>> no. i think a lot of this is really with us and as we were talking about the airlines there, me list yashgs you thi melissa, you think about whether travel will come back in a strong way i haven't been on an airplane since late february and i don't anticipate that i'm going to be on one by choice any time for the remainder of this year it is really a different world and environment that we're playing in have a good weekend, melissa >> you, too. "closing bell" starts right now. welcome to "closing bell." i'm wilfred frost along with sara eisen stocks bounced around the floot li flat line. let's take a look hat what driving action netflix is down sharply. though the nasdaq and tech is outperforming today. it is reversing relative underperformance that it has suffered down 1% for the week

consumer sentment dipped in july with new data continues to show strength in the housing market another record breaking rise in covid-19 cases across the country. stocks though at session highs with 59 minutes left of the trading day and of the trading week, sara >> yep ahead on today's show, more positive data on the home front as you mentioned the real estate market continues to hold up despite the economic down turn. we're going to discuss whether that strength can continue with the ceo of red finn, what he is seeing in different markets across this country. plus, tech elites are pouring money into the biden campaign. we'll speak with silicon valley congressman about the new donation that's are helping to close the campaign cash gap. and, of course, the stimulus question let's focus in on the big stories we're watching in if the final hour of trade. bob pisani tracking the market action on a volatile week of trading. meg terrell is looking it at the big one for biotech stocks trading at the highs and kate rogers has some fresh

comments from treasury secretary on the ppp small business program. but bob start us off with the broader market here. >> it's been a choppy week characterized by rotation. the s&p 500 is up 1% that is good news. we're still up about but that rotation, there is not a lot of conviction that it is going to last long let me show you what i mean. this is rotation old school cyclical names like transports and industrials, small caps which are often bank stocks, energy, all up technology, the growth sector to the down side. s&p 500, we've been hitting resistance of 3230 why is that important? that is the old june high. that's where we started the year on january 1st, 3230 or so we can't get over that if we did, you'd hear a lot of people talking about it. the mega caps had a problem this week they're being used as a source of funds to buy the deeper cyclicals. that is healthy for the markets. amazon is down 8%. the there is a total round trip

in the last few days the momentum, guys, won't tolerate any weakness they get out and take profits and why not? there's been plenty of profits to tachke finally, everybody is at home. they're painting, plumbing, hammering, installing air-conditioners, they're putting in pools new highs this week on sherwin williams and home depot. lowe's also hit a new high as well this week everybody have a happy, healthy safe weekend >> you too, bob. the dow is still underperforming the rest of the market it is down .2. the broader market had ups and down this is week. biotech is on a role meg terrell on what is driving that particular sector meg? >> hey wilf. some biotech stocks, particularly the smaller, younger companies that are working on vaccines for covid-19 are seeing crazy moves today if if you check out maderna,

inovio, check out the stocks they're all up about 10% or more today. there is no specific vaccine news going on today. it's been a big week the we saw the full phase one data set earlier in the week but today no news driving these names necessarily. i was talking with someone over at jeffries. he notes that there is just an increasing amount of attention being paid to the stocks maybe short covering it is a heavy retail name. the most popular stock right now on robin track which tracks the holdings of robinhood users. guys, this performance really boosting the performance of the ibb and biotech etfs, particularly the xbi both of those indices hitting intraday highs all time intraday highs today. the xbi, of course, is equal weighted and it's really influenced by stocks like novavax and maderna.

so a lot of exuberance right now in this space. guys >> meg, do you think with he can have a vaccine it is interesting to see so many of them racing higher. you know this better than i know this but when we talk about other drug innovations, uche two are competing to get the certain cancer drug, whoever gets it first wins the other one tanks. at the moment, they're all rising together. >> yeah. i think most experts expect and hope there will be multiple vaccines that get to the finish line a bet on one is maybe a bet on multiple vaccine candidates. now for some companies, getting a vaccine to market, he might be seen as a validation of the rest of their pipeline of vaccines. so one could expect that would lead to better financial success down the road.

i would completely agree of. >> as far as health care stocks a broader sector, they're doing well today second best performer. not so much for the year what's the thinking going into earnings around how much of the core business is going to be hit by the focus on covid-19 and the fact that people haven't been getting elective surgeries or their normal treatments or medications and prescriptions because of it? >> yeah. we got a really interesting initial look at that yesterday with j & js earnings they beat expectations and raised guidance for the year because the medical device business didn't drop as much much as they expected. they thought that medical devices because people were putting off surgeries were going to be down 40% to 60%. they were only down 33%. they raised guidance for the year so this is not a category that is doing great but if they do better than the terrible expectations, the stocks do okay >> and finally, meg, as we look

to next week, big week of earnings also the companies, who do you hope to hear from next in terms of who is on the cutting edge of treatment options and vaccine options and their studies? >> the next news we expect to get is on monday from astrozeneca. we no he that is coming on monday we don't know what time yet. but a lot of anticipation for that and then otherwise, in terms of earnings looking ahead to novatis and biogen, so other companies in the biotech world the but the next data we are expecting monday >> got it. meg, thank you meg terrell. turning to washington. fresh comments from treasury secretary on the ppp program kate rogers with the latest. kate >> hi, sarah secretary and administrator taking questions before the house small business committee today on ppp rounds one and two, what worked with the program and

what didn't. treasury secretary says he does support repurposing the more than $130 billion in aid that remains for businesses most in need >> the administration supports using the existing money and topping it up with some additional money and that will be discussed and allowing for a second payment to the businesses that are especially hard hit. i think this time we need to have a revenue test and make sure that money is going to busine businesses that have significant revenue declines that is something that congress didn't have in the first provision. so we have to make sure the businesses that are especially hard hit, particularly small businesses and put in certain safeguards >> the committee also focused on a lack of information regarding access to the program by both minority owned businesses and women owned businesses they also pushed for more forgiveness guide ens.

there is a lot of questions that remain by forgiveness. it is coming in august back to you. >> so what's the appetite on capitol hill for doing more with ppp. that something that he's going to be able to get passed how is it going to look different at all given the fact that, you know, at first they didn't have to disclose it and then they have to disclose it. >> definitely lessons learned even from round one to two the appetite is very great to get something done majrle with a keen focus on business that's were underserved in the first wave of the program. minority owned businesses, women owned businesses, smaller businesses with under 20 employees and then also secretary mnuchin talked about hotels and restaurants they asked congress for a specific restaurant focused aid package just because that industry has been so decimated i think whatever we see next time around will be more focused in terms who have this is serving and how.

>> clearly if this gets extended, thats a good thing as we stand, there is still money left kate, the other point which we were e-mailing about during the week that brian moin happen of bank of america said on his earnings call that of the money they distributed in terms of ppp loans, their estimate is that only 40% of that has been spent by the businesses and 60% is still sitting in the bank accounts of the businesses so just in terms of the priorities that the administration and congress should have of the measures in the first act, perhaps it shouldn't be the highest thing on the list but rather other factors like extending unemployment benefit should be higher on the list of priorities >> certainly and other stimulus definitely also came up to -- throughout this hearing not the one that's got in the loans and spending them. people who might have been locked out of this program

are -- this program didn't serve, they'll be the ones that i think lawmakers want to see more of a focus on this time around one more thing that they talked about is forgiveness and broad forgiveness for loans below $150,000 there has been somewhat of a push for that. he said smaller loans he would consider, you know, more broad forgiveness for. guys >> kate rogers, thank you. after the break, more retailers are taking matters into their own hands and requiring customers to wear facemasks. the we're going to ask an analyst how the mask debate could impact sales you're watching cnbc on "closing bell." since my dvt blood clot... i wasn't sure... was another around the corner? or could things go a different way? i wanted to help protect myself. my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot. almost 98 percent of patients on eliquis didn't experience another.

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welcome back all states and counties battle over mask mandates major retailers are stepping up today. a growing list of companies requiring shoppers to wear face coverings. how is this going to impact business joining us our analyst at deutsche bank. thank you for joining us >> yes, good afternoon thank you for having me. >> do you think the request by a

retailer to wear masks lowers or increases people's interest in coming to this does it give them confidence >> look, i think ultimately retailers are taking actions that give both their employees as well as customers the confidence to come in and shop as we know, traffic has declined on a year over year basis now for the last, you know, four months since this pandemic began. and ultimately while some people have found other ways to shop by doing so online or curb side pickup, ultimately going back into the store has been a hurdle for many because they don't feel safe so our view is that masks certainly over time will make customers feel more comfortable coming back and shopping in person >> what about the spike in cases that we have seen? is that hurt people's confidence to go to physical stores

>> yes and we've seen that in the data we track among retailers across the country despite in the states like texas and florida, arizona and california we saw traction decelerate for a few weeks. macy's highlighted that they saw 15 point deceleration in their sales in texas over a few week period ultimately, however, we have actually now seen traffic start to pick back up and we think that does come with some of the mask mandates and the fact that people now, you know, are taking more safety precautions. and i think that's getting people out and about and honestly, as you think about people not going out to eat, it actually seen real benefit for the grocery space.

companies like walmart and target, a company like sprouts who really benefitting from people. >> we d. sid see consumer sentmt we had better retail sales reports including the one this week how do you think about that in terms of the income gains we've seen as a result of the economic and very generous stimulus we've seen land in people's bank accounts and how sustainable that boost is in sales >> i think you make a great point. as no question retail sales has been stronger than we would have imagined given all that is taking place in society. and so ultimately, we do credit stimulus as a major factor of the robust sales we've seen in

specific categories and we think about home and furniture in particular and some of the bigger categories. we think it has been stimulus led. but we also do have to note that some of this has come from a reallocation of spending from areas that were no longer participating in to the same extent so families who have postponed trips, those are, you know, not attending sporting events or concerts or broadway shows, those dollars are also aiding the retail spending that we've seen but we're really concerned as we go out of the month of july and look into the fall and we have a lot of question marks on the sustainability of the strength, we don't know what the government's next steps are. and obviously there are big question marks around back to school season and even the holidays >> paul, where are we in terms of retail bankruptcies are we past the peak or is that

about to come? >> i think it's more to come unfortunately. major retailers filed bankruptcy but there are others who are holding on and ultimately we probably still have other names that we'll be adding to this list. it's been a very difficult environment for a lot of mom and pops in particular names that we don't know but that have been severely impact bid this pandemic. and you'll see, you know, a lot of market share shift. therefore, go to some of the bigger, stronger better liquidity retailers like walmart and target who will continue to take share >> that is what i was going to ask. which public companies stand to benefit the most from the

competitors going bankrupt right now as you look across your universe and give us your favorites that aren't the walmarts and targets that everybody loves right now because they're essential, allowed to stay open and well capitalized. >> absolutely f we think about apparel space, we really like the off price sector tj max, for example, has a number of banners including home goods. we think that banner has been really strong. ross stores and burlington also are a key market share takers in our view in the apparel foot ware and home space. we would also highlight from a dollar store standpoint that is still relied on from a convenience standpoint and companies like five below and dollar tree that provide that wow factor for a low price, and we also highlight a company like ulta beauty we think ulta as we think about a recovery in 2021, makeup will

make a comeback. and we know that ulta beauty will be there to take the substantial market share along the way. >> thank you for joining us. >> thank you for having me we're down by the way about .25% on the dow but up 0.4% on the s&p 500 and nasdaq with 40 minutes left of trade. up next, netflix taking a leg lower on the back of earnings. there is a message for customers on last night's earning call >> we want to have so many hits that, you know, when you come to netflix can you just go from hit to hit to hit and if you never have to think about any of those other services you know, we want to be like your primary, your best friend, the one you turn to. >> some analysts weren't too pleased with last night's results. we'll get word on the street particularly on netflix when we come back. get an exceptional offer at your local audi dealer.

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we have breaking news right now on schools in california we have the details. >> that's right. california governor gavin newsom is in the middle after press conference outlining parameters for schools to reopen in california and here are the guidelines. this applies to the 32 counties that are on the state's monitoring list and once the counties have been off the monitoring list for 14 consecutive days, they can physically reopen in person learning schools that don't meet this requirement would have to begin this year distance learning. again, these are guidelines and parameters some of the guidelines are, masks. all students and staff should be wearing masks and students that are third grade and higher, students second grade and lower recommended to wear masks. but that is not mandatory. staff must maintain a six foot distance between each other and do things like symptom check, hand washing stations,

sanitation, quarantine protocols and testing. there is a requirement to test staff regularly, state contact tracing is prioritized in schools. this press conference does really target the 32 counties that are on the state's monitoring list. san francisco was just added to that monitoring list earlier today. and the san francisco mayor just held a presser as well saying that the city will be pausing all of the reopening plans indefinitely they also will be rolling back their reopenings of malls as well as nonessential businesses. back to you. >> thank you very much certainly making it look like school reopenings going to be tricky. pretty strict requirements there. let's get to word on the street. shares of netflix falling on the back of lower than expected subscriber guidance. analysts on the street are weighing in on the back of that. credit suisse downgrading to neutral from outperforming lowering the price toorarget to

$525 analysts at evercore saying the earnings are adding to the results were not good enough relative to exuberant expectations heading into the print which drove netflix shares to all time highs. that's back at the $570 earlier this year. meantime, jeffries encouraged reporters to use the stock and say we will use any near term weakness as an opportunity to accumulate shares as we set down 7%. sara, i was just discussing in the break a little bit that 7% off the back of 63% year to gate gains isn't that big but just in the scale of 2020 for any stock isn't as big as it used to be i think in past quarters in 2018 and 2019 with netflix, if we seen them sliding 7% to 10% after an earnings report it would have been bigger news than i think it is today. as the share price shows over the last couple years, it's been here before where it's tanked after earnings and then over the

next month or so rallied past that level. >> right >> i don't think that analysts are convinced this is a change in the narrative or the story or the thesis for netflix i think it speaks to a lot of the setup as you mention which is very strong i was tough to beat high expectations and to the forecast which came in a bit weak. to put the numbers in perspective, 26 million subscribers added in the first half of the year, the entire 2019, they added 28 million. obviously it was a blowout in terms of numbers they're seeing. is that going to weigh on the multiple going forward everyone is staying home binge watching >> just in terms of the beat they had 10 million or 8 1/2 that were expected they missed on eps and with all of those extra subscribers, all of that extra

revenue and money they continue to spend and they grow into this amazing share price performance. they gloss over that because of the focus on the guide for q-3 there is enough interest in the market to stay at home stocks based on momentum as opposed to valuation. one day it's going to grow into share price gains that they over the last still ahead on the show. it's been it's been all smiles this week plunging mortgage rates give some juice to the real estate market we're going to discuss the regions that are seeing the most strength with red fin ceo next and speaking of rates, we have a check on bonds for you. yield a little bit higher today. not doing a whole lot. we're still looking at pretty low yields

the ten year note yield .62% so a little selling of bonds into stocks. but again, not much. still paint the picture of a weaker economy ceaiy anrtnlth the stock market has. "closing bell" will be right back

29 mibz left of trade. the u.s. reporting a record number of cases yesterday. more than 77,000 in just one day. the u.s. has more than doubled the coronavirus daily case count

since late june when the u.s. was reporting roughly 30,000 new cases per day. florida, texas, and south carolina all reported record case numbers yesterday and texas and south carolina reported sickle day death records as well. south carolina reporting 69 deaths and texas reporting 129 rbc taking a look at hospitality bed -- excuse me, hospital bed occupancy in the hot spots and new notes today. hospital beds occupied by covid-19 patients in arizona, florida, texas and california are continuing to rise rbc warning that back in april mortality rates in april spiked when the hospital systems begin to get overwhelmed the underlying trend continues to be much lower mortality rates than we were seeing during that new york-new jersey spike in april. obviously we're watching it carefully to see if if younger people start infecting older people and therefore the mortality rate goes up and the hospitalizations are a signal of that but so far, fingers crossed, the

numbers have looked a lot better and a lot of people on wall street are paying attention to that as well. >> we certainly hope it stays that way we'll discuss with scott gottlieb in a little bit > chaicago's mayor unveiled a new plan students will be in groups to make it easier to keep them isolated major league baseball's shortened season begins a week from today but there are already some rather encouraging players stats in the latest round of covid-19 testing, only six of more than 10,000 samples came back positive that is down from 12 last week and captain tom, the 100-year-old world war ii vet who raised $40 million for britain's national health service by walking 100 laps around his yard took a shorter

walk today at windsor castle to be knighted by queen elizabeth with the traditional sword tap it was a rare public appearance for the 94-year-old monarch who has been in seclusion since the pandemic struck the uk in march. captain tom is now captain sir tom. >> i love this story, sue. we e-mailed about this over the last few days. and the last day not only is he being given his investor tour which means so much to him, he is getting his own private ceremony in the windsor castle i think it is well deserved. also as you showed the pictures, lucky that isn't his garden. 100 laps would have been tougher if he lived there. >> it certainly would have when we were cutting this tape and i watched it, i literally started to cry you know, he is raised not only millions and millions of dollars but i think he's raised everybody's hopes. >> absolutely. >> he's such an inspiration in a

world that right now is in such a dark place with covid-19 and he said i have a quote from him, he is absolutely overawed by the fact that such a high award to get from her majesty, the queen. what more can anyone ask or wish for than that? it has been an absolutely magnificent day for me >> well, there we go congratulations to him and, sue, thanks for bringing us that. we have 25 minutes left in the session. here's where we stand. we are a little bit lower on the dow. now improving on both the s&p 500 and the nasdaq up about .5% coming up next, as i mentioned, we'll talk to the former fda commissioner scott gottlieb about the latest developments on the eaenfrt trtmt onand reports that any immunity may not last very long. we'll be back in a couple minutes. is the salmon wild-caught? she only eats wild caught.

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23 minutes left of trade utilities leading the s&p 500 higher energy is lagging. this is a last commercial break we'll take before the close. up next, uninterrupted coverage of the final minutes of trade when we go inside "the market zone." and as a reminder, you can always watch or listen live on the go on the cnbc app you're first. first to respond. first to put others' lives before your own. and in an emergency, you need a network that puts you first. that connects you to technology to each other and to other agencies. built with and for first responders. firstnet. the only officially authorized wireless network for first responders.

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some hopes for that earlier this month, the developer said they were encouraged by the immune response they had been seeing so far. that vaccine candidate already in large scale phase three human trials and the stock is up about 6.25%. joining us no you is the former fda commissioner dr. scott gottlieb he sits on the boards of pfizer and alumina. in terms of the case wez report every day, is there anything you're seeing in the data that shows a peak or that we're getting close in any of the hot spots across the country or does it justin to get worse and worse? >> not yet i think we're still going to have a way to go probably a couple weeks, two or three weeks until we start to see some peaking in the infection just starting to see new cases declining in some of the states like arizona but that might be more of an indication that the state they're hitting upper capacity on the ability to do testing you might be seeing them exhausting their ability to do

testing. mo hospitalizations are likely to hit 150 hospitalizations that puts us back at the peak of the hospitalizations during the last wave of the hospitalizations when the epicenter was new york city. >> we're still nowhere near there. i think we're topping 800 deaths the last few days. during the peak in new york, it was 2,000. is there any hope because of the skewing of the age and the knowledge around treatment and methodology that we won't get back to the kinds of mortality numbers here >> in hospital mortality has absolutely declined. we're not able to measure it yet. it will take studies to, you know, sort of ascertain what the mortality is there is no question it's come down in hospital mortality during the last wave of the epidemic is 20% for all patients admitted, 35% for patients admitted to the intensive care unit. i wouldn't be surprised if that is cut in half with the

introductions of other medicine and reluctance to intubate patients, the use of remdesivir and other innovations and care we used. we reduced the number of people going to succumb to infection as a percentage of those admitted to hospitals if we end up infecting a lot more people and admitting more people to the hospitals and does look like this wave of the epidemic is going to exceed the number of cases we saw in the last wave, some of the gains we have made in the improvements in medical care will be offset by the shear number of people that get admitted to the hospitals. right now we hit 977 deaths yesterday. likely to eclipse the 1,000 mark that we hit last may hopefully we won't see the numbers we saw at the peak of epidemic in new york city. we've done things like try to protect nursing homes and other settings where we have a lot of vulnerable people. hopefully people more vulnerable to the infection aren't going to be infected the same rate that they were during the last go

around >> of the three data points, hospitalizations and deaths, which one should governors or mayors be most focused on as they make their decisions about whether to reopen or reverse economic policies? >> we have to watch hospitalizations the question of whether or not you can reopen is going to turn on do you have the capacity and medical assistance to deal with the epidemics. that turns on the hospitalization rates. the hospitals in states like california and texas and florida have tremendous capacity to expand the number of beds. i don't think that they're at the upper limit of what they can do for a little while yet. when you look at smaller states like arizona, alabama, south carolina, you have to be more worried about the states the states have dense epidemics. they don't have the same residual hospital capacity and moving patients around between states is very difficult the other state we need to keep an eye on is georgia georgia looks like it mate be at an accelerating pace in terms of the mounting number of cases there. and that can be another

epicenter spread pretty soon if they don't get that under control better >> yeah. fighting the mask mandate as well i want to ask about new york governor cuomo announced this afternoon that all parts of new york are going to be in phase four on monday including new york city. so things like the zoo can open up it's mostly outdoor activities movie production can begin again. h howied are you abo how worried are you about those place that's crush the curve cuomo warned many, many times that we're vulnerable. >> look, there is going to be a resurgence at some point in the states that brought the infection rates down it's inevitable there is so much infection around the country you're going to see reintroductions into the states. by bringing the infection rate down and getting testing way up, they have the capacity to o identify the outbreaks early as we get into fall and winter, there is a risk that we see an epidemic across the suts utes

like we see with the flu the epidemic starts in one region and spreads across the entire united states i don't know the states as we get into, you know, normal flu season are going to be able to keep up with all the covid-19 infections getting introduced into the states. remember, everyone that presents with a less prespiratory illness going to have to get ruled out with covid-19 first. they're going to need to get ruled out for covid-19 that is going to overwhelm the system we face a lot of risk heading into the fall and frankly i think manufacture us hope we're at a better point right now and not have this much infection that we're bringing into the fall >> dr. gottlieb, quickly, how incrementally positive was the data we got from maderna earlier in the week? >> positive. every card that we turned over on the vaccines has demonstrated that it's possible to develop a vaccine construct against this virus. i think we should be reasonably optimistic we'll be able to come up with a vaccine in a, you know, really rapid time frame by historical standards

hopefully early 2021, maybe late 2020 for less population. >> dr. gottlieb, thank you very much >> thanks a lot. >> 12 minutes after the trading day. we're now in the "market zone. commercial free action heading into the close here to break down the crucial moments of the trading day keith bliss and interactive brokers very good afternoon to you both let's kick off with the broader market dow and s&p 500 higher for the week the nasdaq on track to finish the week in red for the first time in three. the nasdaq 100 down 5% and the s&p 500 is up 1.4% or so we have net-net about 3% gap between the two. slight reversal of that today. so the nasdaq just being a little catchup but the theme of the week, definitely rotation out of tech and into some valiant names. does that make sense to you? in a week we haven't necessarily had great macro data and we

haven't had a bullish outlook from the banks >> yeah. it does make sense to me wilf if you look at the sectors outperformed since the beginning of the outbreak here, i was just remarkinging as you were talking to dr. scott gottlieb, it's been four months we've been in lockdown in new jersey it seems like four years tech is really accelerating. we've seen that in the broader markets and nasdaq it makes sthaensense that cloud, the stay at home trade that got ahead of itself. rotation out and back into more normal names or neutral names, shall we say, cyclical names that are beaten up substantially over the last three months, that trade makes a lot of sense to me i do think that just given the way the money flows have been happening, you saw black rock reporting how much came into the etf. we'll see tech as well as health

care start to rally back up. there is such dominant forces in the marketplace these day. >> steve, where are you on tech? is net flicks a warning shot in the beloved hot stocks with great expectations and crowded positions? >> yes i do and i don't want to make sooch of it. netflix is somewhat idiosyncratic. but all these stocks are priced for perfection and so if you get earnings that are not perfect, the market is going to penalize you:that means you're still up a long way depending on when you have -- when you put the position on but if you're getting into a new position now or think you're overweighted, earnings season tends to be a symetric so, yeah, netflix probably should be a wakeup call saying am i overexposed in some of the

names? they could be susceptible. they're priced so aggressively >> is that just a short term tactical trade that is just ran up too fast, too far too fast? if you're a long term investor, stick with it. netflix has had stumbles like this and so have the other red hot faang stocks as well >> well, again, i want to be sort of case by case about it. in most of these situations, the valuations are so high that it's hard to -- it's hard to say you -- that you should be adding to positions on these -- on such high valuations which is why the most highly valued stocks underperform this week it's a bit of catchup. can they sustain -- can they sustain the earnings groeblg can they sustain the revenue they're expecting. there is a huge revenue on the stability.

>> one of the hottest spots of the market this year, cloud stocks, they've been following back a little bit this year. josh lipton has details. >> it is a hot trade that is losing steam here. that is the etf that tracks those cloud names. it is down about 6% this week. this is the worst week since mid march and set to snap a four week winning streak. among the hardest hit cloud names this week, salesforce, amazon, drop box, adobe and docusign this comes after a big run with the etf still up 75% from the march lows ahead of the earnings season, some investors are betting a smart time that books and profit here, guys back to you. >> josh lipton, thank you.

keith bliss, with all the cloud stocks of the year, would you go back in on this debt >> i will be buying right now. and we're seeing in broader tech right now. netflix. you know, is there a traditional metrics that have not worked for a long time. we look at the price to earnings multiples. we just shake our head in disbelief. yet they keep going up think of the demographic trends that we're seeing around the world not only here in the united states but certainly covid-19 has now accelerated that thinking and the trend. more working at home, more connectivity, more from remote locations, more working on our mobile devices and cloud stocks, you know, whether it is fox or sailesforce or the big network providers, they're going to benefit yeah, i think it's just people taking money off the table a little uncertain we're turning side ways for some time let's get through the earnings season we have 1,000 companies reporting in the next three weeks and let's take stock of

what is happening. >> we know netflix has volatile news after reporting subscriber numbers. what if we got an everybodies miss from apple or microsoft, one of the giant tech companies wochlt that derail the whole market in a way that netflix hasn't done today. netflix hasn't derailed the tech sector which is roughly outperforming today. >> yeah, my suspicion is i think you'll see selling into that if they were to have a big earnings miss amazon and apple, they are tech names per se but they're also high retail names. they touch a lot of spaces inside of a retail world that signals to people that there is spinning being pulled

back i think any pull back on the earnings names is a good opportunity to go back and buy more >> they're looking at how heightens tensions may impact sectors. ravel laur ralph lauren is vulnerable in the aerospace, boeing is at risk the firm predicts they'll not place or announce any large max orders unless the u.s. gets china more trade concessions but one sector that may weather the storm is airlines. names like united, delta and american will grow service between china and the u.s. and that growth may transcend political disputes between the two countries. steve, do you think these elevated china tensions we've seen over the last couple of weeks in it particular this week are being underpriced by the market i mean the chinese market has fall thn week 5% but that's off a tremendous run and the u.s. markets seemingly shrugging it off over the last

month as a whole >> i think the markets -- the u.s. markets tend to focus on china when it is convenient. right now it's inconvenient to focus too much on china because we've got our own domestic issues to be thinking about. the markets are consumed by ideas like fed liquidity and fiscal stimulus. and so china sort of an inconvenient outlier at the moment don't get me wrong, the so much of the growth that we've seen as a result in in the u.s. is a result of globalization and trade with china i think it's unwise to overlook the theme in the longer term right now the market is in its own little world here and it's focused on the fed and focused on congress and so to that extent, you know, the china worries, the hong kong story was essentially a nonevent here despite it being a very major turn around and a very major city the u.s. market can put blinders on and i think it is right now

>> it seems like there is it a lot of that going on, steve. a lot of sort of hope and brushing aside worries it's not just u.s.-china there is this expectation that congress is going to get it done on more fiscal stimulus and more than a trillion and it's going to be a enough there is a thoep that if biden wins and a democratic sweep he won't raise taxes even though he says he's going to raise taxes seems like there is a lot of the risks being brushed off. this is focused more on doctor more on greed than on fear the fed balance sheet is down over the last month and a half they have to do something. right now the spread we're talking about is $1 trillion or $3 trillion. that would get me fired in an instant. having a market that wide.

i think you hit it on the head, sara >> let's hit blackrock it's moving higher today in the session. a beat on earnings and rev knee for the second quarter there the firm's quarterly looks profit rising more than 20% investors flock into bond funds amid the stock market rallies. they're up 50% mossively outperforming the broader financial sector keith, do you like it? >> i do like black rock because they capitalized and really executed very well can you match up and buy a section of the s&p 500 for literally 17 basis points which would, anybody counting money that, is 170,000 for $10,000 worth of trading so those are the products that they've been rolling in for several years and blackrock executes on them very well

and they accumulate assets and that business, the guy with the most capital sitting inside of his vault wins. that's why black rock is performing so well and why they performed well in the midst of all the crisis and noise we've been doing >> impressive numbers there from black rock we have one minute left of the session. and we are higher by about .3% on the s&p 500 the nasdaq composite up by 0.3%. the dow is lower by .2%. you can see it's been a choppy session. a bit of gains at the start. we were up by 70 points or so at the start of the session down about 115 points at the low. splitting the difference there in terms of the s&p 500 sectors, defensive utilities and real estate lead the charge health care and also up about 1.4% the bottom is energy and financials banks for the week ending the week essentially flat.

down today by about 2% so giving up a lot of the gains this week. but not particularly encouraging to see that cyclical sector after a number of beats on the top and bottom line and the week flat or slightly lower even down 0.3% there the gold is up 0.6%. dollar is soft by .5%. big gains in the euro. at the close, s&p 500 is up 0.3% that's 1.3% of gains for the week the dow slightly lower the nasdaq slightly higher >> and that's a wrap on the week welcome back, everyone, to "closing bell. if you're just joining us, i'm sara eisen look at how we finished the day. the dow only loser of the bufrnl it only closed down 62 points. the biggest drag is goldman sachs, boeing and j.p. morgan. s&p 500 up .3% utilities, health care and real

estate took us there energy, consumer discretionary is the worst performers. for the week overall, we got about 1.25% gain for the s&p 500. and underperformance for the nasdaq take a look. it finished up .3% and for a change, technology was one of the worst performing sectors of the market this week. in fact, it was tech and consumer discretionary right at the bottom of the pile along with communications services doing a little better lately continue to see this rotation into the places and the market that weren't as loved as the money moved out of tech. the housing market is red hot. many americans flee cities amid the coronavirus crisis coming up, we'll ask glen calman about how long that can last with so many americans still out of work. but joining us to talk about the market today and for the week, iq capital usa keith bliss is

still us with. interactive broker steve sosnic here as well if you look at the underperformance of the nasdaq that, stands out for the week. the s&p 500 is up 1% is this rotation that's going to continue after the nasdaq had been hot, hot, hot leading in? >> we have been looking for that we expect to see a rotation come around what most of our clients are asking us about in the face of the choppy markets is what should they be doing less so looking specifically around where are we with the tech stocks? how does thim pas impact me andt should i be doing? we've been really focusing and looking at two things, one, protection we have to build an insurance. we're looking at stressed

assets i was at lehman in 2008. i can tell you the funds are picking up the lehman bonds post bankruptcy and pennies on the dollar, did fantastically. how can we position our portfolio accordingly? >> keith bliss, just look at the week to date performance citigroup, wells fargo, bank of america, u.s. bank core ending the week lower by 2% for 3%. you are concerned when you see that i think the regionals and the kmupt banks are probably tradable we'll have a tough road to hoe going forward. you have business clients that are still suffering. they're raising their reserves they're anticipating the

chargeoffs coming. the interest margin is still not there. we live in a negative real interest rate environment. there is merging activity on the private side, i think it will be tougher for banks like wells fargo that have a large retail base they will capitalize on what is happening in the mort fwgoth trend. i'm not sure i would be in this sector for the remainder of this year they have a unique view and the bank accounts and credit card spending this quote wilfred stood out to me the most. from the citigroup ceo, i don't think anybody should leave any bank earnings call this quarter feeling like the worst is absolutely behind us and it's a rosey path ahead.

this zant sound -- that sounds pretty pessimistic steve, what does that mean for the rest of the earnings season? >> i think for this earnings season it it doesn't tell that you much the expecttations are so far across the board there is so little consensus it's too what good and bad is. i think it bodes poorly looking out a couple quarters because the banks are the canary in the coal mine. if jamie diamond and these people are putting aside 28, $30 billion or more in terms of loan provisions, there is a lot more to come down the pike. the loan loss reserves are not going to be applied to the mega caps dominating the indices. but i think this does not bode very well for the economy as a whole because these guys have

the best -- the best read on the pulse of the economy and they're telling you the patient is not all that healthy >> where do you stand on the u.s. banks >> i agree with my colleagues. it's a big signal if you have the huge loan loss provisions. you add that into a very, very accommodative sense. we're seeing policies we've never seen before. we're about to see another stimulus program i don't know if it will be north of a billion dollars it is something to worry about and that's not the other uncertainty. the banks are signalling uncertainty but we have elections coming up. talk about a big level of who knows what is going to happen? what is that going to mean for stocks and what is that going to mean for how we're looking at our long term outlook? likely we'll see tax rates change we'll see a repeal on the tax reforms.

that means for our clients, you have to start thinking about planning we have to look at what are our plans. we need to revisit them and rethink them we also have to think about if there is a blue sweep, what does that mean for green policy making that is good for esg but ultimately, looking at the banks, i think i agree canary in the coal mine. this is a signal of hard times to come. >> just to round it off on the banks in terms of short term risks, all of the ceos spokes about the importance of the stimulus measures. of course, a big part they're linked to because we've seen consumer spending hold up all right so far is whether or not these unemployment benefits get extended:th extended that is a short term hurdle for them to get over i want to pivot away from the banks specifically, steve. you've been looking at the put-call ratio what is that telling you >> the put-call ratio is telling me that there is, as i mentioned

earlier, there is much p more greed than fear out there. put-call ratio is basically the amount of puts purchased relative to calls. and that's extraordinarily low the lowest we've seen recently is actually june 6th or so which was the last real peak in the market of what this is telling you is there is speculative fever people are buying calls. as i mentioned, they're all hold up on the favorite stocks. i think there is also this overreliance on what i'm going to call the fed put. there is a sense up there that the fed has your back no matter what the fed doesn't really invest in the stock market if there is a fed put, i don't know where it's struck so it's a very nebulous concept that i think people are thinking markets headed higher. i want a cheap way to play the upside they don't really care so much about the down side. because the fed is giving necessity a put, why should i buy one? >> yeah. afrpg la, this gets at why it's so tricky to figure oult what t

do we've been talking about a lot of bearish things. the outlook from the banks and what earnings are going to look like and fiscal stimulus and the expectations there and the election the bottom line though, when it comes to the massive support from the fed and this hope and progress we're seeing from the vaccine makers, those two are very powerful forces to bet against. i think that appears to be what the market is telling you. what do you tell your clients about it >> that seems to be what the market is telling us and, yet, we have a four letter word that is missing and that's data on the trajectory of the pandemic and it's difficult to look at future cash flows when we have so much uncertainty in how to factor that in so for us for our portfolio, we're actually seeing that there isn't a strategic asset allocation and that has paid up

looking from february to march the max mup drawdown actually we just did a study that ubs global family office study and was -- this is a study of 120 of the largest families at ubs and that really supported what i'm seeing in the trenches that the families are staying resilient and focused on asset allocation. the they're rebalancing and looking at direct investing but ultimately, they're not trying to what is the wealth preservation and cyclical allocation >> keith, final word to you. i mean you are concerned by that put-call ratio that we just discussed with steve >> i'm still concerned and would be buying here we're completely neutral across all the major indices meaning neither overbought or oversold

you look at the vix, it is steadily marching southward. it is important 20 level okay, let's read them and things like the put-call ratio and money flows. things like the internals. absolutely the truth of what is going on and eventually that capital finds itself where it gets rewarded most and that is in the equity markets and to the covid-19 standpoint you had dr. gottlieb on before we came on some of the things he said is important. it's around hospitalizations and the lessons we learned in the new york-new jersey area is how to properly care for the patients once this he come into the hospital so they don't infect the health care workers you're seeing that play out in the sunbelt. they can actually manage the care, get people healthy and out of the hospital. so it's really about

hospitalizations and mortality if the curves continue to bend, then you'll see the market and the economy pick up substantially because those governors, especially in the sunbelt states, will start to reopen and reopen dramatically with schools, businesses, with restaurants, with bars they will go back. they're just waiting to put their foot on the gas pedal. >> yeah. well, we're not there yet. i mean there is no bending those curves are going up. for now, we'll leave it there. thank you. keith, steve afrpg angela as llwe we'll ask red fin's ceo whether continued unemployment would force first time buyers out of the housing market we're back in just 90 seconds. on the award-winning ww app, you can take a personal assessment to get a customized plan. the assessment takes into account the things that matter to you the most. i've lost 101 pounds.

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real estate company red fin just one stock that is benefiting from the recent boom in demand. the stock rallying by more than 220% from that march 23rd low. joining us for more is red fin ceo. it's been somewhat surprising to see how much strength there is in terms of home buying demand what are you seeing right now as far as what is driving it and where the action is hottest?

>> i have never seen such volatility in my entire business career low interest rates are the main driver people are thinking more and more about homes, stuck at home, they need a new floor plan they can zoom in a different room than the kids and so powered by rates and that interest, we're just seeing very strong demand. >> my follow up is how sustainable this demand is people are still feeling the effect of the stimulus program from government. the extra unemployment benefits. we still have a pretty tough economic picture in this country with projections of double digit unemployment lasting so how strong can the housing picture hold up? >> that's the question everyone has. one reason we're confident it will hold up for a few months because the traffic growth is strong usually people look at homes online before buying them. i think everyone is pinching

themselves right now trying to decide if this is really real. it as if the economy split in two, there is a working crass group of americans that are really suffering because retail, hospitality own other sectors of the economy are shut down. then there is another group professionals who are working from it home and wouldn'ting to buy a better house with the money to do so and so housing is becoming more and more of a luxury good. the economy is still strong among that professional class. >> are there very different urban versus suburban and rural trends at the moment >> you see so many people wanting to leave the big city. they're paying high taxes to live in the cities and now they're free to work wherever they want and still earn a great wage with a great job. and so we have seen traffic to cities with less than 50,000 people go up 90% overall traffic to other types of cities is only up about 20%

so people are really looking to move to places in america previously just didn't have many economic opportunities but they have incredibly affordable housing. >> what are you seeing in real time, glen in, the hot spots like texas and arizona and california and florida has there been a material shift in demand as a result of the case numbers exploding >> not yet we keep looking for that we try to bifurcate the country into areas where there hasn't been a second surge of coronavirus infections where there really s so far, both types of areas are still seeing strong demand. as we start seeing more hospitalizations and potentially more deaths, that may chill the economic mood. it certainly won't be our first concern. we want to make sure everybody is healthy and safe. but we also worry that it have a knock down effect on the housing market so far it hasn't materialized

yet. >> when you mention some of the trends you're seeing and that extraordinary growth for some of the cities below 50,000 population, do you think that's shown itself in the prices in what we were thinking of the previous prime cities like new york have they dropped yet to levels that you think are taking account of the trends? >> we haven't seen significant price drops anywhere people really wanted to be on a rail line and 30-minute commute into the city. now folks are willing to go an hour, two hours, sometimes even further into connecticut, new jersey because they only plan on coming into the office once a week or a few times a month. and that has been a real shift our agencies know trans it mass by heart and we're less concerned about putting people into the outlying areas. but now people say i can get 20% more square footage. i can have a great school

district and i'm just not going to come into the office. >> you think that is permanent nent you think those trends are permanent? >> at least semipermanent. i don't think people will work in the office five days a week 40 hours ever. i that i is going to last. >> what about showings you gave a quote, it's like playing a video game, doing a virtual showing? how commonplace is that? is that something here to stay how do you adjust your business around that? >> it's awesome. wept up to about a third of our tours being virtual during the worst of the first surge in coronavirus cases. and now it's about 10% that's still 10 to 20 times more than we saw prior to the pandemic we were always trying to get people to look at homes online and they still do it some. but it's driven as much by health concerns as looking

further afield f you're shopping for a home in grand rapids, michigan, but living in chicago, you may not want to drive out to do the tour. you do that first tour virtual will you we're using an iphone and walking through the house and telling the agent look up, look down and answering questions. so that has been a change in our business but it hasn't been as strong as other change that's we've seen. >> what percentage, glen, even at the peak of when people were using virtual tours actually went through the whole process without visiting the house surely before actually paying they visited the house >> well, that 25% of people have put an offeren on a home sight unseen what you saw at the peak of covid-19 is people were having new kinds of contingencies we'll agree on a price and then i'll come into the house the seller was fine with that. he didn't want to host unnecessary showings bit

basically you comes to terms and say i still have to see the house. so after the offer is accepted, the buyer would walk in, seller clears out if the home was the way that it had been presented online, the deal would go through. and we've always had inspection and mortgage contingencies this is a var yanlt on that. that is more popular as people are migrating. >> what do all of these trends, glen, mean for rentals what are you seeing rental demand prices? >> that is such a fun question i think that rentals have been going up for a little while. homeownership rates declined now you're seeing young millennials willing to live in rentals because they want to be in the center of a city saying why would i do that? i can now buy a home they deferred having children and starting a family. but they're going out to suburbs and having that family without having to worry about the communicate kmoout so there is just a general shift in preferences away from highly populated urban centers.

and some of that is because of the job and some of that is because of health risks. but i think it's a negative for rentals and a positive for homeownership. we're going to see in my guess the first significant increase in homeownership rates since the great financial crisis >> glen, thank you so much for joining us great conversation >> hey, fun to be here >> new york has trying hard to suppress the coronavirus infection rates. now as the state fights continues, they're considering gyms and face something lawsuits because of it. we'll debate that coming up. and as a reminder, you can watch or listen to us live on the go on the cnbc app. we'll be right back. hike!

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gyms in new york state are closed for months and now hundreds of gym owners are trying to fight back kate rogers has a story for us hi, kate >> so charlie is the owner of a gym and he's leading the charge in this class action lawsuit basically says that other businesses have gotten the opportunity to prove that they can open up safely and now gyms want their turn. he also says that opening right now is really critical for a lot of businesses.

>> they can't make this decision this decision comes back negatively we'll have a lot of people go out of business. not just go out of business, they're going to lose homes. they have a lot of the people have taken big loans o ut and things to keep their business afloat >> the spokesman said every public opinion survey has shown an overwhelming of new yorkers support our reopening approach we understand that some people aren't happy but better unhappy than sick or worse. we fully intend to defend the actions taken in these matters but with the next phase of reopening in new york state, its not expected that gyms will actually get to reopen with their indoor activities. back to you. >> it's interesting. clearly we learned from some of the reopening stories that have gone badly gatherings indoors is obviously much more of a problem than gathering outdoors a lot of them have particularly good air systems, circulation system, air conditioning as opposeded to just sort of

mediocre ones. and i think the other point people often miss is that restaurants and bars are clearly built on human interaction gyms aren't. people are properly spaced and they're air conditioning is efficient, you can definitely understand why gym owners are frustrated they haven't been allowed to reopen >> he in particular feels confident he can do this safely in the two locations and really wants the opportunity to prove it remains to be seen if they will get this opportunity as we know, no being taking a very cautious approach to reopening. >> kate rogers, thank you. >> the biotech boom, the biotech index soaring to new highs but up next, we're going to keta a dive into which noncovid-19 biotech stock investors should be paying attention to

positive news on covid-19 treatments and vaccines. the group higher by 20%. the health care sector as a whole set a new record closing high today with more biotech reporting earnings in the coming weeks, can the sector continue to climb higher. joining us, great to see you clearly the sector moved higher. it is driven almost solely by news on potential covid-19 treatments >> not fully somewhat of a degree with biotech and pharma being part of the solution rather than the problem as it relates to the covid-19 pandemic that the stocks are moving in time and we're seeing similar movement overall. >> i guess that's what i was getting at the should we be more focused on potential releases on other drugs that aren't related to covid-19 do they make up --

>> like what what is coming up and what is important? >> well, i mean, for example, there is a company that has a gene therapy for muscular dystrophy and we should get data on that in early 2021. that is aonce and done for thi disease that is deemed incurable. and this could rise significantly. i think this is a huge space here there is a company that i also cover that, you know, has a lot of novel drugs for rare disease that's most of us have never had or herd of. >> a lot of the companies are moving forward

i think the clinical sites have slowed because there is limited capacity as it relates to the hospitalization beds that are being taken up from people that are truly sick with covid-19 it's not necessarily that it is slowing. it's just supplies slowed a little bit i think this is a temporary vent, not a long term trend. >> you stead that biotech and health care is seen more as part of the solution than the problem this time. is there a risk that when a vaccine is discovered or treatment is discovered and a company makes a significant profit from it that that will be turned on its head and a big political backlash >> certainly something to think about. i mean there is a lot of sensitivity around pricing we've seen this with gilead who has the first anti-viral, the first therapeutic approved for covid-19 and i think there is always a lot of talk about how that drug was priced there is a fine line that has to be struck between, you know, making a profit and taking what it takes to make the investment

to make a drug available as many of the big pharmaceutical companies are working to make it you know manufacturing is not particularly cheap it's a huge investment to do this it's a huge undertaking. the companies will generate revenues and probably some profit so it's going to be a fine line to walk there. >> what about political backlash against higher drug prices is that still going to weigh on any of the names and these multiples? >> i don't know. you know, i think from our conversations with clients, it is starting to pick back up a little bit as a question of, you know, if democraticpresident i elected versus a republican, you know, whether there is some consideration that, you know, that person might try to put in kind of pricing controls my view is that both democrats and republicans have a bipartisan agreement drug prices are too high i think after the election that is unlikely that we see a lot of a change which ever way it goes. but you know, when you take a

step back and look, i mean, i think some of the facts that we have a huge global epidemic and a problem and just the fact that these big pharma companies are mobilizing so quickly is sometimes helps to justify but you know there are prices and calls for the drugs being made and the companies keeping supplies on the shelves. i think there is a greater appreciation, you know, for the fact that this is not trivial to sell drugs for millions of people and that costs money. >> what is your top pick and why? >> there is a robust pipeline that is reusable you can target the untropical. so can you do all sorts of things with that across all disease types.

the third thing i really like about them is they're in a phase where they're commercial they have a couple of assets on market as far as marketing them and a couple more come over the next 12 months along with that robust pipeline. so, you know, if the company is a $10 billion market company now and they're growing into the large cap companies over the next couple years. >> thank you so much for joining us >> thank you now some of the biggest names in tech are pouring money into joe biden's presidential campaign up next, we'll ask congressman who represents silicon valley about that and how a biden presidency could impact the tech sector we're back in a couple minutes this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. - any idea how much it will cost? - you have a choice. insurance or goodrx.

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welcome back time for a cnbc news update. >> hello, everyone here's what's happening at this hour nbc news says president trump could as early as today sign an executive order to exclude people in the country illegally from being counted in the census the constitution requires that all "persons" be counted lower courts ruled that includes people who aren't authorized to be in the u.s. but the supreme court has never directly ruled on that question a big majority of california school districts won't reopen this fall after governor gavin newsom laid out strict criteria. >> schools can physically open for in person education when the county that they're operating in has been off on monitoring list for 14 consecutive days. schools that don't meet this requirement, they must begin the school year, this fall, through

distance learning. new york city will be moving into phase four of the state's reopening plan on monday allowing outdoor concerts and pro sports games and malls and museums are open in the rest of the state they will be kept closed in the city you're up to date. back to you. >> sue, thank you. up next, backing biden a slew of silicon valley executives and vp's topping list of donors giving to the professional hopeful we'll name names next. "closing bell" will be right back hey there people eligible for medicare.

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campaigns. the democratic team and republican team. take a look here of president trump still outraising here and ultimately having more cash on hand than joe biden. $259 million cash on hand in the second quarter for president trump. $242 million for joe biden but one of the things we're seeing as you mentioned here is that a lot of the silicon valley tech leaders, you take a look at the faces and names, are donating on the biden side of the ledger we're just not seeing equivalent numbers at all going to the trump campaign we see azinga foupder, the facebook he could founder, $620,000, $620,000, meg whitman, $500,000 to the biden team and a twitter co-founder $250,000 to team biden that is an all star list of tech names. and it speaks to a problem that president has had in tracting ceos to his side and keeping them to his side

the you remember after charlottesville we saw so many of the ceos that joined the president's advisory council all leave in protest to the economies's comments he's not able to get a lot of the big public company ceo names in his column that he would like still, the president has an advantage over joe biden going into the fall in terms of cash on hand. so this will be a big spending election and then the other question going into all this is will these cash on hand numbers in the end of the day really matter last time around, donald trump was the underfunded surprise candidate and he won money might not matter as much as we grew up thinking did it. >> having the big corporate ceos though, is that a help or hindrance? could that be used as something to bash vice president biden >> well, look, the president has been campaigning against silicon valley in many ways. we saw the administration officials come out and tee off

and saying they're too close to beijing. that is a slam they want to make at joe biden himself so they can use this on the trum side so their advantage and say, look this guy is in silicon valley's pocket. >> yeah. he didn't get many of them in the last election either that didn't seem to matter thank you. >> exactly you bet. >> joining us no you to continue the conversation is congressman of california who represents silicon valley congressman, thank you for joining us you know, big tech has never done better than it has under the trump presidency profits and stock prices are near record highs. so why are they backing biden? >> well, they're backing biden because they care about the country. they care about having a humane imbra immigration policy we need universal broadband and communities left behind need to get a part of the digital economy. this the he want to ask to be engaged in the role. those are a few of the issues.

>> and to that question we raised, do you think it's helpful or harmful to have an army of technology ceos? the trump campaign can spin that as, you know, they're globalists, they're in china's pocket he didn't have the ceos the first time or anyone in the establishment and the elite and that was how ultimately he won you're being funded by the biggest billionaires in the nation vice president biden, he is being funded by a lot of teachers and middle class individuals working down yes, he's got support from tech leaders. but i guarantee you that the average american rather have someone fund funded by someone that makes the iphone than someone who is responsible for running the banks. >> which congressman, cwhich of the bank ceos backed trump >> schwartzman there are a lot of wall street -- i don't know the whole

list can you go through the funding list he's getting a tremendous amount of support >> i mean -- some of the more recent reporting that i've seen sort of suggested wall street was actually pivoting towards vice president biden if in either direction steve schwartzman was on his advisory committee of blackstone not really wall street though. anyway, moving on from that topic, congressman i wondered whether you felt significant updating of regulation that faces silicon valley companies, social media in particular. should it be on the agenda for soon after the election whoever wins >> i do. think think is absolutely a need for regulation to make sure that tech companies aren't combining the i think there has to be far more scrutiny on mergers and i do think there has to be well crafted regulation to make sure we are amplifying false propaganda or hate speech. i absolutely think there is a need for thoughtful regulation

>> i want to ask you about california and the battle against covid-19 the fact that cases are spiking. and we just learned that it doesn't sound like schools are going to be able to fully reopen governor newsom attaching strict criteria when it could mz to that what do you think california has learned from places like new york and some of the other hot spots right now that have pushed ahead with reopening it feels like it is in a hybrid mode of trying to close back up and also keep the economy open somewhere in between >> well, we were very good in the beginning. but in candor, the mistakes that the state made is universal mask mandate was too late my understanding is in new york the mandate was in april in california that didn't happen until june we shown in retrospect we shouldn't have been opening the bars, indoor bars and should have been much more circumspect about the place that people congregate now i think we're getting back

on track with the mask mandate with, cloe closising down the bd everyone wants to go back to school but we have to do that where we get things under control and it's safe. >> we have to leave it there congressman, thank you for joining us >> thank you >> up next, closing the gap. new data showing a significant shift in the sweeps week and amazon's week, they saw a huge rally this year of closed down 7 1/2 on the week that is the worst week of trading since back in fep. correspondence with the down week we saw to the nasdaq. down 1% and the broader s&p 500 is up more than 1 hers "closing bell" will be right back 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.

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the rate of women taking over the top position at companies nationwide actually ticking higher this year as calls for diversity and inclus ha ion have intensified around the country. data is showing that of the 591 replacement ceos reported in the first half of the year, 23.4% were women that's the highest rate recorded since challenger began tracking gender data.

gap and kate spade among the high profile companies with a female ceo in 54% of the cases men were named as replacements for women. so women not necessarily repeatinrepeat i repeating. >> it's depressing that 23.4% is to be celebrating. small improvement but not enough, i guess. up next, online startups that allow people to rent out their swimming pools seeing a massive surge during coronavirus experience the adventure of a bigger world in a highly capable lexus suv

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we have some news on electric vehicle company nikola. >> nikola under pressure it looks like news of a secondary offering here up to about 53 million shares of common stock that is pressuring the stock here in the after hours. the electric truck startup still up over last three months about 250% but under pressure on this news of a secondary offering >> one online startup is being hailed as the airbnb of swimming pools. it's seeing a huge surge in popularity in the coronavirus induced pool closures.

>> reporter: i got you some pool toys for this shot just to mix it up a little bit talk about great timing. this company launched two years ago that has grown over 2,000% this year largely due to covid it's like vrbo or antibiotiirbn. with so many public pools closed across the country, people are desperate and willing to pay by the hour to get out of the feet. the owners can make much-needed cash which some are using to pay their mortgages. at first there were some safety concerns. >> the cdc declared from day one that pools are safe. they're outdoor and the chlorine does mitigate the virus. now our pools are coming back online and especially now people need the money. >> reporter: the price per hour can range anywhere from $15 to $300 depending on the location and menities

some people do offer restroom access swimply raised over a million dollars in funding at the start and had another round ready before covid hit that then fell through, but he says they are already profitable. >> would you >> that inflatable unicorn behind you warrants a premium price in my book you know i love the waterfall. i have more questions. i've been thinking about it. >> please. >> the one i have top of mind is, does the family that owns the home stay for the hour that you rent the pool? even if you can get over the issue of using someone else's pool and the cleanliness that's a little bit weird that you're swimming and playing with your family and there's another family watching. >> reporter: it is absolutely up to the homeowner whether they stay or not. some decide they want to stay. some go out because they don't

want to be here. again, it is the homeowner's preference as for the renters, can they say on the application they don't want the homeowners home it's possible. this is a website where you can make requests and they can grant what they want depending on how competitive the market is in your area. >> i think it's brilliant. people use public pools all the time they use hotel pools why not. the one question i have is about the restroom situation so you have to go inside people's homes to use the restaurant or you just go in the pool >> come on. >> reporter: so it depends on the house. some people will grant you restroom access. other people have outdoor restaurants. swimply says they can facilitate getting an upscale port-o-potty. they said an upscale outdoor restroom if you need one.

>> i can't believe you even asked or do people just go in the pool as if that was a planned outcome. >> a lot of people. >> no. the idea that's even plausible is putting me off this diana, i love the story. as we look ahead to next week, it's going to be super busy for earnings. coca-cola on tuesday, microsoft on wednesday i think what we learned from netflix is a lot depends on the setup of some of these names going into earnings season, because it's considered a heylaf quarter. the key question is the commentary we get from management because we're not going to get guidance on whether they're starting to see the better economic data trickle through and help their businesses or whether they're not so optimistic given the cases spiking in this country

still. >> for sure. the bank showed us it's unlikely to get positive commentary on the commentary front for the earnings, microsoft obviously a huge one if they trade like netflix, surely a high chance to drag down the rest of the market didn't happen today. nasdaq closed higher we're out of time. thank you so much for watching "fast money" starts now. welcome to friday and another installment of "fast money. here's what's on the show tonight. we're going to take a look at the breaking news in shares of nikola, down by about 15% in the after market session we're getting news that nikola is selling shares into the open market let's get straight to the story here karen finerman, we noted for nikola at least, they had registered an s-1 back in the middle of june which would have paved the way for insiders to start selling and this is what we're seeing take place in the afte