we appreciate you detailing the red flags for us and joining us to day thank you so much. >> thank you >> tyler, i can't wait to see what happens wednesday >> elon musk said the prices are pricey at these levels >> thanks for watching "power lunch," everyone "closing bell" starts right now. >> thank you kelly and tyler welcome to "closing bell." i'm sara eisen along with wilfred frost. a new week and new market narrative. technology is back to outperforming. positive news on the vaccine front today. multiple companies confirm early success in the studies but that isn't boosting the reopening trade. the airlines, retail, hotels, all lower today. it's the stay at home technology leading us higher. amazon, peloton, and zoom. and while the nasdaq is the story right now, it's up more than 2%. the we have seen the dow erase

167% drop. turn positive 59 minutes left in the trading day. >> yeah, set for another record day all time close for the nasdaq coming up on the show, the dow component and tech component an hour away from that up more than 30% from the march lows still down year to date. we'll have full coverage and analysis when those numbers hit. first of all, let's focus on the big stories we're watching mike santoli is back and tracking all the market action for us meg terrell has new details on a number of vaccine candidates and we're following the action in washington with the key deadline approaching. mike, let's start with you it's almost faz that rotation out of tech into value didn't even happen. you missed it all of last week >> you know, exactly a little bit of a stutter step that is all. maybe it took for the overheated big nasdaq names to cool off for 4 1/2 days, 4 1/2 trading days but they are leading the way today. is a very narrow rally it is a slow motion breakout

you look at a year to date, that's going to close. the if we finish right here, about .5% where it finished on june 8th that is the previous post crash high that we h we've been in the trading range for about six weeks. that is a pretty prolonged benign kind of consolidation period we've seen. i also want to point out here in january this is the only time ever we've traded above, you know, 3250 or something like that in the s&p 500. so that was pretty much when the market was really putting the finishing touch onzes on a high momentum that is something to put into per inspe perspective. i want to take a look at the breakdown here of the s&p 500 year to date against a portfolio of domestic u.s. focus companies. this is a very small etf the russell 1,000 pure u.s. composure etf. does it nicely track companies that mostly are about u.s. revenue. you see right here on june 8th, that is a narrow gap

it was about 4% or so based on year to date performance that widened out to 10%. part of this is about technology but technology international focus maybe has something to do with the strength. also, lots of health care in here so health care, telecommunications, financials are very heavily weighted. but maybe the argument is dollar is down. global assets are up the global economy might be gaining pace faster than the u.s. that's one message, perhaps. the s&p 500 is telling us in a subtle way >> mike, last week if you were trying to find the reason as to why value and cyclicals did do well, i guess you would point to the vaccine news as opposed to necessarily the economic and virus data it's interesting to see the snap back today the same applies today good vaccine news not necessarily outstanding an economic and virus data. >> it's true i do think that the narrative is a little bit staticky. it is very difficult to actually say what has been driving

things i think positioning, even though it's kind of a boring mechanical thing to talk about, people get overcommitted to the big growth stocks they pull back you did have some good beats in the bank earnings front. i think that had something to do with it. the vaccine news, i don't know fit was new in terms of what the premise of this rally has been already. that within several months, perhaps we will have some kind of a vaccine to kind of end this phase of things. so that's why i don't think today's newses with drivi today's news is driving the sector action. >> let's had hit that vaccine news today biotech stocks are getting a big boost amid a number of important updates. meg terrell has the updates for us >> sarah, we did get news from a couple different companies in this race today. first let's start with oxford and astro citizen ka reporting the results from a phase one two trial of more than 1,000 patients we also saw results from pfizer and the partner from a german

phase one study. both of these vaccines showed in the trials they did generate an immune response. they were generally well tolerated. you did see some side effects like fatigue and headaches we learned some new details today. as t after the arestrazeneca thinks they need to vaccines. this is what it may look like. they also said it hopes base ond what they've seen in this vaccine technology previously that the protection could last a year or even a little bit more we're going to need the phase three trials which are starting as soon as next week for some of them to really answer the questions. the do the vaccines provide protection are they safe in more people and how long will that protection last? those are going to help us answer the questions sara and wilf? >> meg, do we know how often we get positive responses like this

where we get ultimately an effective vaccine? or is this just unanimously a positive indication that it's going to work? >> it certainly not unanimous. part of the issue is that this is brained new virus and we don't know how the antibody levels and the t-cell levels will correlate with protection from the virus when people encounter it in the world. so that's why we just need these 30,000 participant phase three trials to tell us once people get vaccinated, are they protected if infection so until then, we just don't know >> meg tirrell, thank you. let's switch focus to washington a stimulus deadline is fast approaching. we have all the key headlines from that story. >> wilf, with five days left for manufacture the programs authorized under the c.a.r.e.s. act, the white house convened top republicans from capitol hill and top administration officials to craft their negotiating stance for the next

phase of economic relief >> focused on starting with another trillion dollars we think that will make a big impact and the focus is, as i said, is really about kids and jobs and vaccines >> gop aides say a payroll tax holiday for a specific short term period of time is where the support generally landed among those officials. president trump prefers stimulus via tax cuts rather than direct checks even though the administration would support both if necessary to get a deal according to my sources. now other positions would include reducing the size of unemployment benefits, reducing the number of americans who are actually getting those direct checks by a stricter means test, introducing tax incentives for consumption and tax incentives for schools and stores that open safely and protecting those locations against future lawsuits the republican package is not expected to include any

additional money for states and local governments. by comparison, the package that democrats passed in the house of representatives back in may, that included $1 trillion for states, local governments and tribal communities so there is clearly a lot of daylight between the two parties on where their negotiating positions begin. the treasury secretary and chief of staff will be on capitol hill this evening meeting with members of senate health committees and presenting to all republican senators at a policy luncheon tomorrow and negotiations with democrats will begin after that sara and wilf. >> clearly a lot of daylight between the two sides and negotiation that has to go ahead. even in the best case scenario, are we expecting that while the stimulus will be extended, it will reduce in size relative to what we had over the last couple months, depending exactly how that shakes out and who benefits >> that's right. we heard members of the administration up and down the

ranks for the last several months talking about how they understood that the economy was going to need more relief but that they were going to try to do it in a more targeted fashion. they saw the $3 trillion package that house democrats passed in may as sort of an everything but the kitchen sink or perhaps even including the kitchen sink type deal they want theirs to be more narrowly tailored. i think being realisted, they think the final draft will end in between >> thank you so much for that. markets by the way, sitting pretty nicely. nasdaq up 2.2% dow back positive. s&p 500 up 10.7% 50 minutes left in the session after the break, why so many companies working on vaccines and updates on the progress. which developments are most important? we'll talk with jacob glanville right after this break you're watching "closing bell" on cnbc.

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welcome back to "closing bell." time to get word on the street check out shares of amazon up

7% goldman sachs and jeffries both raising the price targets to a new street high of $3,800 a share. both citing accelerating e-commerce and core growth second quarter earnings next thursday sarah, goldman sachs was at $3,000 jeffries at $3100. both up to $3800 clearly, seizing a little pullback in amazon shares to do their upgrade. i am note that the thing that stood out to me most of all in the goldman sachs note which is a broad note on the internet sector is this, saying multiples across the sector have expanded well beyond one deviation above five year historical options and even though they have this big upgrade for amazon, you read the rest of it, it's basically saying all these valuations are unbelievably stretched we'll see if the momentum enough to keep going or whether earnings does focus people and what the multiples are

>> it's crazy to see that move on no news making up almost all of the loss that's we saw last week. it has become one of the ultimate stay at home stocks with that whole tech trade working, the stay at home trade, amazon comes out on top. speaking of the virus, move on to the positive news on the vaccine front today from astrazeneca and pfizer and oxford as scientists race to find a vaccine, they're looking to find an effective treatment jacob glanville is currently working on a covid-19 treatment. you may recognize him from the netflix documentary "pandemic: how to prevent an outbreak." glad to have you back on the show as far as the news on the day on vaccine we get to your treatment, what is your level of confidence at this point given some of the early responses we've seen so far that we will get an effective vaccine by the end of the year? >> well, it's definitely good

news we know the vaccines are in antibodies in recipients we need to complete the trials, the smart money as we should be cautiously optimistic. thaws because we know that amsters and primates, they have antibodies, they're protected from the virus the vaccines are not enlisting antibodies i think we'll have effective vaccines by the end of this last year >> we'll talk about the hamsters in a moment. on the vaccine front, is there a way for the scientists and doctors to test how long the vaccine will protect people? it seems like we're not going to know that until we start administrating it in the fall or winter >> the only way to know that is watch these people the closest can you do is you can look at the type of vaccine that the different companies have chosen and can you compare to other uses of the same technology if you use an r & a vaccine, they may have a certain characteristic amount of time

the person has immunity. ultimately, we have to watch the patients and find out. >> doctor, if we look at the last week or so, maderna and astrazeneca is there any one of those three that is the best or winner takes all type market when we get a successful vaccine that is approved >> i had surprisingly similar results. they show antibodies being elicited and they showed some side effects. the so fever and some kind of flu like symptoms that seemed to happen that is a good sign. that means that you're getting a response to the vaccine. although people don't like it so much between the three different vaccines, i don't want to give people too much advice one or the other. i like the pseudo particles, the oxford style technology. it he licits t cell antibodies

as well. >> let's talk about the research you've been doing on your antibody treatments:wh when you are testing on humans and what's the difference between what you're doing and what others are doing? a lot of hope for the antibody cocktail to be used as a treatment. >> that's right. so in addition to the vaccines which are definitely good news, we need a therapy. the reason for that is that even if the vaccines start becoming available in 2021, first off, it it's going to take many months to vaccinate large swaths of the population dr. fauci indicated we never have a perfect vaccine so it won't work in everybody. and we know 20 to 50% of americans may not take the vaccine. so for all those people, they may still get sick and they need something at the hospital to treat them antibodies are a potent way to provide treatment for these kinds of viruses we think the method hopefully will be successful and the difference of our antibodies versus theirs is we have

additional engineering to increase safety. hopefully they're able to treat patients by the end of the year. >> clearly u.s. cases spiked aggressively over the course of the last two or three months but deaths haven't followed. nowhere near to the same scale which is great why do you that i is and should we be confident that that will continue for the next six months until we do have a vaccine? >> . >> unfortunately, you'll see a big spike in deaths as well. we're starting to see that happen what i said repeatedly, i will continue to anticipate the series of waves where we'll start to see large spikes in cases. once that starts hitting hospitals, people increase social distancing measures and other social isolation measures and then that slows the wave we're going to continue seeing the behavior until we have good vaccines and therapies >> back to the antibody therapy for a second a lot of people -- i know a lot of doctors do hail this as a

game changer bridge to the vaccine. are you looking to use this to treat severe patients as we've seen the anti-virals or could this be used preventatively as sort of a temporary vaccine until we get the real thing? >> i see it larger than a stopgap measure. they don't take it we could be in a position of a year or more of the virus continuing to undergo large scale outbreaks. having a therapy, having an antibody you can offer people at the hospital, it's like an anti-viral they get better and go home, then the virus is no longer as scary. it's no longer as dangerous to get sick you can give antibodies to people that are sick the earlier you give them, the better the effect s we learned this from other nasty viruses. that appears to be the case here as well. but can you also give antibodies as a preventative to at risk populations like the people that are elderly or hospital washing workers or the military.

>> doctor, just to go back to the cases and the deaths we should have done two follow ups in a row each rather than yo-yoing like this back to the prospect of where we're heading on that front. do you think whether gettieatheg worse in the fall is a big factor, maybe not on the death front but on the cases front given this may push the new economic activity we've been able to enjoy indoors rather than outdoors? >> it's a little hard to say my expectation is as we see increase in case that's affect hospitals, then local policies will change. the good news is that this is the second time we've gone through the cycle. so we're all a little more experienced on implementing the policies the problem, of course, is people are exaspirated i'm expecting to see some worsening as we go into the fall but this is going to be our second and potentially third wave by the end of the year. that's going to help us try to mitigate the damage until the medicines are ready.

>> what is your thinking as the country and various governors try to figure out how to send kids back to school and whether kids can pass it on to other kids that can pass it on to adults how dangerous is the risk? what should we make of places like europe that have been successful in opening schools? is. >> so the evidence so far suggests that children under 10 are less likely to have severe symptoms and less likely to trans transmit children between 10 and 18 are at low risk. the problem, of course, is it's not zero risk. so still possible. it's not like chicken pox. it's possible someone could get quite sick or even die the efforts in europe have benefitted from way less cases and they applied a bunch of distancing measures at the schools. i think with appropriate sets of measures, it's possible to engage educational systems

i think the danger is being faced in the united states is that we're just pushing everybody back into schools without enough distancing measures and that is a risk that a large number of kids could get sick they'll get infected they may not get that sick but can bring home to families and grandmothers and so forth. >> dr. glanville, thank you for joining us keep us posted on your studies >> thank you >> we appreciate it. 37 minutes left of trading take a look at the markets we're higher we made back that whole deficit in the dow and are now higher by 40 points. the nasdaq is shining today up 2.4% the stay at home technology trade that suffered last week is back on. remember the nasdaq was the only one of the big three to close lower on theweek but still, we're seeing some nice strength across the board except for the russell 2,000 index of small caps. after the break, energy stocks are on the move today on the back of a multibillion dollar deal and a surprise earnings beat will we'll share the details

next as we thoed brehead to break, ta jumping midsection ahead of the earnings report on wednesday a jump for tlaes is up 9.5%. we'll be right back.

earnings and m & a activity make og for a busy day in the energy sector. let's get to brian sullivan with more brian? >> all right we have a deal and the numbers coming out ahead so let's get to the deal first chevron buying noble energy. there is an ne this is nbl for $13 billion total. they're assuming some debt noble is going to be taken out at $10.50 a share. so a little pop for that stock this morning keep this in mind, this was a $75 stock six years ago. chevron got outbid they're happy about that now so they're am coming in and scooping up a big on shore driller to get in texas and colorado they're getting equatorial

ginia. they're going up a bit on the results side, i wouldn't call them earnings, halliburton, a narrower than expected loss. the stock actually rising a little bit today despite numbers being pretty much every metric being weighed down it's not as bad as people thought and there was sign of optimism amid gross margins in the projects that do continue. narrower loss. a big energy deal as well. of guys? >> brian, i have to -- fascinating deal, as you sid the biggest take away though is the fact that chevron and steve worth got so lucky that they failed in their attempts to get anadarco >> never been happier to lose out, right i mean, you know, they went into a -- i wouldn't say a bidding war. they ended up bidding against itself in a way.

you think about that today noble is not as big as anadarco. of course, you know, warren buffett is helping out on the debt side. so, yeah the team is doing a good job trying to delever the balance sheet. and anadarco is not a pure play on texas but a large play. a lot of people don't realize this they were the first or second people in the area in 1924 or something like that. i can't remember the exact year. there will be blood type stuff they've been there and now they're getting assets there as well as colorado which is kind of a new hot bed and this project off of equatorial ginea so i think they're happy with the price. wall street is not unhappy but i'm not sure they expect more deals there is nobody left with any

money. >> brian sullivan, thanks very much as always for that s&p 500 up 0.9%. we're gaining. dow is up 2% comfortably in record close territory. still ahead, dow component ibm gearing up to report earnings after the close. will we'll preview the key things to watch out frr that report the stock is down around 5% or so year to date. as we head to break, let's check in on bonds.

welcome back with the dow 52 points, let's get to developments on the coronavirus. yesterday marking the 41st straight day that the seven day average of new daily coronavirus cases increased in the country that's according to "the washington post. florida continues to be a hot spot with the state reporting more than 10,000 new daily cases for the sixth day in a row one florida lawmaker saying the state should close down due to the rising number of infections there. texas and another hot spot reporting more than 8,000 new cases on sunday. and ohio, could become florida that's according to the state's governor the state reporting more than 1,100 new infections yesterday with the seven day average now higher by 10.6%. >> time for a cnbc update. hey, frank >> here's your cnbc update at this hour.

the jets and giants and the in ational football league will be playing their home games without fans in attendance because of the pandemic new jersey governor said fans are not allowed in metlife stadium until conditions improve. both teams are thanking their fans for their patience. la teesha james and 23 other states attorney general are suing the trump administration they say a new rule allows health care discrimination the suit claims the new rule makes it easier for health care provide aernz insurance companies to deny coverage to lgbtq individuals. the and these mcdonald's employees are among the thousands to take part in today's strike for black lives labor unions and racial justice organizations have called for a nationwide walkout to push for better pay, health care, and paid sick leave. and that's our cnbc news update at this hour. sara, back to you. >> frank, thank you. 27 minutes left of trading here's where we stand.

we're pushing hue highigher in e final hour of trade. amazon is up 7.8%. recovering most of the losses that it saw last week. just charging higher the overall s&p 500 is up about 1% it is consumer discretionary and technology communication services and health care are leading higher utilities, energy and industrials lag. nasdaq up 2.5% coming up, china shanghai composite climbing 3% in today's session. now up more than 8% for the year beating the s&p 500. we're going to ask an expert up next who says china could remain the world's best consumer story. we'll be right back. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade

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welcome back we have a market flash on tesla. phil lebeau with details >> take a look at shares of tesla. up almost 10% on the day yes, 10% for this stock means, what, $140, $145 a share look, $142 higher. keep in mind, there is no specific news that is driving this stock higher. fwhut but this is not uncommon before they report quarterly results. we've seen this in previous quarters, especially when they're expected to post a profit you see the stock move higher. tesla reports q-2 results and an expected profit for the second quarter, that's the expectation out there, that will happen after the bell on wednesday. so that's a little bit of color into why this stock is up almost 10% on the day guys, back to you. >> at $1640, the high touched on the 13th of july, $1775. a little ways still off. that phil lebeau, thank you.

the shanghai composite outperforming u.s. equities this year jumping 3% on this session china's economic is on the way to a v shape recovery. andy, good to see you. thank you for joining us let's start on that topic. are they experiencing a genuine v in the economy and can we believe those numbers? >> yes the for the time being, there is definitely a v-shaped recovery across most parts of the economy. cap-ex spending, consumer spending that is the biggest part of the economy. that drives growth and new home sales, car sales. it's all looking perfect it good not yet back to normal but heading in that direction. >> i guess because of 2020 we're all focused on covid-19 issues should we be more focused as it relates to the china market on u.s. china tension ds which elevated is that a factor that should derail other is the economy adapting such that it's no

longer a ris snk. >> you knrisk >> i think the biggest risk is the same one here. how are we going to manage covid-19 and how are they doing it that's where things are looking good they really managed to bring it under control over the last couple months. there hasn't been a covid-19 death in china since the middle of april and that's going to be the most important part what happens with the u.s. is much less important because china is a domestic demand driven economy just like ours and therefore, the tensions between washington and beijing are highly unlikely, i think, to derail things. net exports, that is a value of a country's kporexports. they contribute zeerd row. and china only sends 17% of the exports to the united states i think that is a big factor in terms of investor sentiment but not a big factor in terms of performance to the economy or of investments in china >> andy, what do you think offant group going public? this is going to be a giant ipo. they chose to list in hong kong

and shanghai interestingly after jack mop a few years back came to the u.s. for alibaba. what does it signal? >> well, i think for me the most important element to this is the frustration that i have with the counterproductive efforts that some people in washington are making to try and delist chinese companies fromthe united states americans are going to invest in chinese companies wherever they're listed as they do now. if they're not listed in new york, that bolsters the hong kong exchange or exchanges in singapore and london that means the companies aren't subject to our regulations i think for american investors, counterproductive. >> whether we consider some of the action that's have been taken of late against china, it's clearly elevated the debate as to who is to blame over last couple of decades if people did go down to the chinese regime.

do you think ceos that have seen the ip stolen, for example, need to take more responsibility for some of the questions? >> well, i think that companies do that by their general nature. that's what companies need to protect their ip whenever it is that makes them successful but when you talk about cow you toing, you're referring to a speech that attorney general barr made recently where he said that china seeks to overthrow the rules based international system and to make the world safe for dictatorship. i just see no evidence to support that at all. china wants to make china safe for running its own system of governance we may not like. we have to acknowledge that that's going to be there for some time. and we have to work with it. i think engagement has been really successful for american companies, for chinese people, but for us as well china is a much better actor abroad look at taiwan, for example. when the u.s. and china established diplomatic relations in 1979, china was still --

sorry, taiwan was still a one party regime everybody is worried about survival now it's a wealthy, thriving democracy. so i think going back to the process that brought us where we are today is what's going to generate more progress for our economy, for our companies, and also for chinese people. >> but don't we need to keep national security in mind, andy? aren't there some real concerns? the u.s. government is warning about this for a reason. >> of course i'm as attune to the national security issues as anybody else. i spent 17 years as a foreign service officer in the state department, mostly focused on china. i'm well aware of those. we have to make sure when we call something a national security threat it really is a national security threat so, for example, is huawei putting gear on the uk and

national security threat gchq, their version of our nsa has been pulling apart all the gear and software as it comes into the uk for ten years and has said every year in a published report, it's not a national security threat has this become a political excuse to deal with political problems in the united states rather than focusing on national security and our own commercial interests as well? >> andy, thank you for joining us >> thank you let's check in on the markets. they're rallying into the close. up 90 points at the high for the dow. up 68 at the moment. s&p 500 is up 1% nasdaq composite up 2.5% set for the record all time closing high after the break, key things to watch from ibm's earnings and a reality check for one high flying electronic vehicle company. those stories and much more when we take you inside "the market zone." let's have a look at amazon in particular up 7.6%. it is set for the best day since

december 2018. that is if it is up more than 7.5% at the close though we're just a week or so ago it was a little higher than it is now. touched $3329 or so on the 13th of july. we're back in a couple minutes on "closing bell." save hundreds on your wireless bill

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[sniffing] is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey.

don't get mad. get e*trade and get more than just trading. investing. banking. guidance. 14 minutes left in the trading day. the markets mike santoli is back he's here to break down the trading day. we have the chief investment officer nancy tangler here as well let's kick things would have a broader market a strong rally on our hands. the dow remains the lagger it is up 70 points or so mark cuban warned people should

be spectacle of this rally >> everybody's making money right now because you got the fed put. and, you know, that brings people in who otherwise wouldn't participate. you have all the free traders, you know, the analysis to the day traders of the late 90s that can come in and trade for free they can trade fractionalized stocks >> you know, as i look at my portfolio, it is very heavy on amazon and netflix i have to keep on reminding myself that the internet bubble lasted multiple years. it went from 1995 to early 2,000. the bubble is over two months later. it lasted for years. >> mike, i guess it's last for years already. although, it's never really resembled a bubble they've been growing revenues very, very quickly now that said, we did see last

week with netflix that earnings brought that stock down to earth a little bit might the same happen when we get to the other tech reports? >> i think the expectation is built into the big tech names are pretty high right nour there is no doubt about that but i also think that there is a little bit of a difference in terms of tone and motivation of this incessant buying and the very large growth stocks today versus what happened i believe mark cuban might actually agree with this it's almost more defensive right now. there is this sense of perhaps an inflated sense of certainty around their long term earnings trends as opposed to it being these are the fastest moving, you know, catchers of eyeballs going on in the 9 0e's the fact that mark has to remind himself how the late 90s bubble went, nobody played it better than he d he sold it near the top. he locked in the gains and the trade of the decade. so if he has to kind of remind himself of these things, i think

it's telling you something how beguiling the market can be and the risk of overdiagnosing something as a bubble when it's not really a bubble. >> still, some of the moves are extraordinary. microsoft is up more than 5% you have seen moves like this? what does this action tell you >> yeah. thanks, sara i think you have to set aside the robin hood cohort and look at the underlying fundamentals of the company i will say, i don't think this market, i wrote a piece on this recently, is necessarily moving on fundamentals. it is certainly being driven bypassive amounts of liquidity in the system. when you look at the companies that are already well placed ghoog covid- going into covid-19, companies i talked about multiple times on the air, those trends have just been accelerated as we also keep

talking about and it's hurt other companies like oracle which we're exiting and we'll see what happens with ibm coming up but you have to be aware of the valuation and then the growth potential. 50 stocks in the s&p 500 have grown their earnings on average at 15% over the last five years. that is ridiculously low that is why investors are willing to pay up for growth and we're certainly not even close to the valuation levels we saw in the 90s and early 2000s >> so you don't -- so you push back against the bubble talk >> i do. i lived through that bubble. mike is also correct this is a safer trade for many people at the margin, those people will leave when earnings disappoint we'll see with microsoft in the coming days. but if you look at the long -- if you're buying the stocks for the long term, the trends have moved in their direction

i'm talking about companies providing real service the last thing i'll say is cap ex as a percent of total capex topped 50% software capex is three times what energy capex is in total capex spend. that tells us a lot. >> sara, just to jump in you also have to be clear that stocks can be unattractively valued and they can, you know, overreflect some good news and be too expensive and have unattractive long term returns >> right there are questions on the movement of lack of fund ales let's move on. let's talk about another driver of the market. the more hope on the coronavirus vaccine front today.

highly anticipated data from astrazeneca astrazeneca's vaccine. shares falling today pfizer's vaccine effort also showing promise in data released today. joining us is a biotech analyst at jeffries. that stock is getting sold off pretty hard today. i think it's hard to figure out the valuations for the companies. with the potential demand for this covid-19 vaccine so large how do you do it >> thanks for having me on first i say all of the stocks have run up last week. moderna is up 50% last week. astrazeneca ran up on news that the data is coming in today. people are putting in context the very significant opportunity

for pandemic stock piling which is hundreds and hundreds of millions of doses. could be a billion doses and not only pandemic but potentially e ne potentially endemic. so that is a tremendous opportunity. and we don't know if it's going to happen. >> i totally get all the stocks had a great run. is moderna selling off because the dwrat is not as good as the oxford data this morning and because investors to some extent are saying this is winner takes all. >> again, i'll reiterate the stock. we had one last week so that was perhaps due for a little bit of pullback one is, of course, you saw the pfizer 30 million dose order this morning out of the uk which is a good sign that countries are starting to move in this case, doing a deal with

pfizer and, of course, astrazenca data looks good there is more competitors and people are saying, you know, it's a race. who is going to win? move the chess pieces. you'll have this volatility for the next few months until we get that data. >> what about the kmn coming from the federal government. the u.s. responds has really focused around pumping money and bets into these vaccine makers how is that changing the economics and the calculus for the companies? >> well, i think on one hand it tells us that there is no doubt that the u.s. both with the amount of the capital and they point to obviously stimulus package four trillion to fend this off for a couple billion that they put in they help the manufacturers get this so we have hundreds of millions of doses ready to go.

we want these to happen. we work with placement and economics. i think that the end of the day the volume is so tremendous. hundreds of millions of doses to a billion doses times a small number like $20 gets you to enormous money, a billion doses times $20 is $20 billion just to put that in perspective. obviously a fraction of that, like $2 billion is worth a lot of money to a company like moderna. put that in perspective. >> michael, thank you for joining us great to see you broader markets still nicely high s&p 500 up nearly 1% tesla soaring today. shares of the electric vehicle maker getting crushed after announcing a secondary share offering late last week. phil lebeau has details. >> and when you take a look at shares of nikola, it's a case of

dilution concerns. deutsche bank is out with a note saying it's going to be substantial and this could be a positive entry point here's the dilution that you're looking at 24 million warrants coming in at an exercise price of $11.50. then you have 54 million of the pipe shares, those are going to be registered. so all together, you're looking at 77 million shares coming to market when you take a look at shares of nikola, we've seen this before this stock will be up or down 15, 20% in a particular day and right now, yeah, it's down 21% >> thank you so much for that. do you think tesla can shrug off a capital race if they want one? >> arguably could, yeah. it depends on the size of it a lot of people talking about assuming it does get into the s&p 500. smimdz they do a capital raising

conjunction with that as index funds have to buy. almost any whisper that complicates the situation can be an excuse to cause it to retrench a little bit. i don't think a capital raise that would further kind of secure the finances would in itself be game over. >> ibm is trading higher along with the dow ahead of the results due after the bell we have a preview. >> sara, this the first full quarter. now the early days have seen him do things a little bit differently for one, he runs the earnings call himself. there are as many that delegated them it is really the same as it has been for years

shares, you just noted this have underperformed last quarter to remember that ibm withdrew the guidance due to the pandemic shar shares are down 5.5% this year 15% over the last 12 months. will so trailing tech and the broader markets. back to you. >> thank you we just got about two minutes left in the trading day. mike, what you are seeing in the market internals >> the internals are vastly weaker than the index. i think that is the bottom line. so if you look at new york stock exchange volume, actually more volume in the declining shares than advancing shares. very narrow rally. so the equal weighted index down .4% while you have the headline s&p 500 up 1% its not good or bad.

you like to see a broader move it definitely shows you very selective market right now volatility index is getting some attention here it's broken down it's not falling apart here. it is resilient in the mid 20s if this breaks lower, it will trigger a lot of the strategies that tell those models to take on a little more equity risk that is something to have on your radar as well. >> okay, mike, thank you for that 50 seconds left as mike said the headline is impressive they're down 170 so well off the lows of the session. nasdaq up 2.6% set for a record close being led higher by the likes of tesla up 9%. amazon up 9% microsoft up 4.5%. alphabet up 3.5% tech very much the best performing sector consumer discretionary also because, of course, that's where amazon

sits communication services the other sector nicely higher we have got seven or eight sectors in the red speaking to what mike is saying about there being more stocks down than up today. at the bell, we're up 0.9% the nasdaq composite a record closing high up 2.5% welcome back to "closing bell. i'm sara eisen mike santoli joins us. take a look at how we finished up on wall street. we were down more than 160 at the lows around the open led higher by microsoft. that was theme today for technology the s&p 500 up .8% and did you see strength in the consumer discretionary group thank you, amazon. closed up almost 8%. also in technology, communications services, a lot of the faang names didwell

the russell 2000 index closed lower by .3% investors are awaiting earnings from dow component ibm we'll bring ut numbers as soon as they're released. instant analysis the first as she mentioned under the new siceo. joining us to talk about the market, nancy tangler. and victoria fernandez joins the market conversation. welcome to you first though, i turn you to, mike on the action we saw today which was a bit of a reversal from last week. the big story was the s&p 500

finished up 1% the nasdaq finished down 1% on the week people wonder is this the end of the growth trade well, guess not. >> well, at least not yet. certainly too early to tell that i think we should keep in mind last monday when people were essentially saying that big down side reversal in the nasdaq 100 tight names is something decisive be careful what you say now. they now decided to levitate again. it is hard to know exactly what it means on a daily basis. and i'll say the pullback and the big growth stocks did not do anything to disturb the longer term up friend and leadership profile and the rest of it it's not a zero sum game either. it's not as if the big growth stocks have to fall apart in order for more cyclicals to work better i do think it makes sense even talking about the kind of bizarrely huge moves in mega cap stocks on no news like microsoft. i think it's unstable backdrop you have a lot of speculation

and the faster moving names. >> you set it doesn't have to be buy or bubble. does that valuation gap, does that have to narrow again at some point >> i don't know if it had as to narrow on a sustained basis. you'll have the episodes where it just does get pulled apart too much the groewth stocks are expensive they're not growing very much to match those moves. yes, you have crowding risk. that is another thing that does happen i think you have a lot of crowding in names in terms of hedge funds and individual investors. that gets unwound periodically i don't want to suggest there is

a free lunch zint mean there is one single way for the market to progress >> how are you processing the case loads in this country they're starting to slow the economy again. we've seen the rollbacks in the high frequency data and sensing it in a lot of the ceo commentary from bankers, airline executives and others. >> we saw it trough in april you're right it really plateaued at this point in time. we're looking at what that means for the consumer consumer demand is key for us as we're looking forward. we're trying to make sure that even though things are shutting down again or that they're slowly reopening, maybe slower than people anticipated, that

there is still going to be an opportunity for the consumer to spend. so not just the secular growth names that we've been adding to that you've been talking about but also looking at some names like a walmart that we added to our portfolio last week. we think those are going to be good plays if the consumer remains somewhat strong. we're going to be able to take advantage of that and continue to grow. so we think we're going to see trends move higher it is going to be slower and we need to watch the consumer demand >> nancy, i know you're not concerned about the data points in terms of spike of cases given the huge amount of stimulus in the u.s. do you think it will be a factor for relative performance between different countries and now might be the time to put money to work overseas which underperformed for the last

decade >> i still think the u.s. is the best real estate in town also the stocks are also beneficiaries of technology and the economy. but i do think it is time to take a fresh look at emerging markets and the global markets in general we increased our allocation recently not a huge amount. but it is a more attractively valued space and one that i think, you know, we've seen china begin to v recover if you will and i think we'll start to see that in other parts of the world. so, yes, i think that is a reasonable deduction for sure >> we got ibm numbers heading to tape we have them >> it is a beat on the top and bottom lines for big blue. actual eps coming in at $2.18. the street was estimating $2.07. so an 11 cent beat there

revenue at $18.1 billion versus $17.7 billion expected you can see shares are popping more than 3% in the after hours. this is another year over year decline in revenue the eighth straight quarter of flat or negative growth. the ceo has his work cut out for him. cloud i want to mention. cloud is making a major push posted cloud revenue of $3.6 billion that up is 30% a nice beat there. the company says that cloud now compromises a third of total ibm revenue. margins were slightly better than expected. no guidance, guys. remember that ibm pulled guidance due to coronavirus uncertainties last quarter some thought it would perhaps reinstate guidance that did not happen i have to say, lastly, there is really no commentary on covid-19 uncertainties or the path forward in the earnings release. we'll certainly be looking for that awaiting that on the earnings call which kicks off at 5:00

p.m. eastern >> thank you so much for that. mike, for a long time, this battle for the company is trying to get people to focus on cloud revenue on 30% or red hat hef knew up 13% as opposed to the headline number which is flat as d said does the era of covid-19 speed that up and help the market look at this as something that's not perhaps as some of the core economy stocks that has been labelled and bracketed in terms of share price performance >> at a certain threshold when the businesses do represent the predominant play you get when you buy a share of ibm, it will make a difference. i'm not sure they have a halo effect but certainly the trends are moving in the right direction. the stock is indispensive by most measures. it's like 1% of the s&p 500 value index. it gets penalized for that more than a benefiting from it. so seems like decent numbers

but also, they're not fast moving in terms of the customers adjusting to what the new realities are. a lot of subscription type stuff. it's no the as if it you would necessarily see the big drop followed by a big come back in this one quarter's numbers >> just trying to figure out if this is -- we're not used to seeing a beat and a share price jump i wonder if this is a case of low expectations and they manage to beat numbers or if it is looking better at ibm -- with ibm with that revenue beat and there is growth he in the hybrid cloud and everything they're pushing on that has yet to really materialize into real growth >> thiscy hard one there are so many promises one of the portfolio managers and the dividend yielding and

they're waiting this out it's only -- the dividends are half of free cash flow but i just become concerned when you can't -- the company can't string together year over year revenue growth and it just continues to decline new management if you want to own it, you take comfort in the fact that dividend is 5% it's been growing over 7% a year which is better than can you get pretty much anywhere else. >> mike, want to pivot back to the broader markets. you mentioned how the vix dropped below certain key levels but one of the factors is the negative days is slightly bearish factor what is your take on where that stands >> it still does i think count in the negative column the put-call ratio is low recently does it show you very low demand for down side protection relative to high demand for

upside exposure. i do think it's some what mitigated by the fact that the volatility index which is based on index options trading has been at or above 25 for months now. that means in aggregate, institutional investors are well hedged up against the indices even if they're not hedging individual stocks. i think there are signs of froth in the put-call ratios and other types of investors with exposures and the ratio of nasdaq volume to new york stock exchange volume is off the charts and showing just a concentration of upside speculation. >> we'll leave it there. thank you for joining us nancy and victoria, good to see you both we'll see you soon up next, much more on ibm's better than expected earnings release and whether you should be buying the stock. it's having a nice nearly 5% jump after hours "closing bell" returns in just 9

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like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. what's around the corner could be your moment. ask your doctor about eliquis. welcome back shares of ibm moving higher. the first earnings report under new ceo. the company beat on both lines it's up 5.7% in after hours. let's bring in our analyst great to have you join us. what is the take on the numbers? clearly moving nicely higher after hours. why do you think that is

>> yeah. you know, to start off with, it is nice to get a revenue beat out of ibm so 18.1 million print. a few million ahead of the street that's a good positive and then you start to see a nice trend. the software segment is starting to show nice steady broej. you start to see the things that ibm promised they're still able to do that despite all the covid-19 problems so that's been the positive. the second part is they appear clean. there is no tax or stuff that is helping on the bottom line this is a nice clean revenue >> is this enough of a catalyst? it's a nice move today 6% enough of a catalyst to see this move from the bracket of value stocks within tech to growth stocks if people start to focus on the cloud numbers, the red

hat numbers? >> you know, that's a great question you have glimpses of performance falling back a bit the big dynamic will be this is a great quarter. this is a great start. did we string along a few more quarters until this gets right i think that is the big focus for people to get convinced that this time is different and can i get more of the quarters like the june one i have right there >> to what extent, i mean, is the pandemic impacting ibm we've seen it, you know, boost the business of so many other cloud stocks and tech stocks what is the direct impact here >> you know, i was trying to go through. i don't see them calling out covid-19 a whole lot especially on the call in terms of what is happening to them now. keep in mind, there are a lot of ibm business is contracts.

it is rhythm in nature i think 60% plus of the rev knees or profits are reoccurring in nature. so in theory, covid-19 should not have a big positive or a big negative impact for them for right now, it is morsteady as you go. the question will be, i think, in the next six months, if and as transformation accelerates, can red hat and the stock portfolio see an upside of it. >> what is the top question or top thing you'd like to see from the new ceo? >> you know, the biggest thing that everyone wants to understand out of the company is how does the portfolio stack up in the next six months and the next six years as you go through the digital transformation journey and does ibm need to do more acquisitions like red hat on a smaller scale to get the portfolio to be aligned correctly over time? >> i think you're at $130 in terms of the price target on the stock. you have it at a neutral

you are looking to raise that? you're sounding more optimistic. >> again, this will depend on what our forward estimates look like we don't have a formal guide out there. but if the trends that you have in the june quarter that are leading to the revenue in eps beat, one can be structural and can sustain. and certainly the stock has a higher life path ahead >> thank you for joining us. >> up next, we'll look at earnings and if it they're priced into the market can you always watch us on the gon e bcpp othcn a

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stocks closed higher nasdaq closed at a new record high let's go back to mike santoli. mike >> yes one thing that is clear in the early stretch of this earnings season is that analysts had cut their forecast a bit too far in the initial reaction to the covid-19 crisis. that's what this line says right

here that's a v it's not all the way back up to even but so far it is a v morgan stanley chart showing the net positive to negative earnings revisions in the s&p 500. this is deeply negative. the obvious comparison being made is to '08 er in gnever got as bad as '08. that happened in mid 2009. that is a sustainable recovery in profitability there is no magic here i want to point out this is the year 2000. back up above even so it was not necessarily a durable come back for corporate profitability. you have to watch how this develops i think looking into third quarter earnings estimates and seeing if you can get anything from the reporting this week, next week and the following week from companies that are suggesting that maybe even third quarter numbers are too low. that may be too much to ask. but it is something worth watching as we wait to see how long it's going to take for s&p 500 companies to get back to anything like 2019 levels of profitability.

right now weeshgs talking about next year at the earlier earliest. >> seems tricky to do given that most companies are still using covid-19 as a reason not to provide guidance or unable to do so they don't see clearly what's coming which, you know, shouldn't fault them for it's pretty hard to predict. >> sure. >> but also, mike, it's not like we're watching the cash and balance sheet metrics. the fed has dune a lot to clear up the clogging of that market what is it we're trying to read the management tone and commentary >> i think it's the management tone and also what management is doing in terms of what it can control on the cost side so what are they doing to try to preserve profit margins? what are they building in for budgeting in the coming quarters in next year what are they assuming on revenue as they build the budgets? all those things i think are coming into the mix. we certainly, i think, should be braced for some level of echo job reductions out there from corporate america among companies that are not directly

affected by the immediate shutdowns. but obviously have to re-adjust the footprint of the business based on what they think is sustainable here what if we did get more shutdowns even if we get a vaccine. what if we saw more shutdowns such that q-3 and q-4 really disappointed >> i don't think the market is set up for that really to see a backsliding of the reopening i don't think the market necessarily would take it very well you have to also say what would that mean for the market cap of amazon and microsoft and apple on a day like today is all that mattered but on a more sustainable basis, you have to think it takes more than just that i mean, the median stock is still well off the highs it's no the necessarily saying things are back to normal. but the average stock is saying we're going to get there before let's say the end of next year back to normal

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nasdaq closing at a record high there were performers that helped drive that move amazon jumping 8% after they both set street high price targets, $3,800 for amazon microsoft climbed about 4% tesla finished the day up nearly 10%. and over on the big board, ibm up nearly 5% now in after hours trade after just repeating -- reporting a beat on both lines up 7% following the earnings >> the knew beat is impressive we are less than two weeks from employee emergency unemployment

benefits spirg emergency that, is and congress is finally back in session this week negotiating the next coronavirus relief bill industries including banks, airlines and restaurants have all launched massive lobbying campaigns vying for assistance in that bill joining us now is bruce melman it's one of the largest lobbying firms in the united states bruce, it goods to have you onboard. just what does the lobbying see and frenzy look like around this next stimulus that is coming out? how active have you been >> well, gosh. folks have been active my firm and every other firm, you know, as i'm sure you report all the time a huge amount of the economy staying afloat right now particularly given the failure to attain the disease the way we have seen before in other developed nations is congress's

support. and the coronavirus packages are the keys to businesses surviving. there the is probably one left package left in the two to three weeks that will be somewhere between 1 and $3 trillion. but a lot of businesses are worried that if they can't get support and the economy continues to struggle as a result of the disease, they're going to be extinguished >> there is a lot of struggle to go around. how do you narrow down which industries and types of companies need it most all businesses are talking about the need for liability and the worry about a tsunami of lawsuits and what that can mean. you have many that are so clearly impacted travel and tourism you think of hotels and airlines p recommend clearly not using services you can't work from home if you're talking about flying, for example. there is a lot of concern in the real estate industry the forbearance against foreclosures if they don't continue that and don't find

ways to keep mortgage servicers or mortgages whole, there could be a lot of pain there many in the news industry are seeking support for government it takes schools, schools would like to reopen it's better for particularly k-12 kids if they can reopen and for universities, you may see a quarter of them go out of business if they're not able to reopen they need help they weren't prepared. they put in place what we've seen in germany or south korea to allow us to necessarily safely reopen schools. what sector is most exposed that really needs some kind of further stimulus and at the moment is the bill's shaping up may not have it included >> well, let's see that is a double whammy question it seems to me that the travel and tourism is hurting about as anybody i can think of

perhaps not to europe right now. of course, i'm an american they wouldn't have me right now. i think congress is well aware of that. every member of congress flies every member of congress will stay at hotels they all understand -- and everyone has them in the district they understand how important it is i think the central dynamic on the next bill will be both sides want to support families democrats in particular want to make sure states and localities have money or we'll see five million people lose their jobs huge amount of pain and very unionized municipal workers. for republicans, the liability question i think they will come to a compromise on that the question is how much more they're willing to spend and how far down the ranks of worthy businesses, worthy employers that people want to help and that probably comes down to a question of the white house. the senate republicans left on their own and stop at one trillion total the house democrats have already said they're happy go to three

and change it's probably up to the white house in terms of how much fiscal stimulus they need heading into the election. >> what about small business, bruce? especially ones that can't afford big fancy lobbying groups i know they're represented in some places. are we going to see another ppp program? how are they expected to survive if they don't get the extra government money >> i start by noting, i have a small business as well not fancy, i hope. you're 100% right. the majority of businesses in america are small businesses and to have a dynamic competitive economy you need small businesses to challenge the larnlge ones. one of the rare areas of bipartisan agreement is we have to figure out ways to help and protect and keep afloat small businesses you saw that with an extraordinary amount of money and additional money put out there. right now the program is so-called ppp program through the small business

administration some of that is structuring. they spent 75% of the money only on payrolls when many of them had rents and other expenses and we had all hoped and at times been reassured it was going to last a few months i think we'll see more money and more significantly changing and easing of the rules to make the program that's have already begun funded more accessible and less punitive for the small businesses that are finding it harder to get foot traffic for a while. >> do you think this bill is going to pass first time or is there the chance it has to fail once or twice before it actually gets over the line? >> like tarp did in causing a 750 point market swing i think it will pass before they all drop the mike and head out of town for the august recess and political conventions. whether or not the senate has such goofy arcane rules, it it's

very conceivable you'll see some number of tries before they finalize the sausages and they're ready for service to the customers. but i'm pretty confident this will pass even if you have multiple days where you have to report that efforts failed and you'll hear from leaders in both party to sense they're going to go home or cancel their party conventions and stay in town that is usually bluff. they'll get this done. >> bruce, you mentioned your business itself was a small business did you take ppp money >> no. we didn't ask for it we're not seeking it we don't need it, luckily. and we wouldn't like the look. there are a lot of really worthy and needy businesses and thankfully we're not one of them >> bruce, thanks so much for joining us >> thank you thank you for having me today. good to sort of see you again, sara >> thanks, bruce >> teachers are suing to hold the reopening of schools

we'll ask sal khan how he is working with school districts to help students learrete n moly

time now for a cnbc update with frank >> here is the cnbc update california hair salons and barber shops can reopen again but they have to move the business outdoors. the governor announced the plan this afternoon he ordered salons and shops to reclose last week after new cases in the state increased >> a judge will hear arguments on an emergency request by georgia's governor to stop atlanta from enforcing a face covering mandate and other covid-19 restrictions. the governor says that atlanta's mayor doesn't have authority to set restrictions tighter than

state level rules. that hearing is set for tomorrow morning. european leaders are considering a new recovery package after four days of heated talks that failed to result in the deal reuters is reporting new plan cuts the grants to $450 billion and raises the amount of loans to $410 billion. it also requires nations to get approval for their plans before they use recovery funds. and that's our cnbc update for this hour. sara, back to you. >> frank collin, thank you up next, a large study out of south korea finds that older children spread the coronavirus just as much as adults suggesting that reopening schools could be tricky and could cause outbreaks. we'll break down the back to school debate with a pioneer in remote learning when "closing bell" comes right back stock slices. for as little as $5, now anyone can own companies in the s&p 500,

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it was an up day for stocks. the nasdaq was the star of the show closing up more than 2%. best day since late april at a record high. the 28th record close of 2020. the names that led the nasdaq, tesla, zoom video, amazon.com, citrix, a lot of the technology stay at home winners that have been driving this market for months now sharply higher huge moves for amazon. $1.1 trillion company to move up 8% giant market cap moves of about a billion dollars on those names. interestingly, the narrative around the market was two positive vaccine candidate results out. usually that boosts the vaccine stocks airlines and away from home names. hotels and cruise lines. not so today maybe that starting to get a little priced in the today it was back to the mega cap semidefensive structurally growing winners >> absolutely. >> i guess they already had those cyclical stocks and good

vaccine news to rally on last week so perhaps already priced in there up next, ready for a rally? forecasts showing a huge surge in demand for e- commerce warehouse stocks the big names veorshldinsts ou be watching when we return advee of a bigger world in a highly capable lexus suv at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer.

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welcome back e-commerce warehouse stocks to be a place for a big boost frank collin is here with a name to watch >> the global leader in e-commerce warehousing trading lower ahead of the earnings tomorrow when you look at the entire sector, well, it's underperformed since july. recent reports that demand will surge for warehousing as much as 72% over the next 18 months. according to new research from cbre, companies restructure the supply chains after the trade war and after the pandemic will be a driver forecasting retailers will shift from holding months of inventory to just holding weeks now grocery delivery also forecast to see a boom in demand with online ordering for the $1.2 trillion industry going from 6.6% of sales at the height of the pandemic to as much as 10% by 2025. warehouse operators say the space dedicated to e-commerce

has grown this year and that can increase with retail closures forecast to increase as much as 177% this year back over to you >> frank, does america have enough warehouse space to fulfill the e-commerce boom we're seeing now in the projections say that will continue to see? i wonder if the stores that are closing in droves are getting transferred into spaces like this >> great question. the question is are people going to keep buying online and have it sent to their house look at the numbers for click and collect, that shows obviously a trend of people more and more going to online to buy things and then going to the store to pick up the item. that's increased dramatically in 2020 alone obviously, the pandemic disrupted a lot of ways we shop. in june, 27% of people who bought something online, they picked it up in the store. that is not everything they bought online. they picked up at least one thing from the store that they bought online. >> frank holland, thank you. one major issue for working

parents and economists is will schools reopen in the fall parents my choose an all remote learning option for the children as florida educators sue the governor over plans to reopen schools as cases in that state rise joining us now, sal khan, the founder of khan academy, a nonprofit that offers education through online courses they work with school districts across the country including las vegas, detroit, and houston. good to see you again. thank you for joining us we always discuss the various issues about online learning versus in person learning. one issue i want to ask you about is keeping children's attention. i think all of us when we were kids would have not worked if it that had been an option. but teachers presence obviously made sure you're focused how hard is it to keep kids focused on a laptop or computer at home when they're in their room by themselves it. >> it's a real thing you know, anyone who taught live

with 20 or 30 or more students knows how difficult it is sometimes to keep their attention. obviously it depends on their age-group and what you're doing with them. but if you're doing it over video conference, doing it over zoom, it is that much harder that is talking to a lot of teachers that's what they struggled the most with. obviously, can you have a few controls if you're the moderator on video conference. but if a student is really disengaged and can you imagine they're on a computer, there is other windows open, it's really hard to tell that they're engage the. so there is all sorts of techniques we've seen teachers really experimenting with where they're, you know, cold calling students making sure they're participating. it's no longer about lecturing over zoom. you have to really pull the students out of the screen >> and the other big question, of course, is on the wealth divide in terms of whether all kids have access to the equipment and technology they need >> that's the biggest issue that i think the world is facing right now. even in places where there have been heroic efforts to close the

digital divide to get lap tops out. new york put out 290,000 devices. miami-dade, 200,000 devices. the local telecom carriers are providing free internet access even in those situations, we're seeing a substantial number of kids not being able to engage. they may not have the support at home they may not have the right context at home. they might just need someone to be just have a little bit more oversight than they have and what we're seeing is use of online tools before the crisis they were proportionate throughout the country but as we have gone to the individual school closure distance learning, the affluent are continuing to use online tools in the same proportions as they were before but the less affluent dropped off dramatically this is something we're working on very closely with educators and districts and states around the country. >> so let's talk about what is happening with your business, sal. what are you seeing? you're a nonprofit you offer supplemental education for students online as some of the schools and districts take

they're not going to fully reopen for learning. what is your demand like >> yeah. so, you know, we're a nonprofit. our business model is funded with philanthropic donations there is two use cases of us precovid-19 as, can you call stra steejic supplement. one is independent learners, the tutor that kids use aren't country or around the world that otherwise families cannot afford and then a lot of teachers were using us even when you have a traditional curriculum, you need more practice you need more feedback teachers need a way to keep t k track of what students are doing. they all have different needs, different gaps, learn different paces. that's why we had close to 100 mi million using us precrisis then the crisis hit. our traffic was about three times as normal the. our registration from parents, 20 times normal. registration from students and teachers was five to ten times normal and we suspect given what is happening in the world going into back to school we're going

to see numbers at least that high so what we're doing is first just keeping the servers on. making sure we have the security, privacy, everything is working as intended. and then what other supports can we do to make sure that teachers and parents know how support to make sure teachers and parents lean on us even more normally in a curriculum might have five days, now two or three zoom sessions, it's hard to keep the kids engaged land have to lean on supplement like this academy heavier. >> how much progress can be made in the months between now and when kids go back to school, weeks, i should say, in materials of making that experience as close as in person is that some easy lifting? or pretty difficult? >> well, to be clear, we're not going to be able to replicate

school even when the school is doing a perfect job. so people shouldn't expect that. but there are very clear things that we can do that can keep kids learning in core subjects of math, reading and writing so they don't atrophy their skills. people need clarity right now because they haven't had a chance to think about what the circumcision -- curriculum looks like in math class two or three zoom conferences, where the student can work with the students, ideally it's interactive, teachers ask students to ask questions and teachers are there to answer questions and help students set goals and then 30 minutes a day working a-sin chronnously at this academy where we can

monitor the student's time doing work >> there's got to be a lot of studies on all sorts of things, one will be on this experiment of remote learning it's a hard choice for governors and teachers to make this fall so far the health studies are mixed for what it means for kids, whether they can transmit the virus. at this point given the trade offs on both the health front and on social front and learning and just developmental issues, is it worth it to reopen the schools this fall in this country with the viruses where they are flight? -- they are right now >> yeah, first i'm not a doctor, i'm married to a physician but i'm paying close attention to this, i'm on the board of my own children's school and the epidemiolo epidemiological data for young kids five and six years old there's not actual evidence it

spreads. and there's good precedent from many decades ago when you had tuberculosis outbreaks for the spanish flu the school was able to transition into an outdoor type of model. i think those are the type of things, if you have the outdoor space it's worth exploring especially for younger kids. for for younger kids the spread is not as obvious. outdoors safer those are students it's hardest to engage online and they need the socializing and community more than the rest of the students high school students need it too but they are more likely to be dependent and stay engaged a lot of the social development emotions have already happened. >> thank you for joining us, good to have you. >> thank you thank you shifting gears, kanye west holding his first presidential campaign event on sunday and he's already under fire for controversial comments he made

about famed ab ollishist, harriet tuanbm find out how that can impact partnership with adidas when "closing bell" comes right back 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.

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that work wherever you are. call or go online today. welcome back let's move on with earnings news >> hey, well, that's right this is on zion's bank that stock was down as much as 3 petitioners and now down just a little over 1% in after-market trading about 1.66% in after-market trading. the company reported an earnings miss that missed expectations by 3 cents per share on the bottom line so we'll keep an eye on this one. back over to you >> leslie picker,, leslie, thank you. rapper kanye west making a

bizarre attention-grabbing appearance in south carolina this weekend, apparently restarting his long-shot bid for presidency at a rally for supporters on a makeshift stage west made pretty controversial comments on race, slavery and american history listen >> harriet tubman never actually freed the slaves she just had the slaves go work for the white people. >> hard to hear but said harriet tubman never actually freed the slaves and he threatened to cancel his partnerships guys adidas and gap pushing for representation on the company's boards listen to that >> in risk or no risk of losing everything possible i am not on the board at adidas, i am not on the board at gap and that has to change today or i walk away >> he wasn't using a microphone

but he said it has to change today or i walk away, talking about boards shares of gap taking a tumble but initially jumped as much as 40% after the clothing line with west was initially announced, what was supposed to be is a ten-year partnership adidas stock soared since launching with kanye west in 2016 to really turn around that entire business in the united states as we show on this chart that we like to use. up more than 250% since yrk eezy's first drops so clearly collaborating with mccann can add a lot of clout, name recognition and trend setting and big money and share price reaction but can also come with risk, especially with consumer brands if you make statements like this, which are potentially very offensive, especially on harriet tubman adidas has no comment. we reached out to gap as well. no surprise there.

clearly, guys, kanye west and nike had a messy break up few years ago and partly was on the idea he was difficult to work with and while he's been a major money-maker for adidas, the companies are going to have to start answering questions if they're going to remain attached to him and if he's going to maintain publicly like this. >> are you guessing they're more likely to boot him or put him on the board? >> i have no idea. i know it's been a huge winner for them but i don't know the answer to that question. they're not giving me any indication of that as well i'd be surprised if he was put on the board he's a creative genius and has sold a lot of sneakers, not sure it merits a board position. >> presumably in negotiations gap knew about his history and there was risk with the reward and could have potentially

brought upboard seat if he thought he earned one. let's move on to microsoft, and tesla, names of the week. >> no doubt about it by the way very unusual to have the market up with most stocks being down watch if there's a divergence to be reconciled in next couple days. >> thanks for watching "closing bell,"" fast money starts now. >> thanks for watching "fast" coming up shares of pellegrioton sprinting and major deal in the consolidation sectors. and later the co-founder of the premier lacrosse league paul rabil with his thoughts on restarting during the pandemic back to stocks nasdaq throwin