for financial records from third party, not from trump

himself. supreme court saying that cy vance will get access to those financial documents because there is no presidential presumption he can't be invest gatsed during the course of his presidency the supreme court said not so fast that process can continue. not likely any documents will become public any time soon. if they are turned over, there's grand jury secrecy in that case and none of it would become public unless there's an indictment or some sort of criminal prosecution moving forward. that could be many months or years from now the house democrats, the supreme court not entirely buying their argument they needed to get access to this data saying that case needed to go back to the lower courts for reconsideration. sort of a punt there the president frustrated by all of this saying the courts in the past have given broad deference

but not me the president frustrated by the outcome here today where does that leave us heading into this life you see the biden bet over take the trump bet. you see now that trump bet is negative 9%. biden plus 7.1%. the big switch june 23rd happening right after that tulsa presidential rally that was so disappointing in terms of turn out and the number of reports about a surge in virus cases throughout the american south. back over to you uncertainty surrounding the november election becoming front of the mind.

great to have you with us. you heard the split decision but one set back for the president at least for now does that change, in your view, how you view what the potential outcome could be >> today's event doesn't change our view i can't make a comment on the political combo. what i can say is that we laid out four different scenarios that most probable scenarios for the election and policies that might come out of that the good news is that in none of the scenarios based on our analysis we're seeing a significant market impact that is as big as covid-19 has done that said, the elections have consequences and we'll see winners and losers within the equity sectors >> that's a low bar when you say

that >> can you lay those out and give us some possibilities if you have them? >> yes of course. i think the key distinction here is whether we're going to have a unified government whether wooelg have a divided government if we have a divided government i think the number of changes that might come is limited it's a lot harder the push forward any tax increases or the spending legislation if we do have a unified government, whether it's a blue wave or a red wave, we do believe that the outcome, the impact on the market is going to

be close to neutral or slightly positive you have shown that the probabilities toward a blue wave have risen significantly over the last month and from high net worth investors perspective, the conventional wisdom is that would be negative for the u.s. equity market and maybe other risk assets on a lesser extent our analysis shows that there are very good reasons to think that might not be the case this time around given where we are in the economy >> i'm glad you touched on that because one would think a red wave would be better for markets because of less regulation, maybe lower taxes and the inverse for the blue wave but you don't believe the policy conventions will hold true for the republican or democratic party this time around

a blue wave might bring negative impact from higher taxes our analysis shows it will be a need for several more rounds of fiscal stimulus in the biden administration as well we do believe that there's a very likely chance the biden administration will have to focus on prioritizing economic policies that do promote economic growth because when the new administration takes office regardless of which side, it will be the first quarter of 2021, the economy would still need quite a bit of health we think that unemployment would still be around 9% levels. it's still a risk. the key question is whether the fiscal spending stimulate growth enough and will it be enough to

compensate for the impact of the tax increases and the regulation i think there are good reasons to think that it is possible of course, with the red wave, you have the risk of the trade war escalating again in a bigger way. >> great to speak with you thank you. virus cases are surging across the u.s dr. anthony fauci is warning more shutdowns may be needed in the trend continues. let's get to meg with those details. >> more than 62,000 new cases were reported in the united states yesterday by states that is a new record concerningly hospitalizations nationally have also been rising now reaching a level we haven't seen since mid-may even more concerning than that, we are now seeing an up tick in the national number of new daily deaths reported in the united states you can see in the chart here from the covid tracking project. for states facing the most new

hospitalizations, you're looking at states like texas, nevada and georgia, which have seen more than 40% increases in the last week the dark yellow there are the states seeing the biggest increases. texas now more than 8300 people currently hospitalized also concerningly some states are seeing rising number of deaths following that hospitalization rate as well in texas, the 7-day average now up to 47 versus 2 is in mid-june to put that into context, new york at its peak was at 764. these are lower numbers but they are rising kelly, you mentioned dr. fauci making those comments on wall street journal podcast about shutdowns. he was asked about that at an event. he softened his comments >> rather than thinking of reverting back down to a

complete shutdown, we need to get the states pausing in their opening process. looking at what did not work well and try to mitigate that. yorng i don't think we need to go back to an extreme of shuttingdown. >> saying we don't need to go back to stay at home orders across the board >> i was thinking about the discussion we had with tilman this week. there's not a better standard for understanding when are we reopening. when might we close again. right now it feels like every local authority is coming up with its own plan or calling it

day by day >> i think that frustration you are out lining with a lack of clarity is something dr. fauci has been expressing his frustration with as well saying there are guidelines that have been laid out at the federal level. these are guidelines that states and localities can choose to follow he said just follow the guidelines don't say open or closed go about it in staged manner and that's why he's so frustrated because he thinks states didn't do that. >> it could bebetter communicated and maybe harmonized thank you. here is another shutdown leading the airlines as they n warn about layoffs we'll tell you what names are at most risk. the used car market is taking off. that's sending shares of avid budget soaring we'll talk to the ceo later this hour chorstig aad

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shares of the airlines are getting crushed today on reopening fears. this comes as united plans to layoff up to 36,000 employees. treasury secretary stephen mnuchin explaining how the federal government will help one of the hardest hit industries. >> there are certain requirements in the psp. there are different requirements in the loan agreements this was all negotiated with congress and again, we have seened loan agreements in many cases, i think many of

the airlines aren't going to use them and will finance them in the capital markets. we wanted to make sure the airlines had backstop so they had liquidity. that's something we have been focused on between the payroll support and the loans we have created a lot of stability for that industry >> for more on the airlines, let's bring in phil. the treasury secretary usage of the term backstop implies the loans will never will tapped >> they have until the end of september to tap this latest round of loans delta is one airline people are paying attention to. he says, we're not doing that great in terms of what we expected in july still down 30% in terms of flight schedule compared to last year delta says it's august and it's july schedule, it's being hurt by two things. one the spread of covid-19 in

the sun belt states. those are -- it's a double whammy that's hitting the airlines we hear from ed likely next week when the q2 results come out that's when we get an update in terms of where they are on liquidity. you have united. it announced it plans to cut up to 36,000 jobs some of that will be through furloughs. some of that will be through people taking early retirements. some people will take unpaid leaves of absence. we'll find that out over the next six weeks it's scheduled for august. they pulled it back further. it's now going to be down 65%. focus for the airlines is all about daily cash burn. they are bringing it down as quickly as possible. they are long ways from where they are in april. they are burning through a lot of cash every day. these are figures at the end of june united at 40%. southwest at 20 million. we'll get an update and see if

it's come down any further in july passenger levels, as you look at the airline index, still down 72 to 75% the numbers yesterday, down 75%. it's really started to plateau >> phil, stick around. let's diver a little deeper into the struggling airline industry. see if investors should expect more pain ahead on these beaten down stocks. hunter, is there any differenttiation do you think it's all going to rise and fall with covid >> thanks for having me. at this point there's so much money, liquidity available to these airlines the balance sheet stuff is taking a backseat to the other fundamentals there's so many stocks that have zero equity values as far as i can tell there's still four or five billion dollar market cap because the market is pricing in just unlimited access to cash. that's enabled by the fed. at this point, you should

probably expect them to rise and fall we like focus on costs out the most who can be the most nimble >> by getting costs out, we're talking about employees and roots, all of those things that are macro negative it can help them stay financially viable this is incredible to hear you say. there's zero equity value and only able to have a market cap of several billion dollars because they can access the market who are those airlines that can make right sizing moves? >> yeah, i mean the network airlines, delta, united and american have cut costs because they add the most. that's basically math in terms of how much cost they have added over the last few years. it's going to be about who has sort of the fortitude to go ahead and just do it who will have the best abilities to look forward and predict future business travels.

i think delta and unite stand out. at this point really nothing else >> furloughed 45% of their work force. you think there's any appetite for that to happen >> there's face level in terms of service is the government going to come in and say we need to add further support. i don't believer there's enough of an appetite in washington to come up with a second round of bail outs for the airline industry in terms of service, we're at that base level. they are adding back some servers now. you're not going to see a lot of service in the fall. fall is fra ditraditionally a wr time of year they're not going to add service beyond what we see in july and august >> if there's not an appetite

for more bail outs, what ability do these airlines have to further tap the capital markets? we had united say they are aiming to get cash burned down by the end of the third quarter to about 30 million per day. if they aren't able to do that or if for some reason they can't do that and got to raise more money, what else is there to collateralize in their portfolio? they've done everything. >> some have, some haven't they don't have much left. this industry, they keep taking money after money after money. they are never going to be able to restructure you look at what they did in '08 and '09. they didn't get a dime from the government they came out better than they were before. at some point this government stuff has to stop if they want any hope of being real

businesses out there >> when you say who knows what happens after november, meaning what >> i just mean policy. in terms of federal reserve policy the fed is being extremely liberal in terms of politically liberal but both regard to pumping money into the markets there's a lot of debt issuance >> thank you we appreciate it >> thank you still ahead, tech, the only sector in the green today. that's as the nasdaq hits another all time high. in the move in part due to semistocks holding up amid the sell off shares of nvidia hitting a record high. the traders will tell you which meth a sopg right after this when the world gets complicated,

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welcome back chip stocks, one of the few bright spots is this a sign of strength a positive for the broader market. what do you make of this recent price action and this broadening trade within technology? >> the push behind semis has more to do with broad trends that have been accelerated by covid. the trend towards remote working, the revamping of revisiting of business continuity plans the push towards 5g. all of that has played into the

hands of semistocks and that definite and the continued reliance on technology al helps. those trends aren't going to end. this is a broader trend that can last a long time >> you have been looking at the technicals is there a name that can out perform? >> the smh has done a very important move this past week. the semiconductor group has been a leader back in 2018 they gave us a nice warning system in advance of the late year sell off there led the group higher in the first two months of the rebound in march however, it kind of slowed down. it slowed down and was under performing this week hast made a higher high that's key the low it made in march was higher than the low it made in 2019

a higher low now breaking to a new higher high that's very, very bullish. as you mentioned at the beginning of the segment, this is kind of showing the tech rally is starting to broaden out a bit. maybe help the sense of piece start to play up with the nasdaq once again >> thank you for more trading nation, head to our website. back to you. ahead on power lunch, we'll continue to monitor these markets. the dow is down more than 500 points at the lows the nasdaq has clawed back to positive territory one bright spot is used cars the ceo of avis budget joins us to talk about why the stock is up more than 300% off its lows reopening roll backs slowing down the restaurant industry reopening the stocks most at risk, we'll dig into that when power lunch returns. i know that every single

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here is your cnbc news update the supreme court tossing congress fight to obtain president trump's tax return back to the lower courts house speaker nancy pelosi sees the decision as a positive step forward for democrats. >> so, here we are the supreme court including the president's appointees have declared he's not above the law. prooefeviously unheard audio recordings from interviews relating to death of breonna tailor are raising questions about the approach police took when the officer who led the raid was being questioned, the

investigator took a sympathetic approach suggesting the use of a battering ram was the most passive way in, end quote. south carolina becoming the second team to withdraw from major league's soccer tournament after nine players tested positive for covid-19 after arriving in orlando last week. that should be the national sc that's the news up date. kelly, back to you let's check on markets the dow is down 320 points off the lows of the session today. it did turn positive right now we're down 1.2%. the nasdaq continues to climb. it's up 44 points now. it's over 10,500 not a pretty picture for the energy sector. the oil market just closed up. let's go to eric at the cnbc commodity desk >> oil price is sinking. you can see this red behind me

wti even breaking below the $40 a barrel level ending a recent stretch of quiet sessions where wti and brent moved less than 1% a day in the past several sessions. rising coronavirus cases domestically and the potential impact on fuel demand have analysts expecting a further drop in prices even as opec continues cutting supply thank you. with more people driving to destinations during this pandemic, the used car market is red hot. rental cars are in high demand especially in metro areas like new york city. avis is one company ben fiefittg with shares up 300%. here is joe, the ceo and president of the avis budge group. great to have you with us.

>> thank you here reare today and demand is up what have you done as a company to right size your business to what the market is right now i know in the may investigation you indicated by june your police size will be about 20% smaller and you would be negotiating with airports when it comes to rent abatements. >> when i think about how we transitioned from january and february into this covid period, we had to make a lot of changes and we had to make a lot of changes quickly. second was to have enough liquidity to make it through we announced that.

people feel safe traveling or in this particular case, getting into a rental car. it's between our avis budget team and the team of medical experts. we partnered with rb, the makers of lysol we'll announce that tonight or tomorrow we have engaged the scientists of lysol on how to disinfect the vehicle. if you found a dirty car, few felt like it was dirty but now it could be a health hazard. we need experts to help us with protocols and products we found that with lysol. we have a five panel group of medical professionals led by

dr. williams who is the head of neurology over at columbia university in the city and along with his team have given us the protocols of how we deal with behavioral change for our employees. whether that be social distancing or proper personal equipment to keep them safe or hand watching or things of that nature we thought it was important to get the experts to tell us andpe hip hop public held. they are experts in taking training materials and making them fun which creates behavioral change. it's important to get people to learn and learn in an environment quickly especially during this period we're good at teaching people how to customer service and manage through the daily rigors

of the rental business and to fix car. when it comes the fighting disease, we need help. we sought the aid of these groups and we're pretty proud and very positive about how that will affect our business >> joe, i want to go to your financial performance though since we are seeing your stock we have seen your stock rise tremendously on the one hand maybe you benefit because hertz could be closing down locations on the other hand, you could be facing a stronger competitor after they emerge from bankruptcy because they are able toget tr debt. how do you view it >> we'all the competitors in our

sector are strong and terrific companies in their own right i like to center in hoon how we deal with the situation. i think in the month of february, at least in the americas right siezing our business and getting ready for uncertainty that happened in early april and may. we do keep track of our internal metrics and the opportunities that are existing out there and we aren't taking advantage of those. we will continue to do so over this next couple of months and the year >> all right we'll lever it there thanks appreciate it. >> thank you

to the bond market now some big headlines on the ten year this afternoon. rick tracking all the action for us rick >> the tens, yes, indeed wp we traded under 60 basis points you won't see a lower yield. the reason i say it isn't only about tens today it's for the following on deck means guns hot we're about ready to make new all time low yields closes 14 basis points from the 29th and two year three year, right up under 17 basis points that's where it is now 5s and 7s, meaning their current yield is will be a new low close. should they close there. that's 45s for 7 what we really want to pay attention to on the 30s is which side 60 basis closes on. it was 54 basis points on the

nineth of march. here we hover a bit aways from it they had a great auction but still 31 basis points away back to you. fears the economy will take longer than expected to get back to normal. we'll explore the impact that could have on working mothers. stay with us after my dvt blood clot... i wondered.. could another come around the corner? or could it play out differently? i wanted to help protect myself. my doctor recommended eliquis.

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one of the biggest issues hanging over the whole economy

is whether schools will reopen in fall. if not, many parents may have to choose between their jobs and their families that could have a big impact on women. julia is following the story >> women have already been hit harder by the crisis 11.2% of woman over age 20 are unemployed that's a full percentage point higher than men. that's in part because women hold jobs in the sectors that have been hit especially hard by covid. now throughout the pandemic, women have said theyare more likely than men to be concerned about running out of money within three months. whether their employed or not. this is according to a study from usc now working mothers are bearing the brunts of child care as well during the stay at home orders they are spending 15 more hours a week on domestic labor than men. women are twice as likely as men to be responsible for home

schooling. harvard economist tells us there could be real long term damage to women's careers if offices open brefore child care and schools start fp men could be more likely to return to work. that could lead to growing pay and promotion gaps not just now but for years to come catalyst, a firm that advises companies on how to best work with women it says now is the time for companies to make major changes in the workplace to help level the play r fieing field. >> what kind of changes are they talking about? >> i think there's a number of things you have people working at home and there's a lot of concerns about how women could be dealing with so much more of the work at home with their children but at the same time, if you make flexible work possible for every one, the ability to work on your own schedule i'm hearing a lot from companies about the importance of really judging employees and measuring whether or not they are ready for promotion on mump more

standardized scales and trying to make sure you take bias, sort of all different kinds of bias both implicit outside of that proses cess >> thank you we appreciate it stocks selling off today for a number of reasons. not the least of which is the latest threat for the roping of the economy. you can see that and the shares of the sit down restaurant chains the companies behind olive garden, chili's and out back all down much more on the restaurant msg opor nckoinupn weluh. experience the joy of a bigger world 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.

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit with coronavirus cases rising, another shutdown in hot

spot states could be possible. that could prevent another roadblock on the road to recovery for the economy kate rogers is looking at how the restaurants are fairing. >> restaurant transaction data had been improving but over the past two weeks we have seen that reverse course new data from the npd group shows that overall transactions at major restaurant chains declined by 14% for the weekendsed june 28th compared to a year ago nationwide full service restaurants transactions fell by 25% and quick service transactions beclined by 13% full service is most aligned with sitting down and eating in dining rooms we'll seeing states pause reopening or ral baoll back plad restaurants like mcdonald's hitting pause on reopening plans for several weeks. papa johns, dominos, chipotle and wing stop thanks to their carry out. back to you. >> stick around. we'll talk about which restaurant stocks are most at

risk during the pandemic bob, we learned a lot in this first part of this downturn about who is most at risk. could the next phase be different unless we start to see widespread shutdowns again >> there's that risk the full service restaurant chains are trying to do everyth it safe for their customers. i think all the major chains are really putting safety protocols in place but i think ultimately the consumer is the one making the decision are they comfortable leaving the house and actually going and sitting in a restaurant? or should they go to curb side or just stay at home and have dinner, you know, coming out of the oven >> right and you know, it's a difficult calculation for a lot of people to make. we saw, for example, that the drive through oriented fast food chains did very well during this period of time would you continue to expect them to outperform >> i absolutely would. you know, consumers have a greater degree of confidence and going through a drive through and keeping themselves safe as

opposed to sitting dmoun a restaurant, i think curb side to go for the full service chains is important but not as nearly as important as being able to go inside and safely eat within the restaurants. i think consumers ultimately want to do that. but i think these recent hot spots that we've seen really develop i think it really, you know, given pause to a lot of consumers reconsidering, you know, where are they going to get the next meal. >> is there anyone, bob, in the it isdown space, i know you said your cautious on cheesecake, crack barrel and chuy's. what are these places supposed to do at this point? do they have options over the next 6 to 12 months to make our dining more attractive for these consumers? >> you know, it's interesting you ask that question. one company especially brinker international, they operate the chili's brand, magiano's, they

outperformed most of the peers they recently developed this ghost kitchen concept called it's just wings. it operates within the chili's restaurants t completely separate you know, from the chili's operations and it's a pure delivery brand so that certainly adds an interesting element of potential upside we see to sales for that brand over the next 12 months. >> are there certain restaurant chains that are more exposed to the areas that are facing closings, reclosings or flare-ups in covid-19 cases, sunbelt states, arizona, et cetera >> yeah. you know, i think, you know, certainly the southeast has been really hard hit with a lot of flare-ups. cracker barrel, they do a terrific job keeping customers comfortable and safe within the restaurants. however, they operate a lot of restaurants within those areas where we've really seen a lot of hot spots. that's one brand, especially because they skew to an older consumer who is a little bit

more thoughtful about using the masks. i think they may be -- they may have headwinds ahead the big publicly traded restaurants are back to being back to year ago levels than mom and pop restaurants that don't have the financial resources we talk about the publicly traded names because they're tradable but are all of the names winning share at the dispense of the much smaller players, do you think? >> i wouldn't say they're all -- >> you have to imagine -- >> gakate, go ahead >> i wouldn't say they're taking all of the share they definitely have more exposure and can afford to team up with these delivery aggregators and work with all of them it's more expensive to work with grub hub and door dash they have taken that on themselves to avoid paying for the fees you know, the two different types of restaurants and the

consumer that they're serving, you know, tend to be different it's about who can afford it really i think that's what we're going to see moving forward is the ones that can afford it will stay afloat. >> bob, i think you're on to something. maybe you can come up with a concept like that. >> it wouldn't surprise if he many we see others do. that it's a very creative way to get additional leverage on your business i think brinker, you know, has really surprised us with this and potentially it could add a lot more to top and bottom line for the company and potentially for other companies as well. >> all right thank you both bob darington and kate rogers talking through the restaurants this morning the losses on the dow seem big. we're down 300 points. the nasdaq is positive for much of the afternoon if the composite can stay green, this will be the seventh up day in eight sessions. remember, you can always watch or listen to us live on

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welcome back let's get the technical take katie, great to have you with us we really paired our losses on the s&p 500 and in particular in what we've seen today is a continuation of what we've seen before and that is strength in technology how strong does technology look since it does look like the markets are dependent on tech to keep the rally going >> well, large cap technology and specifically the faang stocks have been the consistent long term and short term source of upside leadership the momentum is still behind them and the relative strength is still behind them. and that can certainly help the major indices forge higher irrespective of whether or not

they have strong breadth or participation behind them. >> do you see significant gains in the s&p 500 from now to year end? >> you know, i see in the near term significant gains in store for the s&p 500 based on the facts that it's managed to break out from the consolidation phase from june which was in the shape of a little triangle those triangles tend to be pretty high probability setups where they see immediate upside follow-through we got ideas of that recently and then short term momentum turned positive. the so those are bullish take aways. they're near term in the applications the next major resistance is also final resistance for the s&p 500 is that february high. and there is still a good deal of upside to that level. but that is where i think we might see sent catch up with the market in a negative way what we're seeing here recently is really a skiddishness or what i consider to be a healthy level of skepticism. but i have a feeling if we get

closer to those highs, sentiment is at risk of becoming too bullish. and that tends to be contrarian negative take away from a technical perspective. >> okay. so just the bottom line that could go up to february highs or close to them but at that point sentiment can change and we could see a pullback in the markets? >> that's right. so i'm not looking for significant pullback between here and there but i also wouldn't say that new high is seeing a guarantee even with that leadership in the large cap technology stocks. >> okay. and quickly, katie, we enter a big week for bank earnings next week, banks look broken. you know, if you just look at their stocks >> yeah. you know, the featured bank stocks in our research this morning and they've certainly pulled back in absolute and relative terms in my work, they're at a proving ground they're testing support levels for some it means the 50-day moving averages and for others, it means previous lows but as long as they get a bounce here in the near term and oversold bounce and absolute in

relative terms, that will preserve that support which is so important however, if they don't get going in the next week or two, then i think the bank stocks have a real problem for the momentum perspective. >> katie, thank you. >> of course >> melissa, i was going to ask how you feel about chicken wings but we're out of time. >> i say yeah. i'm in want to split an order >> we'll havethem tomorrow i'll see you then. thanks for watching "power lunch. "closing bell" starts now. >> welcome to "closing bell. i'm wilfred frost along with sasa sara eisen we're well off the lows as you can see. let's have a look at what is driving the action the nasdaq leading once again. the only major index in the green today. up 17% year to date. tech continues to carry the market intraday turn around for the tech index as well florida reported a record number of coronavirus related hospitalizations cyclical s