>> no. historically it's not suited me at all i always find something that goes wrong >> what is your final trade for us today >> advanced micro, why because i am a zen guy and they've got this great thing for computers. all-time high. take it. >> thanks, everybody appreciate it. appreciate you watching. kelly, it's all yours. thank you, scott hi, everybody. here's what's ahead of us. the u.s. giving china 72 hours to close its consulate in houston that officials said was a hotbed of scyberspying. we'll tell you who he's most worried about this time. and chipotle reports earnings, spotify's legal deal and social distancing. that's all ahead for today's markets we turn to

bob pisani hi, bob. >> hi, kelly it's amazing the markets are up considering we have no immediate stimulus package coming, they're working on it, and all these china tensions, kelly, you heard them talking about it. the reason we're holding up so well, tech is doing well, so microsoft is really helping the dow today. their earnings will be out shortly. we have oil stocks generally weaker, bank stocks generally weak weaker, but look at the tech stocks microsoft, ibm, paypuyallup the -- paypal up here autodesk a good move for texas instruments. it was at a historic high yesterday. it's down a bit today. amd at a new high, teradyne and nvidia on the up side. great report from best buy

no reclosing concerns there. they have very good comments lowe's, o'reilly, home depot doing very good right now. jamf holdings, $26 today look at that up 20% here they do apple managed software we'll talk about how strong the ipo market has been. guys, back to you. >> you've been hitting on that, bob, and it is surprising. we'll see you soon bob pisani with the latest for us now the u.s. ordering china to shut down the houston consulate over accusations of spying and property theft. they vow to retaliate. eunice yoon is live for us hi, eunice >> the u.s. has ordered beijing to close its consulate in houston. the state department has said

that the reason is meant to protect american intellectual property and private information, though it didn't give any specifics the chinese foreign ministry, though, has described this as a political provocation and vowed countermeasures for what it described as an unprecedented escalation chinese staff have until friday to close shop, which from china's perspective explains a video that has emerged which appears to show chinese officials in a very rushed manner burning several documents in open bins now, in response, a source has told reuters that china is considering shutting the consulate in wuhan, and kelly, as you would expect, there has been a lot of speculation as to what the motivations could be here in china because of lack of specificity in the state department's allegations there is a lot of speculation this could be a political decision by president trump to act as a distraction ahead of the november election.

and then another popular theory has been that the u.s. is looking for a way to strong-arm china into allowing more american diplomats back into the country. there have been several negotiations, rounds of negotiations, to try to get diplomats back, and only some of them have been able to return. >> a strange situation as it's widely being described but a very important one euni eunice, thank you so much. eunice yoon live in beijing for us is this underescalation d appreciating the markets, largely shaking it off joining me now, jordan mcneill is director and drogal i'll start with you. the charges are troubling. when you have a senator saying this is a hotbed of spying and

property theft, how did we allow it to go on this long? >> thank you for having me, kelly. i do believe this should be taken seriously. to have a country close its entire consulate and only give them three days to do so suggests to me that intelligence is strong and there was something going on in the consulate at houston i will say burning documents at a consulate is not necessarily nefarious. what's strange, and i'll come back to that, is the chinese were doing this outside in the dark in the courtyard. so one would expect there would be better ways to do this than being outside in the courtyard but let me just say irrespective of what the chinese are likely to do, it is true they have already said they will exercise countermeasures. and i think targeting the wuhan consequence late is a signal

that they're not prepared to go to the nuclear option and close down a place like shanghai, perhaps, and what we know about wuhan as the epicenter of the coronavirus for the chinese is there was already a skeleton staff in place in wuhan because we extracted our diplomats from wuhan due to the coronavirus >> david, to you if the chinese closed some of the more larger consulates, what might the retaliation be and how might the u.s. respond >> it's turned into a bit of a tit for tat. we've had discussions of the u.s. taking a firm stand on china for the first time, holding of chinese carriers in the past weeks so this is, i think, just a tit for tat exchange

it's not similar to the closing of the russian consulate in san francisco back in 2017 where they burned documents, so i'm not actually too concerned about where we're headed on the consulates it makes it a little harder to do business, a little harder for citizens in that country to get the services they need, but the really big issues are south china sea, holloway, and the ability to invest through hong kong those are the big issues, not the consulates >> and dewardric, you say expect more on decoupling but if you're a business in the u. u.s., you have to be careful is anything we're describing here the kind of thing that would make a company like starbuck's and like apple rethink its co existenkpicoexise

chinese market >> i think most companies are really looking at their exposure and trying to figure out where the u.s.-china long-term competition is heading so i think companies have to take this seriously. it doesn't mean you can't find a way to do legitimate business, but to your point, if you're in the biomedical space or if you're, for example, looking for a vaccine for the coronavirus, you really have to take seriously that this is a competition space. it wasn't always that way. there was a time when disease was a positive space in china. we're beyond that now. so consulates in this sector have to be prepared to know your clients and protect your data. christopher wray, attorney general barr and the national security adviser mr. bryan have indicated that the u.s. is extremely serious about stopping what they believe to be chinese

espionage, particularly as it relates to the vaccine this has become a real serious issue and companies should take it seriously but again, i think that there is a way, there should be a way, for businesses to continue to do business without getting caught in this trap between the u.s. and china and any long-term competition. >> david, real quickly before we have to go i think it's interesting given everything we're describing and the potential for more back and forth, china's weakening currency and so forth, you are looking at it as potentially an attractive investment opportunity. tell me where and why in a nutshell >> it is a good investment they're coming out of covid better than anybody, they have a lot of good resources at their disposal the question is how do you get there? china is under pressure, hong kong is under pressure, what is the best way to get it but i would be very careful of starbuck's and others. those are high-profile targets if nationalism ticks up. >> sure, but they employ a lot

of chinese as well they feel increasingly intertwined. we'll leave it there for now, but i'm sure we'll talk more about this david riedel and dewardric mcneal, thank you. a deal on stimulus is also in the works, the belief that reopening is still picking up some steam is this a smart strategy for investors to rely on i'm joined by crumplin and jerry. jerry, let me start with you are you comfortable with the market as strong a momentum as it's had, azts tech has had a piece of it. what do you think should be done now? >> the biggest thing to do is look at how the feds' importance is and what it means to valuation. to that question, i would say if we're comfortable with that, and i don't have any reason to

believe we shouldn't be, you have a big valuation upside that still sits behind you with this entire market. and specifically the leaders themselves if you're focused on the companies that have the highest visibility and the highest probability of earning their forward estimates, boy, we still have a ways to go. it's just the nature of the market and there are several big names that are bullish here. >> he came out with his recent quarterly update where he's still bullish. much like 2009, this is just the beginning of what could be a multi-run for stocks what if that's the case, especially if it's because of fed support with valuations in some of these big companies, as big as they are right now. do you feel comfortable betting on the s&p broadly or would you be looking at tactical opportunities? >> we do like tactical

opportunities, and everyone makes a big point of how this has been a narrow market and it's true they've done very well, but we've found broadly within technology, for example, names like salesforce, spelunk, even names like visa and lululemon. i've spent more on lululemon during this covid situation than i ever thought i would, and you've got 15% growth in their sector communities and in this transitory period, it's being supported by fed, by fiscal stimulus, and i think we're finding by these earnings report, it's not great, it's not stellar, but we saw it at best buy. even j&j came out with their medical device that was down 9%

and it was expected to be down 30%. i think fear will keep us in along with what's going on, and we do need to see some additional stimulus to carry us guard as covid starts to spread just a little bit greater than maybe anticipated, but no, that's to keep us in we have a 3500 price target on the s&p for mid-2021, and i think we're prepared to take up if some good news comes. >> jerry, we've got to go. i don't know if you're also wearing lululemon, but yours include mastercard and others, right? >> focus on companies that have very little competition, very visible earning streams, and take lam because there's the arms merchant to the semiconductor. take home depot. there's really no alternative in the home space and diy microsoft is earning the war on cash, and understand that war

has been going on for a long time, along with visa. these guys have a lot of running room, and that's going back to my point that you really want to have those visible companies that have much bigger earnings expansion and advancement coming >> we appreciate you both, thank you. speaking of apple, josh lip ton sheer with news for us josh, what's happening >> that's right, kelly on monday, remember, apple ceo tim cook along with other big techies from amazon, google, facebook as part of this anti-investigation you expect from cook, apple could have many questions about his app store, for example. does that store limit choice and competition? in a new study, a commission from the analysis group defending that store and that 30% cut it can take, arguing that commission rate is largely in line with other app stores and digital marketplaces, like the google play store, the

online app store, in other words, saying the commission rate is not out of line for the rest of the market for app investors, this is all critical the app store is a big part of that faster growing, higher margin services segment. remember, the question is not just here, we'll see what cook has to say on monday >> thank you, josh lipton. bill voting against companies with too much debt, saying don't count on the fed to bail him out plus, retail will never be the same and brands can no longer depend on malls and department stores. a dying note on the sector it's hard to start with sports, but they're trying it with a new device. what it does and if it can work, ahead. this is decision tech.

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welcome back bill ackman joined the gang on "squawk box" this morning since march. he wanted to talk about his new world and the rumor that hell is

coming andrew, good to have you back. quite a lively conversation this morning. >> yes, kelly, it was. tontine holdin is the largest back to date, and that's why he came on. in total it could reach as high as $7 billion. he explained all this. >> that was a 28-minute segment and that was about a 15-second piece of it, and i want to remind people the message and i encourage everyone to go watch it i said, look, we're at a fork in the road at that point we hadn't shut down one state in the country. it's march 18th, you see the compounding of the growth of the virus. i said, look, one path is we do nothing. if we do nothing, hell is coming but i'm bullish.

i'm buying stocks. why? because i believe the president, the government, is going to shut down the country and the answer is we did something in the middle, which is it wasn't what we were recommending, which was a 30-day hard shutdown of the country statewide, every state in the country, and then a careful reopening, if you go back and watch what i said. had we done that, okay, we would be in a much better position, unfortunately, than we are now >> that was a bit of a different clip, but just to try to back into setting that up, clearly bill had made a comment back in march. it was highly publicized that hell was coming, criticized for it in certain quarters for being overly pessimistic and others who believed he was, quote, unquote, talking his book because he had a short position in the market at that time he had disclosed that short position publicly prior to that appearance, but didn't discuss

the short position on the air. what we did do, though, was ask limb this time abo-- him this ts positions on the market today and also about what positions are in his book currently. listen to what he had to say >> we are bullish on the country, but i would say i am cautious on markets over the next period of time, and we have today a short position in a high yield index. we are bearish on highly levered companies. to some extent i view that as a hedge as to whether we make money on it or not, but the highly leveraged business will struggle because uit's going to take time for the economy to reopen we have 20% cash in our publicly traded entity. >> so a bullish bill ackman with a bit of an edge on the high yield players in the market

right now. an interesting take, and of course, pursuing this back at a time when spax and these blank check companies seem to be highly popular, an addition to the marketplaces the ipo market appears to be so broken or something else that something like this would take its place or be as attractive as it is. and then, of course, answering questions about where we are in today's market, and again, some of that criticism that had been sent his way after that appearance >> it was interesting, andrew. i went back and read the whole transcript from what happened, and i think part of it is he was describing a bunch of different scenarios and doing so in such a dramatic way if you read the whole first page, you think hell is coming he said if we don't do something in 18 months, this whole country will be shut down and we'll lose a bunch of industries. when he talked about the stock which could go to zero, he said, i got bullish.

i've been aggressively buying stocks i bought restaurants, i bought starbuck's he said the whole country needs to sit at home and order chipotle neither one of those scenarios exactly came to pass, but i can understand it. people were tweeting -- mike novigratz was tweeting before the interview ended, get this guy off the air, he's scaring everybody. >> people were so emotional about that interview, and i think people listened -- i hate to say this and i get criticized for staying this -- i think people listened to what they wanted to listen to in that moment if you go back and look at the transcript, he said what he meant. i had been talking to him prior to that back in february, even, and knew that he had been short. he publicly disclosed that short position in documents that were filed with the sec and whatnot, so i know there was lots of c conjecture about what was going on during that period.

if you go back and listen to the interview and really listen, he was closer to right than wrong and here we are. >> he was so concerned about covid. that's why he was saying, we need the shutdown, this is going to be so bad hell is coming in that regard. it was almost like he needed a four-point chart or something. at least we made it this far andrew, thank you so much. we appreciate the update >> quick plug, we are going to have jay clayton from the sec tomorrow and he'll break down some news for us as well on "squawk box," so hopefully some of your viewers will tune in to that >> very good we encourage them to we'll see you then andrew, thank you. andrew ross sorkin coming up, a retail standout of nearly 95% since march lows it's nearly tripled this summer. the name and what sets it apart from the competition chipotle stocks have been on fire one analyst says she sees it

rallying another 30% from here you can always wat uchs on the cnbc app "the exchange" is back in a couple ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out.

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sue herera with our cnbc up indicate -- update. >> global coronavirus cases have now surpassed 15 million that's according to the johns hopkins count. the u.s. accounts for roughly a quarter of those cases researchers are making some good progress in developing covid-19 vaccines with many in late stage trials. however, the first use of these vaccines cannot realistically be expected until early 2021. that is according to the world health organization's executive director of emergency programs, mike ryan. and on capitol hill, federal emergency management agency

administrator peter graaynor is testifying before the house committee. he said they are ready to deal with covid-19 and the upcoming hurricane season simultaneously. you are up to date, kelly. back to you. >> thank you the high note tries to snap back and sports are trying to move into the norm all of that when we come back stay with us

welcome back it's that time let's catch you up on a few stories that should be on your radar today. it is time for "rapid fire." here to dig into the headlines for us are julia boorsin, eric

and seema mody good morning, everybody. the deal includes spotify, access to a catalog like lady gaga, drake and taylor swift it adds the label to its two-sided marketplace which that means the labels would potentially pay spotify for the market, analytical data. spot if i doubled in the past three months alone that's crazy they've been up to so much lately >> exactly and this speaks to the long-term spotify. it's not just a subscription business this is an opportunity to also generate revenue from the music labels this label universal will be able to use spotify to promote its artists. when you look at a time when there are no concerts, that revenue stream is dried up, it's really important to use spotify for sales of other things,

whether it's merchandise or event waually down the line conr tickets. >> they buy the joe rogan podcasts and people are thrilled, and they're doing this deal and people just can't get enough >> they're clearly in growth mode they said we're going to focus on growth and not necessarily making a profit. the current spotify has a long way to go in terms of getting this content on the platform think about it a couple years ago, everyone was kind of the same one streamer versus another was the same, i could get everything everywhere, but if i could only get certain things on certain places, maybe i want to give them $10 a month and not a competitor >> seema, i need something on. i don't really care where it comes from >> and apple pouring billions into its streaming platform, this seems like a deal that will allow spotify to expand its subscriber base.

i think anyone involving taylor swift is a win she's not just a singer, she is a performance icon it was in 2001 when she took her music off and they convinced her to keep it on. >> she's been kind of quiet, hasn't she is she making any more music >> she is. taylor swift is never quiet. you need to follow t. swift on instagram, kelly, and it will catch you up >> that's true, that would certainly work let's move on to shares of snapchat which is going the other way. they're sliding as they reported disappointing results. they hiked from $10 a share to 28 they say it's because snapchat dominates the 13 to 24-year-old

demographic. they did see an increase in users from last year, but i don't know, it's still pretty modest quarter to quarter. >> there is this temptation to look at the stock performance of snap and say, okay, not great. users are up, just not as much as wall street was expecting, and up about 2.5% from its recent low, so perhaps getting back some of those gains i wonder if the heat tiktok is under from u.s. lawmakers as well as other countries who banned the company a couple weeks ago because of censorship issues, if that wins back spotify that was lost to tiktok. >> you're right, tiktok was definitely the place to be by the way, i just deleted it from my phone. i did. i read the stories and i felt like -- tiktok, i'm talking about, not snap. i've never even had snap >> kelly, that's a good

question snap said it added 9 million daily users in the second quarter, but it's only gone from 4 million to 6 million in the second quarter there is a question whether that declining user growth is a function of tiktok, so that's an interesting one to watch the question of the value of snap, it's worth noting that snap's average price peruser is $1.10. that's ten cents more than expected but much better than what facebook uses on its base it could be an opportunity there, especially if snap continues to expand into this advertising and especially around e-commerce. >> eric, i am curious, you kind of look to the sports world, too. i think nfl made a big splash on tiktok a few months ago, and are they going to go to that as the platform to be, or do they feel maybe we should back off >> i think all these platforms are helpful to them right now, because you can't get people into stadiums, so the more you

can do on social, they have big presence out there, too. it's interesting with a company like snap, because 13 to 34 of the demographic they mentioned, 34 is different than a 13-year-old. that's a parent to a kid difference so these daily active users, are you getting 30-year-olds on there, a bunch of parents, or are you getting 13-year-olds that's a big difference. it's not just the number of users you're getting, it's the kind of users you're getting >> right, and i don't think they disclosed that kind of detail. >> that's what i want to know. >> maybe in the future let's talk about what's going on in the retail stocks today it's a case of two, actually three, different stories there are shares of best buy which are surging after reporting a bounce back in second quarter sales, a 2.50% jump they downgraded both to sell

saying the companies can no longer depend on mall traffic. kohl's and macy's are both down, seema, about 60% this year >> the pandemic really creating a difference between the winners and losers with best buy, a big box retailer that a couple years ago struggled with its omni channel presence and competition with amazon actually hitting an all-time high and doing better during the pandemic where it saw sales rise i guess it speaks to people at home televisions, coffee machines, computers -- what else do you buy at best buy? sound machines, i guess? >> kitchen appliances. i hadn't been in a best buy for a long time. it's one of those stores you didn't know would still be around and be so great these days i don't know why anyone needs to go to the store. they also make a lot of money selling candy right there by the

checkoutli line, but obviously that hasn't been as big in recent times >> i was going to say, that's cannotly exactly it, the strength and technology that they're selling tvs. we bought a new tv to help our work at home experience in my family, whether it's the cords or the chargers, the kind of things that best buy sells, and i think the fact that you can order and pick up same day, that is the kind of thing that is really giving best buy an advantage. in contrast you have the department stores. people aren't going out to malls, and the fact that people don't need to buy clothes, they don't need to buy pants for the zoom world that we live in, for me this is the story of the two different kind of retailers, those that are benefitting from work from home and those that are suffering. >>. finally taking the term contact sports to another level, they are taking to a tech firm

to monitor their social distancing i wonder if this could come to other parts of the business world, not just sports >> the company, it's spelled with a k in konnection, it's a german company they chipped their recent devices because of the coronavirus. it's the size of an earbud case so it's pretty small it will be used in the nba and the nfl. it will be mandatory for everybody, including players it will even be embedded in their shoulder pads during games. when you're coming in team facilities and you're playing games, the whole idea is if you get too close to other people, it will beep or silently keep track of who you got close to, and then they can use this to figure out if you have covid, who did you get close to in the past five days, 14 days, whatever that is in the nba's case it's optional for players, but everyone else in that bubble, they will have

it as well you can even just slide it into your id badge holder, for example. again, this could apply to any workplace, not just a pro sports thing. >> that's what i think one other question, though, are they going to require people to wear this all hours? if they do, that's super creepy, and if they don't, you're missing a huge batch of information and potential contact if you're trying to figure this out. >> in the nfl case, it seems like you would get this upon checking into your workplace and then you would give it back to them at the end of the day and they would disinfect it. but every organization, for getting sports, any company could have their own rules for how they want to do this usually it's hard to enforce someone to wear something when they're not on the job generally it's on the clock type things and to be clear, these are not gps trackers, these are proximity trackers if we're very close to each other right here, if we're close to each other 100 miles from here, just know it will track it

>> i think julia wants to wear one. >> i do. i think it would be invaluable just to understand who you've been in proximity with the longer this pandemic drags on, the more important it will be to have this technology, to have it on our phones, have it accessible you could turn it on and off when you leave your house and know who you've been exposed to. >> i'm skeptical >> honeywell, a publicly listed company that reports earnings tomorrow, they also have a sensor to what eric was saying it not only regulates physical distancing, but sensitivity to what you're wearing. coming up with covid cases continuing to spike and the extra $600 unemployment benefits said to run out next week. precious metals, gold is the highest we've seen it.

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welcome back the extra $600 weekly unemployment benefit will finish by next week if congress doesn't take action first. some people think it would get people back to work. >> we asked each state if they track refusals to work, most say they do not, but at least a dozen do alaska said it's had 1123 refusals, colorado 3900, tennessee, 3813. some people are citing as a reason making more at home than at work. that, by the way, is not an acceptable response and will

most likely get you kicked off unemployment there is research that says two-thirds on unemployment are making more than their prior earnings here's the thing we know last month 4.8 million new jobs were added, so this is really just a fraction of the millions of people returning to work and guys, the thorny issue is there are suitable reasons due to covid to refuse work, one of which is your health if your doctor tells you you're immunocompromised, you can turn down a job offer the other is lack of child care because schools are still closed both of those things still very much a concern for people with schools refusing to open in the fall and spikes still flaring up around the country, guys >> rahel, thank you. rahel solomon. as that spike holds reopening of economies, congress is considering another round of stimulus to bolster the economy. cnn is waiting for suggestions of what should be included in the next bill. cnbc contributor, steve, it

always sounds a little sinister, but we're talking about what they think will get america back up and running as quickly as possible, right? >> that's right, and ceos are americans and they want what most americans want. they want to beat the pandemic they want to beat this thing, get it behind us, rip the band-aid off, do what needs to be done. if we need testing, if we need masks, if we need to close, do what needs to be done, but we cannot have uncertainty. second thing is they want to provide relief to citizens and economic sectors that continue to be adversely affected if you don't provide that form of relief, you're going to create a demand-based recession because there won't be the ability to re-engage third thing is we want to get back to work america needs to work responsibly, safely, but you've got to shift the responsibility for growth from the government back to the private sector where it belongs kelly, we've talked about this before, but there's a lot of concern about bankruptcies you have these zombie companies

living off the government life support running around half dead there are thousands of these a lot of them are small, but whatever it is, we got to get people back to work. >> i think it's interesting here that ceos generally favor extending the extra unemployment benefits, and that's because they think it would hurt the economy more to stop them than it would hurt their own ability to get people back to work >> well, there is a concern, as we said, as you said before, about the amount and so the ceos would like to see the amount reduced, they would like to see it scaled to means. right now i think the numbers you just put up are what everybody is quoting, that two-thirds of the folks are making more by staying at home than they are at work, and i think the numbers are being underreported. so you can't hire people in restaurants today because they would rather stay at home. so one of the things is that, you've got to do this short-term and get us through this thing. second thing is there need to be limits on liability. how can you open a company if

you're just going to get sued? if you talk to trial attorneys, they're lining up here waiting to sue companies you also need to extend the paycheck protection program, especially for smaller business and minority-owned businesses that are the most vulnerable and then the final thing is child support and early childhood. these are small businesses unto themselves, and they have been killed through this because they haven't been allowed to open >> we experienced this firsthand trying to figure out, take them to daycare, don't take them to daycare, and so forth. there is one thing that's interesting. as you guys are pushing for those ppp loans, we're talking about businesses, ppp loans of less than $150,000, you think should be forgiven why is that? >> the problem is when these small businesses come back, they will have to rehire, they will have to reinvest, they will have to increase their operating costs for cleaning well beyond anything they've ever done before it's a small portion of costs for a big business, but for a small business it's a high

proportion the idea here is the ppps are being forgiven, right, up to this point, if it's used for payroll and operating expenses we're just saying continue to do that because it puts people back into a footing where they can go back into business otherwise they'll have to get other loans to cover these loans or take out credit card -- it just is going to create bankruptcies, and we have to get beyond that. there is a lot of stuff going on here that is being artificially buoyed by government transfers to households. we've had a $3 trillion annualized rate since covid started, and you've got delinquency rates on loans and properties and so forth. if you delete those government transfers, personal income is actually down 30% versus pre-covid. that's significant and we don't want a demand-based recession. >> absolutely. steve, thanks so much. we appreciate it >> thanks, kelly >> steve odland with the conference sharing his thoughts on what should be the next stimulus package chipotle slightly up after

the earnings today, and we'll tell why glitter and guac could be the key to whichchipotle's f success. we're back in a couple

chipotle has been consistently hitting highs as of late indicate rogers has the key figures to watch. >> analysts are projecting eps of 35 cents on revenues of $1.34 billion. same-store sales are projected to decline 11.9% per street consensus, but some analysts think the company will surprise with better than expected,

thanks to digital sales growth that will be a key focus this quarter as well as commentary around consumer trends who will the trends look like as cities and states begin to reopen chipotle continues to grow its digital footprint. pick up shelves and stores in the 100th chipot-lane. nicole, it's good to have you here first of all, this stock -- who would have thought it's a stay-at-home stock can that benefit last, no matter what happens with the pandemic >> yeah, this stock is going from recovery to absolutely accelerate into growth mode. it's our highest conviction

investment recommendations, and it really has been a digital footprint. thinking about everything being taken off premises today, or delivery in the marketplace or rapid pickup, they're doing $2 million out of those boxes that had be 50 to 100% more of their peers. so tell me about glitter and guac. >> absolutely. one of the really cool things we noticed this quarter was management and the team creating access but they met their team population they have a shop i fit relationship which has their farmers to their consumers, and i even think there's more access points with their expansion in the delivery marketplace, so all

around, very cool community presence this quarter. >> i'm excited for the lemonade, but i do wonder if they need to accelerate some of that are -- cauliflower rice has tested out. if that becomes a drag at all on that investment or earnings,ing in like that >> well, that's what the consumer wants, chipotle can deliver. i think we want a bit of the sure thing that being said, i think it's about the innovations they'll have think about direct delivery as an example, where they have done a great job with the direct relationship through their own platform, getting the customer data that would be a great place to launch a new product when they do it on the digital -- it hits the front line, and it's a smooth

operation all around. >> kate had pointed this out a few weeks ago, but because of digital, they're having to hire more in order to keep the process efficient for both digital and in-store, it's labor intensive does that become a longer-term headwind >> i don't think so. it's a practical investment the four-wall economic model has alleges been center ed centered special at the store level, absolutely is shared by employees that interact front line with the customers, so i think it's a great investment. it doesn't hold back the p & l in a sense those will be digital dollars they're going to bring in. if they're a rapid pickup order as an example, they can be higher than an in-store order at the point of sale. of course, delivery can be

lower, but net-net, they're both growing hundreds of percent. and even with the labor. anything anything could derail that anything that could change your mind >> we love this team and we like what they do to the community, for employees, and we think they'll also talk about a return to flat comp territory we think it will be a great, clean quarter. nicole miller reagan, we appreciate you joining us. tomorrow chipotle's ceo will join us. that does it for us today. coming up next hour, we're told why housing is defying gravity whether the market is getting

overheated jn tyler mathisen for that on "power lunch," right after this s models. experience amazing at your lexus dealer.

. markets higher today, shaking off rising tensions with china, an uncertain path forward. vaccine hopes have been boosting sentiment, at least in part. check out pfizer and biontech, and it is the moment of truth for tesla, the electric vehicle maker lays it on the