final trades, liz young? >> esg stocks. >> john? >> mattel, m.a.t >> steve weiss >> xpp >> jim? >> marathon petroleum. >> kelly, appreciate the extra 20 seconds >> thank you very much, scott. new jobless claims increase for the first time in four months. this as the extra $600 jobless benefit is set to expire in days treasury secretary mnuchin said

it won't be continued in its current form where does that leave the recovery and the markets dow is down 116. we'll debate. and senator mark warner on what he's pushing for in the next round of stimulus as a former tech executive himself we'll ask him about these calls to break up big tech. and shares of chipotle are slipping despite an earnings beat and record sales. ceo brian niccol will join us with what the fast food chain has to do next to keep delivering post-pandemic we begin with the markets. seema mody is here for that. >> we're looking at stocks right now off the lows of the session, but still in negative territory with the dow down 116 points the session low was down 174 the nasdaq is the worst performer today so far weakness in names like microsoft, amazon and apple. that's reflected on the sector level as well with technology being the biggest laggard along with consumer discretionary and communication services on the upside we have financials and utilities up fractionally on

the day. turning to gold, hitting the highest level since 2011 amid continued its move to the upside here, up another 1.5% year to date up 24%. >> it's a monster mover. we'll talk more about that let's dig into the jobless claims figures, they're rising for the first time since march 1.4 million more people filed for unemployment benefits last week that number doesn't fully capture the fallout from the pandemic let's bring in steve liesman steve? >> kelly, thanks traditional jobless claims continue to run at an elevated level suggesting that the labor market remains challenged. another measure that has not received much attention shows the total problem is nearly twice as bad as just following that traditional measure federal pandemic unemployment assistance that was passed with the c.a.r.e.s. act made contractors, gig workers and freelancers eligible for unemployment benefits for the first time the latest available data shows as of july 4th, 13.1 million

people are receiving pua and that's in addition to the 17.1 million on continuing claims, traditional traditional claims put it together, more than 30 million americans are receiving some form of unemployment benefit right now. and the latest data shows that pua rose by nearly 1 million in the last week, all of this pinning a worrisome picture of the jobs market. gregory daco writes the labor market remains in a precarious place as covid-19 numbers surge in some parts of the country job losses in the july employment report are possible we don't see a systematic surge in either indicator with states with surges in covid cases in the latest week, claims were up in california but down in texas and florida. what we do know, nationally the situation has not improved >> we now have kind of a

trifecta of high frequency numbers that are flat lining a bit. we have the jobless claims, we have restaurant bookings, we have the tsa numbers, number of which are showing the improvement in the last couple weeks that they were showing a month or two ago that, i think, would suggest the economy is losing some momentum here >> i think that's right. i think you're right to look at those pieces of data tsa is running at 22% of last year's level as of the latest data that we have it had been as high as 28% open table data is at 65%, about flat lined the jpmorgan credit card spending data is also going down the high frequency data is in two different states, one is flat lining or declining the idea is that the july jobs number could be negative and i don't know that the market is prepared for that. >> it's weird. we'll talk more about that with our markets panel. thank you. with jobless claims picking

up,all the other factors he mentioned and uncertainty over what additional stimulus could look like, will these market gains also stall out let's bring in kim forest from boca capital partners, randall elly from edgar lomax company and lindsay piexa from steifel randall, does the fact that the market is shrugging off that flatness lately tell you that there's something fed -- you know, that the fed is driving the rally, it's not based on fundamentals, it's become divorced from reality? what are your thoughts >> i wouldn't say it's becoming divorced from reality, but i think the fed is primarily driving this rally for an investor, that's not necessarily bad. what a long-term investor wants to do is get safe, long-term returns and to make sure that that person is getting good relative returns

you're just not going to get satisfactory returns elsewhere >> it's a fascinating thing to hear it put that way it's not necessarily a bad thing if it's fed-induced. their job is to respond to the pandemic with support in the economy. the fact that the retail etf is at a multi-year high back to november 2018 today is shocking given we know this is one part of the economy that is overall hardest hit, even though a lot of smaller companies are not captured in the index. >> right i think, you know, investors are not wrong to put their money there. people still buy things. i know we've been focusing more on, you know, what the shorter-term purchasing prospects are going to be. and that has a whole lot to do with stuff you do in your home and, you know, that's probably well represented in that etf

so i think, you know, you have to go to where the spending is and the fed is providing a whole lot of liquidity and randall did point out that there is really no place else to get these kinds of returns that is what drives investing. >> lindsay, let me bring you in on that. do you expect the fed to keep providing the amount of support that it is right now will that amount increase like david zervos has been calling for, especially if they sense there's some kind of issue developing here that we're losing speed >> i think right now the fed is likely to remain steady many it their current policy position. the fed has been clear the biggest threat to the economy is a resurge jenlgence of the virus if we continue to see the data deteriorate. we did see a pick up in jobless claims but we've also seen some improvement in other data points, on the consumer side,

the income side, the housing market if we see that data deteriorate, it's likely that the fed is forced to step up with additional programs, with additional forward guidance. but at this point the fed is likely to remain steady at the upcoming meeting >> which there will be plenty of focus on that if they were to do anything to surprise the markets. again, investors don't seem too jittered now you guys are tactical investors. where do you think are good bets right now? >> i think the opposite of what you see the market doing i think it's the traditional value stocks such as -- such as a pfizer, an at&t. this is pfizer even after that big 5% rise yesterday. but the stocks that are paying high dividends and they're solid. these companies provide goods and services that we have to use. and they may not excite the imagination of most people but

in the long run a stock investor gets the net worth of a company, that person's proportionate share and a rise in that net worth. so we like to buy what we can purchase for low prices and just patiently wait until the market realizes >> what would you say to people who say, no, we want to be in big tech, that's where the growth is, that's where the future is. it's making the whole economy more productive. what would your response be as an investor to that? >> we want to keep those low value stocks i hope they don't put all of their money there. there's nothing wrong with high-tech companies. take the biggest five companies market value wise in the s&p 500 that are mostly tech, such as microsoft, apple these are great companies. no one should put all of their eggs in one basket, so to speak. in the long run i think good, long term returns will come from a disciplined approach to paying

relatively low prices. >> kim, you are favorable to some of the names in tech. again, maybe the ones like randall is describing don't quite excite the imagination >> my play would be in 5g. it's a long-term thematic play, and i believe it is going to change if not our individual lives, it will change corporations lives to get tons and tons of data on a lot of -- we'll just say information out in the field the infrastructure that needs to support it has to be built now so things like semiconductors, some specialty materials, and certainly software that's going to run on top of that, those are all areas that i'm looking at to invest in. >> great lindsay, finally before we go, is it your expectation that we might see a decline in the jobs

report for july when we get that number >> absolutely. i think what we do know for certain is that the labor market is incredibly fragile. yes, claims have come down from that peak, they were leveling off. we saw a bit of a back up this morning. and we did add jobs over the last two months. but taking a longer-term view, we're still talking about a net loss of somewhere between 15 million and 30 million jobs in the u.s. as we see the cases of covid rising across the country, particularly in the southern and western regions, this could very much lead to a second round of layoffs. so the labor market is not painting a solid picture for the overall economy as we look out to the second half of the year we could see that weakness seep in to the non-farm payroll report for july. >> all right thank you all for your thoughts. some communities have been hit especially hard by the pandemic my next guest just introduced a bill that proposes nearly $18

billion in new funding to help those communities hit hard by covid-19 for more let's welcome in senator mark warner of virginia. good to have you back. welcome. who in particular would benefit from this bill and how would it work? we are at a time when we've seen plenty of money thrown at plenty of problems in decades past. tell me about your approach and why you think it would work. >> the communities that we all know that have been hardest hit, both health care wise and economically have been black americans, latino americans. we've seen numbers that show hospitalizations four and five times higher for black americans in a state like mine, our latino population is about 9% yet 45% of the covid cases currently are latino so you got this health care disparity playing out, but at the same time we have this economic disparity we know the wealth gap that exists between black businesses, black families and white

families we've seen this play out as well ppp, close to 6$600 million dlbo support small businesses, it's been a lifeline, but because that program depended upon a business's relationship with a bank, it meant that many of -- again, black americans and brown americans who own businesses but oftentimes have built that business without an established banking relationship are not able to participate. so we're looking now as these support programs start to wind down, we're looking at 2.7 million black-owned businesses in america already 440,000 of them have gone out of business and my feeling has been how do we not just give a little bit of additional grant money, how do you actually increase access to capital for black and brown communities in america the tools and the distribution model is how do we support black-owned banks and community

development and financial institutions, cdfis, 1,100 of them around the country geared towards spending that extra time in originating loans into low-income communities our plan, it's been built upon existing plans that have been used for larger institutions, says let's go ahead and get about 2$2.8 billion in grant funding, some of this through technology upgrades, $7 billion in tier 1 capital. then $8 billion in a fed relate vehicle that would allow as they institute new loans to sell off the new loans. your previous guests spent time talking about the fed propping up the market on the corporate side, i think it's appropriate timing for the fed to help the communities that have been disproportionately hurt economically the good news is that -- i know you're moving me along >> a three-minute answer, it's

hard for me to get another question in. go ahead >> i think the administration will be supportive >> and $18 billion, we're talking about spending $2 trillion in relief here. i would be surprised if people came to blows over $18 billion for this particular program. i don't mean to shift so abruptly but i have to now i do want to ask you about this issue that's right up your alley. it's the war on big tech that's been building here the drum beat from congress to take action against these internet giants keeps growing louder today social capital ceo chamath palihapitiya called on you guys to slow down >> we have five companies that are sucking up all the oxygen. they do that not just economically but now as well politically, and in all of that i think there's a huge incentive to legislate at a minimum to slow these companies down. >> i know you called on your colleagues to launch an investigation into twitter in particular after that recent

hack attack. what further steps might be under consideration? >> let's break this into two bucke buckets. one of your earlier guests talked about the enormous possibilities that live in 5g. i was a telecom guy for longer than i was a politician. i agree 5g is a great year, but this is an area where america ceded its lead to huawei and other companies. we need to build up our capabilities on 5g again, america would have led in setting the regulatory framework. we've not. we passed on the privacy legislation that europeans passed, gdpr and california passed we need do that on a national basis. we need to be concerned about further consolidation. the google fitbit merger for example. we have to look at that. i also think we need to have data portability with these companies. if you're tired of how you're

treated by facebook, you should be able to easily move your data from one platform to another and still be interoperable with your friends who stay on facebook that was a tool that was used in telecom when we had number portability. we ought to have the same kind of portability with data >> sure. it sounds like you're saying there's no sense that we need go in after the fact and figure out a way to kind of carve pieces out of these tech companies, and do something it would be somewhat unprecedented but not completel unprecedented. >> i'm not there yet a number of my colleagues, democrats and republicans alike, they are into the breakup mode you have a lot of attorney generals across the country filing antitrust suits my concern on that, if we simply come in and break up, that these american companies could be replaced by the alibaba, tencents, large chinese tech companies. if we don't put rules of the road in place, i would not take the antitrust actions off the table.

my fear has been these tech giants are been able to stop whether it's privacy, whether it's having consumers know the value of their data, having this data portability, certain commonsense rules. we've not been able to pass legislation that says if you are going to put a political ad on to facebook or google, you should have the same disclosure requirements as you have on cnbc that seems like a no-brainer >> senator, thank you. >> thank you coming up, an interview with brian niccol chipotle's stock down a little today but up 35% this year can the company keep it up and a world of hurt, that's how one casino executive describes las vegas. we'll check in on the sector. and one hotel offering free rapid covid tests to lure customers. would you check in that's ahead in rapid fire we're back in two.

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bottom lines but the stock has been a monster year to date. kate rogers has a closer look at the quarter. >> chipotle beating on the top and bottom lines for q2. same-store sales declined by 9.8%, and they continued to improve turning positive in june up 2%, and up 6.4% month to date digital sales hit new records in the quarter, increasing 216% to 60% of sales as consumers favor carry-out and delivery in the pandemic the stock is up just under 40% year to date joining us now with more on what the rest of the year has in store for chipotle is the chairman and ceo brian nike ccnl thanks for being here. >> thanks for having me. >> let's talk about this digital number, up 216%, the highest level you've seen so far what has new customer retention been like in terms of digital sales and how can you continue to monetize that group moving forward?

>> yeah. it was really an amazing quarter from a digital growth standpoint and the way our restaurants were able to operate in this environment. you know, as you mentioned, we did over 8$825 million in sales, and we brought in a lot of new customers to our digital system. the thing that is great is those new customers that came in experienced delivery, they signed up for our rewards program, now our customer database is up to 15 million customers with a heavily skewed area to new users. we found out a way to interact with them to better understand what they want from chipotle >> your dining rooms are starting to reopen, albeit with limited capacity, not only at chipotle but with other restaurants we're seeing a gravitation towards carry-out and delivery is that a changing consumer behavior, something that will stick with us even after the pandemic ends or do you think they'll be ready to come back into dining rooms and when

>> i think you're seeing some consumer psychology. they want to make sure they can go out, get their restaurant experiences, but they want to do it in a safe way right now the psychology is they feel better about either eating outside or getting it to go. we started to open our dining rooms. it's got limited capacity. there are some folks that are totally comfortable already sitting down and eating in the restaurant but a huge majority are still pushing towards the idea of take-out or eating outside, making sure they have the space so they can feel safe. >> brian, it's kelly here. i'm curious about digital ordering it's something that kate flagged earlier when you were hiring 10,000 people and looking to expand chipotle and how much more labor intensive those are do you expect the high amount of digital orders you'll have in the future will mean you will have more workers not fewer? >>y yes the thing to think about is those chipotleans come off our

digital kitchen, which is a dedicated team every one of our digital orders is our best margin transaction so that is incremental labor that, you know, is dedicated to really high margin transactions. and, you know, we love the idea of hiring people to support an access point that at the end of the day is incremental sales and some of our best margin transactions we can have in the business >> understood. i'm also curious to some of the trends you saw in the quarter. customers ordered more stake, bottled beverages and burritos why steak and burritos do you think? >> there's been an undercurrent, people want additional comfort in their food. i think burritos provide that comfort. and steak goes a step further. so as we talked to customers, they love the idea of, you know,

putting steak in one of our warm tortillas, you know, i must agree, it's special to have a burrito from chipotle. >> to follow up on the menu, you're innovating inthis climate. a lot of restaurants have taken a pause. you are testing out the cauliflower rice, what has the reaction been to some of these tweaks >> we're using our process to validate these new initiatives we launched tractor beverages into our restaurants, that's beverages that match our food ethos. and we just put into test cauliflower rice the response has been really excellent. a lot of customers have been asking for us to provide cauliflower rice as a solution it's on trend with how people want to eat. we'll see how it goes in the test, but we're a couple days in we're happy with how our operators are executing and the customer feedback we're getting on it. the quesadillas, to do it in our

digital kitchen is something that we think is a huge unlock for us because it provides a way for us to present invasinovatiod engagement with our digital business with dedicated menu items. we know one of the biggest requests we get is to get a quesadilla from chipotle we can do it in the digital business with the scale that we have, give people a great experience, give operators the ability to give people a great experience we're optimistic about where we can go with that and it opens another door of innovation for us >> you are not just testing menu items, you're testing out store formats. you have the pick-up shelves, the pick-up windows. what do you think the store footprint mix will look like >> we are exited about our chipotleans, it provides another access point and it gives us flexibility in the restaurants we build going forward we want to build a portfolio of restaurants that regardless of what trade area we go in, we

have a solution to serve those customers the best you heard us say we hit our 100th chipotlean we're in the process of doing remodeling to see how that performs early days that looks positive i think over 50%, 80% of what we're trying to put into our pipeline going forward will be these chipotleans. we're excited about bringing that physical experience to life for team we think we can double our restaurant count and this gives us more confidence to do that and maybe even go beyond that because now we have solutions that could be order ahead only, maybe an in-line execution we can provide a chipotle burrito experience just about any way you want it and we'll be able to extract maximum chipotle experiences out of every trade area in america. >> great brian niccol, thanks for joining us congrats on the quarter.

>> thanks. very proud of the team >> double the number of chipotles, that would be -- that would be maybe enough for me to find one when i'm on the road. thank you both coming up, what yelp can tell us about where covid might spike across the country and the main street lending lag. the problem one harvard economist sees you can always watch or listen to us on the go on the acnbc app

. welcome back dow is down 162. just off the session lows. declines across the board for the major averages the nasdaq is down 1.4%. retail, precious metals are a couple of stand-outs lately. sue herera has our cnbc news update here's what's happening at this hour. the nfl team in the nation's

capital will call itself the washington football team for now at least as it continues to look for a permanent name to replace one that was widely seen as a slur against native americans. the head of the world health organization is denying accusations by secretary of state mike pompeo who said the w.h.o. has been improperly influenced by the chinese government 59% of americans plan on canceling their gym memberships post pandemic, that's according to a td ameritrade survey because the pandemic helped them find more affordable ways to get exercise you are up to date that's the news update at this hour kelly, back to you >> thank you very much well, casinos are in for a world of hurt. the summer has been a bust for movie theaters and one hotel will pay for your covid test that's in rapid fire after this break. and i asked this question yesterday. >> is it been quiet on the

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welcome back let's catch you up on a few stories that should be on your radar. it's time for rapid fire, here are robert frank, contessa brewer and mike santoli. twitter is seeing a nice pop in the shares today it was a mixed bag of results the big headline, user growth.

a 34% jump in growth year on year, that offset its drop in ad revenue. shares are up about 6% the stock is aiming for its first four-week winning streak and is up 35% in the past month. it's just interesting to me that that is enough to drive such a big stock price reaction >> yeah. i think it was not really placed in that basket of companies that were obvious stay-at-home shut down plays, beneficiaries of people just sitting there with their phones i think the user growth was the element of the upside surprise now, keep in mind the broader context when it comes to twitter and its share price, it's up to about a $30 billion valuation. it reached 35 billion or $36 billion evaluation shortly after its ipo six, seven years ago it's had these periodic phases where it would have big walrall. people think they'll figure it

out. the key phrase is monetizible daily active users will twitter succeed in getting traction on the advertising side with these new users >> it is interesting because they said they did lose brands they also said that returned once the protests subsided >> here's the thing about the twitter user and advertising side twit hear become more populated during the crisis. i notice more people on twitter. it's also become a bit more poisonous and partisan you will just -- >> just a little >> yeah. you post a picture of manhattan sunset, 20 people saying democrats have ruined new york other people are saying trump ruined the country and it's just a sunset i wonder where the advertisers, especially heading into the election will say this is not the environment right now we want to be in. so i wonder whether that is worth keeping an eye on, whether just the environment of twitter is going to allow them to increase the ad rates and the number of ads they have.

>> totally fair point. contessa, hold the thought, i'm coming to you for the next one >> all right >> a, m krshgamc is pushing bac opening date from next week to august i was going to ask you how comfortable do you think you and everybody would feel about going back to the movie theater of all experiences right now? >> about as comfortable as i feel getting on a plane right about now. they're going to -- i know we'll talk about casinos, but what does it mean if you have to have socially distanced audiences movie theaters make their money by packing them in can you raise ticket prices enough to make up for the people that you can't put in the seats so you can have social distancing to do that you need a big draw movie which makes sense why some of these big-named movies will be direct to streaming release

>> mike, not to be too vicious about it, but amc has to make sure financially it can stay a going concern. i'm surprised they're going to try to open theaters this soon i wonder if the mid-august date is feasible or not >> i think if you're in that situation, you're doing nothing but burning cash maybe you just want to do it as a gesture, try to get any cash into your pocket you can the other issue is as long as -- if we have this prolonged period of quasi shut down around the country, there's no production going on what does 2021 look like it's not like a lot of them are sitting there waiting to get back in theaters >> that's a great point. nothing in production now. that's true. we mentioned vegas vegas is in a world of hurt according to the president of las vegas sands after they posted a 97% drop in net revenue versus last year didn't help the bottom line. contessa, they're putting up numbers that, like, your local

casino would normally put up >> instead the local casinos in some cases are going gang busters and making more money this year than the same quarter last year depending on where they are located when you look at las vegas sands, normally it makes most of its money overseas this quarter about -- more than a third of its revenue came from las vegas. it almost matched what macau was doing. singapore was open for seven days and only to select members in this particular quarter there's a lot of focus on las vegas here when they start saying -- there's no indication that the convention business is coming back conventions drive that support for midweek hotel rates. it's a gloomy, gloomy outlook right now. the other competitors in las vegas strip are likely to report something similar even if they're not as candid about it you have to wonder about these other destinations like orlando, san diego, chicago they all thrive on convention

business as well and tourism if you're not seeing those air travelers come back, if you're not seeing tourists come back, it's hard to imagine how the destinations fair. >> robert, you're plugged in with the business traveler set what is the mindset there? we have heard -- i remember talking to the ceo of one of the financial services firms who said we won't have the same amount of business travel in the future as we had in the past, we learned we can do some of this remotely >> yeah. i don't see business travel coming back any time soon. part of it is the virus but also just what technology has allowed people to do just take the top of the segment which is the private jet business which has traditionally been half business, half leisure. now it's over 90% leisure and some of them even or even ahead of last year, just on the leisure side so a lot of these companies that depend on the top business set are now shifting their model the private jet companies are not expecting any business from the corporate side at least until well into next year. >> robert, here's my question.

my son likes to watch planes in the sky now. we were thinking about taking him to teterboro i don't know if there's planes taking off from there now. >> there are a lot of private jets the private jet -- the commercial i industdust industrg at 25% of last year. private jet companies are running 85% to 90% they're almost all the way back. new customers are up 80%, 90% from last year a lot of planes at teterboro right now. >> we'll see through with every other 2-year-old on the block. yelp searches for restaurants and bars could be the new leading indicator for areas on track to become the next covid hot spots yelp data shows the ten states with the biggest spike in covid cases in june saw more than a 50% increase in restaurant interests, gyms, bars and night life in may. it's both -- i don't know what you do with this information you know that use the improperly, this could become

some way in the future that authorities say we're watching the yelp searches. sorry, we have to shut it down >> obviously it's a measure of potentially the overaggressiveness of some reopening efforts and consumer behavior was a bit too reckless. what i do think is it also tells you -- this is why i think the market is not more disturbed by the high case counts it's like we kind of know the formula for getting things under control. if you see that this is really the mean variable that causes the big spikes or seems to be associated with it, then we know what behaviors to try to crack down on. it seems as if -- even though you would kind of lament the trend, you would also say it's the formula for figuring out how to unwind it >> it was also interesting to look at the fact that they can also -- they can count the number of businesses that have been hit the hardest i wonder if that argues for some

kind of, you know -- you know, if bars and nightclubs are the ones hit the hardest, shouldn't they get the most relief from the government now >> yeah. bars, nightclubs and gyms. you know, there's no prospect for opening gyms in any of the northeast states any time soon i talked to a lot of gym owns who are just -- these are small gym owners who are just struggling because there's no timeline and no guidance on when there will be a timeline so, yeah these are -- gyms, bars, restaurant, these are the small business owners. for a lot of these states there's no indication on when they're going to reopen. i do agree that is the problem for where a lot of these states saw increases but also why government aid needs to get to them faster than it is now >> restaurants, too, some of the retailers. speaking of which, one hotel in maine is trying a new promotion to attract customers it says it will pay for rapid covid tests for two adults if they stay for several days now, the other -- there's so many interesting quirks of this

story. one of them is the hotel owners say don't tell us the results because that would violate hippa guidelines >> not if you want to tell the results. you're free to tell the results to whoever you want. they just can't go into your records and find out did you ever think that we would be dangling medical tests as a way to lure people in to a hotel? but they have to do it because the bulk of their business comes in from massachusetts. think about boston people trying to get out of dodge for the summer right now there's a 14-day mandatory quarantine so you would have to stay longer than 14 days in maine, say in your hotel room not doing anything before you can go out unless you can prove that your test came back negative. that's why this works in this case otherwise apparently they hold a big sign up that says you can't get there from here. >> but here's the catch on this. so they're actually -- the hospital this hotel is working with, they do give you the test in 15 minutes, but what they said at the bottom of the story,

there's a ten-day wait to get an appointment to get a test. so you can either quarantine for 14 days or wait almost 14 days just to take the test so you're not winning in the end despite this promotion >> if you stay at the elmwood resort hotel it's a win-win for them maybe they should say if the test comes back positive, we'll let you stay free for two weeks. >> it's a clever gimmick do you think they're celebrating the fact that people from massachusetts are not coming as much as they used to >> i think they're thinking unless they're dependent on that massachusetts dollar, so those people are different than maine in general i know having gone to junior high and high school in maine, there might be some relief from flat landers that is coming in handy now. >> maybe they're appreciating their massachusetts neighbors for the first time bringing everybody together. >> maybe that's true yeah >> doubtful. thank you guys appreciate it. that's it for rapid fire today

still ahead, congress continues to debate the next round of stimulus, we'll drill down on why the fed's main street lending program is not working. as we head to break, stocks are at session lows. the dow is now below 200 points. there's a selloff of about 250 right now, approaching 1%. we'll keep an eye on it. back after this. ♪ ♪ ♪

welcome back here's a look at what's going on in markets we're at session lows. seeing a bit of a selloff, a pick up in steam the last 20 minutes or so. the dow is down 270 points it's a 1% drop same for the s&p which is down 33 the nasdaq is down by 2% today that's a 218-point decline it's back below 10,500 still there are plenty of movers to the upside. pulte homes climbing today new home orders beat estimates,

and in the release the ceo said new home demand has clearly rebounded. shares are up more than 4% whirlpool is higher on an earnings and revenue beat. they revised their growth and sales guidance higher. the fact they gave it at all is remarkable they still expec remarkable whirlpool is trading up 9% on all of that. shares of auto nation are gaining on an earnings beat. the company saying it plans to build 20 new stores over the next three years there's a positive sign in retail auto nation up 8%. the feds main street lending program has been operational for more than two weeks now. it hasn't gained the traction that ppp did a top economists explains why he says the fed program is too stingy and what needs to be done to help main street, next. stay with us ♪ come on in, we're open.

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welcome back as congress debates what more is needed to help the economy recover, the fate of main street hangs in balance as a growing number of companies file bankruptcy a recent op-ed says the program was too stingy in the first place for banks and borrowers. it's great to have you here. welcome. do you think this was the fed's intent >> kelly, thank you for having me on. i think we need to put this in further perspective. this money was appropriated almost four months ago in the cares act by the congress.

$454 billion which was anticipated with bad lending for $4 trillion. as of the moment, small business, as of last thursday, wi we'll get some data today. has received one loan for 12.3 million. many small businesses have failed and they continue to fail this program is not successful and needs major revisions. congress should order the secretary of treasury to revises the terms and work with the fed for a better program >> it's interesting because it was surprising to me it took so long for them to get off the ground and for all the criticism of the ppp program, at least that got up and running very quickly. the money got out very quickly and we heard time and again business owners who those funds have helped stay afloat. there was criticism of ppp it was the wrong people took it. the wrong terms were this.

the terms kept changing. the fed wanted to do this whole comment period to make sure that it did it the right way but again to your point there's a difference between taking your time and learning from mistakes and between acting as if you don't want any of this money to get out into the economy >> right these programs are not the same. there's a big element of forgiveness if you retain employees. main street is a lending program. it's not a forgiveness program the other major difference is that ppp was designed for really small businesses 500 employees or less to cover just core expenses like payroll. many businesses are over 500 or mid sized up to 15,000 they have lots of other expenses other than payroll those businesses could not use ppp to cover those expenses. that's why it was so necessary

main street should have been rolled out really in parallel to ppp. >> i could still see people's point if they said it's perfect because just as ppp is rolling off, here comes main street. their targeted at different kinds of audiences you could see main street stepping up into the void now. we're talk about a slowing of the economy. when brooks brothers filed bankruptcy, the ceo said i wish there was something for us to tap to avoid this outcome. riepgt now the banks say it's not even in their interest to be involved in this program what needs to be changed >> three things. the secretary of treasury has to be willing to put the 454 billion at risk. so far it's just appropriated at 75 billion to main street. that hasn't been tapped.

to allocate more money that's one number two, the terms need to be improved the minimum borrowing needs to be reduced from 250,000. interest rates need to be reduced from 3% to 1% and fees which could be 200 basis points need to be eliminated. just as importantly because under this approach, the fed is buying 95% of the loan and leaving 5% with the banks. >> it's great point. >> if they apply the normal credit standards, most of the people who need this money won't get it and the people who could qualify don't need this program as all >> exactly it's been a pleasure we'll lever it there because we're out of time.

i interested to see if the fed addresses this thank you for joining me that does it for the exchange. i'll see you on power lunch. stay with us - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu.

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at the golden opportunity sales event. get zero percent financing on all 2020 lexus models. experience amazing at your lexus dealer. welcome back thanks for joining us on a thursday this is "power lunch." stocks are at session lows 1% decline for the dow s&p, 2 for the nasdaq. the white house and congress are battling it out over the nec stimulus package breaking up is hard to do but that's what tech heavy weight says needs to happen with thbi