value. i'm long tse wrk, and oln those are my value plays don't forget the one i hit out of the park in virgin galactic with you, my friend, on air a couple weeks ago >> it's up 60% in two weeks. 65% as of 11:00 a.m. today nice call, my friend we have to leave it there. steve grasso, thanks >> thanks for watching "power lunch," everybody. "closing bell" starts now. >> it does welcome to "closing bell." what started out as a quiet session turned into a full blown selloff. dow, s&p 500 down more than 1% nasdaq is down over 2% let's have a look at what is driving this selling action. unexpected rise in jobless claims for the first time in 15 weeks. the labor picture darkens and data continues to soften the stocks are sell off today.

they're raise something $130 billion in market value between them just today. tesla, also down 4% in the likes of amazon, alphabet not far behind lawmakers continue to work on aadditional stimulus package with new details coming out about individual and corporate ap dow down 330 points with 59 minutes left in the session, sara >> coming up, tech investor dan niles will be here to make sense of the late day selloff in technology stocks. with the nasdaq down 2%. plus, we'll talk to john rogers about his take on the market and the areas he's investing in right now. and more earnings coming your way after the close including intel, e-trade, mattel and apple supplier sky works we bring you the numbers as soon as they hit the tape with one hour left of trade, let's focus in on the stories. we have details on the increasingly heated rhetoric

between washington and beijing phil lebeau has comments start us off with the broader market and tech especially not getting the love today >> tech is overheated. looked stretched needed to pull back. the question is could the broader market absorb that and have the money shift around to other places it has done a decent job of that recent days. today perhaps the weight of that tech profit taking selloff has become a little too much for the s&p 500 especially take a look here what is interesting is today's decline has got just about to those highs. remember we were talking about that and we broke out of the six week range can't say they had a little tough time getting real in gear. there is a potential selloff area we look at the market this year. this chart is making rounds. we talk about the other role that five big tech stocks

whether we define them aztec s h stocks or not. this is the s&p 500 itself coming into today. this is the other fortune 95 lacki lagging things there is a concentration of risk also a concentration of earnings power. it is correct to say the market's rally is narrow there is another way of looking at things such as stocks going up and down. coming into today, it made a new all time high. stocks are right now above their 200-day average. so more stocks every day are going up than down on average. but they tend to be the same stocks or the same general area of stocks while a lot of laggers sit there as well. so a lot of ways to slice this right now. today what you're seeing is treasury yields are compressed not really allowing for that cyclical value trade getting

moving very much to offset the profit taking. microsoft's numbers, they were fine but people felt like what's my next catalyst to get incrementally more excited about these expensive names that are already given investors so much this year? >> what are the catalysts? feels like every day the market can't decide it is a growth or value play do we like amazon and apple and microsoft today? do we not? are there any fund al drivers of selling or the mood swing we've ben seeing in terms of leadership groups. >> look to the response to earnings as a fundamental catalyst or an occasion to reassess exactly what they can look for in terms of the big growth names, but on an on going basis headlines and case count and how worried should we be is it going to cause dialing back effortors just in krementally change things around the edges? and then treasury yields, i

mentioned before they're not far above the lowd t choppy period for a little while. the dollar is going down that is a support for risk assets the xwe, you know, how much that can do to offset some of the other concerns right now, the nasdaq 100 and this is just very much in the zone of normal pull back in the profit taking. >> interesting to see and take one of the big cap tech stocks to sell and drag all of them down in a way that didn't really apply the way we saw snap's earnings or netflix's earnings >> right, you talk about the market cap difference in microsoft. plus, there is a cumulative effect of i ghes is goiuess thie

theme of earnings season so far. nobody is going to get enough out of the reports to get incrementally optimistic about things i don't want to say that is the way it's going to go but you're right, this is crowding in the stocks they trade somewhat as a unit. and that's why they're owned by the same people. the people dialing back the risk >> speaks also the point i'm trying to make microsoft numbers are good what if we got apple missing on iphone sales, for example? mike, thank you. tensions between washington and beijing also playing a part in this selloff today. we have all the details on that. >> they're going to deliver a speech on china. the tone is clear from the title. communist china and a free world's future a true believer in a bankrupt ideology and he'll urge u.s. allies and the chinese people to try to

change the party's direction there is action against china this week. there was a closure of the consulate in houston also the doj's indictment of two chinese nationals accused of hacking into u.s. companies. but at times that tough talk has also backfired today, the director general of the world health organization slammed pompeo for saying that china had a h. he could opted the who in a bid to down play the coronavirus. the director general said those allegations are untrue and unacceptable, guys back to you. >> is secretary pompeo now the point person for aggressive talk from the administration towards china? >> i don't think that you can underestimate the degree to which everything right now in washington is being colored by the election that's going happen in november. we heard a lot of the same rhetoric a lot of the same tone

they're saying that china is no friend to the u.s. china's holding the u.s. hostage, accusing it of hording ppe. so i think this is a theme that you're going to hear republicans hit again and again. they do believe that even though it's driving policy, it's also a winning theme politically that helped put president trump in the white house in 2016. >> thank you some clarity on the state of airlines right now southwest and american both out with results this morning before the bell and our phil lebeau spoke with the ceos of both companies >> don't forget alaska let's run down what we heard from the ceos as well as result in the second quarter. average daily cash burn starting with southwest airlines. all the airlines expected to continue coming down in the third quarter. in the second quarter for southwest. it was an average of $23 million a day. there is limited demand until we

see a vaccine. that's for all airlines. alaska airlines, also reporting this morning a q-2 daily cash burn. they're also saying the same thing. demand is slowing down we see that in the industry in july finally, there is american airlines the daily cash burn about $55 million. it is also announcing that it is raising an additional $1.5 billion in new debt bringing the total debt to roughly $40 billion. when we talked with the ceo doug parker, he said that's a lot of money but necessary right now. >> at this point in time, none of us are worried so much about additional debt as we're making sure we have liquidity to ride through the crisis we feel good about that. once we get through that, we'll begin the work of generating cash and using that to reduce the debt levels over time which i'm confident we'll do >> by the way, all of the executives that we talked with not just today but over the last

couple days, they all said the same thing we're lickly going to see some demand plateau here until we see some real progress on a vaccine and a vaccine that is actually out there. and who knows when that is, guys >> absolutely. phil, huge question. i also like the tough talk from gary kelly of southwest on masks saying if we have to wear pants in public, we should have to wear masks as well seems like they're getting a little more strict in terms of the policies on masks. are certain airlines different than other airlines in terms of the policies around those kind of precautions >> sara. almost all of them now have the same policy which is with the exception of kids who are 2 and younger, everybody's going to have to wear a mask. if you're going onboard. there may be slight exceptions there in terms of reaching out to the airline but no longer are they going to accept somebody saying well, look, i've got a condition i'm not going to be wearing this mask and they've come out and said, you're not going to wear it not

just on the plane or -- it's other parts of the airport by that airline you are going to be banned from flying that particular airline delta out today saying they already banned 120 people. >> phil lebeau, thank you. airlines were a bright spot in the session. looks like some have turned lower now. we're looking at the dow down almost 400 points. we have 49 minutes left of trade. after the break, the zombie debate it's an important question for lawmakers and investors alike. should the government's relief efforts prop up down on their luck firms or should washington take a more darwinian approach we'll debate it next

dow down 378 32 million under all programs were collecting unemployment checks in the first week of july that is according to the department of labor. but as we count down to when federal stimulus runs out at the end of the month, many fear that stimulus programs are propping up businesses that should go bankrupt and analysis from deutsche bank finding that nearly 20% of u.s.

companies now have debt servicing costs that are higher than profits suggesting they will never emerge from this recession joining us now to tackle this question is chicago boost school of business professor and former counsel of economic advisors chairman under president obama and a fellow at the american enterprise institute on opposite sides of this, what is the right approach as the government tries to hammer out who gets help in this next relief bill? >> well, all of that depends on how long is this crisis going to last temporary shutdowns and temporary problems are like liquidity crisis in fed speak. and liquidity crisis you can solve with loans and solvency crisis you can really only solve with bankruptcy and so that's the whole debate here do you think that this thing is going away or do you think that this marks a permanent structural change in the economy?

i think that if you go ahead and let millions of businesses go under all at the same time right now when the unemployment rate is between 11% and 15% depending how you measure it, i think you threaten us into the worst recession we ever lived through. >> jimmy >> yeah. listen, i think we're still today in the let's push money out the door phase of this crisis and this recovery but that cannot last forever i'm not talking about tomorrow maybe not even the day after tomorrow but i think this is a legitimate concern sort of post crisis, post vaccine we already have the zombie issue leading into this. i'm extremely concerned that on the other side we're going to have a low productivity economy that is already better a low productivity economy, too many companies that shouldn't be

in business. too much debt. too much capital too much talent tied up in companies which are never going to be what they could be i don't think it's too early to begin to think what that post vaccine, post virus economy should look like >> austin, what about if we take, for an example, the airlines that already received some government assistance, significant government assistance they kept all their staff for a period of time looks like they'll make significant layoffs. they may need further government bailouts at what point do you draw a line and say we just have to stop doing this i'm not saying let all the people lose their jobs but you could wipe out equity holders and just take this into government ownership and start selling stakes back in due course when we're on the other side >> yeah. i don't know i was following you until that last part. the government's going to nationalize these firms. i don't think i agree with that at all i would have drawn the line with

the airlines i don't think they should have done it that way i don't think they should have picked two or three specific industries f you're going to save the corporate sector, design the program to be broad base with general rules that say anyone can qualify as long as they satisfy the following conditions and following these behaviors. i think we should draw a line and stop doing the airlines are special so we give them special money. the thing i would just like to remind everybody, mostly i agree with jimmy's argument which is if we're going to get a vaccine and come out on the back end of this, let's not create zombies there are a bunch of companies that we're now lumping into as zombies that are only zombies because of the ineptitude of the fall response of this crisis if you look in europe and you look in asia at the other rich countries of the world, there still is no vaccine. but they have made this a

temporary shock. so they had even more support of their companies. but it's proferring to be okay so far so these are short lived hits to demand because they got control of the spread of the virus in the u.s., we encourage people to go back out, liberate themselves now we're having a resurge enlt virus. that is making the shock not be temporary which is creating the zombies. so i don't -- what we should first do is get control of that virus and i think millions more companies can survive if we do that >> everyone recoils at the government having a tiny batch of warrants to get some exposure to the upside if they help a company out. but when you consider the airlines, government money has gone in and there is layoffs why not instead wipe out equity holders which has much, much less of a negative impact on the economy and keep everyone in their jobs which would take some

level of government ownership? it doesn't have to be capitalism versus communism it's temporary >> listen, i don't know as of yet what this economy is going to look like i don't know what it's going to look like for air travel long term i'm not sure whether it is going to look for movie theaters i tend to be very skeptical on this changes absolutely everything and we're not going to fly and we're not going to go to restaurants and baseball games i'm concerned though that on the other side, there is going to be a great temptation, especially something like airlines which are really viewed as, you know, a lot of other countries almost national champions, there is a huge temptation whether it is president biden or trum top identify certain companies and maybe companies that give a lot of money to a certain campaign and really sort of these are two important to fail, too patriotic to fail. sleaze national champion companies and however we want to bail them out, they're going to

get bailed out and the money will keep flowing. again, i am concerned about the state of the economy it is a slow growth economy before i don't want it to be slow growth economy after >> here's the issue, austin. the first -- you know, when we were doing this last time around with the $4 trillion it was an emergency. stocks were plummeting the nation is locked down. the only thing you heard on both sides of the aisle were this is not business' fault. they're told they have to shut down we're in the middle of this once in a lifetime pandemic and we have to get that -- keep the workers afloat to make it to the other side the problem is now we're not on the other side we're in this sort of in between area where economies are open but the virus is still raging and people aren't going to work because they're afraid perhaps and so i think the question austin is how much of a bridge loan do we give to these businesses when economies are still open and if you're getting into that, how do you even choose because so many different

industries are affected. >> yeah. look, you raise at least two, maybe three or four important issues in that question. i think if you're going to miss manage the control of the spread of the virus, just on the health side, then you are -- it's like the old godfather line this is the business you've chosen you're in the business of trillion dollars of sustaining relief payments if you're not going to control the spread of the virus. that's a simple fact the bruj is muidge is much more. i'm sympathetic with the view, wait a second, should the equity holders of the companies be bailed out when the unemployed workers are going to have their benefits cut off i don't know if that makes perfect sense.

i think it's critical that you design policies if you're going to be in the business of rescue and relief, basically providing discount window like emergency lender of last resort to companies outside of the financial sector, i think it's important you remember the lessons of the fed and all the things we learned about central banks over the last several centuries. and the lafrt thing you want to do is have individuals in the government deciding this company is worth it and this company is not worth it that will be a big mistake i think you really desperately need a general plan so everybody understands what qualifies you >> it may be hard to imagine making these things worse. that would make things worse where we had that sort of picking and choosing picking winners and losers and friends of this administration and enemies of this administration

so i agree with austin we're in the break it you bought it phase of this and, gee, the return on investment on everybody wearing masks would have been great. >> thank you so much for joining us. >> great discussion. >> this that is a point they can both agree on. >> a lot of people can agree on it somewhat surprising that certain key individuals haven't decided on that. anyway, we have got 36 minutes left in the session. we're down sharply as you can see. nasdaq down 2.3% russell just dipping into the red. they were holding on to gains. everything else is down. apple is down. close to 5%. 4.96% as we speak. tes lash tesla is down. details on goldman sachs note ntl did push apple lower and a poteianew regulatory headache for the company we're back in a couple minutes, don't go anywhere. hope it doesn't cost too much.

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- [announcer] goodrx, stop paying too much for your prescriptions. welcome back "closing bell." we're at session lows. the dow down 420 points.

1.5% s&p 500 down 1.5%. the nasdaq comp is pushing 2.5%. the nasdaq 100 is pushing 3% april sl now down more than 5% 5.3% and we're going to start on word on the street with apple goldman sachs telling investors to avoid the stock of apple. the firm doesn't think apple provide guidance due to on going coronavirus uncertainty. maintaining a sell rating on the stock but raising the price target to $299 per share from 263. of course, it's well above that level already. $369 today despite cutting $20 off the share price. apple facing multistate consumer protection probes. the texas attorney generally may sue apple for violating the state's deceptive trade practices. cnbc reached out to apple but has yet to hear back that based on the cnbc viewing later from the texas ag. mike, clearly apple reacting to two little bits of bad news.

the goldman sachs downgrade and potential probe. but was soft at the open and steadily sold off throughout the session. i guess more influenced by the broader selling than necessarily either of those two little bits of news. >> mike's mike is off. he may be back mike, go for it. [ no audio ] >> it is not back. sorry. i can hear you that's why now you're good. >> looks exactly like amazon >> he is a tough one to read his lips >> nasdaq 100. any of those that's what the chart looks like it's underperforming i do think there is pressure from the research call gold's been skeptical on apple for a while. so this is kind of a reit rags of concerns. but it is an interesting test of whether investors are going to start to react to the, you know, individual fundamental trajectory to some of the companies or just consider apple to be, you know, a claim on $60 billion on free cash flow.

so they have all been getting credit for just being very stable and long term growth stories and cash generating stories. if you do have some complications of the near term fundamentals that, is a test for this uptrend a little bit. >> and on this antitrust issue, mike, we don't know exactly what texas is looking into. we know that apple is the subject of an eu antitrust investigation into its app store after receiving some complaints from, you know, companies like spotify and others that complained that apple takes a piece of, you know, their business putting it on the app store. i wonder how much of a serious or wakeup this was for the market when you think about the big tech and that's offerously in focus with the hearing next week who is vulnerable to antitrust complaints or investigations usually from analysts and experts we hear it's google. we hear it's facebook. on the advertising monopolies and duopolies, we usually hear apple is not really there. they're in a consumer products business

they don't dominate that in any sort of way. so i wonder if this is more of a risk than people realized. >> i think it's one of those things that investors will focus on when they're in the mood to say i already own enough maybe the stock is giving me plenty in the near term. could complicate this story down the road it's considered a hardware company with not that huge a market share in global smart phones but the whole services story is largely about app store. not exclusively. but large by about app store you have to keep in mind when they ran it at microsoft for similar bundling issues or misuse of market power issues in the browser, it was years before it mattered for the stock. >> mike, just to pivot back to goldman sachs -- sorry, sara goldman sachs' note. if they didn't suspend guidance and didn't have enough confidence in outlook, is that

worth another 5% >> i don't know exactly how tightly the stock is knitted it would be considered a negative if they didn't have that much transparency but the stocks are taking up not about what is going to happen next quarter not even for apple about 5 g or whatever is going on in china. it really has been a cluster of stocks that, you know, are a harbor because they do have this predictable cash flow. so we'll see how much it may matter. >> apple is down 5% as you can see. the nasdaq down 2.5% s&p 500 down 1.5%. time for a cnbc update >> hi low, everybody here's what's happening at this hour and we begin with the justice department's internal watchdog which will investigate allegations that federal agents used excessive force against peaceful protesters in portland, oregon, and washington, d.c. the investigation follows requests from members of congress in minnesota, governor wall says

signed a police accountability law bill into law. it includes a ban on choke holds and requires officers to step in when they see a colleague using excessive force. and at a hospital in southern france, patients are now being tested for the coronavirus with a breathalyzer type machine it gives results within seconds. the head of the hospital's icu hopes to have that machine fully operational by the end of the year however, an outside expert warns the machine appears to be a bit too expensive for widespread use. but that certainly does shorten the time line on testing that's the news update this hour sara, back to you. >> yeah. that will be a game changer if they could scale sue, thanks. still ahead, john rogers will join us with his take on the market plus his message to congress today about the need to support minority owned business that's have been hit hard by this pandemic. as we head to break, a quick check on bonds for you stocks are selling off sharply

dow is down 430. we've got the ten year yield now firmly below that .6 level .58 so buying of the safe haven bonds is a biuying of bonds stoy the last few months. you have bigger moves on days like today no the so much for the two year but for the rest of the curve. st mut bl"n n "closingel i ju aine. our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement.

just under 25 minutes left before the close down sharply 2.2% on the nasdaq off the lows the we're down 2.5% moments ago. down more than 1% on the s&p 500

and the dow. we've got microsoft, tesla both down more than 4%. apple down close to 5% up next, ann taylor's parent company filing for bankruptcy today. joining a growing list of retailers doing just that. we'll speak to an asset manager who says another wave of bankruptcies is still to come. and they won't just be in the retail sector. dan niles will weigh in on today's selloff, particularly in binndheere tor, a wth h isuyg on this dip. experience the adventure 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.

ann taylor filing for bankruptcy today they plan to reduce the debt by about $1 billion and permanently close a significant amount of stores during the restructuring.

joins a long list of companies that have fallen victim to the coronavirus pandemic including j.c. penny, hertz, and brooks brothers let's bring in the co-founder and ceo of blueprint capital advisors a very good afternoon. thank you for joining us. >> are we past the peak of bankruptcy or just getting started? >> absolutely not. we feel for a whole host of reasons that we're just at the beginning stages of what will be a real bankruptcy cycle. and when i say a real bankruptcy cycle, i mean a broad based bankruptcy cycle that includes multiple sectors obviously over the course of the last few years we've seen bankruptcy cycles affect things like oil and gas or the energy sector

now we think covid-19 is having an impact on 94 to 95% of businesses across industries and so we definitely think there is more to come. >> jacob, you say it will be across sectors are there any other themes apart from simple points of overindebtedness that you are weary of in terms of whether the bankruptcies are likely to be focused? >> i'm not concerned about i.t. and i.t. services as people are forced to shelter in place you rely more on technology to tran transact business. we think that, for example, outside of retail, the transportation sector is going to get hit hard. people are obviously not traveling and as we start to experience this wave of a rise in the pandemic throughout the south, you're going to have more and more travel restrictions certainly outside of the u.s. as

well as inside of the u.s. we're concerned about the health care sector. obviously, since this began, the number of elective surgeries has fallen as there's been restrictions so that's another sector that we expect to experience some pain we're very concerned about commercial real estate sector. we're not sure everyone is going back into the central business district where they have the operation president covid-19 and so that could lead to significant weakness in commercial real estate sector. certainly transportation looking at things like airlines, that certainly concerns us a little bit as, you know, traffic, you know, has significantly fallen off for the airlines the last segment i would say we're particularly concerned about obviously is gaming and casinos. when you have these social

distancing restrictions, it doesn't lend itself to how some of these casinos are set up and obviously, you know, that could cause real pain from that sector >> kind of a mind boggling long list of areas of concern, jacob. we report on the stories every single day on the updates that we're getting from the companies. i feel like that the broader investment community isn't really focused or concerned about the bankruptcy question. and politicians, too, for that matter especially on retail why is that? >> well, i think that for the most part the industry focuses on the largest companies in each of these industries. and very often they don't focus on the smaller and mid size companies in these industries. the largest company is in each industry usually have the best margins. they certainly have access to capital.

you take the small and mid sized companies and you see pain at that level a lot sooner. they're not necessarily the best customer for a large bank that has a balance sheet to give to a company's experience distress. you know, very often they have to go to nonbank lenders where they're paying higher interest rates. we think you'll see more pain in small and miz size businesses before you see it in the larger end of the market because simply those financial institutions that have chosen to focus their balance sheet are focusing on the largest and most profitable clients. so from our speshgtive, we're a nonbank lenteder. we can't access the capital markets. and there, you know, we're seeing across the board. there is expense rationalization, you know, pretty much takes up our whole day.

>> wow jacob, thank you for joining us with that color. something we'll be watching. >> you're welcome. >> after the break, three consumer stocks that we're watching into the close. plus, the key metric to keep an eye on when intel reports after the bell those stories and more when we go inside "the market zone." you can watch or listen to us live on the go on the cnbc app

cnbc senior market mike san to santoli is here. stephy link with with us as well let's kick off with the broader markets. sharp selling today. we were at the low of the day. s&p 500 and dow down 1.3%. 1.4% have a look at the faang stocks.

all jun underperforming. microsoft which is not on that chart. it's down about 4.2% they were basically flat over the last two weeks as the s&p 500 has gone up. it has been about heaviness, pullback, you know, cooling off of that sector of the market that is essentially the whole story today. we have this huge bounce in the big growth names and average stock is suffering so it is sort of a jumpy unstable market as the overall s&p 500 has got tone this level that seems a little tough to break above that recent range. but it's mostly about -- this is what the rotation out of growth is going to look like some days

there are the handoff of the baton. i think that's what we're seeing in theindexed. >> i own microsoft and alphabet and amazon i've been selling amazon and sold out of facebook some of the stocks are having a big run. even with this correction today, i mean, apple was up 83% from the low. microsoft is up 48% from the low. it accounted for 80% of the returns in july alone. so it's been very concentrated its very crowded they're very well loved stocks

all the analysts like all of these stocks and they're tripping over themselves to actually raise target prices. they're adding to. but i think over time the total addressable markets for these companies, it's enormous we talk about cloud last week. it's a $600 billion market in a few years. so there are going to be opportunities. the most interesting thing about today is the initial claims numbers, i thought we would have a much more defensive feel today. and we did have a value feel to it the iwm was even green which is surprising so watching the break even enflagss, that is actually holding in pretty well that is actually interesting to me i think that is supporting the growth versus growth trade in the last couple weeks. >> you've been a net seller of the outperforming tech names of late what about overall in terms of

u.s. equities? >> no. i mean in u.s. equities, i mean where i'm a net buyer is on the cyclical side of things. we talked about how i believe that even though the reopenings are probably going to lead to -- and the closures are going to lead to a stall in the economy and the momentum that we had been seeing, i still think you're going to see growth still think you're going to see better growth next year than this year. i do want to have a little bit more cyclical exposure you know i've been adding, nibbling on the banks. i have been adding on the industrials like union pacific i think that should not be down. i thought that quarter was fine. they're doing a great job internally on operations and execution. the so there are pockets earnings always give you looks they always give you chances and that's when i sold facebook i didn't necessarily buy anything i mean in a big form because i want to have some dry powder so that when you see the overreactions on earnings, you can be buying. >> watch some consumer stocks today. on the move, on the back of

earnings we're watching names like kimberly clark which is hitting an all time high the company which owns brands like hugies diapers and kleenex and scotts toilet paper, reissued full year guidance after suspending it back in april, raising it from the previous range the company also says it will resume its share buyback program. >> shares of unilever is up. sales in north america in particular were very strong for the company. the stock up almost 7% hershey another consumer staple and another winner today the candy company says they're bracing for a sales hit from lower halloween sales but hershey does expect elevated at home consumption to rise mike, these stocks are all such good encapsulation of our life buying kleenex at home and toilet paper at home and

businesses not buying as much from kimberly clark or uncertainty around the season alt tren seasonality trend but people bifrpg eating candy at home. the strength there is in some of the soaps. dove did pretty well and some of their hygiene products the makeup business which is one of the biggest did not do so well >> yep >> people aren't, you know, using makeup and deodorant and going out. >> dom informed me this morning the ice cream business for at home con sum sgs very strong as well it all fits together it's not always the case at the market and the corporate fundamentals follow the intuitive sense of what is working and what's not one quick note though on the buyback for kimberly clark that is not a one off. i think the companies that have not been severely impacted have not had to stretch to take on a ton more debt over this phase. they're going to reinstitute buybacks companies of this generation of management are not in the habit of just accumulating cash for it to sit there

>> shares of twitter higher after the company reported higher than expected user growth the company adding 20 million daily active users revenue fell short of expectations down 19% year over year. the cfo on "squawk box" earlier today addressing rumors about whether a paid subscription service could be in the works. >> we are going to be testing and learning around lots of new nonads related revenue opportunities. today we have our data and enterprise solutions business. welt kn we know there are other stugss as well. these are areas that we'll xblor. we have to build the team. we have to test and learn. and this isn't something where you should expect revenue in 2020 but there are big opportunities for us over time. >> steph link, you saw facebook. what about twitter >> i own twitter last quarter was terrible. this quarter is much better. the daily average user grew 35%.

20 million he sequentially that is huge i think the real opportunity is for this company but they also did a really good job on expense control expenses were up 5%. but that was down substantially from 18% growth that they saw in the first quarter. so i think very low expectations on this one. this stock is up 24% year to date but i do think that it's lag laged some of tlalagged some of the competition. i like it. >> all right regulatory headwinds or just political spotlight and pressure, mike having any influence on the names? >> twitter is one where, you know, there is no doubt about it there is an unflattering spotlight on them from the public debate and from politicians and things like that but for twitter, a lot of the issue is the kind of discourse that's on there and it's a little contentious and sharp edge and advertisers are just less interested in having their ads interact with that sort of

thing. i don't think that's a -- it's not a fatal thing. it is not preventing advertisers from trying the platform does it mean that the user base is a little bit less easily monetized. >> let's keep on the earnings theme. intel is due out after the bell. we have a preview. >> sara, a few things to watch does ib tentel reinstate the guidance that will give investors more insight into the sustainability of spending trends on pcs and data center chips. two, look for any commentary around a rumored nvidia arm deal the chip space has seen a wave of consolidation just over the past two years it is far from certain that they would sell arms. such a move would represent a major shift of power in the chip industry >> another one, guys, intel is already lagging shares this year underperforming the rivals it's up as can you see, less

than 1%. back to you. >> thank you stephanie, where do you stand on intel? >> i own it. i bought it after last quarter i thought last quarter was a good one it sold off initially and then came back. i think this is a work from home stock. they have cloud. they have note books that is benefiting from chrome books. as kids go back to school. so that's a positive you can see note books revenues up 10% or more in this quarter so they have cloud they have got note books i think they're in the right spaces that's going to offset the weakness on the enterprise side. a lot of people are expecting a beat and reinstatement of earnings and the buyback that's $20 billion they have $14 billion left there. so if they do that, i think that will be very positive. stock trade at 3.12 times earnings and yields 2.2% i still like it very much. >> it has underperformed as we should note. we're getting toward the close the we're about two minutes

away mike santoli, what are you seeing in the market internals as we watch the market selloff down 1.3% on the s&p 500. >> yeah. sara, tilt to the down side in terms of the internal action less so than the indices might suggest. you see here 1.5 billion shares up on the new york stock exchange and declining stocks is 2.2. it got worse in the last couple of hours but it was never necessarily all that positive. so kind of a mixed market below the surface with a little negative skew. take a look at the equal weighted s&p 500 and you'll see that equal weighted version down just about a quarter of 1%. not necessarily dependent on those big growth stocks that are pulling back hard today. that's been, again, it's been flip-flopping back and forth either you bet the favorites or you bet the field from a day to day basis. and the volatility index, how many times i have said, it refuses to go down in a dramatic way. it is sticky in the mid 20s. now it's popping a little bit up about two points today it just shows you the market was

a little bit on guard even though they were holding steady. still in a down trend. but it's not something that suggests that the people are willing to set aside their fears of a potential volatility storm the next month or so >> mike, thank you one minute left in the session sharply lower as we've been discussing all of this final trading of the day down 2.4% on the nasdaq. down 2.8% on the nasdaq 100. s&p 500 and dow down sharply as well 1.3% there we did have all the sectors lower during parts of this final hour of trade. but financials, consumer staples and utilities holding on to some green. the regional banks doing relatively well today. the regional banks index up 2.4% one of the few bright spots out there. otherwise, the other eight secretaryors a sectors are lower. tech is down 2%. that is because, of course, the likes of amazon, social media stocks and the big tech stocks all down sharply we got apple down 5%

4.5% tesla down 4.9%. facebook and amazon down as we approach the close, the s&p 500 down 1.2%. dow down 1.2%. those two just came off the lows they were down 1.5% until a half hour ago the nasdaq is down 2.2%. a resoundingly negative session. >> yeah. except for the small caps. looks like they just finished and closed positive. welcome back to "closing bell. i'm sara eisen with wilfred frost and mike santoli take a look at how we finished up the day on wall street. it was a down day. dow closed lower, 353 points off the is egs lows. we're bouncing there along the bottom down 1.3%. s&p 500 lost 1.25% we got a surprise increase in weekly jobless claims this morning. that certainly did not help the mood today

following the back and forth on this stimulus negotiations as well the s&p 500 down 1.23% first down day of the last five sessions the nasdaq having the worst day since june 26th. still hasn't put together a back to back down day n. a whi we'll see what happens. today it is sharply lower. down 1.3% into the close apple and microsoft contributing to the decline russell 2000 got a small gain into the close just barely. lower in the final hour of trade. we have more earnings. investors set for a trio we have intel, mattel and e- trade. we'll break down the numbers as soon as they are out get you some analysis. plus, we'll ask john rogers about today's selloff and whether this is a buying opportunity. and then renowned tech investor dan niles will join us to tell wlus today's tech wreck could be a red flag for the sector or whether he's buying. still with us to discuss the market today, hightower chief

investment strategist stephanie link and mike santoli. i give the first comment to you on what damage we saw today to the tech trade >> it was mostly, i think, a pullback is the way you're characterizing what is going on in tech and large cap growth certainly severe in a one day basis. definitely sluggish over the past couple of weeks it tried to essentially kind of consolidate a little bit after the huge sprint to the upside. the pure value part of the s&p 500 was up .6% today a lot of people are saying there really should abe a convergence of growth and value. it happened today. yet, there is a sacrifice on the top line of the market that's the way the math is going to work if you get -- interestingly though with the jobless claims that were a disappointment this morning, sara, and treasury yields going lower, you might have thought it would be hard for value and cyclicals to outperform today. that's when they hide in the large cap growth it's a noisy staticky situation

mostly being driven cosmetically by the fact that big tech is pulling back. >> we have intel numbers crossing the tape. a nice beat on the revenue line. $19.7 billion. forecast is $14.5 billion. eps at $1.20 per share or so maybe just $1.19 expectation is for more than $1.10 per share. client computing essentially the pc centric business, $9.5 billion in revenue. $500 million or so ahead also the data center business was a little ahead, $7.1 billion expectation is $6.5 billion. those are the two reasons for the beat and need to dig in a little bit more and get the guidance numbers. probably why it's trading since the quarterer is strong. 5.63% lower in after hours trade. just dig into that a little bit more and come back to it >> stephanie link? first impression

>> well, i thought the pc business actually looks like it came in a little better than expected cloud as well. i think we have to get the guidance and get the news on the buybacks and also, let's listen to and see what the gross margin numbers come in at they're going to be horrific but half of that is because of the ramp of the ten nanometer. i want to see what the normalized margin is that they just delivered i think the headline is what is going to scare people. there is a reason for it like i said, this is what i would buy more of. because of the valuation, because of the balance sheet, because of the dividend yield and how they're exposed in clouds and data center and pcs, so i think they'rewell positioned going forward if it is down 5% or 6% and stays down, then i'll buy it that's what i did last quarter down 6% initially and i bought it it recovered it still lagged. the i think there is upside. >> i'll jump in on the guide for

q-3. the expectation for the guide on q-3 is $17.9 billion they're forecasting $18 billion. revenue should hold up but on earnings per share, they're forecasting significant -- not significantly low eshgs the forecasts on street account estimate was for $1.15 per share for q-3. the forecasting a little bit below that but not too significantly. a little above $1 per share. soft guide there for the full year they're guiding $75 billion in revenue that is not far of what they were looking for in terms of the estimate so, again, need to dig in a little further to find you the reasons why we're down 5% at this stage it doesn't appear to be the past quarter or indeed the forecast for q-3 on the headline top and bottom line. >> to what extent, mike, is this a stay at home sort of covid-19 stock? why has it underperformed? >> only to the extent there has been a bum notary publp in pc s.

that would be a short term that is not necessarily something you would consider it's not like people are spending more time, you know, on dig digital media. it is the value work horse for some time now. good things going on in terms of transforming the mix but it maintained a significant discount valuation wise. you know, it still has that leverage profile to older parts of the business. and also if you look at the results versus the forecast, right, so 123 versus 111, i go back to the estimate onz february 28. in this ok, intel, it is 125 right? that is just the way it's gone you slash the forecast they come in better. but it's no better than you thought it was going to be a few months ago and that's what the stock has to absorb >> let's get to our reporter who has more detail for us

>> hey, wilf you've been running through guidance here is another reason the stock could be sharply lower in the after hours. gross margins, nongap, 55% for the past quarter that is versus 62% a year ago quarter. is a leg downward. remember that tech gross margins have holding up much better than nontech. still this is a leg down that could be part of the reason the earnings call kicks off at 5:00 eastern so we'll certainly be on that looking for more color, particularly around margins and that guidance that we got. >> that makes sense. the questions around margins and questions around whether they're going to be delaying certain rollouts of chips. i guess that will be a key for the earnings call. >> yeah. and gross margins, ways thinking 56%. 55 is a little worse that has to do with the ten nanometer. we'll get a lot of color on the call i haven't seen or i haven't heard that they've reinstated the buyback yet.

and i think that also might be a little -- that's a little bit of a bummer for me. i really think that they have a great balance sheet and they can resume especially at these valuations the so let's hear what they have to say on the call >> stephanie link. thank you very much. intel shares now down 7.3% after hours. moving to the lose of the session. let's talk broader markets stocks did close lower today s&p 500 snapped a four day win streak joining us no you to discuss and to talk a little bit more about the stimulus and the testimony today, ariel investment and co-ceo john rogers is with us. it's nice to you have here what do you make of the selling we saw today in technology and do you think that the, you know, the surprise jump in unemployment claims raised some questions now about the economy that the market is going to start paying attention to? >> i'm not surprised by the big down turn in the tech sector you know, a couple weeks ago it

just seemed like everyone was deciding that the faang stocks could only go one way and up no one could see any down side no one could see any problems. and my experience or the last 37 years is when everyone agrees that one thing can only be good, there is usually some bad times coming some negative surprises coming so i do think these stocks are overbought it's time for them to really have their come uppance and give value managers a fair shot >> yeah. finally. you've been calling for this for a while now. and we have seen days, even like today where there are questions about the economy. value does better. how does this give you confirmation that the economy is in good enough shape for value to work? >> value stocks are often

cyclical and susceptible to pressures in the economy but what is also help growth so much is these historically low interest rates you know, when you discount the present value with these historic low rates, can you justify paying very, very high multiples. so what i think is going to happen is we're to see some higher rates coming. higher inflacti higher inflation coming and that will create a real tail wind for value and real head wind for growth. >> john, so often when we talk about value stocks, we're also talking about the cyclical stocks so even if you're right that the big tech names do a pullback, do you think that a lot of the companies in krur portfolio can rally if we don't get better news on the virus? if we don't get better news on the economy? can they rise in that environment? >> if we don't get a vaccine, it will be hard for any stock to rise in the short term eventually the country will get

back on track and things will be fine our portfolio is extraordinarily cheap. we're selling at a significant di discount to the broad market and to the russell 2000 and 2500 value indices. so our portfolio are full of bargain undervalued security that's we think will hold up in a down turn. and do better than expected as the economy starts to recover. >> and even on a day like today -- >> you're getting a warning sign i guess, john. it is hard to see those value stocks we just showed your top holdings and viacom was higher today. broadly speaking, clearly, all of the indices drag lower today. those big cap tech stocks have such a big impact. >> again that, is helpful to us. we have no exposure to shows companies. we have a real bargain that's we like and the traditional industries that we talked about in the past. you know, we love viacom and cbs because of the content we love, you know, a for profit education company but focused on

health care, doctors and nurses which we think are very, very valuable in this environment a company like kkr that is well diversified in the financial services industry. the so we're well position ed today with our top five holdings >> i want to talk about your testimony today on stimulus which is a moving target right now in washington. what was your main message for lawmakers? >> our main message is it is important that this hero's act, some of it, we hope that some of it gets into -- gets passed. we do realize that small businesses, small minority businesses are really, really suffering. and they need have more stimulus to get them going

so that is something i talked about today. i think it is really, really important. and also to use minority businesses and small businesses and everything we do, not only the construction of the catering and low margin but also the professional services, financial services and technology parts of our economy. >> how do you do that, john, when they can't even agree a number to extend on unemployment benefits or how much should go to state and local governments and sort of the philosophy behind which states should get that and how much you end up compensating or which industries should be bailed out right now it seems like they can't agree on any of the basic facts. how are they going to get more granular and direct it to the minority owned businesses that have suffered the most as a result of the pandemic is. >> i think a couple things will happen you're right very, very problematic the partisanship we're seeing in our country today. i was at this hearing for four hours. it's amazing to see how much

pressure there was and tension there was in the room. and the congressman just challenging each other it didn't feel healthy but i do think when you have progressive leaders now taking over at the house and people realizing handwriting on the wall that the senate will probably change, i think people ultimately will start to come together as we get closer and closer to the election zblp what would happen to the market if we didn't see that stimulus pass at the first attempt. >> it would be a problematic in the short term but as you know, we're long, long term investors. and still have our turtle as a logo in the long run, we'll get through it and eventually common sense will prevail p em do the right thing f people will do the right thing for the country. i'm confident that we'll get back to normal >> finally, john, what is the

mechanism through which congress can get the funds to the minority businesses? is it another ppp program with certain conditions >> some of it is through the ppp and micro lenders and more dollars. institutions like that that can really get to the smaller companies. i do think ti important that we don't forget companies that are sort of mid sized too. those are the km thacompanies tt have scale and employ the most people and create the most philanthropy in local communities. we want to make sure we find a way to support all of the smaller businesses just not tiniest ones john rogers, thank you for joining us talking about that and the market today >> up next, disappointing margins weighing on intel shares despite a profit beat. the stock is now down 8% find out if this is a buying opportunity when we return - [narrator] at southern new hampshire university,

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that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu. (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. welcome back intel down 9% in after hours trade. they had a beat on top and bottom lines guidance was no the too bad either let's bring in kevin rottinghouse kevin, there's been some commentary that delay in the release of the seven product has been delayed is that why we're down 9%? >> i think you hit on it

earlier. the gross margin number is the disappointing number and the guide implies lower gross margins as well. i think that is the primary concern here we'll look for more color on that in a call encouragingly, they noted the ten nanometer products is supposed to launch at the end of this year. certainly look for more color but the near term issue is the gross margin number. >> i don't know in we can bring up amd after hours as well i think amd initially moved higher would that make sense? is this not a zero sum game? >> well, i mean, i think the intel guy also implies that the decelerating market in the second half of the year. that can be a challenge for amd. but on the other side of that amd is a beneficiary of it >> well, what is your take on the stock and the underperformance and sort of the

cautious attitude from the sell side not a beloved name right now >> we're actually constructive on it. we would like to see better execution of the product psych ldz which have been bate of a challenge. so we look for better conviction in the product cycles to upbraid our rating we look at 2021 as they launch the server product and they bring more supply to market. they'll be more competitive than they launched the initial server product line they're going to start narrowing the gap. >> down 10% or so. the is this a buying opportunity? >> we're neutral rated but we will revisit our rating as we go we do think this is an interesting opportunity with them poised to narrow the gap.

earnings are pushing around $5 we think it's interesting weechlt take a look at our rating as we go here >> we're going to see more consolidation in the sector? >> i wopt be surprised if you did. ti set the bar it pressured them to bring scale in sales force and scale to market it wouldn't be surprised if there are others that scale higher broadcom or others doing the same type of thing so i wouldn't be surprised if you saw that intel is inquiztive in adding pieces to expand there are opportunities for additional m & a. >> kevin, thank you for joining us intel shares down 8.4% after the bell kate rogers has numbers for us >> the stock moving higher on this news.

adjusted loss here of 26 cents that is better than expected revenues also beat $732 million compared to estimates of $679 million. north american business, much stronger than international for the quarter. while revenues were down they exceeded our expectations particularly in north america, b barbie and game. we also said the supply chain continued to perform well despite closing of distribution facilities currently all of the facilities are open with minimal disruption to operations as we enter the peak production season which is obviously good news. the stock higher by 4.5% now back to you. >> kate rogers, thank you. up next, mike santoli looking at why the recent surge in silver prices could signal a stock selloff on the horizon and as a reminder, you can wave us on the go on the cnbc app hey, kids!

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1.3% on the s&p 500 ower.

the russell holding on to gains. it was fractionally higher three sectors did manage to close higher financials, consumer staples and it was a predominantly red day on wall street we have a newsletter on facebook we have the details. >> they ignored the findings about racial bias on the platform and stopped the employees from pursuing topics related to bias. one of the findings is that users whose account activity suggested they were black were 50% more likely under rules implemented last year to have their accounts automatically disabled we reached out to facebook for comment. we have not heard back yet this does come as facebook is under growing pressure from capitol hill mark zuckerberg testing in an antitrust hearing on monday. sar yashgs back to you >> sort of fits the narrative,

julia. >> facebook has faced a range of chases they've had these, you know, new rules that they implemented. they made a lot of changes i think the question that this story is going into is whether there were more red flags raised, that they intentionally ignored. so i think it's been interesting, sara, just in the wake of the we'll see how much more they knew a year ago that they decided no to the address and that's really the focus of this article >> julia. thanks let's go to mike santoli looking at silver's rally. silver really started to outshine >> it has, sara. this is often the way it goes. silver is sometimes chases gold higher when you do have these major moves in the metals.

silver is considered to be the one that can get caught up in the more small term -- small time speculative type activities you see this happens similarly back in 2016 a real big move as gold did back in 2011. this comes near the end of a risk asset rally you basically have seen a lot of the speculative frost start to get rolling. silver sometimes is a play there is a fundamental story though behind silver right now it is used in solar panels that is a cover story. here's the ratio of gold to silver prices going all the way back to the early 70s when gold prices were unfixed. you see gold has really been

dominating up here as it got to the records. and silver has sort of chasing it and catch up a little bit the ratio has come down. this is also what some of the silver bulls are saying. actually some room to -- for this to go lower to get toward the longer term average right here below 70. that's what the folks ate citi are saying i would be on guard though when you see the silver start to act up a little bit, the inflows into the silver etf are incredibly strong. a billion and a half this month alone. it's only about a $12 billion fund it is starting to get a little hot in there with silver >> silver more useful than gold, i guess. >> about half of it is industrial uses, yes >> right what about the inflation argument that it's a hedge >> it remains to be seen gold hasn't really operated that way. you wouldn't have an inflation problem in 2011 when gold ran into the highs it is liquidity negative real interest rates and weaker dollar are a little more important than inflation. >> that was going to be my question back to the first

you just explained it as it related to gold. why did silver spike so much in 2011 >> similar basically was the same deal. essentially, you know, i joked on twitter yesterday that silver is like fractional shares of gold gold is maybe a political more buy and hold that seems to be what captures traders' attention as the precious metals rallies get rolling. >> either way, extraordinary move this week even after pulling back 2% today. still up 15% this week gold up is 4% this week. mike, thank you. breaking news on the stimulus negotiations. let's get to our reporter in washington >> senate majority leader mitch mcconnell said that republicans will release their next coronavirus relief package early next week. he said that republicans have reached an agreement in principle with the white house that they need more time to hash out some of the legislative details. now he said that this will be an

on going work of the senate. he said that we've only begun to recover from the economic damage and that this is not over. so congress's job is not over. as far what's is in that package, did he mention a second round of ppp direct payments the money for education, liability protections and some form of enhanced unemployment benefits that as we have learned has been a sticking point we expected the text of that relief package to be released some time today. now mcconnell saying it won't come out until early next week guys >> so i guess two questions for me we're going to miss the deadline to extend the current unemployment benefits. so there already a period where that there is a gap. are there still big issues that kreu the democrats might disagree with that we don't get a deal at all? >> i think you hit the nail on

the head there i think what the form of enhanced unemployment benefits are is going to be one of the major flash points in the negotiations once it reaches the stage of negotiating with democrats. so,y, there could very well be some people who find that the benefits go away for some period of time. the question is, do you extend it do they try to rush these negotiations through how do you handle that that is a point of contention. other thing that the democrats will take issue with is the liability protection that's mcconnell laid out as a red line how some of the money for education is tailored. what happened to state and local aid? so there is still a lot of negotiations and discussions still to be had on capitol hill. at least now we know when republicans are willing to make their opening bid. >> thank you so much for that. >> stocks fell, of course, today in volatile trading. the markets took in d

disappointing unemployment data. joining us now to tell us where he sees opportunity in the tech sector is dan niles. dan, great to you have join us as always. big selling day in your sector was it triggered by microsoft or other factors? >> i don't know that you can necessarily put one trigger on it you know, in your prior segment. you were just talking about the stimulus checks and how is that going to be extended or not. and really this is the weirdest recession we've ever had two-thirds of the people unemployed are making more money being unemployed since they were having out when they were having jobs so that's why you have things like cell phone sales and pc sales. boats, houses, a lot of things you would think would fall off we were short microsoft going into this. it is a name we were long

earlier this year. but their cloud business did slow from 60% growth year over year to 50% and people were thinking it would be more like in the mid 50s this is all sort of tied together and valuations are sky high in terms of seeing apple drag down as well today, goldman sachs note that put a sell rating on it and news investigations into that you nervous about apple's earnings ahead of next week? i think that is next thursday? >> yeah. i mean, the biggest issue i have with apple is -- and i said this before, is the march quarter revenues are exactly where they were in the march quarter five years ago. there's been no growth revenues are off the multiples

i think the revenues are going to be better than expected they did introduce a $400 price which takes them into a whole new segment of market. the other issue that is going to be interesting is i think they're going to launch the new phones about a month later than normal so the september quarter revenues might be a little too high i'm not involved in it one way or the other it doesn't mean i won't be, you know, shorter or long before they report. but i'm more inclined on the short side a lot of the names that were our favorites like amazon or, you know, zoom even or microsoft that we were long earlier this year, we were shorted this week. we think things have run too far too fast so that's a long winded answer to your question that's how we think about it in a portfolio context. >> it's interesting that you turned short on some of the name so do you think that we're at a turning point in the market where valuations are going to start to matter more >> well, i think it's what

wilfred asked in the prior question to some degree is that, you know, the stimulus stuff matters. because that's really what kept stocks up to where they were at. in addition, the fed balance sheet expanded to $1.3 trillion. it actually dropped about $250 billion over four weeks. it was up a little bit last week but that's come down it's below $7 trillion we get a new number. stimulus -- less stimulus going forward. and things like cloud revenues from microsoft, for example, slowed down more than people thought. you combine that with incredible -- the highest valuations on record, you have a lot more risk. that's why we came into today with barely any more long thanksgiving we had shorts i think at the end of today we may have more shorts than we have longs but we're being a lot more defensive because of that. >> dan, in ermz it of the valuation points, when you consider some of the big cap

tech names, i mean, if we do have a couple more reports that disappoint and people start to get concerned again about valuations, what level of down side are we talking about? are we talking another 5% like we saw today are we talking 50% >> well, i mean, i think the problem is if you put it in a historical context, you know, my favorite measure is total market cap of the entire united states stock market divided by gdp. and today that sits at about 1.6 times. the average over 50 years is 0.8% so that is obviously 50% lower but obviously interest rates are record lows. mortgage rates are record lows you know, it's hard to imagine doing. that the fed is showing they'll do whatever it takes to try to blow up asset bubbles as it were people want to get re-elected, right? so they're going to want to pass some kind of stimulus. no one wants to say i didn't pay you extra money. so i think there is going to be

a lot of pressure to try to keep the market up. but at some point fundamentals have to matter valuations have to matter. i think we're starting to seat beginnings of that whether it is tesla reversing off the highs we tweeted about a week ago we started to short that after being flong 2019 at the end of the day, they didn't beat revenues and eps but things were slowing. i think it is all of that together makes me a heck of a lot more nervous with the market at these levels. that's why we're doing what we're doing in terms of shorting our -- some of our favorite names which, you know, we can cover tomorrow until the market gets clobbered. but we covered some of the mock four shorts. malls, airlines, cruise lines and hotels they've, you know, got eaten up enough we need to switch the shorts we need to switch the shorts i don't like shorting. they are the best companies. you have a lot of retail buying into it which is driving these stocks to levels that remind me

of 2000. and that's a pretty bad cocktail when you're having states like california shut down >> are there any pockets of the market where you're shifting mone into that have underperformed that may be a safe spot giving the overly valued companies that you're betting against on tech >> yeah. that's a great question, sara. so, yes. mine one of the areas, believe it or not, so as i said, we tweeted about being short tesla. but one of the sectors we moved into and looked at is autos. you look at the auto data from the maonthly retail sales that went up, in may, that was up 50%. in june, it was up over 9% month to month believe it or not, we bought ford and we own gm as well, for example. we own some splurz inuppliers nt we also love the video game manufacturers.

they're fundamentally you have a new console coming out for the first time in seven years from microsoft. and nut games coming out, some of them are going to be priced after 15 years being priced at $60. the price is moving up to $70 which is way more profitable and downloading is much more profitable than selling to a store. we still like the video game manufacturers actually quite a bit. you saw them report great numbers. we'll have other big ones. >> then very worked lately dan niles. thank you for joining us. >> my pleasure. >> good to talk to you >> it's a race against time to extend the federal coronavirus unemployment benefits. coming up, we'll ask house minority whip steve scalaise whether a deal could include a major cut in the benefits. that's next. apps are used everywhere...

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the u.s. now has more than four million confirmed cases of coronavirus. cases doubled in about six weeks. experts say the actual number is likely far higher. new deaths have also been rising can you go to cnbc.com to seat levels of new cases in other parts of the world >> president trump and russian leader putin discussing arms control today. the white house says trump told putin he wants to avoid a costly arms race with russia and china. the two leaders also discussed the pandemic and reopening global economies and new york state residents will once again be able to enroll in or renew memberships in global entry and other trusted traveler programs.

the department of homeland security says the dispute with new york state has now been resolved over a state law allowing unauthorized imgranlmis to get driver's licenses you're up to date. sara, back to you. >> all right sue, thanks. up next, movement on stimulus negotiations. we're going to talk to a top lawmaker in the house about the next round of emergency relief for individuals and bunees wh "osg ll" comes right back

welcome back the federal stimulus deadline at the end of the month has washington lawmakers scrambling to get a new deal together senate majority leader mitch mcconnell announcing republicans will reveal the relief package early next week. let's bring in house republican whip steve scalise congressman, thank you for joining us if we're going to get the

republican version next week, what happens to the millions of americans who are getting that additional $600 per week of unemployment benefits when they expire at the end of next week >> yeah, sara. good to be with us i know president trump's real focus is trying to help people get back to work help safely reopen schools and we recognize there are still millions of americans unemployed and that continue going back to work but the one thing that has become a problem is that we have seen studies about five out of six people that are getting that enhanced unemployment or making more money at home than they were at their job. that is not something you want the government to literally be competing against people's desire to go back to work. so that's got to be fixed. even money for schools that we can make sure are more flicexibe

and helping them to do what they can do to reopen i think that's where the real focus needs to be to help people there is a lot of money out. there let's make that money work even smarter and better. get people safely back to doing the things they did before >> since you brought it up, we talked about the scanneded benefits we've seen plenty of data showing that, yes, people are making more potentially off those unemployment benefits and that bonus but is there any evidence to show, congressman, that that's keeping them from going back to work i mean we're still in the middle of a pandemic. cases are surging in many parts of this country. how can be you sure that is inventivizii incentivizing them to go back to work >> i hear from business owners saying they offered jobs for people to come back to work and business that's are safely open

again. >> there are more opportunities to create jobs and even those expanding whether it is people making ppp, trying to make masks, doing other things where there is a demand. we ought to be focused on bringing the jobs back from china. after this pandemic broke out, as china is hiding the facts from the west of the world, they were hoarding the ppp because they made almost all of it so when our doctors and understands were trying to buy it, they couldn't find it anywhere why don't we make that here in america? that creates really good jobs and give us more national security they're bringing that into pharmaceutical products and really important things like ppp. that is something we can make in america and create jobs. >> perhaps long term it won't solve the short term issue in terms of unemployment.

and the other factor to throw into this, congressman is, of course, that the median starting unemployment benefit offered by states without even this topoff of $600 a week expires after 5 1/2 months if someone lost their job in march time because of the pandemic, that will also be expiring around september time are you worried about the impact it may have on the economy as we approach the fall and weather worsens and perhaps the ability of restaurants and hospitality businesses to operate as they are outdoors, also becomes a lot harder >> you know, there are a number of deadlines like you mentioned. of course, the whole funding of government that expires at the end of september we're in negotiations right now. in fact, with very votes on the house floor today on some of the bills. address that and make sure we get those resolved before the

ted line hits. so that's what congress is doing this week. as well as next week so we're going to negotiation but we're also bringing legislation to the floor hopefully we can work through the difference that's we have. >> are republicansmet. >> are republicans on the same page when it comes to this stimulus last time around we were in an emergency situation and stocks were falling and we were in lockdown, so it seems clearer. now you have members of your party warning this is fiscally irresponsible, adding another trillion dollars to the debt, the whole payroll tax thing president trump wanted, members of your party didn't feels like there's a lot of debate and disputes within your party. >> well, there's debate and disputes on both sides like joe biden just put out another $800 billion proposal. last week he proposed $2

trillion both sides have disagreements. you did see us come together on the cares act to create the paycheck protection program. that saved millions of jobs. i've talked to so many small business owners who wouldn't still be holding their employees and their businesses together. so it worked really well, but we did spend over $2 trillion there is a concern that there's a level you have to be careful how far you go when we look at it right now, there's about $500 billion of that money appropriated that still hasn't been spent. the first thing you ought to do is look at that money and make it work better in other places where it's most needed clearly if you overallocate it in some areas, you look at hospitals, you look at schools that are going to need money for sanitizer and masks. let's make sure the money can be used for those kind of things. that money is still out there. congress doesn't need to pass another bill to appropriate that

we're here to try to work through these differences. >> congressman, there's been a lot appropriated already, likely to be more at some point it's got to be paid for in the future one way or another if there was one tax that had to go up, which one would it be >> well, if you look at the tax on the ability to create jobs in america, we saw that it was having high taxes was killing our economy. we lowered taxes and that created more jobs and brought in more revenue to the federal treasury before covid-19 the treasury was taking in more money after the tax cuts than before the tax cuts what we really need to be focused on is watching where the spending is getting out of control and where you see problems down the road programs like medicare are right now going bankrupt they're on a path to bankruptcy. we need to save medicare from bankruptcy that's a bigger discussion we've had smaller discussions on

it in the past i wish both parties were there i know i voted for bills in the past to save it from bankruptcy and sure it still works for current seniors. today the discussion is on how to get our economy back open safely, how to safely reopen schools. the american academy of pediatrics just put out a really good report that not only shows how to safely reopen schools but also talks about the damage to kids, to our 50-plus million children in school if they're not going to school. it's one thing to be learning at home it's not the same thing as learning in the classroom and it does damage to our children. everybody has to be pulling together. >> it shouldn't be politicized. >> it shouldn't be, right. >> you opened a whole can of worm there is bs there but we'rf

time. >> longer discussion for another day. i look forward to that. >> exactly thank you. big selloff in big tech today. putting those losses in perspective. ♪ 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. we've just been finding a way to keep on pushing. ♪

up next, plenty of green on the board, an after hours trade with one big exception we're going gtoet you caught up on all the earnings movers next. r half-off on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend. oh, sorry nancy, i forgot you were there. get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones.

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oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement. as we look to the after hours movers on earnings, a lot of consumer names are up nicely after coming in better than expectations boston beer, sketchers, mattel all doing well sketchers up >> i do wonder how the rest of the semiconductor group will fare it's not necessarily being taken

as a broader demand issue for the whole group. that might be a little bit of a silver lining. >> of course, today we did see broader tech selloff quite significantly. the nasdaq comp down 2.3%, apple and microsoft both down more than 4%. "fast money" starts now. "fast money" starts right now. i'm melissa lee. tim seymour, karen finerman, tim kelly and bonawyn eisen. plus, if you're looking for safety is gold still your best option and there were a couple bright spots in this thursday selloff we start off with a major reversal in the market the dow dropping more than a percent with apple contributing more than 100 points to this