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 stocks like travel, energy, banks are under pressure

because of it. and the retail divide continues. walgreens and bed bath & beyond getting crushed today following weak sales updates and the staples names like walmart and costco are higher. the s&p 500, we're 59 minutes left of trade. it's not there the nasdaq is up 0.6%. the s&p 500 is a little bit lower. >> just a few moments, we'll speak with alpha one capital dan niles about the market selloff why tech in particular has been outperforming and what to do now. plus, former treasury secretary jack lew will be with us to weigh in on joe biden's economic plan and work from home winner service now, it is up 50% on the year just announced a new partnership with zoom. bill mcdermott will be live to discuss. another very strong day for the cloud names. let's get straight toour big story of the day the market selloff mike santoli is tracking the action all day long which does appear a bit better in terms of the losses, mike >> yeah. this was a day when we sold the

rip in the morning and then bought the dip in the afternoon. so this idea of a range bound trade is sort of solidified right now. some resilience under the surface. this is a year to date of the s&p 500. so remember, this is june 8th high, 3232 for few days right now we kind of have been riding up on these lefrlz of 3170, 3180 not really breaking down but also has not kind of mustered up the energy to get through. also still an uneven market. the equally weighted s&p 500 still down more than 1%. you do still have mega cap growth carrying things for now it's been working. hard to say exactly what is going to make it stop working. take a look at this breakdown if we want to isolate the influence of large cap technology on this market so we do have the tech sector spider up 18% this year. that is in orange right there. then the equal weighted s&p 500, down 13% median stock down 12% or 13% there is an etf for the s&p 500.

everything except for the technology sector. so approximately the 70% of the index. it is not cat goegorized aztec that looks like the average stock out there. this would look much worse if you took out amazon, facebook, alphabet which are not categorized aztec. so here's what you see this big and widening gap. now there are other growth stocks working besides tech. it really has been mostly the apples, microsofts that have been carrying things for a while now, sarah >> every single day. and analysts just keep upgrading the stocks mike, stay with us let's dive deeper into the tech rally. nasdaq is up 18% so far this year faang stocks and microsoft among the names in the index higher for the year for more on what to do now and what opportunities he's finding in the recent tech rally, let's bring in dan niles, founding partner. welcome back to the show i believe you were positioned

for a recovery in stocks which we have seen and concentrated in technology give us a sense of which names have worked for you and what you're doing with them now that we've seen such a strong runup >> i think going into the first quarter, we were positive on trends like e-commerce and gaming, et cetera. and during the pandemic, those trends just got stronger you accelerated two years worth of growth into two months essentially for a lot of the companies. and honestly, looking forward, we're sticking with the same trends where we're make changes is the way we're sizing them. so, you know sh we put out a tweet on june 29th how we were making facebook hitter when it got hit off the advertising worries. some other stockswe made smaller as they run up more. and then we look at more recovery plays but i think from here to the end of the year, the gaming companies activision, those are

the first con soles coming out in seven years that is going to drive us through the holiday quarter. that's how we're positioned in the shorts in the mock four. we've ramped those up after not being short any of them a few weeks ago. >> all those gaming stocks are higher you didn't list apple in the short position it's been a juggernaut it goes up every day amazon up is 3%. how do you think about the valuations for some of the companies and whether they deserve this rerating that they're getting? >> yeah. i think our last position, we were long it and we got rid of it the valuation, sara, you bring up a really important point. valuation to me is a measure of risk so if you look at march of '09, last time things looked this dire, market cap to gdp was up

six times. now it's 1.6 times that's an all time record high the average over 50 years is 0.8. so the valuations have gone up a lot. and so that's why we're sort of scaling back a little bit in terms of the weightings in a lot of the big tech stocks we own amazon but not as much as we did earlier we used to own zoom. we're out of that one. but we're buying cheaper names we go, well, we think automotive is recovering. so we're looking at the semiconductor names that are heavily levered towards automotive and industrial which are trading much better in the sense that are a lot cheaper they're not up for the year. and so that's how we're trying to reposition the portfolio to manage on days like today. i mean we're making none day which is great because, as you said, said the video game stocks are up it is helping against the long

wez have which are do you remember so i think balance and resizing your positions daily is critical in times like this valuations are pretty high >> those shorts that you mentioned typically, the kind of cyclical stocks, why did you up the shorts on them a couple weeks ago? clearly valuation was already low relative to the markets. the so why did you up the level of shorts you had in them? >> yeah. of that's a great question i mean, this is the wait you need to think about it how do you view malls, airlines, cruise lines and hotels? i think once the economy recovers and we get a vaccine, et cetera, if you talk a lot of ceos, people are not going to be traveling as much. you know, zoom, we're doing this call over zoom, for example. you're going to be using remote learning, remote working my kids are not going back to college come september quarter they'll be doing that online and so a lot of the trends are going to continue.

and so the mock four names, malls, airlines, cruise lines, hotels, they have issues beyond this like malls, they were having troubles before this and so that's a way to kind of balance out long that's you v we have the shorts on three or four weeks ago because they doubled from the bottom which made sense. the fed took away bankruptcy risk now that a lot of them doubled from the bottom are up 50%, the airlines still have issues so it's a timing thing you have to be very aggressive with trading the names to avoid getting buried on a short rally but then putting them back on to hedge the rest of the longs when you think they run up a lot. >> just to be clear, dan when you say malls, are you talking about commercial real estate companies or retailers? >> it's -- so -- without giving you names, but it's companies that own malls that have retailers in them. and so it's a way to kind of get

exposure but sort of being short the mall reads, that sort of covers it. a lot of them are down mid to high single digits today we think there is some bankruptcy risk in some of the different sectors like malls we're seeing dividends getting cut. airlines, you know, we believe that one of them there is a decent shot one of them goes under before this is all over. boeing's ceo actually talked about that that's how you use it to manage on a day like today. hopefully that works >> well, every day brings a new retail bankruptcy these days mike, just what we're talking about here is the valuation difference in the stay at home stocks and the technology stocks which seem to go up every single day. and then some of the reopening stocks which are more volatile which dan doesn't like like the airlines and cruises and malls where is the valuation gap here?

what does it look like now that we've seen this trade stretch so far recently >> the valuation gap is probably not as significant as you think. mostly because what the market is doing is paying a premium for greater certainty of earnings as opposed to taking a chance that earnings come back which look like they're depressed right now for nontech and nongrowth companies. i think the main risk perhaps is eventually in overpaying for that certainty and there's crowding risk in large cap tech no doubt about it the nasdaq itself looks stretched technically against the rest of the market and against the history. that's happened a couple of times. it's been maybe the occasion for a pullback i do think the very largest, you know, faang type names, you could have made the case that apple was inexpensive. microsoft was reasonable they did have more or less modest premiums to the overall

market now the premiums have blown out a little bit more. i think they're valued essentially on a free cash flow and there is a scarcity of very reliable free cash flow out there. so if they have 30 times more free cash flow as a 3%, all of a sudden in a world where corporate debt is at 2% yield, that makes some kind of sense on paper. to me, that's the quation. the market seems to be applying here and again, crowding and technically overextension of those stocks as s. what i think is your hazard at the moment >> dan, quick final question given your comments about the retailers and hotel stocks, why aren't you shorting the banks as well >> we are. so you made that obvious connection a lot of the banks are exposed to those sectors the fed is really putting financial restrictions, keeping the ten year as low as it is, it makes it impossible for the

banks to make money. you see that with mitsubishi and japan or credit suisse or deutsche bank where those stocks are actually lower than where they were when lehman brothers failed the banks are another area where we weren't short we put them back on after they sort of bounced a lot. i think the reaction to earnings next week when the banks stoort report and also net flicks, i mean, everybody knows they have to beat the numbers and numbers are going to go up how they react to earnings i think will be interesting because as you saw after the fed stress test, they got hit for 3.4% on june 26th. you know, the s&p 500 was down 5.9% on june 11th. so reaction to earnings is something i'm watching very closely as well. >> netflix, short or long? >> no. we're not involved in netflix. it doesn't generate positive cash flow and as mike santoli broup brought up, we should be looking at that as another measure of risk where a lot of the other faang-related names this he have great cash flow. netflix isn't one of them.

you know, that's our guilty pleasure i like watching netflix. it's hard for me with my style to be long >> dan niles thanks for joining us >> good to see you >> 47 minutes left of trade tesla is up 50% in the past month. we'll talk to dean of valuations about whether he thinks the stock makes sense at these levels you're watching "closing bell" here on cnbc ♪ ♪

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>> dow down 271. well off session lows with 43 minutes left of trading. tesla are outperforming yet again today. the enthusiasm over electric vehicles is spilling over into other names as well. phil lebeau is tracking the move for us phil >> sara, the pure electric vehicle play is the hot one for investors. can you make an argument about whether or not this is people just getting in on the euphoria over the possibility of electric vehicles taking off or whether or not these are smart early bets but when you take a look at the

stocks, nikola and neo out of china and work house which makes electric delivery vans how good has this run been relative will the big three automakers no comparison at all the stocks up anywhere between 400 and 700% over the last three months the big three, down 19 to 35% n terms of tesla, they report earnings on july 22nd. if there is a profit, that will be the last hurdle that it needs, four consecutive quarters of turning a profit to get inclusion or likely inclusion into the s&p 500 in terms of gm and ford, yeah, they're making electric vehicles and they're coming and there's a lot of fanfare with those

vehicles they're making big pushes into electric vehicles, guys. but so far, investors are saying give us the peer ev play right now. >> extraordinary performance differential thank you for that for more on tesla and the wild run, let's bring in professor of nyu stern school of business also as the dean of valuation. very good to see you let's talk about how this run on tesla. you have been a holder of it in the past >> with tesla, it's always the story that drives the price, not the news, not the fundamentals which us from straits a lot of people one views tesla as nothing they think this is a gigantic scam the other thinks tesla is the greatest company on the face of the earth. you see the movement between the two extremes and different times

in the stock i mean, with tesla, this too shall pass there will be moments when the other side starts to win but the wild swings are part of tesla's history. >> what do you think is driving the price though at the moment and is there a risk that actually 12 months of trailing positive earnings even a couple years of that start to put pressure on the stock price of it if it then becomes valued in a more normal way. tesla is benefiting from the fact that this virus has had disproportionately negative effect on older companies, capital intensive companies. in a sense, the virus is handicapp handicapped tesla's competition. that explains why all the young electric car companies are doing better than the established automobile companies lots of debt, huge capital

intensity and this virus is not kind to those companies. >> how do you think about the environment right now that we're in and the focus or maybe lack of focus on valuations with stocks like tesla? >> i think it's subsets. you can see this with zoom as well people are focusing on winners they want to make a lot of money quickly. the winners are benefiting from that search. let's find the stock that is going to double or triple. the danger with that is you take a stock like zoom, i think it's been pushed up way too much. notwithstanding the fact that it, too, shall benefit from the crisis i think what investors are doing is i think they're highlighting the right companies that they're going to benefit from the crisis but they're overbuying the stocks pushing the price up too much. >> what about the underperformers whether that's the banks, hotels, energy companies, airlines, et cetera is it also impossible to value them at the moment because dwoent real we don't know what it is going to be the next year or two? >> to value them, you have to make a bet on the macro factors,

the economy coming back. it's almost impossible to make a bet on the airlines or on any of the down ready toen stocks without making a bet about the economy. let's face it, on that front, we keep seesawing between feeling incredibly optimistic one week to incredibly pessimistic. unless you have really strong viewsen opt economic turn around, i would not jump into those stocks much p too -- much too fast i think there is too much risk >> i don't know if the dean of valuation is allowed to call bubbles. but do you see any with the frothy behavior we're seeing in certain stocks it sounds like you don't agree with tesla's valuation at all. >> i would not buy tesla at $1400. it's like a moving target. i would not call somebody that buys tesla crazy the minute you use bubble, people say are crazy i don't think they're crazy. they're rational in their own way. it's not a rationality i buy

into i describe it as ab implausible story but not an impossible story. there is a plausible story you can tell >> great to see you. thank you for joining us >> thank you for having me >> after the break, more wall street firms are weighing in on what a joe biden victory could mean for your money. we'll get the word on the street on the iacmpt on tech and media coming up next experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer.

welcome back to "closing bell." time now to get word on the street two bullish notes on microsoft raising the price target to a street high, $230 a share. morgue an stanley calling microsoft the top pick citing strong trends and believe the zero platform in the cloud is the key winner of the work from home strategy they have them at 37 1/2 times pe this year they make water pumps and

filtration systems for residential, commercial and agricultural use getting an upgrade to buy they have driven up demand for outdoor swimming pools the most profitable product groups it's up 5.5% today >> and cowan out with a note of an impact of a biden win on tech and media stocks the firm anticipated stronger antitrust and data regulation efforts targeting google, facebook, apple, and amazon. he does not expect broadband price regulation but does see stronger headwinds ahead for telecom and mna. still ahead, by the way, the vice president is laying out his economic vision as we speak in pennsylvania right now just outside of scranton we're going to talk to one of the surrogates, the former treasury secretary jack lew later on in the show about that. still ahead, work from home winner, big time shares of software company service now, up 50% on the year. the firm just inked a partnership with zoom video and

the ceo bill mcdermott will join us next to discuss as we head to break, check out the bond trade today a little softness, buying of bonds. a lot of focus right now on the five year note yield which might just close at a record low trading right around there ten year yield also falling down .61%. so soft across the board along with stocks. we'll be right back on "closing bell." when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. andsnhu let's you transferns. 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.

31 minutes left to go.

tech and nasdaq is leading the way once again florida reported a record number of coronavirus related hospitalizations travel stocks are under pressure today. divergence in retail walgreens getting crushed. bed bath & beyond is sinking walmart and costco are moving higher time for a news update sue herrera has it for us. >> hello, everyone here's what's happening at this hour michael cohen is back in federal custody today. the bureau of prisons says president trump's former lawyer and fixer refused to accept conditions on his home confinement. but cohen's lawyer says he just wanted to negotiate a provision prohibiting cohen from speaking publicly cohen was furloughed in may to help slow the spread of covid-19 in prisons coronavirus can become air

boo born indoors they urged the agency to update the description on how the high us have is spread. the associated press reporting federal officials were afraid ghislaine maxwell might commit suicide after being arrested the she is not allowed to have cloth bed sheets and she has to wear paper clothing in custody and los angeles police say they arrested five people in connection with the february killing of aboutbashard jackson. you're up to date. that is the news update this hour back to you. all right. sue, thank you one sector surging during this pandemic, the cloud people shifted to working remotely, zoom and service now have been on a terror. they're also up today as well. those two companies recently announcing a partnership to help the work from anywhere experience but will the surge continue if and when people return to the office joining us is service now ceo

bill mcdermott great to see you good to have you here. qu what are you sneeg. >> they keep getting stronger as i said in the past, digital transformation is the opportunity of this generation if you look at the zoom partnership as one example, all companies want easy, seamless experiences for people and customers. this is how you transform companies. this is how you grow this is how you navigate a digital experience to win. we're super excited. >> so zoom has been, as you know, the poster child from -- for the work from home beneficiaries. what is this collaboration about?

what does it allow the customers, the big companies to do >> if you look at zoom, they have 300 million users utilizing their system in the heart of this covid-19 crisis xpikt that to continue to grow the question was, how do you handle 300, 400 million users, most of them concurrently on a global scale they turn to service now for that problem so we cannot only use self-help tools for customers, we can also use virtual agents and best of all, most of the service that will be required when zoom does have to remediate an issue is done predictively on the now

platform they also want to have a hardware as a business service model. the idea there is simple touch it once, instant collaboration. instant linkage to the service now work flow and then the users get a great experience so service now is in the epicenter of helping zoom, utilizing our great innovation and ult ma thely taking both of these solutions to market to help many, many customers around the world. >> clearly bill, its a huge opportunity for all sorts of companies to digitalize and take -- make the most of the current themes across the marketplace. that said, have you seen tech spend vary a lot based on what sector your clients are in

are some suffering much more than others? >> for sure. so if you look at the tech sector as sarah said for cloud, companies that are at the forefront. >> now i suspect, i hope ten out of ten would have a digital first strategy it's the only way to navigate these choppy waters. the companies that do less well are the ones with heavy time consuming, elongated project cycles or potentially commodity hardware where customers are just not going to invest in that because whatever they invest in in they want to return

they want that to come quickly in the case of service now, we show five, six, seven x return and we get things done in days and weeks not years. and i think that's what makes the big difference speed, value creation, and truly illuminating great employee and customer experiences is what this market is all about >> what about the exposure to hospitality and retail two sectors that are especially hard hit and companies in retrenchment mode. how much is that a risk for your business and what you are seeing from that sector >> it's a absolutely perfect question, sara one of the things that we covered in our last earnings call is that 20% of our business is in one way, shape, or form tied to industries that would be highly impacted by covid-19.

and what you're seeing is when you have a platform company that truly can innovate, make work better for people, take costs out, improve business productivity, that's the late place even challenged industries are going to cut it's paying off even in the most challenging industries like the airlines, like hospitality, like retail >> bill mcdermott, thank you so much for joining us. >> thank you for having me. >> 24 minutes left of the session. here's where we stand. we just slipped a little bit in the last 20 minutes or so down 1.7% 440 points on the dow. s&p 500 is close to 1% so we're sliding towards the session lows once again. still ahead, joe biden unveiling details about the economic plan

for the country. we'll speak with the treasury secretary and biden supporter jack lew about that plan and his take on the government's handling of the pandemic first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance.

20 minutes left of trade we have taken a turn south here. the dow is down 411 points down more than 500 at the lows things were recovering in the final hour joe biden, the former vice president is laying out his economic agenda in pennsylvania just outside scranton where he is from. saying some market unfriendly

commentary they're talking about higher corporate tax rates. his plan to push corporate tax rates up to 28%. maybe the market not liking, wilfred, those points. a little populous message coming from biden we're going to talk about it with former treasury secretary jack lew, biden economic surrogate later in the next hour. >> we look forward to that for sure we have 20 minutes left of this hour that means 20 minutes left in the trading day. we're sliding a little bit joining us now for our last chance trade, stephanie link good afternoon what is the last chance trade today? >> hi. it's pay chex. their a outsourcing company. they're in the eye of the storm because of covid-19 and the high unemployment levels. april volumes were down double digits that tells you how bad it was in terms of showing on the reefrns conference call, they said they're starting to

see a stabilization in retention rates. they reit vated guidance which is around these days they also said that by their fiscal fourth quarter, they expect to get back to normal levels a company that has a strong reoccur margin and restructuring. there is a balance sheet with 3.4% dividend yield. they only have 10% of the sell side on the recovery side. >> stephanie link, stay with us. this is the last break we're going to take before we go into the close. up next, one chip stock is on a hot streak and a brutal day for a pair of retailers. those stories and a lot more including this move lower for stocks do 418 when we go inside "the market zone" next you say that customers make their own rules.

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cnbc markets commentator here to break down these crucial moments of the trading day along with hightower trader stephanie link. the nasdaq once again outperforming the other indices. on track for a record close. did notch a intraday high after the open but we are falling a bit into the close. the part of the story presumptive democratic nominee joe biden laying into wall street just a few moments ago saying the ending the era of shareholder capitalism is overdue and talking about president trump's focus on stocks take a listen here >> throughout this crisis, donald trump has been almost singularly focused on the stock market, the dow, nasdaq. not you, not your families if i'm fortunate enough to be elected president, i'll be laser focused on working families. the middle class families i came from here in scranton, not the

wealthy investor class they don't need me >> we'll talk more about it with jack lew next hour maybe not helping sentiment. hard to know what to make of -- it's campaign season, right? there is a lot of bluster and populous talk. hard to extrapolate into actual policies i know you were watching other factors that could be behind the market plunge. >> i don't doubt there is sensitivity to headlines like that especially if it's moving in the direction of perhaps, you know, being effective as a campaign message i also think this is a very uneven kind of spotty take we talk about how narrow it's been there were headlines flying around in the last half hour or so about apple, some comments out of i think -- saying sales in china weren't so good i cite it because the stock went down $3 in a blink that was enough to take some of

the juice out of the nasdaq and bring the s&p 500, you know, down a little bit from where it was in mid afternoon high. it is a choppy backdrop right now. it's not surprising you just see these kind of waves of selling following headlines because it is a range trade it is relatively narrowly focused. the bond market is not really giving you a lot of sanction for a bull move right here and so it just means a little lippy. >> you worry about the election? which sectors do you think might suffer if vice president biden were to come through and win based on the comments that we heard just now >> it's sort of interesting you ask that question. i think we've talked about this -- there's a battle going on in the macro. the strong economic data and we got good data today. claims down another 14 done secondtive weeks mortgage apps are up the bad thing is higher viruses. that might dampen the recovery we talked about. that recently, we actually no

you started to hear just election outcomes, uncertainty, that sort of thing we're getting closer to the date, right? and so i do think this is campaign season. so we have to see how it plays out. i'll tell you this, though, our favorite sector, the financials, will get hit pretty hard i think on higher regulation but, look, you add it up today it had a defensive feel. we're up 40% from the lows it's okay. we're going to be choppy until we get earnings. i don't think the number on earnings is really that important. it's the tone from the managements. do they have any clarity at all? are they seeing any improvement? what are he they budgeting are they going to continue to cut costs? if they do continue to cut costs, last year's operating leverage could be powerful if you get a recovery and if you get better demand. >> i think stephanie, as you know all too well, rising chances for president biden -- vice president biden and democrats is already taken a bit of an effect on banks.

as have a lot of other factors coming up to earnings next week. let's move on to retail stocks falling today to the biggest decline. walgreens plunging after reporting a miss on quarterly estimates. they said it was hurt as fewer customers came in to fill prescriptions and they spent more on staffs to clean stores bed bath & beyond plans to close 200 stores sales fell 50% during the pandemic the new ceo joined cnbc earlier today to discuss the move. >> in terms of the 200 stores, we're taking a very comprehensive look at our return on these stores. and where we've seen true overlap in terms of demographics and shopping areas and we see the need to rationalize that play, we haven't done anything major before we're taking one strong movement

towards this >> you like the direction of the respective moves i would imagine. >> yeah, there are win aernz lose winners and losers in retail walgreens seeing a lot in terms of competition not enough digital and bed bath & beyond, really, the stock is down 90% from the 2014 highs that is crazy. that's because they didn't invest costco, you know it, i love the company. i own it it is a core holding i mean the numbers were off the charts the they even had traffic was for the first time positive since march. nobody seeing that kind of stuff rishgts? it trades up 38 times forward. i'm not a buyer of costco. i'm a holder of costco >> i like cramer's take on this one. it's because they're mandating masks and people feel safer

which they've been vigilant about at costco. but it's not obvious, mike, you know, which winners and losers there will be in retail right now. costco and walmart and target are all doing well but you would think that walgreens and even bed bath & beyond would be place that's consumers would go even if the stores were not fully open at least online to buy kitchen utensils or just basics, shampoos, the more time we spend at home, both of those places sell those kind of essential items. people are not just shopping when they go to get prescriptions if they're getting it by, you know, by mail or delivery so bed bath & beyond is well acknowledged as too many stores, too much square footage, really ineffective in terms of margins for thatreason

>> bed bath & beyond down 24% today. nvidia in the selloff again today. josh lipton with the details josh >> so sarah, investors keep piling into nvidia the this year that stock has already soared more than 70% and remember that is coming off a blockbuster run in 2019. it soared 80%. i checked in with tech analyst and he says nvidia is benefiting here from two big broad trends one, the chips are used in data center investors are betting as more people work, learn, and play at home, that can result in greater demand for the cloud services that rely on its technology.

two, the chips are used to improve video game performance in pcs and note books. that's a big deal. more people are now looking for in home entertainment due to the pandemic nvidia actually surpassed intel in market cap. patrick morehead says down the count intel out. he says intel has certainly bounced back plenty of times throughout the long history. guys, back to you. >> hot stock josh, thank you very much. stephanie, i know you're bullish. as a bull, you have to be relieved to see the action in semis lately they're cyclical, as you know. they're sending strong signals in terms of the share price about where we are in the economy. what do you make of the action >> well, i mean, nvidia is a special situation story. they do have the exposure to data center and gaming and ai. those are the three hottest trends out this right now. and by the way, on data center, they have a deal they're going to get strong fwher data center and gain more

share in data center that is powerful this stock is up the last eight days straight, up 14%. the stock is up 7% so the expectation -- by the way, up 69% on the year. it trades at 50 times earnings so while they're in the great trends, a lot of good news is priced in. i own it i don't sleep well with it at all. but sometimes just want to stay with where the trend is. i find better value in a broadcom or something like a lamb research in terms of where i would buy in the semispace >> yep >> generally, there is a bit of a breakout >> i was just going to say, the end markets are growing. and people want secular growth right now. that's clear that's why growth is winning there is no doubt about that but there is not necessarily a lot of value in this space

and so you can look at other parts of semiconductors that have like auto or industrial exposure and those areas are interesting. they're very, very cheap so that's why i say you want to pick your spots in terms of where you're buying, but you want to still own some of the secular growth as well the bank is preparing to cut thousands of jobs beginning later this year. this comes as cnbc.com reports that wells fargo is raising the bar for more customers to refinance the mortgages. they have to bring $1 billion many balances up from $250,000 if they want to refinance a mortgage that exceeds limits set by the federal housing agency. the entire banking sector is under pressure in 2020, wells is one of the worst performers down about 55% near to date compared to the kbw banks they're down 40% year today. of course, outperformers as well

at morgue more bega at morgue an stanley just another highlight of the factors that has hurt wells throughout the years if you're a big bank and struggling at the moment, the one positive could be that you could grow and take market share off the smaller banks. wells fargo not able to do that with this asset cap. stephanie, i guess it's hard to expect the sector to rally over the next week at least until we've got through earnings season >> yeah, not only what they're going to report but the reserves they're going to take. we saw that last quarter they took big numbers but maybe not big enough so we'll see what they have to say. these stocks are cheap they underperformed the market by 3300 basis points year to date the valuations are there if you're looking for value it's just what is the earnings power? what is the normalized earnings. i own wells. i still like it. i'm inclined to nibble a little bit here i think the ceo is doing the right thing.

they have a bloated cost structure. they're down to the low 60s or so that he's going to have to do. he has to cut costs pretty big time so, you know, i don't like to be positive about cost cuts i don't like to be positive about layoffs. but he's -- he has to right size this company by the way, i'm expecting a 50% cut in the dividend, no question >> yeah. down 2.5%. as far as what we can learn from banks and in terms of the macroeconomic environment, we'll see how much they set aside for losses, right? and how much pain they think there is going to be out there for some of the clients after we hear over and over again about companies drawing down credit facilities and the other issues. >> on the come kohn assumer credit side, too, what they're projecting ahead in ermz it of consumer credit. it hasn't been aacun acute issu

yet. i keep looking at the performance finance stocks trade. it's more on the banks to a large degree look, you have tremendous percentage of households not paying rent. clearly not able to completely cover all obligations. that is one of the areas wells, 60% of book value it trades at now. used to be a huge premium to book it is as cheap as citi which for a long time has been the very cheapest in the group at least based on state of book value >> well, looks like we're two minutes away from the market close. we're down 374 on the dow, mike. what are you seeing in the market internals >> pretty weak we were mentioning a very narrow market nasdaq leading in the average stock down quite a bit 3-1 declining to advancing volume so another day when, you know, the typical stock is weighed down pretty heavily. want to take a look at the ten year treasury yield. that is another story. but the ten year, just bumping along the low end of the range

that's not really giving a clear signal for the banks and the cyclical and small cap trade gets sapped of energy when that happens. volatility index, i keep saying, has not really been able to break much below that 30 level they're keeping that side lined unless that drains lower. >> thanks, mike. one minute left. we slipped a little bit in the final half hour or so of trade the low was 544 points so we're off the lows. the apple is the outperformer. the sectors within the s&p 500, consumer discretionary leads up 0.8% in large part because of amazon's 3% gains. tech is still higher too it had been the best performing

sector only up by .3% apple gave up some of the gains. apple is up 0.4% as we approach the close. will energy, financials, industrials all down more than 2% the worst performing sectors as the bell goes, sara, we're down 0.55% on the s&p 500, nasdaq up the same amount, another record close the dow down 1.4%. >> down day for the dow and record high close for the nasdaq that's been the story. welcome to "closing bell," everyone i'm sara eisen along with wilfred frost and mike santoli take a look at how we finish upped the dau on wall street the dow slipped into the close off the worst levels of the session though it was a fade into the close down 1.4%. walmart the best performer walgreens, the worst performer as far as the s&p 500, lost about .5%. still higher on the week going

into a friday by .7% they're going positive and negative all day long. closed lower as for the nasdaq, a record close, up about .5%. tech continues to shine brightly we continue to see winners the faang names that have been on here. the russell index is down 2% that has been pretty much the story of the year. coming up, we'll discuss the impact rising coronavirus cases are having on the market and the economy. keel ask jack lew about joe biden and saying the era of shareholder capitalism should end. what that actually means joining us to talk about the

market is hightower chief investment strategist stephanie link with us and michael yoshakami joining us first to you, mike what we saw the divergence among sectors and small caps getting hit where they notch another record close >> the nasdaq 100 up .8% the russell 2000 down 2% a massive spread that has been the trade. ride large cap growth and short if or doctor or stay out of small caps microsoft and half of apple is the entire russell 2000. it is a risk appetite and cyclical indicator if this market is essentially hunting for the ultimate winners, winner take most economy and all they care about is sustainable cash flows or

mega secular growth stories, that's going to leave behind, you know, a financials and health care heavy index. still an uneven tape still the s&p 500 unable to really rally back above the upper end of this week's long trading range at all >> michael, do you think there differential in performance russell versus nasdaq 100 can continue >> i do. i think small cap is at i ahuge disadvantage right now large cap is going to win the day. they're going to outperform international any cap, large cap, mid cap, or small cap i think really right now the game is really scale and the

united states is the best economy going despite what is happening from a virus standpoint does that make the setup more complicated? they're not completely immune to what is happening in the global economy. are they >> so they're all up about -- yeah, they're all up about 60% from, you know, the -- in the past month, month and a half they're up huge. it's actually startling. they're going to continue to win even if we see some choppiness around the quarter because they have high expectations going in in but they trading all about 27 to 33 times earnings. except amazon. they're much more expensive. for the growth that you're getting, the predictable growth that you're getting for the subscription revenues, reoccurring revenue mod lgels,

those are multiple enhancing i think they can continue to work especially if you get more of a w recovery versus a v recovery i think that's what's going on here and that's what we're talking about last segment people are seeing the higher virus cases and they're concerned that growth is going to roll over i do think you're going to see softer growth from here. but not soft growth. right? not declines we're not going back to the march levels i don't think we're going to see closures around the country the entire country we'll see pockets of closures. so we'll see what happens around earnings expectations. very, very high to are this group. so, you know, let's just watch it and see the free cash throw is realflow. >> earnings season as a whole, is that a help or hindrance for markets? >> i think the expectations are so incredibly low. that is more like the cyclicals, banks, energies, industrial sectors. that's more favorable to me heading into earnings only because i think we're so cheap

and if you normalize earnings, you can get around the valuations and the balance sheets, you have to pick the high quality ones. the balance sheets are good and strong you're going to see good results. even if they don't report as high as expectations or the whisper numbers. the you still want to stay in that stock and in the end markets that's in. >> let's talk about the economic picture too, michael today saw big move in bonts with yields getting crushed the five year yield actually closing at or just around a record low there is clearly economic concerns here as well. if you watch the high frequency economic data, jobless claims are moving in the right direction. they're below the recent peak. is this a growth rethink going on in the market

>> i think you're going to continue to see the ten year treasury trade at very, very low rates. the economy as it stands today is not great it's going to be better in 12 months that's what the equity market is pricing in from a fixed income standpoint, there really isn't anything out there that is going to trigger fixed income prices in any way or fixed income yields to go up. we have low energy prices even though we have a slight bounce back we still have double digit unemployment remember where it was just a year ago so i think the federal reserve has been basically explicit in that they're going to keep rates low for a long period of time, maybe even longer than perhaps they should to keep rates low. so i think that you're starting to see an understanding that growth is going to be there in the u.s. economy as stephanie

just said. it's going to be slower growth if it's slower growth with lower commodity input prices, i don't see inflation being an issue if inflation is not an issue and the economy is soft with high unemployment, you're going to see low yields for a significant period of time >> let's get a summary of all to have day's action. bob pisani has all that. >> middle of the trading range is where we ended. poor performance the regular market cap weighted only down 0.6% not a good performance overall not a good start to earnings season walgreens kind of patterned here with nike and fedex. they missed the numbers badly. worse than expected numbers. guidance is poor the this is near a seven-year low. mohawk was weak. the company artificially boosted sales. they haven't said anything about this yet they'll be reporting it tend of

the month. hopefully we get more information. hess oil stocks, terrible day. many of them down 7, 8, 9% there. amazon, the tech rally continues. what can you say amazon was $2600 a few days ago, it's $3100 today the s&p 500, two months. i want to show you, this is a w. it is not a v. the market is having a very difficult time figuring out whether the reopening story is going. the market believes tech is the winner the market believes that tech is going to be a winner heads you win, tales you win too. rather remarkable. back to you. >> bob, thanks so much for that final thoughts on the action today have we seen anything in the opgszs marketors in the flows that gives us conviction in either direction >> not universal in one direction. i have to say. you do see some overheating activity in options in general

so you see stretched overheated sentiment and technical conditions in technology and then you see mostly other people kind of sitting it out and the average stock kind of going out there. i don't think say clear message from that except this idea that tech is a one way trade and you can't pay too much for the greatest companies in the world. at some point it gets tested the nasdaq 100 is 27% above the moving average that is just historically very wide just the pure laws of crowding and everything else. maybe that will have to rest for a while. just very difficult to say what is going to cause that to happen on a given day. >> we'll leave it there for the market discussion today. thank you both for joining us. >> thank you >> presumptive democratic nominee joe biden just saying

he'll raise corporate taxes back to 28% if he lekted. we'll as the former treasury secretary jack lew who is an early endorser of den etr biwhhe that will hurt investors and the economy. we're carvana, the company who invented car vending machines and buying a car 100% online. now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you,

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28%. provide hundreds of billions of dollars to invest in the growth in this country. and the days of amazon paying nothing in federal income tax will be over >> that was presidential candidate joe biden just last hour speaking at a metal works facility in pennsylvania where he outlined the plans to revive the u.s. economy jack lew was an early endorser of biden joins us now in an exclusive interview. good afternoon thank you for joining us >> good to be with you, wilf >> do you believe that corporate taxes should go up do you think it will be popular and should any other taxes go up as well? >> well, i have to say that when we were debating corporate tax reform during the obama-biden administration, we proposed 28% and what i heard from the business community was they wanted 25% so 21% was never in the debate

there's certainly room i think 28% is a perfectly reasonable place for the corporate tax rate to be and that's what i thought when i was be secretary it's what i think now t overall, if we want to be able to address the issues in this country that we need to address, we're going to have to make sure that we fix our tax code so that those who are doing the best, earning the most, pay a fair share of taxes. after the 2017 tax cut, the system got worse, not better. >> what about capital gains taxes, mr. secretary in fact, during the obama administration, the response from the last crisis if if you look from the start of 2010 which was when unemployment peaked over the next five years, wage growth only 2%. s&p 500 returns per annu 14% if the we look at the recovery, it looks like the same sort of thing is playing out should capital gains taxes go up as well?

>> i'm sorry, i didn't hear your question >> sorry >> the transmission -- >> concluding to say should capital gains taxes go up as well to make sure that the v shape recovery we've seen in the stock market doesn't just go to a few but is spread out to many? >> look, i think we have a fundamental problem in our economy that income is increasingly concentrated. wealth is increasingly concentrated and our tax system supports that everywhere from the corporate tax rate to the capital gains rate being so much lower than the earned income rate to the way we treat inherited wealth. we don't tax it basically. so there is all kinds of things in the tax code which would address the unfairness of our economy if done in a balanced, correct way. that fits the definition of being measured and fair. you have to look at the substance of what i understand

of what he was proposing i haven't seen the speech but reports of it. he got to the heart of what donald trump thinks is the strongest case who is going to be better for the american economy i think he showed that he has ideas that will restore manufacturing, that will help workers make a decent wage, that will invest in research and development, build a better economy for the future to me, that's a debate we need to have in this country. and tax fairness and equitable opportunity is all part of that. the first thing we have to do though is recover from this economic crisis we're in because of the health crisis and as the health crisis gets worse because the policy to deal with it is handled so badly, that's going to deepen the hole that we have to get out of when we get out of the covid-19 crisis, the solutions have to fix those problems >> some of the numbers are really going up at alarming

rates. seven day infection rate for california up 26% for florida, up 30% seven day hospitalization rate for texas, up 45%. up 43% for georgia secretary lew, how would biden get a handle on this aren't we already spiking out of control? and how do you think he would approach the economy if we're still in the middle of this pandemic especially going into the fall where so many experts are worried about a second wave? >> first of all, you can only go forward. you can't go back. the mistakes that were made were made what we need to do is not make more mistakes. we have to make sure that as we reopen the economy, as we get back to normal, we do it in ways that limit the risk that infections will grow and continue to spiral out of control. i think that, you know, in the

past, you know, vice president biden laid out a very different vision for how to deal with this and i think the denial of science and fact that we've seen in -- from the white house is beyond anything i've ever seen in terms of bad policy making. you have to limit it and then get ahead of it. i have no doubt that in january 2021, we're still going to be in a very hurting economy congress gets one more shot to deal with responding to the covid-19 crisis before they break before the elections there is a lot that they need to do but when we get back to business in january 2021, it's going to be an economy that needs to be fixed and that needs to be set on a course for righting some of the underlying problems. i think that's what the speech today was about. it's also what i think we have

to redouble our efforts to make sure people understand what's at stake. >> biden said something like the era of shareholder capitalism is over what does that even mean and why is that a focus when the numbers i just read are so alarming when we're in one of the deepest recessions we've ever seen and in the middle of a pandemic whe why are we talking about shareholder capitalism ending? >> i'm going to refrain from commenting on certain things in the speech i didn't read it there is a sensible way of approaching it we should have approached it differently three months ago we should have shut things down faster we should have had people isolate faster come back with face coverings. add more testing, all of the things that not just vice president biden but most of our governors and mayors have called for. the only one that is consistently on the other side

is the president it's not testing that's created this disease it's the disease and to be clear, the economic impact of this disease will continue until the disease is under control. i have seen in the reopening of the economy if you're not flying places, you're not staying in hotels, you're not going to movies, you're not going to indoor restaurants, there is a limit to where the economic growth will come from. people are going back to work in some offices and some numbers and they go back to some factories and some numbers that's why you see a rapid increase in employment when we open back up i think it looks more like a square root sign i don't see how you break into a return to healthy economy until the health issues are addressed. >> a square root >> that doesn't mean that we shouldn't be talking about a vision for where the economy needs to go after. >> a square root sign. like that we'll use that again.

what about schools how big an impact will it have on the economy if they are not able to reopen in the fall >> it's a terrible problem kids need to go to school. it's hard for schools to even work remotely while they're teaching their kids and taking care of them at home you know, my kids are grown. i have grandkids who i see through their lives. its very disruptive. with that said, you cannot send kids into a situation that is dangerous or put teachers and all the people, all of them come into contact with in a dangerous place. now there will be some limitations on numbers of people who didn't go back and how many can be in a classroom. i don't see classrooms being fullback to normal while we're dealing with this pandemic denying that is not going to help i mean, there's going to be a combination of solutions depending on what is going on in different places

there wasn't a politicalization of the health issue, we would be a healthier country. masks should not have become a political issue. whether or not schools open or not should not be a political issue. it's a health issue. when did we stop caring about our people and kids being healthy? that's something that didn't used to have party lines on. >> we're going to talk to the head of the new york school system in a few moments about that the i want to also get your thoughts on these new buy american proposals that biden is laying out as part of the economic vision. why didn't the obama-biden administration do anything like this when it could to help boost american manufacturing at a time when we needed it? >> some of the things the vice president is propose will actually take things that we did in a smaller size and grow them

substantially. you take the community college and manufacturing centers that can make all the difference in the world in their community if they have enough money so i think we did a lot. on buy america, you know, i think right now we've got to come out of a period of unilateral sanctions and stand up to are our rights and in the world. adhere to the rules. i don't think it's inconsistent with the policies of the obama administration we're in a different moment in time >> you're talking about a democratic sweep >> i think the markets and the economy would be doing a lot better if we had stable leadership in washington

i think right now we're on the issues the market has done well there is a lot of room in tax policy to be both sensible and fair and to promote economic growth i don't, you know, tend to use language of confrontation. i don't think we should be having business fighting, you know, workers as the way to make decisions. we need employers to create jobs we need workers to get fair wages. and we need to be engaged in the same direction but before we get to any of that, we still got to emerge from the covid-19 crisis and i'm very worried that with things like unemployment benefits expiring at the end of the month, we're heading for a cliff. one of the reasons that working families have not been more

seriously hurt is they've had their wages replaced that isn't going to continue if congress doesn't act the most vulnerable workers, they need actually an increase, not just stable benefits people can't pay their rent. they shouldn't be put in the street when they can't get a job because the economy is not back to full steam. this is not a time to politicize the covid-19 response. we have had three bipartisan bills. we need a fourth it needs to be larger than i'm hearing senate republicans talk about. in the kind of envelope that they're talking about, there isn't room to do the things we need to do and this has serious economic consequences. if people don't have money to spend, it hurts the economy >> yeah. so more than a trillion dollars is what you're saying? >> yeah. look, the house heroes bill is $3.5 trillion almost the republicans and senate want to keep it to $500 billion or under a trillion i don't know what the current

number is. the economy needs something much closer to the size of the house bill there is no magic to these numbers. we're all learning the shape of the crisis as it develops. no one's lived through this before what's clear is you can't do the things you need to do over the next three to six months on a bill that is as small as the senate republicans are talking about. >> jack lew, thank you for joining us appreciate your time. >> great to be with you. treasury secretary biden's surrogate. president trump threatened to cut funding if schools don't reopen in the fall coming up, we'll ask the chancellor of new york city's education system about his reopening plans and whether the economy can fully function if students don't go back to the classrooms and take a look at recent listings space companies virgin galactic even in a down day, up almost 16%. this is the one backed by richard branson. ended the day very strong. some of the momentum names continue to e sebig gains even

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stocks finished the day lower except for the nasdaq. let's go to mike santoli looking at the rise of passive

investing. >> it's been a long rise numbers here from standard & poors showing close to $5 trillion in total in index funds that are embracing their indices. so that is the s&p 500 as well as the mid cap and small cap. and now we talk so much about the concentration of the indices. which parts of the market are working and not? of course, passive investing, own exposure to the overall index. and over the last 20 years, they would have beaten if you own the indices 90% of all the actively managed funds. here is the effect on fees in the asset management industry over that 20 year period of time obviously, very inexpensive to run. the other chart shows what happened to the active fees. you see back there 20 years ago, it was common on average to have a 1% management fee.

now you're down to .7% so pretty much a boon to investors in general doesn't mean it will be forever. maybe it can get overdone. right now, hard to see anything changing long term trend up next, we'll ask a top strategist fund manager about whether china's significant outperformance over the s&p 500 recent h me omo n. lyasorro tru

♪ 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. ♪ chinese stocks have been on a terror the past week the shanghai index up 9.5% this week alone compared to the s&p 500 which is fractionally higher so far for the week. year to date, up 13% smaller cap index is up 31%. joining us to explore what is driving this performance and whether there is more to come, manager of the jupiter asian income fund. a very good afternoon to you

thank you for joining us >> good to see you >> firstly, let's talk about the short term what has driven this massive performance, 10% higher this week and is that something that can be believed and continued? >> well, a lot of retail investors opened margin accounts in china so about 85,000 new accounts opened in june the press are talking the market up they're bouncing back faster than elsewhere it is a combination of local buyers being urged on by brass and foreign buyers thinking china does look relatively good right now. >> in the short term, is that a bit of a top or not? >> i suspect there is further to go it may well be that a bubble falls. but i normally think things take longer than a couple of weeks. and we don't think that

valuations are overly extended so the rise is being fairly sharp. i suspect that there is actually further to go. >> jason, why do you think investors are so quick to brush off the renewed u.s.-china trade tensions which have really gone into hong kong and the passage of the new security law? why is that not seem to be a worry? >> actually in, hong kong itself, things are relatively calm so i think the media outside of hong kong has been fired up by this more than in hong kong. so protests are lesser than they were >> businesses are getting more optimistic we think the hong kong market looks okay companies have stronger balance

sheets and it's very, very loose. and what type of stocks in china stand out to you at the moment what kind of themes if you can give us one or two names of your top preferences, that will be amazing? >> i think domestic consumption stocks make sense. you don't have to worry about trade sengss you don't have to worry about further trade embargoes. we think domestic demand growth is what's going to drive china's growth rate from here. i don't like companies that are too cyclical we think the internet sector looks good if you focus on social media and entertainment companies, companies like ten cent i'd rather play insurance and banking.

i prefer savings over credit and then in terms of personal consumption, personal hygiene, demand is fairlyresilient. >> still ahead, we ask the chancellor of the new york city department of education about the back to school program for the fall and whether he can ensure that students won't get composed to coronavirus.

welcome back time to get a news update. >> here's what's happening at this hour. after a seven hour search, the mayor of seoul, south korea, has been found dead in an parent suicide. the daughter of park soon says he left a message resembling a will before went missing the korean police say they recently received a experiment complaint against him. a missouri camp here at home shut down operations after at least 82 children and staffers tested positive for covid-19 at one of the six facilities. cdc director says keeping schools closed is a greater public health risk than reopening them those comments come after president trump blasted the agency school reopening guidance as being too strict and expensive to implement

the cdc says they'll release updated guidelines next week starting july 15th, starbucks customers will be required to wear a face covering in all company owned locations regardless of the local mandates you are up to date that is the news update this hour wilf, back to you. >> great stuff thank you very much. up next, inside the reopening debate in new york city public schools announcing they won't fully reopen in september and the decision has polarized the city we'll discuss with the new york city department of education chancellor after the short break. the new house is amazing. so much character. original crown molding, walk in closets... we do have a ratt problem. ♪ round and round!

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a key question, maybe one of the biggest questions for the

economy, can schools fully reopen in the fall allowing parents to get back to work full time and the answer in new york city appears to be no mayor diblasio and school chancellor announcing schools will partially be reopening but attendance limited to one to three days a week with approximately no more than a dozen people in a class roonl at one time joining us now is the department of education chancellor richard caranza. thank you for joining us how do you get an economy back reopened with kids only going to school one to three days a week? >> hi, sara. so, look, we understand that public schools are critically important for the economy to jump-start we can make up academic slide. we cannot make up when we lose a student due to this covid-19 virus. so health and safety have to be first and foremost in addition, we have adults in classrooms with children and in schools with children. some of whom may have

pre-existing conditions or be taking care of someone with pre-existing condition so we have to make sure that everything we do with in person learning is really based on science, not science fiction we're working very closely with medical experts and our epidemiologists to make sure what we're planning for is mechanical medically safe for our students, adults, and our communities. >> isn't science now pointing you towards a full reopening the american economy of pediatrics is recommending kids go to school and there had had been studies in places that reopened schools in parts of europe showing that kids are not big transmitters of covid-19 >> yeah. so we're up to date with all of that research. but i will tell you this right now in the state of texas, they're having an explosion of covid-19 infections in daycare centers. where there are hundreds of children, young children, who

remember the word was young children don't get sick. but adults have actually gotten sicker because they've been working in those daycare centers. so this virus keeps on mutating and we keep learning every day, every week something new about how this transmits and gets in our education. and we're not going to put children or at dults that serve those children in a condition where they may get infected or be able to spread that virus to those that they love and care for. >> how good or perhaps bad is a -- is remote learning as a substitute >> look, we are swimming in a portfolio of bad choices there are no perfect choices here we know that's not the case.

so what we're trying to do is pick the least onerous of a prt folio onerous choices. so given the guide license around disinfecting and around movement within a school, the guidelines around how do you enter school or exit a school, how do you limit from a social distancing perspective, how do we serve the maximum amount of students as possible in new york city, one of the densest cities in the unite, in the world, and our schools are no different, we need to make sure that we're able to serve our students in -- following all the medical advice in a twha is going to ensure the medical safety we can't possibly serve, just because of the physical dimensions of our schools, 100% of our students in an in person learning environment five days a week so we have been able to develop with a lot of input from our

teachers, families, several models in which, yes, students are in school for a couple days. they'll be remote learning a couple days. there will be one day where they'll be transz igsing week by week we want to give as much normalcy as much knowledge about what days will my children actually be in person learning as possible at the same time, it's important to note that we surveys our parents and students and we got over 450,000 responses to this survey and there is a good percentage of parents that say i will not send my child back to in person learning until there is the vaccine. how do we in a blended learning environment serve the educational needs of the students as well did we plan through on opening in september now this is all predicated upon

the fact that medical circumstances may change the plans at any minute. >> we're hoping for a vaccine sooner than later. i like how you're trying to choose the best of both options. why have you decided it's better to go this route versus the detrimental effects on children socially and from a learning perspective if they keep not going to school? who is advicing you exactly on the medicine and the science that tells you that this is the better option? >> we have a number of medical experts that we're consulting with at the city but at the state and at the national level. we have a lot of well qualified medical experts. but here's the bottom line i'm going to reiterate what i

said at the beginning. we can make up the educational slide. we cannot bring back a student that has been lost due to an infection for covid-19 this is about life and death this is abou so we are very, very much looking at a reason to put human beings in spaces together and we know more than we did in march that this virus spreads through close quarters it spreads through expectorant we know there's a greater propensity for those in close proximity to become infected we can make up the academic slide. we can't bring back a child that we've lost or an adult we've lost because we haven't been attendant to those medical

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mostly stocks fell the dow closed lower by 361 points s&p by about .5% as investors continue to digest the resurgence in coronavirus cases across the u.s. and ponder what it means for economic growth

technology was a standout again. the nasdaq composite reaching another record close, its 26th record close of 2020 small caps down 2% >> year to date performance differential between amazon and wells fargo is now 125%, which says it all really. >> wow. as states shut down businesses again, consumers may continue doing what they've been doing, spending less and that could translate into greater savings. hi, sharon. >> a lot of folks are calling this the homebody economy and the impact of this covid-19 crisis on our daily routines, our spending, our saving could last for many more months, maybe even longer. a new report found that more than one-third of americans say they plan to leave home only for shopping and socializing the majority are worried about shared services, public transportation, airline travel,

ride sharing and most plan to stick with at-home entertainment activities, e-sports and online gaming instead of going out. that's helped to cut spending. another survey found 48% of boomers have reduced spending by as much as $500 a month. putting just half of that money away could have a powerful impact for a 50-year-old who puts away $250 a month for the next 20 years they could have a nest egg of around $100,000 by the time they're 70 that's a lot of savings and a lot of discipline required but it could have a nice savings boost especially for those closest to retirement. back to you. >> the silver lining sharon, thank you very much. as we look ahead to tomorrow and the start of big bank earnings next week, mike, question is, you know, is this market due for some sort of pullback given the strength we have seen? we're still up on the week heading into a friday.

the nasdaq continues to notch new record highs. >> it's true although the average stock, the equal weighted s&p down 1.8% this week. i think one way to look at it is the market has been served up plenty of excuses to fall apart in a more dra mamatic way, yes there really has been almost a stealth pullback underway for a few weeks. i think that's a glass half full way of saying the market is absorbing a lot of this very kind of cautionary, maybe worrisome news about the disease and some fits and starts in the recovery we'll see if it does require a retrenchment in the big cap index because we really haven't seen much of that so far. >> we did have a strong dollar gold gave up some gains, which i guess shows a little bit of risk on sentiment. >> it's interesting.

gold has become very, very overloved in the short-term right now. it could just be a stutter step in gold. but you're right, it was not sending a macro message necessarily of fear building up, although again those treasury yields refuse to budge >> nasdaq up half a percent. that does it for "closing bell." thanks for watching. "fast money" starts now. "fast money" starts right now. guy adami, tim seymour, steve grasso and karen finerman with us today the rally relentless as new chinese investors pile in. we'll tell you what is fuelling the frenzy also ahead, banks battered in today's session. why one top investor says there's more pain on the way, how he is playing it later, housing triple play the three charts that could help you build some serious gains. we start off with a teflon tech rally the nasdaq seemingly unstoppable,