i'm guilty, i'm sorry to say, i feel productive. i've knocked an hour out of my day by not commuting, so on and so forth the footprints, because it will be cheaper, are going to be smaller for big companies. >> good to see you, tyler. see you tomorrow thank you for watching "power lunch. "closing bell" starts right now. it certainly does. welcome to "the closing bell." i'm wilfred frost along with sarah eisen. the s&p 500 at one point got back to break even for a whole but is well off the highs of the day. let's have a look at what is driving the action more positive news in the search for a vaccine as two company candidates get fast tracked by the fda. another major spike in the u.s. in coronavirus cases, and now stocks are sliding in part as the fed says u.s. economic

growth is slowing down due to the outbreak across the sunbelt. we have been at one point up 6%. we're now up 0.7%. at one point we got to the highest level since the pandemic began. ahead on today's show, stocks seeing a big rally to start the week jeff rosenberg of black rock says the bond stock model does not work in this environment he will join us to discuss where he's putting his money to work right now. plus, entertaining in the age of coronavirus. we'll speak with pitbull about how artists are navigating a world without live events, and his efforts to help latino businesses let's focus in on the big stories with 59 minutes left of trade. bob pisani tracking the action phil lebeau is watching the surging stock prices of electric vehicle makers joining us with his thoughts on the race for a vaccine and the biotech name is michael ye from jeffires start us off with the market

with the dow up 400. >> we have had a remarkable run in the last three weeks or so, sara, with mega caps, semiconductors, work from home stocks that's starting to get pushed on valuation questions here you can see that in the middle of the day yes, we're still up 400. look what happened to certain stocks tesla, an amazing run, of course, up 60% in ten days up nine out of the last ten days middle of the day started drooping and went into negative territory. trying to bounce back. this is similar to a lot of other sectors that have had big moves up particularly anything work from home you see the names here these have all had big, big moves up and all of a sudden middle of the day they ran out of steam these become basically set up for momentum and when it goes against you you have so much profit you take it quickly. the same with semiconductors an amazing run 5g they're gearing up for, and they've had a big deal today announced in the area. down but not quite into negative territory. as for the market themes this

week, one big one that's simple. is earnings season going to be successful the theme is q2 is the bottom. that's the bull case the reopening is looking murkier and may complicate that. we're looking for companies to comment on guidance. pepsi didn't do it today a little disappointing there ecb rate decision thursday will we get nor stimulus china data, gdp later in the week back to you. >> bob, what's the narrative around the record number of cases, coronavirus cases, we're seeing here in the united states is it still that the death rates are nowhere near the peak we saw when new york and new jersey were surging a few months ago? is that still the story? >> reporter: right so, remember, the sort of treatment and vaccine is the main positive we have going so far. there's been good treatment that is have come forward there seems to be lower hospitalizations than three or four months ago. that's the key thing moving things the main problem is if the corona -- if the reopening story

gets murkier it starts impacting a lot of companies' earnings estimates, and they're supposed to be turning around remember we have endless stimulus coming and, of course, we have hopes down the road for some sort of clear deal on the china trade story that's still floating out there as a wild card, sara >> i will quickly mention the fact clearly we've lost steam in tech stocks. the nasdaq is negative you have amazon, netflix, microsoft in the red for the day. somewhat encouragingly it hasn't devalued stocks. you can understand money coming out of one mbucket into the other. you can take positives the banks index is at session highs up 2.1% >> reporter: well, thank heavens, finally there's a point where this other bucket, that i didn't mention that moves the market, is the valuation question are stocks fairly valued or are they overvalued? we know generally they're

pushing any of the reopening names, any of the semiconductor names, all pushing high-end evaluations. at some point there's so much money made in just a few weeks, not months or years, that you get a little pressure, you take some profits quickly and move into something else. you know, will, many of the big banks are trading below book value. a lot of 0.7, 0.8. historically pretty low numbers. >> thank you very much for that. the nasdaq, as we said,the red s&p up only half a percent it had been up 1.5%. session high 1.4% maybe. tesla shareshad been surging to start the week but are now well off their highs phil lebeau has more on that story and the broader electric vehicle space. >> reporter: even with the pullback, will, if it doesn't change the fact people are excited about electric vehicle stocks, tesla is the most obvious. other companies developing electric vehicles are getting a lot of attention we're talking about fisker

why are we showing you that chart for spartan energy acquisition? this is the stock merging with fisker fisker will get about $1 billion out of this merger they're ultimately going to be listed on the nyse they're doing this why because fisker wants to bring this vehicle to market called the fiskerocean. we talked to the ceo of fisker earlier today. this $1 billion allows us to have the money to get all the way up through manufacturing of this vehicle in 2022 and, guys, we've talked about this for some time whether it's nikola, nio, work horse, that's why all of these stocks have had a heck of a move over the last few weeks. now you have fisker along with spac and an ipo that will happen on the nyse raising more than $1 billion for fisker >> phil, tesla, though, just diving into it

no news flow explaining why it was up 14% and now back to being up 3%? >> your guess is as good as any. was there a catalyst to drive it up or down no, there was not. but we see this every once in a while as we see the wild moves in shares of tesla look, i remember back when over $900 for the first time back in january or february, somewhere like that, and then in the span of an hour it went down like $100 people were like, what happened? that's what you're going to get when you have a stock like this that is just moving in huge chunks the way it is >> phil lebeau, as always, thanks very much >> pharma and biotech stocks seeing a boost today one of the sectors nicely high as we see new development in the race for a covid-19 vaccine. the fda granting fast track status for pfizer and biontech the companies hope to make up to

100 million doses by the end of the year shales of moderna soaring 20% after jeffires initiated the stock with a buy rating saying they believe the covid-19 vaccine will be approved and could do $5 billion in orders over the next few years. joining us for more the analyst behind that, michael ye. michael, great to see you and thank you for joining us we'll come to the initiation on moderna in a moment but start with the pfizer/biontech news. how much of a game changer as we get periodical updates from all these vaccine hopefuls is this a game changer piece of news or just incremental >> great question. it's another incremental data point and supports the fact the fda, the agencies and the groups here working together are doing the best they can to accelerate the review of these vaccines and that this is a fast track and is a priority to get done

it's all along the path what have we've been talking about getting something by the end of the year >> what do you make in terms of the likelihood this will be enormously profitable for the companies versus just if successful great for society >> i think both things are important, wilfred i think, first and foremost, getting something available and doing billions of dollars, if you do out the math between each of the companies, pfizer, moderna and others, is obviously hugely important i think some of the companies will be profitable, but even, you know, marginal profits on that is important given the sheer size and scale of what we're talking about here particularly for small companies, of course, like moderna or biontech. that would be important as well. >> so with this news and your coverage of moderna, can you, michael, give us an update on who is winning the race? is it astrazeneca, pfizer,

moderna? >> yeah, it's all sort of neck and neck you have moderna beginning their phase three studies. there was a question what week in july. we could confirm yesterday they're on track to start up this month obviously pfizer and biontech this month astrazeneca as well is getting geared up. when you add it all up and the rate of enrollment and when they will have phase three data, they're looking to have infection data by the end of the year to be honest, sara, it looks as though we'll all get information and our call is emergency authorization use if the data are positive all probably around the same time. and if we think about it, it would behoove the government and many countries to have more than one option available both from a stockpile perspective, by diversification, and if there was an issue with one they would have others available.

we need many of those and i presume many in the u.s. government will have many available, if that makes sense >> you don't think this has already been priced into the stock by moderna >> yeah, i think that's our call our call is there's still a great debate i'm sure your viewers would have a debate whether or not we are going to have a vaccine that works. we don't have the data fauci is out there saying he's cautiously optimistic. he doesn't know for sure if he's going to have it certainly if we do get one available at the end of the year specifically moderna and it lands a contract for $1 billion, $2 billion, $3 billion the next year or so that would be huge. that would be important and a huge risk for moderna and the pipeline it's certainly not priced into the stock yet. there's more pricing if we get it and we don't know if we're going to get it, but that's our

call. >> fingers crossed for all of us michael yee, thank you very much for joining us from jefferies. after the break, grover norquist has been an opponent of government spending. why did his americans for tax reform foundation take a ppe loan he'll join us next to discuss. plus, financials holding up well morgan stanley will join us with a name best positioned as the earnings season gets under way tomorrow you're watching "closing bell" here on cnbc what do you look for when you trade?

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45 minutes left of trade restaurants, dentists office and hair salons the groups receiving funds from the government's payment protection program known as ppe the small business administration says the loans supported 84% of small business employees and 5.1 million jobs the tax funded loans went to nonprofits like the american tax reform foundation which advocates for lower taxes. that group is run by grover norquist he joins us now. grover, good to have you here. a lot of people were surprised

to see your foundation on the list of recipients from ppe. you are an ardent critic of big government, government spending and taxation and here you are taking taxpayer money for a bailout, explain >> the payroll protection plan was set up to help keep people on payroll whether they were foundations, institutions, universities, for-profit smaller companies, and the effort was to make sure people didn't lose their jobs and go on unemployment when the government runs a road through your backyard, they don't just take it since they did the damage, they -- there's a taking question there and so compensation is helpful and necessary. "the wall street journal" did a good job of pointing out that in these cases it was the government that shut down businesses, damaged universities and other not-for-profits like the foundation you misspeak when you say it

takes political funds. i, speaking for americans for tax reform, take many positions in politics, not something that had to do with the paycheck protection plan. one was a foundation, like a university, very badly damaged this year by the shutdown and the economics. we didn't want to lay people off. and the government program said instead of putting them on unemployment, here is a loan if you keep everybody employed, which we have been able to do. so i will fight for lower taxes and less spending, period, but certainly the foundation does not take political positions it does research >> well, on the foundation website there are lines like obamacare has failed, a carbon tax will be an economic disaster, and you, yourself, are running it so it doesn't seem that different. >> well, the heritage foundation -- or the brookings foundation put out papers. they don't lobby or they'll do

research or harvard will have professors that put out things that are policy issues but not lobbying and that's the distinction between a c3 and a c4 t"the wall street journal" did good job in walking through that i think you take a look at a program, if you wanted to move forward, we certainly didn't oppose the protection and the compensation for takeings, that's perfectly reasonable for governments to do. covid didn't shut down the government the government decisions told people they couldn't fly planes and they couldn't do other things and gather. when the government makes those decisions, as in the takeings in the constitution, recover for those costs, perfectly reasonable i know some on the left have tried to act like it wasn't, but they missed the point of the constitution, the takings clause and the importance of keeping people employed. what we could have done and what we would prefer to do, americans for tax reform argued for, is

reduce the tax on social security on the corporate side and the individual side so that it's less expensive to hire people in the first place and they get to keep more. both the incentive to get people into the workforce and the incentive for companies to hire more people or to keep people that they do have employed long term we've done that in the past. i think it's a very good way to deal with not having companies or institutions like a foundation or research institution or university to lay people off they all pay social security taxes both at the individual level and at the institutional level. that, i think, is a better long-term way to do it it's not a new program and so the government does know how to do that very easily but we have now the most important thing to do going to keep people in jobs is to make it clear from now until the election that we're not going to be raising taxes and we're not

going to be doing anything that damages the economy. and that's why april 15th is now july 15th. july 15th is when you have to file your taxes. >> arguing for those changes in social security that you just outlined, you're doing that in your position as head of foundation or head of the lobby group? >> no, i speak on all political issues as head of americans for tax reform >> it is a bit confusing, i think. moving on -- >> it's not. lots of foundations do exactly the same thing but go ahead >> i'm not saying that excuses it it's confusing for them as well. stepping away from ppp specifically, what about the bailouts, for example, for the airlines do you find those unpalatable? >> if an airline lost money because the government says you cannot fly, then it's not a bailout. it's compensation. if an air company drives itself

into bankruptcy, as they did in previous years with contracts they can't maintain or pricing structures they can't maintain, it's a bailout if the airline lost money it's a taking if the government said you can't fly and you cannot have these people on the planes, and you're going to be making less money because of a government edict all the difference in the world between rewarding failure, a bailout, and having the government step on your toe and turn around and act like you stubbed your toe >> you're making the argument for taxation it's important for the government to have this money from taxpayers to help them if they can >> yes look, i get this all the time. you're not for higher taxes, therefore you're for no government i'm sorry, but that's ludicrous. the federal government seizes in taxes 20% plus of gdp and state governments spend a whole bunch

of it, too when you're talking about the amount of money the government now has, does it need higher taxes? the argument is no the goal now should be to reform government in fact, government as structured is too big, too inefficient. we should be reforming government as bill clinton did with aid to families with dependent children, block granted it out to the 50 states. the cost dropped 10%, 20%, 30% as various states competitively tried to figure out how to help people at the lowest possible cost the argument for limited government, which the constitution requires, is not an argument for no government i know the left likes to play that game, but they're being silly. the argument we put forward is don't raise taxes, reform government the only time we ever get any sort of government reform is when a state feels it can no longer tax because people are too angry at the high tax rates.

california after prop 13, massachusetts after prop 2 1/2, cities that have gone bankrupt by spending themselves bankrupt can actually reform at times through bankruptcy and others. the federal government when obama wanted to take another $2 trillion beyond the debt ceiling, the republicans said they would grant it over the next decade, put a limit on spending the president agreed to that, and it has been very successful in keeping spending, took spending from 25% of gdp down to 21% in a couple of years that was a dramatic drop in spending but only because the republicans in the house and senate who have taken the pledge we share with people said we're not raising taxes. we must reform government. obama tried everything except that and had to agree to reform

spending >> the deficit is rising again having come down -- >> spending. >> so we know you want lower spending, i guess that from the federal government but taxation also exists, grover, to address inequality. and it's clear that the response to the last crisis was not equal s&p average five-year return after the peak of unemployment was 14%, wage growth 2% for each other five years it looks like the same thing, v-shape for the market not for the average worker with that in mind is there not an argument to see capital-gains tax rise, for example, or some other tax rise to address inequality not to fund more spending >> okay, well, if you want that, biden is your guy. he has told every american would be paying 40% capital gains, rich, poor, in the middle. he wants to stop people from making more money -- >> i'm not saying biden versus

trump and put people into a box of specific policy i'm saying to you is there an argument wealthy people should be paying more taxes particularly given the current crisis we're going through where the stock market has soared and wages are not bouncing back in line with that >> okay. we've had a test we've had the eight years of obama and, you're right, rich people got richer. then we had the republican tax cut which appeared to be complaining about or criticizing, and what happened, the stock market went up and the lowest income increased faster than before. we saw people who never had jobs before went from zero pay to $15,000, $20,000 and $25,000 the biggest jump is the guy who never had a job in eight years under obama, who got a job when we cut taxes when you cut the capital-gains tax you increase employment. that is one of the things that's

been very helpful, even the marginal tax rates, growth occurs and, during the last several years pre-covid but watch for it again because the fundamentals of less regulation, $220 billion in less regulatory burden every year with just the stuff that was passed before this year, 2019 you're looking as that kicks in the $220 billion, not higher spending, not lower taxes, just less government in the way costing less money you do that, you bring taxes down and you saw low incomes rise in a way they never did you're right, obama filed the policies you're suggesting tax the rich that will make everyone equal it didn't. trump cut taxes across the board for all marginal tax rates and you saw growth for lower income people, minorities getting jobs in ways they hadn't in 50 years. so there is an effort to reduce

inequality, to help people go from zero to $15,000 and zero to $25,000 jobs and that's growth and that's why lower taxes and higher growth are better for lower income people than the alternative. and we tried it under carter, and we tried it under our friend mr. obama. we did get a capital-gains tax under clinton. that was very helpful. >> grover, we're out of time just to wrap it all up and to put a fine print on this ppp discussion, because i'm sure you're still receiving a lot of comments as are we about it, how did covid impact your foundation's business? what happened to revenues, and why weren't you able to keep people on the payroll without it couldn't your people work from home >> everybody has to work from home that made life more difficult. but one of the things you do is you run conferences and you bring people together and you

get revenues from that the number of things that were very problematic and that were real dead weight costs because of actions of the government it's not just it would be nice to have more resources, a question whether you could keep people employed or not and so far we've been able to keep people employed i intend to. we're certainly hustling and making sacrifices on all sorts of levels to make things work. the program did what it said it would do which is save jobs, keep people not going on unemployment as a result, and i think the numbers that the government put forward, the 51 million jobs were held together during this period is a good step forward, a recognition that ifthe government damages you, it has a role in fixing what it did. you can argue the government was too intrusive. it shut down too long, too much. there were other ways to do this not as damaging to the economy or to particular industries. and i'm open to those suggestions, but that's 20/20

hindsight. the government said we have some responsibility to not further damage those people whose jobs we may be endangering. >> good to get your take on all of that. grover, thanks for joining us. >> you've got it >> grover norquist we've seen the gains just cut in and a half the dow up 237 we have breaking news on the coronavirus situation unfolding in california. >> reporter: this is pretty big news out of the state of california the governor there just announcing that california is now closing indoor operations statewide for restaurants, wineries, movie theaters, family entertainment, zoos, museums and saying that all bars must close all operations seeming to indicate both indoor and outdoor operations also adding in a separate tweet that in 30 counties they will now be required to close indoor operations for fitness centers, places of worship, offices for noncritical sectors, personal

care services, hair salons, barber shops and malls a major reversal for the state of california as it starts to scale back its reopening because of a surge in coronavirus cases. we're certainly seeing this in other places around the country. there are some parallels with the city of atlanta as states and municipalities around the country start to realize and start to deal with the fact we're starting to see cases surge again. so, again, governor gavin newsom of california saying indoor operations statewide must close for restaurants, wineries, movie theaters, zoos, museums, bars must close indoor and outdoor operations and that for 30 counties including l.a. county that they must close indoor operations for gyms, places of worship, personal care services, hair salons, barber shops, and malls. >> an interday chart, the s&p 500 was up about 1.4% or so around 2:00 p.m. when i stopped doing the exchange now down 0.2%. it's given up a lot of ground.

the nasdaq at an interday high and set for another record close down more than 1%. i think the interesting point on this clearly for bars in california, indoor and outdoor, the focus of this announcement from governor newsome is on indoors. i think two big takeaways from the last couple of weeks of spiking cases after reopenings, it's that you should be wearing a mask and that big gatherings indoors are what cause the biggest problems and one factor that i think we perhaps don't talk about enough because we're not there yet is what happens when we get to the fall and the weather takes a turn for the worse if the only things that have been able to stay open are outdoor dining, outdoor drinks that's going to have to close as well then. i think there's a lot of swing factors in terms of what could go right and wrong from here for the hospitality industry and the rest of the economy. >> right the only thing you have to hope for is we're going to start to get some of these studies out on some of these treatment options that will hopefully get us to fall and bridge us to the vacci vaccine, talking about the antibody treatments that seems

to be what the optimist take is. you're right, the focus indoors continues. it's not a coincidence the s&p 500 has gone negative now that many counties in california including l.a. county is going to have to roll back a lot of its reopenings it's not just the federal government who is in charge here it's the local authorities who make these decisions on rolling back the reopenings on the economy. >> and, of course, the other two positive points always to note relative to march is the number of hospitalizations per case much lower than it was in march because we're testing more -- >> and deaths. >> -- per hospitalization is lower because treatment has gotten a lot better. we are selling off on that news, the s&p is now in the red for the session having been at 1.4%. still ahead much more on the market and the late session. mesf esmos.atrey rosenberg wh heak othe ve

welcome back time for an update with sue

herera here is what's happening this hour. secretary of state mike pompeo rejecting nearly all chinese territorial claims in the south china sea. the move opens a new front in the political confrontations between china and the u.s. china has been building its claims in that area for years. white house press secretary kayleigh mcenany say republicans still plan to hold their national convention in jacksonville, florida, next month as florida reported another 12,600 new coronavirus cases today. it is the state's second highest daily tally since the pandemic began. and the pandemic could help push an additional 130 million people into chronic hunger this year according to the united nations big annual report on food security. asia remains the continent with the most people lacking food at 310 million people hunger is expanding the fastest in africa. you are up to date sara, back to you.

>> sue herera, thank you just under 30 minutes left to go before the bell. we just lost a lot of steam. the dow shed 300 points. s&p 500 dipped into negative territory. the nasdaq goes down 1.7%. industrials, health care and the banks are hanging in there leading the markets. technology is weighing us down big headline of the hour is that california, 30 counties, are now requiring places to close indoors like offices, gyms, salons, malls, and places of worship. after the break the financials, as we mentioned, higher on the day. jpmorgan, citigroup reporting at the bell and as we head to break a quick check on bonds for you today. as we've seen earlier stock market a little bit higher the dow remains so you have seen bond yields mix. the ten-year note yield 0.62

there is some buying there of bonds with pressure on the yield situation except for the short end of the curve we'll be right back. jeff rosenberg of blackrock to discuss bonds later in the show.

welcome back earnings season kicking off this week high stakes, of course, particularly for the banks wells fargo, citigroup, jpmorgan all report before the open tomorrow let's bring in betsy graseck joining us on the news line. thank you for joining us before we get to the earnings, per se, i wanted to dip into a great research note you put out recently which analyzed exposure

of the banks to the counties across america that are seeing the biggest spikes in covid cases. of the big banks which stood out as having the worst exposure in light of this news that l.a. is shutting down various parts of its economy again? >> yes, so that research was led by our mid cap bank analyst and myself out of the big banks be they jp, wells, they all have exposure to these counties b of a is most exposed to total including their corporate deposits as well but importantly, as a percentage of total company the mid cap banks are more impacted because they're much more as a percentage of total exposed to these locations. for my names b of a has the most dollars of depos knits these counties >> and pivoting to earnings tomorrow, the question on

everyone's tongues is whether or not this is going to be the peak of provisions of set aside money for bad loans this quarter what's your expectation there? >> yes, wilfred, exactly right that's our expectation that we see the largest increases in reserve build. some companies will be lower than first quarter because they didn't put a fiscal overlay on top. but for most our names we expect reserve build to be close if not higher than 1q look, we're going to have really strong trading revenues. we're going to have very strong mortgage gain and in our models what we're doing is we're putting all of this into reserve build, and that's why we're below the street for most of our estimates. but it's really messaging a view that the management teams will

be conservative in trying to build reserves as much as possible >> so, betsy, with that in mind who is best and worst positioned given the stocks and earnings? >> so in terms of the stock setup, we look at what's priced into the names and i look at ally bank. ally is one of these institutions who could have a reserve in 2q that's lower and it's priced like a 17% cost of equity what does that mean? it's trading at less than close to half book it's basically on a six times 2021 earnings estimate this stock, doesn't make any sense to me. it's our top pick going into the quarter. out of the money centers that are going to be reporting tomorrow frankly citi is our to pick only 7 1/2 times 2021 estimates.

we're really looking at the valuations of the companies when we're answering the question >> betsy, these stocks peaked in early june it was at or around when you had your morgan stanley conference and the tone that came out of the conference was really quite positive obviously since then we've seen a worsening in cases across the sunbelt. even if that didn't quite capture in the numbers given that, of course, the quarter ended at the end of june, if the tone of the commentary on the earnings calls is quite a lot worse than we heard at your conference in early june, do you think that could take 10% out of these stock prices how big a swing factor could that be? >> so it's a big hypothetical here, as you know, but i think what you're going to hear the management team talk about is what's going on in the books how much is forbearance, how much delinquencies increasing, and what is the percentage of folks in forbearance actually

paying their loans how has that changed i think we'll get a lot more information on the quality of each one of these companies booked because we have a full quarter and a half or so in the bag in this unusual economic environment we're in so to your point on cases, caseloads increasing does speak to a concern about the pace of the recovery, but when we look at the facts that are out there today, unemployment is lower today than it was in june at our conference, and obviously i think that will be the driver. now to get a one-time 10% decline in the stocks i think takes much more negative expectations than the caseload increases that we've seen today. not that i, you know, like seeing those kind of caseload numbers but i'm highlighting the need to see something worse than that >> betsy, thank you. betsy graseck from morgan

stanley. after the break we'll be all over this late day pullback we're seeing in the market and the names driving the action inside the market zone the dow only up 133 as california makes a move to close indoor bars, dining, gyms, churches and hair salons ony,biesd's fifth ggt ecom that state. we'll be right back. hike!

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don't get mad. get e*trade's simplified technical analysis. welcome back we have 12 minutes left on the trading day. commercial free coverage of all of the action going into the close. here to break down the crucial moments of the trading day, a very good afternoon to you both. let's kick things off with the broader market slipping after california's governor says he will close bars and indoor operations rolling back many reopening measures the dow at its session low, up 55 points. it had been up 560 or so s&p 500 is now down almost a percent. the nasdaq in particular having a 3% or so interday swing.

it was at a record interday high, set for a close very much now in the red all of the big name tech stocks in the red other than apple which is holding on to a fractional gain. charlie, if i start with you, the banks still up 1%. some of the value sectors still up 1%. if we continue to see tech turn around meaningfully do you think they could also rise, or would it be a case of falling less than perhaps the recent outperformers? >> it's tough. clearly tech is a crowded trade. i was looking at the multiples and the faang stocks and multiples that make no sense no denying the momentum. so, sure, i believe that value can outperform i think value can hang in there, even go up as we get a correction in tech stocks but, boy, i've been saying that for a long time. >> liz, it appeared to come as a surprise to the market the

california headlines that gavin newsom came out and rolled back a lot of the indoor reopenings california the most populous state, 15% of the u.s. economy should that have been a surprise given the case numbers and hospitalizations we're seeing there? how is the market trading off some of the headlines? >> i don't think it's a scientific surprise they had to roll back into a more restricted state. i think the issue here is that california, major metro california, including new york as well are big bellwether how this will go forward although we were kind of comfortable with an uptick in cases in the market, across the south and the west, probably not as comfortable with restrictions and a further uptick in some of those bellwether areas >> has it changed your view of the market >> it hasn't changed my view of the market a second wave that's dramatic is the biggest risk this market

faces. i think the biggest head scratcher today is that tech space because there's been appetite for tech even in market pullbacks, but if you think about this just from a common sense perspective we have increased tensions with china and tech is second only to materials for their foreign revenue exposure and california really is the tech epicenter of the united states so i don't know that it's that big of a surprise that tech is pulling back a bit today i do still think there's room for tech as we move through this and as we go through the recovery phase and i'm still optimistic we'll stay in a recovery phase, but it's not going to be a straight line >> charlie, we did see value outperform growth, but it only lasted for about two or three weeks late may, early june what would be the trigger or the reason why that should last for months or years rather than weeks? >> a return to the recovery and the reopening story, that's why those stocks did so well the names in value tend to be, as you mention, industrial, consumer staples, some financials and banks those companies will do very

well when we get the recovery and the reopening. the reason they've gotten wobbly since is the reopening has gotten wobbly. if we return to better numbers, get a flattening in cases and return to a drop in deaths, which we had been seeing, then i think value can really crush tech because the valuation gap has just widened out a lot since that period you talked about >> let's hit the casino stocks they're holding on to some gains but well off the highs of the session like many other stocks contessa brewer with more news >> reporter: yeah, sara, it's a double dose of good news good news monday for mgm and wynn they along with penn reopened their massachusetts casinos. and now word comes in that macao may have an easier time attracting visitors. neighboring guangdong province will lift its mandatory 14-day quarantine for people coming in from macao if gamblers want a short trip,

they can return without hunkering down for two weeks the stocks getting a lift on that macao is still on its best pace -- on pace for its best day since 2009 wynn in las vegas, sands making gains in their share price and right here mgm resorts still in positive territory and, again, springfield has reopened. there are people inside and playing. lucky day for mgm. >> contessa, thank you very much for that it's a merger monday the details of that story for us >> reporter: so that's right, wilf analog agreeing to buy maxim for $21 billion in stock analog shareholders will own 69%. tech analyst patrick moihan says it makes tactical sense and could put them in a stronger position to compete against rival on semiconductor remember, there has been a

flurry of deal making in the sector the last couple of years. consumer assets and investors are piling in. the smh hit a fresh all-time high in today's trade surging now 70% from its march lowes guys, back to you. >> josh, thank you very much there's been so much consolidation in this space, charlie. is there more left >> it's been one of the few places there's been move con consolidati consolidation. these are companies where often mergers make a lot of sense where there's a strategic rationale for doing deals. they aren't just financial leverage and financial engineering. so, yes, there's been deals here we think there will be more. it's been disappointing how little m&a activity. you need ceo confidence and

valuations right now all three of those things are a little wobbly >> a few random ones like uber, postmates and this, but clearly, yes, the trend is much lower i wanted to hit shares of pepsi, also in the green today but off the highs of the day the company beating earnings and revenue forecast this morning seeing strength in snacks and quaker oats as people have stocked up and stayed home. quaker was not growing prepandemic up 23% north american beverages down 7% pepsico ceo hugh johnston was on with me earlier on cnbc talking about whether these trends we're seeing from the consumer are changing with states opening back up. listen >> convenience stores seem to be very much back on track. the food service and restaurant businesses, the office businesses, the hotel businesses, obviously that's

going to take a bit longer because people haven't gotten themselves all the way back to those behaviors. that may take a bit of time. one of the things we're seeing, though, even as the markets open up a bit more, consumers are sticking with some of their habits they went back to large, entrusted brands like we have and seem to be sticking with those. they seem to be balancing indulging with healthier eating and our portfolio placed above -- >> it's interesting, pepsi sort of positioned as a stay-at-home stock because the food business has been so strong especially with people eating breakfast at home and a reopening stock as the beverage part of the business has been hurt by restaurants and gas stations with johnston you heard there saying it looks better the other thing i wanted to flag is a theme as we go into earnings season is the $400 million charge that pepsi had to take as a result of covid-19 johnston said they would have been flat on earnings per share

if not for those extra costs related to safety precautions and getting essential workers online, which they had to do to keep the food supply chain going during the worst of the pandemic he says those will moderate a bit. it's something to watch for. >> the other thing that stood out from your interview and analysis was the different country performances for beverages which, of course, is more linked to the reopenings and how starkly different that was country to country >> it sort of looks like the virus curve because among the strongest growth for pep sip was china up 30% india was down 30% germany also very impressive up 18% versus a uk up only 3% i'm talking sales numbers there. which does highlight, and johnston confirmed this, you have to deal with the virus and crush that curve and get it under control to get consumers out and confident again for the economic recovery, maybe a lesson there for the u.s liz young, how do you think some

of those consumer takeaways from a pepsico and a stock which is defensive but clearly has some exposure to the economy and the reopening play looks for investors right now? >> right first of all, it's important to think about the q2 earnings season as the bottom nobody expects earnings to be good during q2 the bar is pretty low. i think there's a good chance companies could beat the expectations there's also a little clarity into what will happen throughout the rest of the year that any good news will sound like great news i think q2 earnings season will be a tough one to get through. as far as consumer names go there are certain pockets of the consumer space i think you can find opportunity in. if we expect this recovery has legs and it continues through the rest of the year and into 2021, the consumer will eventually start to spend more some of those pieces like restaurant, leisure, travel, will be the last to come back. in the retail space i think there's opportunity there, certainly in the auto space i

think there's opportunity there, anything related to the auto space because people aren't flying so they're driving. i do think you can look at it as an opportunity if you have the risk appetite for it >> we have just over a minute left in the session. if we can start with the interday, the nasdaq composite was at a record interday high. it was up more than 1% on the day, set for another record close. but it has sold off significantly in the last couple of hours we had some comments from fed member saying the economy could worsen because of some spikes in cases and confirmation how that might happen when governor newsone newsone newsom of california is shutting down the state an interday swing. similar themes, the s&p500 was up it had been up over 550 points now up a handful, 20 points or so health care, industrials and financials do hold on to gains some of those value stocks still

higher the bank index up 1% banks earnings that start tomorrow and the bank index was up sharply on friday the tech sector is very much in the bottom communication services and tech down more than 2%. the likes of apple which had been up nearly $400 and up 4% now down half a percent at $380. the nasdaq composite down over 2% and the dow just fractionally higher by ten points or so >> what a swing. what a big reversal. the dow losing almost all of its earlier gains. we were up more than 500 at the highs, closing up about 11 points welcome back to "closing bell. i'm sara eisen here with wilfred frost. take a look at how we finished up on wall street. the dow closed positive, up 11 points on the day. you saw that fall just in the last hour of trade the big news is that california

governor newsom did decide to extend closures of indoor dining, gyms, salons, office that is are not essential. we learned that l.a. and san diego would be virtual in terms of schools for the fall. the s&p 500 losing a percent after earlier in the session actually going positive for the year we're now down about 2% year to date at some point earlier this morning we were at the highest level since the pandemic for the market financials. the industrials held up relatively well. technology and consumer names got hit. the nasdaq after reaching an interday record high gave up all of its gains and then some finishing the day down 2.1% and the russell index fared a little better than the tech trade down 1.3% coming up, we're going to ask musician and entrepreneur pitbull about the outlook for the future of live events and concerts which have been hit hard during the coronavirus. joining us to talk about the

market today, though, first charlie is still here, liz young, along withis is the poine program where we usually ask mike santoli to wrap up the action we saw during the day today. charlie, we'll go to you you're a regular on the show the rollbacks and the reopenings, was that the big driver of the lack of enthusiasm, the overall negative news on coronavirus throughout the session? >> that's right. this is all about the direction of the news. we've had stories about when things would reopen, the celebration of reopening and then in the last couple of weeks, and particularly today, we've had a reversal now there's a danger we could start to have more bad news. sports leagues instead of announcing when they're going to open, announce they're not going to open and that would not be good for economically sensitive names.

tech names have held up better at some point valuation has to matter right now the disparity between value, industrial stocks and tech stocks is so out of whack that at some point it has to matter >> there was extraordinary interday moves, sara apple, for example, up near $400, didn't quite hit it, closing at $381. a huge interday turnaround tesla stands out of all of them, up 14% closed down 3% or so a 17% interday decline, charlie. i guess it makes it cheap enough for you to buy it. >> absolutely. >> only 300 p/e. i looked at these this morning and just remember that when greenspan said the market was irrationally exuberant was in 1986 even he was early. i'm not the only one who has been early a number of these stocks, if you look there was a time apple was a value stock trading at a teen

p/e that is now over 30. you have tesla, amazon, netflix all at p/es of 100 plus. so this has not been anything about earnings it's been about momentum it's been about where to hide in a tough economy. and at some point valuation will matter >> amazon also took a wild swing intraday and closed off about 3% liz, it's true if you look at where the double digit gains are for 2020, they're in bonds they're in gold. and they're in the nasdaq. that has been somewhat of a safe spot for investors amid the uncertainty and the pandemic shift in behavior. is that still the case, or do valuations start to matter here? >> i think valuations matter today, and if you just think about what happened throughout the day we started with some really positive news on a vaccine and the market ripped on that news. and then when we got bad news on rolling back and maybe having another economic shutdown the market turned around very quickly. but throughout that entire

period the vix marched higher. as volatility rises with it you have to assume that rally is fragile and will not take much to turn it around. we are so dependent on the health data and, more importantly, we're dependent on the vaccine data and the treatment data here. >> one of the topics that's always been debated the last couple of months is whether the bond market or the stock market is predicting where the economy is going to go, i.e., will it recover, the economy, or collapse where do you stand on that >> i think the bond market has been consistently a better indicator, wilf. we saw that before the 2001 recession, before the great recession in 2007, and it is no different this time. and in terms of what has been happening here look at what happened when the dow was up 500

points earlier in the day. the ten-year treasury yield was down so if you believed the bond market rather than the equity market you will at least have had a few hours' notice in terms of what was coming let me go a step further what is the bond market reacting to not only my home state of california that has 15% of gdp we have seen and i've seen myself restaurants in the neighborhood have been shutting down even before our governor decreed it today that has been taking place for quite some time. the attendance is low. and a very important point today, texas governor shuts down bars and restaurants for a second time. the shutting down for a second time is crucially important, and i'll tell you why, because once you believe that it's a temporary phenomenon, you shut it down, the expectation you're

going to open your restaurant a month or two months later. if a second shutdown happens, the story we have is they decide then to go away from the business altogether. and small businesses are 44% of u.s. activity, and they are closing like crazy all over the world, all over the country. expect that more to happen in the case of texas and florida and also more and more in california the education system, whatever the president may wish, the los angeles school district, the second largest in the country, we are not going to open anytime soon san diego is not going to open anytime soon for children to attend school. the last point i would add to it is the new york city mayor pointing out a troublesome increase in incidents in the 20 to 29-year-olds.

a new development. that, again, is something which will effectively have an impact on the stock market, which will probably be late in reacting to it like usual, but the bond market is going to react faster, sara >> my only argument with that argument about who is right, stocks or bonds, how can either of them be right, sri? they're both pretty distorted by the federal reserve right now which has been an active player in the bond market and with the increase in its balance sheet propelling the stock market as well isn't it hard to get any straight-up economic message from either? >> you are spot on you make a very good point and i'm not going to be the person to say that the bond market is a pure indicator and the equity market is not. but what has happened despite all of the points about quantitative easing, recall that four years ago people started to

look for the ten-year treasury yield to increase. the story hasn't changed increased quantitative easing multiple in the last few months, but the people started to look for lower bond yields even earlier when quantitative easing was in effect. the problem is to try to decide or to distinguish what portion of it is due to fed action and how much of that is to expectation of slower growth and low inflation rates. and i believe the latter economic fundamentals are more important for the bond markets, sara, than they have been for equities >> let's move on california closing indoor operations in 30 counties. meg has more hi, meg. >> reporter: this is a pretty sweeping move by california's governor just announced an hour ago the entire state will close indoor operations for certain businesses including restaurants, wineries, movie theaters, zoos and museums

bars statewide being required to close all operations and then in 30 of the hardest hit counties which accounts for 80% of california's population they're going to be closing indoor operations at fitness centers, places of worship, personal care services, hair salons, barber shops and malls this, of course, as cases in california have been urging, what the governor said an alarming rate. l.a. county alone adding the most new cases in the last week of any metro area in the united states 30,000 new cases, about 8% of the u.s. total cases added in the last week. this, guys, comes as companies are making progress on the vaccine front. pfizer and biontech getting news from the fda they have fast track designation for four of their vaccine candidates essentially this is just a marker showing that the fda says this is an important indication

they will give a lot of attention to and expedite through the regulatory process people in the biotech world saying this is not news. we know that coronavirus vaccines are going to get special attention from the fda guys, back to you. >> meg, as for the california rolling back the reopening and imposing more restrictions, the point of the shutdown from the very beginning was to flatten the curve, to keep the health care systems from getting overwhelmed and hospitals from getting too crowded. is that what's happening in california >> reporter: the hospital systems are getting crowded again. and that was the point of flattening the curve, but there was an element of trying to buy time to be better prepared so that we could make sure this didn't happen again. and so there's a lot of criticisms of the fact we don't seem to be in a better place now than we were in march when this came upon us suddenly. we had time to get prepared.

>> charlie and meg, thank you very much for that charlie, to round things off, you said earlier the trigger for why value is up on growth, the economy is getting better. today that happened even though we have these headlines that meg just brought us about the economy potentially getting worse. i wonder, "a," what you made of that and, "b," what would be your top couple of value plays you think are attractive for the rest of the year >> we divide the world and the companies that are doing better in the covid environment, some tech names, some industries that will be permanently impaired by this, that maybe is office space and retailers. and then companies that will have a temporary downturn but are going to be fine in the long run and that's where we're finding lots of value. medical device companies like hips and knees people are not doing elective surgery but they're going to when we return to normal so a zimmer or a hanger. and then madison square garden, nobody is going to concerts or basketball games but they're going to again

so those stocks will be fine that's where we're finding things that are attractive back to your valuation question, i just think today was a day where some of these stocks we're talking about like goldman sachs trading at 85% of book value are so screaming cheap that they can perform decently well today. and some of these tech stocks trading 300 times earnings are going to finally run into air pockets. >> yeah, that tesla reversal, the momentum went the other way after we saw that. charlie, thank you charlie bobrinskoy, liz young, sri kumar, thank you for joining us we'll ask black rock's jeffrey rosenberg how he's advising clients to diversify their portfolio. tomorrow a huge exclusive interview, robert kaplan of the

dallas federal reserve 00.meat lk to him tomorrow a 4: p. stern here on "closing bell. stock slices.

for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. a volatile day on wall street, a huge rally in the morning and a steep sell-off into the close it was an ugly close with the dow and the s&p and the nasdaq losing almost all of their gains and then some for the nasdaq down 2%. you saw some buying of the safe haven bond joining us is blackrock

portfolio manager jeff rosenberg. he manages their systemic multistrategy fund which is rated five stars by morning star jeff, thanks for joining us. before we ask about your new allocation recommendations, just a comment on the environment that we saw today, that big turn in momentum names like tesla and amazon, the standout performance for some of the value names like industrials and financials even in the face of seemingly bad economic news with california shutting down more of its economy. what do you make of it all >> yeah, it's managing the difficult cross currents of pretty good recovery economic data, the high frequency data. it's been challenged, of course, by the emergence in the southern states of the virus. and now some headlines as to what that's going to mean. i think the turnaround is the back and forth between the good news and the bad news. i think beyond that it's really

about the level of virus spread versus policy support over the longer run so far i think the latter, the policy support is winning. but that's going to be challenged as you get more and more of the negative headlines >> and we wait for details on what another package of fiscal support looks like jeff, why is the 60/40 playbook not working anymore? >> switching to a little bit longer term question, and you're seeing this across headlines, it's about portfolio construction and the role of that 40% which is supposed to be the diversifier and the challenge in fixed income is pretty obvious we're at the zero lower bound. unlike 2008 it's long-term interest rates that are very close. you look at the affect decline and the ten-year rate during recessions, it's over 300 basis points it's pretty clear that fixed income isn't going to be able to

provide what it once did your portfolio takes on greater risk you need to consider that and accept or change your portfolio mix given the changes in fixed income ability to provide the diversification. >> has it also outperformed so much recently that it's not as good a diversifier either? >> gold is a tricky one because the factors affecting gold shift so often sometimes gold is a risk off hedge. sometimes we think of gold on a long-term basis as an inflation hedge. sometimes we think of the challenges of gold with regards to its performance versus fixed income in terms of the relative cost of carry and it's the latter, it's the persistence of negative real interest rates that helps to support gold so gold can play a role in po portfolio but it's an unreliable

role this is the challenge of these alternative diversifiers they can provide that degree of diversification, but it's much less reliable than the last 20 or 40 years of diversification that we've seen out of fixed income >> so what exactly are you telling people to do >> you have to evaluate this problem from a total portfolio perspective. you have to look at what you're doing on the equity side, look at what you're doing on the fixed income side. be very careful about substituting safe fixed income for risky fixed income all you're doing is increasing your equity risk that's not solving the problem we look at alternative forms of diversification. we have a number of strategies we look at that create diversification out of long/short equity strategies one approach of many investors think about. it's looking at the portfolio characteristics and the

reliability of these alternative forms of diversification that is key. >> jeff, of course, one of the risks is inflation what do you think of inflation linked bonds are they also too expensive at this point >> inflation is a really important topic coming out of the covid crisis because of the degree of policy intervention on both fiscal and monetary the near term outlook for inflation is benign and challenged so when you think about inflation protection, it's really the protection against an unhinging of inflation expectation. that's not happening anytime soon and so those bonds as protection are protecting you from something that is far out in the future if you have a very long time horizon, the prices you can achieve for those areas of protection are very attractive because the markets aren't seeing that inflation today. so from a long-term perspective that can be attractive from a near-term perspective it's very expensive because

without the inflation in the near term the opportunity cost to holding a position can be very expensive until that inflation really shows up. in our outlook you're not going to see that inflation in the near term. perhaps in the long run but certainly not in the near run. >> jeff, thanks so much for joining us >> thank you still ahead, record coronavirus cases in florida aren't keeping businesses away from the newly reopened disneyworld, even as the company gets close to having to shutter another park in hong kong. details on that story coming up. and as a reminder you can always watch or listen to us live on the go on the cnbc app save hundreds on your wireless bill

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thousands of visitors revisiting disneyworld in florida for its reopening this weekend despite the record surge in coronavirus cases in the sunshine state jul jul julia boorstin, the state that set records also saw crowds at disneyworld. >> reporter: all wearing masks, of course. and with disneyworld's plans to open two more of those orlando parks on wednesday, a lot is riding on disney's ability to keep operating as the covid

cases in florida spike today disney announced hong kong disney will temporarily close on june 15th as required by local government and health authorities. with disney shares ending the day lower despite a new buy rating from goldman sachs, we are told while hong kong disney is not material to the bottom line, the concern is, quote, if orlando were to shut down again, it would weigh on sentiment and would underscore the point that the recovery is longer than bulls think. saying the concern of the recovery is sooner than 2022 when he thinks we will return to a normal year for disney wilf >> julia, just a question on disneyworld. is the expectation that they'll be able to keep it open? and do they have any liability if there is some outbreak traced back >> reporter: well, look, in terms of whether or not they'll be able to keep it open, i

interviewed the head of the parks and resorts division and i pressed him on this question i think i asked him five different ways, and all he would say is they have the ability to increase and decrease capacity at the parks and really turn up or down that knob because all of the tickets are prebought. they're not going to let people in at the gate so he didn't say whether or not they would reclose he did seem to think they have the tools they need to operate in what he called this new normal even if the cases continued to be this high and in terms of liability they have signs everywhere they have rules everywhere i would guess that disney is taking every step necessary to make sure that their visitors know exactly what they're in for. >> it's a fascinating case study, julia we hope it goes well, of course. i guess the hong kong scenario shows us how it might have to turn direction again julia boorstin, thank you. josh has news on apple so, wilf, we have headlines on apple, a report saying the full return to u.s. offices is

not going to happen before the end of 2020. also saying that the retail staff working remotely as the virus, of course, has compelled the company to reclose many of their stores, those staff asked to instead help customers looking to buy products or get help online, which as we know where customers are. we should stress the company always did say they would follow the data here and try and ensure the safety and security of employees and customers. when i spoke to the ceo tim cook in late april when they last reported results, he made it clear that as his employees return to work it was always going to be in a staggered way he told me we're not going to move to 100% very quickly and even when the employees do return to work to cupertino it would be a different world of temperature checks and masks and social distancing guidelines back to you. >> thanks for that sara, i want to bring up, it wasn't because of this piece of news but we mentioned tesla 17%

intraday swing apple a much more important stock, was a 5% intraday swing it touched $400, closing at $380 so quite a big move in one of the most important stocks in the intraday move just as tech and momentum came off. i think it's important as we go into the next couple of days more days of 4% selling and those market type stocks will have a massive impact on the broader averages >> especially on the nasdaq, the best performer disney and apple were the biggest winners and the charts look the same today. straight up and straight back down part of the momentum stay-at-home tech stocks that worked so well musician and entrepreneur pitbull about whether the live

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enroll now at shopsmall.com. welcome back grammy award winning superstar pitbull a multiyear deal to distribute original content on its platform joining us now pitbull and the chairman and ceo of livexlive. thank you for joining us. >> thank you for having us appreciate it. >> pitbull, how much of a hit has it been on the music industry not having live concerts relative to much more engagement and people listening on their devices during lockdown >> for me, to be honest with you, this is what it's all about. and what i mean by it when the going gets tough, the tough get going this is about re-inventing yourself, challenging yourself,

pivoting that's what entrepreneurship is about and being creative i look forward to and really appreciate the opportunity with livexlive to give music to the world again. that really unifies, heals in the universal language i love a challenge i'm all up for it. >> how big a challenge is it to fully re-create the experience of going to a live music event how close can you get to that experience >> this will be a learning experience for the fans. it's going to be a learning experience for the artist and for a platform like livexlive. it just happens to be that with covid-19 this has created an amazing opportunity for artists to connect with their fans from a different perspective and also for the fans to connect the artist from a different perspective. i'm reporting live from one of

the neighborhoods in miami, and this is where we will be putting together the events. for us it's a win-win across the board to give the fans a great experience one way or another to feed education through livexlive, also >> rob, what is livexlive? how does it work and what have you done to pivot the business since covid-19 >> this is an inflection point we set out by acquiring the digital rights to the largest music events to jazz and as you pivot today we were always in the streaming world and have driven a massive audience streaming. today you don't have a choice. today you have to come in swinging you have to battle

the battle is an interesting battle because we're an artist first platform and what we've always said our objective is to create a brand-new revenue stream for artists for the music industry as a whole live and streaming today a unique opportunity to create that via video. with pitbull as our partner we continue to build those relationships with talent that are going to drive this audience unique and original programming never seen before that is done digitally and eventually you'll be able to stream as we've done from rock and rio and stream back to the home today we're going to be doing it, we'll have to curate and find methodologies without big audiences. we couldn't be more excited than coming off what we did with music lives which was a music festival think of it as coachella on steroids we had 130 artists, 58 hours

straight of music. we broke all the records on tiktok from what we've heard, over 5 billion engagements, 50 million live streams and this, like sports, 30 years ago when espn came along as an inflection point i believe this was happening anyway, but covid has forced everybody including us to really pivot and focus and, again, if we stay artist centric we create ways artists can participate in subscription, pay-per-view, and ways to monetize they've never had before >> 51 hours consecutive of music with 50 million or so live streams, how long did people live stream it for not the whole 50 hours >> no. we don't give the full numbers on these but concurrence, we've had average over 12 minutes of concurrence in watching overall. like espn did years ago, what

music can be as this matures and we're still in the first inning, it's really exciting to see the traffic and audience it's not just the 50 million live streams we have close to 5 billion engagements. videos livexlive and allowing content to be seen over and over again. that's a real inflex point similar to what sports was 30 years ago. >> pitbull, question for you on concerts are we ever going to see concerts the way we saw prepandemic until we get a vaccine? >> i'm sure that we'll get to that one way or another. in the meantime right now we have livexlive and will perform for the world and bringing everyone together. what they need the most, motivated, inspired, escape, have fun for a little while. that's why i'm excited about this platform. like anything in live,

everything comes full circle we'll come out of this bigger, badder, stronger hopefully to the human race, all across the world, come out more appreciate tetch of what we have going on and enjoy this beautiful short ride that we call life. >> which type of fans, pitbull, do you think this will appeal to do you think of your fans as one pool of fans and they'll subscribe or buy which ever product you put out or is someone that attends a live concert just missing out on what they like to consume for the foreseeable future >> i think this will create, i would say, an array of new fans. clearly the fans that love you and love to go to your concerts. i always play around with people from the diaper to the diaper so you're going to get from the grandkids to the grandparents at these shows. i like to do that with livexlive because i feel music brings everybody together

when you go to a concert, music allows everybody to escape and have fun i think this will be an amazing platform new opportunities for fans bring everybody together is what it's about >> speaking of tunes, did want to get, pitbull, what you're doing to help latino businesses in this country especially small business that is have been hurt by the pandemic. what have you been doing there >> we've been, basically, we have a grant with a partner of mine called jeff hoffman he brought to my attention with everything going on we needed to help the small business owners in the latin community that they were number one in the united states of america. them being the pipeline and the heartbeat of what it is in our neighborhoods, to create awareness for the latin

community and the latin culture. you can apply there for up to $10,000 of a grant that's given away to small businesses once you apply if you qualify bottom line we've been trying to do anything in any way, shape or form to help those that need it the most in these times whether it be small businesses, be those on the frontline and the f irs responders which we want to say thank you. and music putting out records to motivate and inspire them. to have a platform to perform and give them that energy and that strength to move forward and hope is priceless. i say thank you to all the fans out there and to everybody going through tough times. we must swing out of this group that battles stronger and more appreciative

>> great to hear such an upbeat message, pitbull, thank you for joining us >> we appreciate you coming up it's been one of the more surprising developments in the coronavirus economy auto sales have surged despite a steep economic slowdown including a jump last month. coming up the ceo of online used car seller shift about this demand and why he's going public this selenite grey is so pretty isn't it? wow. jim could you pop the hood for us? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires? oh yes. can you change the color inside the car? oh sure. how about blue? that's more cyan but. jump in the back seat, jim. act like my kids. how much longer? -exactly how they sound. it's got massaging seats too, right? oh yeahhhhh. -oh yeahhhhh. visit the mercedes-benz summer event or shop online at participating dealers. get 0% apr financing up to 36 months on select new and certified pre-owned models.

time now for a news update with sue herera. hi, sue. >> hello again, wilf here is what's happening this hour fried chicken restaurant chain kfc is reportedly shutting dining rooms at its company owned restaurants in florida reuters says the company has

also told franchise owners to consider doing the same in covid-19 hot spots including arizona, california, florida, and texas. in dallas thieves cleaned out a community testing site before it could even open. workers had to turn people away on what was supposed to be opening day for the testing site, but the center says it should be restocked and ready to open tomorrow. a federal judge has permanently blocked georgia's so-called heartbeat abortion law. the judge found the law violates the constitutional ve aal right privacy. the government saying it does eliminate all elements of roger stone's sentence including the fine and the probation time. you are up to date sara, back to you. >> sue, thank you. up next, a huge boon in companies going public via spac.

now online auto retailer shift is the late toast join the wave.

electric vehicles, startup fisker announcing it plans to go public through a merger with spartan energy acquisition with the combined value of $2.9 billion. the deal between the two companies is expected to close in the fourth quarter. the move comes on the heels of online used car seller shift technologies announcing plans to go public through a reverse merger with a spac an electric vehicle startup nikola going public with a spac as well. joining us for more is george harrison, co-founder and co-ceo of shift spacs are having quite a moment when it comes to raising money in the capital markets george, why did you go this

route, and what sort of risk do investors need to know about the unusual structure? >> thanks for having me. spacs are very popular these days i think it's because they allow companies to raise more money than a traditional ipo you announce the stock in a less amount of time than a normal route and the s.e.c. process after. for the company there's more deal certainty for the investor more deal certainty. it's a pretty good way to go especially in the current market >> i mean, spac is having quite a moment and second hand car sales. what's driving it? >> a few things. one is people are not doing public transportation and looking at alternative ways to get around we all thought that prices would actually fall post lockdowns but the opposite is happening, prices are up dramatically and sales are up dramatically.

in each session people transition to buying used cars versus new cars. we've had many years of record sales. in this environment you would expect to sell more. lastly people are quickly transitioning into digital sales versus in store. 40% of people said they would never go to a dealership these days because of covid. auto is the one kind of front of retail that hasn't transitioned to digital yet it's a great opportunity to help consumers buy cars >> is that going to be a permanent shift, george, when the economies reopen, will people go back to dealers and do the handshake deal when buying a car, test drive it, get in it, look at it, feel it? what's changing permanently? >> once things change, it's hard to go back plus, this is something that i think all of us expected to happen at some point what i've experienced the last

four or five months is what i would expect to happen in five years in terms of how quickly people realize behaviors will change and want things delivered to their house versus going to a store. my guess this will be a long-term trend. we'll see what happens it's going to take us a while to get out of the environment we're in today >> george, how many financing deals or how good financing deals are there available for second hand car sales? there are such attractive offers buying a new car does that drop away for second-hand cars are people buying them outright with cash? >> no. loans are a huge part of the industry for used cars and for new cars most people still finance a vehicle whether it's for a used car or for a new car it's true that they will absorb the interest rate on a new car that's not the case with used cars there are good lenders, many of them, the traditional banks and

nontraditional lenders as well that you can get loans from. shift does it all digitally. you go to shift.com and apply for financing completely online. no human having to engage with you or any papers to sign and can you get a loan digitally it's actually a really amazing, simple experience for a consumer today. >> george, thank you for joining us >> thank you. cauliflower sales have been red hot over the past few years gd one restaurant is planning toive the vegetable a starring role on its menu the details when we return futur. surprise! we renovated the guest room, so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement.

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welcome back don't call it a come back. chipotle testing cauliflower rice in 55 locations in colorado and wisconsin. this comes after lifestyle bowls last year into green free consumers maybe on a paleo or keto diet. the new option consists of grilled minced call uliflower instead of white or brown rice it will cost $2 more a bowl. what's weird is i started my day, wilfred, talking about cauliflower with joe kernen who likes cauliflower chips as a

potential healthy alternative. i give a lot of credit to trader joe's which has bags of cauliflower rice and cauliflower pizza crust which we use which is very good and cuts down on the carbohydrates. >> i heard the conversation. i didn't get the take away that he loves them, he hates them less than other healthy alternatives i get your point. >> there's demand. >> all sorts of demographics. up next, it was a wild day on wall street the dow giving up 563 points of gain have a look at tomorrow when we return we're always here to help with fast response and great service and it doesn't stop there we're also here to help look ahead that's why we're helping members catch up by spreading any missed usaa insurance payments over the next twelve months so you can keep more cash in your pockets for when it matters most and that's just one of the many ways we're here to help the military community find out more at usaa.com

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phil lebeau with a preview of delta's results. let's start with you, phil. >> reporter: delta when it reports tomorrow morning before the bell, sara, is not what we're going to say about q2 earnings they're nasty, ugly. it will be that way for every airline. the expectation is loss of $4.12 a share. whether they're above or below, it doesn't matter. what they say matters about daily cash burn and what are their liquidity plans. we're talking with ed bastian first on cnbc tomorrow morning at 7:10. it's not about g2, guys, it's where they are and what they're expecting the rest of the summer. >> got t. phil lebeau. look forward to that wilfred, what do we expect from the banks, the quick and dirty >> i have to say never have we seen a bigger focus on the commentary as opposed to the numbers. only 13 days since the quarter ended but so much has changed since then for the numbers there will be

many things to watch provisions have risen again in q2 more than in q1 on the positive side, how big will the trading revenues be probably very big expectations sara as we've learned in the course of this show, economic earnings reversing trend, we will want to hear from the bank's management what that means for the outlook. the numbers might be all right and might see some gains perhaps after the numbers come out and we'll focus in on the tone the swing factor is important. will banks say this is a game changer for our outlook for provisions or outlook for earnings will they say this was already baked into our expectations? we'll look forward to that, 6:45 to 7 a.m. >> and, again, it's not just about the health of the banks which the bankers continue to come out and say we're in a good place, it's really what's going on with their clients and what's going on with the broader economy in terms of the credit losses that will be interesting. >> absolutely. >> in terms of the market,

wilfred, what an interday crazy reversal we saw. we saw post pandemic highs for the s&p, for the nasdaq which reached an interday record high and, boom, we lost it all. we had an ugly close we got more news in terms of california rolling back reopenings and a momentum reversal for names like tesla, amazon, microsoft that have been hot, hot, hot and totally went the other way. the question is is that a start of a trend or will those still be the places you want to be in this uncertain market where covid-19 is still very much with us and we continue to see rising case numbers in this country >> i undersold it. i said tesla had a 17 interday mover. it was 19% apple 9% interday swing. if mike was here he would have pointed to the fact that we had a big selloff and a big spike in the vix. the vix rose to 32 it was up 17% or so today. that's always a warning sign people look out for.

oil fell we also saw gold rise on a day that we saw equity selloff definitely a big set of warning signs coming out only one day we hit interday highs today. we should keep that in mind. >> that's what he would say. it was one day and we're coming off a strong week. keep it in perspective. >> i hope he's not watching. "fast money" starts now. >> so predictable. "fast money" starts right now. tonight's trader lineup, guy adami, bono, ice sin why the pop in pfizer on positive vaccine news may be overdone plus, disney world reopening the doors in orlando we will talk to one adviceor there on opening day you loved it so much, we are bringing it back send us your questions, we may answer them live on air. we gibb with a major market reversal closing near the lows of the session. th